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BellSouth and Snapfish Ink Strategic Partnership and Introduce Cutting-Edge Service For Customers

Customers Connect and Create Something with Snapfish Online Photography Service

Atlanta - July 11, 2000 - In another step to unleash the power of e-Interaction for its customers, BellSouth today announced a partnership with Snapfish.com Corporation, an end-to-end online photo development service. BellSouth and Snapfish have co-branded the Snapfish service and now offer BellSouth customers the ability to use all Snapfish services in conjunction with existing BellSouth Internet Services offerings. The company also announced it has taken an equity stake in Snapfish.

Following closely on the heels of BellSouth's launch of its national portal, BellSouth-MyWay, this agreement represents a major emphasis on providing value-added Internet offerings to BellSouth's current and future customers. Using the new portal, BellSouth customers may log onto BellSouth-MyWay (http://bellsouth.myway.com) or visit a BellSouth-Snapfish co-branded site (http://www.bellsouthpictures.com) to gain free access to Snapfish photo development services.

"With this venture, we are in a position to enhance every one of our customers' online experiences," said Laura Reid, director of marketing, BellSouth Consumer Internet Services. "With BellSouth-Snapfish, we provide an avenue for our customers to connect and create something with friends and family by sharing their photos. This is the type of functionality customers have been asking for to use the Internet in a meaningful way in their daily lives."

"Strategic partnerships with companies like BellSouth, Kodak and Compaq enable Snapfish to offer its unique free photo services to millions of targeted customers," said Suneet Wadhwa, vice president of business development and co-founder of Snapfish. "BellSouth now offers its customers free developing, free online sharing and free prints for all its images, a service that makes BellSouth-MyWay a complete destination for families who use the Internet to run efficient households and keep families connected."

Snapfish offers developing, printing, digitizing, and online storing and sharing of users' photographs - all for free. Unlike other offerings, the Snapfish service is for everyone, users of traditional 35mm film cameras as well as those who own digital cameras. For free 35mm film developing, customers simply send their roll(s) of film in a pre-addressed, postage paid envelope provided by Snapfish where it is developed, digitized and posted on the Internet in a private, online album . A single set of 4x6 prints with original negatives is also mailed back to the customer. The customer is only responsible for $1.69 per roll shipping and handling.

Digital camera users also have the capability to upload their images to the Snapfish site providing a one-stop solution for online storage, sharing and printing. For both 35mm developing and digital photography, Snapfish stores customers' images online.

Snapfish provides free online photo sharing for friends and family, allowing them to view the images and to order reprints and enlargements. A customer simply selects the album to share, enters a friend's e-mail address, and the friend is invited to view the photos in their own secure, password-protected "shoebox." Only those with whom a customer has shared their photos will be able to see them online.

As BellSouth Internet Service continues to enhance its offerings with partnerships like Snapfish, PowWow Instant Messaging by Tribal Voice and BellSouth-MyWay, the company has also increased its service footprint to reach 102 markets in the BellSouth region. The service is now available to more than 83 percent of customers in BellSouth's nine-state region.

The company has also lowered its price for dial-up Internet access. BellSouth Internet Service is now available at a reduced rate of $17.95/month for unlimited service, $7.95/month for 10 hours plus $2.00 for each additional hour, and just $12.95/month for unlimited service when packaged with the BellSouth® Complete Choice plan. The reduced rate is available to all BellSouth Internet Service subscribers through Aug. 31, 2000.

"BellSouth continues to make great strides to penetrate the Internet space by continuously enhancing our customers' online experience and the power of e-Interaction," said Alice McCall, vice president, BellSouth Consumer Strategy and Marketing. "BellSouth customers can now connect to the Internet at a reduced cost and create special moments with family and friends."

About Snapfish.com
Snapfish.com is positioned to dramatically redefine the consumer photography market by providing the first complete photo service that offers film developing, printing, storing, and sharing online, all for free. With consumer photography representing a $14.90 billion market in the U.S. alone, Snapfish is poised to provide consumers with breakthrough benefits in online photography and reinvent an enormous consumer category in the process. The company is privately held and backed by Mayfield Fund, @Ventures, the affiliated venture capital arm of CMGI, Inc., Kodak, Trans Cosmos, Audax Ventures, BellSouth, Compaq, and additional private investors. The company is based in San Francisco, California.

About BellSouth
BellSouth (NYSE: BLS) is a $25 billion communications services company. It provides telecommunications services, Internet, data and e-commerce applications, wireless communications, entertainment services, and online and directory advertising to nearly 39 million customers in 20 countries worldwide. BellSouth Internet Service was recently named to InternetWeek's listing of the Top 100 Internet companies. Customers may visit http://www.bellsouth.net for more information.

 
 
 
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