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Amazon.com and America Online Announce Extended Advertising and Promotional Alliance

SEATTLE and DULLES, Va.--Aug. 29, 2000--

Citing Successful Performance, the Companies Extend Their Previous Agreement, Making AOL Amazon.com's Largest Online Marketing Partner

Amazon.com's Wide Category Selection to Be Available Across Several AOL Brands, Making Shopping Amazon.com Even Easier for Online Consumers

Leading online retailer Amazon.com (www.amazon.com) and America Online, Inc. (NYSE: AOL), the world's leading interactive services company, today announced a promotional alliance under which Amazon.com's broad selection of products will be available across several America Online, Inc. brands.

This agreement extends the companies' prior marketing alliance, established in 1997. The alliance, an effective way of introducing customers to Amazon.com, brought new shopping choices to millions of AOL.COM and Netscape Netcenter users; this new agreement builds on that success and makes America Online, Inc. Amazon.com's largest online partner.

Bringing consumers the easiest, most convenient electronic commerce experience is a hallmark of both Amazon.com and AOL. Through this extended alliance, Amazon.com will be widely available across AOL.COM, Netscape Netcenter and CompuServe, enabling users of these brands to readily access Amazon.com's vast selection of products and services, including electronics, kitchen products, tools, toys, books, music, DVDs and more. The agreement will also make it more convenient to order-and pre-order-extremely popular items such as new digital cameras and titles such as Harry Potter and the Goblet of Fire.

"We want to make shopping as easy as possible for our customers," said Jeff Bezos, founder and CEO of Amazon.com. "We're happy to extend our alliance with AOL, a company that shares our vision for electronic commerce and makes it even more convenient for people to shop Amazon.com."

Bob Pittman, President and Chief Operating Officer, America Online, said: "Amazon.com is one of the best-known online retailers in the world, and I'm pleased to extend a relationship that has clearly been successful for both of us over the past several years. Amazon.com offers exactly the kind of quality, selection and customer service that AOL.COM and Netscape visitors have come to know and trust, and by extending these relationships and expanding them to include

CompuServe, this new alliance gives consumers more reason than ever to shop online with these America Online, Inc. brands."

About America Online, Inc.

Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services. America Online, Inc. operates: America Online, with more than 23 million members, and CompuServe, with more than 2.8 million members, the company's two worldwide Internet services; several leading Internet brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Netscape Netcenter and Communicator browsers; AOL Moviefone, the nation's No.1 movie listing guide and ticketing service; and Spinner.com and NullSoft's Winamp, leaders in Internet music. Through its strategic alliance with Sun Microsystems, the company develops and offers easy-to-deploy; end-to-end and enterprise solutions for companies operating in the Net Economy.

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 seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online. Amazon.com lists more than 18 million unique items in categories including books, CDs, toys, electronics, videos, DVDs, tools and hardware, lawn and patio items, kitchen products, software, and video games. Through Amazon.com zShops, any business or individual can sell virtually anything to Amazon.com's more than 23 million customers, and with Amazon.com Payments, sellers 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 operates three international Web sites: www.amazon.fr, 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; 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; 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 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 WeddingChannel.com, which brings together leading retailers with gift registry, expert advice and personalized gift suggestions to help everyone give and receive the right wedding gifts, at www.weddingchannel.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 within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements 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, strategic alliances and the Amazon Commerce Network. 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, and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2000, and June 30, 2000.


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