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Press release from Business Wire

Shutterfly Expands Photo Book Offering

<p class='bwalignc'> <i>Introduces “Storytelling Collection”, Elementary School Yearbooks and Additional Enhancements to Make Photo Book Experience Easier</i> </p>

Tuesday, March 06, 2012

Shutterfly Expands Photo Book Offering09:00 EST Tuesday, March 06, 2012 REDWOOD CITY, Calif. (Business Wire) -- Shutterfly, Inc. (NASDAQ:SFLY), a leading Internet-based social expression and personal publishing service, today announced new enhancements to its award winning photo book line. Improvements include the launch of the “Storytelling Collection”, a collection of premium designs and exclusive guided styles for all of life's occasions; elementary school yearbooks; longer format photo books and additional enhancements that give customers even more creative control. New Elementary School Yearbooks from Shutterfly (Photo: Business Wire) “As the photo book leader, Shutterfly is committed to offering the industry's best creation experience by providing more design options that capture a diverse set of occasions and everyday moments,” said Shutterfly General Manager Karl Wiley. “In response to customer demand, we are introducing a school yearbook solution to provide parents and the more than 100,000 elementary schools in the U.S. with high quality, affordable ways to commemorate the school year. Additionally, our new “Storytelling Collection” gives customers access to exclusive, premium designs, guided styles and more options, many based on their requests and feedback.” Elementary School Yearbook Solution Shutterfly's new yearbook solution helps parents of a single student, class or an entire school, easily create specially designed page templates for school activities, subjects, and student classroom and faculty photos. Additionally, users have access to photo shot list, tips and ideas and are eligible for bulk pricing discounts. Customers are now able export a draft version of their book to PDF to better support offline editing. To learn more, visit http://www.shutterfly.com/yearbook. Storytelling Collection "The StorytellingTM Collection" offers 16 new premium styles distinguished by intricate, hand-drawn designs and guided storytelling. Each “Storytelling Collection” kit includes backgrounds, idea pages, and embellishments and is available for $4.99. Individual elements start at $.25. This exclusive collection complements Shutterfly's existing photo book style offering of more than 75 designs which customers may continue to access free of charge. To learn more visit, http://www.shutterfly.com/photo-books/custom-path. Expanded Page Count and Enhanced Functionality To support longer-form storytelling, Shutterfly increased the number of pages available in photo books from 100 to 110 and introduced Smart AutofillTM to allow for improved photo presentation. Additional improvements include easier page duplication, export to PDF functionality and the ability to copy and apply frames, backgrounds and layouts across one or more pages. To learn more about Shutterfly photo books visit, http://www.shutterfly.com/photo-books. About Shutterfly Founded in 1999, Shutterfly, Inc. is an Internet-based social expression and personal publishing company and operates Shutterfly.com, Tiny Prints.com and Weddingpaperdivas.com. 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. 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 http://www.shutterfly.com. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50193584&lang=en Shutterfly, Inc.Gretchen Sloan, 650-610-5276gsloan@shutterfly.com