Shutterfly to License Kodak Imaging Patents

  Shutterfly to License Kodak Imaging Patents

Business Wire

REDWOOD CITY, Calif. -- December 19, 2012

Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer
of high-quality personalized products and services, today announced that it
has entered into an agreement to license 1,100 Kodak imaging patents, as well
as other patents that Kodak is keeping as part of its on-going business.

“As the market leader in digital personalized photo products and services,
Shutterfly continues to invest in its intellectual property portfolio through
licensing and internal innovation, which includes 55 patents granted and more
than 50 patent applications in the U.S. and abroad,” said Jeffrey Housenbold,
president and chief executive officer at Shutterfly. “We’ve partnered with a
consortium of global technology firms to come to an agreement that supports
the business objectives of all parties involved.”

This proposed agreement also dismisses current patent-related litigation
between Shutterfly and Kodak.

About Shutterfly Inc.

Shutterfly, Inc. is the leading manufacturer and digital retailer of
high-quality personalized products and services offered through a family of
lifestyle brands. Founded in 1999, the Shutterfly, Inc. family of brands
includes: Shutterfly, where your photos come to life in photo books, cards and
gifts; Tiny Prints, premium cards and stationery for all life’s occasions;
Wedding Paper Divas, wedding invitations and stationery for every step of the
planning process; and Treat, personalized greeting cards that really stand
out. For more information about Shutterfly, Inc. (NASDAQ:SFLY), visit
www.shutterfly.com.

Contact:

Shutterfly, Inc.
Michael Look, 650-610-5910 (Investors)
mlook@shutterfly.com
Gretchen Sloan, 650-610-5276 (Media)
gsloan@shutterfly.com