Shutterfly Added to Russell 3000 Index, Russell 2000 Index and Russell Microcap Index

REDWOOD CITY, Calif.–(BUSINESS WIRE)–Shutterfly, Inc. (NASDAQ:SFLY – News), an Internet-based social expression and personal publishing service, today announced that it has been added to the Russell 3000® Index, the Russell 2000® Index of small-capitalization stocks and the Russell Microcap™ Index.

“Being included in the Russell Indexes shortly after our initial public offering is an honor and will help increase Shutterfly’s visibility with investors,” said Jeffrey Housenbold, president and chief executive officer of Shutterfly. “It is a clear validation of our market leadership position, winning strategy and strong execution.”

The Company’s inclusion was part of the Frank Russell Co.’s annual index reconstitution process, which became effective December 15, 2006. The Russell 3000 index measures the stock performance of the 3,000 largest U.S. companies based on total market capitalization. The Russell 2000 index measures the performance of the 2,000 smallest companies in the Russell 3000 index. The Russell Microcap Index is constructed to provide a comprehensive and unbiased barometer for the microcap segment trading on national exchanges.

Membership in Russell’s 21 U.S. equity indexes is determined strictly by market capitalization rankings and style attributes rather than by subjective opinion or committee decisions. Russell indexes are widely used by managers for index funds and as benchmarks for both passive and active investment strategies. About $250 billion is invested in index funds based on Russell’s indexes and an additional $850 billion is benchmarked to them. Investment managers who oversee these funds purchase shares of member stocks according to that company’s weighting in the particular index. More detailed information is posted on Frank Russell Company’s Web site (www.russell.com).

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 and to tell their stories in a creative and thoughtful manner. Shutterfly has more than one billion images stored in its digital archive. More information about Shutterfly (NASDAQ:SFLY – News) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.

About Russell

Russell, a global leader in multi-manager investment services, provides investment products and services in more than 39 countries. Russell manages more than $135 billion in assets and advises clients worldwide representing $2.3 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com.

Contact:

Shutterfly, Inc.
Investor Relations:
Marilyn Lattin, 650-610-5853
Public Relations:
Bridgette Thomas, 650-610-3519