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Amazon Margin Analysis (estimates only, of course).

                1997    Q298   FY98E  Q1E99 
                                 
Cost of goods   80.5%   77.4%   77.9%  77.1%    
Gross Margin    19.5%   22.6%   22.1%  22.9%     
Marketing&Sales 38.6%   34.8%   34.5%  30.6% 
Advertising     14.2%   10.8%    9.3%   8.6%      
Product Develop. 8.4%    6.9%    6.8%   6.0%      
Gen. & Admin.    4.4%    2.8%    2.5%   2.1%
Operating Exp.  39.3%   32.6%   32.0%  28.9%       
Oper. Income   -19.8%  -10.0%  -10.5%  -5.9%     
Tax rate         0.0%    0.0%    0.0%   0.0%      
Net income     -18.7%  -18.3%  -17.6% -13.8%  

# of customer 
accts (mil):     1.5     3.1     4.3    4.6         
Qtrly rev/acct:$44.19  $36.94    $35    $33

shares out (mil)        48.0     48.6  50.4  

=======
(cont.)
               Q2E99    Q3E99   Q4E99    FY99E
  
Cost of goods  77.0%    76.5%    76.0%    76.7%
Gross Margin   23.0%    23.5%    24.0%    23.3%
Mark. & Sales  28.5%    29.0%    26.5%    28.6%
Advertising     8.5%     7.5%     6.0%     7.6%
Product Develop.6.0%     6.0%     6.0%     6.0%
Gen. & Admin.   2.1%     2.0%     1.8%     1.9%
Operating Exp. 27.9%    27.0%    24.8%    27.0%
Oper. Income   -4.9%    -3.5%    -0.8%    -3.6%
Tax rate        0.0%     0.0%     0.0%     0.0%
Net income    -12.7%   -10.5%    -7.3%   -11.1%   
                       
# of customer 
accts in millions: 5.0   5.4      5.9       5.9
Qtrly rev/account: $31   $29      $33       $32

shares out(mil):  50.8   51.2    51.6       52

==========
(cont.)

AMZN Margin Est.     2000E   2001E

Cost of goods        76.1%  75.0%
Gross Margin         23.9%  25.0%
Marketing & Sales    25.8%  21.4%
Advertising           3.6%   1.6%
Product Develop.      5.3%   4.2%
Gen. & Admin.         1.9%   1.7%
Operating Exp.       24.4%  19.5%
Operating Income     -0.5%   6.1%
Tax rate              0.0%  40.0%
Net income           -4.7%   3.6%

# of customer accts
in millions:          7.2     8.3         
Qtrly rev/account:    $32   $32.5

Shares out (mil.)      56    61
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