Cites Positive Results From Test of Free Super Saver Shipping On Orders Over $49

SEATTLE, Aug 26, 2002 -- After seeing positive results from its test of Free Super Saver Shipping on qualifying orders over $49, Amazon.com (Nasdaq:AMZN) today announced it is further lowering the qualifying order size for its popular Free Super Saver Shipping option to $25 as a new long-term test of customer response.

The announcement comes just over two months after Amazon.com reduced the threshold for its Free Super Saver Shipping option from $99 to $49 in a test expected to last three to six months. The positive results from that test have enabled the company to initiate a new three-to-six-month test of Free Super Saver Shipping on qualifying orders over $25. The company will decide at the test's conclusion whether the $25 ordering threshold can become permanent.

"With Amazon.com's 30 percent off books over $15 and now Free Super Saver Shipping on orders over $25, there may be reasons to shop in the physical world, but price is not one of them," said Jeff Bezos, Amazon.com founder and CEO. "You will save a significant amount of money when you buy at Amazon.com."

Today's announcement marks Amazon.com's fifth significant price decrease in 13 months, and the second time the company has lowered its Free Super Saver Shipping threshold since launching everyday Free Super Saver Shipping in January. In July 2001, Amazon.com lowered book prices to 30 percent off books over $20, and in January introduced its Free Super Saver Shipping option on orders over $99. In April, Amazon.com extended the 30 percent discount to books over $15; in June the company reduced the qualifying order size for Free Super Saver Shipping from $99 to $49 as a long-term test; and today the company introduced Free Super Saver Shipping on qualifying orders over $25 as a new long-term test.

Amazon.com has also reduced product prices on many bestselling CDs, DVDs, electronics and tools in recent months, furthering its long-term strategy of working hard to find ways to continually lower prices for customers.

Free Super Saver Shipping is three to five days slower than standard shipping and is free on qualifying orders over $25. For more details visit www.amazon.com/supersavershipping.

About Amazon.com

Amazon.com, a Fortune 500 company based in Seattle, opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. 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 at a great price. Amazon.com and sellers list millions of unique new and used items in categories such as electronics, computers, kitchen and housewares, books, music, DVDs, videos, camera and photo items, toys, baby and baby registry, software, computer and video games, cell phones and service, tools and hardware, travel services, magazine subscriptions and outdoor living items. Through Amazon Marketplace, zShops and Auctions, any business or individual can sell virtually anything to Amazon.com's millions of customers.

Amazon.com operates five international Web sites: www.amazon.ca, www.amazon.co.uk, www.amazon.de, www.amazon.fr, and www.amazon.co.jp.

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 potential future losses, significant amount of indebtedness, competition, strategic alliances and business combinations, seasonality, potential fluctuations in operating results and rate of growth, foreign currency, management of potential growth, system interruption, international expansion, consumer trends, fulfillment center optimization, inventory, limited operating history, government regulation and taxation, fraud and Amazon.com Payments, 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, 2001, and all subsequent filings.