Press Releases Dec 18, 2006

Shutterfly Expands Operations with East Coast Manufacturing Facility

REDWOOD CITY, Calif., Dec 18, 2006 (BUSINESS WIRE) — Shutterfly, Inc. (NASDAQ:SFLY), an Internet-based social expression and personal publishing service, today announced that it will open its second state-of-the-art manufacturing facility. The new facility is scheduled to open in Charlotte, NC, in the third-quarter of 2007.

Shutterfly’s new Charlotte facility along with the Company’s existing Hayward, CA facility will help Shutterfly meet the increasing consumer demand for its innovative products and services. In addition, the new facility will increase Shutterfly’s speed and efficiency in producing and shipping the Company’s award-winning products such as photo books, greeting cards and photo prints to its East Coast customers.

“We are the leader in the social expression and personal publishing industry because of our strong commitment to quality and the overall customer experience. By owning and running our manufacturing facilities, we are able to deliver on our quality promise,” said Jeffrey Housenbold, President & CEO of Shutterfly. “Charlotte was chosen because of its excellent labor pool, strong work ethic, cost of living and proximity to our customers.”

Shutterfly expects to create more than 200 jobs in the Charlotte community over the next three years and is actively recruiting for several key positions in the areas of manufacturing, engineering and customer service. For more information on job opportunities please visit: www.shutterfly.com/jobs.

“Shutterfly is excited to partner with the State of North Carolina. We are particularly proud to add jobs inside the US, and the Charlotte market, specifically,” said Doug Galen, Senior Vice President, Business & Corporate Development of Shutterfly. “We look forward to making a meaningful contribution to the Charlotte community.”

About Shutterfly

Founded in 1999, Shutterfly, Inc. (NASDAQ:SFLY) (www.shutterfly.com) is an Internet-based social expression and personal publishing service. Shutterfly provides 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. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.

Notice Regarding Forward-Looking Statements

This media release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. The Company’s actual results may differ materially from those anticipated in these forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the “Risk Factors” section of the Company’s prospectus for its initial public offering and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, which are available on the Securities and Exchange Commission’s Web site at www.sec.gov. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information.

SOURCE: Shutterfly, Inc.

Shutterfly, Inc.
Media:
Bridgette Thomas, 650-610-3519
bthomas@shutterfly.com
or
Investor Relations:
Marilyn Lattin, 650-610-5853
mlattin@shutterfly.com

Copyright Business Wire 2006

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