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Amazon's E-Commerce Platform to Power Web Site of Leading British Bookseller

SEATTLE--July 25, 2001--

Strategic Alliance Brings Together the U.K.'s No. 1 Specialist

Bookseller with the U.K.'s Leading Online Retailer, the U.K. site of international online retailer, and Waterstone's, the U.K.'s leading specialist bookseller, have formed a strategic alliance.

Under the agreement announced today, Waterstone's online bookselling site will be relaunched, powered by Amazon's e-commerce platform. No financial terms of this alliance were disclosed.

A Waterstone's team will provide the distinctive editorial content for the new site, which has already established a loyal following., the U.K.'s third largest book retailer of any type and No. 1 online retailer, will be the seller of record, providing inventory, fulfillment, other content and customer service for the site.

The new site will be launched in autumn 2001 and will continue to feature store locations, promotions and events information. The site will further be promoted in Waterstone's physical stores.

"This partnership enables Waterstone's to offer our customers the best of both worlds -- outstanding book knowledge and content from the U.K.'s No. 1 bookseller, combined with's expertise in online operations, quality of fulfillment and after-sales support. We are delighted to be working with them," said Peter Mitchell, business development director for Waterstone's. "This is good news for Waterstone's and its customers."

" is committed to providing customers with the best possible shopping experience, and we are delighted to power and manage the new," said Steve Frazier, managing director of "We believe Waterstone's is a best-of-breed physical retailer and a company that shares our passion for serving book lovers in the U.K." has formed other recent alliances with leading physical and online companies, including Toys R Us, Borders and AOL, utilizing tailored elements of Amazon's powerful and innovative e-commerce technology platform. About today offers more than 2.5 million books, CDs, DVDs, videos, software titles, PC and video games and electronics, hosts online auctions and provides a complete online storefront for individual merchants through its zShops. customers enjoy the benefits of industry-leading online shopping technology such as secure credit card payment, personalized recommendations, streamlined 1-Click ordering and hassle-free Bid-Click auction bidding. Through Amazon Anywhere, also is available on mobile phones with WAP technology -- see for details. is the trading name for International Sales, Inc., and International Auctions, Inc., which are both wholly owned subsidiaries of, Inc. (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. seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. lists millions of unique items in categories such as electronics, kitchen and housewares, books, music, DVDs, videos, camera and photo items, toys, software, computer and video games, tools and hardware, outdoor living and wireless products. Through zShops, any business or individual can sell virtually anything to's over 35 million cumulative customers, and with Payments, sellers can accept credit card transactions, avoiding the hassles of offline payments. operates four international Web sites:,, and It also operates the Internet Movie Database (, the Web's comprehensive and authoritative source of information on more than 275,000 movies and entertainment titles and 1 million cast and crewmembers dating from the birth of film in 1891 to 2003.

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,'s anticipated losses, significant amount of indebtedness, competition, seasonality, potential fluctuations in operating results, management of potential growth, risks of system interruption, consumer trends, risk of fulfillment center optimization, inventory risks, limited operating history, risks related to fraud and Payments, and risks of new business areas, international expansion, business combinations, strategic alliances and strategic partnerships. More information about factors that potentially could affect's financial results is included in's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2000, and all subsequent Quarterly Reports on Form 10-Q. About Waterstone's

Waterstone's first opened in 1982 and is now the UK's leading specialist bookseller. Together with HMV music stores, Waterstone's is part of the HMV Media Group, formed in 1998. Waterstone's currently has physical retail outlets in the UK, Republic of Ireland and Europe. Customers can choose from an unparalleled range of books, and Waterstone's expert booksellers can provide recommendations and advice on every subject. Waterstone's flagship store in London's Piccadilly area is the biggest bookshop in Europe and opened in 1999. Waterstone's in Gower Street, London, is Europe's biggest academic bookshop.

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