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REDWOOD CITY, Calif.--([ BUSINESS WIRE ])--[ Shutterfly, Inc ]. (NASDAQ:SFLY), a leading Internet-based social expression and personal publishing service, announced today that it has acquired [ Penguin Digital, Inc ]. ([ www.pengu.in ]), a mobile application developer that provides consumers with a fun and easy way to create, share and purchase photo merchandise directly from their mobile devices.

"We are thrilled at the opportunity to join forces with Shutterfly. Itas exciting to combine our mobile expertise and passion for innovation with Shutterflyas brand, large customer base and manufacturing expertise"

Penguin Digital launched an iPhone app in January 2012 called [ Mobile Photo Factory ] or MoPho for short ([ www.mophoapp.com ]), which allows anyone to easily create physical prints and photo based merchandise such as iPhone & iPad cases, mugs, key chains, apparel, canvas prints and more. With MoPho, users can access photos from their iPhone or their Facebook or Instagram accounts and create one-of-a-kind products and gifts while on the go. In addition to the stand alone application, Penguin Digital has developed a Software Development Kit(aSDKa) that lets other app developers integrate printing of photos and the creation of photo based products into their own applications.

Smartphone use continues to grow, and according to eMarketer, by 2013, more than half of all mobile phone users in the US will own a smartphone. The acquisition of Penguin Digital further solidifies Shutterflyas market leading position, enabling consumers to be more creative with their photos and to preserve their memories. The MoPho application will be rebranded and updated over the next few months and will add to Shutterflyas mobile offerings, which include the popular Shutterfly iPhone and iPad apps and the soon to be released Treat birthday card app.

aThe acquisition of Penguin Digital supports our mobile strategy aimed at giving consumers better ways to engage with their photos and personalize products on the go,a said Jeffrey Housenbold, president and CEO of Shutterfly. aWe believe itas important to give consumers the choice and convenience of transforming their memories into high quality products and gifts from their PC, tablet and mobile phone. Our recent strategic acquisitions of Nexo, TinyPrints, Photoccino and now Penguin Digital combined with our continued investment in organic growth and innovation further enables us to fulfill our vision of making the world a better place by helping people share lifeas joy.a

aWe are thrilled at the opportunity to join forces with Shutterfly. Itas exciting to combine our mobile expertise and passion for innovation with Shutterflyas brand, large customer base and manufacturing expertise,a said Reuven Moskowitz, CEO of Penguin Digital. aTogether, we will truly put the selection and ease of a physical photo kiosk in the pocket of millions of smartphone users.a

Penguin Digital founders Reuven Moskowitz and Josh Friedman, along with the rest of the Penguin Digital team, will be establishing Shutterflyas new technology center in New York City.

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.

About Penguin Digital

Founded in 2011, Penguin Digital develops mobile products and technologies to connect people, photos, and products. Our mission is to make it as easy as possible for mobile users to create and purchase photo product right from their smartphone.