Press Releases

Shutterfly, Inc.
Jul 27, 2000

CONEXANT AND SIERRA IMAGING JOIN FORCES WITH SHUTTERFLY TO CREATE A SIMPLE ONLINE DIGITAL-TO-PRINT PHOTO ORDERING PROCESS

CONEXANT AND SIERRA IMAGING JOIN FORCES WITH SHUTTERFLY TO CREATE A SIMPLE ONLINE DIGITAL-TO-PRINT PHOTO ORDERING PROCESS

NEWPORT BEACH, Calif. & REDWOOD SHORES, Calif., — June 27, 2000 — Sierra Imaging, a wholly owned subsidiary of Conexant Systems, Inc. (Nasdaq: CNXT), developer of the Image Expert series of feature-rich image management software for digital cameras; and Shutterfly, the leading online photo service chaired by Jim Clark, founder of Silicon Graphics and Netscape Communications, today announced a new way for Shutterfly customers to easily transfer their digital pictures to the Shutterfly website.

Shutterfly will now offer a special edition of Sierra's Image Expert software customized for use by Shutterfly customers. The software will display digital images on a user's PC by instantly showing recognizable thumbnails rather than the often hard-to-identify numbers or file names assigned by the user's digital camera or computer system. Users can simply click on the images they want uploaded to www.shutterfly.com, eliminating the tedious process of opening files to determine which images lie behind a file name like "P0000530.JPG" or "05090001.JPG." Multiple images can be selected before hitting the upload button for maximum efficiency.

"This agreement with Shutterfly is part of a broader initiative we are mounting to help online photo services expand their customer base," said Kevin Strong, senior vice president and general manager of Conexant's Personal Imaging Division. "The acquistion of Sierra Imaging closed earlier this month and this now gives us the opportunity to further extend our image management software to the online arena, and it gives online services a new way to grow the digital imaging market by making it easier for people to get prints. If you can't find a digital image, you can't use it, and our software helps solve that problem."

According to Lyra Research, a leading digital imaging research organization, an estimated 192 million digital camera exposures will be uploaded worldwide in the year 2000. This number will jump to 1.5 billion exposures in the year 2002.* There is no doubt that the number of digital images being uploaded to the Internet is exploding. Shutterfly, Conexant and Sierra Imaging are committed to making it simple and convenient for users to transfer images to www.shutterfly.com.

"We are extremely pleased to be working with Conexant and Sierra Imaging to offer this new value-added feature on the Shutterfly site," said Jayne Spiegelman, CEO of Shutterfly. "We want to make it easy for consumers to manage their digital images and then transfer them to the Shutterfly, and this new alliance is a great leap forward in helping us meet that objective."

About Conexant
With a revenue run-rate of approximately $2 billion per year, Conexant is the world's largest independent company focused exclusively on providing semiconductor solutions for communications electronics. With more than 30 years of experience in developing communications technology, the company draws upon its expertise in mixed-signal processing to deliver integrated systems and semiconductor products for a broad range of communications applications. These products facilitate communications worldwide through wireline voice and data communications networks, cordless and cellular wireless telephony systems, personal imaging devices and equipment, and emerging cable and wireless broadband communications networks. The company aligns its business into five product platforms: Network Access, Wireless Communications, Digital Infotainment, Personal Imaging, and Personal Computing. Conexant is a member of the S&P 500 and Nasdaq-100 Indices. For more information, visit Conexant at www.conexant.com.

About Sierra Imaging
Founded in 1994, Sierra offers one-stop-shopping for all key digital camera components, embedded imaging chips, firmware and imaging application software, allowing OEMs rapid market entry leveraging their individual strategies. The company offers comprehensive digital still camera solutions, including advanced embedded imaging chips and design kits, software for imaging peripherals and turnkey system designs. Sierra's award-winning Image Expert software product line, available for both Macintosh and Windows operating systems, is the leading image management software for digital cameras. Sierra also pioneered the first imaging software for Windows CE devices. For more information, visit www.sierraimaging.com.

About Shutterfly
Shutterfly is a new kind of photo service that makes it simple, convenient and fun for people to take and give pictures. With only the Internet and digital pictures, Shutterfly users can easily enhance, personalize, store and share photos. Most importantly, they can transform their digital pictures into 35mm-quality prints and have them mailed to anyone. Shutterfly services are available at www.shutterfly.com and through partners including Yahoo!, Adobe and PhotoPoint. The privately held company is headquartered in Redwood Shores, California, and is backed by Jim Clark, Mohr Davidow Ventures, Adobe Ventures and Tom Jermoluk. For more information about the company, visit www.shutterfly.com.

Safe Harbor Statement
This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: global and market conditions, including, but not limited to, the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; the availability and extent of utilization of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; fluctuations in manufacturing yields; product obsolescence; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the successful implementation of the company's diversification strategy; labor relations of the company, its customers and suppliers; and the uncertainties of litigation, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Other brands and names contained in this release are the property of their respective owners.

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