Prosper Marks One Year Anniversary With Over 175,000 Members and $36 Million in Loans

Marketplace Enhancements, Pricing and Credit Grade Adjustments Unveiled at Prosper Days

San Francisco – February 12, 2007 – Prosper (www.prosper.com), America's first people-to-people lending marketplace, celebrated its one year anniversary with over 300 Prosper community members from across the country at its sold out Prosper Days conference in San Francisco.

Since Prosper launched to the public one year ago today, its national membership base has grown to over 175,000 individuals and more than $36 million in loans have been funded in its marketplace.

"Prosper's first year exceeded our expectations in just about every way," said Chris Larsen, Chief Executive Officer and Co-Founder of Prosper. "The most exciting part of our rapid growth has really been about the active and loyal community that has organically sprung up on Prosper. Since day one, our members have engaged, driven and challenged us as a company. It's the vibrancy of our community that motivates us today and will make Prosper thrive for years to come."

Prosper kicked off the Prosper Days conference and its second year with the unveiling of some major enhancements to the marketplace including:

• 100% Identity Theft Guarantee: Prosper's stringent fraud prevention techniques - consistent with those used by the financial services and credit industry - are now backed by a 100% identity theft guarantee. If a lender is a victim of a defaulted loan due to identity theft, Prosper will repurchase the loan for the full remaining principal amount.
• Friend and Endorsement Networking: A new easy way to connect with others and create a network of friends - within or outside of a Prosper group - who can help a loan request get funded.
• ROI Tool: This new tool utilizes the performance of loans funded to date to help lenders evaluate risk / return scenarios and create their own personalized bidding strategies.
• Expanded Credit and Employment Data: Now lenders have six additional credit data fields and four new self-reported employment status fields to review. This new data will help lenders further evaluate borrowers' loan requests.
• Listing Question and Answer Feature: Now lenders have an easier way to contact borrowers with questions about their listings and borrowers can opt to post the dialogue so that it can be viewed by all lenders.

Prosper also announced credit grade, fee and group leader reward adjustments:

• Credit Grade Adjustments: Due to the significant costs associated with handling listings in the lowest credit grades, borrowers with an Experian Scorex PLUS(SM) credit score below 520 and borrowers with an NC (no credit) rating will no longer be able to borrow on Prosper. Additionally, the underlying Experian Scorex PLUS credit score range for E and remaining HR (high risk) borrowers will change slightly to be consistent with the spread for other credit grades. There will be no credit grade changes for borrowers with an AA, A, B, C or D credit grade.
• Fee Adjustments: To better align Prosper's fees with the costs associated with creating and servicing loans from lower credit grade borrowers, we have increased some of our fees. Now the closing fee for E and HR borrowers is 2% (up from 1%) and the servicing fee for lenders on loans made to B, C, D, E and HR credit grade borrowers is 1% (up from 0.5%). Closing and servicing fees on AA and A credit grade loans remain 1% and 0.05%, respectively.
• Group Leader Award Adjustments: In recognition of the efforts put forth to grow and manage their groups, match rewards group leaders earn for bringing new borrowers to Prosper have changed from a flat $10 or $20 to 0.5% of a funded AA, A, B, C or D new borrower loan. Match rewards for loans made to E or HR borrowers have been eliminated.

About Prosper

Prosper (http://www.prosper.com), America's first people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone. Prosper's membership consists of over 175,000 people from across the country. Since launching in February 2006, over $36 million in loans have been funded in the marketplace.

The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper's online auction platform. People who want to lend on Prosper set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. In addition to criteria commonly used by institutional lenders, such as credit scores and histories, people who lend can consider borrowers' personal stories and group affiliations. Groups on Prosper are critical to bringing people together for the common goal of borrowing at better rates. People who want to borrow on Prosper create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan to the borrower. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrowers and lenders.

Prosper was co-founded by Chris Larsen, co-founder of E-LOAN, and John Witchel, technology entrepreneur. Backed by Accel Partners, Benchmark Capital, Fidelity Ventures, and Omidyar Network, Prosper has raised approximately $20 million. Prosper's marketplace platform is patent pending.