Sold.com.au Ownership Structure

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Fairfax Interactive Businesses ...Introducing a
New Business... Analyst and Press Briefing 29
June 1999
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Fairfax Interactive Businesses
E-Business Development

• National internet
• telephone
• directories
• 20 cities
• regions across
• Australia
• National salesforce
• selling other
• interactive products.

• New
• Opportunities
• Broadband
• Applications
• - cable
• - datacasting

Online leisure and lifestyle supersites - 4,500
merchants and small businesses.
and others gt150,000 site visits per day
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Australias most exciting 24-hour Internet
auction site...
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Ownership and Financial Structure
Board 5 Fairfax (incl Chairman) 1 Auction
Universe CEO
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Why invest in online auctions?

• Successful and profitable business model in USA
• Integral part of overall FIB strategy -
• Leveraging existing strong assets
• Expansion opportunities
• transaction engine leveragable across all sites
• NZ and SEA licenses
• category and market expansion

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Fairfax Advantages

• Strong online traffic and membership base
• Strong online classifieds
• Trader print classifieds position
• Related editorial content
• Trusted brand and reputation
• Citysearch small-business Internet relationships

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Auction Universe Advantages

• Strong backing from Classified Ventures LLC
• International and partnering experience
• Leading technology
• Tactical marketing experience in competitive
  environment

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How the business works 1

• Selling Items
• Register and Open an Account
• List items for auction - up to 2 weeks
• - text, photo, URL link
• 1 basic listing fee

Individual Sellers
Individual Buyers

• Types of Auctions
• straight high bid wins
• reserve price
• dutch (multiple quantities)
• fixed price - FirstBidWinsTM

Merchants/ Dealers
Merchant ManagerTM Software
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Wide range of categories

• Sporting Goods Recreation
• Home, Garden Pet Supplies
• Fashion Lifestyle
• Travel, Accommodation Entertainment
• Wine Food
• Cars, Boats, etc.
• Business Goods Services
• Everything Else

• Fine Arts, Antiques, Arts Crafts
• Books, Movies Music
• Collectibles and Memorabilia
• Olympics Sports Collectibles
• Dolls, Toys, Models, etc
• Stamps, Coins Currency
• Computer Hardware, Software
• Electronics Photographic

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How the business works 2
Individual Sellers

• Auction Listings
• Categorise allow Search
• for items and auctions

Individual Buyers

• Bidding
• Make Bids on items
• RobobidTM- automated
• bidding up to limit
• Notification if outbid

• Additional Services
• Allow ratings and commentary
• on by buyers and sellers
• Collector Community Hubs
• Online Valuation Services

Merchants/ Dealers
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How the business works 3

• Standard Settlement - 3.5 commission
• Notify Seller and high-bidder by email
• Arrange payment and shipping between themselves
• Provide customer service support

Individual Sellers
Individual Buyers

• SOLDafeTM Settlement - 3.5commission plus
  credit card fees
• Buyers and Sellers register
• SOLD.com.au takes payment holds until item
  successfully arrives
• Protects both parties
• Provides insurance coverage to seller

Merchants/ Dealers
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Online Auctions - Revenue DriversTypical USA
experience
100 customers
Network or snowball effect
15 seller ratio
15 sellers
30-40 items per quarter
525 auctions listed
30 completion
160 auctions closed
High visit High pages/visit sites
70 avg sale value
11,200 gross sales
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Our Operating Approach

• Site hosted in USA currently
• 24/7 email customer service from USA
• A transactions A credit card clearing
• Integration with other FIB businesses

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Launch Timetable and Actions

• Site Launch Tuesday 29 June
• Bidding Launch Thursday 15 July
• Marketing Campaign ongoing
• Merchant relationships rolling out
• Unique promotional and partnership deals

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