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IAC/InterActiveCorp Enters China Through an Investment in eLong

Sunday, July 25, 2004 - 22:00

IAC/InterActiveCorp (NASDAQ: IACI) today announced its entry into the travel market in China through its agreement to invest $60 million for a 30% interest in eLong, Inc., a privately held online travel provider based in Beijing that operates the websites and As part of the transaction, IAC also acquired warrants, which if exercised will increase IAC's ownership of eLong to 51%. IAC's investment in eLong will be managed by IAC Travel, which operates the other travel assets of IAC, including Expedia,, Hotwire and Expedia's private-label business WWTE.

The company also announced the creation of IAC Travel - Asia Pacific, and the promotion of Barney Harford to the role of president, IAC Travel - Asia Pacific. Previously Mr. Harford was senior vice president of air, car and private label for Expedia, Inc. and prior to that was responsible for strategic planning for the company.

Said Erik Blachford, president and CEO of IAC Travel, "The Asia-Pacific region is an area of enormous growth potential -- China alone represents an $87 billion travel and tourism market opportunity today, forecast to grow to more than $300 billion by 2014(*). We think that the combination of eLong's extensive knowledge of the travel market in China, our own travel industry expertise and Barney Harford's proven success with building valuable businesses within IAC Travel will result in robust growth for IAC Travel in China."

eLong offers its customers the ability to make reservations at discounted rates at more than 2,000 hotels across China, both online and through its telephone call center. eLong also offers airline ticketing and other travel- related services. Since its inception in 1999, the Company has built one of the largest travel service distribution networks in China, playing an important role as an aggregator of hotel booking options for Chinese consumers and as an efficient marketing channel for hotels.

"eLong is delighted to welcome IAC Travel as its strategic partner," said Justin Tang, CEO, Chairman and Founder of eLong. "We have built one of the largest travel service distribution networks in China and we look forward to accelerating our growth through our relationship with IAC Travel."

"China is the most exciting and dynamic travel market in the world," said Barney Harford, President, IAC Travel - Asia Pacific. "We know that success in entering the Chinese travel market is heavily dependent on having the right local partner. Given the early success of eLong and its extraordinary management team led by Justin Tang, we're confident that together, eLong and IAC Travel - Asia Pacific have the opportunity to play a pivotal role in the transformation of the Chinese travel industry."

eLong will continue to operate independently and will retain its current management structure and employee base. IAC Travel will work closely with eLong to help increase the company's position in the market, expand its customer and supplier relationships and build a strong business for domestic travel and eventually for outbound travel from the region.

  IAC was advised by HSBC in connection with this transaction.

  About eLong

Co-founded in 1999 by Justin Tang, eLong is one of China's leading independent travel service companies. Headquartered in Beijing, the company has a national presence across China. The company provides consumers with access to hotel reservations at discounted rates at more than 2,000 hotels in major cities across China. The company also provides airline ticketing services.

  eLong operates the websites and

  About IAC/InterActiveCorp

IAC/InterActiveCorp (NASDAQ: IACI) is the world's leading multi-brand interactive commerce company. IAC consists of IAC Travel, which includes Expedia, Inc.,, Hotwire, Interval International, and TV Travel Shop; HSN; Ticketmaster, which oversees ReserveAmerica;; LendingTree; Precision Response Corporation; IAC Local and Media Services, which includes Citysearch, Evite, Entertainment Publications, Inc. and TripAdvisor, Inc.; and IAC Interactive Development which includes ZeroDegrees.

*Source: Personal Travel, Tourism and Business Travel estimates, 2004 Travel & Tourism Economic Research Report, World Travel & Tourism Council (WTTC)

Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to IAC's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity, actions and initiatives by current and potential competitors, the effect of current and future legislation or regulation, the ability to expand our reach into international markets, and certain other additional factors described in IAC's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on IAC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

   IAC Corporate Communications
   Deborah Roth or Andrea Riggs
   (212) 314-7251

   David Dennis
  (425) 679-7430

   IAC Investor Relations
   Roger Clark or Lauren Porat
   (212) 314-7400

  (Photo: )

Photo: NewsCom:
AP Archive:
PRN Photo Desk,

SOURCE: IAC/InterActiveCorp

CONTACT: Corporate Communications, Deborah Roth, or Andrea Riggs,
+1-212-314-7251, or David Dennis, +1-425-679-7430, or Investor Relations,
Roger Clark or Lauren Porat, +1-212-314-7400, all of IAC

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