The New Store Offers over 14,000 Dry Grocery Products All Shipped Free via Super Saver Shipping or Amazon Prime

SEATTLE--(BUSINESS WIRE)--July 17, 2006--Amazon.com (Nasdaq:AMZN) today announced the launch of its new Grocery store (www.amazon.com/grocery) which offers customers great selection, competitive pricing, and free shipping. The Amazon.com Grocery store, offering over 1,200 brands such as Kashi, Nestle, Kellogg, Kraft, Seventh Generation and Procter and Gamble, brings together a large, in-depth selection of dry Grocery products the Amazon way -- one convenient destination, easy navigation, a single shopping cart, and candid customer reviews. All items are eligible for Free Super Saver Shipping and Amazon Prime.

In addition, the Grocery store has a huge selection of natural and organic products, which include brands such as Annie's Homegrown, Wild Oats, Newman's Own, Bear Naked and Nature's Gate, to name a few. Currently about half the selection is natural and organic.

As an introductory offer, shoppers will receive a $10 instant rebate on purchases of $49 or more in the Grocery store. For more details, visit www.amazon.com/grocery.

"When we asked customers what they wanted from a grocery store on Amazon.com, the answer was clear: 'great brands and products, at competitive prices, shipped free or via Amazon Prime.' We think we've met that challenge," said Doug Herrington, vice president of Amazon.com's Grocery store.

"I just wanted to let you know how delighted I am that you're offering groceries covered by Amazon Prime shipping. As a full-time employed mother of two, I have heavily relied on online shopping for everything ... Thank you so much for adding this!" -- Wendy N., Austin, TX

"GREAT GREAT GREAT -- Thank you so much" -- Kimberly, K., Duluth, MN

"I have been waiting my whole life for this!! To be able to order groceries and have them delivered to my door!!! This is a dream come true! Thank you so much!" -- Chimene H., Orlando, FL

With back-to-school right around the corner, parents can stock up on plenty of healthy treats and lunch food items for their kids such as Wild Oats Natural Trail Mix, Kettle Valley Fruit Snacks, or Wolfgang Puck's soups. And with the convenience of one-stop shopping, busy moms can also stock up on DVDs for the kids, their favorite tinted moisturizer and a wedge sandal for that summer barbecue, all on the same site.

The Amazon.com Grocery store launched in May 2006 in a beta (test) phase in order to gather input from customers to ensure the best possible customer experience. During this beta phase, the Grocery store is continually adding selection and testing different features.

Visitors to Amazon.com's Grocery store will discover deep selection and great prices in the following areas and much more:

• Baking Supplies
• Beverages (sports and energy drinks)
• Breakfast Food
• Boxed Meals and Side Dishes
• Coffee and Tea
• Condiments
• Dairy and Gluten Free
• Household Supplies (conventional and eco-friendly)
• Low Carb & Sugar Free
• Pasta, Beans, Grains & Rice
• Soups & Stocks
• Snacks, Cookies and Candy

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, Inc. 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.

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 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: Amazon.com Media Relations
Tracy Ogden, 206-266-7180
ogden@amazon.com

SOURCE: Amazon.com