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Federal District Judge Acts to Protect Amazon.com's Patented 1-Click(R) Technology; Bars Online Competitor from Infringing on It

SEATTLE--Dec. 2, 1999--A federal district judge has granted leading online retailer Amazon.com a preliminary injunction protecting its patented 1-Click(R) technology and barring an online competitor from copying it.

U.S. District Court Judge Marsha J. Pechman's preliminary injunction, issued late Wednesday, bars barnesandnoble.com from using its copycat version of 1-Click(R) technology while the lawsuit is pending. Amazon.com (www.amazon.com) filed suit Oct. 20, saying the defendant had illegally copied Amazon.com's innovative, patented 1-Click(R) technology, which makes online shopping as easy as a click of the mouse button.

First made available to Amazon.com customers in September 1997, the 1-Click(R) feature securely stores billing and shipping information so that returning customers need only click their mouse once, without re-entering or re-confirming that information, to purchase selected items conveniently. In recognition of the innovative and unique nature of the 1-Click(R) technology, the U.S. Patent Office awarded Patent No. 5,960,411 to Amazon.com on September 28, 1999.

"We're pleased that Judge Pechman recognized the innovation underlying our 1-Click feature," said Jeff Bezos, Amazon.com founder and CEO. "The patent system is designed to encourage innovation on behalf of customers, and in 1997, this was a significant step forward for online shoppers that required thousands of hours of effort."

About Amazon.com, Inc.

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 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 13 million customers, and with Amazon.com Payments, any seller can accept credit card transactions, avoiding the hassles of offline payments.

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 operates two international Web sites: www.amazon.co.uk in the United Kingdom and www.amazon.de in Germany. Amazon.com also operates PlanetAll (www.planetall.com), a Web-based address book, calendar, and reminder service. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 150,000 movies and entertainment programs and 500,000 cast and crewmembers dating from the birth of film in 1892 to the present. Amazon.com also operates Amazon.com LiveBid Auctions (http://livebid.amazon.com), the leading provider of live-event auctions on the Internet.

Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: 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; and Gear.com, which offers brand name sporting goods at prices from 20% to 90% off retail, at www.gear.com. Amazon.com also has a minority interest in Della & James, which brings together leading retailers with gift registry, expert advice, and personalized gift suggestions to help everyone give better gifts, at www.della.com.

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risk of distribution center expansion, risks related to fourth quarter, risks of system interruption, management of potential growth, 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, 1998 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 1999, June 30, 1999 and September 30, 1999.

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