Amazon.com (AMZN)

AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 37% TO $4.1 BILLION; ELECTRONICS AND OTHER GENERAL MERCHANDISE GROWS 56%; MEDIA GROWS 28%

SEATTLE—(BUSINESS WIRE)—April 23, 2008—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2008.

Operating cash flow was $1.04 billion for the trailing twelve months, compared with $0.73 billion for the trailing twelve months ended March 31, 2007. Free cash flow increased 51% to $0.79 billion for the trailing twelve months, compared with $0.52 billion for the trailing twelve months ended March 31, 2007.

Common shares outstanding plus shares underlying stock-based awards outstanding totaled 435 million on March 31, 2008, compared with 430 million a year ago.

Net sales increased 37% to $4.13 billion in the first quarter, compared with $3.02 billion in first quarter 2007. Excluding the $0.18 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 31% compared with first quarter 2007.

Operating income increased 36% to $198 million in the first quarter, compared with $145 million in first quarter 2007. Excluding the $14 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income grew 27% compared with first quarter 2007.

Net income increased 30% to $143 million in the first quarter, or $0.34 per diluted share, compared with net income of $111 million, or $0.26 per diluted share, in first quarter 2007.

“Our sales growth this quarter was driven by low prices and millions of in-stock items available for immediate shipment,” said Jeff Bezos, founder and CEO of Amazon.com. “We’re grateful to our customers.”