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Shutterfly Wins Bid For Kodak Gallery Assets

4/25/2012 01:50:11 PM Eastern

Redwood City, Calif. - Online photo services resources Shutterfly said Wednesday it was the
winning bidder for Eastman Kodak's Kodak Gallery assets at $23.8 million.

There were no competing bids for Kodak's competing online photo
printing operation, the company reported.

The acquisition must await final approval by the bankruptcy court,
but both Shutterfly and Kodak expect a prompt closing of the acquisition, the
companies said in a statement.

Once completed, Shutterfly will work with Kodak to transfer Kodak Gallery's U.S. and Canadian
customers and images onto the Shutterfly platform.

"I'm excited to welcome Kodak Gallery's customers to Shutterfly
and look forward to working with the Kodak team to provide a smooth transition
for their customers and offering them industry-leading products and customer
service that will enhance the way they share and preserve everyday memories," stated
Jeffrey Housenbold, Shutterfly CEO and president. "Our acquisition of Kodak
Gallery is a perfect example of the consolidation that we believe will play an
important role in helping Shutterfly solidify our leadership position in the
social expression and personal publishing category.

"Moving forward, we will continue to expand our market position
through organic growth and disciplined acquisitions that leverage our scale and
scope economies, vertical integration, solid balance sheet and profitable
business model."