REDWOOD CITY, CALIFORNIA (July 16, 2001) — Shutterfly, the leading online photo service, announced today a significant enhancement to the company’s executive management team with the appointment of Virender Ahluwalia to Chief Financial Officer. As CFO, Ahluwalia’s responsibilities include managing all financials, including overall operations, procedures, budgeting, and fiscal planning and analysis for the industry’s top online photo service. Ahluwalia will report directly to Andy Wood, CEO.

Ahluwalia brings more than 20 years of experience in financial management, operations, and strategy development to Shutterfly.

“Virender’s knowledge of finance and operations brings a fresh perspective to Shutterfly and I am confident in his ability to deliver results necessary to drive our profitability,” said Andy Wood, Shutterfly CEO. “Shutterfly is committed to strengthening its leadership role in providing the best online photo service site in the industry. Our ability to attract someone of such stature speaks volumes for the outlook of this company,” Wood added.

Ahluwalia has held several senior level finance and general management positions for Fortune 100, start-up and high growth business environments. His contributions have been instrumental in the successful restructuring and re-engineering of various businesses. Prior to joining Shutterfly, Ahluwalia served as interim CFO for several companies while working for Ravix Financial, Inc., a company providing interim financial services for start-up and middle market technology companies. Before Ravix, Ahluwalia led the finance organization at Vertical Networks, the leading provider of Integrated Communications Platforms (ICPs), where he was instrumental in developing and successfully implementing outsource manufacturing, IT and general infrastructure requirements for the company. Ahluwalia was also General Manager at iLogistix, where he managed a 60 million dollar business and was instrumental in leading and managing a 300 percent increase in the growth of his business unit.

“The consolidation of the online photo industry proves that in order to succeed in this industry, a company needs to have a strong business model with staying power,” said Ahluwalia. “Shutterfly has established a leadership position in the industry by being the only company to successfully monetize its model. Online photography is seeing continued growth, with analysts predicting a 57 percent increase every year for the next five years. Considering this forecast and the fact that as an industry leader Shutterfly is very well positioned to take advantage of this growth and deliver high value to all its stakeholders and customers, I’m thrilled to be a part of the company,” Virender added.

About Shutterfly
Shutterfly is the leading online photo service that makes it simple, convenient and fun for people to take and share pictures. Using the Internet and a digital or film camera, Shutterfly enables users to easily enhance, personalize, store and share pictures online or through high-quality prints. Shutterfly users can digitally enhance photo images, and can further transform their pictures with special effects and borders. Shutterfly offers its users features to create photo cards, invitations and calendars, all of which can be mailed to friends and family worldwide. Shutterfly is consistently recognized for its photo quality and features, and most recently was named “Best Quality and Best Overall” online photo service by Family PC magazine. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

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Shutterfly, and Shutterfly.com are trademarks of Shutterfly, Inc.