Shutterfly Enhances Online Sharing, Collaboration & Community with Acquisition of...

Fri Jan 4, 2008 4:45pm EST

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Shutterfly Enhances Online Sharing, Collaboration & Community with Acquisition of Nexo Systems

Company to Host a Conference Call and Webcast Today at 1:45 P.M.
PT
REDWOOD CITY, Calif.--(Business Wire)--Shutterfly, Inc. (NASDAQ:SFLY), the leading Internet-based social
expression and personal publishing service, announced today that it is
acquiring Nexo Systems, Inc., a privately held on-line sharing and
group services company that has developed a platform for easily
creating customized, content-rich personal and group websites. Palo
Alto, California based Nexo launched its beta service at the Demo07
conference. Nexo's founders Craig Jorasch and Tom McGannon will join
the Shutterfly technology team, led by Stanford Au, Shutterfly's
senior vice president of technology. Today at 1:45 P.M. PT, Shutterfly
will host a live conference call and webcast to discuss this
announcement.

The webcast will be available at www.shutterfly.com in the
"Investor Relations" section. To access the conference call, please
dial 719-325-4853. A replay of the conference call will be available
through Friday, January 11, 2008. To hear the replay, please dial
719-457-0820. Replay passcode: 5848021.

"Photos play an important role in social expression and personal
publishing, and Shutterfly is proud to be an early pioneer of online
sharing. The acquisition of Nexo accelerates our next-generation
sharing platform and enhances Shutterfly's market leading position and
consumer value proposition," said Jeffrey Housenbold, president and
chief executive officer of Shutterfly. "Nexo's talented development
team has deep experience with Web 2.0 technologies and services.
Nexo's services will complement Shutterfly's products and services,
giving our customers more ways to connect with friends and family and
to share pictures taken with multiple cameras at special events - from
weddings and family reunions to the kids' weekly soccer game."

Craig Jorasch and Tom McGannon both joined Shutterfly as vice
presidents and received restricted stock grant awards, awarded on
January 4, 2008, in an aggregate amount of 192,770 shares. The
restricted shares were not issued under a shareholder approved plan
but are pursuant to a Nasdaq approved exception.

The transaction was consummated for aggregate cash and stock
consideration totaling less than $15 million.

About Shutterfly

Founded in 1999, Shutterfly, Inc. is an 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. The Company has more than 1.5 billion images stored in its
digital archive. More information about Shutterfly (NASDAQ:SFLY) is
available at www.shutterfly.com. Shutterfly and Shutterfly.com are
trademarks of Shutterfly, Inc.

Shutterfly, Inc.
Marilyn Lattin, 650-610-5853 (Investor Relations)
mlatting@shutterfly.com
Bridgette Thomas, 650-610-3519 (Media Relations)
bthomas@Shutterfly.com