eBay announced Wednesday 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 (www.auction.co.kr). The offer is only available in Korea.

As announced last week, eBay is offering KRW125,000 per share. eBay expects that the total price to be paid to acquire all of the IAC shares would be approximately KRW47 billion, assuming all of the remaining 378,691 publicly-held shares of IAC are tendered. Based on the September 8, 2004 exchange rate of KRW1,152.10 to US$1.00, the total price would approximate US$41 million. 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 at this price. The tender offer period is expected to begin on September 14 and end on October 5.

As a result of recent on-the-market block purchases of IAC shares from a number of institutional shareholders, eBay currently owns more than 97% of IAC's total outstanding shares. eBay intends to have IAC pursue a plan to voluntarily delist the shares from trading on the Kosdaq, in accordance with all legal and regulatory requirements.

eBay 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.