Additionally, the Company will host the virtual Shutterfly Lounge where event attendees can participate in digital scrapbooking celebrity chat sessions, discuss what they've learned and meet new and old friends anytime, from the comfort of home.

"Shutterfly is excited about Scrap-A-Faire. The 'on demand' learning and discussion driven by Scrap-A-Faire really caters to the lives of our busy customers and is a great opportunity for our Digital Scrapbooking Advisory Team to interact with and obtain feedback directly from consumers," said Kathryn Olson, Chief Marketing Officer of Shutterfly.

Happening November 2-11, 2007 online at www.scrapafaire.com, the second annual Scrap-A-Faire will provide a virtual world where consumers can receive both education and inspiration. It will offer classes covering a wide range of techniques with step-by-step instructions for all skill levels; exhibits; make and takes; and inspirational galleries presented in an interactive format that allows the audience to view, learn and create. Scrapbookers interested in registering for Scrap-A-Faire can do so now at www.scrapafaire.com.

In addition to the event sponsorship and daily prize drawings, Shutterfly will offer additional product discounts and special services for attendees.

• Holiday Card Templates - Designed by Shutterfly's Digital Scrapbooking Advisory Team, and available exclusively at Shutterfly, these free, downloadable Holiday Card Templates are found at www.shutterfly.com/digiscraptemplates. Customers can download these templates, personalize them with favorite photos and greetings, and then upload them to Shutterfly for easy, high-quality card printing.
• Digital Scrapbooking Advisory Team Holiday Blog - Shutterfly and its Digital Scrapbook Advisory Team are providing inspiration, ideas and surprises through its new Holiday Blog, www.shutterfly.typepad.com. On the blog, consumers can discover how the Advisory Team is celebrating the holidays, get inspired by creative ways to scrap for the season, and read advice from the experts.
• Scrapper Savings - To thank its loyal digital scrapbooking customers, this holiday season Shutterfly is offering a special discount on its new line of square-format, archival-quality Scrapbook Pages. When customers order three 12x12 or 8x8 Scrapbook Pages, they will receive an additional page of the same size free in the same order. Offer valid through November 15th.
• Scrapbooking Support - Guidance and tips for making 5x7 Greeting Cards, 4x8 and 5x7 Photo Cards and 12 or 18-month personalized Calendars.
  

Shutterfly's complete line of scrapbooking solutions is available at: www.shutterfly.com/digiscrapholiday.

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.
Gretchen Sloan, 650-610-5276
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