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CustomFlix Announces On-Demand Solution to the High Definition DVD Format Wars; Amazon.com Subsidiary to Support HD-DVD, Blu-Ray and WMV HD

LAS VEGAS--(BUSINESS WIRE)--April 24, 2006--CustomFlix Labs, Inc., a wholly owned subsidiary of leading online retailer Amazon.com, Inc. (NASDAQ: AMZN), today announced upcoming support for all three of the industry's major high definition formats: HD-DVD, Blu-ray, and Windows Media Video High Definition DVD (WMV-HD DVD). This multi-format support is enabled by the CustomFlix Future-Proof Archive(TM) service, a proprietary storage and repurposing platform designed to allow deployment of digitized files in future formats, giving content providers the flexibility and convenience of distributing content in a format the customers choose. CustomFlix also announced that it has teamed up with HDNet to offer a wide range of programs in multiple HD formats on Amazon.com.

"By supporting all of the high definition formats, CustomFlix enables content providers to take a format-neutral position and simply let customers decide which format they prefer," said Dana LoPiccolo-Giles, Co-founder and Managing Director of CustomFlix. "Many content providers are taking a cautious approach to HD due to the high costs of pressing discs in multiple high definition formats, plus they risk inventory obsolescence once a winning format emerges. CustomFlix offers a format-agnostic solution to eliminate that risk and accelerate HD release schedules."

As proof of this multi-format approach speeding up the release of HD content, CustomFlix announced today that it is teaming up with HDNet to digitize hundreds of HD titles for sale on Amazon.com. This initiative will dramatically increase the number of HD titles available in the U.S. market segment this year. The first HDNet WMV-HD DVD titles produced under this agreement are available now at Amazon.com, with Blu-ray and HD-DVD coming in the near future.

"As the first national television network to broadcast all of our programming in the highest quality format of High Definition TV, HDNet has a deep commitment to helping HD become the new viewing standard both in broadcast and on DVD," said Mark Cuban, President and Co-founder of HDNet. "Unfortunately, the disparate HD formats will make establishing a single standard difficult and result in customer confusion. CustomFlix allows customers interested in HD content to simply choose whatever format they want. DVD on Demand was an easy decision for HDNet because discs are produced as customers order, so there won't be any wasted inventory depending on which format becomes more popular for a specific title."

Amazon.com currently offers a broad and growing selection of high definition televisions, players, and DVDs with an HD-DVD store at www.amazon.com/hddvd, a Blu-ray store at www.amazon.com/bluray, and sells numerous WMV-HD DVDs.

About HDNet

Co-founded by Mark Cuban and General Manager Philip Garvin, HDNet (www.hd.net) provides viewers with exciting and topical news, sports, music and entertainment programming. The 24-hour all-high definition network features up to 20 hours of new original programming each week, all produced in the highest quality 1080i HDTV format - more original high-definition programming than any other network. HDNet news and entertainment programming includes original series "HDNet World Report," "Face 2 Face with Roy Firestone," "Sound Off with Matt Pinfield," "Higher Definition," "Deadline!," "HDNet Concert Series," and "True Music." The network also features acclaimed acquired programs such as "Smallville," "Dead Like Me," and "Joan of Arcadia." Live sports productions include National Hockey League and Major League Soccer games and NASCAR Grand National Division auto racing. HDNet Movies, the company's second network, is the exclusive home of day and date movie releases including the Academy Award nominated "Enron: The Smartest Guys in the Room," "The War Within," and "Bubble." HDNet Movies also features a wide selection of major studio theatrical releases - all uncut, unedited, and appearing in their original aspect ratio - as well as features produced and finished in true 1080i high-definition. The HDNet networks are available on Adelphia, Bright House, Charter, DIRECTV, DISH Network, Insight, Mediacom, Time Warner Cable and more than 40 NCTC cable affiliate companies.

    For more information visit www.hd.net.

    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 HDNet
Jeff Cuban, 214-651-8291
jcuban@hd.net
or
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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