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| PayPal, Inc. is pleased to announce that we are preparing to open# U" r- [$ j5 r2 i' i; Y a new regional headquarters, PayPal Private Limited, a PayPal
 ) X" E+ ]! _+ F" M! n  w3 K  H3 D3 S3 Tgroup company incorporated in Singapore. These headquarters will! L: ]  H) ~: e2 g8 q: b5 k
 be the service provider for PayPal customers outside the United; \& z  k2 r" R% B+ p/ @/ t
 States and the European Union. Going forward, this development
 m+ F1 E% V8 u4 U9 S6 g* Vwill help us improve services for our customers worldwide./ k; s5 e6 C5 S/ c9 Y$ p
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 Please note that no action will be necessary on your part. You
 ! |/ H% ^7 s: u! T* mwill be able to continue using your PayPal account as you do today.6 b2 s; {1 ?# q3 t$ B
 8 I* r( d3 f: K# K; o( H9 }- u" ~
 Your Existing Customer Relationship with PayPal
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 , }- e  t; \) x1 Q7 l, k8 G+ aUntil August 1, 2006, your customer relationship will continue to9 Q% d4 T: B+ N. U; t+ N- n; T
 be with PayPal, Inc. (a U.S. company) under the PayPal User7 U) h' x& e) s% X' x3 X5 q: k
 Agreement, which is governed by California law.
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 A New Customer Relationship with PayPal
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 ; _" b) _5 |6 R* x: x1 e7 hWith the opening of our new regional headquarters, your customer0 X  N% c3 K6 I' o4 S. q' ?! D7 u
 relationship will automatically be transferred to PayPal Private8 x' R! E% O* O, m# L3 D* f4 v
 Limited. We anticipate that this will occur on August 1, 2006. At1 }% s' a, a* i( v3 A  M( i
 that time, we will introduce minor changes to the User Agreement
 # `8 A9 |, V$ t+ zand its incorporated policies, and to the Privacy Policy. The new
 7 m5 Q! v  I9 h' `User Agreement will be similar to the current Agreement, and will
 4 C, `; _* d! e# ?contain no adverse amendments from a customer's perspective. It) j# _; R0 E2 o4 n: m
 will also no longer contain U.S.-specific references, and it will* |( ^; a  c& K4 g: n7 c* C5 w
 be modified to comply with Singaporean payment services1 U: C* T% b! X6 N
 requirements.! @) K5 ?" ^9 K3 M) b
 
 4 X4 T' B# ~# r0 ^, X0 j" QIf you do not wish to hold a PayPal Private Limited account and# x  l, v9 N  r  j% d& a% p
 would prefer to retain your relationship with PayPal, Inc., you2 f* X! \% S! p3 ~# k0 S, z
 may only do so if you are a resident of the United States, and if
 9 S% w2 j1 a& n9 U4 w6 V9 f' \the primary address on your PayPal account as of August 1, 2006 is
 ) |, a! G% s+ X$ Ea legitimate postal address within the United States.+ ~' ?7 D0 _; s: w$ t
 
 6 i# r% Z2 a- }If your primary address is not in the United States, you may close; [: Q* t  V" p: W! H8 G$ ~9 ^
 your account at any time, either before or after the transition to
 ; [+ u- }- c# _6 dPayPal Private Limited, by logging in to your PayPal account and4 o9 F1 \. S, x7 w
 clicking Profile. We value your business and hope you'll transfer0 _  W( P1 L7 v/ t/ M0 U
 with us to PayPal Private Limited, where you'll be able to use" n  t5 V) g8 L
 PayPal in the same way you do today.8 \" R3 Z' h+ n$ m1 S5 I! G: r5 g
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 Once the transition from PayPal, Inc. to PayPal Private Limited
 ( W4 t9 r! e- n- `- e  Ioccurs, we will post updated versions of our User Agreement and
 * N- E7 C* w6 Q1 P  d$ X- B! k$ g8 oits incorporated policies, as well as our Privacy Policy, to5 S# q* D& n6 d; p5 ^+ u% r& g9 I; }+ O
 our website.
 ; C! O; A" q; x) Q7 S+ L2 m' s2 t' K! c! |! u* a. o4 p
 If you have any questions prior to August 1, 2006 about these
 - M( M; n! R+ D7 u' h8 y. bupcoming changes, please contact Customer Support. You can get
 : [, g$ Z3 n+ q# b1 [contact information by logging in to your PayPal account and) j# o+ F% R, U- r
 clicking Contact Us at the bottom of your Account Overview page.
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 Yours sincerely,
 . W' @* Y! J( Y, e7 s8 p; I% K. R5 K4 ?
 PayPal, Inc.
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