eBay has agreed to purchase additional publicly-held common shares of Korea's Internet Auction Co. (IAC) from several institutional shareholders, including funds managed by Tiger Technology, Lone Pine Capital LLC, Viking Global Investors and others, collectively representing more than 23% of Internet Auction Co.'s total outstanding shares.

The purchase will be a cash transaction and will increase eBay's ownership of IAC from approximately 62% to nearly 86%. Based on an August 31, 2004 exchange rate of KRW1,152 to US$1.00, the purchase amount will approximate US$325 million. eBay may make additional purchases of IAC shares from other institutional shareholders at the same price in the coming days. In addition, eBay intends to pursue a tender offer in Korea for all remaining shares during the coming weeks at the same price of KRW125,000 per share.

eBay said it does not expect the purchase of these shares to affect its financial guidance for the third quarter of 2004 or the full year 2004 as issued in connection with its second quarter earnings release on July 21, 2004.

Other Coverage:

Reuters: http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=6124447

TheStreet.com: http://www.thestreet.com/_tscbrk/tech/internet/10180990.html

E-Commerce Times: http://www.ecommercetimes.com/story/EBay-Boosts-Presence-in-Asian-Auction-Scene-36304.html