Amazon.com and Borders Group Announce Strategic Alliance
Borders' Web Site to Be Powered by Amazon.com's E-commerce Platform
SEATTLE & ANN ARBOR, Mich.--April 11, 2001--
Amazon.com, Inc. (Nasdaq:AMZN) and Borders Group, Inc. (NYSE:BGP)
today announced an agreement to re-launch Borders.com as a co-branded
Web site powered by Amazon.com's e-commerce platform.
The co-branded site, expected to debut in August, will feature the
vast selection of books, music, video and DVDs available at
Amazon.com. Amazon.com's Web site, including its No. 1 book, music,
video and DVD stores, will continue to operate independently.
Amazon.com will be the seller of record, providing inventory,
fulfillment, site content and customer service for the co-branded
site. The new site will continue to offer content unique to
Borders.com, including store location information and in-store event
"Amazon.com has worked hard to provide its customers with the best
possible shopping experience, and we are incredibly pleased to power
and manage the new Borders.com," said Jeff Bezos, CEO and founder of
Amazon.com. "Borders is best-of-breed in the physical world and a
company that shares our passion for serving book, music and movie
"This alliance allows Borders to offer our customers the
convenience of an online shopping option with the added benefits that
will emerge through our new association with Amazon.com, the world's
recognized e-commerce leader," said Borders Group President and CEO
Greg Josefowicz. "While our customers' needs are met online by the
people who do it better than anyone else, we will provide them with
what we do best -- the books, music and movies they love to explore in
an engaging shopping atmosphere."
Under the agreement, customers of the co-branded site will benefit
from access to Amazon.com's editorial reviews, personalization
features and recommendations, 1-Click(TM) ordering, and other key site
features. Both companies will continue to work together to bring about
additional customer benefits in the future, which may include the
ability for customers to reserve a title online for later purchase and
pick up at their neighborhood Borders store, as well as extending the
alliance internationally. In addition, customers of the co-branded
site, as well as customers of Amazon.com, may receive notification of
upcoming author events and musical performances scheduled to take
place in Borders stores.
This arrangement, in combination with the Toysrus.com agreement,
which launched in September 2000, demonstrates the flexibility of
Amazon.com's e-commerce platform to meet the needs of other leading
Borders.com will continue operation in its current format until
the launch of the co-branded site in August.
Terms of the agreement were not disclosed. This agreement will not
impact the previously issued financial guidance of either company.
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 seeks to be the world's most customer-centric company,
where customers can find and discover anything they might want to buy
online. Amazon.com lists millions of unique items in categories such
as electronics, kitchen and housewares, books, music, DVDs, videos,
camera and photo items, toys, software, computer and video games,
tools and hardware, outdoor living and wireless products. Through
Amazon.com zShops, any business or individual can sell virtually
anything to Amazon's more than 30 million cumulative customers, and
with Amazon Payments, sellers can accept credit card transactions,
avoiding the hassles of offline payments.
Amazon.com operates four international Web sites: www.amazon.fr,
www.amazon.co.uk, www.amazon.de and www.amazon.co.jp. It also operates
the Internet Movie Database (www.imdb.com), the Web's comprehensive
and authoritative source of information on more than 250,000 movies
and entertainment titles and 1 million cast and crew members dating
from the birth of film in 1891 to 2003.
About Borders Group
Headquartered in Ann Arbor, Mich., Borders Group (NYSE:BGP) is a
FORTUNE 500 company that employs 30,000 people worldwide. The company
operates over 335 domestic Borders Books and Music superstores and 14
Borders stores overseas in the U.K., Australia, New Zealand and
Singapore, as well as the commonwealth of Puerto Rico. The company
also has 869 Waldenbooks stores in malls and airports across America
and operates 31 Books etc. stores in the U.K.
To learn more about Borders Group, visit www.bordersgroupinc.com.
For information on Borders stores, log on to www.bordersstores.com.
Journalists may visit www.bgimediacenter.com for news, background
information and downloadable images.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. One
can identify these forward-looking statements by the use of words such
as "may," "will," "anticipates," "plans," "expects," "focusing,"
"looks," and other words of similar meaning. These statements are
subject to risks and uncertainties that could cause actual results and
plans to differ materially from those included in either company's
forward-looking statements. The forward-looking statements include
future benefits and future results from, and extension of, this
alliance including reserving titles online for later pickup in stores,
international extension, and the impact on earnings guidance. These
risks and uncertainties include, but are not limited to; information
system improvements that will affect the ability of Amazon.com and
Borders.com to achieve these benefits and results, as well as
unanticipated costs associated with the discontinuance of the existing
Borders.com site or the implementation of the co-branded site. More
information about factors that potentially could affect Amazon.com's
results is included in Amazon.com's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K and for
the year ended December 31, 2000, and all subsequent Quarterly Reports
on Form 10-Q. More information about factors that potentially could
affect Borders Group's results is included in Borders Group's filings
with the Securities and Exchange Commission, including its quarterly
report on Form 10-Q for the fiscal quarter ended October 22, 2000 and
all subsequent Annual Reports on Form 10-K and quarterly reports on