NEW YORK AND SAN JOSE, CALIFORNIA.- Sotheby’s and eBay today announced that separate online auctions on Sothebys.com will be discontinued in early May. The companies will place their emphasis on promoting Sotheby’s live auctions through eBay’s Live AuctionsTM technology and continuing to build eBay’s highly successful arts and antiques categories. The Sothebys.com website will continue, but focus on supporting Sotheby’s live auction business.

“As our online auctions offered by our Dealer Associates and Sotheby’s have not generated a profit for Sotheby’s, we are discontinuing separate online auctions,” said Bill Ruprecht, President and Chief Executive Officer of Sotheby’s Holdings, Inc. “This action will regrettably lead to redundancies and a one-time restructuring charge in the first quarter of 2003 in the range of $2-3 million, but we anticipate that taking this step will enhance our profitability in 2003.”

“The power of the online medium remains extraordinary and we are delighted that our relationship with eBay, the world’s largest online marketplace, with over 40 million users, will continue,” said Mr. Ruprecht. “eBay’s Live Auctions technology is of growing interest to Sotheby’s existing clients because it allows them to follow Sotheby’s traditional auctions via the Internet and place bids online, in real time. We anticipate increased interest as clients become more familiar with its availability and ease of use.”

“The art, antiques and collectibles categories on eBay generated more than $1 billion in sales last year,” said Geoff Iddison, Vice President and General Manager of eBay Collectibles. “We are delighted that many of Sotheby’s dealer associates have contributed to this growing marketplace and we look forward to starting this new chapter in our relationship with Sotheby’s.”