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IBM and eBay Forge Broad e-business Alliance

eBay Chooses IBM WebSphere e-Infrastructure Software to Power its Next-Generation Trading Platform IBM to Expand Sales on eBay and Create Joint-Marketing Opportunities

Armonk, NY & San Jose, CA - 06 Sep 2001: IBM and eBay Inc. (NASDAQ:EBAY; http://www.ebay.com), the world's online marketplace, today announced a strategic software, sales and marketing alliance.

The alliance includes three components: eBay has selected WebSphere, IBM's e-infrastructure software, as the technology foundation for its next-generation trading platform; IBM will significantly expand its presence on eBay, making the global trading site a key sales channel for reaching targeted buyers; and the two companies have agreed to explore joint-marketing opportunities across online and offline media.

"As premier e-businesses such as eBay increase transactions and link operations with other enterprises, integrating disparate computing systems and business applications becomes critical," said Samuel J. Palmisano, president and chief operating officer of IBM. "An open, robust computing infrastructure, built around a common set of 'web services,' will enable this next phase of e-business. As the centerpiece of IBM's web services strategy, WebSphere manages billions of transactions per day and delivers the open platform required by dynamic e-businesses such as eBay. At the same time, eBay is a powerful vehicle for IBM to reach new buyers."

"eBay and IBM will help each other achieve even greater success," said Meg Whitman, President and CEO of eBay. "IBM's leadership in infrastructure technologies, combined with its global marketing muscle, will play a central role in furthering our growth. At the same time, our marketplace will provide a vibrant channel for IBM to reach new customers."

Important Technology Decision
eBay is currently upgrading its technology infrastructure to accommodate the site's projected growth during the next several years. The upgrade effort, referred to as "V3" within eBay, is designed to achieve several goals, including: increasing developer productivity and API integration; enhancing eBay's ability to easily add new features and user tools; allowing for greater flexibility in adding new businesses; improving site dependability; and, improving the overall user experience. eBay selected WebSphere because of its open standards as well as its strong reputation as a reliable platform for managing high-volume transactions. WebSphere is the fastest-growing e-infrastructure software in the industry according to IDC and Giga Information Group.

"WebSphere, with its Java-based J2EE technology framework, gives us tremendous business advantages," said Maynard Webb, President of eBay Technologies. "eBay will be able to grow reliably and cost effectively, and we will be able to do so while providing our users with the new services they want to transact more business."

New Sales and Marketing Opportunities
As part of the alliance, eBay will become a key auction site for IBM products. IBM already has a thriving business on eBay and recently established an IBM destination within eBay Stores. IBM will expand its sales of PCs, servers and software on the site. Finally, eBay and IBM will explore joint offline marketing opportunities across television, print and direct marketing channels.

"With more than 34 million registered users, eBay is a strong branding platform for almost any company. By increasing our presence on the site, we'll increase traffic to IBM's eBay store as well as to IBM.com," said Lou D'Ambrosio, vice president, marketing and sales, IBM Software Group. "We are excited about the marketing synergy between eBay and IBM, and believe our partnership will provide exciting opportunities for our customers, channels and our brands."

Contact(s) information

Tim Breuer
IBM Media Relations
(914) 766-1711
breuer@us.ibm.com

Kevin Pursglove
eBay
(408) 558-7458
kevinp@ebay.com

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