IAC Completes Acquisition of Hotwire.com

IAC/InterActiveCorp
today announced the successful completion of its
acquisition of Hotwire.com, a leading discount travel web site. This
acquisition became effective before market open today. Hotwire will
operate and remain a separate brand within the IAC Travel Group, which
consists of: Expedia, Hotels.com, Interval International, TV Travel Shop
and Anyway.com, and is headed by Erik Blachford, President and CEO of IAC
Travel.

The consideration is $665 million in cash plus the assumption of
approximately $20 million of options and warrants. IAC estimates 2003 full
year gross bookings for Hotwire of approximately $700 million and net
revenue of approximately $110 million, and expects the transaction to be
slightly accretive to 2004 adjusted EPS.
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