EXHIBIT 99.1

eBAY INC. ANNOUNCES SECOND QUARTER 2004 FINANCIAL RESULTS

— Company Reports Record Q2 Net Revenues of $773.4 Million, Up 52% Year Over Year —
— Achieves Q2 GAAP Diluted EPS of $0.28 and Pro Forma Diluted EPS of $0.29 —
— Raises 2004 Net Revenues and EPS Guidance —

San Jose, CA, July 21, 2004 – eBay Inc. (Nasdaq: EBAY; www.ebay.com), The World’s Online Marketplace, reported financial results for its quarter ended June 30, 2004.

eBay reported record consolidated Q2-04 net revenues of $773.4 million, up 52% year over year; operating income of $253.9 million, up 108% year over year; and pro forma operating income of $275.6 million, up 99% year over year. Operating income was 33% of net revenues and pro forma operating income was 36% of net revenues.

Consolidated net income in Q2-04 was $190.4 million, or $0.28 per diluted share. eBay’s pro forma consolidated net income, excluding certain items, was $197.7 million, or $0.29 per diluted share.

These results exceeded the company’s guidance of $760 million for net revenues, $0.24 for earnings per diluted share and $0.26 for pro forma earnings per diluted share.

“Q2 was another great quarter for eBay, and we’re more confident than ever in the long-term potential of our business,” said Meg Whitman, President and CEO of eBay. “In light of typical seasonality, we continued to gain momentum thanks to the enormous dedication of our global community.”

Key Financial and Operating Metrics

Consolidated Net Revenues - Consolidated net revenues totaled a record $773.4 million, which represented an increase of 52% from the $509.3 million reported in Q2-03.

Transaction Revenues - Consolidated net transaction revenues totaled a record $751.7 million, which represented an increase of 51% from the $496.9 million reported in Q2-03.

• eBay U.S. Net Transaction Revenues - eBay U.S. net transaction revenues totaled $319.1 million in Q2-04, reflecting 32% year-over-year growth.

• eBay International Net Transaction Revenues - eBay International net transaction revenues totaled $273.7 million in Q2-04, representing 76% year-over-year growth.

• Payments Net Transaction Revenues – Payments net transaction revenues totaled $158.8 million in Q2-04, representing 60% year-over-year growth.

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eBay Announces Q2-04 Earnings (cont.)

Confirmed Registered Users - Cumulative confirmed registered users at the end of Q2-04 totaled a record 114.0 million, representing a 51% increase over the 75.3 million users reported at the end of Q2-03.

Active Users - Active users, the number of users on the eBay platform who bid, bought or listed over the trailing 12 months, increased to 48.0 million, a 41% increase over the 34.1 million active users reported in the same period a year ago.

Listings – New listings totaled a record 332.3 million in Q2-04, 48% higher than the 225.0 million listings reported in Q2-03. New listings in Q2-04 includes 16.4 million new listings generated from eBay Stores inventory during the quarter, versus 3.4 million new stores inventory listings in Q2-03.

Gross Merchandise Volume (GMV) – Gross Merchandise Volume, the total value of all successfully closed listings on eBay’s trading platforms, was $8.0 billion, representing a 42% year-over-year increase from the $5.6 billion reported in Q2-03. The definition of GMV and the basis for calculation is the same used historically to define Gross Merchandise Sales (GMS). The name of this metric has been changed to be more consistent with other metrics used and to provide better clarity.

Total Payments Accounts – eBay’s PayPal business had 50.4 million total accounts at the end of Q2-04, a 62% increase from the 31.1 million reported in Q2-03.

Total Payment Volume (TPV) – PayPal’s TPV was $4.4 billion in Q2-04, a 53% increase from the $2.8 billion reported in Q2-03.

Gross Profit - Gross profit was $626.9 million, or 81% of net revenues, which is consistent with the percentage reported in Q2-03.

Operating Income - Operating income was $253.9 million, or 33% of net revenues, a 108% increase over the $122.1 million reported in Q2-03. Pro forma operating income increased 99% year over year to $275.6 million, or 36% of net revenues, compared to 27% in Q2-03.

GAAP Net Income - GAAP net income increased 107% year over year to $190.4 million, or $0.28 per diluted share.

Pro Forma Net Income - Pro forma net income increased 92% year over year to $197.7 million, or $0.29 per diluted share.

Operating and Free Cash Flows - Operating cash flows totaled $263.1 million. Free cash flows, representing operating cash flows less capital expenditures, totaled $197.4 million.

Key Category Performance - Based on Q2-04 GMV, eBay has twelve categories that deliver $1 billion or more in worldwide annualized GMV: eBay Motors at $9.8 billion; Consumer Electronics at $2.5 billion; Computers at $2.4 billion; Clothing and Accessories at $2.2 billion; Books/Movies/Music at $2.1 billion; Sports at $2.0 billion; Home & Garden at $1.6 billion;

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eBay Announces Q2-04 Earnings (cont.)

Collectibles at $1.4 billion; Toys at $1.3 billion; Jewelry & Watches at $1.2 billion; Cameras & Photo at $1.1 billion; and Business & Industrial at $1.1 billion.

Fixed Price Trading - eBay’s fixed price trading contributed approximately $2.2 billion or 27% of total GMV during Q2-04, primarily from eBay’s “Buy It Now” feature.

eBay Stores – At the end of Q2-04, eBay hosted approximately 181,000 stores worldwide, with approximately 121,000 stores hosted on the U.S. site.

Patent Litigation – eBay, PayPal and AT&T have reached agreement and are entering into a Stipulated Order of Dismissal regarding their patent infringement lawsuit in United States District Court in Delaware. The parties have agreed to keep the details of their arrangement confidential. eBay does not believe that the terms will result in a material impact on its results of operations or cash flows.

Consolidated Financial and Operating Summary

eBay reported record consolidated net revenues of $773.4 million in Q2-04, representing a 52% year-over-year increase. On a year-over-year basis, consolidated net revenues reflected a foreign currency translation benefit in Q2-04 of approximately $26.0 million. On a sequential basis, consolidated net revenues were negatively impacted by foreign currency translation in Q2-04 of approximately $11.3 million, primarily related to the Euro.

Gross profit was $626.9 million, or 81% of net revenues, which is consistent with the percentage reported in Q2-03.

Sales and marketing expenses totaled $189.2 million, or 24% of net revenues, compared with 26% reported in Q2-03. While sales and marketing expenses decreased as a percentage of net revenues, the absolute dollars increased, primarily as a result of global increases in both on-line and off-line marketing efforts and international expansion.

Product development expenses totaled $60.0 million, or 8% of net revenues, consistent with 8% of net revenues reported in Q2-03. Total product development expenses in Q2-04 do not include $9.7 million of required cost capitalization for major site and other product development efforts.

General and administrative costs totaled $102.9 million, or 13% of net revenues, down from the 14% of net revenues reported in Q2-03. While general and administrative costs decreased as a percentage of net revenues, the absolute dollars increased, primarily as a result of increases in headcount and professional services.

Income from operations totaled $253.9 million during Q2-04, a 108% increase over the $122.1 million reported in Q2-03. On a pro forma basis, income from operations totaled $275.6 million, a 99% increase over the $138.7 million reported in Q2-03. Included in both the GAAP and pro forma Q2-04 consolidated income from operations results was a $19.8 million year-over-year net benefit from changes in foreign currencies. On a sequential basis, both the GAAP and pro forma

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eBay Announces Q2-04 Earnings (cont.)

consolidated income from operations results were negatively impacted by a foreign currency translation in Q2-04 of approximately $6.1 million, primarily related to the Euro.

Interest and other income, net, totaled $22.4 million in Q2-04, up from the $10.9 million reported in Q2-03. The increase in Q2-04 was primarily the result of a gain of approximately $7.3 million due to the sale of our equity investment in IPIX Corporation. This gain has been excluded from pro forma net income.

The GAAP effective tax rate for Q2-04 was 30%, consistent with the GAAP effective tax rate for Q2-03. The pro forma effective tax rate for Q2-04 was 31%, an increase from the 30% pro forma effective tax rate for Q2-03. The higher pro forma effective tax rate for Q2-04 compared to Q2-03 reflects an increase in our non-deductible expenses related primarily to acquisitions.

At the end of Q2-04, the company had $3.3 billion in aggregate cash and investments and more than $6.8 billion in total assets.

The company reported $263.1 million in operating cash flows and $65.7 million of capital expenditures in Q2-04, resulting in free cash flows of $197.4 million. Free cash flows for Q1-04 totaled $295.3 million. The decrease in Q2-04 is primarily due to the timing of vendor payments.

Business Outlook

For the remainder of 2004, and consistent with eBay’s long-term opportunity and financial strategy, the company plans to invest significantly in China, the international expansion of PayPal, product development, customer support, Trust & Safety, infrastructure, and sales and marketing in the U.S., Germany, the U.K., Taiwan, and China.

Net Revenues – The company now expects that consolidated net revenues for 2004 could be as high as $3.185 billion, $35 million higher than the company’s most recent guidance. This improved outlook derives from the strength of eBay’s U.S., International and Payments businesses. From a quarterly perspective, eBay expects that consolidated net revenues will be approximately $770 million in Q3-04, approximately even with Q2-04, and as high as $886 million in Q4-04. eBay’s guidance for Q3-04 and Q4-04 is based on an assumed weighted average exchange rate of US $1.20 per Euro.

GAAP Diluted EPS – eBay now expects that GAAP earnings per diluted share for the full year 2004 could be as high as $1.10, $0.04 higher than the company’s most recent guidance. From a quarterly perspective, eBay estimates that GAAP earnings per diluted share could be as high as $0.24 in Q3-04 and $0.30 in Q4-04.

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eBay Announces Q2-04 Earnings (cont.)

Pro Forma Diluted EPS – eBay now expects that pro forma earnings per diluted share for the full year 2004 could be as high as $1.17, $0.04 higher than the company’s most recent guidance. From a quarterly perspective, eBay estimates pro forma earnings per diluted share could be as high as $0.25 in Q3-04 and $0.32 in Q4-04.

Effective Tax Rate – eBay’s current estimate for its 2004 effective tax rate is 30% on a GAAP basis and 31% on a pro forma basis, which is consistent with previous guidance.

Capital Expenditures – eBay expects its capital expenditures to total $315 million for the full year 2004, without taking into account acquisitions, which is $65 million higher than the company’s most recent guidance. This is primarily due to the build out of a new data center to ensure redundancy and scalability.

Non-GAAP Measures

To supplement the company’s consolidated financial statements presented in accordance with GAAP, eBay uses non-GAAP measures of certain components of financial performance, including gross profit, operating income, net income, earnings per share, cash flows, and effective tax rate, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and the company’s prospects for the future. Specifically, the company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. In addition, because eBay has historically reported certain non-GAAP results to investors, the company believes the inclusion of non-GAAP measures provides consistency in the company’s financial reporting. These measures should be considered in addition to results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute for, or superior to, GAAP results. Consistent with the company’s historical practice, the non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.

About eBay

eBay is The World’s Online Marketplace®. 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 press release contains forward-looking statements relating to the future performance of eBay and its consolidated subsidiaries. Those statements involve risks and uncertainties, and the company’s 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 manage an increasingly large company with a broad range of businesses; the company’s ability to deal with the increasingly competitive environment for online trading, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; the litigation, regulatory, credit card association, and other risks specific to PayPal; the company’s need to manage other regulatory, tax, and

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eBay Announces Q2-04 Earnings (cont.)

litigation risks even as its product offerings expand and its services are offered in more jurisdictions; the company’s ability to upgrade and develop its systems, infrastructure and customer service capabilities to accommodate growth at a reasonable cost; the company’s ability to maintain site stability and performance on all of its sites; the company’s ability to continue to expand its model to new types of merchandise and sellers; the company’s ability to continue to expand outside of the US; fluctuations in foreign exchange rates; the need to manage the integration of announced and prospective acquisitions; and the costs and benefits of announced and prospective acquisitions and other commercial transactions.

More information about factors that could affect the company’s operating results is included under the captions “Risk Factors That May Affect Results of Operations and Financial Condition” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s investor relations site at http://investor.ebay.com. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the company on the date hereof. eBay assumes no obligation to update such statements.

###

Investor Relations Contact:	Tracey Ford	408-376-7205
Media Relations Contact:	Hani Durzy	408-376-7458
Investor Information Request:	408-376-7493
Company News:	http://www.businesswire.com
Investor Relations Website:	http://investor.ebay.com

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eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
(U.S. Dollars In Thousands)

	December 31,		June 30,
	2003		2004
ASSETS
Current assets:
Cash and cash equivalents	$	1,381,513	$	1,588,713
Short-term investments		340,576		548,924
Accounts receivable, net		225,871		242,287
Funds receivable		79,893		143,297
Other current assets		118,029		364,847
Total current assets		2,145,882		2,888,068
Long-term investments		934,171		1,175,098
Restricted cash and investments		127,432		1,335
Property and equipment, net		601,785		639,140
Goodwill		1,719,311		1,834,662
Intangible assets, net		274,057		274,642
Other assets		17,496		19,552
	$	5,820,134	$	6,832,497
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	64,633	$	68,194
Funds payable and amounts due to customers		106,568		233,042
Accrued expenses and other current liabilities		356,491		329,833
Deferred revenue and customer advances		28,874		39,643
Short-term obligations		2,840		124,274
Income taxes payable		87,870		102,056
Total current liabilities		647,276		897,042
Long-term obligations		124,476		887
Deferred tax liabilities		79,238		62,397
Other liabilities		33,494		32,356
Minority interests		39,408		43,730
Total liabilities		923,892		1,036,412
Total stockholders’ equity		4,896,242		5,796,085
	$	5,820,134	$	6,832,497

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eBay Inc.
Unaudited Condensed Consolidated Statement of Income
(U.S. Dollars In Thousands, Except Per Share Amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2003			2004			2003			2004
Net revenues	$	509,269		$	773,412		$	985,761		$	1,529,651
Cost of net revenues		99,150			146,531			191,248			280,889
Gross profit		410,119			626,881			794,513			1,248,762
Operating expenses:
Sales and marketing		134,616			189,150			258,376			381,840
Product development		38,819			59,978			73,151			112,676
General and administrative		69,476			102,940			132,476			193,576
Patent litigation expense		29,965			—			29,965			—
Payroll tax on employee stock options		3,184			5,186			6,474			10,332
Amortization of acquired intangible assets		11,976			15,769			23,844			29,732
Total operating expenses		288,036			373,023			524,286			728,156
Income from operations		122,083			253,858			270,227			520,606
Interest and other income (expense), net		10,909			22,443			18,613			45,942
Interest expense		(37	)		(2,047	)		(68	)		(4,378	)
Impairment of certain equity investments		—			—			(230	)		—
Income before income taxes and minority interests		132,955			274,254			288,542			562,170
Provision for income taxes		(39,543	)		(81,598	)		(88,561	)		(167,354	)
Minority interests		(1,544	)		(2,261	)		(3,922	)		(4,321	)
Net income	$	91,868		$	190,395		$	196,059		$	390,495
Net income per share:
Basic	$	0.14		$	0.29		$	0.31		$	0.60
Diluted	$	0.14		$	0.28		$	0.30		$	0.58
Weighted average shares:
Basic		636,680			658,069			632,022			655,287
Diluted		656,147			682,421			649,609			678,150

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eBay Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Income
(U.S. Dollars In Thousands, Except Per Share Amounts)

	Three Months Ended											Three Months Ended
	June 30, 2003											June 30, 2004
				Pro Forma											Pro Forma
	Reported			Entries					Pro Forma			Reported			Entries					Pro Forma
Net revenues	$	509,269		$	—				$	509,269		$	773,412		$	—				$	773,412
Cost of net revenues		99,150			(64	)	(a	)		99,086			146,531			(4	)	(a	)		146,527
Gross profit		410,119			64					410,183			626,881			4					626,885
Operating expenses:
Sales and marketing		134,616			(280	)	(a	)		134,336			189,150			(14	)	(a	)		189,136
Product development		38,819			(358	)	(a	)		38,461			59,978			(114	)	(a	)		59,864
General and administrative		69,476			(797	)	(a	)		68,679			102,940			(685	)	(a	)		102,255
Patent litigation expense		29,965			—					29,965			—			—					—
Payroll tax on employee stock options		3,184			(3,184	)	(b	)		—			5,186			(5,186	)	(b	)		—
Amortization of acquired intangible assets		11,976			(11,976	)	(c	)		—			15,769			(15,769	)	(c	)		—
Total operating expenses		288,036			(16,595	)				271,441			373,023			(21,768	)				351,255
Income from operations		122,083			16,659					138,742			253,858			21,772					275,630
Interest and other income (expense), net		10,909			(979	)	(d	)		9,930			22,443			(7,298	)	(e	)		15,145
Interest expense		(37	)		—					(37	)		(2,047	)		—					(2,047	)
Impairment of certain equity investments		—			—					—			—			—					—
Income before income taxes and minority interests		132,955			15,680					148,635			274,254			14,474					288,728
Provision for income taxes		(39,543	)		(4,479	)	(f	)		(44,022	)		(81,598	)		(7,207	)	(f	)		(88,805	)
Minority interests		(1,544	)		—					(1,544	)		(2,261	)		—					(2,261	)
Net income	$	91,868		$	11,201				$	103,069		$	190,395		$	7,267				$	197,662
Net income per share:
Basic	$	0.14							$	0.16		$	0.29							$	0.30
Diluted	$	0.14							$	0.16		$	0.28							$	0.29
Weighted average shares:
Basic		636,680								636,680			658,069								658,069
Diluted		656,147								656,147			682,421								682,421
Operating margin		24	%		3	%				27	%		33	%		3	%				36	%

Notes:

(a)	Non-cash stock based compensation expense
(b)	Employer payroll taxes on employee non-qualified stock option gains
(c)	Amortization of acquired intangible assets
(d)	Gain on sale of certain real estate properties and recovery of fully reserved receivables
(e)	Gain on sale of equity investment
(f)	Income taxes associated with certain pro forma entries

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eBay Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Income
(U.S. Dollars In Thousands, Except Per Share Amounts)

	Six Months Ended											Six Months Ended
	June 30, 2003											June 30, 2004
				Pro Forma											Pro Forma
	Reported			Entries					Pro Forma			Reported			Entries					Pro Forma
Net revenues	$	985,761		$	—				$	985,761		$	1,529,651		$	—				$	1,529,651
Cost of net revenues		191,248			(148	)	(a	)		191,100			280,889			(28	)	(a	)		280,861
Gross profit		794,513			148					794,661			1,248,762			28					1,248,790
Operating expenses:
Sales and marketing		258,376			(698	)	(a	)		257,678			381,840			(89	)	(a	)		381,751
Product development		73,151			(875	)	(a	)		72,276			112,676			(303	)	(a	)		112,373
General and administrative		132,476			(2,050	)	(a	)		130,426			193,576			(953	)	(a	)		192,623
Patent litigation expense		29,965			—					29,965			—			—					—
Payroll tax on employee stock options		6,474			(6,474	)	(b	)		—			10,332			(10,332	)	(b	)		—
Amortization of acquired intangible assets		23,844			(23,844	)	(c	)		—			29,732			(29,732	)	(c	)		—
Total operating expenses		524,286			(33,941	)				490,345			728,156			(41,409	)				686,747
Income from operations		270,227			34,089					304,316			520,606			41,437					562,043
Interest and other income (expense), net		18,613			(979	)	(d	)		17,634			45,942			(7,298	)	(e	)		38,644
Interest expense		(68	)		—					(68	)		(4,378	)		—					(4,378	)
Impairment of certain equity investments		(230	)		230		(f	)		—			—			—					—
Income before income taxes and minority interests		288,542			33,340					321,882			562,170			34,139					596,309
Provision for income taxes		(88,561	)		(10,130	)	(g	)		(98,691	)		(167,354	)		(16,186	)	(g	)		(183,540	)
Minority interests		(3,922	)		—					(3,922	)		(4,321	)		—					(4,321	)
Net income	$	196,059		$	23,210				$	219,269		$	390,495		$	17,953				$	408,448
Net income per share:
Basic	$	0.31							$	0.35		$	0.60							$	0.62
Diluted	$	0.30							$	0.34		$	0.58							$	0.60
Weighted average shares:
Basic		632,022								632,022			655,287								655,287
Diluted		649,609								649,609			678,150								678,150
Operating margin		27	%		4	%				31	%		34	%		3	%				37	%

Notes:

(a)	Non-cash stock based compensation expense
(b)	Employer payroll taxes on employee non-qualified stock option gains
(c)	Amortization of acquired intangible assets
(d)	Gain on sale of certain real estate properties and recovery of fully reserved receivables
(e)	Gain on sale of equity investment
(f)	Impairment of certain equity investments
(g)	Income taxes associated with certain pro forma entries

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eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(U.S. Dollars In Thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2003			2004			2003			2004
Cash flows from operating activities:
Net income	$	91,868		$	190,395		$	196,059		$	390,495
Adjustments:
Provision for doubtful accounts and authorized credits		10,496			22,697			19,633			38,301
Provision for transaction losses		9,080			10,706			18,073			22,350
Depreciation and amortization		38,507			59,434			70,527			115,119
Amortization of unearned stock-based compensation		1,499			818			3,771			1,374
Tax benefit on the exercise of employee stock options		21,597			83,197			62,937			159,837
Impairment of certain equity investments		—			—			230			—
Minority interests		2,379			2,261			4,157			4,321
Changes in assets and liabilities, net of acquisition effects:
Accounts receivable		(20,252	)		(38,663	)		(55,076	)		(53,717	)
Funds receivable		822			(178	)		(42,049	)		(61,869	)
Other current assets		1,620			2,934			2,878			(112,811	)
Other non-current assets		(5,743	)		1,842			(4,603	)		(2,825	)
Deferred tax liabilities, net		(1,475	)		(15,660	)		(859	)		(18,281	)
Accounts payable		10,407			(40,563	)		17,233			1,778
Funds payable and amounts due to customers		2,915			(13,161	)		49,796			130,491
Accrued expenses and other liabilities		26,437			(11,157	)		31,341			(9,133	)
Deferred revenue and customer advances		863			1,869			2,607			9,719
Income taxes payable		17,662			6,329			22,033			14,196
Net cash provided by operating activities		208,682			263,100			398,688			629,345
Cash flows from investing activities:
Purchases of property and equipment		(186,079	)		(65,653	)		(229,987	)		(136,565	)
Purchases of investments		(727,391	)		(385,754	)		(862,544	)		(1,209,537	)
Maturities and sales of investments		271,014			235,452			489,374			752,880
Purchases of intangibles and other non-current assets		—			(1,503	)		—			(2,448	)
Acquisitions, net of cash acquired		—			(137,852	)		(4,389	)		(172,515	)
Net cash provided by investing activities		(642,456	)		(355,310	)		(607,546	)		(768,185	)
Cash flows from financing activities:
Proceeds from issuance of common stock, net		255,588			182,205			472,973			355,294
Principal payments on long-term obligations		(491	)		(1,008	)		(798	)		(2,155	)
Net cash provided by financing activities		255,097			181,197			472,175			353,139
Effect of exchange rate changes on cash and cash equivalents		15,816			(1,982	)		18,927			(7,099	)
Net increase (decrease) in cash and cash equivalents		(162,861	)		87,005			282,244			207,200
Cash and cash equivalents at beginning of period		1,554,418			1,501,708			1,109,313			1,381,513
Cash and cash equivalents at end of period	$	1,391,557		$	1,588,713		$	1,391,557		$	1,588,713
Net cash provided by operating activities	$	208,682		$	263,100		$	398,688		$	629,345
Less: Purchases of property and equipment		(186,079	)		(65,653	)		(229,987	)		(136,565	)
Free cash flow	$	22,603		$	197,447		$	168,701		$	492,780

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eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(U.S. Dollars In Thousands, Except Percentages)

Net Revenues by Type

	June 30,			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2004			2004
Transaction
U.S.	$	242,385		$	256,076		$	291,578		$	326,217		$	319,119
Current quarter vs prior quarter		3	%		6	%		14	%		12	%		(2	%)
Current quarter vs prior year quarter		45	%		41	%		38	%		39	%		32	%
International		155,155			154,715			210,500			257,090			273,740
Current quarter vs prior quarter		13	%		0	%		36	%		22	%		6	%
Current quarter vs prior year quarter		146	%		105	%		96	%		87	%		76	%
Payments		99,363			106,350			130,561			155,513			158,815
Current quarter vs prior quarter		7	%		7	%		23	%		19	%		2	%
Current quarter vs prior year quarter		2006	%		1645	%		68	%		67	%		60	%
Total transaction		496,903			517,141			632,639			738,820			751,674
Current quarter vs prior quarter		7	%		4	%		22	%		17	%		2	%
Current quarter vs prior year quarter		111	%		96	%		60	%		59	%		51	%
Advertising and other non-transaction revenues
U.S.		8,774			10,012			11,540			12,353			15,361
Current quarter vs prior quarter		16	%		14	%		15	%		7	%		24	%
Current quarter vs prior year quarter		(71	%)		(59	%)		(16	%)		63	%		75	%
International		1,432			1,760			2,261			2,400			3,705
Current quarter vs prior quarter		9	%		23	%		28	%		6	%		54	%
Current quarter vs prior year quarter		18	%		96	%		32	%		83	%		159	%
Payments		2,160			2,029			1,953			2,666			2,672
Current quarter vs prior quarter		7	%		(6	%)		(4	%)		37	%		0	%
Current quarter vs prior year quarter		N/A			N/A			(5	%)		32	%		24	%
Total advertising and other non-transaction revenues		12,366			13,801			15,754			17,419			21,738
Current quarter vs prior quarter		13	%		12	%		14	%		11	%		25	%
Current quarter vs prior year quarter		(60	%)		(45	%)		(10	%)		59	%		76	%
Total net revenues	$	509,269		$	530,942		$	648,393		$	756,239		$	773,412
Current quarter vs prior quarter		7	%		4	%		22	%		17	%		2	%
Current quarter vs prior year quarter		91	%		84	%		57	%		59	%		52	%

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eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(U.S. Dollars In Thousands, Except Percentages)

Net Revenues by Segment

	June 30,			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2004			2004
U.S.	$	251,159		$	266,088		$	303,118		$	338,570		$	334,481
Current quarter vs prior quarter		4	%		6	%		14	%		12	%		(1	%)
Current quarter vs prior year quarter		27	%		29	%		35	%		40	%		33	%
International		156,587			156,475			212,761			259,490			277,444
Current quarter vs prior quarter		13	%		0	%		36	%		22	%		7	%
Current quarter vs prior year quarter		143	%		105	%		95	%		87	%		77	%
Payments		101,523			108,379			132,514			158,179			161,487
Current quarter vs prior quarter		7	%		7	%		22	%		19	%		2	%
Current quarter vs prior year quarter		2051	%		1678	%		66	%		66	%		59	%
Total net revenues	$	509,269		$	530,942		$	648,393		$	756,239		$	773,412
Current quarter vs prior quarter		7	%		4	%		22	%		17	%		2	%
Current quarter vs prior year quarter		91	%		84	%		57	%		59	%		52	%

Net Revenues by Geography

	June 30,			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2004			2004
U.S. net revenues	$	331,322		$	351,187		$	404,833		$	455,355		$	449,571
Current quarter vs prior quarter		4	%		6	%		15	%		12	%		(1	%)
Current quarter vs prior year quarter		64	%		65	%		39	%		43	%		36	%
% of total		65	%		66	%		62	%		60	%		58	%
International net revenues		177,947			179,755			243,560			300,884			323,841
Current quarter vs prior quarter		13	%		1	%		35	%		24	%		8	%
Current quarter vs prior year quarter		177	%		136	%		97	%		91	%		82	%
% of total		35	%		34	%		38	%		40	%		42	%
Total net revenues	$	509,269		$	530,942		$	648,393		$	756,239		$	773,412
Current quarter vs prior quarter		7	%		4	%		22	%		17	%		2	%
Current quarter vs prior year quarter		91	%		84	%		57	%		59	%		52	%

- 13 -

eBay Inc.
eBay Unaudited Supplemental Operating Data
(In Millions, Except Percentages)

	June 30,			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2004			2004
Confirmed Registered Users (1)		75.3			85.5			94.9			104.8			114.0
Current quarter vs prior quarter		9	%		14	%		11	%		10	%		9	%
Current quarter vs prior year quarter		51	%		56	%		54	%		52	%		51	%
Active Users (2)		34.1			37.4			41.2			45.1			48.0
Current quarter vs prior quarter		10	%		10	%		10	%		9	%		6	%
Current quarter vs prior year quarter		57	%		55	%		49	%		45	%		41	%
Number of Listings (3)		225.0			234.6			291.7			327.7			332.3
Current quarter vs prior quarter		2	%		4	%		24	%		12	%		1	%
Current quarter vs prior year quarter		55	%		47	%		49	%		49	%		48	%
Gross Merchandise Volume (4)	$	5,635		$	5,775		$	7,052		$	8,039		$	8,012
Current quarter vs prior quarter		6	%		2	%		22	%		14	%		0	%
Current quarter vs prior year quarter		66	%		53	%		53	%		51	%		42	%

(1) Cumulative total of all users who have completed their registration process on one of eBay’s trading platforms.

(2) All users, excluding Half.com, EachNet, and Internet Auction users, who bid on, bought, listed, or sold an item within the previous
12-month period.

(3) All listings on eBay’s trading platforms during the quarter, regardless of whether the listing subsequently closed successfully.

(4) Total value of all successfully closed listings between users on eBay’s trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction.

- 14 -

eBay Inc.
PayPal Unaudited Supplemental Operating Data
(In Millions, except percentages)

	June 30.			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2004			2004
Revenue
Transaction	$	99.4		$	106.4		$	130.6		$	155.5		$	158.8
Current quarter vs prior quarter		8	%		7	%		23	%		19	%		2	%
Current quarter vs prior year quarter		90	%		83	%		80	%		69	%		60	%
Non- transaction	$	2.1		$	2.0		$	2.0		$	2.7		$	2.7
Current quarter vs prior quarter		7	%		(5	%)		0	%		37	%		0	%
Current quarter vs prior year quarter		69	%		67	%		(5	%)		32	%		24	%
Total revenues ($m)	$	101.5		$	108.4		$	132.6		$	158.2		$	161.5
Percent of revenue which is international		21.0	%		21.4	%		23.2	%		26.2	%		28.7	%
Metrics
Total accounts (1)		31.1			35.2			40.3			45.6			50.4
Current quarter vs prior quarter		14	%		13	%		14	%		13	%		11	%
Current quarter vs prior year quarter		75	%		79	%		73	%		67	%		62	%
Active accounts (2)		10.2			11.2			13.2			14.5			15.5
Total number of payments (3)		53.7			57.4			68.2			79.2			77.7
Current quarter vs prior quarter		6	%		7	%		19	%		16	%		(2	%)
Current quarter vs prior year quarter		86	%		83	%		74	%		57	%		45	%
Total payment volume (4)	$	2,843		$	3,044		$	3,711		$	4,321		$	4,350
Current quarter vs prior quarter		8	%		7	%		22	%		16	%		1	%
Current quarter vs prior year quarter		76	%		70	%		74	%		64	%		53	%
Auction as % of total payment volume		66	%		67	%		69	%		70	%		69	%
Transaction rates
Transaction revenue rate		3.50	%		3.49	%		3.52	%		3.60	%		3.64	%
Transaction processing expense rate		1.30	%		1.25	%		1.23	%		1.25	%		1.34	%
Transaction loss rate		0.32	%		0.22	%		0.31	%		0.27	%		0.25	%
`

(1) Cumulative total of all personal, premier, or business accounts opened, excluding accounts that have been closed or locked.

(2) All accounts that sent or received at least one payment through the PayPal system during the quarter.

(3) Total number of payments initiated through the PayPal system during the quarter, regardless of whether the payment was actually sent successfully, or was reversed, rejected, or pending at the end of the quarter.

(4) Total dollar volume of payments initiated through the PayPal system during the quarter, regardless of whether the payment was actually sent successfully, or was reversed, rejected, or was pending at the end of the quarter.

- 15 -

eBay Inc.
Guidance Summary
(In Millions, Except Per Share Amounts And Percentages)

The guidance figures provided below and elsewhere in this press release are approximate in nature because eBay’s future performance is difficult to predict. Such guidance is based on information available on the date hereof, and eBay assumes no obligation to update it.

eBay’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from such guidance. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect eBay’s operating results is included under the captions “Risk Factors That May Affect Results of Operations and Financial Condition” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s investor relations site at http://investor.ebay.com.

	Three months ending September 30, 2004
	GAAP		Adjustments			Pro Forma (a)
Net revenue	$	770		—		$	770
Diluted EPS	$	0.24	$	0.01	(b)	$	0.25

	Three months ending December 31, 2004
	GAAP		Adjustments			Pro Forma (a)
Net revenue	$	886		—		$	886
Diluted EPS	$	0.30	$	0.02	(b)	$	0.32

	Year ending December 31, 2004
	GAAP			Adjustments				Pro Forma (a)
Net revenue	$	3,185			—			$	3,185
Diluted EPS	$	1.10		$	0.07		(b)	$	1.17
Effective Tax Rate		30	%		1	%	(c)		31	%

(a) Pro forma guidance reflects estimated quarterly adjustments for amortization of acquired intangible assets of approximately $15 million, payroll taxes on employee stock options of approximately $4 million, stock based compensation of approximately $300 - $600 thousand and other adjustments estimated to result in an operating margin adjustment of 2 - 3% for each of the quarters in the year ending December 31, 2004.

(b) Net of tax, the above pro forma items are estimated to result in a $0.01 - $0.02 per diluted share adjustment for each of the quarters in the year ending December 31, 2004.

(c) Adjustments to the pro forma effective tax rate reflect the impact on the effective tax rate of the pro forma adjustments.

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