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Amazon.com Launches New Health and Beauty Store

SEATTLE--April 17, 2000--

Provides Amazon.com Customers With Convenient, One-stop Access to drugstore.com Health and Beauty Products, Information, and Services

Leading online retailer Amazon.com (Nasdaq:AMZN) today launched its new Health & Beauty store, providing a direct gateway to drugstore.com (Nasdaq:DSCM).

Today's news follows the January 24, 2000 joint announcement that the companies had entered into a strategic alliance to create an integrated Health & Beauty tab, located on the Amazon.com Web site.

"We are always looking for ways to improve the Amazon.com shopping experience. We want our customers to come to us to find anything and everything that they might want to buy online," said Jeff Bezos, founder and CEO of Amazon.com. "This new store provides our 17 million customers with a convenient link to a wealth of health and beauty products, information, and services from drugstore.com."

Now when shoppers go to the Amazon.com home page, they can click the Health & Beauty tab and enter the drugstore.com online storefront. This one-stop shopping means convenient access to drugstore.com's more than 20,000 health and beauty products, useful content and buying guides, and full-service pharmacy. Amazon.com shoppers can navigate throughout the drugstore.com site with an ever-present "Return to Amazon.com" link to send them rapidly and easily back to the Amazon.com home page. drugstore.com is the first Amazon.com partner to be featured as an integrated part of Amazon.com's navigational structure.

"Today's launch of the Health & Beauty store on Amazon.com is a big win for our customers," said Peter Neupert, president and CEO of drugstore.com. "By opening our store on the Amazon.com site, we're making it easier and more convenient for customers to shop for health and beauty products while they're shopping at Amazon.com."

About Amazon.com

Amazon.com (Amazon.com, Inc., and its subsidiaries) is the Internet's No. 1 music, No. 1 DVD and video, and No. 1 book retailer. Amazon.com (Nasdaq:AMZN) opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com lists more than 18 million unique items in categories including books, CDs, toys, electronics, videos, DVDs, home improvement products, software, and video games. Through Amazon.com zShops, any business or individual can sell virtually anything to Amazon.com's more than 17 million customers, and with Amazon.com Payments, any seller can accept credit card transactions, avoiding the hassles of offline payments. The company also participates in sothebys.amazon.com, the leading auction site for guaranteed art, jewelry, and collectibles, at www.sothebys.amazon.com.

Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. Amazon.com's All Product Search scours the Web to help customers find merchandise that is not available at Amazon.com, Amazon.com Auctions, or Amazon.com zShops, making Amazon.com the shopping destination to find anything. Amazon.com Anywhere is the leader in mobile e-commerce, providing access from anywhere in the world to Amazon.com through hand-held wireless Internet devices that use the Wireless Application Protocol (www.amazon.com/phone/) and on personal digital assistants (PDAs).

Amazon.com operates two international Web sites: www.amazon.co.uk and www.amazon.de. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 220,000 movies and entertainment programs and 800,000 cast and crew members dating from the birth of film in 1892 to 2003.

Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: Greenlight.com, the only company that offers car buyers the control of auto purchasing online with ongoing service and support from local dealerships, at www.greenlight.com; living.com, the leading online home products and services retailer, at www.living.com; drugstore.com, an online retail and information source for health, beauty, wellness, personal care and pharmacy, at www.drugstore.com; Pets.com, the online leader for pet products, expert information, and services, at www.pets.com; HomeGrocer.com, the first fully integrated Internet grocery-shopping and home-delivery service--with operations in Seattle; Portland, Oregon; and Southern California--at www.homegrocer.com; Gear.com, which offers brand-name sporting goods at prices from 20 to 90 percent off retail, at www.gear.com; and Ashford.com, the leading Internet retailer of luxury and premium products and the Web's No. 1 retailer of watches and jewelry, at www.ashford.com; Audible, Inc., the leader in Internet-delivered spoken audio for PC-based listening or playback on AudibleReady(TM) portable digital audio devices, at www.audible.com; and eZiba.com, a leading online retailer of handcrafted products from around the world, at www.eziba.com.

Amazon.com also has a minority interest in Della.com, which brings together leading retailers with gift registry, expert advice, and personalized gift suggestions to help everyone give better gifts, at www.della.com; NextCard, Inc., considered the industry's leading issuer of consumer credit on the Internet, at www.nextcard.com; and Kozmo.com, the world's leading "e-mmediate" Internet-to-door delivery service, at www.kozmo.com.

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, anticipated losses, significant amount of indebtedness, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risk of distribution center expansion, risks related to fourth quarter performance, risks of system interruption, management of potential growth, inventory risks, risks related to auction and zShops services, risks related to fraud and Amazon.com Payments, and risks of new business areas, international expansion, business combinations, and strategic alliances. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1999.

About drugstore.com

drugstore.com(TM) (Nasdaq:DSCM) is a leading online drugstore and information site offering A Very Healthy Way to Shop(TM) for health, beauty, wellness, personal care, and pharmacy products. drugstore.com provides a convenient, private, and informative shopping experience that encourages consumers to purchase products essential to healthy, everyday living. drugstore.com offers thousands of brand-name personal health care products at competitive prices; a full-service, licensed mail pharmacy; and a wealth of health-related information, buying guides, and other tools designed to help consumers make informed purchasing decisions. Consumers can personalize their shopping experiences with shopping lists, e-mail reminders for replenishing regularly-used products, and private e-mail access to pharmacists and beauty experts for questions.

drugstore.com has been awarded the Verified Internet Pharmacy Practice Sites (VIPPS) certification by the National Association of Boards of Pharmacy (NABP) as a fully licensed facility exercising the best safe pharmacy practices in compliance with federal and state laws and regulations. drugstore.com has also been rated the top health category site by Forrester PowerRankings, which provides objective rankings of the leading e-commerce sites.

The company recently acquired Beauty.com, a leading site offering prestige cosmetic products and, in addition to Amazon.com, also has strategic relationships with Rite Aid Corporation (NYSE, PSE:RAD) and General Nutrition Companies.

drugstore.com and A Very Health Way to Shop are trademarks of drugstore.com, inc.


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