REDWOOD CITY, CALIF. – (October 20, 2005) — Shutterfly, Inc., the leading independent online photo service, today announced its ranking on the 24th annual Inc. 500 list of the fastest-growing private companies in the country. Shutterfly ranked number 170, with three-year sales growth of 627 percent. The list, generated by Inc. magazine, is determined using stringent business management and accounting criteria. The Inc. 500 can be found in the November issue, which appears on newsstands November 1.

The companies that made the Inc. 500 list represent the vanguard of American industry. “When you look at the amazing job growth among Inc. 500 companies and contrast it with the stagnation in the Fortune 500, it underscores the changing nature of our economy,” said Jim Melloan, project manager for the Inc. 500. “With unprecedented global competition, companies have to be able to turn on a dime and discover innovative new ways of doing business. Increasingly, it’s the smaller, agile companies like those on the Inc. 500 that are best equipped to meet these challenges.”

“Shutterfly is honored to be included on the prestigious Inc. 500 list,” said Jeff Housenbold, President and CEO of Shutterfly. “We work hard to continually delight our customers with simple and convenient ways to be thoughtful and creative with their photos. Our inclusion in the Inc. 500 illustrates that Shutterfly’s commitment to innovation and high quality is filling a growing demand by consumers who want a trusted partner that delivers an exceptional experience with their precious memories.”

To be eligible for this year’s Inc. 500, companies had to be U.S.-based, independent and privately held through their fiscal year 2004, and have had at least $500,000 in net sales in the base year of 2001. In addition, their 2004 sales had to exceed 2003 sales. Companies are ranked on cumulative three-year sales growth from 2001 to 2004. Inc. verifies all information using tax forms and audited financial statements from certified public accountants and by conducting interviews with company officials.

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About Shutterfly
Founded in 1999, Shutterfly, Inc. (www.shutterfly.com ) is a premium photo service specializing in the consumer and professional photography markets. The company provides customers with simple and fun ways to organize, enhance and archive images; share pictures with family and friends; order professional-quality prints and create an assortment of personalized items such as Photo Books, Calendars and Greeting Cards. In 2005, Shutterfly ranked no. 170 on the 24th annual Inc. 500 list of the fastest-growing private companies in the country.

Shutterfly, Shutterfly Collections and Shutterfly.com are trademarks of Shutterfly, Inc.
Media Contacts:
Bridgette Thomas
Shutterfly
(650) 610-3519