eBay Launches Classifieds Web Sites

Business Wire, March 8, 2005

SAN JOSE, Calif. -- eBay (Nasdaq:EBAY), the World's Online Marketplace, today announced its launch of online classifieds Web sites in select international markets. Launched on February 28 under the brand Kijiji, the Web sites give people living and working in the same city a convenient, fun and free way to meet, share ideas, trade goods, and find information or things they want locally.

Kijiji is currently available in more than 50 cities in Canada, China, France, Germany, Italy, and Japan. From building friendships and trading large appliances to chatting about the city's best restaurants or looking for a babysitter, Kijiji is designed to help people find what they need. Based on both personal connections and commerce, individuals can list and find items on Kijiji free of charge.

Kijiji is a start-up within eBay created by a small team of entrepreneurial employees. eBay endorsed the experiment late last year. Alex Kazim, senior vice president of new ventures at eBay, is responsible for the Kijiji initiative.

"Kijiji builds local communities online, giving neighbors a way to come together around local needs and interests," said Kazim. "We're excited about making Kijiji the online neighborhood meeting place for local residents in cities around the world."

The launch of Kijiji will not have a material impact on 2005 revenues and is incorporated in eBay's financial guidance as issued in connection with its fourth quarter earnings announcement on January 19, 2005.

About Kijiji

Kijiji, which means "village" in Swahili, is a group of classifieds-style Web sites that offer a convenient, fun, and easy-to-use way for people in the same city to meet, share ideas, trade goods, and help one another out in a range of areas such as housing, jobs, and personals. Kijiji sites are currently available in more than 50 cities around the world.

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 regarding the expected impact of the launch of the Kijiji Web sites on eBay's financial results. Those statements involve risks and uncertainties, and 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 potential users of Kijiji's services and current users of eBay's services, the future growth of Kijiji's services, and the reaction of competitors to the launch of the sites. More information about potential factors which could affect eBay's business and financial results is included in eBay's recently filed Annual Report on Form 10-K. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.