REDWOOD CITY, Calif., May 24, 2007 (BUSINESS WIRE) — Shutterfly, Inc. (NASDAQ:SFLY), an Internet-based social expression and personal publishing service, today announced that it was recently ranked No. 93 on the list of America’s 500 largest e-retailers. Shutterfly appears alongside other well-known companies like Amazon.com, Gap Inc. Direct, and Best Buy.com in Internet Retailer’s Top 500 Retail Websites Guide.

Shutterfly secured the No. 93 spot on the list with $123 million in annual online revenues in 2006. Personalized products and services, which include photo books, calendars and greeting cards, accounted for 51 percent of the Company’s total 2006 annual revenues.

“Securing a spot among the top 100 online retailers is further evidence of our growing brand awareness and market leadership,” said Jeffrey Housenbold, president and CEO of Shutterfly. “Our customers return to us again and again because of our focus on delivering high-quality, innovative products and services that enable them to be more creative, thoughtful and expressive with their memories.”

“Shutterfly is a perfect example of a segment of the retail business that has been transformed by the Internet. The Company has achieved outstanding growth and profitability by harnessing the power and convenience of the web to consumer demand for photo-based products, and done so in a way that would be cumbersome if not impossible in the offline world,” says Kurt Peters, editor in chief of Internet Retailer.

Internet Retailer’s definitive ranking and analysis of America’s 500 largest e-retailers is based on annual 2006 Internet sales, researched by Internet Retailer and confirmed by retailers. This report includes company financial, operational and performance data, as well as vendors in 16 key categories.

About Internet Retailer

Published by Chicago-based Vertical Web Media LLC, Internet Retailer is a monthly national business magazine, web site, conference and directory that serve the retailing community. The Internet Retailer family of products focuses on the Internet’s vital role in a wide array of retailing activities, including web merchandising, supply chain management and multi-channel integration. Its 40,000+ subscribers are senior executives primarily from retail chains, independent stores, catalogs, virtual merchants and brand-name manufacturers. Internet Retailer’s circulation represents the largest multi-channel readership base of any retailing magazine. The magazine also publishes the most widely read e-mail newsletter in retailing, IRNewsLink, which is distributed twice-weekly to 35,000 opt-in subscribers, operates the largest retailing information web site, InternetRetailer.com, sponsors the largest conference in the e-retailing industry and publishes an annual ranking of the 500 largest web sites.

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. The Company 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.

SOURCE: Shutterfly, Inc.

Shutterfly, Inc.
Rachel Elizondo, 650-610-5835
relizondo@shutterfly.com

Copyright Business Wire 2007

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