New Collage Tool Inspires Consumers' Creativity.

LAS VEGAS, Mar 08, 2007 (BUSINESS WIRE) -- Shutterfly, Inc. (NASDAQ:SFLY), an Internet-based social expression and personal publishing service, announced today at the PMA 07 International Convention and Trade Show, an expanded version of its Shutterfly Studio desktop photo management software which has everything consumers need to be organized, creative, and thoughtful with their photo memories. With faster performance, Shutterfly Studio is even more intuitive and fun to use as a result of several enhancements including personalized screen saver options, 20 photo editing tools with a new close up preview, templates for composing elegant picture collages, and new desktop "Picture Frames," which display your favorite images in mini-slideshows for you to enjoy while working on your computer.

"Because our customers are taking and storing more pictures each year, they require a more sophisticated solution for managing and editing their vast collection of memories," said president and chief executive officer of Shutterfly, Jeffrey Housenbold. "We are introducing these enhanced features to Shutterfly Studio to provide consumers with an easy way to organize their images while adding a host of editing features that will allow them to further express their creativity."

Creating Collages

If a picture speaks a thousand words, imagine what a 400-picture collage would have to say. Consumers can create an impressive collage in minutes featuring a handful or a collection of pictures. With the new collage tool, users have unique creative possibilities to tell their stories, whether it's creating a collage print for a special anniversary, a poster for a child's room, or a birthday party banner. Consumers can select from more than 140 inspiring templates in various sizes or they can use the "Composer" feature to design their own collage layouts. In addition, users can add captions and titles using a choice of 18 fonts and they can personalize their collages with colors and picture borders. Once uploaded to Shutterfly, collage images can be used to create one-of-a-kind prints and photo gifts.

Other new Shutterfly Studio photo editing tools include:

-- Whiten Teeth: Makes teeth look their whitest

-- Thinning: Flatters the subjects in pictures, making them appear thinner

-- Oil Paint: Makes photos look like oil paintings

-- Graphic Poster: Changes pictures to look like a two-tone poster

-- Auto Color: Automatically fixes color in pictures (remove color cast)

-- Highlights: Darkens overexposed portions of photos

-- Shadows: Brings out details and lightens underexposed portions of pictures

-- Contrast: Adjusts contrast to heighten details

-- Saturation: Removes or boosts color in a picture

-- Color Temperature: Warms up or cools down a photo by changing the color balance

-- Straighten: Straightens pictures to compensate for a tilted camera

Enjoying Memories in More Ways than One

Consumers can turn their desktops into an ever changing slideshow with Studio's new customized screen saver feature. Featuring pan and zoom transitions, Studio's slideshow feature lets users view images from a favorite individual folder or shuffle through a rotating selection of their entire picture collection. With Studio's new Picture Frame feature, consumers also have the option to display one or more framed mini-slideshows on the desktop while they work. Users can choose from one of four different frame styles which can be sized and positioned to their specifications.

Shutterfly Studio was launched in 2006 to help consumers quickly get images off their cameras and enhance images to make pictures look their best, while providing access to Shutterfly's award-winning products and services. Shutterfly customers can share photos and order prints directly from their desktop using Shutterfly Studio, without having to upload images to the Shutterfly website first. The free software download is now available to Windows users at www.shutterfly.com/studio.

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 and to tell their stories in a creative and thoughtful manner. Shutterfly has more than one 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.