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February 24, 2002 6:00 AM PST

HP to link cameras to Shutterfly

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Hewlett-Packard on Sunday announced several new efforts to push into the photofinishing side of digital photography.

The computing giant unveiled an alliance with online photo service Shutterfly, which provides services that allow users to store, share and order prints of photos.

As part of the agreement, Shutterfly will be included in HP's Instant Share service, which HP intends to include with most of its digital cameras, beginning with the Photosmart 812 model to be released in April.

Instant Share will let the photographer designate how a photo should be handled once the camera is connected to a PC. Options will include sending it to someone through e-mail; printing it; or sending it to an online photo service, including Shutterfly. The chosen option will be carried out automatically the next time the camera is connected to a PC. Shutterfly will be the default option for ordering prints via the Web.

The deal comes at an opportune time for Shutterfly, as online photo services are struggling to stay in business. Zing.com went out of business in June, Intel closed its GatherRound photo site in October, and PhotoPoint has left users in limbo since shutting down operations in January.

HP also unveiled the first fruits of its Phogenix partnership with photography giant Eastman Kodak. The Phogenix Imaging DFX system is a retail photo processing and printing system based on HP's inkjet printing technology. The system will allow retailers, such as one-hour photofinishers, to use the same equipment to produce prints and specialty items from digital files and traditional film.

Lastly, HP announced the Memories Disc Creator, software for storing digital photos on recordable CDs, which can be viewed on a PC, or on television sets through a DVD player.

"The value is really that you move digital photography into the living room...getting away from the PC," said Mary Peery, vice president of HP's Digital Imaging business. "It's all focused on trying to provide a really easy-use model for the consumer."

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