Press Release

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SEATTLE & BEIJING--(BUSINESS WIRE)--Aug. 19, (Nasdaq:AMZN) today announced that it has entered into a definitive agreement to acquire Limited, a British Virgin Islands Company, which operates the Web sites -- and -- in cooperation with Chinese subsidiaries and affiliates. The Web sites are the largest online retailers of books, music and videos in China.

Founded in 2000, offers customers a wide selection of books, videos and DVDs, music, software, toys and gifts, among other products. Through this acquisition, will blend's expertise in serving the Chinese market with's experience as one of the world's leading online retailers. This combination will allow to improve its customer experience and grow its business.

"Becoming a part of the Amazon family is great news for our customers," said Lin Shuixing, president of Limited. " has always put the customer at the center of everything it does, and we look forward to making even better for our customers in the time to come."

"This transaction is a recognition of Joyo's accomplishments over the past four years," said Lei Jun, founder and chairman of and president of Kingsoft Holdings Limited, the largest shareholder of "I am confident that's expertise in global e-commerce, in combination with Joyo's entrepreneurial management team and employees, will bring the development of e-commerce and online customer experience in China to a new level." will become's seventh global Web site.'s entry into China will allow it to service the more than 80 million consumers already online in China.(1)

"We are very pleased to be entering the Chinese market with," said Jeff Bezos, founder and CEO of "In a relatively short time, has established itself as the leading online destination for books, music and videos in China, and we're happy to be part of one of the world's most dynamic markets."

"It is extremely gratifying to have a world-class company like recognize the value of's opportunity in China," said Liu Chuanzhi, chairman of Legend Capital, one of the largest shareholders of "We look forward to watching become even more successful as part of"

The transaction is valued at approximately $75 million, including approximately $72 million in cash and the assumption of employee stock options. The transaction is expected to close in the third quarter 2004, although it is subject to customary closing conditions. does not expect the acquisition to have a significant impact on net sales or operating profit in third quarter 2004 or fiscal 2004.

About, a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, kids and baby, and home and garden.

About was founded in May 2000 and today is the largest online book, music, video and DVD store in China. In addition, it sells IT software products, health and beauty products, as well as gifts and toys online.

Forward-Looking Statement of

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 the regulation of Internet and retail companies in China, the enforceability of contracts necessary for the management and control of, the reaction of customers and suppliers of to the transaction, political and economic conditions in China, potential future losses, competition, retention of key personnel, disruption of our ongoing business, seasonality, potential fluctuations in operating results and rate of growth, foreign exchange rates, management of potential growth, system interruption, consumer trends, inventory, fulfillment center optimization, limited operating history, other government regulation and taxation, fraud, and new business areas. More information about factors that potentially could affect's financial results is included in's filings with the Securities and Exchange Commission, including its Current Report on Form 8-K filed concurrently with this announcement and its Annual Report on Form 10-K for the year ended December 31, 2003, and all subsequent filings.

(1) Source: China Internet Network Information Center, July 2004

    CONTACT: Media Relations
             Patty Smith, 206-266-7180
             Vivian Wu, 86-139-1120-2949


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