Exclusive Trading

eBay Acquires Minority Interest in craigslist

SAN FRANCISCO & SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 13, 2004--eBay, The World's Online Marketplace (Nasdaq:EBAY) (www.ebay.com), and craigslist, an online community featuring classifieds and forums (www.craigslist.org), announced today that eBay has acquired a preexisting minority ownership interest in craigslist of approximately 25%. The resulting relationship will allow eBay and craigslist to share expertise, resources, and creativity on behalf of online communities everywhere.
With dedicated sites in 45 cities around the world, craigslist is an online meeting place for millions of people looking to share ideas, meet a friend, find a job, or locate an apartment. The site is a magnet for people who want to trade in such goods as tickets, furniture, cars, and sporting goods.

"craigslist is an excellent example of how the Internet brings people together," said Meg Whitman, president and CEO of eBay. "Whether it's to trade goods, help neighbors or speak out on important issues, craigslist has become the online gathering place for local communities. I look forward to working with the craigslist team as its vision moves into the future."

"Meg has helped us preserve the craigslist mission, and I really appreciate it," said Craig Newmark, craigslist founder and chairman.

"We're thrilled to have found a shareholder of eBay's stature, committed to helping foster the craigslist mission and philosophy," said Jim Buckmaster, president and CEO of craigslist. "Craig and I believe this new relationship will undoubtedly have positive implications for both the eBay and craigslist communities."

Other terms of the transaction were not disclosed. eBay does not expect its minority investment in craigslist to affect its financial guidance for the third quarter of 2004 or the full year 2004 as issued in connection with its second quarter earnings release on July 21, 2004.

About craigslist

Founded in 1995 by Craig Newmark, craigslist serves as a trustworthy, democratic, and efficient platform for fulfilling human needs, as guided by communities everywhere. craigslist includes classified listings for jobs, housing, goods and services, personals, events, and community, plus a wide variety of discussion forums.

About eBay

eBay is The World's Online Marketplace(R). Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. On any given day, there are millions of items across thousands of categories for sale on eBay. eBay enables trade on a local, national and international basis with customized sites in markets around the world. Through an array of services, such as its payment solution provider PayPal, eBay is enabling global e-commerce for an ever-growing online community.

Forward-Looking Statements

This announcement contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the reaction of users of eBay and craigslist to the transaction, the future growth of craigslist's services, and the reaction of competitors to the transaction. More information about potential factors which could affect eBay's business and financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2003, and the company's Quarterly Reports on Form 10-Q. All forward looking statements are based on information available to eBay on the date hereof, and the company assumes no obligation to update such statements.

Contacts


eBay
Hani Durzy, 408-376-7458
hdurzy@ebay.com
or
Best Public Relations (for craigslist)
Susan MacTavish Best, 415-505-0301
susan@bestpr.net

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