NEW YORK and REDWOOD CITY, Calif. (October 22, 2001) — Sharing treasured photos of a new grandchild and customizing favorite family pictures are just a click away for Verizon Online customers as a result of an agreement between the company and Shutterfly.

The Verizon Online Photo Center will offer a full suite of online photo products and services as well as the ability to store photos with Shutterfly, saving customers’ disk space on their computer. Verizon Online customers save 15 percent on all Shutterfly products offered through the photo center.

The alliance comes at a time when the number of U.S consumers with fast Internet access at home has more than doubled to 18.9 million, according to September 2001 data by Nielsen//NetRatings, and as digital camera sales and consumer demand for digital photography services continue to grow.

“Our new photo center allows our customers to share precious photographs, customize photo cards and personalize notes for loved ones,” said John Wimsatt, vice president – marketing for Verizon Online. “It’s an innovative digital service that makes Verizon Online’s high-speed Internet access even more valuable.”

“The Photo Center provides customers with the simplicity and services they need to get the most out of digital photography,” said Shutterfly CEO Andy Wood. “Verizon Online customers will soon learn what current Shutterfly customers have told us – they can get higher quality, longer-lasting prints at a lower price than using their home printer.”

Customers can use the Verizon Online Photo Center’s photo-finishing services to get high-quality prints and personalized photo greeting cards from their photos. They also can enhance their photos with easy-to-use editing tools, such as red-eye removal and cropping abilities, and personalize them with special borders and effects. A variety of customized products are available from the photo center to suit almost every occasion, including personalized photo albums called Snapbooks™, invitations, holiday or greeting cards, calendars and frames. Verizon Online customers can have any product mailed to them or have them sent directly to family and friends worldwide.

The photo center is accessible to dial-up customers through a link on the Verizon Online home page portal at http://start.verizon.net or http://dslstart.verizon.net for DSL customers.

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.

About Verizon Online
Verizon Online, a subsidiary of Verizon Communications (NYSE: VZ), is a full-service Internet service provider, offering a complete suite of dial-up, DSL and dedicated Internet access services for residential customers and small and medium-size businesses. Dial-up and dedicated Internet access from Verizon Online is available in all 50 states and the District of Columbia. DSL Internet access services are available in 28 states and the District. Verizon Online also offers businesses a robust portfolio of Web hosting and business email services across the country.

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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.