September 20, 2012

Shutterfly Expands East Coast Manufacturing Operations, Creating Additional Jobs in South Carolina

New 300,000 square foot Facility in Fort Mill, SC Will Help Shutterfly Meet Growing Consumer Demand for High-Quality Personalized Photo Products

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Shutterfly, Inc. (NASDAQ:SFLY), a leading Internet-based social expression and personal publishing service, today announced, subject to final state approvals, it will triple its East Coast manufacturing operations with a new state-of-the-art production facility in Fort Mill, South Carolina. Responding to significant business growth, this expansion will increase Shutterfly's East Coast photo-product operations footprint to 300,000 total square feet. The new facility is scheduled to open in the second quarter of 2013 and the existing Charlotte, North Carolina, manufacturing space will be fully operational until that time. With the new facility located less than ten miles from the Company's current location, Shutterfly expects to retain existing employees while creating new jobs during the next three years. This expansion builds on Shutterfly's commitment to U.S.-based operations, as the Company maintains all manufacturing domestically.

"I am extremely proud that we are able to retain the employees working in our Charlotte facility while adding new jobs and expanding our manufacturing foot print," said Jeffrey Housenbold, president and CEO of Shutterfly. "Fort Mill is an ideal location for its proximity to our employees and the new talented local labor pool."

The 300,000 square foot facility in Fort Mill will house a portion of production and customer service personnel for Shutterfly's four brands: Shutterfly, Tiny Prints, Wedding Paper Divas and Treat. While Shutterfly manufacturing is not new to the eastern U.S., the customer service center in Fort Mill will be the first East Coast customer service presence for Shutterfly. The move will bring new jobs to the U.S.

"We are committed to providing our customers the highest quality experiences and products to help them capture, preserve and share their precious memories," said Housenbold. "Expanding our manufacturing facilities is critical to ensuring we are able to respond to increasing demand and deliver the best to our growing customer base."

"I am grateful to Shutterfly for bringing new skilled jobs to South Carolina", said Robert Hitt, South Carolina Secretary of Commerce. "We worked closely with Shutterfly and supported their efforts to secure a facility that could accommodate their rapid growth and existing employee population."

Shutterfly, the market leader in online photo products and services, currently serves millions of customers who store more than 15 billion photos in Shutterfly's cloud service. More are expected with recent acquisitions of Kodak Gallery, Photoccino and Penguin Digital, as well as the launch of Shutterfly's fourth lifestyle brand and forthcoming mobile app, Treat, which serves the multi-billion one-to-one greeting card market. Additionally, the new facility will increase Shutterfly's speed and efficiency in producing and shipping the Company's award-winning products such as photo books, holiday cards and personalized stationery.

In addition to future positions in Fort Mill, Shutterfly is actively recruiting for several key positions in the areas of manufacturing, engineering and customer service. For more information on job opportunities please visit: www.shutterfly.com/jobs.

The Company will give greater detail and insight on its third quarter earnings conference call scheduled for October 30, 2012.

About Shutterfly

Founded in 1999, Shutterfly, Inc. is an Internet-based social expression and personal publishing company and operates Shutterfly.com, Tiny Prints.com, Treat.com and Weddingpaperdivas.com. 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. Shutterfly was recently named one of the top 25 Best Midsized Companies to Work For by the Great Place to Work Institute. More information about Shutterfly (NASDAQ:SFLY - News) is available at www.shutterfly.com. Shutterfly and Shutterfly.com are trademarks of Shutterfly, Inc.

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

Source: Shutterfly, Inc.

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