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Amazon.com and CustomFlix Launch the Media Gateway Program; Program Digitizes and Unlocks the World's Video Media

LAS VEGAS--(BUSINESS WIRE)--April 24, 2006--Leading online retailer Amazon.com, Inc. (NASDAQ: AMZN) and CustomFlix Labs, Inc., a wholly owned subsidiary of Amazon.com, Inc., today announced the introduction of the Media Gateway program, a worldwide initiative to digitize and sell previously unavailable video content on Amazon.com. At the heart of the Media Gateway program is the CustomFlix Future-Proof Archive(TM) service, a secure storage and reformatting platform designed to provide content owners the flexibility to repurpose content into multiple future digital formats. The Future-Proof Archive service currently supports DVD-Video, with additional formats to be announced.

The Media Gateway program enables content owners to unlock the hundreds of thousands of hours of content trapped in analog tape formats making it immediately available for sale as physical DVDs, and enabling the content for future inventory-free digital formats. For a limited time, CustomFlix will offer digitization and DVD authoring of qualified content with no up-front investment by the content provider. Amazon.com will then make this content available for sale to tens of millions of Amazon customers and CustomFlix will manufacture DVDs on demand as customers place orders.

"The Media Gateway program isn't just about converting tapes into digital masters and DVDs - it's about a whole new way to manage media distribution," said Dana LoPiccolo-Giles, co-founder and Managing Director of CustomFlix. "The real innovation lies in the Future-Proof Archive service. We're digitizing the world's content and storing it in virtually lossless quality, then helping content owners repurpose and deliver their programming in whatever current or future format they select. Once content is added to our Future Proof-Archive service, it will never go out of stock or deteriorate in some antiquated format. Content providers can immediately begin offering their entire catalog for sale to Amazon.com customers and additionally use our service to manufacture and distribute DVDs through other channels. With the Media Gateway program, we are offering maximum flexibility in an uncertain digital media environment."

The scope of the Media Gateway program goes beyond the current offering of standard definition DVD-Video. CustomFlix also announced that the Future-Proof Archive service will support the major high definition DVD formats in the future. Additional format support will be announced in the coming months.

The Media Gateway program is already in use by many high-profile content providers. Major networks, including NBC Universal, A&E Home Video, and PBS (Public Broadcasting Service), are using the Media Gateway program for digitization and distribution today, with more partners and content being added on a continual basis.

"Amazon.com and CustomFlix are creating a real opportunity for the media industry," said Greg Greeley, Vice President of Worldwide Media at Amazon.com. "A vast amount of video content is currently languishing in unusable tape formats, unavailable to viewing audiences, due to the content owner's concerns about expensive up front investments and the uncertainty around future digital formats. The Media Gateway program helps them unlock this opportunity. Content providers can now leverage this program to make their entire library of content immediately available to Amazon.com customers with minimal up front cost. CustomFlix and Amazon.com have already given our retail customers access to thousands of programs they couldn't previously buy. With the introduction of the Media Gateway program we look forward to offering customers the ability to find, discover, and buy a vastly expanded selection of DVDs, all available for shipment within 24 hours, and eligible for Amazon Prime and free Super Saver Shipping."

For more information, pricing and details on the Media Gateway program, please visit www.CustomFlix.com/MediaGateway or www.amazon.com/mediagateway

About CustomFlix

CustomFlix Labs, Inc., a wholly owned subsidiary of Amazon.com, Inc., is the leader in DVD on Demand services for enterprise and independent media content owners. CustomFlix was founded in 2002 with the mission of profitably connecting content owners and filmmakers to a worldwide audience. Today, CustomFlix offers professional digitization into the Future-Proof Archive service, as well as inventory-free physical media distribution via DVD on Demand, adding thousands of hours of media content to Earth's Biggest Selection on Amazon.com.

About Amazon.com

Amazon.com, Inc., (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 and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, 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.

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 competition, management of growth, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, significant amount of indebtedness, inventory, limited operating history, government regulation and taxation, payments, fraud, consumer trends, 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, 2005, and all subsequent filings.

CONTACT:
Media:
For CustomFlix
Stacey Hurwitz, 831-457-5925
Stacey@CustomFlix.com
or
For Amazon.com
Jani Strand, 206-266-2824
jani@amazon.com

SOURCE: Amazon.com, Inc.


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