Exhibit 99.1

eBAY INC. ANNOUNCES SECOND QUARTER 2003 FINANCIAL RESULTS

— Company Reports Record Net Revenues of $509.3 Million, Up 91% Year-over-Year —
— Raises 2003 Net Revenue and EPS Guidance —
— Announces a Two-for-One Stock Split —

San Jose, CA, July 24, 2003 – eBay Inc. (Nasdaq: EBAY; www.ebay.com), the world’s online marketplace, reported financial results for its quarter ended June 30, 2003.

eBay reported record consolidated Q2-03 net revenues of $509.3 million, up 91% year-over-year; record operating income of $152 million, up 91% year-over-year; and record pro forma operating income of $168.7 million, up 109% year-over-year. Operating income was 30% of net revenues and pro forma operating income was 33% of net revenues.

Consolidated net income in Q2-03 was a record $109.7 million, or $0.33 per diluted share. eBay’s pro forma consolidated net income, excluding certain items, was a record $120.9 million, or $0.37 per diluted share.

These results exceeded the company’s guidance of $500 million for net revenues, $0.30 for GAAP earnings per diluted share and $0.33 for pro forma earnings per diluted share.

In addition, eBay’s Board of Directors has approved a two-for-one split of all outstanding shares of the company’s common stock, payable August 28, 2003 to stockholders of record on August 4, 2003.

“Q2 was another great quarter for eBay,” said Meg Whitman, President and CEO of eBay. “Our thriving community of buyers and sellers continues to spread the word that eBay is a great place to trade, build a business, make friends and have fun.”

Key Financial and Operating Metrics

Consolidated Net Revenues — Consolidated net revenues totaled a record $509.3 million, which represented an increase of 91% from the $266.3 million reported in Q2-02.

Transaction Revenues — Consolidated net transaction revenues totaled a record $496.9 million, which represented an increase of 111% from the $235.3 million reported in Q2-02.

• eBay U.S. Net Transaction Revenues — eBay U.S. net transaction revenues totaled $242.4 million in Q2-03, reflecting 45% year-over-year growth.

• eBay International Net Transaction Revenues — eBay International net transaction revenues totaled $155.2 million in Q2-03, representing 146% year-over-year growth.

• Payments Net Transaction Revenues – Payments net transaction revenues totaled $99.4 million in Q2-03.

-1-

Confirmed Registered Users — Cumulative confirmed registered users at the end of Q2-03 were a record 75.3 million, an increase of 6.5 million sequentially and a 51% increase over the 49.7 million users reported at the end of Q2-02.

Active Users — Active users, the number of users on the eBay platform who bid, bought or listed over the trailing twelve months, increased to 34.1 million, a 57% increase over the 21.8 million active users for the same period a year ago.

Listings — Listings totaled a record 225 million in Q2-03, 55% higher than the 145 million in Q2-02.

Gross Merchandise Sales (GMS) — GMS, the total value of items sold, was a record $5.6 billion, representing a 66% year-over-year increase from the $3.4 billion reported in Q2-02.

Total Payment Volume (TPV) – TPV was $2.8 billion in Q2-03, up from TPV of $2.6 billion in Q1-03.

Gross Profit — Gross profit was a record $410.1 million, or 81% of net revenues, which was down from the 83% level reported in Q2-02, reflecting the increased contribution of the lower margin PayPal business.

Operating Income — Operating income was a record $152.0 million or 30% of net revenues and a 91% increase over the $79.4 million reported in Q2-02. Pro forma operating income increased 109% year-over-year to $168.7 million, or 33% of net revenues, versus 30% in Q2-02.

GAAP Net Income — GAAP net income increased 102% year-over-year, to a record $109.7 million, or $0.33 per diluted share.

Pro Forma Net Income — Pro forma net income increased 124% year-over-year, to a record $120.9 million, or $0.37 per diluted share.

Operating and Free Cash Flows — Operating cash flows totaled a record $208.7 million, a 125% increase from the $92.8 million reported in Q2-02. Free cash flows totaled $22.6 million, a 25% decrease from the $30.1 million reported in Q2-02, reflecting the purchase of additional facilities in San Jose, California.

Key Category Performance — Based on Q2-03 GMS, eBay has nine categories that deliver more than $1 billion in worldwide annualized GMS: eBay Motors at $6.3 billion; Consumer Electronics at $2.0 billion; Computers at $2.0 billion; Books/Movies/Music at $1.6 billion; Sports at $1.5 billion; Clothing and Accessories at $1.3 billion; Collectibles at $1.1 billion; Toys at $1.0 billion; and Home & Garden at $1.0 billion.

Fixed Price Trading — eBay’s fixed price trading contributed approximately $1.51 billion or 27% of total GMS during Q2-03, primarily from eBay’s “Buy It Now” feature. Pure fixed price, which allows sellers to offer items for a set price rather than in an auction format, accounted for 11% of eBay’s global GMS.

-2-

eBay Stores — eBay hosts approximately 110,000 stores, with slightly more outside the US than on eBay.com.

EachNet – On July 16, 2003, eBay increased its investment in EachNet Inc., which in cooperation with local subsidiaries operates the leading e-commerce company in China. eBay paid approximately $150 million in cash to acquire the remaining outstanding stock of EachNet Inc.

Consolidated Financial and Operating Summary

eBay reported record consolidated net revenues of $509.3 million in Q2-03, representing a 91% year-over-year increase. Excluding PayPal, eBay’s Q2-03 net revenues totaled $407.7 million, representing a 53% year-over-year increase. PayPal’s Q2-03 total net revenues were $101.5 million, representing an 89% year-over-year increase compared to the $53.8 million PayPal reported in Q2-02. As expected, revenues from third party advertisers and end-to-end services declined 43% year over year to $12.4 million and now represent approximately 2% of net revenues. Consolidated revenues reflected a foreign exchange benefit in Q2-03 in the amount of approximately $6.9 million, based on Q1-03 weighted average foreign exchange rates.

Gross profit as a percentage of net revenues was 81%, which was consistent with the 81% level reported in Q1-03, but down from the 83% level reported in Q2-02. The reported gross profit percentage reflects an improvement in US and International segments offset by an increased contribution of the PayPal business, which has a lower gross margin structure.

Sales and marketing expenses totaled $134.6 million, or 26% of net revenues, consistent with the 26% reported in Q1-03 and down from the 30% reported in Q2-02. The sequential dollar increase of $10.9 million in sales and marketing expense during the quarter was attributed to the company’s expanded marketing programs and growth in sales and marketing headcount.

Product development costs totaled $38.8 million, or approximately 8% of net revenues, up from the 7% of net revenues reported in Q1-03 and down from the 9% of net revenues reported in Q2-02. The incremental product development expense reflects an actual sequential spending increase, offset by $12.3 million of required capitalization for major site and other product development efforts.

General and administrative costs totaled $69.5 million, or about 14% of net revenues, up from the 13% of net revenues reported for Q1-03 and consistent with the 14% of net revenues reported for Q2-02. Included in general and administrative costs were PayPal’s transaction losses, which represented approximately 0.32% of PayPal’s total payment volume. The incremental general and administration costs primarily reflect an increase in legal costs, headcount, and the impact of a weakening dollar on Euro denominated expenses in the quarter.

Income from operations totaled $152.0 million during Q2-03, a 91% increase over the $79.4 million reported in Q2-02. On a pro forma basis, income from operations totaled $168.7 million, or 33% of Q2-03 consolidated net revenues, comparing favorably to the $80.7 million and 30% of net revenues reported in Q2-02.

-3-

Net interest and other income totaled $10.9 million in Q2-03, up from the $7.4 million reported in Q1-03, reflecting a larger investment base. On a pro forma basis, net interest and other income increased to $9.9 million from $7.7 million in Q1-03.

The Q2-03 effective tax rate for both GAAP and pro forma was 32%, consistent with the 32% effective tax rate in Q1-03 and a decrease from the 38% rate in Q2-02. The lower effective tax rate reflects the increased profit contribution from the company’s international operations.

eBay’s balance sheet remains strong. At the end of Q2-03, the company had $2.5 billion in aggregate corporate cash and investments and total assets of more than $5.0 billion.

The company reported $208.7 million in operating cash flows, 125% higher than the $92.8 million reported in Q2-02, primarily reflecting increased profitability.

Capital expenditures increased in Q2-03 to $186.1 million from $43.9 million in Q1-03, reflecting the $125 million purchase of new facilities in San Jose, California. As a result, free cash flows during Q2-03 totaled $22.6 million, 25% lower than the $30.1 million reported in Q2-02.

Business Outlook

Net Revenues – The company now expects that revenues for 2003 could be as high as $2.075 billion, $25 million higher than the company’s most recent guidance. This higher revenue outlook derives from the strength of eBay’s US, International and Payments businesses. From a quarterly perspective, eBay expects consolidated net revenue to be approximately $515 million in Q3-03, and approximately $575 million in Q4-03. eBay’s guidance is based on an assumed quarterly weighted average translation of 1.14 U.S. dollars per Euro.

GAAP Diluted EPS – eBay now estimates that earnings per diluted share for the full year 2003 could be as high as $1.31, $0.05 higher than the company’s most recent guidance. From a quarterly perspective, eBay estimates GAAP earnings per diluted share to be $0.29 in Q3-03 and $0.36 in Q4-03. This guidance includes a $0.02 decrease in Q3-03 and $0.01 decrease in Q4-03 from the acquisition of EachNet, which closed on July 16, 2003.

Pro Forma Diluted EPS – eBay now estimates that pro forma earnings per diluted share for the full year 2003 could be as high as $1.47, $0.06 higher than the company’s most recent guidance. This guidance includes a $0.02 decrease in Q3-03 and $0.01 decrease in Q4-03 from the acquisition of EachNet, which closed on July 16, 2003. eBay now believes that amortization of intangible assets, stock-based compensation expenses and other pro forma items primarily related to the PayPal acquisition, as well as the related tax impact of these items, will range between $13.0 million to $18.0 million per quarter through 2003. From a quarterly perspective, eBay estimates pro forma earnings per diluted share to be $0.34 in Q3-03 and $0.40 in Q4-03.

Effective Tax Rate – eBay’s current estimate for its effective tax rate is 32% for 2003.

Capital Expenditures – eBay expects capital expenditures to be approximately $80 million in Q3-03 and $76 million in Q4-03, reflecting expected spending in technology, facilities, and PayPal. This implies an increase in 2003 capital expenditure guidance of approximately $11 million to $385 million from our prior guidance of $374 million.

-4-

Stock Split – eBay’s Board of Directors approved a two-for-one split of all outstanding shares of the company’s common stock, payable August 28, 2003 to stockholders of record on August 4, 2003.

Legal Settlement

We have reached a settlement with the US Attorney for the Eastern District of Missouri on the issue of PayPal’s services to online gambling merchants, which were discontinued following PayPal’s acquisition by eBay, as previously disclosed, for a payment of $10 million. The settlement amount will be included as an adjustment to our purchase price of PayPal and not as a charge against earnings.

Non-GAAP Measures

To supplement our consolidated financial statements presented in accordance with GAAP, eBay uses non-GAAP measures of gross profit, operating income, net income, earnings per share, and cash flows, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe 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 our core operating results. In addition, because we have historically reported certain non-GAAP results to investors, we believe the inclusion of non-GAAP measures provides consistency in our 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 our 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.

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 our actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: our need to manage an increasingly large company with a broad range of businesses; our ability to deal with the increasingly competitive environment for online trading, both in specific vertical categories and generally; our ability to manage the integration of PayPal and the litigation, regulatory, credit card association, and other risks specific to PayPal; our need to manage our other regulatory, tax, and litigation risks even as our product offerings expand and our services are offered in more jurisdictions, including, most recently, China; our ability to upgrade and develop our systems, infrastructure and customer service capabilities to accommodate growth at a reasonable cost; our ability to maintain site stability on all of our sites; our ability to continue to expand our model to new types of merchandise and sellers; our ability to continue to expand outside of the US; fluctuations in foreign exchange rates; the success of our commercial partners and commercial relationships; and the costs and benefits of announced and prospective joint ventures, acquisitions and other commercial transactions.

-5-

More information about factors that could affect our 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 our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting our investor relations site at www.shareholder.com/ebay. All forward-looking statements in this release are based on information available to us on the date hereof, and we assume no obligation to update such statements.

###

Investor Relations Contacts:

Media Relations Contact:
Investor Information Request:
Company News: David Joseph          408-376-7057
Tracey Ford            408-376-7205
Kevin Pursglove     408-376-7458
408-376-7493 or email to investor_relations@ebay.com
http://www.businesswire.com

-6-

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

				December 31,		June 30,
				2002		2003
			ASSETS
Current assets:
	Cash and cash equivalents			$	1,109,313	$	1,391,557
	Short-term investments				89,690		332,012
	Accounts receivable, net				131,453		164,621
	Funds receivable				41,014		83,063
	Other current assets				96,988		92,941
		Total current assets			1,468,458		2,064,194
Long-term investments					470,227		609,634
Restricted cash and investments					134,644		127,069
Property and equipment, net					218,028		403,295
Goodwill					1,456,024		1,487,018
Intangible assets, net					279,465		257,889
Deferred tax assets					84,218		75,873
Other assets					13,380		18,007
				$	4,124,444	$	5,042,979
		LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable			$	47,424	$	64,666
	Funds payable and amounts due to customers				50,396		100,192
	Accrued expenses and other current liabilities				199,323		223,089
	Deferred revenue and customer advances				18,846		21,485
	Short-term debt				2,970		3,586
	Income taxes payable				67,265		89,510
		Total current liabilities			386,224		502,528
Long-term debt					13,798		12,384
Deferred tax liabilities					111,843		102,028
Other liabilities					22,874		19,253
Minority interests					33,232		44,023
		Total liabilities			567,971		680,216
Total stockholders’ equity					3,556,473		4,362,763
				$	4,124,444	$	5,042,979

-7-

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,
			2002			2003			2002			2003
Net revenues			$	266,287		$	509,269		$	511,393		$	985,761
Cost of net revenues				44,561			99,150			85,838			191,248
		Gross profit		221,726			410,119			425,555			794,513
Operating expenses:
	Sales and marketing			79,804			134,616			152,908			258,376
	Product development			24,346			38,819			48,653			73,151
	General and administrative			36,596			69,476			69,089			132,476
	Payroll expense on employee stock options			431			3,184			2,110			6,474
	Amortization of acquired intangible assets			1,108			11,976			2,638			23,844
		Total operating expenses		142,285			258,071			275,398			494,321
Income from operations				79,441			152,048			150,157			300,192
Interest and other income (expense), net				9,001			10,909			16,388			18,613
Interest expense				(698	)		(37	)		(1,383	)		(68	)
Impairment of certain equity investments				—			—			(1,181	)		(230	)
Income before income taxes and minority interests				87,744			162,920			163,981			318,507
Provision for income taxes				(33,286	)		(51,649	)		(62,697	)		(100,667	)
Minority interests in consolidated companies				(150	)		(1,544	)		608			(3,922	)
Net income			$	54,308		$	109,727		$	101,892		$	213,918
Net income per share:
	Basic		$	0.19		$	0.34		$	0.36		$	0.68
	Diluted		$	0.19		$	0.33		$	0.36		$	0.66
Weighted average shares:
	Basic			280,707			318,340			279,525			316,011
	Diluted			285,416			328,074			285,142			324,804

-8-

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, 2002									June 30, 2003
							Pro Forma									Pro Forma
				Reported			Entries			Pro Forma			Reported			Entries			Pro Forma
Net revenues				$	266,287		$	—		$	266,287		$	509,269		$	—		$	509,269
Cost of net revenues					44,561			298	(a)		44,859			99,150			(64	)(a)		99,086
			Gross profit		221,726			(298	)		221,428			410,119			64			410,183
Operating expenses:
		Sales and marketing			79,804			113	(a)		79,917			134,616			(280	)(a)		134,336
		Product development			24,346			82	(a)		24,428			38,819			(358	)(a)		38,461
		General and administrative			36,596			(168	)(a)		36,428			69,476			(797	)(a)		68,679
		Payroll expense on employee stock options			431			(431	)(b)		—			3,184			(3,184	)(b)		—
		Amortization of acquired intangible assets			1,108			(1,108	)(c)		—			11,976			(11,976	)(c)		—
			Total operating expenses		142,285			(1,512	)		140,773			258,071			(16,595	)		241,476
Income from operations					79,441			1,214			80,655			152,048			16,659			168,707
Interest and other income (expense), net					9,001			(1,584	)(d)		7,417			10,909			(979	)(d)		9,930
Interest expense					(698	)		—			(698	)		(37	)		—			(37	)
Impairment of certain equity investments					—			—			—			—			—			—
Income before income taxes and minority interests					87,744			(370	)		87,374			162,920			15,680			178,600
Provision for income taxes					(33,286	)		17	(e)		(33,269	)		(51,649	)		(4,479	)(e)		(56,128	)
Minority interests in consolidated companies					(150	)					(150	)		(1,544	)		—			(1,544	)
Net income				$	54,308		$	(353	)	$	53,955		$	109,727		$	11,201		$	120,928
Net income per share:
		Basic		$	0.19					$	0.19		$	0.34					$	0.38
		Diluted		$	0.19					$	0.19		$	0.33					$	0.37
Weighted average shares:
		Basic			280,707						280,707			318,340						318,340
		Diluted			285,416						285,416			328,074						328,074
	Operating Margin				30	%		—			30	%		30	%		3	%		33	%

Notes:

(a)	Non-cash stock based compensation expense
(b)	Employer payroll taxes on employee exercises of non-qualified stock options
(c)	Amortization of acquired intangible assets
(d)	Gain on recovery of fully reserved receivables
(e)	Incremental income taxes associated with certain pro forma entries

-9-

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, 2002									June 30, 2003
						Pro Forma									Pro Forma
			Reported			Entries			Pro Forma			Reported			Entries			Pro Forma
Net revenues			$	511,393		$	—		$	511,393		$	985,761		$	—		$	985,761
Cost of net revenues				85,838			270	(a)		86,108			191,248			(148	)(a)		191,100
		Gross profit		425,555			(270	)		425,285			794,513			148			794,661
Operating expenses:
	Sales and marketing			152,908			67	(a)		152,975			258,376			(698	)(a)		257,678
	Product development			48,653			(29	)(a)		48,624			73,151			(875	)(a)		72,276
	General and administrative			69,089			(442	)(a)		68,647			132,476			(2,050	)(a)		130,426
	Payroll expense on employee stock options			2,110			(2,110	)(b)		—			6,474			(6,474	)(b)		—
	Amortization of acquired intangible assets			2,638			(2,638	)(c)		—			23,844			(23,844	)(c)		—
		Total operating expenses		275,398			(5,152	)		270,246			494,321			(33,941	)		460,380
Income from operations				150,157			4,882			155,039			300,192			34,089			334,281
Interest and other income (expense), net				16,388			(1,584	)(d)		14,804			18,613			(979	)(d)		17,634
Interest expense				(1,383	)		—			(1,383	)		(68	)		—			(68	)
Impairment of certain equity investments				(1,181	)		1,181	(e)		—			(230	)		230	(e)		—
Income before income taxes and minority interests				163,981			4,479			168,460			318,507			33,340			351,847
Provision for income taxes				(62,697	)		(1,274	)(f)		(63,971	)		(100,667	)		(10,130	)(f)		(110,797	)
Minority interests in consolidated companies				608			(590	)(g)		18			(3,922	)		—			(3,922	)
Net income			$	101,892		$	2,615		$	104,507		$	213,918		$	23,210		$	237,128
Net income per share:
	Basic		$	0.36					$	0.37		$	0.68					$	0.75
	Diluted		$	0.36					$	0.37		$	0.66					$	0.73
Weighted average shares:
	Basic			279,525						279,525			316,011						316,011
	Diluted			285,142						285,142			324,804						324,804
Operating Margin				29	%		1	%		30	%		30	%		4	%		34	%

Notes:

(a)	Non-cash stock based compensation expense
(b)	Employer payroll taxes on employee exercises of non-qualified stock options
(c)	Amortization of acquired intangible assets
(d)	Gain on recovery of fully reserved receivables
(e)	Impairment of certain equity investments
(f)	Incremental income taxes associated with certain pro forma entries
(g)	Minority interest attributable to impairment of certain equity investments

-10-

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

				Three Months Ended						Six Months Ended
				June 30,						June 30,
				2002			2003			2002			2003
Cash flows from operating activities:
	Net income			$	54,308		$	109,727		$	101,892		$	213,918
	Adjustments:
		Provision for doubtful accounts and authorized credits			4,073			10,496			12,221			19,633
		Provision for transaction losses			—			9,080			—			18,073
		Depreciation and amortization			18,377			38,507			31,388			70,527
		Stock-based compensation			(776	)		1,499			137			3,771
		Tax benefit on the exercise of employee stock options			33,011			33,703			62,422			75,043
		Impairment of certain equity investments			—			—			1,181			230
		Minority interests and other			(1,870	)		2,379			(3,912	)		4,157
		Changes in assets and liabilities:
			Accounts receivable		(6,391	)		(20,252	)		(34,223	)		(55,076	)
			Funds receivable		—			822			—			(42,049	)
			Other current assets		(11,050	)		1,620			(12,611	)		2,878
			Other non-current assets		(3,241	)		(5,743	)		(2,023	)		(4,603	)
			Deferred tax assets, net		1,558			(1,475	)		(853	)		(859	)
			Accounts payable		2,002			10,407			2,509			17,233
			Due to customers and funds payable		—			2,915			—			49,796
			Accrued expenses and other liabilities		(2,945	)		(3,528	)		18,096			1,376
			Deferred revenue and customer advances		5,567			863			6,299			2,607
			Income taxes payable		217			17,662			2,590			22,033
Net cash provided by operating activities					92,840			208,682			185,113			398,688
Cash flows from investing activities:
	Purchases of property and equipment				(62,724	)		(186,079	)		(74,218	)		(229,987	)
	Purchases of investments				(100,150	)		(727,391	)		(308,395	)		(862,544	)
	Maturities and sales of investments				66,449			271,014			266,958			489,374
	Proceeds from sale of subsidiary and property and equipment				2,883			—			2,883			—
	Acquisitions, net of cash acquired				(11,053	)		—			(54,610	)		(4,389	)
Net cash provided by (used in) investing activities					(104,595	)		(642,456	)		(167,382	)		(607,546	)
Cash flows from financing activities:
	Proceeds from issuance of common stock, net				41,440			255,588			68,444			472,973
	Principal payments on long-term debt				(111	)		(491	)		(3,407	)		(798	)
Net cash provided by financing activities					41,329			255,097			65,037			472,175
Effect of exchange rate changes on cash and cash equivalents					10,442			15,816			10,130			18,927
Net increase in cash and cash equivalents					40,016			(162,861	)		92,898			282,244
Cash and cash equivalents at beginning of period					576,851			1,554,418			523,969			1,109,313
Cash and cash equivalents at end of period				$	616,867		$	1,391,557		$	616,867		$	1,391,557
Net cash provided by operating activities				$	92,840		$	208,682		$	185,113		$	398,688
Less: Purchases of property and equipment					(62,724	)		(186,079	)		(74,218	)		(229,987	)
Free cash flow				$	30,116		$	22,603		$	110,895		$	168,701

-11-

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

Net Revenues by Type		Three Months Ended
		June 30,			September 30,			December 31,			March 31,			June 30,
		2002			2002			2002			2003			2003
Transaction
	U.S	$	167,489		$	182,209		$	211,388		$	234,876		$	242,385
	Current quarter vs prior quarter		7	%		9	%		16	%		11	%		3	%
	Current quarter vs prior year quarter		48	%		53	%		58	%		49	%		45	%
	International		63,099			75,296			107,366			137,504			155,155
	Current quarter vs prior quarter		22	%		19	%		43	%		28	%		13	%
	Current quarter vs prior year quarter		152	%		163	%		173	%		166	%		146	%
	Payments		4,719			6,094			77,703			93,179			99,363
	Current quarter vs prior quarter		(1	%)		29	%		1175	%		20	%		7	%
	Current quarter vs prior year quarter		22	%		26	%		1281	%		1847	%		2006	%
	Total transaction		235,307			263,599			396,457			465,559			496,903
	Current quarter vs prior quarter		10	%		12	%		50	%		17	%		7	%
	Current quarter vs prior year quarter		66	%		73	%		122	%		118	%		111	%
3rd party advertising
	U.S		15,490			14,148			7,062			5,492			6,848
	Current quarter vs prior quarter		(15	%)		(9	%)		(50	%)		(22	%)		25	%
	Current quarter vs prior year quarter		(14	%)		(40	%)		(74	%)		(70	%)		(56	%)
	International		1,210			898			1,716			1,313			1,432
	Current quarter vs prior quarter		46	%		(26	%)		91	%		(23	%)		9	%
	Current quarter vs prior year quarter		37	%		(42	%)		110	%		59	%		18	%
	Payments		—			—			1,478			2,027			2,160
	Current quarter vs prior quarter		N/A			N/A			N/A			37	%		7	%
	Current quarter vs prior year quarter		N/A			N/A			N/A			N/A			N/A
	Total 3rd party advertising		16,700			15,046			10,256			8,832			10,440
	Current quarter vs prior quarter		(12	%)		(10	%)		(32	%)		(14	%)		18	%
	Current quarter vs prior year quarter		(11	%)		(40	%)		(64	%)		(54	%)		(37	%)
End-to-end services
	U.S		5,091			6,096			5,591			2,101			1,926
	Current quarter vs prior quarter		5	%		20	%		(8	%)		(62	%)		(8	%)
	Current quarter vs prior year quarter		(44	%)		(22	%)		27	%		(57	%)		(62	%)
	Payments		—			—			587			—			—
	Current quarter vs prior quarter		N/A			N/A			N/A			(100	%)		N/A
	Current quarter vs prior year quarter		(100	%)		(100	%)		607	%		N/A			N/A
	Total end-to-end services		5,091			6,096			6,178			2,101			1,926
	Current quarter vs prior quarter		5	%		20	%		1	%		(66	%)		(8	%)
	Current quarter vs prior year quarter		(46	%)		(25	%)		38	%		(57	%)		(62	%)
Offline net revenues			9,189			4,038			1,037			—			—
	Current quarter vs prior quarter		22	%		(56	%)		(74	%)		(100	%)		N/A
	Current quarter vs prior year quarter		(16	%)		(55	%)		(87	%)		(100	%)		(100	%)
Total net revenues		$	266,287		$	288,779		$	413,928		$	476,492		$	509,269
	Current quarter vs prior quarter		9	%		8	%		43	%		15	%		7	%
	Current quarter vs prior year quarter		47	%		49	%		89	%		94	%		91	%

-12-

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

Net Revenues by Segment	Three Months Ended
	June 30,			September 30,			December 31,			March 31,			June 30,
	2002			2002			2002			2003			2003
U.S.	$	197,259		$	206,491		$	225,078		$	242,469		$	251,159
Current quarter vs prior quarter		5	%		5	%		9	%		8	%		4	%
Current quarter vs prior year quarter		31	%		30	%		30	%		29	%		27	%
International		64,309			76,194			109,082			138,817			156,587
Current quarter vs prior quarter		22	%		18	%		43	%		27	%		13	%
Current quarter vs prior year quarter		148	%		152	%		172	%		164	%		143	%
Payments		4,719			6,094			79,768			95,206			101,523
Current quarter vs prior quarter		(1	%)		29	%		1209	%		19	%		7	%
Current quarter vs prior year quarter		12	%		18	%		1297	%		1889	%		2051	%
Total net revenues	$	266,287		$	288,779		$	413,928		$	476,492		$	509,269
Current quarter vs prior quarter		9	%		8	%		43	%		15	%		7	%
Current quarter vs prior year quarter		47	%		49	%		89	%		94	%		91	%

Net Revenues by Geography	Three Months Ended
	June 30,			September 30,			December 31,			March 31,			June 30,
	2002			2002			2002			2003			2003
U.S. net revenues	$	201,978		$	212,585		$	290,583		$	319,170		$	331,322
Current quarter vs prior quarter		5	%		5	%		37	%		10	%		4	%
Current quarter vs prior year quarter		30	%		29	%		62	%		66	%		64	%
% of total		76	%		74	%		70	%		67	%		65	%
International net revenues		64,309			76,194			123,345			157,322			177,947
Current quarter vs prior quarter		22	%		18	%		62	%		28	%		13	%
Current quarter vs prior year quarter		148	%		152	%		208	%		199	%		177	%
% of total		24	%		26	%		30	%		33	%		35	%
Total net revenues	$	266,287		$	288,779		$	413,928		$	476,492		$	509,269
Current quarter vs prior quarter		9	%		8	%		43	%		15	%		7	%
Current quarter vs prior year quarter		47	%		49	%		89	%		94	%		91	%

-13-

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

		Three Months Ended
		June 30, 2002			September 30, 2002			December 31, 2002			March 31, 2003			June 30, 2003
Confirmed Registered Users			49.7			54.9			61.7			68.8			75.3
	Current quarter vs prior quarter		8	%		10	%		12	%		12	%		9	%
	Current quarter vs prior year quarter		46	%		46	%		46	%		49	%		51	%
Active Users (1)			21.8			24.2			27.7			31.1			34.1
	Current quarter vs prior quarter		10	%		11	%		14	%		12	%		10	%
	Current quarter vs prior year quarter		49	%		52	%		56	%		57	%		57	%
Number of Listings			145.2			159.6			195.5			219.7			225.0
	Current quarter vs prior quarter		5	%		10	%		22	%		12	%		2	%
	Current quarter vs prior year quarter		47	%		47	%		55	%		59	%		55	%
Gross Merchandise Sales		$	3,395		$	3,766		$	4,600		$	5,317		$	5,635
	Current quarter vs prior quarter		9	%		11	%		22	%		16	%		6	%
	Current quarter vs prior year quarter		51	%		60	%		68	%		71	%		66	%

(1) Defined as all users, excluding Half.com and Internet Auction, who bid, bought, or listed an item within the previous twelve month period.

-14-

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

eBay completed its acquisition of PayPal on October 3, 2002. PayPal’s financial statements and supplemental operating data have been included in eBay’s consolidated financial statements beginning October 4, 2002. The following table presents PayPal financial information for each of the full quarters ended June 30, 2002 through September 30, 2002, for the period from October 4, 2002 through December 31, 2002, and for the full quarters ended March 31, 2003 and June 30, 2003.

				Three Months Ended
				June 30,			September 30,			December 31,			March 31,			June 30,
				2002			2002			2002			2003			2003
Revenue
		Transaction		$	52.5		$	58.1		$	72.6		$	92.2		$	99.4
			Current quarter vs prior quarter		9	%		11	%		25	%		27	%		8	%
			Current quarter vs prior year quarter		190	%		104	%		87	%		92	%		90	%
	Non- transaction			$	1.3		$	1.2		$	2.1		$	2.0		$	2.1
			Current quarter vs prior quarter		63	%		(8	%)		75	%		(5	%)		7	%
			Current quarter vs prior year quarter		(18	%)		(18	%)		75	%		150	%		69	%
	Total revenues			$	53.8		$	59.3		$	74.7		$	94.2		$	101.5
	Percent of revenue which is international				20.5	%		20.2	%		19.1	%		19.6	%		21.0	%
Metrics
	Total accounts (1)				17.8			19.7			23.3			27.2			31.1
			Current quarter vs prior quarter		16	%		11	%		18	%		17	%		14	%
			Current quarter vs prior year quarter		103	%		86	%		82	%		77	%		75	%
	Active accounts (2)				5.5			6.3			7.9			9.4			10.2
	Total number of payments				28.8			31.3			39.2			50.5			53.7
			Current quarter vs prior quarter		8	%		9	%		25	%		29	%		6	%
			Current quarter vs prior year quarter		91	%		74	%		76	%		90	%		86	%
		Total payment volume		$	1,615		$	1,787		$	2,138		$	2,628		$	2,843
			Current quarter vs prior quarter		11	%		11	%		20	%		23	%		8	%
			Current quarter vs prior year quarter		116	%		93	%		77	%		80	%		76	%
	Auction as % of total payment volume				59	%		58	%		69	%		67	%		66	%
Transaction rates
	Transaction revenue rate				3.25	%		3.25	%		3.40	%		3.51	%		3.50	%
	Transaction processing expense rate				1.14	%		1.19	%		1.29	%		1.27	%		1.30	%
	Transaction loss rate				0.38	%		0.42	%		0.37	%		0.34	%		0.32	%

(1)	Subsequent to Q3-02, cxcludes closed and locked accounts
(2)	Users that sent or received at least one payment during the quarter

-15-

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

The guidance provided below and elsewhere in this press release involves risks and uncertainties, and our actual results could differ materially from this guidance. Some of the factors that could affect our operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect our 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 our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting our investor relations site at www.shareholder.com/ebay. The guidance below is based on information available to us on the date hereof, and we assume no obligation to update it.

	Three months ending September 30, 2003
	GAAP			Adjustments			Pro Forma
Net revenue	$	515			—		$	515
Operating margin		28	%		3	%(a)		31	%
Diluted EPS	$	0.29		$	0.05	(b)	$	0.34

	Three months ending December 31, 2003
	GAAP			Adjustments			Pro Forma
Net revenue	$	575			—		$	575
Operating margin		31	%		3	%(a)		34	%
Diluted EPS	$	0.36		$	0.04	(b)	$	0.40

(a)

Pro forma guidance reflects estimated quarterly adjustments for amortization of acquired intangible assets of approximately $13 million, cumulative effect of the adoption of Financial Interpretation No. 46 on depreciation relating to our San Jose facility of approximately $6 million, payroll taxes on employee stock options of approximately $4 million, stock based compensation of approximately $1 million, and other adjustments estimated to result in an operating margin adjustment of 3% for the three months ending September 30, 2003, and for the three months ending December 31, 2003.

(b)

Net of tax, the above pro forma items are estimated to result in a $0.05 per diluted share adjustment for the three months ending September 30, 2003 and a $0.04 per share adjustment for the three months ending December 31, 2003.

-16-