Wal-Mart Sues Online Bookseller
Amazon.com Raid Of Staff Alleged
 

                  BENTONVILLE, Ark. Oct. 16—Wal-Mart Stores Inc. sued
                  Amazon.com Inc., alleging that the nation's No. 1 online bookseller hired
                  current and former employees to obtain access to trade secrets of the
                  world's largest retailer.

                  In a lawsuit filed today in state court in Arkansas, Wal-Mart officials
                  contend that Seattle-based Amazon.com and several units are luring away
                  workers from Wal-Mart's Information Systems Division to help expand its
                  Internet retailing system for selling books, compact discs and drugs.

                  Amazon.com has hired 15 current or former employees or consultants,
                  including Richard Dalzell, Wal-Mart's former chief information officer,
                  Wal-Mart officials said.

                  By targeting individuals who know Wal-Mart's computerized
                  merchandising and distribution systems, Amazon.com is seeking access to
                  trade secrets and confidential information the workers learned during their
                  time at the discount-store chain, Wal-Mart's suit said.

                  "Our information and logistics systems are world renowned and a key
                  factor in our success," said Robert Rhodes, senior vice president and
                  general counsel for Wal-Mart. "Clearly, Amazon.com has targeted a
                  specific combination of individuals for their expertise and inside knowledge
                  of Wal-Mart's distribution, data warehousing and merchandise
                  management systems."

                  Some analysts said Wal-Mart's extensive information database is only
                  second in size to the U.S. government. Besides raw sales, profit margin
                  and inventory numbers, the system also documents what consumers buy
                  together, like cereal and milk.

                  A spokesman for Amazon.com declined to comment on the lawsuit, which
                  also cited its affiliates Kleiner Perkins Caufield & Byers and
                  Drugstore.com.