Pioneer of Photo Sharing Celebrates 2MM Share Site Milestone and Offers Best Practices for Sharing Photos Online

REDWOOD CITY, Calif., Jun 29, 2010 (BUSINESS WIRE) -- Shutterfly, Inc. (NASDAQ:SFLY), the company that made the term "photo sharing" a household name when it launched with email share in 1999, today reveals user data that points to a significant trend in photo sharing behavior: consumers are becoming more private with their images on the internet. Based on user metrics from its personalized website service, Share sites, today Shutterfly announces that more than two million Share sites have been created since the service launched in August 2008. And, in a nod to current privacy concerns, Shutterfly reveals that since the launch of Share sites in 2008, private sites have grown 82% faster than public sites, with close to half of all owners leveraging the easy to use privacy controls like secure photo and video sharing, password protection, and tagging notifications.

"We are seeing an increased concern from consumers about privacy and security when it comes to sharing photos with friends and family," said President and CEO, Jeffrey Housenbold. "Shutterfly Share sites are a free, easy and secure way to connect without privacy concerns. Shutterfly offers an experience complementary to social networking, a safe place to not only share photos and video but to confidently store them for a lifetime."

Free personal websites that are easy to customize and act as social and memory sharing hubs for families, teams, and other groups, Shutterfly Share sites offer transparent privacy controls that are simple to navigate and manage. Upon creation, site owners decide who has access to view, download, and work with their photos and videos and who can contribute content. Tagging also gives Share site users additional control. On Classroom and Youth Sports Share sites, as photos are tagged, owners and members are notified, making it easy for parents to keep closer tabs on photos of their kids.

"I have a members-only Shutterfly Share site where we upload photos of our kids, keep a calendar with family birthdays and anniversaries, blog about what's going on and share videos of important milestones," said Shutterfly customer and mother of two, Bethany Snyder. "I love social networking sites for status updates and for posting travel and friend photos that appeal to a broader audience, but it's not the right place for me to post pictures of our twins."

Beyond letting users easily communicate and connect with site members through collaborative tools, photo sharing, video sharing, calendars, journals, rosters and schedules, Shutterfly Share sites also store photos safely in their original resolution, making it easy to create photo books, prints and other photo products in just a few clicks. Site themes range from personal (Baby, Family, Travel or Photo Journal) to groups (Sports teams, Classrooms, Clubs or Weddings).

As a pioneer in photo sharing, Shutterfly offers the following tips for responsible sharing, no matter where photos are stored:

• Step one, manage your privacy settings. Before creating a photo sharing site or profile, consider who will be featured in the bulk of your photos and set your privacy settings accordingly. Shutterfly Share sites offer easy to use settings that give users full control of who is able to view photos. Additionally, private sites do not show up in search or Google alerts.

• Own it. Carefully read the fine print about photo rights and information sharing. At Shutterfly, customers own the rights to their original resolution images and content and their information is never disclosed without their knowledge.

• Tag with care. Remember that social networks are public spaces with searchable content, so be mindful of where you post and tag photos. Share sites provide a safe and secure place where families and friends can post and tag photos as much as they want, without sacrificing privacy.

For more information and sample sites, visit Shutterfly Share. Testimonials, forums and FAQs, are available at Share Central.

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. More information about Shutterfly (NASDAQ:SFLY) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.