eBay Inc. and TOM Online Announce Joint Venture Agreement to Enable Next Phase Of E-Commerce Growth in China

eBay Inc. and TOM Online Announce Joint Venture Agreement to Enable Next Phase Of E-Commerce Growth in China

December 20, 2006

    SAN JOSE, Calif., SHANGHAI and BEIJING, Dec. 20
/Xinhua-PRNewswire/ -- 
eBay Inc. (Nasdaq: EBAY) and online portal and wireless
Internet company TOM 
Online (Nasdaq: TOMO; Hong Kong GEM: 8282) today announced
a joint venture 
agreement that will set the foundation for the next phase
of growth of e-
commerce and m-commerce in the rapidly growing Chinese
market. 
 
    eBay EachNet, eBay Inc.'s China-based subsidiary, and
TOM Online will 
combine expertise to build a new China marketplace in 2007.
The new 
marketplace will bring together the strengths of both
companies -- eBay 
EachNet's global e-commerce knowledge and large and active
trading community 
in China, and TOM Online's local market knowledge and
active wireless user 
base of more than 75 million. 

    The new marketplace will bring enhanced online and
mobile opportunities 
to buyers and sellers in China, evolving eBay's
participation in China and 
extending TOM Online's wireless service portfolio into
m-commerce. Upon the 
launch of the new marketplace, eBay EachNet users will be
invited to 
transition to the new site, and TOM Online will work to
deliver its user 
traffic to the site as well.

    "eBay has helped pioneer e-commerce in China, and
by combining our 
expertise with that of a strong local partner like TOM
Online, we are even 
better positioned to participate in this growing
market," said Meg Whitman, 
President and CEO of eBay Inc. "This agreement is a
sign of our continued 
commitment to delivering the best online buying and selling
experiences in 
China."

    "eBay is one of the world's most recognized
e-commerce brands and TOM 
Online has a proven track record of delivering outstanding
services to 
Chinese consumers," said Wang Lei Lei, CEO of TOM
Online. "The new online 
marketplace to be built by the joint venture will provide
an enhanced user 
experience, tailored for the China market, and will
capitalize on our 
companies' strengths in the emerging m-commerce
sector."

    eBay will have a 49% stake in the joint venture, and
TOM Online will have 
a 51% stake. Both companies will make financial
contributions to the venture, 
including a US$40 million cash contribution from eBay and
US$20 million in 
financing from TOM Online. If mutually agreed, the two
companies can equally 
share in an investment of up to an additional US$10
million. In addition, 
eBay will also contribute its EachNet subsidiary, while TOM
Online will 
contribute local management expertise, technology, and
brand. The formation 
of a joint venture will foster synergy among user
communities and 
distribution channels, enhance rapid product innovation
capabilities on a 
local platform, and promote mobile integration. 

    China has an Internet population of 123 million Web
users as of June 
2006, which grew by 19% over the last year, and the country
has more than 400 
million mobile users.  The China eCommerce market is
experiencing explosive 
growth, and could rise to 46 billion yuan in value next
year, from 5.6 
billion yuan last year, according to IResearch.  By working
together, eBay 
and TOM Online will improve their ability to tap into the
potential of new 
online commerce trends in China. This new venture builds on
the existing 
relationship between TOM Online and Skype, eBay Inc.'s
online communications 
business.

    Wang Lei Lei will be chief executive officer of the JV,
and drive the 
vision for the new local, China marketplace. eBay EachNet
CEO Jeff Liao will 
provide management support from eBay to the JV. Liao will
also continue to 
lead eBay's separate operations in China, including the
expansion of eBay's 
business efforts in China to promote global trade by
PRC-based sellers, as 
they ramp up their trading practices with people around the
world.

    eBay will also continue to grow the China Development
Center for 
worldwide product development under the local leadership of
recently 
appointed General Manager Daniel Lee, a former Yahoo! Asia
CTO. eBay Inc. 
expects to continue to increase headcount in China into
2007 as it evolves 
its presence in the market. 

    eBay does not expect this partnership to have a
material impact on eBay'
s financial guidance as issued in connection with its third
quarter earnings 
release on October 18, 2006.

    About eBay Inc.

    Founded in 1995, eBay pioneers communities built on
commerce, sustained 
by trust, and inspired by opportunity. eBay enables
ecommerce on a local, 
national and international basis with an array of Websites
-- including the 
eBay Marketplaces, PayPal, Skype, Kijiji, Rent.com and
Shopping.com -- that 
bring together millions of buyers and sellers every day. 

    About eBay EachNet

    eBay and EachNet, a leading e-commerce company in China
founded in 1999, 
have been working together since March 2002, when the two
companies formed a 
strategic relationship.  In June 2003, eBay increased its
investment in China 
by acquiring EachNet.  With eBay's global resources and
continued best 
practice sharing, eBay EachNet has become one of the major
online 
marketplaces in China. 

    About TOM Online

    TOM Online Inc. (Nasdaq: TOMO; HK GEM stock code: 8282)
is a leading 
wireless Internet company in China providing value-added
multimedia products 
and services. A premier online brand in China targeting the
young and trendy 
demographic, the company's primary business activities
include wireless 
internet services and online advertising. The company
offers an array of 
products such as SMS, MMS, WAP, wireless interactive voice
response services, 
content channels, search and classified information, free
and fee-based 
advanced email and online games. As of September 30, 2006,
TOM Online is the 
only portal in China that enjoyed a top three ranking in
every wireless 
internet service segment.

    TOM Online is a subsidiary of TOM Group Limited
("TOM Group"), one of 
the leading Chinese language media groups in the Greater
China region. TOM 
Group's diverse operations span five media sectors: the
Internet (through 
TOM Online Inc.), outdoor (through TOM Outdoor Media
Group), publishing, 
sports and TV & entertainment.

    http://www.tom.com/
    http://www.tomgroup.com/eng/index.asp

    Forward-Looking Statements

    eBay Inc.

    This announcement contains forward-looking statements
regarding eBay 
(including without limitation as described in the
quotations from management 
in this announcement) and their strategic and operational
plans related to, 
and the expected financial impact of, the announced
strategic agreement. 
Those statements involve risks and uncertainties, and
actual results could 
differ materially from those discussed. Factors that could
cause or 
contribute to such differences include, but are not limited
to, regulatory 
uncertainties relating to doing business in the People's
Republic of China, 
the rate of development of the mobile and internet-based
marketplace business 
sector in the People's Republic of China, the reaction of
users of each 
company's services to the strategic agreement and
associated product changes, 
the reaction of each company's competitors to the strategic
agreement, 
potential product development issues, and the possibility
that the expected 
benefits of the strategic agreement may not materialize to
the extent 
expected or at all. All information set forth in this
release is as of 
December 19, 2006, and neither company intends or
undertakes any duty to 
update this information to reflect future events or
circumstances. More 
information about potential factors that could impact each
company's business 
and financial results is included under the captions,
"Risk Factors" 
and "Management's Discussion and Analysis of Financial
Condition and Results 
of Operations," in the company's respective Annual
Report on Form 10-K for 
the fiscal year ended December 31, 2005 and Quarterly
Report on Form 10-Q for 
the quarter ended September 30, 2006, which are on file
with the U.S. 
Securities and Exchange Commission (the "SEC")
and available at the SEC's 
website at http://www.sec.gov . 

    TOM Online Inc.

    This press release of TOM Online Inc. (the
"Company"), contains 
statements that may be viewed as "forward-looking
statements" within the 
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 
21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking 
statements are, by their nature, subject to significant
risks and 
uncertainties that may cause the actual performance,
financial condition or 
results of operations of the Company to be materially
different from any 
future performance, financial condition or results of
operations implied by 
such forward-looking statements. Such forward-looking
statements include, 
without limitation, statements that are not historical fact
relating to the 
financial performance and business operations of the
Company, the continued 
growth of the telecommunications industry in China, the
expected benefit of 
any strategic alliances with other companies and our
ability to cooperate 
with our alliance partners, the development of the
regulatory environment and 
the Company's latest product offerings, and the Company's
ability to 
successfully execute its business strategies and plans,
including its ability 
to expand its market share and revenue through strategic
alliances.

    Such forward-looking statements reflect the current
views of the Company 
with respect to future events and are not a guarantee of
future performance. 
Actual results may differ materially from information
contained in the 
forward-looking statements as a result of a number of
factors, including, 
without limitation, any changes in our relationships with
telecommunication 
operators in China, the effect of competition on the demand
for the price of 
our services, changes in customer demand and usage
preference for our 
products and services, changes in the regulatory policies
of the Ministry of 
Information Industry and other relevant government
authorities, any changes 
in telecommunications and related technology and
applications based on such 
technology, and changes in political, economic, legal and
social conditions 
in China, India, and other countries where the Company
conducts business 
operations, including, without limitation, the Chinese
government's policies 
with respect to economic growth, foreign exchange, foreign
investment and 
entry by foreign companies into China's telecommunications
market. Please 
also see the "Risk Factors" section of the
Company's annual report for the 
year ended December 31, 2005 on Form F-20 (File No.
000-50631), as filed with 
the Securities and Exchange Commission.


    For more information, please contact: 

    eBay Inc.

    U.S. Media Relations Contact: 

     Hani Durzy, 
     Tel:    [phone]
     Email:  [e-mail]

    China Media Relations Contact:

     Linda Liu, 
     Tel:    [phone] x8910
     Email:  [e-mail]

    Investor Relations Contact: 

     Selim Freiha
     Tel:    [phone]
     Email:  [e-mail]

    TOM Online: 

    Media Relations Contact: 

     Rico Ngai
     Tel:    [phone] x6940
     Mobile: [phone]
     Email:  [e-mail]


SOURCE  TOM Online Inc.