May 7, 2007

Target and Shutterfly to Deliver New Ways to Preserve and Share Memories

Guests Now Have More Choices and Easy Access to Innovative Photo Products

MINNEAPOLIS & REDWOOD CITY, Calif., May 07, 2007 (BUSINESS WIRE) -- Target Corporation (NYSE:TGT) and Shutterfly, Inc. (NASDAQ:SFLY), an Internet-based social expression and personal publishing service, today announced a strategic partnership to create an online photo service that will offer Target guests more creative options for preserving their memories and managing all of their photo needs.

Beginning May 30th, Target will offer Shutterfly photo services through www.targetphoto.shutterfly.com and www.target.com/photo. Guests will be able to upload and organize their photos online and access Shutterfly's easy-to-use services to store, share and print their digital photos, and create memorable gifts. Additionally, Shutterfly customers will be able to order prints and print them directly to local Target stores, ready for pick up in as little as one hour.

"Shutterfly is one of the leading online photo services and the perfect choice for our guests, who are seeking innovative yet affordable, trend-right solutions to match their busy lifestyle needs," said Steve Eastman, vice president, Target. "We continually strive to provide our guests with highly differentiated products and we are excited to offer direct access to Shutterfly's high-quality products and services for preserving and sharing memories."

Guests will have the following service options:

-- Order prints on-line and pick them up in local Target stores within an hour

-- Order Shutterfly products and receive them at home via mail delivery

-- Purchase Shutterfly ship-to-home products at select Target stores

Shutterfly's award-winning Photo Book line, along with Shutterfly Greeting Cards, will be among the first ship-to-home products featured within select Target stores. In-store displays will showcase creative and thoughtful gift ideas from Shutterfly and allow consumers to experience the Company's high-quality products in person.

"We're excited to collaborate with Target to introduce our industry-leading products and services to the millions of Target guests who share our customers' same appreciation of design sensibility and high-quality products," said president and chief executive officer of Shutterfly, Jeffrey Housenbold. "This partnership provides a first-of-its-kind retail channel for Shutterfly with one of the nation's leading consumer brands, and we are delighted to have found in Target the ideal business partner to give consumers the quality experience they expect from Shutterfly."

About Target

Minneapolis-based Target serves guests at 1,502 stores in 47 states nationwide by delivering today's best retail trends at affordable prices. Target is committed to providing guests with great design through innovative products, in-store experiences and community partnerships. Whether visiting a Target store or shopping online at Target.com, guests enjoy a fun and convenient shopping experience with access to thousands of unique and highly differentiated items. Target (NYSE:TGT) gives back more than $3 million a week to its local communities through grants and special programs. Since opening its first store in 1962, Target has partnered with nonprofit organizations, guests and team members to help meet community needs.

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 one 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.

SOURCE: Shutterfly , Inc.

Shutterfly Media Relations
Bridgette Thomas, 650-610-3519
bthomas@shutterfly.com
or
Target Media Relations
612-696-3400

Copyright Business Wire 2007

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