26 October 1998. Amazon.co.uk nets deal with Virgin Net

Amazon.co.uk and Virgin Net today announced an agreement naming Amazon.co.uk as the exclusive supplier of books on Virgin's online service. Under the terms of the agreement, Amazon.co.uk will receive prominent placement through specific links and advertising throughout the site, plus a range of new and unusual promotions including interactive demos in its free trial starter packs.

Amazon.co.uk's extensive content, including reviews, articles, recommendations and interviews will offer all Virgin's visitors the opportunity to discover and buy topic-related books. Virgin Net currently has c140k members and tens of thousands of regular visitors to its site, attracted by the wealth of UK exclusive content provided to consumers.

This alliance furthers Amazon.co.uk's objective of providing customers with as many possible points of access to its' huge selection of titles.

Dr Simon Murdoch, managing director of Amazon.co.uk commented "Both Virgin Net and Amazon.co.uk strive to offer the best possible customer experience through good value, great customer service and providing a wealth of information"

"This first mega-deal is extremely significant for the UK electronic commerce market," explained David Clarke, CEO at Virgin Net. He continued, "The industry has been talking about online advertising coming of age and I think this is the first deal which actually delivers such a package. It will offer a valued addition to our online shopping channel for the busy Christmas period and we fully expect a higher turnover of books than ever before."

Amazon.co.uk launched on 15th October 1998 to sell all 1.2 million UK published books in print, as well as a selection of 200,000 of the best selling US-published titles. Customers buying books on Amazon.co.uk find everyday discounts of up to 40% off high street prices on thousands of popular books and can benefit from the convenience of shopping 24 hours a day, 7 days a week from any computer with Internet access.

Notes for editors

About Virgin Net

Virgin Net was launched in November 1996 to provide a consumer friendly Internet service to UK users. Since then it has attracted more than 140,000 members and tens of thousands of regular visitors. The service offers a range of UK content covering the areas of: News, Cinema, Travel, Music, Sport, Health, Education and Shopping, along with members' clubs, newsgroups, e-mail, free Web space, searchable news archives and full Internet search facilities. Visit the Web site at: http://www.virgin.net

About Amazon.co.uk

Amazon.co.uk Ltd is a wholly owned subsidiary of Amazon.com Inc. and offers more than 1.4 million book titles, plus easy-to-use search and browse features, secure credit card payment, personalised recommendations, and direct shipping. Amazon.co.uk has virtually unlimited online shelf space to offer customers a vast selection easily accessed through an efficient search-and-retrieval interface, as well as streamlined ordering through 1-Click(SM) technology.

About Amazon.com

Amazon.com, Inc., offers more than 3 million book, music, and other titles, plus easy-to-use search and browse features, secure credit card payment, personalized recommendations, and direct shipping. Amazon.com has virtually unlimited online shelf space to offer customers a vast selection easily accessed through an efficient search-and-retrieval interface, as well as streamlined ordering through 1-Click(SM) technology. Amazon.com pioneered the concept of syndicated selling on the Internet and has more than 100,000 members in its Associates Program, including AOL.com, Yahoo!, Netscape, Excite, the AltaVista Search Service, the @Home Network, and iVillage.

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, the unpredictability of its future revenues, and risks associated with capacity constraints, management of growth, and new business opportunities. More information about factors that potentially could affect Amazon.com's financial results is included in the company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1997, and quarterly report on Form 10-Q for the quarter ended June 30, 1998.

Amazon.com, Amazon.co.uk and 1-Click are either registered trademarks or trademarks of Amazon.com, Inc. All other names mentioned herein may be trademarks of their respective owners.

For more information about Amazon.co.uk, please contact:

• Fiona Murphy or
  Rebecca Woods on 0208 237 4000.

For more information about Virgin Net, please contact:

• Lisa Francis
  PR Manager
  E-mail: lisa@london.virgin.net
  Tel: 0171 479 4488