Shutterfly Inc. Acquires MyPublisher

  Shutterfly Inc. Acquires MyPublisher

Business Wire

REDWOOD CITY, Calif. -- April 30, 2013

Shutterfly, Inc. (NASDAQ:SFLY), the leading manufacturer and digital retailer
of high-quality personalized products and services, announced today that it
has acquired MyPublisher, one of the pioneers in the photo book industry and
creator of easy-to-use photo book-making software. The acquisition will
combine MyPublisher’s photo book technology and highly specialized
manufacturing capabilities with the Shutterfly platform to deliver a superior
customer experience.

“Shutterfly photo books continue to delight customers, bringing more consumers
online to tell their stories and connect with friends and family in creative
ways,” said Jeffrey Housenbold, president and CEO of Shutterfly. “By combining
MyPublisher’s best in class software client with Shutterfly’s industry leading
cloud based platform, we will continue to drive growth and set the standard
for design, choice and quality in the personal publishing and social
expression category.”

“Shutterfly and MyPublisher share a common vision of enabling customers to
create premium products that share their most precious memories,” said Carl
Navarre, founder and CEO of MyPublisher. “Together, our teams will chart the
course for the next generation of photo book creation, while enabling our
customers to take advantage of Shutterfly’s industry-leading solutions for
other personalized products.”

Financial terms of the transaction have not been disclosed. Shutterfly will
discuss this transaction as part of its Q1 2013 financial results conference
call on May 1, 2013 at 2:00 PM PT (5:00 PM ET).

Notice Regarding Forward-Looking Statements

This press release includes certain forward-looking statements related to
Shutterfly, Inc. within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical facts,
are forward-looking statements. These statements are based on management's
current estimates, assumptions, expectations or beliefs and are subject to
uncertainty and changes in circumstances. These forward-looking statements are
estimates reflecting the judgment of our senior management and actual results
may vary materially from those expressed or implied by the forward-looking
statements herein due to changes in economic, business, competitive,
technological and/or regulatory factors, and other risks and uncertainties
affecting the operation of the business of Shutterfly, Inc. For a list and
description of risks and uncertainties which may cause actual results to vary
from forward-looking statements, see our periodic filings with the Securities
and Exchange Commission at www.sec.gov. All of Shutterfly's forward-looking
statements, whether written or oral, are expressly qualified by this safe
harbor statement and any other cautionary statements that may accompany such
forward-looking statements. Shutterfly is under no obligation to, and
expressly disclaims any obligation to, update or alter its forward-looking
statements, whether as a result of new information, future events, changes in
assumptions or otherwise.

About Shutterfly

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.shutterflyinc.com.

About MyPublisher

Since its founding in 1994, MyPublisher has established itself as one of the
leaders in custom photo book software, bookstore quality printing and superior
customer service. MyPublisher has sold and shipped more than five million
photo books since 2002. In 2009 alone, MyPublisher experienced 10 million
visitors to its website and more than 2 million downloads of its software.
MyPublisher's philosophy is simple–provide customers with intuitive,
easy-to-use photo book-making software, give them end-to-end customer support,
and deliver a finished book of superb workmanship.

Contact:

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