Press Releases Jan 04, 2008

Shutterfly Enhances Online Sharing, Collaboration & Community with Acquisition of Nexo Systems

REDWOOD CITY, Calif., Jan 04, 2008 (BUSINESS WIRE) — Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and personal publishing service, announced today that it is acquiring Nexo Systems, Inc., a privately held on-line sharing and group services company that has developed a platform for easily creating customized, content-rich personal and group websites. Palo Alto, California based Nexo launched its beta service at the Demo07 conference. Nexo’s founders Craig Jorasch and Tom McGannon will join the Shutterfly technology team, led by Stanford Au, Shutterfly’s senior vice president of technology. Today at 1:45 P.M. PT, Shutterfly will host a live conference call and webcast to discuss this announcement.

The webcast will be available at in the “Investor Relations” section. To access the conference call, please dial 719-325-4853. A replay of the conference call will be available through Friday, January 11, 2008. To hear the replay, please dial 719-457-0820. Replay passcode: 5848021.

“Photos play an important role in social expression and personal publishing, and Shutterfly is proud to be an early pioneer of online sharing. The acquisition of Nexo accelerates our next-generation sharing platform and enhances Shutterfly’s market leading position and consumer value proposition,” said Jeffrey Housenbold, president and chief executive officer of Shutterfly. “Nexo’s talented development team has deep experience with Web 2.0 technologies and services. Nexo’s services will complement Shutterfly’s products and services, giving our customers more ways to connect with friends and family and to share pictures taken with multiple cameras at special events – from weddings and family reunions to the kids’ weekly soccer game.”

Craig Jorasch and Tom McGannon both joined Shutterfly as vice presidents and received restricted stock grant awards, awarded on January 4, 2008, in an aggregate amount of 192,770 shares. The restricted shares were not issued under a shareholder approved plan but are pursuant to a Nasdaq approved exception.

The transaction was consummated for aggregate cash and stock consideration totaling less than $15 million.

About Shutterfly

Founded in 1999, Shutterfly, Inc. is an Internet-based social expression and personal publishing service. Shutterfly provides high quality products and world class services that make it easy, convenient and fun for consumers to preserve their digital photos in a creative and thoughtful manner. Shutterfly’s flagship product is its award-winning Photo Book line, which helps consumers celebrate memories and tell their stories in professionally bound coffee table books. The Company has more than 1.5 billion images stored in its digital archive. More information about Shutterfly (NASDAQ:SFLY) is available at Shutterfly and are trademarks of Shutterfly, Inc.

SOURCE: Shutterfly, Inc.

Shutterfly, Inc.
Marilyn Lattin, 650-610-5853 (Investor Relations)
Bridgette Thomas, 650-610-3519 (Media Relations)

Copyright Business Wire 2008

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