Dulles, VA and San Jose, CA, September 2, 1998 -- America Online, the world's leading Internet online service, and eBay, the leading person-to-person online trading community, today announced they have signed a three-year agreement under which AOL will receive guaranteed payments from eBay totaling $12 million. The new alliance will make it easier than ever for AOL members to buy and sell merchandise from one another online. Through the eBay service, AOL members interested in selling items simply post the item for sale in the appropriate category within the eBay area. eBay then facilitates the online auction for that item. Once the auction is complete and the winning bid identified, the winning bidder and the seller contact each other via email to complete the transaction. With eBay's unique service, AOL members can be sure they are getting market value for their merchandise in a safe online community. Likewise, members seeking to buy merchandise can find a wide selection of items in one safe, well-organized and convenient place online. eBay, the world's personal online trading community, will be the exclusive person-to-person auction service in the general merchandise category of the AOL Classifieds area and in several areas of the hobbies section of the AOL Interest channel for a minimum of one year, and is also available at Keyword: eBay. Currently, eBay has more than 600,000 items for auction. As of June 30, 1998, on average, eBay had more than 70,000 items for auction added daily by its more than 850,000 registered users. "More and more our members are realizing the ease and convenience of buying and selling online," said Barry Schuler, President of AOL Interactive Services. "Thanks to our expanded relationship with eBay, AOL members now have even easier access to their very own person-to-person trading community, ensuring they get the best possible price for their items, and giving buyers a convenient way to browse and shop." Steve Westly, eBay Vice President, Marketing and Business Development added, "eBay is the leading person-to-person online trading community, and AOL is the leading Internet online service. A partnership between the two is a natural synergy. This strengthened alliance will allow AOL members direct access to the greatest amount of choice when buying and selling online. In addition, AOL members will now have the added benefit of knowing they are part of eBay's safe, convenient online community."