Private Equity Solutions

eBAY INC. Announces Second Quarter 2005 Financial Results

Company Reports Record Q2 Net Revenues of $1.086 Billion Achieves Q2 GAAP Diluted EPS of $0.21 and Pro Forma Diluted EPS of $0.22 Raises 2005 Net Revenues and EPS Guidance

San Jose, CA, July 20, 2005 - eBay Inc. (Nasdaq: EBAY; www.ebay.com) reported financial results for its quarter ended June 30, 2005.

Private Equity Fund Of Funds EBay reported record consolidated Q2-05 net revenues of $1.086 billion, up 40% year over year; record operating income of $379.0 million, up 49% year over year, representing a 35% operating margin; and record pro forma operating income of $406.4 million, up 47% year over year, representing a 37% pro forma operating margin.
Consolidated net income in Q2-05 was a record $291.6 million, or $0.21 per diluted share. eBays pro forma consolidated net income was a record $307.2 million, or $0.22 per diluted share.

ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, today announced financial results for the second fiscal quarter of 2005 ended March 31, 2005. ScanSoft reported revenue of $53.1 million for the quarter ended March 31, 2005, a 24 percent increase over revenue of $42.8 million for the quarter ended March 31, 2004.

Curve Equity Exposed Fund These results exceeded the high end of the companys guidance of $1.050 billion for net revenues, and exceeded the companys guidance of $0.16 for earnings per diluted share, and $0.18 for pro forma earnings per diluted share.

Stamps.com Reports Third Quarter 2003 Financial Results Revenue Up 32% Year over Year; Customer Acquisition Momentum Builds SANTA MONICA, October 29, Stamps.com™ ( STMP) today announced financial results for the third fiscal quarter ended September 30, 2003. Third quarter revenue was up 32% versus the same quarter last year, and up 7% versus the second fiscal quarter of 2003. In addition, the company reported an increase in customer acquisition during the third quarter, particularly with higher value Power Plan customers.

Equity Income Funds EBay achieved remarkable results in Q2, said Meg Whitman, President and CEO of eBay. Excellent momentum in the US and Germany, as well as at PayPal, all helped deliver an impressive jump in revenues and profit.

Stamps.com Reports Second Quarter 2000 Financial Results Second Quarter Revenue Grows 80 Percent SANTA MONICA, Calif. July 13, Stamps.com today announced that second quarter revenue was $3.7 million, an increase of 80 percent over first quarter revenue. cash charges was $34.4 million, or $0.72 per share based on the weighted average common shares outstanding of 48.0 million. term investments ended the second quarter at $333.6 million, or $7 per share.

Capital Casebook Equity Key Financial and Operating Metrics

GAAP adjusted net income for the second quarter of fiscal 2006 was $8.4 million, an increase of 11% GAAP adjusted net income for the second quarter of fiscal 2005 of $7.5 million, remaining constant at $0.38 per diluted share. GAAP adjusted EBITDA in the second quarter of fiscal 2006 was $13.7 million, a 6% increase compared to $13.0 million in the second quarter of fiscal 2005. GAAP adjusted EBITDA is provided in the notes to the financial statements included in this press release.

Private Investment In Public Consolidated Net Revenues - Consolidated net revenues totaled a record $1.086 billion in Q2-05, which represented an increase of 40% from the $773.4 million reported in Q2-04.

Tom Huntington DivX, Inc. 0672 DivX, Inc. Reports Second Quarter 2007 Financial Results - Aug 09, - DivX, Inc. ( DIVX) today announced results for the second quarter ended June 30, 2007. Revenue for the second quarter was $18.3 million, an increase of 39 percent compared to revenue of $13.2 million reported in the second quarter of last year. GAAP net income in the second quarter of 2007 was $1.0 million, or $0.03 per diluted share and includes (1) based compensation of approximately $2.1 million, ($1.2 million, or $0.03, per diluted share, net of related taxes), and (2) operating costs directly attributable to Stage6 of approximately $2.4 million ($1.4 million, or $0.04 per diluted share, net of related taxes). Excluding the effect of these two items, GAAP net income of $3.6 million, or $0.10 per diluted share.

Equity Mutual Funds U.S. Marketplace Net Revenues - U.S. Marketplace net revenues totaled $423.6 million in Q2-05, representing 27% year-over-year growth.

Birmingham Contact Equity International Marketplace Net Revenues - International Marketplace net revenues totaled $418.8 million in Q2-05, representing 51% year-over-year growth.

Private Equity Investment Firm Payments Net Revenues - Payments net revenues totaled $243.9 million in Q2-05, representing 51% year-over-year growth.

Complying Deal Equity Funds Confirmed Registered Users - Cumulative confirmed registered users at the end of Q2-05 totaled 157.3 million, representing a 38% increase over the 114.0 million users reported at the end of Q2-04.

Equity Msn Private Wyoming Active Users - Active users, the number of users on the eBay platform who bid, bought, or listed an item within the previous 12-month period, increased to a record 64.6 million in Q2-05, a 34% increase over the 48.0 million active users reported in the same period a year ago.

American Equity Investment Listings - New listings totaled a record 440.1 million in Q2-05, 32% higher than the 332.3 million new listings reported in Q2-04.

Equity Index Funds Gross Merchandise Volume (GMV) - GMV, the total value of all successfully closed listings on eBays trading platforms, was a record $10.9 billion, representing a 36% year-over-year increase from the $8.0 billion reported in Q2-04.

Equity Private Team Wyoming Total Payments Accounts - PayPals business had 78.9 million total accounts at the end of Q2-05, a 56% increase from the 50.4 million reported in Q2-04. Total payments accounts represents the cumulative total of all accounts opened, excluding accounts that have been closed or locked, and users that made payments with PayPal but have not registered.

Equity Group Investment Total Payment Volume (TPV) - TPV, the dollar volume of payments initiated through the PayPal system, was a record $6.5 billion in Q2-05, a 49% increase from the $4.4 billion reported in Q2-04.

Capital Development Equity GAAP Operating Income - GAAP operating income increased 49% year over year to $379.0 million, or 35% of net revenues.

Article Between Difference Pro Forma Operating Income - Pro forma operating income increased 47% year over year to $406.4 million, or 37% of net revenues. Pro forma operating income represents GAAP operating income adjusted to exclude certain items, primarily stock based compensation expense and related payroll taxes and amortization of acquired intangible assets.

Contact Equity Private Wyoming GAAP Net Income - GAAP net income increased 53% year over year to $291.6 million, or $0.21 per diluted share.

Agreement Equity Investment Pro Forma Net Income - Pro forma net income increased 55% year over year to $307.2 million, or $0.22 per diluted share. Pro forma net income represents GAAP net income adjusted to exclude certain items, primarily stock based compensation expense and related payroll taxes, amortization of acquired intangible assets and income taxes related to these items.

Business Equity Funds Operating and Free Cash Flows - Operating cash flows totaled $496.6 million. Free cash flows, representing operating cash flows less capital expenditures of $90.5 million, totaled $406.1 million.

Private Equity Fund Key Category Performance* - Based on Q2-05 GMV, the following categories delivered $1 billion or more in worldwide annualized GMV: eBay Motors at $14.3 billion; Clothing & Accessories at $3.3 billion; Consumer Electronics at $3.2 billion; Computers at $2.9 billion; Home & Garden at $2.5 billion; Books/Movies/Music at $2.4 billion; Sports at $2.1 billion; Collectibles at $2.0 billion; Toys at $1.6 billion; Jewelry & Watches at $1.5 billion; Business & Industrial at $1.5 billion; and Cameras & Photo at $1.3 billion.

Investment Property Home Fixed Price Trading - eBays fixed price trading contributed approximately $3.2 billion or 29% of total GMV during Q2-05, primarily from eBays Buy It Now feature.

Managed Equity Funds EBay Stores - At the end of Q2-05, eBay hosted approximately 299,000 stores worldwide, with approximately 173,000 stores hosted on the U.S. site.

Capital Entrepreneurial Equity Consolidated Financial and Operating Summary

Private Equity Hedge Funds EBay reported record consolidated net revenues of $1.086 billion in Q2-05, representing a 40% year-overyear increase. On a year-over-year basis, consolidated net revenues reflected a foreign currency translation benefit in Q2-05 of approximately $24.7 million. On a sequential basis, consolidated net revenues were negatively impacted by foreign currency translation in Q2-05 by approximately $17.3 million.

Email Equity Private Wyoming Gross profit was $894.5 million, or 82% of net revenues, higher than the 81% reported in Q2-04. The percentage increase was primarily the result of an increase in our Payments segment gross margin.

Equity Loan On Investment Sales and marketing expenses totaled $287.1 million, or 26% of net revenues, up from the 24% reported in Q2-04. The percentage increase was primarily the result of international expansion and industry-wide increases in Internet marketing rates, partially offset by marketing efficiencies. Sales and marketing expenses as a percentage of net revenues in Q2-05 was consistent with Q1-05.

Equity Income Mutual Funds Product development expenses totaled $71.6 million, or 7% of net revenues, down from the 8% reported in Q2-04.

Private Equity Group General and administrative costs totaled $129.3 million, or 12% of net revenues, down from the 13% of net revenues reported in Q2-04. The percentage decrease was primarily the result of a lower transaction loss rate in our Payments segment due to improved transaction loss detection and related loss prevention programs.

Private Investment Public Income from operations totaled $379.0 million during Q2-05, a 49% increase over the $253.9 million reported in Q2-04. On a pro forma basis, income from operations totaled $406.4 million, a 47% increase over the $275.6 million reported in Q2-04. Included in both the GAAP and pro forma Q2-05 consolidated income from operations was a $12.5 million year-over-year net benefit from changes in foreign exchange rates. On a sequential basis, both the GAAP and pro forma consolidated income from operations were negatively impacted by foreign currency translation in Q2-05 by approximately $10.1 million.

Real Estate Private Equity Interest and other income, net, totaled $32.5 million in Q2-05, up from the $22.4 million reported in Q2- 04. The increase was primarily the result of increased interest income earned on larger cash, cash equivalents, and investment balances.

Contact Equity Private Us The GAAP effective tax rate for Q2-05 was 29%, a decrease from the GAAP effective tax rate of 30% for Q2-04, and an increase from the 28% for Q1-05. The pro forma effective tax rate for Q2-05 was 30%, a decrease from the pro forma effective tax rate of 31% for Q2-04, and an increase from the 29% for Q1-05.

Real Estate Equity Investment The lower GAAP and pro forma effective tax rates for Q2-05, as compared to Q2-04, and the higher sequential GAAP and pro forma effective tax rates for Q2-05 reflect changes in the companys geographic business mix.

Structuring Venture Capital The company reported $496.6 million in operating cash flows and $90.5 million of capital expenditures in Q2-05, resulting in free cash flows of $406.1 million. The companys cash, cash equivalents, and investments totaled more than $3.8 billion at the end of Q2-05.

Equity Private Quebec Team Business Outlook

Equity Mail Private Wyoming The following updated guidance reflects current business trends and assumed exchange rates. The updated guidance is based on an assumed weighted average exchange rate of US $1.20 per Euro, as compared to the prior guidance, which assumed a weighted average exchange rate of US $1.30 per Euro. The guidance does not include the impact of the completion of the acquisition of Shopping.com or any other potential acquisitions.

Investment Home Equtiy Loan Net Revenues - eBay now expects consolidated net revenues for 2005 to be in the range of $4.340 billion to $4.410 billion. In Q3-05, eBay now expects consolidated net revenues to be in the range of $1.045 billion to $1.070 billion, reflecting a stronger US dollar and strong business momentum.

Private Equity Jobs GAAP Diluted EPS - eBay now estimates GAAP earnings per diluted share for the full year 2005 to be in the range of $0.77 to $0.78, an increase from the previous guidance of $0.71 to $0.73. In Q3-05, eBay now estimates GAAP earnings per diluted share to be $0.18.

Equity Investment Strategy Pro Forma Diluted EPS - eBay now estimates pro forma earnings per diluted share for the full year 2005 to be in the range of $0.82 to $0.83, an increase from the previous guidance of $0.76 to $0.78. In Q3-05, eBay now estimates pro forma earnings per diluted share to be $0.19.

Education Equity Investment Capital Expenditures - eBay continues to expect its capital expenditures to be in the range of $340 million to $400 million for the full year 2005, which amount to approximately 8% to 9%, respectively, of eBays guidance for net revenues. These expected capital expenditures for 2005 excludes the Q1-05 payment of a lease obligation for our headquarters facility of approximately $126 million.

Private Equity Company Quarterly Conference Call

Equity Guide In Investment EBay will host a conference call to discuss second quarter results at 2 pm Pacific Time today. A live webcast of the conference call can be accessed through the companys Investor Relations website at http://investor.ebay.com. In addition, an archive of the webcast will be accessible through the same link.

Contact Equity Private Quebec Non-GAAP Measures

Home Equity Investment To supplement the companys consolidated financial statements presented in accordance with GAAP, eBay uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include pro forma net income, pro forma earnings per diluted share, pro forma operating margin, and free cash flows. These non-GAAP measures are provided to enhance investors overall understanding of the companys current financial performance and the companys prospects for the future.

Dimension Equity In Private Specifically, the company believes 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 its core operating results. In addition, because eBay has historically reported certain non-GAAP results to investors, the company believes the inclusion of non-GAAP measures provides consistency in the companys 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. Reconciliation of all non-GAAP measures included in this press release, to the nearest GAAP measure, can be found in the financial tables included in this press release.

Credit Equity Home Investment About eBay

Private Equity Investor EBay is The Worlds 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. Through an array of services, such as its payment solution provider PayPal, eBay is enabling global e-commerce for an evergrowing online community.

Equity Guarantee Insurance Forward-Looking Statements

Private Equity Analyst 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 the companys actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: the companys need to manage an increasingly large company with a broad range of businesses of varying degrees of maturity; the companys need to increasingly achieve growth from its existing users as well as from new users in its more established markets; the companys ability to deal with the increasingly competitive e-commerce environment, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; fluctuations in foreign exchange rates; the litigation, regulatory, credit card association, and other risks specific to PayPal as it continues to expand geographically; the companys need to manage other regulatory, tax, and litigation risks even as its product offerings expand and its services are offered in more jurisdictions; the companys ability to upgrade and develop its systems, infrastructure and customer service capabilities to accommodate growth at a reasonable cost; the companys ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion; the companys ability to profitably expand its model to new types of merchandise and sellers; and, the companys ability to profitably integrate and manage recent and future acquisitions and other transactions. The forward looking statements in this release do not include the potential impact of any acquisitions, such as the pending acquisition of Shopping.com Ltd., that may be completed after the date hereof.

Equity Investment Policy More information about factors that could affect the companys operating results is included under the captions Risk Factors That May Affect Results of Operations and Financial Condition and Managements Discussion and Analysis of Financial Condition and Results of Operations in the companys annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting the companys investor relations site at http://investor.ebay.com. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the company on the date hereof. eBay assumes no obligation to update such statements.

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