Press Releases Nov 20, 2006

Shutterfly Chooses Xerox iGen3 Digital Presses to Print Photo Products

ROCHESTER, N.Y., Nov 20, 2006 (BUSINESS WIRE) — Shutterfly Inc. (NASDAQ: SFLY), an Internet-based social expression and personal publishing service, has selected Xerox Corporation (NYSE: XRX) and its flagship Xerox iGen3(R) 110 Digital Production Presses to help support its growing printing and production operations. The company chose Xerox for its collaborative approach to achieving quality output, as well as reliability, color consistency and speed.

“As a premium brand, we’re only willing to work with companies that can work together with us to deliver the high quality products our customers expect from Shutterfly,” said Doug Galen, senior vice president, Business and Corporate Development, Shutterfly. “We’ve partnered with Xerox because of its similar focus on quality and relentless pursuit on delighting its customers. Xerox and Shutterfly are building what we expect to be a meaningful partnership together for years to come.”

Shutterfly lets consumers use personal photos to easily create a range of products from personalized holiday cards to customized photo books and calendars. The company provides the highest quality products and services at the lowest possible costs, to provide exceptional fulfillment and customer service, even at peak demand periods, and to continue to innovate rapidly with new products and services.

“Photo applications are a growing market for digital technology like Xerox’s iGen3 digital presses,” said Quincy Allen, president of Xerox’s Production Systems Group. “The iGen3 presses are now part of the largest all-digital lab in the world, giving Shutterfly the speed and capability to produce high-volume, full-color images.”

Xerox recently introduced image-improving software for the Xerox iGen3 press for the type of creative photo applications offered by Shutterfly. The software ensures that the color output of the iGen3 press is the same every time a document is printed from day to day, week to week; more effectively optimizes the color balance, tone scale and flesh tones of photos and other images; and makes it easier for companies like Shutterfly to know when to adjust the digital press for optimum color performance.

About Shutterfly

Founded in 1999, Shutterfly Inc. is an Internet-based social expression and personal publishing service providing a range of products and services that make it easy, convenient and fun for consumers to upload, edit, enhance, organize, find, share, create, print and preserve their digital photos in a creative and thoughtful manner. Since inception, the company has fulfilled more than 12 million orders and has stored more than 1 billion consumer photos in its image archives. Shutterfly and Shutterfly.com are trademarks of Shutterfly Inc.

Customer Contact:

For more information about the Xerox iGen3 110 Digital Production Press, call 800-ASK-XEROX or visit www.xerox.com/tr/iGen3.

For more information about Shutterfly Inc., visit www.shutterfly.com.

NOTE TO EDITORS: For more information on Xerox, visit www.xerox.com/news. XEROX(R) and iGen3(R) are trademarks of XEROX CORPORATION.

SOURCE: Xerox Corporation

Media Contacts:
Xerox Corporation
Neil Fagenbaum, 585-422-4456
Neil.Fagenbaum@xerox.com
or
Shutterfly Inc.,
Bridgette Thomas, 650-610-3519
bthomas@shutterfly.com

Copyright Business Wire 2006

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