Steve Recht to Transition Shutterfly CFO Role to Mark Rubash

Dec 03, 2007

REDWOOD CITY, Calif., Dec 03, 2007 (BUSINESS WIRE) — Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and personal publishing service, announced today that chief financial officer Stephen E. Recht is retiring from the Company. Mr. Recht is succeeded by Mark Rubash, an ecommerce finance executive with deep experience with Internet industry leaders including eBay and Yahoo!. Today at 1:30 P.M. PT, Shutterfly will host a live conference call and webcast to discuss this announcement.

The webcast will be available at www.shutterfly.com in the “Investor Relations” section. To access the conference call, please dial 1-913-981-5593. A replay of the conference call will be available through Monday, December 10, 2007. To hear the replay, please dial 1-719-457-0820, replay passcode: 7474120.

“On behalf of everyone at Shutterfly, I would like to thank Steve for his leadership over the years,” said Jeffrey Housenbold, president and chief executive officer of Shutterfly. “We are grateful for his tremendous contributions to the growth and success of the Company, and for the strength of Shutterfly’s finance team.”

Mr. Recht joined Shutterfly in 2004, and during his tenure the Company experienced double-digit annual revenue and profit growth. Recht built a world-class finance organization, led Shutterfly’s SOX compliance certification efforts and successfully guided the Company through its initial public offering, two corporate acquisitions and the opening of Shutterfly’s second state-of-the-art manufacturing facility in Charlotte, NC. To ensure a smooth transition, Mr. Recht will work closely with Mr. Rubash through mid-February 2008.

Mark Rubash brings more than 25 years of experience to his role as Shutterfly’s chief financial officer, including six years in executive positions with high growth companies in the Internet sector and nearly 20 years in the public accounting profession. At Shutterfly, Mr. Rubash will be responsible for managing all financial activities, including long range strategic planning, financial planning and analysis, investor relations, mergers and acquisitions, accounting, and legal.

“Mark is a fantastic addition to our experienced management team at Shutterfly. He is a well-known and well-respected finance executive with outstanding management and leadership skills, and he has deep knowledge of accounting controls and compliance,” added Housenbold. “Moreover, Mark has an exceptional ability to build and lead high profile organizations through rapid growth – leadership skills that will serve Shutterfly well as we continue to grow the business.”

Mr. Rubash joins Shutterfly from Rearden Commerce, where he served as chief financial officer. Previously, he was a senior vice president of finance at Yahoo!. Prior to joining Yahoo!, Mr. Rubash held various senior leadership positions at eBay including chief accounting officer and vice president for finance and investor relations. During his tenure at eBay, Mr. Rubash led the finance organization through periods of extraordinary growth marked by increasing revenues from roughly $450 million to over $5 billion. Mr. Rubash held corporate and operational finance responsibilities for both eBay and PayPal, one of the several acquisitions for which he led the due diligence and finance integration programs.

Earlier in his career, Mr. Rubash was an audit partner at PricewaterhouseCoopers LLP where he served as the global leader for the firm’s Internet Industry Practice. While there, he also served as practice leader of the Silicon Valley Software Industry Practice. His clients included eBay, The Learning Company, Sony Computer Entertainment America, and Chevron Corporation.

Mr. Rubash began his career in the Audit & Business Advisory Services practice at Ernst & Whinney (now Ernst & Young). He earned his Bachelor of Science degree in Accounting from California State University Sacramento and later became a Certified Public Accountant in the state of California. Mr. Rubash presently serves as a member of the board of Intuitive Surgical, Inc (NASDAQ:ISRG). He is also chairman of the audit committee and a member of the board of Line 6 Corporation.

Mr. Rubash received an employment inducement stock option grant award on November 30, 2007. He may purchase up to 270,000 shares of the Company’s common stock at an exercise price of $28.49 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.

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. The Company has more than 1.5 billion images stored in its digital archive. 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.
Marilyn Lattin, 650-610-5853 (Investor Relations)
mlattin@shutterfly.com
Bridgette Thomas, 650-610-3519 (Media Relations)
bthomas@Shutterfly.com

Copyright Business Wire 2007

News Provided by COMTEX