eBay Acquires Industry Leading Mobile Application Developer

SAN JOSE, Calif.--(BUSINESS WIRE)--eBay Inc. (NASDAQ:EBAY) today announced it has acquired Critical Path Software, a leading mobile application developer that has worked with eBay for more than two years to help deliver popular mobile apps such as the eBay for iPhone® app, and StubHub, eBay Classifieds and Shopping.com iPhone applications. Critical Path Software’s proven mobile development capabilities will play an integral role in enabling eBay to accelerate improvements to the mobile experience for customers globally. Terms of the agreement were not disclosed.

“We’re very serious about innovating in mobile commerce, and this acquisition underscores our commitment to bringing the very best and brightest in the field to eBay”

“We’re very serious about innovating in mobile commerce, and this acquisition underscores our commitment to bringing the very best and brightest in the field to eBay,” said Mark Carges, chief technology officer and senior vice president, global products, eBay Marketplaces. “Integrating the Critical Path Software team into eBay will be a big win for mobile shoppers around the world; combined with the talent on our team today, we can make shopping and selling anywhere, anytime, for almost anything, even better.”

With more than 200 million listings available globally at any given time on eBay, shoppers have access to a wide selection of merchandise right from their mobile phones. eBay Mobile collaborated with Critical Path Software most recently on eBay Inc.’s most popular mobile app, the iPhone 2.0 core eBay app, which has been downloaded by more than 14 million times since its launch in 2008. Critical Path Software also was a key contributor in developing mobile apps enabling users to buy tickets on-the-go on StubHub; search local listings on eBay Classifieds; and access more than 7,000 global merchants on Shopping.com.

About eBay Inc. Mobile

eBay launched its first application for the iPhone in July 2008 and has since become a leader in mobile commerce. Its core iPhone application, which is available free via iTunes in eight languages and 190 countries, has been downloaded more than 14 million times and allows users to fully browse and buy without leaving the application. The eBay app for the iPad™ debuted in the top ten most downloaded free iPad apps in the iTunes Store and delivers a dramatically different, visually compelling shopping experience to browse and purchase the vast selection of products available on eBay. eBay’s suite of mobile apps, including Selling, Classifieds, StubHub and Deals, make selling and buying possible virtually anywhere, anytime. In 2009, eBay’s mobile gross merchandise volume (GMV) – the value of all goods sold – was more than $600 million. eBay expects to generate $1.5 billion in GMV through mobile commerce in 2010.

eBay Inc.'s PayPal™ division has been delivering mobile payments since 2005 and has a mobile app for iPhone®, Android™, BlackBerry® and Windows® Phone 7 smartphones, as well as SMS and WAP-based payments solutions. PayPal offers merchants an easy way for shoppers to checkout on mobile websites via Mobile Express Checkout and mobile developers can use PayPal for in-app payments using PayPal's Mobile Payments Library. In 2009, $141 million in payments were transacted over PayPal's mobile applications and PayPal expects to close out 2010 with more than $500 million in mobile payment volume from five million PayPal members worldwide.

For more information on eBay Mobile, visit www.ebay.com/mobile.

About eBay Inc.

Founded in 1995 in San Jose, Calif., eBay Inc. connects hundreds of millions of buyers and sellers globally through eBay, the world's largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive online payments. We also reach millions through specialized marketplaces such as StubHub, the world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and our global portfolio of online brands, visit www.ebayinc.com.

All designated trademarks and brands are the property of their respective owners.

About Critical Path Inc.

Critical Path Software is a leading mobile application development company, based in Portland, Oregon, built on a foundation of pioneering the growth of new technologies since 1991. The company was one of the first developers to create mobile experiences for the iPhone®, Android™ and Windows® Phone 7 platforms. Critical Path Software has helped create mobiles apps that are consistently the top apps in their respective categories, such as lifestyle, shopping, health and fitness and travel. Critical Path Software is a team of talented software developers and quality assurance (QA) professionals, with a constant drive to improve the mobile user experience.

Forward-Looking Statement

This announcement contains forward-looking statements relating to the future performance of our businesses that are based on its current expectations, forecasts and assumptions. These statements include, but are not limited to, statements regarding eBay’s plans for Critical Path Software and mobile applications and future growth in mobile commerce. Those statements involve risks and uncertainties, and actual results may differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: the continuing impact of the global economic downturn, changes in political, business and economic conditions, including any conditions that affect ecommerce or mobile commerce growth; fluctuations in foreign currency exchange rates; the company’s ability to profitably integrate, manage and grow businesses that have been acquired recently or may be acquired in the future; the company’s need to increasingly achieve growth from its existing users, particularly in its more established markets; the company’s ability to deal with the increasingly competitive ecommerce and mobile commerce environments, 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; the company’s need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the effect of management changes and business initiatives; the company’s need and ability to manage other regulatory, tax and litigation risks as its services are offered in more jurisdictions and applicable laws become more restrictive; any changes the company may make to its product offerings; the company’s ability to upgrade and develop its systems, infrastructure and customer service capabilities at reasonable cost; and the company’s ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion.

More information about potential factors which could affect our business and results is included in eBay's Annual Report on Form 10-K for the year ended December 31, 2009, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and other periodic filings. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.