Press Releases Aug 28, 2001

SHUTTERFLY UNVEILS PROGRAM TO SIMPLIFY AND BRING DIGITAL PHOTOGRAPHY TO THE MASS MARKET

REDWOOD CITY, CALIFORNIA (August 28, 2001) — As digital photography moves beyond early adopters into the mass market, Shutterfly, the leading online photo service, announced today a comprehensive usability program to make online photo-finishing easier and more convenient for consumers. The program is being implemented in two phases; each phase focuses on refining the user experience to better address the mass market and addresses ease of use issues, new site features, and advanced services to help simplify the online process.

Executing the first phase of its program, Shutterfly has made significant usability enhancements to the site including improved methods of sharing pictures online, sample pictures for new users to experiment with, recommendations on the best way to add pictures to the site, and an update to its SmartUpload software. The upgraded software gives users the ability to view, organize, edit, upload and prepare a print order all before visiting the Shutterfly site. Once the software is downloaded, consumers can take advantage of all these features directly from their desktop, enabling them to work with their pictures offline and transact online.

“At Shutterfly, we are leading the charge to make online photo services significantly easier for the consumer, especially as the market evolves,” said Andy Wood, Shutterfly CEO. “We are continually improving our offerings to break down the obvious barriers to entry while maintaining superior quality, innovation and value for our customers,” Wood said. Our long-term goal is to make Shutterfly as convenient as the local photo store and this program brings us closer to that by making it simple for consumers to experience the benefits of sharing and ordering prints online.”

Shutterfly is currently implementing the second phase of its usability program through extended services and consumer education. Focusing on making the site easier and more intuitive for consumers at any technical level, Shutterfly is developing additional user enhancements. These improvements will include further simplification of sharing images online and modifications to the current print ordering process. Recognizing education as a continuous priority, the site will offer tips and tricks on how to get the most out of film and digital photography.

Shutterfly’s software updates and its recent feature enhancements are a direct result of focus groups and market research. Testing revealed users need simpler, faster uploading and offline access to features that are easy to understand and use. Market research shows that analysts predict the main barrier in the digital photography market is consumers’ relatively slow Internet access, hurting their incentive to go online with their pictures. Shutterfly is addressing this current broadband problem by enabling mainstream consumers to easily access some services without having to be online.

About Shutterfly
Shutterfly is the leading online photo service that makes it simple, convenient and fun for people to take and share pictures. Shutterfly enables film and digital photographers to easily enhance, personalize, store and share pictures online or through high-quality prints. Shutterfly users can digitally enhance photo images, and can further transform their pictures with special effects and borders. Shutterfly offers its users features to create photo cards, invitations, calendars and Snapbooks™, all of which can be mailed to friends and family worldwide. Shutterfly is consistently recognized for its photo quality and features, and most recently was named “Best Online Photo Service” by PC Magazine, earning its coveted “Editors’ Choice” award for the second straight year. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

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Shutterfly, Shutterfly.com and Snapbook are trademarks of Shutterfly, Inc.