USA Interactive Terminates Expedia Acquisition Process

The Special Committee of the Board of Directors of Expedia, Inc. announced that it appreciates the statement made today by USA Interactive

that it is terminating the process by which it sought to acquire the shares of Expedia

that it does not already own.

Caption: Barry Diller,
Chairman and CEO - USA Interactive

“We believe USA Interactive`s decision to terminate the acquisition process will clear up the uncertainty regarding the proposed exchange offer,” said Special Committee Chairman Greg Maffei. “We think this is positive for Expedia and its shareholders.”
“We also believe that the process by which we evaluated the proposal, reviewed Expedia`s options and responded to USA was a positive one,” Mr. Maffei continued. “The Special Committee continues to believe that Expedia`s stand-alone prospects are excellent. Expedia`s executives and employees have built a dynamic, growing and profitable company, and we expect them to continue building on their track record of success. We remain highly confident in the future for Expedia as a stand-alone company.”


Barry Diller, Chairman and Chief Executive Officer of USA Interactive, said, “When we began the process four months ago, we had said our goal was to simplify our capital structure and consolidate our business operations…bringing Ticketmaster, and Citysearch fully into USA is a productive step in that direction. While we would have liked to reach the same result with Expedia and, and have had collegial and positive discussions with each of their Special Committees, we are convinced no transaction will be consummated at this time. We remain committed to the principle of simplification, but we believe it’s in everyone’s best interest to end the formal process and get on with operating the businesses without distraction. No one, however, should mistake our actions as any lessening of enthusiasm in Travel as a key part of our future - notwithstanding today’s unstable international climate - our faith in the growth of interactive travel services over the long term is complete.”

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