(EMAILWIRE.COM, August 06, 2002 ) PayPal, Inc. (Nasdaq: PYPL), a leading Internet payment service with major operations in the metropolitan Omaha area, today announced plans to build a state-of-the-art customer service and operations facility in La Vista, Nebraska. The new building, scheduled to be completed in early 2003, will total 115,200 square feet and accommodate up to 1200 people. This new building will feature innovative design and construction and will be the first of its kind to be built in the Omaha area.

"PayPal is committed to providing a world-class work environment for our employees," said Peter Thiel, CEO of PayPal. "They are crucial to PayPal's success. The planned facility demonstrates our commitment not only to our employees and customers but also to continued economic growth in the Omaha community."

"PayPal is a leading high tech company that has achieved significant success despite the volatile economy," said Nebraska Governor Mike Johanns. "I am delighted PayPal is expanding its Nebraska operations by bringing more jobs to the Omaha area."

PayPal's new campus-like development and setting will offer an enhanced work environment and amenities such as:

A window view and individual temperature control for each employee
Cafe with indoor and outdoor dining areas
Modern fitness center
Aesthetic location adjacent to a four-acre lake
Easy access to interstate highways
The new building will be the first of its kind in Omaha to be built using numerous finished products on site, rather than the traditional "stick-built" method. This will lower initial construction and operational costs, reduce construction time and increase building quality. The entire building will be constructed primarily of glass panels that admit natural light without heat gain or computer glare. The site also has enough space for a second building with similar square footage to accommodate PayPal's future growth.

Omaha Mayor Mike Fahey added, "PayPal is a shining example of the vibrant and growing business environment the metropolitan Omaha area fosters. Two years ago we welcomed PayPal to the area. Last April we gathered to celebrate two years of success with the announcement of an additional 100 jobs. Today brings us yet another exciting announcement. I congratulate PayPal and look forward to the company's continued success."

The new facility will consolidate PayPal's current 540 employees from two buildings in Omaha. It will be situated at the intersection of 126th Street and I-80 on 22 acres and will be the first building in the City of La Vista's Southport East Business Park. "PayPal will provide a major catalyst for this premiere commercial development and will enhance activity in our new gateway development corridor," said La Vista Mayor Harold "Andy" Anderson.

"The Greater Omaha Chamber of Commerce has worked with PayPal from its beginnings in Omaha and our economic development team continues to be a partner in PayPal's exciting expansion," said Lou Burgher, president of the Chamber. "We are delighted that PayPal recognizes the opportunity to grow and succeed in Omaha and look forward to more of the same successful collaboration in the future."

PayPal will continue to work closely with the City of La Vista, the Sarpy County Economic Development Counsel, the Greater Omaha Chamber of Commerce, real estate developer The Lund Company, building designer and general contractor Workstage, and various local contractors to ensure that the development, design and construction will be completed as quickly as possible. The building will be owned by PayPal in its entirety.

About PayPal

PayPal enables any business or consumer with email to send and receive Internet payments securely, conveniently and cost-effectively. PayPal's network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system. As of June 30, 2002, PayPal had 17.8 million member accounts, including 3.7 million business accounts. More than $3 billion was sent through the PayPal network in the first half of 2002.

Based in Mountain View, California, PayPal is available to users in 38 countries including the United States. Further information about the company can be found at www.paypal.com.

Forward Looking Statements
This press release contains forward-looking statements about PayPal that involve risks and uncertainties that could cause PayPal's actual results to differ significantly from those projected. Factors that might cause or contribute to such differences include, but are not limited to,PayPal's ability to implement new services on schedule and without diminishing ease of use, PayPal's ability to deal effectively with losses from fraudulent transactions, PayPal's ability to implement successfully strategies to increase the adoption of PayPal's electronic payment methods and PayPal's ability to compete with other payment systems. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. PayPal's filings with the Securities and Exchange Commission, including PayPal's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2002, include more information about factors that could affect PayPal's financial results.

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Produced for PayPal, Inc.

Contact:
Sravanthi Agrawal
PayPal, Inc.
888-337-3533
sagrawal@paypal.com

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PayPal, Inc.
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