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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

PR Newswire
SAN JOSE, Calif., Apr 25, 2000 /PRNewswire via COMTEX/ -- eBay Inc. ((Nasdaq:
EBAY);, the world's largest online personal trading community,
today reported financial results for its first quarter ended March 31, 2000.

(Photo: )

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

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 that is intended to create the
Internet's largest auction-style marketplace for consumers and dealers to buy
and sell used cars. ( )

-- Announced a strategic alliance between Billpoint and Wells Fargo & Company to
combine eBay's trading volume with Wells Fargo's payments expertise. ( )

-- Announced a comprehensive four-year agreement between eBay and, 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. ( )

-- Fully integrated Billpoint into eBay payment services, giving users the ease
and convenience of paying online.

-- Initiated listings fees for eBay Germany. ( )

-- Grew revenue from Regional categories 2.5 times faster than the overall site.
( )

-- Launched eBay Business Exchange to serve the small business-to-business
segment. ( )

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

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.


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