Company's Photo Book and Calendar Offerings Support Growing Consumer Interest in Rescuing and Celebrating Precious Photo Memories

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Shutterfly, Inc. (NASDAQ:SFLY), a leading Internet-based social expression and personal publishing service, today reveals a growing trend among consumers to create lasting keepsakes by rescuing their images from computers, cell phones and social networking sites. According to a recent survey conducted by InfoTrends, more than 40 percent of respondents who share photos on social networking sites were interested in creating lasting keepsakes with those photos, an increase from 2009. Mirroring this sentiment, Shutterfly witnessed a 47 percent increase in personalized products and services net revenues in the third quarter of 2010 as compared to Q3 2009, as stated in the Company's third quarter 2010 earnings report. Shutterfly supports this growing trend by offering consumers the ability to access Facebook photos to create Shutterfly Simple Path photo books.

"As consumers have more ways to share their photos online and gain more access to photos taken by friends and family, we've seen a subsequent increase in their desire to do more with those photos," says Alan Bullock, associate director of the Internet imaging trends service at InfoTrends. "Photo products and merchandise are going to play a key part in the continued growth of photo sharing."

"The end of the year is a great time to get those photos organized, which means more than just tagging and storing, but making one-of-a-kind gifts," says Lara Hoyem, senior director of photo books. "Tell your story with a year-in-review photo book, kick off 2011 with a custom, collage calendar or even spice up your home décor with a large canvas print or wall mount.Shutterfly offers endless ideas for how to save images from being forgotten."

To help consumers rescue the photos that matter most, Shutterfly provides the following tips:

• Avoid Seeing Double: One of the best parts of digital photography is the ability to take endless shots to capture the perfect picture. But why keep two — or five! — versions of the same basic image? Go through series of similar shots, pick the best and delete the rest. Don't forget to backup online at Shutterfly; the company offers free, unlimited storage. What's more, Shutterfly's new upload tool makes photo organization even faster.

• Book It: One of the most impressive ways to quickly and easily free photo memories from virtual file cabinets — including those old social networking photo albums — is to collect your memories in a bound Simple Path photo book. Tell the story of your year by showcasing your photos in exclusive styles themes like Bon Voyage, Winter Wonderland, Modern Portfolio or Confetti.

• Pencil in Some Memories: New this year, Shutterfly offers desk calendars, perfect for work or home. The company also debuts 20 new stylish designs for its wall calendar collection, as well as options like personalized dates and photos in the calendar grid. Or, go big with a Calendar Poster featuring a collage of your favorite shots from the year.

• Send the Gift of Smiles: The holidays are the perfect time of year to turn your best shots into personalized photo gifts.Shutterfly offers everything from wall decals to ornaments to mugs and mouse pads. Additionally, its diverse assortment of holiday cards will get prime placement on mantels and refrigerators this year.

For more information, visit Shutterfly's photo books or calendars pages or www.shutterfly.com.

About Shutterfly
Founded in 1999, Shutterfly, Inc. is an Internet-based social expression and personal publishing service. Shutterflyprovides 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. Shutterfly was recently named one of the top 25 Best Midsized Companies to Work For by the Great Place to Work Institute. More information about Shutterfly (NASDAQ:SFLY) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.