Amazon.com and CustomFlix Launch the Media Gateway Program; Program Digitizes and Unlocks the World's Video Media

Leading online retailer Amazon.com, Inc. (NASDAQ: AMZN)and CustomFlix Labs, Inc., a wholly owned subsidiary of Amazon.com,Inc., today announced the introduction of the Media Gateway program, aworldwide initiative to digitize and sell previously unavailable videocontent on Amazon.com. At the heart of the Media Gateway program isthe CustomFlix Future-Proof Archive(TM) service, a secure storage andreformatting platform designed to provide content owners theflexibility to repurpose content into multiple future digital formats.The Future-Proof Archive service currently supports DVD-Video, withadditional formats to be announced.

The Media Gateway program enables content owners to unlock thehundreds of thousands of hours of content trapped in analog tapeformats making it immediately available for sale as physical DVDs, andenabling the content for future inventory-free digital formats. For alimited time, CustomFlix will offer digitization and DVD authoring ofqualified content with no up-front investment by the content provider.Amazon.com will then make this content available for sale to tens ofmillions of Amazon customers and CustomFlix will manufacture DVDs ondemand as customers place orders.

"The Media Gateway program isn't just about converting tapes intodigital masters and DVDs - it's about a whole new way to manage mediadistribution," said Dana LoPiccolo-Giles, co-founder and ManagingDirector of CustomFlix. "The real innovation lies in the Future-ProofArchive service. We're digitizing the world's content and storing itin virtually lossless quality, then helping content owners repurposeand deliver their programming in whatever current or future formatthey select. Once content is added to our Future Proof-Archiveservice, it will never go out of stock or deteriorate in someantiquated format. Content providers can immediately begin offeringtheir entire catalog for sale to Amazon.com customers and additionallyuse our service to manufacture and distribute DVDs through otherchannels. With the Media Gateway program, we are offering maximumflexibility in an uncertain digital media environment."

The scope of the Media Gateway program goes beyond the currentoffering of standard definition DVD-Video. CustomFlix also announcedthat the Future-Proof Archive service will support the major highdefinition DVD formats in the future. Additional format support willbe announced in the coming months.

The Media Gateway program is already in use by many high-profilecontent providers. Major networks, including NBC Universal, A&E HomeVideo, and PBS (Public Broadcasting Service), are using the MediaGateway program for digitization and distribution today, with morepartners and content being added on a continual basis.

"Amazon.com and CustomFlix are creating a real opportunity for themedia industry," said Greg Greeley, Vice President of Worldwide Mediaat Amazon.com. "A vast amount of video content is currentlylanguishing in unusable tape formats, unavailable to viewingaudiences, due to the content owner's concerns about expensive upfront investments and the uncertainty around future digital formats.The Media Gateway program helps them unlock this opportunity. Contentproviders can now leverage this program to make their entire libraryof content immediately available to Amazon.com customers with minimalup front cost. CustomFlix and Amazon.com have already given our retailcustomers access to thousands of programs they couldn't previouslybuy. With the introduction of the Media Gateway program we lookforward to offering customers the ability to find, discover, and buy avastly expanded selection of DVDs, all available for shipment within24 hours, and eligible for Amazon Prime and free Super SaverShipping."

For more information, pricing and details on the Media Gatewayprogram, please visit www.CustomFlix.com/MediaGateway orwww.amazon.com/mediagateway

About CustomFlix

CustomFlix Labs, Inc., a wholly owned subsidiary of Amazon.com,Inc., is the leader in DVD on Demand services for enterprise andindependent media content owners. CustomFlix was founded in 2002 withthe mission of profitably connecting content owners and filmmakers toa worldwide audience. Today, CustomFlix offers professionaldigitization into the Future-Proof Archive service, as well asinventory-free physical media distribution via DVD on Demand, addingthousands of hours of media content to Earth's Biggest Selection onAmazon.com.

About Amazon.com

Amazon.com, Inc., (Nasdaq: AMZN), a Fortune 500 company based inSeattle, opened on the World Wide Web in July 1995 and today offersEarth's Biggest Selection. Amazon.com seeks to be Earth's mostcustomer-centric company, where customers can find and discoveranything they might want to buy online, and endeavors to offer itscustomers the lowest possible prices. Amazon.com and other sellersoffer millions of unique new, refurbished and used items in categoriessuch as health and personal care, jewelry and watches, gourmet food,sports and outdoors, apparel and accessories, books, music, DVDs,electronics and office, toys and baby, and home and garden.

Amazon and its affiliates operate websites, includingwww.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp,www.amazon.fr, www.amazon.ca, and www.joyo.com.

As used herein, "Amazon.com," "we," "our" and similar termsinclude Amazon.com, Inc., and its subsidiaries, unless the contextindicates otherwise.

This announcement contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. Actual results may differsignificantly from management's expectations. These forward-lookingstatements involve risks and uncertainties that include, among others,risks related to competition, management of growth, potentialfluctuations in operating results, international expansion, outcomesof legal proceedings and claims, fulfillment center optimization,seasonality, commercial agreements, acquisitions and strategictransactions, foreign exchange rates, system interruption, significantamount of indebtedness, inventory, limited operating history,government regulation and taxation, payments, fraud, consumer trends,and new business areas. More information about factors thatpotentially could affect Amazon.com's financial results is included inAmazon.com's filings with the Securities and Exchange Commission,including its Annual Report on Form 10-K for the year ended December31, 2005, and all subsequent filings.