Toourshareowners:Thefinancialresultsfor2009reflectthecumulativeeffectof15yearsofcustomerexperienceimprovements:increasingselection,speedingdelivery,reducingcoststructuresowecanaffordtooffercustomersever-lowerprices,andmanyothers.Thisworkhasbeendonebyalargenumberofsmart,relentless,customer-devotedpeopleacrossallareasofthecompany.Weareproudofourlowprices,ourreliabledelivery,andourin-stockpositiononevenobscureandhard-to-finditems.Wealsoknowthatwecanstillbemuchbetter,andwe’rededicatedtoimprovingfurther.Somenotablehighlightsfrom2009:•Netsalesincreased28%year-over-yearto$24.51billionin2009.Thisis15timeshigherthannetsales10yearsagowhentheywere$1.64billionin1999.•Freecashflowincreased114%year-over-yearto$2.92billionin2009.•MorecustomersaretakingadvantageofAmazonPrime,withworldwidemembershipsupsignificantlyoverlastyear.Thenumberofdifferentitemsavailableforimmediateshipmentgrewmorethan50%in2009.•Weadded21newproductcategoriesaroundtheworldin2009,includingAutomotiveinJapan,BabyinFrance,andShoesandApparelinChina.•Itwasabusyyearforourshoesbusiness.InNovemberweacquiredZappos,aleaderinonlineapparelandfootwearsalesthatstrivestoprovideshopperswiththebestpossibleserviceandselection.ZapposisaterrificadditiontoourEndless,Javari,Amazon,andShopbopselection.•TheapparelteamcontinuedtoenhancecustomerexperiencewiththelaunchofourDenimShopoffering100brands,includingJoe’sJeans,LuckyBrand,7ForAllMankind,andLevi’s.•Theshoesandapparelteamscreatedover121,000productdescriptionsanduploadedover2.2millionimagestothewebsiteprovidingcustomerswithavividshoppingexperience.•Approximately7millioncustomerreviewswereaddedtowebsitesworldwide.•Salesofproductsbythirdpartysellersonourwebsitesrepresented30%ofunitsalesin2009.Activeselleraccountsincreased24%to1.9millionfortheyear.Globally,sellersusingFulfillmentByAmazonstowedmorethanonemillionuniqueitemsinourfulfillmentcenternetwork,therebymakingtheseitemsavailableforFreeSuperSaverShippingandAmazonPrime.•AmazonWebServicescontinueditsrapidp