REDWOOD CITY, CALIFORNIA (October 25, 2001) — With today’s launch of the Microsoft Windows XP operating system, Shutterfly is working with Microsoft to help consumers use their Windows XP-based PCs to easily communicate with family and friends by taking advantage of the benefits unique to the digital world. As of today, customers will have the opportunity to access Shutterfly’s award-winning products and services through the Windows XP operating system. The integration of Shutterfly’s technology into Windows XP is part of Shutterfly’s ongoing goal to demystify digital photography by making it easier for consumers to work with their photos online.

“The Microsoft Windows XP operating system provides users with a simplified tool to take advantage of digital photography, and building upon the Windows XP platform gives Shutterfly more exposure to those users, which helps us educate and grow the awareness of online photo services,” said Andy Wood, Shutterfly CEO. “Our collaboration with Microsoft in Windows XP is part of larger strategy to work with companies that are making digital photography easier and more convenient for consumers.”

“Windows XP is the best Windows operating system for experiencing digital photography,” said John Frederiksen, general director of marketing for Windows at Microsoft Corp. “The combination of Windows XP and Shutterfly’s technology will enable users to create, connect and communicate in the digital world.”

Users of Windows XP will have a new option to view, edit and order high-quality prints and cards of their digital images by having access to Shutterfly’s technology through the Windows XP Online Print Wizard. In addition, consumers can enhance their photos with easy-to-use editing tools, such as red-eye removal and crop, and personalize them with special borders and effects. Users can order a variety of customized products from Shutterfly, including albums with captions called Snapbooks™, invitations, holiday cards, calendars and frames.

About Shutterfly
Shutterfly is the leading online photo service that takes advantage of the digital world’s unique capabilities. By bringing together images, text and graphics in innovative, creative and personalized products and services, Shutterfly makes it simple for consumers and businesses to stay connected to the people who matter most to them. Shutterfly enables film and digital photographers to easily enhance, personalize, store and share pictures online or through high-quality prints. Shutterfly users can transform their pictures with special effects and borders as well as create photo cards, invitations, calendars and Snapbooks™, all of which can be mailed to friends and family worldwide. Shutterfly is consistently recognized for its photo quality and features, and most recently was named “Best Online Photo Service” by PC Magazine, earning its coveted “Editors’ Choice” award for the second straight year. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

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Shutterfly and Snapbook are trademarks of Shutterfly, Inc.
Other product or service names mentioned herein are the trademarks of their respective owners.