Prosper Membership Surpasses 300,000 and Funded Loans Exceed $65 million

San Francisco – June 4, 2007 – Prosper (www.prosper.com), America's first people-to-people lending marketplace, today announced that over the course of the last three months its membership has increased by 50 percent and funded loans have increased by over 60 percent. Prosper's membership base now consists of more than 300,000 individuals with over $65 million in loans funded on the marketplace.

"Our rapid growth demonstrates that people are excited by the unique opportunity the Prosper marketplace provides – a financially and socially rewarding way to put money to work in an attractive new asset class and borrow at lower rates," said Chris Larsen, Co-founder and Chief Executive Officer of Prosper. "The key driver of our growth continues to be Prosper's active community. Our members are highly engaged in every aspect of the marketplace – from spreading the word about Prosper at the grass roots level to developing invaluable applications and tools for borrowers and lenders. It is truly the Prosper community that is leading the nascent person-to-person lending movement."

To become a Prosper member, visit www.prosper.com. To join over 10,000 participants in Prosper's lively discussion forums, go to: https://connect.prosper.com/. To explore some of the third-party websites and applications dedicated to Prosper, visit: www.prosper.com/tools/3rdParty.aspx.

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 300,000 people from across the country. Since launching in February 2006, over $65 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 register as Prosper lenders 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 Prosper lenders 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.