X.com Partners for International Expansion With $30 Million in Equity Financing

Internet Payments Leader Taps Credit Agricole and Other Strategic Investors To Help Make Payments Service Available Abroad

PALO ALTO, Calif., August 30, 2000 – In a move designed to aid the international expansion of its leading online payment service, X.com (http://www.X.com) today announced a strategic investment round of $30 million, led by the investment arm of top French retail bank, Credit Agricole. X.com, provider of the popular X.com PayPal service, allows people and businesses to send and receive money instantly and securely via the Internet. The company, which currently serves more than 3.3 million U.S. customers, plans to use Series D investors to help provide X.com's payment service in the European Union, Japan, South America and other countries. The international investments in this round reflect the worldwide market opportunity for X.com's planned international payments exchange network, and the potential of its wireless service.

"X.com is creating a new, global payment system that will revolutionize payments by making them faster, more convenient, more secure, and much less expensive to process," said Elon Musk, X.com founder and Chief Executive Officer. "Our strategic partners share this vision, which is why we received an increased valuation for the company despite bearish capital markets."

X.com To Expand Internationally
X.com accounts are currently available only to users with U.S. email and physical addresses. X.com plans to expand internationally in three phases. Phase I, to be launched early this fall, will allow non-U.S. residents to open X.com accounts in the United States, in U.S. dollars. This will allow them to send and receive U.S. dollar payments within the United States, and should help increase foreign sales for U.S. e-commerce sites, including auctions. Phase II, to be launched later this year, will create local currency online payment exchanges within the EU countries, Japan, and South America. Phase III, expected next year, will allow instant, online international payment transactions between people in different countries involving different currencies.

Key Milestones
Since Spring 2000, X.com introduced the following new services and features:

Wireless Payments
X.com's PayPal service is available for use by Web-enabled mobile phone. Users can send payments, send or respond to payment requests, and check balance and transaction histories.

Business Accounts
In June, X.com extended its P2P service to businesses. For a 1.9% transaction fee on received payments, businesses (and individuals) can send and receive payments online and take advantage of additional features and services provided to X.com's fee-bearing accounts. With no advertising or marketing, the company has already registered more than 150,000 Business and Premier accounts.

Web Accept
Web Accept gives X.com business customers the ability to accept payments directly on their e-commerce site. This eliminates the need for shoppers to repeatedly enter credit card information or leave the Web site when making an online purchase. Shoppers send payment by clicking on a pre-embedded X.com button and entering their X.com password or credit card number. The payment is sent instantly to the business' X.com PayPal account.

Mass Payments
This feature lets X.com Business and Premier accountholders send large numbers of different payment amounts simultaneously online by simply visiting the X.com site and uploading a file of email addresses and amounts. Traditionally, businesses have mailed paper checks to customers through regular mail - an expensive, slow, and labor-intensive practice prone to error and loss. Because X.com's Mass Payments feature is similar to direct deposit, every transaction can be made instantly and at much lower cost - the lesser of $0.25 or 2% of the amount sent.

Auction Tools
The leading payment service for online auctions, with over half of eBay's 4 million auctions listing X.com's PayPal as their preferred payment method, X.com provides auction sellers with numerous features to facilitate swift settlement.

Accounting Tools
X.com provides its paying customers with downloadable transaction logs, compatible with Intuit® Quicken or QuickBooks and Microsoft Excel®, to simplify accounting for businesses and consumers.

X.com is the clear market leader in the online person-to-person payments space. X.com's PayPal service is the preferred online payment service for online community and group websites, including eGroups and eCircles, and the online event-planning service Evite. X.com's PayPal is also the leading payment service for online auctions, accepted by more than half of all auctions on eBay -- more than any other payment service.

In April, X.com announced a $100 million Series C funding round, led by Madison Dearborn Partners.

About X.com
X.com provides an instant and secure online payment service, integrated with consumer and business financial services. With a customer base of more than 3.3 million, X.com is the world's first and largest Web-based payment network, and the #1 financial site on the Internet, according to PC Data Online. X.com provides the preferred payment service for online auctions and online community and group Web sites. X.com's service, free to consumers, can be used from PCs or Web-enabled mobile phones. X.com is a privately held company headquartered in Palo Alto, California. X.com was recently named one of the 50 Most Important Private Companies in the World by Red Herring, one of the Top 25 New Companies by Fortune Small Business, and a Forbes Favorite Website in the magazine's latest "Best of the Web" issue.