eBay Files Tender Offer to Acquire Publicly-Held Shares of Internet Auction Co.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 16, 2003

eBay, The World's Online Marketplace (Nasdaq:EBAY; www.ebay.com) today announced that it has filed tender offer documentation in Korea to acquire, through a cash tender offer, the remaining publicly-held common shares of Internet Auction Co., Ltd. (IAC), the Korean online trading company (Kosdaq: 043790; www.auction.co.kr). The offer is only available in Korea.

The acquisition is expected to be completed by mid-December of 2003. eBay expects that the total price to be paid to acquire all of the IAC shares would be approximately $382 million, assuming all of the remaining 6,394,225 publicly-held shares of IAC are tendered, and based on the November 14, 2003 exchange rate of KRW1,171 to US$1.00. Since there is no minimum number of shares required to be tendered for eBay to complete the tender offer, eBay will purchase any shares tendered. eBay acquired majority ownership of IAC in February 2001, and currently owns slightly more than 50 percent of its outstanding shares.

eBay does not believe the acquisition will affect its financial guidance for the fourth quarter of 2003 and the full year 2004 as issued in connection with its third quarter earnings release on October 16, 2003.

More information about the acquisition and its effect on eBay can be found on eBay's investor relations website at http://investor.ebay.com/faq.cfm.

About eBay

eBay is The World's Online Marketplace(R). 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.

Disclaimer of Offer

This press release is being made for informational purposes only, and does not constitute, or form part of, any offer or invitation to sell, or any solicitation of any offer to purchase any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of or be relied on in connection with, any contract therefore. No indications of interest are sought by, nor will any be accepted in response to, this press release. The release, publication or distribution of this press release in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this press release is released, published or distributed should inform themselves about and observe such restrictions.

Forward-Looking Statements

This announcement contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, fluctuation in IAC's stock price, the reaction of the users and suppliers of IAC to the transaction, the future growth of IAC's services, the reaction of competitors and regulatory authorities to the transaction, foreign currency exchange rate fluctuations, and regulatory, political and economic conditions in Korea. More information about potential factors that could affect eBay's business and financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2002, and its Quarterly Reports on Form 10-Q. All forward-looking statements are based on information available to eBay on the date hereof, and the company assumes no obligation to update such statements.