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Amazon.com's Tenth Holiday Season is Best Ever; Consumer Electronics is Biggest Category for the First Time in Company's History

SEATTLE--(BUSINESS WIRE)--Dec. 27, 2004--Amazon.com, Inc. (NASDAQ:AMZN) today announced it has finished its busiest holiday season ever during which time it set a single-day record with more than 2.8 million units ordered, or 32 items per second, worldwide. Additionally, even while its books business set a new Thanksgiving Weekend record, consumer electronics sales surpassed book sales on www.amazon.com that weekend and was Amazon's largest sales category for the first time.

"We are extremely grateful to our customers," said Jeff Bezos, founder and CEO of Amazon.com. "On behalf of Amazon.com employees around the globe, we wish everyone happy holidays and best wishes for the coming year."

Worldwide 2004 Holiday Facts

(includes www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp, www.amazon.ca, and www.joyo.com).

    --  On the peak day this season, Amazon's worldwide fulfillment
        network shipped over two million units.

    --  Amazon.com shipped to 217 countries and delivered over 100,000
        shipments to overseas US military personnel at APO/FPO
        addresses.

    --  More than half a million gift certificates were ordered
        between November 25th and December 24th 2004.

    --  Amazon.com shipped more than 99 percent of orders in time to
        meet holiday deadlines worldwide.

    --  One of Amazon.com's most remote shipments was the CD "The
        Mountain" (Del McCoury and Steve Earle) to Arctic Village,
        Alaska.

    Amazon.com 2004 Holiday Facts (www.amazon.com only)

    --  The "Holiday Shoppers" feature, which tracked the estimated
        number of visitors at Amazon.com during the prior 60 minutes,
        topped 700,000.

    --  The Jewelry & Watches store sold more than one watch per
        minute since November 25.

    --  The Music store broke a new sales record, selling more than
        one million units per week for two consecutive weeks in
        December.

    --  The DVD category capped off the year by breaking the one week
        order record (for the week ending December 12), and by setting
        a single title one day order record of over 13,000 units of
        "Lord of the Rings, Return of the King Extended Edition" on
        December 14.

    --  The last order placed on December 23rd in time for Christmas
        delivery contained "Is This It" by The Strokes and
        Yu-Gi-Oh!-The Movie. It was delivered to Sammamish, Washington
        on December 24th.

    --  Compared with 2003, the standard shipping deadline was
        extended two days from December 18 to December 20.

Amazon.com's hot holiday sellers November 25, 2004 through December 23, 2004 (based on units ordered)

    --  In Home & Garden, kitchen items topped the list this year. The
        Black & Decker Lids Off Jar Opener, the Hamilton Beach Waffle
        Stix Waffle Maker and Riedel O Cabernet/Merlot Wine Tumblers
        were the three top sellers in the store. Cookware was also
        very popular, with classic pans from Calphalon, the Casa Moda
        "S'mores" Maker, and George Foreman grills being among the
        best sellers.

    --  In Gourmet Food, Harry & David's Christmas Classic Tower of
        Treats and the Ghirardelli Tower were again the most popular
        gift baskets. See's Candies Gold Truffle Box and Godiva's
        Holiday Gold Coin Bag were top selling chocolate gifts. Other
        popular items included the Kona Coffee Sampler and Cranberry
        Fool unique cranberry sauce.

    --  In Sports & Outdoors, flashlights, poker chips and exercise
        equipment (including full-sized treadmills, home gyms, yoga
        and pilates gear, and the Ab Lounge 2) were the hottest items
        this season. The Flybar 1200, a high-tech pogo stick sold
        exclusively on Amazon.com, was so popular that Amazon.com
        fulfillment centers scrambled to keep up with customer demand.
        Other areas that did exceedingly well were golf, fan gear for
        every sport, and, surprisingly, SCUBA and snorkel gear.

    --  Top sellers in Computer & Video Games were Halo 2 (Xbox),
        Grand Theft Auto: San Andreas (Playstation 2) and the
        Incredibles (Gameboy Advance). The Sims 2 and Half-Life 2 were
        the top selling games for PCs.

    --  In Health & Personal Care, the ever popular nose hair
        groomers, shavers and electric toothbrushes were the top
        sellers. A surprising top seller this holiday was the new
        Philips HeartStart Home Defibrillator, which is the first
        defibrillator cleared for over-the-counter sale.

    --  Tools & Hardware top sellers were the Black & Decker 25' Auto
        Tape Measure, the Strait-Line Intersect Laser Level, the
        Porter-Cable Finish & Brad Nailer Combo Kit, and the Toro
        Electric Power Shovel Plus.

    --  The top selling books this holiday season were "America (the
        book): A Citizen's Guide to Democracy Inaction" by Jon
        Stewart, "The Five People You Meet in Heaven" by Mitch Albom -
        which also topped the list in 2003, and "Chronicles Vol. 1" by
        Bob Dylan.

    --  In Music, the hottest sellers were U2's "How to Dismantle an
        Atom Bomb," Clay Aiken's "Merry Christmas with Love,"
        Nirvana's box set "With the Lights Out," Allison Krauss and
        Union Station's "Lonely Runs Both Ways," Rod Stewart's
        "Stardust...The Great American Songbook Volume III," Green
        Day's "American Idiot," Josh Groban's "Live at the Greek," and
        Ray Charles' "Genius Loves Company."

    --  In the DVD/Video category, it was the season of multi-disc
        sets as the "Lord of the Rings: Return of the King Extended
        Edition," "Seinfeld" Seasons 1-3 and the "Star Wars Trilogy"
        led the top sellers. This holiday season also proved that
        there is strength in sequels as "Shrek 2," "Spider-Man 2," and
        "Harry Potter and the Prisoner of Azkaban" all finished in the
        top 10.

    --  In Beauty, the most popular products this season were samplers
        from Yves Rocher and Caswell Massey, Curious Britney Spears
        perfume, and Philosophy's The Gingerbread House. LUSH Bath
        Bombs have also been a regular favorite.

    --  The top selling electronics products this year were the Apple
        20GB iPod, the Apple 4GB Silver Mini iPod, the Phillips DVP642
        DivX Progressive Scan DVD player, the iTunes $15 prepaid Card
        and the Canon PowerShot SD 110 3MP Digital Elph camera.

    --  Diamonds of all sizes were popular in earrings, pendants and
        bracelets. Other top selling jewelry items include Sterling
        Silver Blue Topaz Earrings, Paris Hilton's Sterling Silver and
        Swarovski Crystal Heart Pendant on a Satin Cord (16 inch),
        Paris Hilton's Sterling Silver and Swarovski Crystal Star Hoop
        Earrings, and a Floating Heart Pendant with Diamond.

    --  In apparel, comfort was king. The Ugg(R) Australia Classic
        Short Boot, Land's End Women's Regular Flex Fleece Clog
        Slippers, and the Carole Hochman Fleece Pajama Set were all
        hot sellers.

    About Amazon.com

Amazon.com (NASDAQ:AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com 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. Amazon.com 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, toys and baby, and home and garden.

Amazon.com and its affiliates operate seven Web sites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp, www.amazon.ca, and www.joyo.com.

As used herein, "Amazon.com," "we," "our" and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Forward Looking Statement

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, management of growth, potential fluctuations in operating results, fulfillment center optimization, seasonality, commercial agreements, acquisitions, and strategic transactions, foreign exchange rates, system interruption, international expansion, consumer trends, inventory, limited operating history, government regulation and taxation, fraud, and new business areas. 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, 2003, and all subsequent filings.


    CONTACT: Amazon.com
             Craig Berman, 206-266-7180

    SOURCE: Amazon.com, Inc.
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