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Prosper Turns Two with 580,000 Members and Over $117 Million in Funded Loans

San Francisco – February 12, 2008 – Prosper (www.prosper.com), America's largest people-to-people lending marketplace, announced that tomorrow will mark its two year anniversary. Prosper also announced the results of its January 2008 People-to-People Lending Market Survey.

Since launching on February 13, 2006, Prosper's funded loan volume has grown to over $117 million, up approximately $81 million or 225% from its first year. Prosper's national membership now consists of over 580,000 individuals, up approximately 405,000 or 230% over the same period.

"We're looking forward to formally celebrating our two year anniversary and the community who pioneered people-to-people lending in America – Prosper lenders and borrowers – at our second annual Prosper Days conference," said Chris Larsen, co-founder and Chief Executive Officer of Prosper. "Together with Prosper community members and social lending experts, we will assess our first two years and provide a glimpse of what's in store for the future."

Prosper's People-to-People Lending Market Survey results are released the second Tuesday of every month. To register to automatically receive the survey, send an email with "SUBSCRIBE" in the subject line to: p2plendingmarketsurvey@prosper.com.

January 2008 Prosper People-to-People Lending Market Survey

Membership and Loan Volume Statistics

	January 2008	January 2007	Since Inception
New Members	37,121	19,675	575,249
Funded Loans	$7.2 million	$6.3 million	$116.2 million
Average Loan Size	$6,848	$6,152	$6,304
Daily Average Number of Borrower Listings	2,413	1,575	1,595

Estimated Annual Return on Prosper Select Index

	January 2008
Prosper Select Index	8.19%
Prime Select Index	8.75%
Near Prime Select Index	7.90%
Sub Prime Select Index	4.93%

Average Borrower Rates on Prosper Select Loans

	January 2008	December 2007	January 2007	Since Inception
Prime Select Loans	9.91%	9.80%	8.86%	10.06%
Near Prime Select Loans	16.80%	16.07%	14.60%	16.18%
Sub Prime Select Loans	28.39%	32.99%	21.46%	24.07%

Mix of Funded Borrowers

	January 2008	January 2007	Since Inception
Prime	40%	23%	31%
Near Prime	55%	53%	55%
Sub Prime	5%	24%	14%

Definitions

Since Inception: November 1, 2005 through January 31, 2008. Prosper's by invitation only "friends and family" launch began on November 1, 2005 and Prosper launched to the general public on February 13, 2006.

Prosper Select Index: The Prosper Select Index return is the estimated average annual return on invested principal, based on actual delinquency performance to date. The Prosper Select Index includes AA - E credit grade loans for borrowers whose credit reports at the time of application indicated zero current delinquencies, three or fewer credit inquiries, and a debt-to-income ratio of 40 percent or less. The annual return period reflects loans originated in the twelve month period ending one month prior to the observation date of January 31, 2008. Prime Select includes AA and A credit grade loans (credit scores of 720+). Near Prime Select includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime Select includes E credit grade loans (credit scores between 560 and 599).

Average Borrower Rates: Average Borrower Rates are the weighted average borrower rates on Prosper Select Index loans with loan amounts between $5,000 and $10,000. Rates shown are interest rates, not annual percentage rates.

Mix of Funded Borrowers: Prime includes AA and A credit grade loans (credit scores of 720+). Near Prime includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime includes E and HR credit grade loans (credit scores below 600).

About Prosper

Prosper (http://www.prosper.com), America's largest people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone. Prosper's membership consists of over 550,000 people from across the country. . Since launching in February 2006, over $115 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 borrow on Prosper create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. People who register as Prosper lenders 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, Prosper lenders can consider borrowers' personal stories, endorsements from friends, and group affiliations. 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, DAG Ventures, Fidelity Ventures, Meritech Capital, and Omidyar Network, Prosper has raised approximately $40 million. Prosper's marketplace platform is patent pending.

Press Contact:
Tiffany Fox
Prosper Communications Director
(415) 593-5416
tiffany@prosper.com

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