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Waterstone's and Amazon.co.uk Extend Strategic Alliance

LONDON, November 18 2003: Leading online retailer Amazon.co.uk (www.amazon.co.uk) and the UK's leading specialist bookseller Waterstone's (www.waterstones.co.uk) today announced an extension to their multi-year e-commerce agreement. Under the agreement Amazon.co.uk provides Waterstone's with an e-commerce solution of technology services, site content, product selection and customer service for the co-branded “Waterstone's working with Amazon.co.uk” web site. Amazon.co.uk acts as the seller of record, providing inventory, fulfilment and customer service for the site.

Waterstone's teamed up with Amazon.co.uk to re-launch www.waterstones.co.uk in October 2001. The site features Amazon.co.uk's vast books selection, low prices, editorial reviews, personalisation and recommendations technology and streamlined 1-Click® ordering. Waterstone's provides distinctive editorial content for the site, including book news and features, interviews with leading writers, regular columnists and store location and events information.

“We are pleased to extend our strategic alliance with Amazon.co.uk which provides our customers with the best that Waterstone's and Amazon has to offer”, said Lesley Miles, Marketing Director for Waterstone's. “This partnership has enabled us to offer customers our own unique features and content alongside Amazon.co.uk's industry leading online operations, fulfillment and after sales support”.

“Our continuing alliance with Waterstone's is great news for their customers,” said Robin Terrell, Managing Director at Amazon.co.uk. “We are committed to providing customers with the best possible online experience, through offering low prices, a vast book selection and a site that is quick and easy to use. We share Waterstone's passion for serving book lovers in the UK and we look forward to working with them further to build their online business”.

Terms of the agreement were not disclosed.

For further information please contact:

Rachel Silk – Amazon.co.uk on 020 8636 9252 / 07768 695759
Jo Marino – Waterstone's on 020 8996 4355 / 07802 458290

About Amazon.co.uk

Amazon.co.uk opened its virtual doors in October 1998, and strives to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. Amazon.co.uk and sellers list millions of new and used items in categories such as books, CDs, videos, DVDs, software titles, PC & video games, electronics & photo, kitchen & home and toys. Through Amazon Marketplace, zShops and Auctions any business or individual can sell virtually anything to Amazon.co.uk's millions of customers. Amazon.co.uk customers enjoy the benefits of industry-leading online-shopping technology such as secure credit-card payment; personalised recommendations; streamlined, 1-Click® ordering and hassle-free Bid-Click® auction bidding. Through Amazon Anywhere, Amazon.co.uk is also available on mobile phones with WAP technology; see www.amazon.co.uk/anywhere for details.

Amazon.com operates six websites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.ca. Amazon.co.uk is the trading name for Amazon.com International Sales, Inc., and Amazon.com International Auctions, Inc., which are both wholly owned subsidiaries of global online retailer Amazon.com, Inc. (NASDAQ: AMZN).

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, significant amount of indebtedness, competition, commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, foreign exchange rates, management of potential growth, system interruption, international expansion, consumer trends, inventory, fulfilment centre optimisation, limited operating history, government regulation and taxation, fraud and new business areas. More information about factors that 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, 2002, and all subsequent filings.

About Waterstone's

Part of HMV Group, Waterstone's first opened in Old Brompton Road, London in 1982 and is now the UK's leading specialist bookseller. Waterstone's now trades from 194 branches on high streets and shopping centres, and seven university campus branches in the UK, Republic of Ireland and Europe.

Focusing on depth of range and the expertise of its booksellers, Waterstone's branches aim to provide an enjoyable and welcoming environment in which to browse and buy books. Many branches offer seating areas and coffee shops to enhance the experience.


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