Shutterfly Acquires Tiny Pictures

REDWOOD CITY, Calif.--(Business Wire)--
Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social expression and
personal publishing service, announced today that it has acquired Tiny Pictures,
a privately held San Francisco based company, backed by Draper Fisher Jurvetson
and Mohr Davidow Ventures. Tiny Pictures develops leading-edge applications and
services for picture and video sharing. Tiny Pictures`s founder and CEO, John
Poisson, along with the Tiny Pictures team, will join Shutterfly.

"I am excited to welcome John and the Tiny Pictures team to the Shutterfly
family," said Jeffrey Housenbold, president and chief executive officer of
Shutterfly. "I am impressed with their deep understanding of consumer needs and
their ability to develop products and services that leverage the unique
characteristics of mobile and social environments. Jointly we will leverage one
another`s strengths to further extend Shutterfly's services and products."

"We are thrilled to be joining forces with a market leading company like
Shutterfly," said John Poisson, founder and chief executive officer of Tiny
Pictures. "It's a great fit; both Tiny Pictures and Shutterfly share a passion
for innovation, quality, and customer service. We look forward to collaborating
on new ways for consumers to express themselves and tell their stories on social
networks and mobile devices."

About Shutterfly

Founded in 1999, Shutterfly, Inc. is the leading Internet-based social
expression and personal publishing service. Shutterfly provides high quality
products and world class services that make it easy, convenient and fun for
consumers to preserve their digital photos in a creative and thoughtful manner.
Shutterfly's flagship product is its award-winning Photo Book line, which helps
consumers celebrate memories and tell their stories in professionally bound
coffee table books. More information about Shutterfly (NASDAQ:SFLY) is available
at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of
Shutterfly, Inc.

About Tiny Pictures

San Francisco based Tiny Pictures develops applications that enable users to
share videos and images across mobile networks and social networking platforms.
Tiny Pictures`s flagship product is Radar (http://radar.net), the leading
service for real-time sharing of cameraphone photos and videos. More information
about Tiny Pictures is available at www.tinypictures.us.

Shutterfly, Inc.
John Kaelle, 650-610-3541 (IR)
jkaelle@shutterfly.com
Gretchen Sloan, 650-610-5276 (PR)
gsloan@shutterfly.com

Copyright Business Wire 2009