Major Labels

Amazon Adds MP3’s From Warner Music Group

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WMG has joined EMI and Universal in making its downloads available as DRM free mp3’s, and at least for now Amazon has the exclusive. Noticeably no plans to sell WMG product without DRM on iTunes or other services was mentioned in the announcement.

The company’s entire digital catalog is available starting today on Amazon MP3, Amazon’s all mp3 digital music store. In addition,
Amazon and WMG will make available exclusive digital music products like album bundles containing exclusive tracks. Amazon now offers for 2.9 million songs asDRM free MP3’s from over 33,000 record labels.

Amazon MP3 Adds Music Audio Downloads from Warner Music Group
Customers
Can Now Choose from More Than 2.9 Million MP3 Songs on Amazon MP3,
Including Music from Warner Music’s Renowned Catalog of Artists

SEATTLE & NEW YORK, Dec 27, 2007 (BUSINESS WIRE) — Amazon.com (NASDAQ:AMZN) and Warner Music Group (NYSE:WMG) today
announced that DRM-free music audio downloads from Warner Music Group
are now available to customers on Amazon MP3, Amazon’s a la carte MP3
digital music store where every song and album is playable on
virtually any personal digital music capable device. Beginning today,
songs from WMG’s digital audio catalog will be available for purchase
and download from Amazon MP3. In addition, Amazon and WMG will make
available to consumers digital music products such as album bundles
containing exclusive tracks.

"Our customers are delighted with our DRM-free MP3 service. We
have received thousands of emails from our customers since our
September launch thanking us for offering the biggest selection of
high-quality MP3 audio downloads which play on virtually any music
device they own today or will own in the future," said Bill Carr,
Amazon.com Vice President of Digital Music. "With the addition of
great Warner Music Group content, our customers will discover even
more of the music they love on Amazon MP3."

"Consumers want flexibility with respect to what they can do with
music once they purchase it, and we want them to have that
flexibility, which is why we’re pleased to offer our artists’ music on
Amazon MP3," said Michael Nash, Senior Vice President, Digital
Strategy and Business Development for Warner Music Group. "We believe
that giving consumers the assurance that the music they purchase can
be played on any device they own will only encourage more sales of
music. Amazon shares our vision with respect to offering feature-rich
music based digital products, and we look forward to making available
an array of exciting new digital products over time that will
transform the relationship between and among consumers, labels and
artists."

About Amazon MP3

Launched in September 2007, Amazon MP3 (www.amazon.com/mp3) offers
Earth’s biggest selection of a la carte DRM-free MP3 music downloads
with more than 2.9 million songs from over 33,000 record labels.

  • Every song and album in the Amazon.com digital music store is
            available exclusively in the MP3 format without digital rights
            management (DRM) software. Amazon’s DRM-free MP3 format
            enables customers to play their music on virtually any
            personal digital music capable device–including PCs,
            Macs(TM), iPods(TM), iPhones(TM), Zunes(TM), Zens(TM)–and to
            burn songs to CDs for these customers’ personal use.
  •   Most songs available on Amazon MP3 are priced from 89 cents to
            99 cents, with more than 1 million of the over 2.9 million
            songs priced at 89 cents. The top 100 best-selling songs are
            89 cents, unless marked otherwise. Most albums are priced from
            $5.99 to $9.99. The top 100 best-selling albums are $8.99 or
            less, unless marked otherwise.(a)
  • Every song on Amazon MP3 is encoded at 256 kilobits per
            second, which gives customers high audio quality at a
            manageable file size.
  • Buying and downloading MP3s from Amazon MP3 is easy. Customers
            can purchase downloads using Amazon 1-Click(R) shopping, and,
            with the Amazon MP3 Downloader, seamlessly add their MP3s to
            their iTunes or Windows Media Player libraries.

(a)Taxes may apply in certain jurisdictions.

About Warner Music Group

Warner Music Group became the only stand-alone music company to be
publicly traded in the United States in May 2005. With its broad
roster of new stars and legendary artists, Warner Music Group is home
to a collection of the best-known record labels in the music industry,
including Asylum, Atlantic, Bad Boy, Cordless, East West, Elektra,
Lava, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner
Bros. and Word. Warner Music International, a leading company in
national and international repertoire, operates through numerous
international affiliates and licensees in more than 50 countries.
Warner Music Group also includes Warner/Chappell Music, one of the
world’s leading music publishers, with a catalog of more than one
million copyrights worldwide.

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
Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s 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 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, including
www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp,
www.amazon.fr, www.amazon.ca, and the Joyo Amazon websites at
www.joyo.cn and www.amazon.cn.

As used herein, "Amazon.com," "we," "our" 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, significant amount of indebtedness,
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 Annual
Report on Form 10-K for the year ended December 31, 2006, and all
subsequent filings.

SOURCE: Amazon.com, Inc. and Warner Music Group

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