eBay's Kijiji Acquires Classifieds Web Sites

Gumtree.com, founded in London in 2000 by Michael Pennington andSimon Crookall, is a leading local classifieds site in the UnitedKingdom. A popular online community center for apartment rentals,employment, and goods and services, Gumtree offers multiple city sitesin a number of countries including the United Kingdom, Australia, NewZealand, and South Africa.

LoQUo.com, founded in Barcelona in 2002 by Ubaldo Huerta, is aleading community-focused classifieds site in Spain. A local onlinemeeting place, LoQUo specializes in housing, personals, employment,jobs and practical items for sale. LoQUo offers multiple city sites inSpain and other European countries.

"Gumtree and LoQUo are key classifieds sites in the UK and Spain,respectively, and we are pleased to have them in the Kijiji family,"said Alex Kazim, senior vice president of new ventures at eBay,responsible for Kijiji. "This is an important step forward in ourstrategy to expand our global portfolio of Web sites."

eBay does not expect either acquisition to have a material impacton 2005 net revenues and earnings per share, and does not expecteither acquisition to affect eBay's financial guidance as issued inconnection with its first quarter earnings announcement on April 20,2005.

Further terms of the agreements were not disclosed.

About Kijiji

Kijiji, which means "village" in Swahili, is a group ofclassifieds-style Web sites that offer a convenient, fun, andeasy-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 ashousing, jobs, and personals. Kijiji is currently available in morethan 90 cities in Austria, Canada, China, France, Germany, Italy,Japan, Switzerland, and Taiwan. It is a start-up within eBay createdby a small team of entrepreneurial employees.

About Gumtree.com

Launched in March 2000 and based in the United Kingdom,Gumtree.com is a community-based Web site that enables users to chat,find jobs, make friends, find accommodations or buy and sell a rangeof goods. Gumtree is available in multiple cities in a number ofcountries including the United Kingdom, Australia, New Zealand, andSouth Africa.

About LoQUo.com

Launched in September 2002 and based in Spain, LoQUo.com is acity-based classifieds Web site ideal for a range of needs, fromrenting an apartment and getting a job, to selling a car and buying arefrigerator. An online community gathering place, LoQUo is availablein multiple cities in Spain and a number of other European countries.

Forward-Looking Statements

This announcement contains forward-looking statements regardingthe expected impact of the acquisitions of Gumtree.com and LoQUo.comon eBay's financial results. Those statements involve risks anduncertainties, and actual results could differ materially from thosediscussed. Factors that could cause or contribute to such differencesinclude, but are not limited to, the reaction of users of Gumtree'sand LoQUo's services and users of eBay's services, the future growthof Gumtree's and LoQUo's services, and the reaction of competitors tothe acquisitions. More information about potential factors which couldaffect eBay's business and financial results is included in eBay'srecently filed Quarterly Report on Form 10-Q. All forward-lookingstatements are based on information available to eBay on the datehereof, and eBay assumes no obligation to update such statements.