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Amazon.com Announces Minority Investment in and Strategic Alliance with Drugstore.com

SEATTLE, Feb. 24, 1999 /PRNewswire/ -- Amazon.com (NASDAQ: AMZN), the leading online retailer, today announced that it holds a significant minority stake in newly opened Drugstore.com (www.drugstore.com), which offers more than 15,000 brand-name personal healthcare products, extensive product information, and a licensed pharmacy.

Amazon.com, the Internet's No.1 book and No.1 music retailer, will help introduce customers to the new shopping experience at Drugstore.com as part of a strategic alliance. Amazon.com founder and CEO Jeff Bezos will serve on the Drugstore.com board of directors.

"We're excited about Drugstore.com," said Bezos. "Drugstore.com shares our passion for empowering customers and giving them the best possible experience. Peter Neupert and the team he's assembled are going to shake up their industry by giving customers what they really want."

"People who like Amazon.com will like shopping at Drugstore.com," says Neupert. "Amazon.com sets the standard for quality and excellent service and we at drugstore.com are committed to matching that standard."

Amazon.com has an investment of approximately 46% of Drugstore.com's outstanding shares as of December 31, 1998, which is accounted for under the equity method of accounting.

About Amazon.com, Inc.
Amazon.com, Inc. (NASDAQ: AMZN), the Internet's No. 1 music and No. 1 book retailer, opened its virtual doors on the World Wide Web in July 1995. Today, the Amazon.com store has expanded to offer more than 4.7 million book, music CD, video, DVD, computer game, and other titles, plus secure credit card payment, personalized recommendations, and streamlined ordering through 1-Click(SM) technology. Amazon.com operates two international Web sites: www.amazon.co.uk in the United Kingdom and www.amazon.de in Germany. Amazon.com also operates PlanetAll (www.planetall.com), a Web-based address book, calendar, and reminder service. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 150,000 movies and entertainment programs and 500,000 cast and crew members dating from the birth of film in 1892 to the present.

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, competition, risks associated with system development and operations, management of potential growth, 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, 1997, as amended by the Form 8-K filed September 11, 1998, and quarterly reports on Form 10-Q for the quarters ended March 31, 1998, June 30, 1998 and September 30, 1998.

Amazon.com, Amazon.co.uk, Amazon.de, Internet Movie Database, PlanetAll, Earth's Biggest Bookstore, and 1-Click are either registered trademarks or trademarks of Amazon.com, Inc or its affiliates. All other names mentioned herein may be trademarks of their respective owners.

About drugstore.com
Drugstore.com (www.drugstore.com) is an online source for thousands of brand-name health, beauty and wellness products, combined with a wealth of decision-making information and resources to educate and inform consumers to take charge of their personal health and well-being. Based in Redmond, Washington, the company is headed by President and CEO Peter Neupert, a former senior Microsoft executive. drugstore.com is funded by Amazon.com, Kleiner Perkins Caufield and Byers, Maveron, L.L.C. and Liberty Media. Drugstore.com is a trademark of Drugstore.com, Inc.


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