New Custom Framing Service and Shutterfly Studio Editing Tools Enable Customers to Create Their Own Works of Art.

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, a new Custom Framing Service and creative photo enhancement features in Shutterfly Studio designed to help consumers create unique wall art using their favorite pictures.

"Our customers treasure their photos and want to display them with a gallery-worthy look at an affordable price. In response, we are now offering custom framing tools that offer the convenience and high quality that consumers expect from Shutterfly," said president and chief executive officer of Shutterfly, Jeffrey Housenbold. "With direct access to a large variety of mat and frame choices, our customers can surround themselves with creative expressions of their special memories."

Delivering the same quality found at specialty frame stores, Shutterfly's new Custom Framing Service, powered by Internet framing leader Art.com, helps consumers beautifully frame 8x10, 12x15, 16x20, and 24x30 prints to suit any home's decor. Do-it-yourself decorators simply choose their favorite picture and preview it as a print, framed by a broad selection of metal or wood frames -- vintage or modern. Customers can add one, two or three acid-free or regular mattes in dozens of colors, and choose from acrylic, non-glare or UV protected glass. For more information on Shutterfly's new Custom Framing Service, please visit www.shutterfly.com/framingservice.

Since 2005, Shutterfly customers have been enjoying larger-than-life memories with high quality Canvas Prints, which provide another great choice for consumers seeking personalized home decorating solutions. Available in three sizes -- 16x20, 20x30 and 24x36 -- photos are reproduced on textured artists' canvas, which is hand-stretched and mounted onto wooden support frames. Images featured on Shutterfly Canvas prints wrap around the edges of the supportive frames, enabling them to hang on their own and giving photos a gallery finish. For more information on Canvas Prints, please visit the Shutterfly Store.

Announced separately today, the latest release of Shutterfly Studio photo management software gives consumers even more simple-to-use editing and enhancement tools including: Graphic Poster, Collage, and Oil Paint effects.

For example, using Shutterfly Studio, parents can add impact to a child's bedroom or playroom by photographing their son or daughter's favorite teddy bear or toy, and applying the Graphic Poster effect, which transforms a picture into a two-tone image -- perfect for creating a pop art poster-size print. Or, with Studio's Collage tool, new parents can create an "expressions" photo montage with favorite pictures of their baby sleeping, smiling, and giggling. And for the living room, consumers can use Studio's Oil Paint effect on a photo of a family heirloom, such as a special piece of jewelry or antique furniture, and complete the look by ordering it with multiple coordinated mattes and a dramatic, gold frame. For more information on Shutterfly Studio, please visit 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.