Press Releases Feb 18, 2003

SHUTTERFLY INTEGRATED IN ADOBE PHOTOSHOP ALBUM

REDWOOD CITY, CALIF. – (February 18, 2003) — Shutterfly, the leading online photo service, today announced the integration of its products and services in Adobe® Systems Incorporated’s new consumer digital photography software, Photoshop® Album, which shipped nationwide today. This announcement reflects an extension of the longstanding relationship between the two companies.

Shutterfly’s award-winning photofinishing and online sharing services have been seamlessly incorporated into Photoshop Album. Consumers will be able to use Photoshop Album’s sophisticated software to organize, edit, share and preserve their photos, then complete the process by ordering high quality prints directly from Shutterfly. Consumers will also have the ability to use Shutterfly’s share functionality and private address book as an easy way to share their favorite images online with friends and family.

“We are delighted to be working with Adobe as they extend the Photoshop product line to the consumer market,” said Andy Wood, Shutterfly CEO. “The benefits of the digital world are becoming more and more apparent to consumers. And from our experience, we know that getting high quality prints of their favorite images and sharing them with friends and family is at the top of the consumer’s digital wish list. Shutterfly’s integration in Photoshop Album will make it easier for consumers to access these benefits.”

Users of Adobe Photoshop Elements have already been able to order prints and photo products from Shutterfly. The linking of Shutterfly Photoshop Album software is a new addition to this offering.

In addition to Adobe, Shutterfly also has partnerships with Dell, Best Buy, Yahoo!, and Microsoft Windows XP.

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About Shutterfly
Shutterfly, the leading online photo service, leverages its proprietary technology and understanding of its customers to develop personalized, quality photo products and services that make it simple and fun for people to stay connected to those who matter most. Film and digital photographers alike can enjoy the benefits of Shutterfly’s photo services, including high-quality prints, image enhancements, personalization, free online storage and picture sharing. Customers can custom back-print and transform their pictures with special effects and borders as well as create photo cards, invitations, calendars, note cards, and Snapbooks™, all of which can be mailed anywhere in the world. Shutterfly is consistently recognized for its photo quality and innovative features, and was most recently rated best overall online photo service in a field of twelve by MacWorld in its June 2002 issue. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

Media Contacts:
Whitney Brown
Shutterfly
650-610-3519
wbrown@shutterfly.com

Donel Young
732-295-2406
donelyoung@sprintmail.com