Amazon to Acquire LOVEFiLM International Limited

LOVEFiLM is a leading European subscription entertainment service which combines the benefits of online DVD and games rental-by-post as well as streaming films and TV shows instantly over the internet to PCs, internet enabled TVs and Playstation®3. LOVEFiLM operates today in the UK, Germany, Sweden, Norway and Denmark.  Amazon already has a significant minority shareholding in LOVEFiLM and does not itself operate any similar business in Europe.

³LOVEFiLM has been innovating on behalf of movie rental customers across Europe for many years and with the advent of the LOVEFiLM player, they are further delighting customers by streaming digital movies for their immediate enjoyment,² said Greg Greeley, Amazon¹s Vice President of European Retail.

³LOVEFiLM and Amazon have enjoyed a strong working relationship since LOVEFiLM acquired Amazon Europe¹s DVD rental business in 2008, and we look forward to a productive and innovative future.²

³The deal is a winner for the members who love LOVEFiLM because of its value, choice, convenience and innovation in home entertainment,² said Simon Calver, Chief Executive of LOVEFiLM International.³With Amazon¹s unequivocal support we can significantly enhance our members¹ experience across Europe.²

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2011.

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About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth¹s Biggest Selection. Amazon.com, Inc. seeks to be Earth¹s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.

Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music&Games; Digital Downloads; Electronics&Computers; Home&Garden; Toys, Kids&Baby; Grocery; Apparel, Shoes&Jewelry; Health&Beauty; Sports&Outdoors; and Tools, Auto&Industrial. Amazon Web Services provides Amazon¹s developer customers with access to in-the-cloud infrastructure services based on Amazon¹s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle, Kindle 3G and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper.

Kindle 3G and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the

#1 bestselling product across the millions of items sold on Amazon.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, and www.amazon.it. As used herein,³Amazon.com,²³we,²³our² and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

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 competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. 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 most recent Annual Report on Form 10-K and subsequent filings.

About LOVEFiLM

History

·     LOVEFiLM International was formed from the merger of two leading VC

backed DVD rental companies in Europe. The first, LOVEFiLM formed in early

2004 when Arts Alliance Media acquired and rebranded DVDs On Tap and later acquired Boxman.se and Digitarian.dk. The second, Video Island­ originally formed in 2003 by Redbus Group­  backed by Balderton, Index and DFJ Esprit merged with ScreenSelect Ltd (also founded in 2003), and acquired Brafilm.se and Brafilm.no. The 50/50 merger between the two companies in 2006 was followed in 2008 by LOVEFiLM International¹s acquisition of Amazon¹s UK and German online DVD rental customer base.

What we do

    <*>In a little over seven years, LOVEFiLM has become a leading European film subscription service, combining the benefits of DVD  rental by post and, more recently, watching movies online via the LOVEFiLM Player (on the PC, the PlayStation®3 and streamed direct to TV). Customers choose from a selection of over 70,000 titles available across Blu-ray, DVDs, video games and digital streaming. LOVEFiLM currently has nearly 1.6 million members and operates in the UK, Germany, Sweden, Denmark, and Norway. <*>LOVEFiLM has been a pioneer in digital film delivery in the UK since launching the first download to own movie in April 2006. The LOVEFiLM Player launched in March 2010 and offers thousands of digital titles available for members to watch on their TV, PC or PlayStation®3. For those on an Unlimited or capped package the service comes at no extra cost. Premium titles are available to everyone on a pay-per-view basis, and a number of titles are available to all site visitors for free with advertising support. <*>LOVEFiLM is also available through a range of internet-enabled devices - including Sony, Samsung and PS3 - taking LOVEFiLM directly into members¹ living rooms through their TV sets. <*>LOVEFiLM customers have generated 80 million film ratings and written 843,000 member reviews­ information which helps LOVEFiLM to promote the most relevant titles for its customers to choose from. <*>LOVEFiLM offers a range of rental options in each market with free postage and no late fees. In the UK these include£4.99 a month allowing members to have one DVD at a time (limit of two per month. Does not include online viewing),£5.99 a month for one DVD at a time (limit of three per month plus
2 hours online viewing ),£7.99 for two DVDs at a time (limit of four per month plus 4 hours online viewing),£9.99 a month for one DVD out at a time (Unlimited DVDs by post and online viewing),£12.99 for two at a time (Unlimited DVDs by post and online viewing) and£15.99 gives the option for three DVDs at a time (Unlimited DVDs by post and online viewing). Members on an Unlimited package have access to the LOVEFiLM Player at no extra cost.
    <*>LOVEFiLM also offers a range of video games rental options in the UK market to support gaming across XBox 360, Xbox, PS3, PS2, Wii and DS. These include£5.99 a month for one disc at a time (limit of three per month. Does not include online viewing),£9.99 a month for two discs at a time (limit of three per month plus 4 hours online viewing),£14.99 a month for two discs at a time (Unlimited discs by post and online viewing) and£18.99 for three discs at a time (Unlimited discs by post and online viewing), all with free postage and no late fees.
*

For further information please contact:

Amazon            

Ben Howes

+44 (0)20 8636 9280

pressoffice@amazon.co.uk

Christine Hoeger

+49(0)89/358 03-530

presse@amazon.de

LOVEFiLM

UK Financial and Business:

M Communications

Ben Simons (+44 (0)20 7920 2340)

simons@mcomgroup.com

                  

UK Trade and Consumer:

Mischief PR

Dan Glover (+44 (0)20 7841 6672)

Dan.Glover@mischiefpr.com

Hayley Dodd 

T: 020 7841 6668 | M: 07824 825830 | E: Hayley.Dodd@mischiefpr.com | F: 020 7100 9898

Mischief | First Floor | 1 Hardwick St | London | EC1R 4RB | www.mischiefpr.com 


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