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For Immediate Release |
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AMAZON CHANGES TO NON-PROFIT STATUS
(SEATTLE, WA 29 APRIL 1999) - Amazon.com, Inc. (Nasdaq: AMZN) yesterday announced financial results for the first quarter of 1999. Net sales for the first quarter were triple than this quarter a year ago but the company warned that it would suffer deeper losses for the next two years as it continues a strategy of aggressive investment and expansion into new businesses.
Since incorporating in 1996, Amazon.com has been operating at a loss. With losses expected to continue for at least the next two years, the company has announced plans to change to a non-profit status to take advantage of special tax-related loopholes. This is the first company of its size to seek non-profit status while freely admitting someday in the future the company expects to post a profit. SEC investigators are looking into the legality of such a move.
Jeffrey P. Bezos, CEO and President of Amazon.com, says, "The last couple of years many on Wallstreet laughed at Amazon's losses. Now we're going to use those losses to our best advantage while we continue aggressive top line growth and building our customer base. We have a firm footing in our non-profit status at least for the next two years."
In related developments, Amazon.com will be moving its website to http://www.amazon.org to reflect its new non-profit status.
Certain "forward-looking statements" contained in this release involve unknown risks and uncertainties that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements. In particular, statements concerning objectives, goals, targets and expectations are not projections of future performance, including statements related to increased future potential profitability as a result of accounting adjustments. In addition, factors such as general economic and business conditions, product performance, market acceptance of products and technologies, consumer demand, dependence upon long-term contracts with commercial and government customers and timely and accurate assessment of "Year 2000" issues may impact the company's revenues, expenses and profit from period to period. These factors and others related to the company's business are described in further detail in the company's SEC filings, including its Form 10-K and Forms 10-Q.
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