Sears Canada and Amazon Services Announce E-Commerce Alliance

    Business Editors/E-Commerce Writers/Retail Writers

    TORONTO & SEATTLE--(BUSINESS WIRE)--April 27, 2005--Retail industry giant Sears Canada Inc. (TSX:SCC) and Amazon Services, Inc., a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN), today announced that they will join forces to create a more robust online shopping experience for www.sears.ca customers. Under the multi-year agreement, Amazon Services will build a new Sears Canada branded-website using Amazon technology and provide Sears Canada with tools to be in control of its brand and online business.
    "Sears.ca is Canada's most popular retail website. Amazon Services provides technology and expertise that drives Amazon.com. This announcement marks the joining together of two industry leaders to create a premiere shopping experience on sears.ca, the website that features Canada's most extensive online merchandise selection," said Brent Hollister, President and Chief Executive Officer, Sears Canada. "It is important to us to incorporate web features that make sears.ca as user-friendly as today's technology allows. The relationship with Amazon Services helps us move forward immediately and remain on the leading-edge of e-commerce development."
    Through this alliance, Sears Canada will be able to combine its core competencies including merchandising, marketing, fulfillment and customer service with Amazon Services' technical and e-commerce expertise. Amazon shopping features such as Search, Navigation, Personalization, Recommendations, and Community features such as Customer Reviews, will be key elements in creating a more compelling online merchandise presentation and customer experience for Sears Canada online shoppers.
    "Think of it as sears.ca powered by Amazon," continued Hollister. "This is a significant business initiative with aggressive growth opportunities and other long-term benefits and is planned with a substantial return on investment. We intend to extend our relationship to develop innovative solutions to drive significant value."
    "We are pleased that Sears Canada chose Amazon Services to create an enhanced shopping experience for its customers," said Amazon.com CEO and Founder Jeff Bezos. "We look forward to putting Amazon's e-commerce expertise and technology innovation to work in moving Sears Canada's online business forward."

    About sears.ca

    Sears Canada's bilingual website, www.sears.ca debuted online in 1996, making Sears one of the country's first retailers with an Internet presence. By late 1998, the site reached 500,000 visits. Today, sears.ca receives over 30 million visits annually. In 2002, the site won the Retail Council of Canada's "Excellence in Retailing Award", (for online retailing) for processing over 1 million orders in 2001. Sears.ca offers an impressive assortment of merchandise with well over 100,000 items available for sale and ships orders free to over 2,200 merchandise pick-up locations across Canada. As the company in Canada that people trust the most, online shoppers have peace of mind knowing that Sears offers its satisfaction guaranteed or money refunded policy and safe shopping environment that assures them that sears.ca is a secure place to shop.

    About Sears Canada Inc.

    Sears Canada, the retailer with the most extensive multi-channel network in the country, began serving customers in 1953. The Company has 41,000 associates and, in an independent consumer survey, ranks high in customer service, trust, respect, and quality products and services. There is a Sears location within a 10-minute drive of 93% of Canadians, and Sears is dedicated to providing them with quality merchandise and exceptional service coast to coast through its 122 full-line department stores, 219 off-mall stores, 64 home improvement showrooms, over 2,200 catalogue merchandise pick-up locations, 113 Sears Travel offices and a nationwide home maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalogue and offers shopping online at www.sears.ca.

    About Amazon Services, Inc.

    Amazon Services, Inc. is a subsidiary of Amazon.com, Inc. (Nasdaq:AMZN) that offers the technical platform, operational capabilities and online retailing expertise that power Amazon.com, Target.com, The Bombay Company, NBA.com Store, and other leading retail sites seeking a world-class, cost-effective e-commerce offering for their customers.

    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.

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CONTACT: Sears Canada Inc. Vincent Power, 416-941-4422 vpower@sears.ca or Amazon Services, Inc. Media Hotline, 206-266-7180

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

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