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Amazon.com Modifies 'Purchase Circles(TM)' Feature

Customers Can Now Choose To Exclude Their Anonymous Purchase Data from Unique Best Seller Listings

SEATTLE, Aug. 26, 1999/PRNewswire/ -- Leading online retailer Amazon.com (NASDAQ:AMZN), announced today that it is modifying its new Purchase CirclesTM feature.

For individual customers, Amazon.com will now allow their anonymous book, video and CD selections to be excluded from the Purchase Circles to which they belong. In addition, Amazon.com will remove a company-specific Purchase Circle at the company's request. Both changes will be implemented as soon as possible.

It is important to note that Amazon.com does not create Purchase Circles with fewer than 200 customers as a way to ensure individual confidentiality.

"Privacy is of utmost importance to our customers and to us," said Warren Adams, director, product development. "While the vast majority of feedback from our customers indicates that Purchase Circles have been well received and are extremely valuable in making informed purchase decisions, some customers have expressed concerns, so we're letting people decide individually."

"Amazon.com must continue to be an innovative pioneer, and pioneers inevitably create some controversy, as we did four years ago when we first let customers post negative reviews of books and as we did one year ago when we started publishing storewide sales rankings," said Jeff Bezos, Amazon.com founder and CEO. "The one thing that we'd like everyone to know is that even as we explore the unknown, we'll always be trying to do the right thing, and we'll always be listening to our customers."

About Amazon.com, Inc.

Amazon.com, Inc. (NASDAQ: AMZN), the Internet's No. 1 music, No. 1 video, and No. 1 book retailer, opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest SelectionTM with online auctions, toys, electronics, free electronic greeting cards, and more than 4.7 million book, music-CD, video, DVD, and computer-game titles. Amazon.com seeks to be the world's most customer-centric company, where people can find and discover anything they may want to buy online. As part of its efforts to provide the best shopping experience for customers, Amazon.com provides secure credit-card payment, personalized recommendations, streamlined ordering through 1-ClickSM technology, and hassle-free auction bidding with Bid-ClickSM. 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. Amazon.com also operates LiveBid.com (www.livebid.com), the sole provider of live-event auctions on the Internet.

In addition, Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: 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 and Portland, Oregon, at www.homegrocer.com; Gear.com, which offers brand name sporting goods at prices from 20% to 90% off retail, at www.gear.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, risks of system interruption, management of potential growth, risks related to auction services, 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 and June 30, 1999.

Amazon.com, Amazon.com Auctions, Amazon.co.uk, Amazon.de, Internet Movie Database, PlanetAll, Earth's Biggest Selection, Bid-Click 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.