SAN JOSE and REDWOOD CITY, CA- January 5, 2004 -eBay Inc. (NASDAQ:EBAY) and Tumbleweed Communications Corp. (NASDAQ: TMWD), today jointly announced they had agreed to settle the patent lawsuit initially filed by Tumbleweed against PayPal and eBay on May 7, 2002 and September 5, 2002 respectively. The companies agreed to dismiss the pending lawsuit, including PayPal’s counterclaims, and have entered into a patent cross-licensing agreement, the terms of which were not disclosed.

“We are pleased to be able to put our differences behind us,” said Jeffrey C. Smith, Tumbleweed’s CEO and Chairman. “Our bigger opportunity is to work cooperatively with eBay in combating e-commerce fraud,” he added.

“With this lawsuit behind us, we look forward to working with Tumbleweed and others in the industry to develop effective email security solutions, including anti-phishing technology,” said Howard Schmidt, eBay’s Chief Information Security Officer.

About Tumbleweed Communications Corp.
Tumbleweed is a leading provider of mission-critical Internet communications software products for enterprises, financial services organizations and government. By making Internet communications secure, reliable and automated, Tumbleweed's email firewall, secure file transfer, secure email, and identity validation solutions help customers significantly reduce the cost of doing business. Tumbleweed products are used by millions of end-users and tens of thousands of corporations. Tumbleweed customers include ABN Amro, Bank of America Securities, Catholic Healthcare West, JP Morgan Chase & Co., The Regence Group (Blue Cross/Blue Shield), Society for Worldwide Interbank Financial Telecommunication (SWIFT), St. Luke's Episcopal Healthcare System, the US Food and Drug Administration, and the US Navy and Marine Corps. Tumbleweed Communications was founded in 1993 and is headquartered in Redwood City, Calif. For additional information about Tumbleweed go to www.tumbleweed.com or call 650-216-2000.

Safe Harbor Statement
Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected, particularly with respect to the patent portfolios, and the enforcement thereof, belonging to eBay Inc. and Tumbleweed Communications Corp. and the future anti-fraud and security initiatives of eBay Inc. and Tumbleweed Communications Corp. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. For further cautions about the risks of investing in Tumbleweed, we refer you to the documents Tumbleweed files from time to time with the Securities and Exchange Commission, particularly Tumbleweed's Form 10-K filed June 4, 2003, Form 10-Q filed November 14, 2003, and Form S-3/A filed December 19, 2003. More information about factors that could affect eBay Inc.’s operating results is included in the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s investor relations site at http://investor.ebay.com.

Neither Tumbleweed nor eBay assumes any obligation to update information contained in this press release, including for example its guidance regarding future performance, which represents the each company's respective expectations only as of the date of this release and should not be viewed as a statement about such company's expectations after such date. Although this release may remain available on either company's website or elsewhere, its continued availability does not indicate that either company is reaffirming or confirming any of the information contained herein.

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