|Amazon.com Announces Investment in and Strategic Alliance With Kozmo.com; Leading Online Retailer to Offer|
SEATTLE--(BUSINESS WIRE)--March 20, 2000--Leading online retailer Amazon.com (www.amazon.com) announced today that it has invested $60 million in Kozmo.com (www.kozmo.com), the leading "e-mmediate" Internet-to-door delivery service.
Also, in exchange for warrants to purchase additional shares in Kozmo.com, Amazon.com has reached a three-year strategic alliance with Kozmo.com. Under this new agreement, Amazon.com will begin offering a one-hour delivery option to its customers.
The one-hour delivery option will be launched at a later date. When the service is launched, Amazon.com customers will be able to choose Kozmo.com as a one-hour fulfillment and delivery option for certain book, music and toy orders. Under the terms of the agreement, Amazon.com can also use other one-hour delivery service providers.
"We're always looking for new ways to offer more choices to our customers, whether it's new products or new delivery options," said Joe Galli, president and chief operating officer, Amazon.com. "In a short time, Kozmo.com has developed a strong track record for meeting a unique customer need, and this agreement provides us a one-hour delivery option for the types of products that customers may want immediately."
Amazon.com's $60 million investment in Kozmo.com closed in December 1999.
Based in New York, Kozmo.com provides consumers with a one-hour delivery service for entertainment and convenience products. Kozmo.com currently serves the New York, Boston, Washington, D.C., San Francisco, Seattle and Los Angeles markets.
Amazon.com (Amazon.com, Inc., and its subsidiaries) is the Internet's No. 1 music, No. 1 DVD and video, and No. 1 book retailer. Amazon.com (Nasdaq:AMZN) opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com lists more than 18 million unique items in categories including books, CDs, toys, electronics, videos, DVDs, home improvement products, software, and video games. Through Amazon.com zShops, any business or individual can sell virtually anything to Amazon.com's more than 17 million customers, and with Amazon.com Payments, any seller can accept credit card transactions, avoiding the hassles of offline payments. The company also participates in sothebys.amazon.com, the leading auction site for guaranteed art, jewelry, and collectibles, at www.sothebys.amazon.com.
Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. Amazon.com's All Product Search scours the Web to help customers find merchandise that is not available at Amazon.com, Amazon.com Auctions, or Amazon.com zShops, making Amazon.com the shopping destination to find anything. Amazon.com Anywhere is the leader in mobile e-commerce, providing access from anywhere in the world to Amazon.com through handheld wireless Internet devices using the Wireless Application Protocol, at www.amazon.com/phone/ and on personal digital assistants (PDAs).
Amazon.com operates two international Web sites: www.amazon.co.uk and www.amazon.de. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 220,000 movies and entertainment programs and 500,000 cast and crew members dating from the birth of film in 1892 to 2003.
Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: Greenlight.com, the only company that offers car buyers the control of auto purchasing online with ongoing service and support from local dealerships, at www.greenlight.com; living.com, the leading online home products and services retailer, at www.living.com; drugstore.com, an online retail and information source for health, beauty, wellness, personal care and pharmacy, at www.drugstore.com; Pets.com, the online leader for pet products, expert information, and services, at www.pets.com; HomeGrocer.com, the first fully integrated Internet grocery-shopping and home-delivery service -- with operations in Seattle; Portland, Oregon; and Southern California -- at www.homegrocer.com; Gear.com, which offers brand-name sporting goods at prices from 20 to 90 percent off retail, at www.gear.com; and Ashford.com, the leading Internet retailer of luxury and premium products and the Web's No. 1 retailer of watches and jewelry, at www.ashford.com. Amazon.com also has a minority interest in Della.com, which brings together leading retailers with gift registry, expert advice, and personalized gift suggestions to help everyone give better gifts, at www.della.com; and NextCard, Inc., considered the industry's leading issuer of consumer credit on the Internet, at www.nextcard.com; and Audible, Inc., the leader in Internet-delivered spoken audio for PC-based listening or playback on AudibleReady(TM) portable digital audio devices, at www.audible.com.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risk of distribution center expansion, risks related to fourth quarter performance, risks of system interruption, management of potential growth, risks related to auction and zShops services, risks related to fraud and Amazon.com Payments, and risks of new business areas, international expansion, business combinations, and strategic alliances. 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, 1998 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 1999, June 30, 1999, and September 30, 1999.
CONTACT: Amazon.com Sharon Greenspan, 206/266-7180