Press Releases Nov 19, 2008

Shutterfly Helps Consumers Stay Connected and Shop Smarter This Holiday Season

REDWOOD CITY, Calif., Nov 19, 2008 (BUSINESS WIRE) —

Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and personal publishing service, today announced results from a recent nationwide survey on holiday travel and spending, as well as ideas for today’s time-strapped and dollar-conscious consumers to simplify the holidays.

The Shutterfly-sponsored survey, conducted by Omnitel beginning October 31, 2008, revealed that more people will stay at home vs. travel for the holidays this year. The survey showed a five percent decrease in the total number of people who will travel as compared to holiday 2007, and 69 percent of respondents do not plan to travel this holiday season.

“Because consumers are forgoing travel and spending less, it’s more important than ever to find alternate ways to stay connected this holiday season,” said Kathryn Olson, chief marketing officer of Shutterfly. “Whether through our free Share Sites, or by sending a meaningful holiday card, Shutterfly offers thoughtful, simple solutions to indulge friends and family with unforgettable memories that don’t cost a lot.”

Newlywed Katie Fitzpatrick plans to connect online this holiday season. “We started a Shutterfly Share Site when we got married in October, and it has become a great way to keep friends and family updated. We’ll spend the holidays away from most of our family this year, but plan to use our site to post photos and blog about our first holiday as a married couple.”

Shutterfly’s Share Sites allow friends and family to post photos and Photo Books, type comments and news, add to a community calendar and much more under one personalized domain name. This free service gives family members a central place to collaborate on photo gifts, exchange cookie recipes and post a gift list for Santa.

Greeting Cards remain the simplest way to send good wishes from afar, and although people may be cutting costs this holiday season, card-sending is on the rise. Shutterfly’s Omnitel survey revealed that 77 percent of respondents will send holiday cards this season as compared to 67 percent last year. Shutterfly is the place for stylish greetings that elicit smiles, and the Company offers hundreds of new card styles this year to suit every taste. Shutterfly’s new Address Labels and direct-mail feature for Greeting Cards are additional options for saving time during the hectic season.

Other inexpensive, yet lasting, gift ideas for keeping in touch are Shutterfly’s quick and easy single-image Photo Gifts. Grandparents will enjoy seeing their grandchildren’s pictures adorning the tree with Shutterfly’s Pewter Ornament ($29.99) or on their key chains with Shutterfly’s Pewter Key Ring ($19.99); both gifts are lasting keepsakes for years to come. Old friends will smile when they are reminded of good times together with Shutterfly’s new photo-personalized Notebooks, Notepads or Stickers ($5.99 – $12.99). Or remind loved ones of you and yours at the start of each month with a Shutterfly Calendar ($19.99) featuring your photos and customized dates.

Consumers can find holiday deals for a variety of Shutterfly products at www.shutterfly.com/sale.

For more information on Shutterfly’s Holiday Cards and Photo Gifts, visit www.shutterfly.com/holiday.

About Shutterfly

Founded in 1999, Shutterfly, Inc. is the leading 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. More information about Shutterfly (NASDAQ:SFLY) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.

SOURCE: Shutterfly, Inc.

Shutterfly, Inc.
Gretchen Sloan, 650-610-5276
gsloan@shutterfly.com

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