eBAY INC. ANNOUNCES FIRST QUARTER 2005 FINANCIAL RESULTS

- Company Reports Record Q1 Net Revenues of $1.032 Billion -
- Achieves Q1 GAAP Diluted EPS of $0.19 and Pro Forma Diluted EPS of $0.20 -
- Raises 2005 Net Revenues, Operating Margin and EPS Guidance -

San Jose, CA, April 20, 2005 - eBay Inc. (Nasdaq: EBAY; www.ebay.com), the
WorldÕs Online Marketplace, reported financial results for its quarter ended
March 31, 2005.

eBay reported record consolidated Q1-05 net revenues of $1.032 billion, up 36%
year over year; operating income of $335.6 million, up 26% year over year,
representing a 33% operating margin; and pro forma operating income of $367.4
million, up 28% year over year, representing a 36% pro forma operating margin.

Consolidated net income in Q1-05 was $256.3 million, or $0.19 per diluted share.
eBayÕs pro forma consolidated net income, excluding certain items, was $275.5
million, or $0.20 per diluted share.

These results exceeded the high end of the companyÕs guidance of $1.030 billion
for net revenues, $0.17 for earnings per diluted share, and $0.18 for pro forma
earnings per diluted share. These results and guidance reflect the two-for-one
split of all outstanding shares of eBayÕs common stock, which was effective in
Q1-05.

ÒA record jump in registered users, record GMV, tremendous PayPal growth, and
record net revenues all highlighted a wonderful quarter for eBay,Ó said Meg
Whitman, President and CEO of eBay. ÒThe eBay community is thriving, and weÕre
in an excellent position to deliver on both the top line and profit goals weÕve
set out for 2005 and beyond.Ó

Key Financial and Operating Metrics

Consolidated Net Revenues - Consolidated net revenues totaled a record $1.032
billion, which represented an increase of 36% from the $756.2 million reported
in Q1-04.

. U.S. Marketplace Net Revenues - U.S. Marketplace net revenues totaled $404.8
million in Q1-05, representing 20% year-over-year growth.

. International Marketplace Net Revenues - International Marketplace net
revenues totaled $393.8 million in Q1-05, representing 52% year-over-year
growth.

. Payments Net Revenues - Payments net revenues totaled $233.1 million in Q1-05,
representing 47% year-over-year growth.

Confirmed Registered Users - Cumulative confirmed registered users at the end of
Q1-05 totaled 147.1 million, representing a 40% increase over the 104.8 million
users reported at the end of Q1-04.

Active Users - Active users, the number of users on the eBay platform who bid,
bought, or listed an item within the previous 12 month period, increased to 60.5
million in Q1-05, a 34% increase over the 45.1 million active users reported in
the same period a year ago.

Listings - New listings totaled a record 431.8 million in Q1-05, 32% higher than
the 327.7 million listings reported in Q1-04. New listings in Q1-05 included
32.0 million new eBay Stores listings, compared to 8.0 million new eBay Stores
listings in Q1-04.

Gross Merchandise Volume (GMV) Ð GMV, the total value of all successfully closed
listings on eBayÕs trading platforms, was $10.6 billion, representing a 32%
year-over-year increase from the $8.0 billion reported in Q1-04.

Total Payments Accounts - PayPalÕs business had 71.6 million total accounts at
the end of Q1-05, which included all accounts and users whether registered or
not, a 57% increase from the 45.6 million reported in Q1-04.

Total Payment Volume (TPV) Ð TPV, the dollar volume of payments initiated
through the PayPal system, was $6.2 billion in Q1-05, a 44% increase from the
$4.3 billion reported in Q1-04.

Operating Income - Operating income was $335.6 million, or 33% of net revenues,
a 26% increase over the $266.7 million reported in Q1-04. Pro forma operating
income increased 28% year over year to $367.4 million, or 36% of net revenues.

GAAP Net Income - GAAP net income increased 28% year over year to $256.3
million, or $0.19 per diluted share.

Pro Forma Net Income - Pro forma net income increased 31% year over year to
$275.5 million, or $0.20 per diluted share.

Operating and Free Cash Flows - Operating cash flows totaled $495.4 million.
Free cash flows totaled $289.4 million, representing operating cash flows less
capital expenditures of $79.6 million and the payment of a lease obligation for
our headquarters facility of $126.4 million.

Key Category Performance* - Based on Q1-05 GMV, the eBay Marketplace has twelve
categories that delivered $1 billion or more in worldwide annualized GMV: eBay
Motors at $12.9 billion; Consumer Electronics at $3.4 billion; Computers at $3.2
billion; Clothing & Accessories at $3.1 billion; Books/Movies/Music at $2.7
billion; Home & Garden at $2.2 billion; Collectibles at $2.2 billion; Sports at
$1.9 billion; Toys at $1.7 billion; Jewelry & Watches at $1.6 billion; Business
& Industrial at $1.4 billion; and Cameras & Photo at $1.3 billion.

Fixed Price Trading - eBayÕs fixed price trading contributed approximately $3.2
billion or 30% of total GMV during Q1-05, primarily from eBayÕs ÒBuy It NowÓ
feature and from Half.com.

eBay Stores - At the end of Q1-05, eBay hosted approximately 264,000 stores
worldwide, with approximately 158,000 stores hosted on the U.S. site.

Consolidated Financial and Operating Summary

eBay reported record consolidated net revenues of $1.032 billion in Q1-05,
representing a 36% year-over-year increase. On a year-over-year basis,
consolidated net revenues reflected a foreign currency translation benefit in
Q1-05 of approximately $24.9 million. On a sequential basis, consolidated net
revenues reflected a foreign currency translation benefit in Q1-05 of
approximately $10.6 million.

Gross profit was $845.4 million, or 82% of net revenues, consistent with the
percentage reported in Q1-04, and higher than the 81% reported in Q4-04. The
sequential percentage increase was primarily a result of an increase in the
Payments segment gross margin.

Sales and marketing expenses totaled $271.3 million, or 26% of net revenues, up
from the 25% reported in Q1-04, but down from the 29% reported in Q4-04. The
year-over-year percentage increase was primarily a result of international
expansion and industry-wide increases in Internet marketing rates, which was
partially offset by marketing efficiencies. The sequential percentage decrease
was primarily the result of various efficiencies achieved in our marketing
campaigns during Q1-05.

Product development expenses totaled $73.8 million, or 7% of net revenues,
consistent with the percentage reported in Q1-04 and in Q4-04.

General and administrative costs totaled $136.4 million, or 13% of net revenues,
up from the 12% of net revenues reported in both Q1-04 and Q4-04. The
year-over-year percentage increase was primarily a result of increases in
headcount in our trust and safety and corporate functions. The sequential
percentage increase was primarily the result of higher performance-based
compensation in Q1-05.

Income from operations totaled $335.6 million during Q1-05, a 26% increase over
the $266.7 million reported in Q1-04. On a pro forma basis, income from
operations totaled $367.4 million, a 28% increase over the $286.4 million
reported in Q1-04. Included in both the GAAP and pro forma Q1-05 consolidated
income from operations was a $12.8 million year-over-year net benefit from
changes in foreign exchange rates. On a sequential basis, both the GAAP and pro
forma consolidated income from operations reflected a foreign currency
translation benefit in Q1-05 of approximately $6.8 million.

Interest and other income, net, totaled $22.4 million in Q1-05, down from the
$23.5 million reported in Q1-04. Interest and other income, net, in Q1-04
included one-time gains of approximately $11.2 million relating to certain
contract amendments. Without these gains, interest and other income, net, would
have shown an increase in Q1-05 from Q1-04 of approximately $10.1 million which
was primarily the result of increased interest income earned on larger cash,
cash equivalents, and investment balances.

The GAAP effective tax rate for Q1-05 was 28%, down from the GAAP effective tax
rate of 30% for Q1-04. The pro forma effective tax rate for Q1-05 was 29%, down
from the pro forma effective tax rate of 31% for Q1-

04. The lower GAAP and pro forma effective tax rates for Q1-05, as compared to
Q1-04, reflects an increased profit contribution from the companyÕs
international operations.

During Q1-05, operating cash flow of $495.4 million and proceeds from the
exercise of employee stock options of $179.3 million were used to fund the
purchase of property and equipment of $79.6 million, the payment of a lease
obligation for our headquarters facility of $126.4 million, the acquisition of
businesses of $445.0 million and additional net investment purchases of $122.4
million. The companyÕs cash and investments totaled over $3.4 billion at the end
of Q1-05.

Business Outlook

The following updated guidance reflects current business trends and exchange
rates, as well as the impact of the two-for-one stock split of eBayÕs common
stock, which was effective in Q1-05. The guidance does not include the impact of
potential acquisitions.

Net Revenues - eBay now expects consolidated net revenues for 2005 in the range
of $4.270 billion to $4.360 billion. From a quarterly perspective, eBay now
expects consolidated net revenues in the range of $1.025 billion to $1.050
billion in Q2-05, $1.035 billion to $1.060 billion in Q3-05 and $1.180 billion
to $1.220 billion in Q4-05.

GAAP Diluted EPS - eBay now estimates GAAP earnings per diluted share for the
full year 2005 in the range of $0.71 to $0.73, an increase from the previous
guidance of $0.68 to $0.70. This increase in guidance implies an increase to the
GAAP operating margin of approximately 1%. From a quarterly perspective, eBay
now estimates GAAP earnings per diluted share of $0.16 in Q2-05, in the range of
$0.16 to $0.17 in Q3-05 and $0.20 to $0.21 in Q4-05. The estimated earnings per
diluted share does not include the impact of expensing stock options upon the
adoption of Financial Accounting Standards Board Statement No. 123(R)
ÒShare-Based Payment.Ó

Pro Forma Diluted EPS - eBay now estimates pro forma earnings per diluted share
for the full year 2005 in the range of $0.76 to $0.78, an increase from the
previous guidance of $0.74 to $0.76. This increase in guidance implies an
increase to the pro forma operating margin of approximately 1%. From a quarterly
perspective, eBay now estimates pro forma earnings per diluted share of $0.18 in
Q2-05, in the range of $0.18 to $0.19 in Q3-05, and $0.21 to $0.22 in Q4-05.

Capital Expenditures - eBay continues to expect its capital expenditures in the
range of $340 million to $400 million for the full year 2005, which is 8% to 9%
of eBayÕs guidance for net revenues. These expected capital expenditures for
2005 excludes the payment of a lease obligation for our headquarters facility in
Q1-05 of approximately $126 million.