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November 2005

RadioShack Brings Skype-Ready Products to Customers Nationwide

November 21, 2005

FORT WORTH, TEXAS, and LUXEMBOURG - Nov. 21, 2005 – RadioShack Corporation (NYSE: RSH) and Skype, the Global Internet Communications Company, today announced an agreement to distribute Skype-certified hardware and software in approximately 3,500 RadioShack stores. This makes RadioShack the first U.S. retailer to offer this new Internet phone service.


According to Skype officials, Skype has successfully brought free Internet calling to over 66 million people around the world since its launch in 2003, with an average of 175,000 new people joining each day. People with Internet connectivity can load Skype’s free software enabling unlimited, high-quality voice calls to other Skype users anywhere in the world. Unlike other Internet phone services, Skype’s unique software resides directly on a computer or mobile device to facilitate communications. Skype runs on Windows, Linux, Mac OS X, and Pocket PC platforms. Skype also offers premium services providing enhanced functionality for its users to make calls to regular phones for as little as two cents a minute.


This agreement with RadioShack supports Skype’s growing presence in the U.S. market as a leading Internet communications company. RadioShack’s convenient network of neighborhood stores staffed by knowledgeable sales associates will help expose Skype’s unique worldwide free call service to a broad new audience of potential customers. Further, these retail stores will provide consumers with a place to shop for new Skype-certified products such as the Motorola Wireless Headset and Internet Calling Kit – the world’s first Skype-certified Bluetooth offering.


Skype-certified phones and headsets at RadioShack include:



  • New Motorola H500 Bluetooth headset and PC850 USB Adapter bundled in the Internet Calling Kit – a RadioShack limited exclusive with a suggested price of $99.99

  • Linksys CIT200 Skype-enabled Cordless Internet Telephony Kit with a suggested price of $129.99 (with a limited time $15 mail-in rebate)

  • Logitech Premium USB Headset 250 with a suggested price of $39.99

  • VoIP Voice Cyberphone K USB Internet phone with a suggested price of $39.99

  • Skype Starter Packs: the Skype Starter Pack, priced at $4.99 until Dec. 24, 2005, allows anyone to get started with free Skype software, a Skype-enabled headset and 30 SkypeOut minutes to call any number anywhere in the world


“RadioShack is known for helping make the market for new technologies, and by all indicators Skype is poised to resonate with U.S. customers after experiencing huge success overseas,” said Jim Hamilton, RadioShack’s senior vice president and chief merchandising officer. “Customers should love how they can cut their phone bill without cutting their phone line, making unlimited free calls to other Skype users around the world.”


“Skype is looking at innovative retail channels for distribution, and with 94 percent of the U.S. population living or working within five minutes of a RadioShack, we see them as an ideal partner through which to offer consumers access to Skype accessories,” said Saul Klein, Skype’s vice president of marketing.


About Skype


Skype allows people everywhere to make free, unlimited, voice calls, chat and share files. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Skype has been downloaded more than 200 million times in 225 countries and territories. 66 million people are registered to use Skype's free services, with over 175,000 new registered users each day, and more than 4 million people using Skype simultaneously at any one time. Skype earns revenue through its premium service offerings, and has a growing network of global affiliates, and a community of developers working with the Skype APIs. Skype Technologies SA is headquartered in Luxembourg, with offices in London and Estonia, and in 15 other countries with users in every nation. Skype is an eBay company (NASDAQ: EBAY). To learn more visit www.skype.com.

Skype is not a telephony replacement service and cannot be used for emergency calling.


About RadioShack


Fort Worth, Texas-based RadioShack Corporation (NYSE: RSH) is one the nation’s most trusted consumer electronics specialty retailers and a growing provider of business-to-business retail support services. The company operates a vast network of sales channels, including: nearly 7,000 company-owned and dealer stores; over 100 RadioShack locations in Mexico; and more than 700 wireless kiosks. RadioShack’s knowledgeable and helpful sales associates deliver convenient product and service solutions within five minutes of where 94 percent of all Americans either live or work. For more information on RadioShack Corporation, visit www.RadioShackCorporation.com. To learn more about RadioShack products and services or to purchase items online, visit www.RadioShack.com




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Motorola and Skype Bring Mobility to Internet Voice Communications with Bluetooth® Wireless Technology

SCHAUMBURG, Ill. and LUXEMBOURG – November 21, 2005 – Motorola, Inc. (NYSE: MOT), a global leader in wireless communications, and Skype, a global Internet communications company, today announced America’s first Skype-certified Bluetooth headset solution, the Motorola Wireless Internet Calling Kit. Available at 3,500 RadioShack stores nationwide, the Motorola Wireless Internet Calling Kit enables Skype users to experience the freedom of wireless while making free, unlimited voice calls over the Internet*.


Comprised of a Motorola H500 Bluetooth Headset and PC850 PC Adapter, the Motorola Wireless Internet Calling Kit also include 30 free SkypeOut minutes so users can make Skype calls to mobile and landline phones without additional charges. To experience wireless communications, users plug in the Motorola PC850 PC Adapter to equip traditional laptops and PCs with Bluetooth technology, load the required software onto the PC and follow a simple, step-by-step procedure to establish the cordless connection between the PC** and Motorola H500 headset.


The Motorola Wireless Internet Calling Kit is the latest offering from Motorola and Skype. Leveraging Motorola’s strength in seamless mobility, advanced technologies, devices and accessories along with Skype’s rapidly-growing global user base and rich voice and messaging communication tools, the companies aim to provide greater connectivity options and access for Skype’s more than 66 million registered worldwide users.


“Motorola and Skype are combining the power of Internet telephony with Bluetooth technology, redefining the ways that consumers can stay in touch,” said Bruce Hawver, vice president and general manager, Motorola, Inc., Companion Products. “Multi-taskers will be impressed with the streamlined communications, using the Motorola H500 Bluetooth Headset for either wire-free mobile or Internet-based calls.”


“By working with Motorola, we’re delivering products that make Skype more accessible to consumers and businesses,” said Niklas Zennström, Skype CEO and co-founder. “The Motorola Wireless Internet Calling Kit is the first Skype-recommended Bluetooth solution in America, reinforcing our mission to evolve the Skype solution beyond the desktop for on-the-go communications.”


With up to approximately six hours of talk time and a lightweight, ergonomic fit, the Motorola H500 empowers Skype users to embrace wireless connectivity for Internet calls — up to 30 feet away from a Bluetooth-enabled PC. Skype users can also have calls automatically forwarded to their mobile phones when away from the PC and use the Motorola H500 to wirelessly conduct cord-free conversations on a compatible Bluetooth-enabled mobile phone.


Pricing and Availability


The Skype Motorola Kit is available today at RadioShack and at the online Skype store, www.skype.com, for $99.99. For additional details on availability or pricing, please contact your local representative.


About Motorola


Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace, and all spaces in between, seamless mobility means you can reach the people, things and information you need, on-the-go. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication.  Motorola had sales of US $31.3 billion in 2004.  For more information: www.motorola.com.


About Skype


Skype allows people everywhere to make free, unlimited, voice calls, chat and share files. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Skype has been downloaded more than 200 million times in 225 countries and territories. 66 million people are registered to use Skype's free services, with over 175 thousand new registered users each day, and more than 4 million people using Skype simultaneously at any one time. Skype earns revenue through its premium service offerings, and has a growing network of global affiliates, and a community of developers working with the Skype APIs. Skype Technologies SA is headquartered in Luxembourg, with offices in London and Estonia, and in 15 other countries with users in every nation. Skype is an eBay company (NASDAQ: EBAY). To learn more visit www.skype.com.


Skype is not a telephony replacement service and cannot be used for emergency calling




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eBay Completes Acquisition of Skype

November 14, 2005

San Jose, Calif., October 14, 2005 – eBay (Nasdaq: EBAY; www.ebay.com) today completed its previously announced acquisition of Skype, the global Internet communications company.

In accordance with the terms of the acquisition agreement as announced on September 12, 2005, eBay acquired all of the outstanding shares of privately-held Skype for a total up-front consideration of approximately €2.1 billion, or approximately $2.5 billion, plus potential performance-based consideration. The up-front consideration is comprised of approximately $1.3 billion in cash and the value of 32.8 million shares of eBay stock, which are subject to certain restrictions on resale.


The maximum amount potentially payable under the performance-based earn-out is approximately €1.2 billion, or approximately $1.4 billion, and would be payable in cash or eBay stock, at eBay’s discretion, with expected payment to occur in 2008 and/or 2009. Skype shareholders were offered the choice between several consideration options for their shares. Shareholders representing approximately 42% of the Skype shares ultimately chose to receive a single payment in cash and eBay stock at the close of the transaction. Shareholders representing the remaining approximate 58% of the Skype shares chose to receive a reduced up-front payment in cash and eBay stock at the close plus potential future earn-out payments which are based on performance-based goals for active users, gross profit and revenue.


The above-mentioned dollar amounts are approximate, based on an October 12, 2005 exchange rate of €1 to $1.20.


As previously indicated, eBay expects the acquisition to be dilutive to its Q4-05 pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006.


Pro forma earnings per share represents GAAP earnings per share adjusted to exclude certain items, primarily stock based compensation expense, amortization of acquired intangibles and income taxes related to these items.


About eBay Inc.


Founded in 1995, eBay pioneers communities built on commerce, sustained by trust, and inspired by opportunity. eBay enables ecommerce on a local, national and international basis with an array of websites – including the eBay Marketplace, PayPal, Kijiji, Rent.com and Shopping.com – that bring together millions of buyers and sellers every day.


About Skype Technologies SA


Skype, the Global Internet Communications Company™, allows people everywhere to make free, unlimited, superior quality voice calls via its award-winning innovative peer-to-peer software for Windows, Linux, Mac OS X, and Pocket PC platforms. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Since its launch in August 2003, Skype has been downloaded more than 182 million times in 225 countries and territories. 59 million people are registered to use Skype's free services, with more than 3 million people using Skype simultaneously at any one time. Skype earns revenue through its premium service offerings, and has a growing network of global affiliates, and a community of developers working with the Skype APIs. Skype Technologies SA is headquartered in Luxembourg and has offices in London and Estonia. www.skype.com


Forward-Looking Statements


This announcement contains forward-looking statements regarding Skype and the expected impact of the acquisition of Skype on eBay’s financial results. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the reaction of the users of Skype’s services, the future growth of Skype’s user base and public acceptance of Internet voice communication services, rapid technological changes in the Internet voice communications sector, the reaction of competitors to the transaction, global developments in the regulation of Internet voice communication services including those provided by Skype, the possibility that integration of Skype’s offerings following the transaction may be more difficult than expected, and the possibility that entry by Skype and eBay into potential new lines of business will not be successful. More information about potential factors which could affect eBay’s business and financial results is included in eBay’s Annual Report on Form 10-K for the year ended December 31, 2004, the company’s Quarterly Reports on Form 10-Q, and current reports on Form 8-K. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.

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