Fast-Growing Specialty Apparel Retailer bebe Chooses Amazon Services f

    Business Editors/E-Commerce Writers/Retail Writers

    SEATTLE & BRISBANE, Calif.--(BUSINESS WIRE)--April 25, 2005--Amazon Services, Inc., a subsidiary of Amazon.com (NASDAQ:AMZN), and bebe stores, inc. (NASDAQ:BEBE) today announced that Amazon Services will power the fast-growing specialty apparel retailer's direct to consumer channel. Under the agreement, Amazon Services will provide the technology platform, fulfillment center and multi-channel call center operations for bebe.com. bebe will maintain control over their brand and online business through a suite of site management tools.
    "As announced last week, our direct sales channel grew 95% in the third quarter," said Barbara Wambach, bebe's Chief Administrative Officer. "We evaluated several alternatives to achieve a "best-in-class" and scalable solution to support the growth of bebe.com, direct mail, and our Loyalty Program. We chose Amazon Services as we share a common customer focus, e-commerce excellence and best-in-class customer service. With this agreement, we realize world class scalable operations to support the growth of our direct initiatives and can continue to focus on building and extending our brand."
    Amazon Services will build a new private label bebe.com website on Amazon's back-end technology and provide bebe with tools to manage the content of the site. This will offer bebe's online customers an experience that combines the distinctive bebe brand with Amazon's proven shopping features. Phone sales, customer service, and order fulfillment for bebe's online sales channel will be operated by Amazon's global network of fulfillment and customer service centers.
    "We are excited to be working with one of the apparel industry's fastest-growing brands," said Mark Stabingas, Amazon Services Senior Vice President. "We believe that through this partnership we can help bebe take what is already a growing online business to the next level of success."

    About Amazon Services, Inc.

    Amazon Services, Inc., a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN), provides world-class service to retailers and their customers through a suite of innovative service offerings from discovery through delivery. This includes technology, hosting, customer service, direct to consumer fulfillment, and transportation solutions that are tailored to support and enhance their brand and customer experience. Amazon Services powers the e-commerce channels for Target, NBA.com, Toys 'R' Us, The Bombay Company, Diane von Furstenberg, Borders.com, CD Now, and others.

    Amazon Forward-Looking Statement

    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 potential future losses, significant amount of indebtedness, competition, management of growth, potential fluctuations in operating results, international expansion, fulfillment center optimization, seasonality, commercial agreements, acquisitions, and strategic transactions, foreign exchange rates, system interruption, consumer trends, inventory, limited operating history, government regulation and taxation, fraud, and new business areas. 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, 2004, and all subsequent filings.

    About bebe stores, inc.

    bebe stores, inc. designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, BEBE SPORT and bebe O brand names. bebe currently operates 209 stores, of which 179 are bebe stores and 30 are BEBE SPORT stores. These stores are located in the United States, Puerto Rico and Canada. In addition, we have an online store at www.bebe.com.

    bebe Forward-Looking Statement

    The statements in this news release, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words "expect," "plan," "anticipate," "believe" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, loss of key personnel, difficulties in manufacturing, disruption of supply or adverse economic conditions, and/or other factors that may be described in the company's annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.

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CONTACT: Amazon Services, Inc. Amazon Media Hotline, 206-266-7180 or bebe stores, inc. Walter Park, 415-269-8492

KEYWORD: CALIFORNIA WASHINGTON INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD INTERNET E-COMMERCE APPAREL/TEXTILES RETAIL MARKETING AGREEMENTS SOURCE: Amazon Services, Inc.

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