Amazon.com Standardizes On Dell Desktops; Agreement Between E-Commerce Leaders Addresses Explosive Growth of Online Retailer - Amazon.com buys Dell Computer desktop and notebook computers - Company Business and Marketing

Edge: Work-Group Computing Report, August 16, 1999

Dell Computer Corporation (Nasdaq:DELL), the world's leading direct computer systems company, Tuesday announced that Amazon.com (Nasdaq:AMZN) has selected Dell's OptiPlex corporate PC line as its desktop computing standard.

In addition to standardizing on Dell's award-winning OptiPlex desktops, Amazon.com -- the No. 1 online retailer of videos, music and books -- also will purchase Dell Latitude notebook PCs and Dell Precision WorkStations. Amazon.com will deploy the Dell systems by the end of this year. Dell products, chosen after a competitive review of offerings from top-tier computer manufacturers, will be used throughout Amazon.com's administrative and support operations.

"Amazon.com and Dell share an obsession with providing the best customer experience possible," said Jamie Marra, director of production services at Amazon.com. "For Dell, it goes beyond delivering rock-solid desktop machines. Dell takes full accountability for meeting our needs in a timely manner. We are confident that we will receive from Dell the kind of value and unparalleled service that we give our own customers."

"Amazon.com is experiencing a period of phenomenal growth, something we are familiar with here at Dell," said John Kinnaird, vice president and general manager of Dell's Preferred Accounts Division. "With that growth comes a vast set of complex needs that we can solve. Stable and reliable products, award-winning services such as Premier Pages, and Dell's ability to mass customize through our DellPlus program have turned Amazon.com, already a business partner, into a customer."

DellPlus, Dell's custom factory integration service, provides factory-installed solutions ranging from hardware and software integration to asset data and support services. DellPlus also offers high levels of customization, expert assistance and project management from initial system design to final delivery and installation.

Dell also has created an Amazon.com Premier Page to provide one-stop access to purchase history information, order status and help-desk support. Premier Pages are customized, password-protected Web sites that Dell creates for business and institutional customers. More than 19,000 customer-specific Premier Pages currently are hosted through Dell's Web site at www.dell.com.

In March, Dell and Amazon.com announced a strategic agreement to offer linked Web sites and to provide customized content for Amazon.com and Dell customers. The links reside in the checkout sections of the respective sites and lead to co-branded Dell and Amazon.com home pages. The sites recognize and welcome customers to the full www.amazon.com and www.dell.com online experience. The Dell Web site is the world's highest volume Microsoft Windows NT-based Internet commerce site, with online sales of $18 million per day.

The agreement with Amazon.com is one of several recent contracts that have helped propel Dell to a leadership position in the U.S. business marketplace. In the first quarter of this year, industry research firm ZD InfoBeads ranked Dell No. 1 in the small and medium business market, as well as the market-share leader in total PC shipments to U.S. businesses(a).

Ranked No. 78 among the Fortune 500 companies and No. 210 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $19.9 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained through its toll-free number 800/388-8542 or by accessing the Dell World Wide Web site at www.dell.com.

(a) Source: ZD InfoBeads, Q1 1999 Projected Market Monitor (PMM) report