REDWOOD CITY, Calif., Jun 04, 2008 (BUSINESS WIRE) — Fifth graph, fifth sentence of release should read: The restricted stock units vest over a four-year period, subject to Mr. Weber’s continued employment. (sted The restricted stock units vest over a two-year period, subject to Mr. Weber’s continued employment.).

The corrected release reads:

SHUTTERFLY HIRES GEOFFREY WEBER AS VP OF INTERNET OPERATIONS

Accomplished Information Technology Executive to Lead Internet Operations Team

Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and personal publishing service, today announced the appointment of Geoffrey Weber as vice president of Internet Operations. Mr. Weber will be responsible for leading all strategic and operational aspects of Shutterfly’s online presence, including systems, networks, data centers and Shutterfly’s extensive Image Archive, which holds billions of customer images. Mr. Weber will report to Stanford Au, Shutterfly’s Senior Vice President of Technology.

“Geoffrey is a seasoned technology executive who will drive further innovation, customer satisfaction and operating leverage for our rapidly growing business,” said Shutterfly’s CEO, Jeffrey Housenbold. “We are pleased to have Geoffrey join our Senior Management Team. His deep experience scaling ecommerce platforms and leading information technology teams at companies such as eBay, Quigo, and AOL and his ability to manage and attract best in class talent, make him the ideal choice to lead our Internet Operations group.”

Geoffrey brings to Shutterfly more than 10 years of experience in leading technology teams and over 25 years experience in information technology. Most recently, Geoffrey was the Chief Technology Officer with Quigo Technologies and managed the on-boarding process of AOL-owned and -operated properties, doubling the number of page views and ad impressions over a three-month period. Prior to Quigo, Geoffrey served as the Director of Engineering for eBay / PayPal, managing a staff of 80 engineers and leading the development of internal processes for improved quality across all technology divisions. Prior to eBay/PayPal, Mr. Weber managed teams and supported database technologies for several leading finance and technology companies including Providian Financial, Templeton Funds and Sun Microsystems.

Geoffrey earned a Bachelor of Arts in Mathematics from University of California, Berkeley.

On June 2, 2008, Mr. Weber received an employment inducement stock option grant award and a restricted stock unit grant. He may purchase up to 38,500 shares of the Company’s common stock at an exercise price of $14.11 per share pursuant to an inducement stock option that is not under a shareholder approved plan but is pursuant to a Nasdaq approved exception. The shares subject to the stock option vest over a four-year period, subject to Mr. Weber’s continued employment. Mr. Weber was also granted 6,600 restricted stock units pursuant to an inducement restricted stock unit grant that is not under a shareholder approved plan but is pursuant to a Nasdaq approved exception. The restricted stock units vest over a four-year period, subject to Mr. Weber’s continued employment.

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. 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.
Media Relations:
Gretchen Sloan, 650-610-5276
gsloan@Shutterfly.com
or
Investor Relations:
Marilyn Lattin, 650-610-5853
mlattin@shutterfly.com

Copyright Business Wire 2008

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