®Press ConferenceMarch 2005

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Agenda

• Introduction to eBay

• Introduction to Baazee

• The Future

• Introduction to eBay

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Introduction to eBay

• eBay is The World’s Online Marketplace

• Founded by Pierre Omidiyar in 1995

• eBay has 135 million registered users worldwide.

• More than 430,000 people in the USA, and thousands more around the world, are making all or most of their living by selling on eBay.

• On any given day, over 44 million listings across 50,000 categories of products and services

• Profitable since its launch, eBay net revenues totaled $935.8 million in Q4-04 and $3.3 billion for the full year 2004.

• The most expensive item sold on eBay to date is a private business jet for $4.9 million.

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How eBay Works

We make inefficient markets efficient for millions of users…

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The eBay Marketplace

SellersSellers

Lowest costLowest cost

Highest velocityHighest velocity

Seller toolkitSeller toolkit

BuyersBuyers

Joy of discoveryJoy of discovery

SelectionSelection

ValueValue

Efficient Efficient Online Online

CommerceCommerce

..Where Millions of Buyers and Sellers Meet

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Registered Users

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

135Million

99%6 YearCAGR

1999 2000 2001 2002 20031998 2004

Q1 Q1 Q3 Q4 Q1Q4Q3Q2 Q2Q1 Q3 Q4Q4Q3Q2 Q3 Q1Q4 Q4 Q1 Q2 Q3 Q4Q3Q2Q2Q1 Q2

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Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

Listings

1999 2000 2001 2002 20031998

76%6 YearCAGR

2004

Q1 Q1 Q2 Q3 Q4 Q1Q4Q3Q2 Q2Q1 Q1 Q2 Q3 Q4Q4Q3Q2 Q3 Q3Q2Q1Q4 Q4 Q1 Q2 Q3 Q4

405Million

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

78%6 YearCAGR

Gross Merchandise Volume

20041999 2000 2001 2002 20031998

$9.8Billion

1999 2000 2001 2002 20031998

Q1 Q1 Q2 Q3 Q4 Q1Q4Q3Q2 Q2Q1 Q1 Q2 Q3 Q4Q4Q3Q2 Q3 Q3Q2Q1Q4 Q4 Q1 Q2 Q3 Q4

2004

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Revenue

83% 6 Year CAGR

1999 2000 2001 2002 2003Q1 Q2 Q3 Q4Q1Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4

2004Q1

1998Q2 Q3Q1

70%6 YearCAGR

Q4

$936Million

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Growth Comparison

(Real $M)

1,000,000

10,000

100

1

1 5 9 13 17 21 25 29 33 37 41

Years Since IPO

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Growth Comparison

(Real $M)

1,000,000

Inc.10,000

100

1

1 5 9 13 17 21 25 29 33 37 41

Years Since IPO

13

Growth Comparison

(Real $M)

1,000,000

GMV

Inc.10,000

100

1

1 5 9 13 17 21 25 29 33 37 41

Years Since IPO

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Transaction Velocity

2.8US

2.2

3.4

Inc.4.4

Transactions per day (Millions) - Q4 2004

Source: eBay Estimates

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#1 in e-commerce brand…

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4953

Unaided Brand Awareness of Online Shopping (%*) – Q4 2004

* Of survey respondentsSource: eBay Brand Tracking survey

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In the US…

• 1 out of every 3 people in the US who were on the Internet, came to eBay

* Nielson NetRatings

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In Germany...

…accounting for 12.5% of all time spent on the Internet

…generating more GMV than the worldwide sales of Porsche

…driving 3x more visits per month than McDonald’s

Internet usage

Porsche

McDonald's

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In UK...

Internet usage

…generating 10% of all time spent on the Internet

…generating ~ 2.5 x more GMVthan the sum of all box office receiptsBox Office receipts

…just acquired 10 millionth user10 million users

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In Korea…

1out of 2 …half of the people in their 20’s and 30’s are our registered users

…one clothing purchase per every four Koreans in ’04

$,$$$,$$$,$$$

...reached $1 billion in GMV faster than any Korean retailer

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In China …

…one new user every 6 seconds

…more GMV than two popular B2C sitesin China combined

…more visitors than Shanghai’s #1 shopping street Nanjing Road

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And Worldwide

eBay site

EuropeAustria BelgiumFrance GermanyIreland Italy Netherlands SpainSwitzerland SwedenUK

Argentina*Brazil*Chile*Colombia*Ecuador*Mexico*Uruguay*Venezuela*Peru*

*MercadoLibre sites

AmericasUSACanada

Minority investment

Asia/PacificAustralia KoreaNew ZealandTaiwanChinaSingaporeHong KongIndiaPhilippinesMalaysia

Presence in

32 Markets

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Global success

Leading e-commerce site in 9 of the top 10 markets

Germany UK South Korea

Australia France Italy

USAChina Canada

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…Built by a Community of Entrepreneurs

kellybeans (1294)

sunshine (758)

The PC Shack (3,912)

grandefromage (241)

dufferbob (42)

wizaardman (5758)

Built on principles of: • Trust• Open communication • Respect

eBay’s community includes: • Individuals• Small businesses • Global brands

Over 430,000 people making their living full or part time on eBay

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International potential

Global eCommerce (B2C)

2004 2005 2006 2007

US Europe Asia Pac ROW

$596B

InternationalOpportunity

nearly 3X US in 2007

$236B

27%

45%

24%

Source: IDC, B2C e-commerce excluding Travel & Groceries (March 2004)

32%

38%

26%

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International potential

2004 B2C eCommerce Market Penetration

eBay eBay

US Europe Asia Pac

24%

$76B

14%

$89B

3%

$61B

Total eCommerceMarket Size

RegionalPenetration

Source: IDC eCommerce ex-travel and grocery, March 2004; eBay GMV

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Asia Pacific represents a big opportunity

Asia Pac. US

Population(Million)

3,315 293

GDP($ Billion)

8,810 11,278

Internet users(Million)

279 189

e-commerce(B2C, $ Billion)

61 76

Source: Population and GDP-Economist (the world in 2004), Internet users-IDC and e-commerce-ICMM

Total B2C ecommerce less etravel and egrocery

1. Australia

2. China

3. Hong Kong

4. India

5. Korea

6. Malaysia

7. New Zealand

8. Philippines

9. Singapore

10. Taiwan

1. Australia

2. China

3. Hong Kong

4. India

5. Korea

6. Malaysia

7. New Zealand

8. Philippines

9. Singapore

10. Taiwan

eBay Markets

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Agenda

• Introduction to eBay

• Introduction to Baazee

• The Future

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Introduction to Baazee

• Baazee.com is India’s leading online marketplace

• Over 1 million registered users from 240 towns in India

• Since Aug 2004, a 100% subsidiary of eBay.com

• Most popular online shopping destination. (Source: IDC)

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Key Baazee Milestones

2000

- Three rounds of funding aggregating US$ 21 million from global investors including STAR TV

- Built management team

- Consumer launch with first brand awareness program

2001-2002

- Enhanced & scaled technology infrastructure

- Acquired and integrated Bidorbuy.com in India, the only meaningful competitor

- Enhanced Safety and Trust processes

- Launched PaisaPay Online Payments

- Commenced Auto and B2B categories

- Introduced commission-based fees

2003-2004

- Comprehensive Site revamp

- Increased pricing

- Introduced Fixed Price and Classifieds formats

- Launched money back warranty and loyalty programs

- Acquired by eBay

2005+

- Completing integration process with eBay

- Building on global brand identity

- Focus on growing exports

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The Baazee Community

Over 1 million confirmed registered users…..from over 240 cities

Buyers

• Average age: 18 to 40

• Value oriented

• Rapid growth coming from Class B/C towns

• Get access to products not otherwise available locally

Sellers

• A few thousand people are making their living either full time or part time on Baazee

• Some of these sellers further employ 2-5 people

• Ethnic specialty products from Class B/C towns get Metro buyers

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The Baazee Community

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The Baazee Community

•Users in over 240 cities

10 %

14 %

28 %

8 %

7 %

5 %

5 %

2 %

4 %

2 %

2 %

2 %

1 %

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Largest Categories - Practicals

Nokia 7610 Portable Discman Laptop

Electronics & CamerasMobile Phones IT

Diamond Ring Hero Honda BikeBean Bag & Lamp

HomeJewelry Motors

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Diverse and Unique Products

South Indian Dance “Bell Anklets”

Tibetan Prayer Wheel Aishwarya Rai-

Film star & Miss worldOriginal Memorabilia

Traditional north Indian Dry fruit sweets

‘Cradle of Civilization’ –Antique furniture piece

A ‘Hookah’ – TraditionalCommunity smoking pipe

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A Vibrant Marketplace

On any given day, Baazee has over 70,000 live listings across 2500 categories of products and services

• A digital camera sells every 34 minutes

• A camcorder sells every 75 minutes

• A USB device sells every hour

• A VCD sells every hour

• A MP3 player sells every 83 minutes

• A piece of men’s apparel sells every 32 minutes

• A book sells every 90 minutes

• A toy sells every 22 minutes

• A watch sells every 6 minutes

• A piece of jewellery sells every 9 minutes

• A laptop sells every 2 hours• A mobile handset sells every

10 minutes• A Bollywood costume sells

every 3 days.

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Integration process

• Integration complete

• Product integration commences

• Baazee product compatibility audit complete

• Beta testing of site with PS preview

• Integration process announced to users

• Look feel morphing with ebay

• eBay acquisition

Strategy Organisation Realignment

•AAA focus Ongoing reshaping of structure

•Focus on Community & PR

Product Morphing

•Announcement to Community

•Look & Feel integration

•Functional integration

Aug 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 March 30, 05

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Agenda

• Introduction to eBay

• Introduction to Baazee

• The Future

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A Unified Global Brand

• eBay.in is a unified global identity for eBay India in line with eBay Inc.

• eBay.in domain was chosen to give us a uniquely Indian identity

• eBay.in allows for strong marketing strategies

• Brand morphing strategy is in line with other eBay countries (eg. China, Taiwan, France, Spain, Italy)

Upto July 2004 August 2004 onwards April 2005 onwards June 2005 onwards

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Advantages to Baazee users

• Best in class product features (shops, bidder management etc)

• Simplified Seller tools(turbo lister, seller manager pro)

• More robust platform

• Best in breed processes

• Wider variety of goods

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And the Biggest Advantage

Global Trade

• Indian users can use one single eBay India ID to trade internationally

• Indian sellers can sell on any of the eBay 32 country sites

• Indian buyers can buy international products

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Potential for India

• India is a very good source for eBay International Buyers

• Sellers from India are already selling successfully directly on eBay.com and other eBay International sites

• Majority of exports to US, UK, Australia, Canada and Germany. It is also seen that sellers increasingly trade with users from countries where English is widely spoken

• Exports from India in around 15 categories. Major selling categories• Jewellery & Watches

• Clothing, Shoes & Accessories

• Collectibles

• Musical Instruments and Books

• A lot of listings from India are for Indian Culture like ethnic apparels, handicrafts, ethnic jewellery, and other unique offerings from India

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Listing of a Jewellery item

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Listing for a Handicraft item

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Global Trade

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