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Investor Relations

eBAY INC. ANNOUNCES FIRST QUARTER 2000 FINANCIAL RESULTS

eBay Reported a Record $1.15 Billion in Gross Merchandise Sales in the Quarter, Surpassing the $1 Billion mark for the first time

eBay Board of Directors Approves 2-for-1 Common Stock Split

San Jose, CA, April 25, 2000 - eBay Inc. (NASDAQ: EBAY; www.ebay.com), the world's largest online personal trading community, today reported financial results for its first quarter ended March 31, 2000.

The Company generated consolidated net revenues of $85.8 million in the first quarter of 2000, a 100 percent increase over the $42.8 million reported for the same period last year. Consolidated net income for the quarter was $6.3 million, or $0.05 per share on a diluted basis. eBay's consolidated net income excluding the effects of certain non-cash and stock-related charges was $8.0 million, or $0.06 per diluted share, compared with $4.8 million, or $0.04 per diluted share during the first quarter of 1999.

"In the first quarter of 2000, eBay achieved unprecedented financial and operational success," said Meg Whitman, President and CEO of eBay. "The Company is firing on all cylinders as it expands to become a truly global trading platform."

Key operating metrics and execution highlights:

• Online Net Revenues - eBay's online net revenues reached $77.3 million, a 127 percent increase over the $34.0 million in the first quarter of 1999.
• Gross Merchandise Sales - eBay achieved $1.15 billion in gross merchandise sales (the value of goods traded on the eBay site), surpassing the $1 billion mark for the first time and realizing a 113 percent increase over the first quarter of 1999.
• Registered Users - eBay expanded the number of registered users to 12.6 million by quarter end, an increase of 230 percent from 3.8 million on March 31, 1999. Moreover, the Company added a record 2.6 million new users in the quarter, more than in any other quarter in the Company's history.
• Auctions Hosted - eBay hosted 53.6 million auctions during the first quarter, compared to 22.9 million during the same period last year. This represents year-over-year growth of 133 percent.
• Announced a joint venture with Autotrader.com that is intended to create the Internet's largest auction-style marketplace for consumers and dealers to buy and sell used cars. (http://pages.ebay.com/auto-index.html)
• Announced a strategic alliance between Billpoint and Wells Fargo & Company to combine eBay's trading volume with Wells Fargo's payments expertise. (http://www.ebay.com/help/buyerguide/bp-overview.html)
• Announced a comprehensive four-year agreement between eBay and Go.com, a subsidiary of The Walt Disney Company, to develop and promote online trading on all of Disney's Internet properties.
• Launched eBay Japan through a joint venture agreement with NEC and its BIGLOBE internet service provider. (http://pages.ebay.com/jpbridge.html)
• Fully integrated Billpoint into eBay payment services, giving users the ease and convenience of paying online.
• Initiated listings fees for eBay Germany. (http://www.ebay.de)
• Grew revenue from Regional categories 2.5 times faster than the overall site. (http://pages.ebay.com/search/items/search.html)
• Launched eBay Business Exchange to serve the small business-to-business segment. (http://pages.ebay.com/business_exchange/)

Financial and operating summary:

The primary contributor to the increase in the Company's net revenues for the quarter was on-line auction activity. As expected, net revenues from eBay's traditional off-line auction subsidiaries decreased seasonally from the prior quarter.

In the first quarter, the Company continued to make significant investments in people, customer support, and equipment to support the site's infrastructure. Personnel costs were the largest single driver of expense growth. Both product development and general and administrative costs increased due to personnel additions and depreciation and amortization expense. General and administrative costs were impacted by increases in personnel and legal costs. Sales and marketing expenses also increased over the prior quarter as the Company invested in additional on-line advertising.

For the first quarter, eBay recorded consolidated non-cash amortization charges of $1.1 million related to stock-based compensation and $275,000 associated with acquired intangibles. The Company also recorded charges of $901,000 associated with payroll taxes on the exercise of employee stock options. In addition, as a result of an accounting policy change relating to the recognition of listing fees, eBay had a one-time negative impact to online revenues of $1.4 million. eBay recorded a consolidated tax provision of $4.6 million representing an effective tax rate of 42 percent of first quarter consolidated pretax income.

The Company's overall balance sheet continued to improve during the first quarter of 2000. Consolidated assets increased $72.0 million over the fourth quarter of 1999, primarily driven by increases of $44.8 million in cash and investments, $13.5 million in net fixed assets, and eBay's positive cash flow.

In other balance sheet activity, as part of the strategic alliance between Wells Fargo and Billpoint, Wells Fargo purchased a 35 percent equity interest in Billpoint from eBay. In addition, as part of the joint venture between NEC and eBay, NEC took a 30 percent equity interest in eBay Japan.

In addition, the Board of Directors of eBay has approved a 2-for-1 Common Stock split for shares of record as of May 9, 2000. The split will be effective on May 24, 2000.

About eBay

eBay (www.ebay.com), the world's personal trading community^TM, pioneered person-to-person online trading. Founded in 1995, eBay developed an efficient and entertaining trading site on the Web. Currently, there are millions of items listed for sale. More than half a million items are added daily in more than 4,300 categories including: automotive; antiques and art; books, movies and music; coins and stamps; collectibles; computers; dolls and doll houses; Great Collections; jewelry and gemstones; photo and electronics; pottery and glass; sports; toys and bean bag plush; and everything else. eBay is also engaged in the traditional auction business through its subsidiaries, Butterfield & Butterfield and Kruse International.

Forward Looking Statements

This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its business and user base. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the Company's need to maintain site stability, to manage significant growth in all aspects of its business, to deal with the increasingly competitive environment for online trading and to successfully expand its model outside of the U.S. More information about potential factors which could affect the Company's business and financial results is included in the Company's Form 10-K for the period ended December 31, 1999 under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." All forward looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.

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