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Q4 2007 Financial HighlightsJanuary 23, 2008

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This presentation contains non-GAAP measures relating to the company's performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in the appendix at the end of this presentation.

This presentation may make forward-looking statements regarding matters that involve risk and uncertainty, including those relating to the company’s ability to grow its businesses, user base and user activity.

Our actual results may differ materially from those discussed in this call for a variety of reasons, including our increasing need to grow revenues from existing users in established markets, an increasingly competitive environment for our businesses, the complexity of managing a growing company with a broad range of businesses, regulatory, tax, as well as IP and other litigation risks (including risks specific to PayPal and the financial industry, and risks specific to Skype’s technology and to the VoiP industry), our need to upgrade our technology and customer service infrastructure at reasonable cost while adding new features and maintaining site stability, foreign-exchange-rate fluctuations, changes in political, business, and economic conditions, and the impact and integration of recent and future acquisitions.

You can find more information about factors that could affect our results in our annual report on our Form 10-K and our quarterly reports on Form 10-Q (available at http://investor.ebay.com). You should not unduly rely on any forward-looking statements, and we assume no obligation to update them. All information in the presentation is as of January 23, 2008, and we do not intend, and undertake no duty, to update this presentation.

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Q4 07 Summary

Very good quarter financially …

• Strong revenue growth… first $2B quarter

• Stronger non-GAAP earnings growth

• Excellent free cash flow

• Share repurchases:>$300M in Q4… ~$3.2B since July ’06

• Approved for additional $2B share repurchase program

• Caps off extremely strong year financially

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Q4 07 Summary… Strong Top-line Growth

Revenue (in $millions)

Note: Calculation of Organic Y/Y growth is included in the Appendix of this presentation

1,3291,390 1,411

1,7681,834

1,889

1,720

1,449

2,181

Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Reported Y/Y Growth 42% 35% 30% 31% 29% 27% 30% 30% 27%Organic Y/Y Growth 34% 30% 21% 20% 21% 21% 23% 23% 18%

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Q4 07 Summary... Stronger Earnings Growth

(in $)Non-GAAP EPS

Note: Calculations of Non-GAAP EPS and Non-GAAP Op. Margins are included in the Appendix of this presentation*$0.04 EPS from one-time tax benefit

0.45

0.26

0.31

0.41*

0.340.33

0.240.240.24

Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Reported Y/Y Growth 44% 20% 10% 28% 29% 39% 40% 59% 45%

Non-GAAP Op. Margin 34.0% 33.1% 32.6% 32.1% 33.4% 33.6% 32.4% 31.4% 34.6%

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Q4 07 Summary… Excellent Free Cash Flow Generation

(in $millions)Free Cash Flow

Note: Calculation of FCF is included in the Appendix of this presentation

428 451

367

479533 510529

385

665

Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Reported Y/Y Growth 44% 56% -10% -14% 24% 6% 45% 32% 26%

Capex % of Revenue 7% 10% 11% 9% 6% 5% 7% 6% 6%

FCF % of Revenue 32% 32% 26% 27% 31% 27% 29% 27% 30%

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540 614 613 617 643 697

673 678806

638624509

Q306 Q406 Q107 Q207 Q307 Q407

6.1 6.8 6.7 6.7 6.7 7.3

7.8 7.7

8.9

6.57.7 7.5

Q306 Q406 Q107 Q207 Q307 Q407

$ millions1,049 1,238 1,250 1,291 1,321 1,503

y/y growth22% 24% 23% 26% 26% 21%

$ billions12.6 14.4 14.3 14.5 14.4 16.2

y/y growth17% 20% 14% 12% 14% 12%

Revenue GMV($millions) ($billions)

Int’l

US

Business Update… Marketplaces Revenue and Volume

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Business Update… Marketplaces Operating Metrics

Active user growth ex-China/ Taiwan was 7% y/y.

Focus on re-engaging users

Int’l listings ex-China/Taiwan grew 10% y/yGlobal listings ex-China/ Taiwan grew 7% y/y

Int’l exposure increasingly important

Notes:•*Global active users number reflects all users, excluding users of StubHub, Half.com and IAC, who bid on, bought, or listed an item within the previous 12-month period.•More information on these metrics can be found on Page 10 of our Earnings Press Release dated January 23, 2008

Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Active Users (in millions)

Global Active Users* 79.8 81.8 82.9 83.3 83.0 83.2Y/Y Growth 17% 14% 10% 7% 4% 2%

New Listings (in millions)

US 261 272 258 244 254 281Y/Y Growth 16% 4% -2% -8% -2% 3%

Int'l 323 339 330 316 301 357Y/Y Growth 38% 19% 6% -5% -7% 5%

Total Listings 584 610 588 559 556 637Y/Y Growth 27% 12% 2% -6% -5% 4%

GMV (in $millions)

US 6,112 6,777 6,736 6,700 6,729 7,331Y/Y Growth 13% 14% 8% 10% 10% 8%

Int'l 6,528 7,657 7,545 7,764 7,666 8,883Y/Y Growth 21% 26% 20% 14% 17% 16%Fx Neutral Y/Y Growth 16% 17% 11% 8% 9% 8%

Total GMV 12,639 14,434 14,281 14,464 14,395 16,213Y/Y Growth 17% 20% 14% 12% 14% 12%Fx Neutral Y/Y Growth 15% 16% 10% 9% 9% 8%

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4.4%

12.3%3.1%

0.4%

4.3%

3.4%

5.2%

21.3%

0.4%

New ListingsGrowth

China/TaiwanStubHub

ConversionRate & ASP

FX Q4'07 Y/Y GMVGrowth

StubHubChina/Taiwan

Non-GMV Biz Pricing,Format Shift,

Other

Q4'07 Y/YRevenueGrowth

• Shopping.com• Classifieds• Advertising

Q4 Listings to Marketplaces Revenue Walk

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Diversifying Marketplaces Revenue Streams

*Advertising revenue represents all Advertising from Marketplaces, excluding “Other” revenue and advertising realized on Shopping.com and Classifieds sites

Q4 06 Q4 07 Q4 06 Q4 07 Q4 06 Q4 07

Shopping.com Advertising* Classifieds

+26% +104%+182%

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Hypotheses

Primary Tests

Observations

Lower prices will stimulate marketplace supply – enhance selectionPhotos will enhance buyer experience onsite

Reduction in Final Value Fee (back end)Reduction in Insertion Fee (front end)Free Gallery Photo

Impact on key metrics Minimal in Final Value test (A)

Good lift in Insertion Fee test (A)

Conversion improvement in Free Gallery test

Sellers more interested in reducing upfront fee risk… back-end success fee reductions are secondaryBuyers like pervasive photos across all listingsConclusions

(A) Key Metrics include New Listings and Sold Items.

Action PlanNew 2008 Price Restructure … specifically addresses our conclusionsAnnouncement upcoming to Sellers next week

Pricing… Listening and Responding to Buyers and Sellers

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216 248 260 265 270316

189 201

246

179169133

Q306 Q406 Q107 Q207 Q307 Q407

6.07.0 7.2 7.4 7.7

9.1

3.73.53.4

2.7

4.9

3.9

Q306 Q406 Q107 Q207 Q307 Q407

$ millions350 417 439 454 470 563

y/y growth41% 37% 31% 34% 35% 35%

$ billions8.6 10.4 10.8 11.1 11.6 14.0

y/y growth37% 36% 30% 32% 34% 35%

Revenue Net TPV($millions) ($billions)

Int’l

US

Business Update… PayPal Revenue and Volume

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Business Update… PayPal Operating Metrics

Holiday promotions helped drive active user growth

Third consecutive quarter of accelerating TPV

Continued benefits from synergies

Notes: •Global Active Registered Accounts reflects all registered accounts, excluding non registered users, that successfully sent or received at least one payment or payment reversal through PayPal within the previous 12-month period.•TPV has been adjusted to Net TPV, which is the total dollar volume of payments, net of payment reversals successfully completed through the PayPal system during the quarter, excluding the payment gateway business. •Transaction exp and transaction loss are expressed as % of Net TPV.•Penetration Rate has been adjusted to reflect the total dollar volume of addressable GMV paid using PayPal in relation to the total dollar volume of addressable GMV.•More information on these metrics can be found on Page 11 of our Earnings Press Release dated January 23, 2008

Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Active Registered Accounts (in millions)

Global Active Accounts 47.2 49.4 51.3 52.8 54.8 57.3Y/Y Growth 21% 20% 18% 16% 16% 16%

Net TPV (in $millions)

On eBay 5,516 6,754 6,665 6,460 6,513 7,928Y/Y Growth 27% 26% 19% 18% 18% 17%

Merchant Services 3,129 3,686 4,112 4,621 5,055 6,116Y/Y Growth 59% 56% 50% 57% 62% 66%

Total Net TPV 8,645 10,439 10,777 11,080 11,569 14,044Y/Y Growth 37% 36% 30% 32% 34% 35%

On-eBay Penetration Rate

Global 50.7% 51.6% 52.3% 51.9% 53.6% 54.0%

Transaction rates

Transaction exp 1.13% 1.13% 1.15% 1.18% 1.21% 1.18%

Transaction loss 0.37% 0.43% 0.33% 0.31% 0.27% 0.27%

Leveraging technology to minimize transaction loss

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5066

7990

115

98

Q306 Q406 Q107 Q207 Q307 Q407

Business Update… Skype Revenue and Operating Metrics

Revenue ($millions and Y/Y growth)

Notes: • Total user number reflects users that may have registered through non-Skype based web sites.• Skype-to-Skype minutes are estimated; prior period amounts are updated to conform to current estimation methodology.• More information on these metrics can be found on Page 12 of our Earnings Press Release dated January 23, 2008.

Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07

Registered Users (in millions) 136 171 196 220 246 276Y/Y Growth -- 129% 107% 94% 81% 61%

Skype to Skype Minutes (in billions) 7.5 9.5 10.9 10.8 9.8 11.9Y/Y Growth -- 80% 53% 41% 31% 26%

Skype Out Minutes (in billions) 1.1 1.5 1.3 1.3 1.4 1.6Y/Y Growth -- 182% 98% 57% 25% 10%

y/y growth123% 103% 96% 76%

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Total Non-GAAP Operating Expenses

25.6%

23.0%

Q406 Q407

• Leveraged technology• Positive mix shift

Sales & Marketing(% of Revenue)

6.5%6.9%

Q406 Q407

• Improvements to buyer experience

• Product enhancements

Product Development(% of Revenue)

14.4%

12.9%

Q406 Q407

• Leveraged existing infrastructure

General & Admin.(% of Revenue)

Q4 Non-GAAP Op Inc:

Q4 Non-GAAP Net Inc: $611M

$755M

+42%

+31%

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4.45.0

0.7

0.7 0.30.5

Q307 EndingCash

FCF Equity Gains* /Option

Exercise /Other

ShareRepurchase

Skype Earnout Q407 EndingCash

Q4 Share Repurchases

• Repurchased ~9 million shares at an average price of ~$33.83

Free Cash Flow / Other Movements

• Strong free cash flow driven by earnings expansion

• $128M in capital expenditures

• Proceeds from stock option exercises

• Skype earn-out… settled in Q3, paid in Q4

(in $billions)

Note: Cash balance includes cash, cash equivalents and investments*Equity Gains include changes in market value of minority stake in MercadoLibre

Cash Balance / Flows

Q4 07 Cash Flow / Capital Allocation… Share Repurchase Update

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FY 07 Summary… Great Year Financially

4,552

5,970

7,672

FY 05 FY 06 FY 07

1,7321,574

2,187

FY 05 FY 06 FY 07

0.86

1.05

1.53*

FY 05 FY 06 FY 07

Revenues EPS Free Cash Flow(in $millions) (in $millions)(in $)

39% 31% 29% 46%21%42% 26%10%59%Reported Y/Y Growth

Note: Calculation of Non-GAAP EPS, Non-GAAP Op. Margin, and FCF is included in the Appendix of this presentation*FY 07 EPS includes one-time $0.04 tax benefit

Reported Non-GAAP Op. Margin 35.5% 32.8% 33.1%

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Guidance Summary

Q108 2008

Financial Guidance

Revenues (in millions) $2,000 - 2,050 $8,500 - 8,750

Non-GAAP Operating Margin -- ~32%

Non-GAAP EPS $0.37 - 0.39 $1.63 - 1.67

Free Cash Flow (in millions) -- $2,300 - $2,400

Guidance Assumptions

Non-GAAP Tax Rate -- 22 - 23%

Capex % of Revenue -- 6.5 - 7.0%

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Summary

• Carry momentum into 2008

• Understand challenges ahead

• Focus on executing strategy

Investing to extend leadership position

Diversifying revenue streams

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Q & A

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Appendix

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Q4 07 Top Line Growth… EPS Expansion

Note: See Appendix for reconciliation of Non-GAAP Op Margin

1,720

2,181

Q406 Q407

+27%+ 3 pts acquisition+ 6 pts FX

FX +$0.02

+45%

$0.31

$0.45

$0.05

$0.04

$0.05

Q406 Top Line Growth / Mix

Productivity >Investment

Capital Allocation /Tax Rate

Q407

Non-GAAPOp Margin %

33.4% -2.6% 3.8% 34.6%

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Calculation of Organic Revenue Growth

Note: Acquisition impact includes acquisitions made within 12 months of the quarter

Mar 31, Jun 30, Sept 30, Dec 31,2005 2005 2005 2005

Total revenue growth 36% 40% 37% 42% Acquisition impact (3%) (2%) (5%) (11%) Foreign currency impact (3%) (3%) - 3%Total organic revenue growth 30% 35% 32% 34%

Mar 31, Jun 30, Sep 30, Dec 31,2006 2006 2006 2006

Total revenue growth 35% 30% 31% 29% Acquisition impact (10%) (9%) (9%) (3%) Foreign currency impact 5% - (2%) (5%)Total organic revenue growth 30% 21% 20% 21%

Mar 31, June 30, Sept 30, Dec 31,2007 2007 2007 2007

Total revenue growth 27% 30% 30% 27% Acquisition impact (1%) (3%) (3%) (3%) Foreign currency impact (5%) (4%) (4%) (6%)Total organic revenue growth 21% 23% 23% 18%

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Reconciliation of GAAP to Non-GAAP Net Income / EPS

Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, June 30, Sept 30, Dec 31,2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007

GAAP net income (loss) $ 256.3 $ 291.6 $ 255.0 $ 279.2 $ 248.3 $ 250.0 $ 280.9 $ 346.5 $ 377.2 $ 375.8 $ (935.6) $ 530.9

Stock-based compensation expense related to employee stock options and purchases 3.6 0.1 5.3 22.8 83.8 85.4 73.5 74.7 72.0 79.6 80.6 69.7 Payroll tax on stock option exercises 5.7 1.5 2.3 3.5 2.3 1.6 0.4 0.9 1.8 1.3 2.3 1.5 Amortization of acquired intangible assets (1) 22.5 25.8 29.2 51.4 51.9 62.0 51.5 49.5 51.8 56.9 57.3 57.7 Impairment of goodwill - - - - - - - - - - 1,390.9 - Gain on sale of equity investment - (2.3) - - - - - - - - - - Income taxes associated with certain non-GAAP entries (12.6) (9.5) (11.6) (16.8) (43.4) (48.3) (38.9) (41.0) (42.3) (42.5) (31.7) (48.9)

Non-GAAP net income $ 275.5 $ 307.2 $ 280.2 $ 340.1 $ 342.9 $ 350.7 $ 367.4 $ 430.5 $ 460.5 $ 471.1 $ 563.8 $ 610.9

Non-GAAP net income per diluted share $ 0.20 $ 0.22 $ 0.20 $ 0.24 $ 0.24 $ 0.24 $ 0.26 $ 0.31 $ 0.33 $ 0.34 $ 0.41 $ 0.45

Shares used in non-GAAP diluted share calculation 1,382 1,379 1,387 1,426 1,438 1,436 1,426 1,403 1,384 1,379 1,373 1,368

(1) Includes amortization of developed technology classified in cost of net revenues.

(in millions, except per share data)

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Reconciliation of GAAP to Non-GAAP Operating Margin

Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31,2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007

(in millions)

GAAP operating income (loss) $ 335.6 $ 379.0

$ 356.8

$ 370.4

$ 322.7

$ 311.4

$ 339.1

$ 449.9

$ 467.8

$ 456.8

$ (937.7)

$ 626.1

Stock-based compensation expense related to employee stock options and purchases 3.6 0.1 5.3 22.8 83.8 85.4 73.5 74.7 72.0 79.6 80.6 69.7 Payroll tax on stock option exercises 5.7 1.5 2.3 3.5 2.3 1.6 0.4 0.9 1.8 1.3 2.3 1.5 Amortization of acquired intangible assets (1) 22.5 25.8 29.2 51.4 51.9 62.0 51.5 49.5 51.8 56.9 57.3 57.7 Impairment of goodwill - - - - - - - - - - 1,390.9 -

Non-GAAP operating income $ 367.4 $ 406.4 $ 393.6 $ 448.1 $ 460.7 $ 460.4 $ 464.5 $ 575.0 $ 593.4 $ 594.6 $ 593.4 $ 755.0

Revenues $ 1,032 $ 1,086 $ 1,106 $ 1,329 $ 1,390

$ 1,411

$ 1,449

$ 1,720

$ 1,768

$ 1,834

$ 1,889

$ 2,181

GAAP operating margin 33% 35% 32% 28% 23% 22% 23% 26% 26% 25% (50%) 29%Non-GAAP operating margin 36% 37% 36% 34% 33% 33% 32% 33% 34% 32% 31% 35%

(1) Includes amortization of developed technology classified in cost of net revenues.

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Calculation of Free Cash Flow

Mar 31, Jun 30, Sept 30, Dec 31, Full Year2005 2005 2005 2005 2005

GAAP operating cash flow $ 495.4 $ 496.5 $ 491.7 $ 526.2 $ 2,009.8

Purchases of property and equipment, net (79.6) (90.5) (70.5) (97.7) (338.3) Proceeds from sale of corporate aircraft - - 28.3 - 28.3 Payment of headquarters facility lease obligation (126.4) - - - (126.4) Free cash flow $ 289.4 $ 406.0 $ 449.5 $ 428.5 $ 1,573.4

Mar 31, Jun 30, Sept 30, Dec 31, Full Year2006 2006 2006 2006 2006

GAAP operating cash flow $ 584.2 $ 515.5 $ 522.1 $ 626.0 $ 2,247.8

Purchases of property and equipment, net (133.6) (148.4) (136.9) (96.6) (515.5)

Free cash flow $ 450.6 $ 367.1 $ 385.2 $ 529.4 $ 1,732.3

Mar 31, Jun 30, Sept 30, Dec 31, Full Year2007 2007 2007 2007 2007

GAAP operating cash flow $ 564.5 $ 654.6 $ 629.5 $ 792.5 $ 2,641.1 Purchases of property and equipment, net (85.4) (121.3) (119.3) (127.9) (454.0)

Free cash flow $ 479.1 $ 533.3 $ 510.2 $ 664.6 $ 2,187.1

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Reconciliation of GAAP to Non-GAAP Quarterly Statement of Income

(in millions, except per share data) Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP

Net revenues $ 1,719.9 $ - $ 1,719.9 $ 2,180.6 $ - $ 2,180.6 Cost of net revenues 356.3 (7.9) (a) 344.3 506.0 (9.5) (a) 492.2

(4.1) (c) (4.3) (c) Gross Profit 1,363.6 12.0 1,375.6 1,674.6 13.8 1,688.4 Operating expenses: Sales and marketing 461.3 (21.6) (a) 439.7 519.1 (16.8) (a) 502.3 Product development 131.3 (18.8) (a) 112.5 169.3 (19.3) (a) 150.0 General and administrative 275.7 (26.4) (a) 248.4 306.7 (24.1) (a) 281.1

(0.9) (b) (1.5) (b) Amortization of acquired intangible assets 45.4 (45.4) (c) - 53.3 (53.3) (c) - Impairment of goodwill - - - - - - Total operating expense 913.7 (113.1) 800.6 1,048.4 (115.0) 933.4 Income from operations 449.9 125.1 575.0 626.2 128.8 755.0 Interest and other income, net 37.4 - 37.4 51.9 - 51.9 Interest expense (3.7) - (3.7) (6.6) - (6.6) Income before income taxes 483.6 125.1 608.7 671.5 128.8 800.3 Provision for income taxes (137.1) (41.0) (d) (178.1) (140.6) (48.9) (d) (189.5)

Net income $ 346.5 $ 84.1 $ 430.6 $ 530.9 $ 79.9 $ 610.8 Net income per share: Basic $ 0.25 $ 0.31 $ 0.39 $ 0.45 Diluted $ 0.25 $ 0.31 $ 0.39 $ 0.45 Weighted average shares: Basic 1,381 1,381 1,352 1,352 Diluted 1,403 1,403 1,368 1,368 Operating margin 26% 7% 33% 29% 6% 35%Effective tax rate 28% 1% 29% 21% 3% 24%____________________Notes:(a) Stock-based compensation(b) Employer payroll taxes on employee non-qualified stock option grants(c) Amortization of acquired intangible assets and developed technology(d) Income taxes associated with certain non-GAAP entries

Three Months Ended Dec 31, 2007Dec 31, 2006

Three Months Ended

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Reconciliation of GAAP to Non-GAAP Annual Statement of Income

Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP

Net revenues $ 5,969.7 $ - $ 5,969.7 $ 7,672.3 $ - $ 7,672.3 Cost of net revenues 1,256.7 (33.0) (a) 1,205.9 1,763.0 (37.0) (a) 1,706.4

(17.8) (c) (19.6) (c) Gross Profit 4,713.0 50.8 4,763.8 5,909.3 56.6 5,965.9 Operating expenses: Sales and marketing 1,619.8 (96.5) (a) 1,523.3 1,925.4 (81.3) (a) 1,844.1 Product development 494.7 (81.5) (a) 413.2 619.7 (76.0) (a) 543.7 General and administrative 978.4 (106.4) (a) 866.7 1,156.0 (107.6) (a) 1,041.6

(5.3) (b) (6.8) (b) Amortization of acquired intangible assets 197.1 (197.1) (c) - 204.1 (204.1) (c) - Impairment of goodwill - - 1,390.9 (1,390.9) (e) - Total operating expense 3,290.0 (486.8) 2,803.2 5,296.1 (1,866.7) 3,429.4 Income from operations 1,423.0 537.6 1,960.6 613.2 1,923.3 2,536.5 Interest and other income, net 130.0 - 130.0 154.3 - 154.3 Interest expense (5.9) - (5.9) (16.6) - (16.6) Income before income taxes 1,547.1 537.6 2,084.7 750.9 1,923.3 2,674.2 Provision for income taxes (421.4) (171.7) (d) (593.1) (402.6) (165.4) (d) (568.0)

Net income $ 1,125.7 $ 365.9 $ 1,491.6 $ 348.3 $ 1,757.9 $ 2,106.2 Net income per share: Basic $ 0.80 $ 1.07 $ 0.26 $ 1.55 Diluted $ 0.79 $ 1.05 $ 0.25 $ 1.53 Weighted average shares: Basic 1,399 1,399 1,359 1,359 Diluted 1,425 1,425 1,376 1,376 Operating margin 24% 9% 33% 8% 25% 33%Effective tax rate 27% 1% 28% 54% (33%) 21%____________________Notes:(a) Stock-based compensation(b) Employer payroll taxes on employee non-qualified stock option grants(c) Amortization of acquired intangible assets and developed technology(d) Income taxes associated with certain non-GAAP entries(e) Impairment of goodwill

Year EndedDecember 31, 2007December 31, 2006

Year Ended

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Reconciliation of GAAP to Non-GAAP Guidance

(in millions, except per share amounts and percentages) GAAP Non-GAAP (a) GAAP Non-GAAP (a)Revenues $2,000 - $2,050 $2,000 - $2,050 $8,500 -$8,750 $8,500 -$8,750Operating Margin - - ~24% ~32%Diluted EPS $0.28 - $0.30 $0.37 - $0.39 $1.27 - $1.31 $1.63 - $1.67Effective Tax Rate - - 21.0% - 22.0% 22.0% - 23.0%

(a) Non-GAAP guidance reflects estimated quarterly adjustments to exclude the amortization of acquired intangible assets ofapproximately $55-$60 million and stock-based compensation and payroll taxes on employee stock options of approximately$95-$110 million.

Three Months Ended March 31, 2008

Year EndedDecember 31, 2008