MENLO PARK, Calif. (August 15, 2000) — Homestead.com and Shutterfly today announced a strategic partnership to offer a full-service online photo center to Homestead members. Homestead, a leading online resource for building personalized Web sites, has increased its user base to over six million members. Homestead will join forces with Shutterfly, a leading online photo service, to create the Homestead Photo center. According to the terms of the partnership, the co-branded Photo center will offer members direct access to Shutterfly’s quality prints and customer-focused services. The partnership gives members a convenient way to view and share photos online, personalize their photos with borders and effects, post images on their personal Web sites and order high-quality prints of their favorite images.

The partnership delivers the benefits of online digital photography directly to millions of users who are already uploading images directly to the Internet. Through the Photo center, Homestead members will be able to create and access their own secure photo accounts where they can store, view and enhance their images. Members will be able to incorporate their images directly into their personal Web sites, making it easier for family and friends to share in each other’s lives. Members will be able to either upload digital images or send rolls of 35 mm or APS (ADVANTIX®) film directly to Shutterfly to be developed and scanned. Once the film is developed, the digital images will be transferred to the member’s photo account, allowing them to easily share the pictures and add them to their personal Web sites. Beyond sharing their photos on the Web, Homestead members will be able to include “Print” buttons on their sites that will allow the 9.5 million monthly visitors to Homestead-built web sites to order 35 mm-quality prints delivered to their home.

“Homestead is an ideal partner for Shutterfly, and we are pleased that their members will now be able to take full advantage of our service,” said Shutterfly CEO and co-founder Jayne Spiegelman. “This partnership will ensure that consumers get a combination of the best photo services available along with the optimum tools to integrate them into their own Web sites. We are thrilled to work with Homestead to provide its members with the highest quality, easy-to-use photo solution on the Internet.”

Scheduled to launch in September, in advance of the holiday season, the Photo center will be available at www.homestead.com and integrated into the Homestead Element Palette, which includes over 150 of the Internet’s leading features, services, technologies and content. The Photo center will offer the ideal tools for members to create dynamic online greeting cards, newsletters and photo albums for holidays, weddings, birthdays, vacations and special events. “At Homestead, it is our goal to offer our members all of the very best services of the Web, which is why we are excited to join forces with Shutterfly,” said Homestead founder and CEO, Justin Kitch. “Our partnership will add a broad selection of services to help members manage their collections of photos, personalize their images with borders and effects, and print-enable them for their very own Web sites.”

The Homestead-Shutterfly partnership joins a leading resource for building feature-rich Web sites with a leading online photo service. Homestead is a Media Metrix top 50 site with over 9.5 million unique visitors per month (according to PC Data’s July report). Shutterfly has experienced rapid growth with close to a million unique users (according to PC Data’s July report). InfoTrends research predicts that the total number of prints from digital files will grow from 5.4 billion in 2000 to 26 billion in 2005 in the United States.

Pricing and Availability
The Homestead Photo center is scheduled to be launched at www.homestead.com in September and be available within the Homestead Element Palette in October. According to the terms of the partnership, in addition to full photo services, members will receive 50 free 4×6 high-quality prints free of charge when they sign up for a photo account.

About Shutterfly
Shutterfly is a new kind of photo service that makes it simple, convenient and fun for people to take and give pictures. With only the Internet and a camera, Shutterfly users can easily enhance, personalize, store and share photos. Most importantly, they can transform their digital pictures into 35mm-quality prints and have them mailed to friends and family, all over the world. Shutterfly services are available at www.shutterfly.com and through partners including Yahoo!, Adobe and PhotoPoint. The privately held company is headquartered in Redwood Shores, California and is backed by Jim Clark, Mohr Davidow Ventures, Adobe Ventures and Tom Jermoluk. For more information about the company, visit www.shutterfly.com.

About Homestead.com
Homestead.com integrates and distributes Internet content, services and technologies to enable individuals and small business to create feature-rich Web sites. Homestead has over 6 million registered members. Homestead enables members to communicate with friends and family, meet people around the world, and operate small businesses online. Members can easily build personalized Web sites from Homestead’s palette of customizable, ‘drag-and-drop’ Elements. Homestead currently offers more than 150 of these pre-programmed Elements that include everything from basics such as text boxes, buttons and photos to dynamic features including chat rooms and e-commerce payment processing. Homestead allows its Element partners to reach a targeted audience and provides its numerous co-brand partners with a complete Web site building platform. Based in Menlo Park, Calif., the company has more than 130 employees. Homestead is available at http://www.homestead.com and through co-brand sites such as AltaVista, Dell, USATODAY.com, Juno, CollegeClub.com and many others.

# # #

Homestead, Homestead.com and Homestead Photo center are trademarks of Homestead.com, Inc. Shutterfly, Shutterfly.com, the Shutterfly logo and VividPics are trademarks of Shutterfly, Inc. All other trademarks and product names are the property of their respective owners.