Tomorrow Prosper will mark its two year anniversary. 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.”

January 2008 Prosper People-to-People Lending Market Survey

Membership and Loan Volume Statistics

Estimated Annual Return on Prosper Select Index

Average Borrower Rates on Prosper Select Loans

Mix of Funded Borrowers

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