Strategic Partnership

Bellsouth Corp
12 July 2000

BellSouth Media Contacts:  Rich Jeffers             Stephanie Cartee
                           404/927-7430             404/880-5269
                           [e-mail]   [e-mail]

Snapfish Media Contacts:   Kristen McEntire         Margit Wennmachers
                           415/820-3890             415/392-8282
                           [e-mail]    [e-mail]


              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
(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(R)
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 
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 $14.9 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 www.bellsouth.net for more
information.