USA Networks to Purchase Controlling Stake in Expedia

Posted on July 18, 2001

USA Networks, Inc. has announced an agreement to acquire a controlling interest in Expedia, Inc., an online travel website. USA also announced an agreement to acquire National Leisure Group, Inc., an online cruise and vacation package agency. In addition, USA said it would launch the USA Travel Channel, a new cable television program service. These acquisitions, in addition to USA's interest in the Hotel Reservations Network, will form the USA Travel Group portfolio of companies.

``For some time we have believed travel to be a key building block in offering goods and services in interactive formats. These announcements make that belief a reality: Expedia and its superb management, led by Richard Barton, will be at the heart of our activities. Together with the National Leisure Group and its leading array of travel packages, and the development of a broad-based commerce travel channel, I can't think of a better knitting together of the convergence of entertainment, information and direct selling,'' said Barry Diller, Chairman and CEO, USA.

Barry Diller will become Chairman of Expedia. Richard Barton will continue in his role as President and CEO of Expedia. USA has also agreed to acquire National Leisure Group, Inc. (NLG), a provider of technology and fulfillment services to affiliate partners engaged in the sale of vacation packages and cruises. Aaron Gowell, President, will continue in that role.

USA's Travel Group will launch the USA Travel Channel, completing USA's multi-platform approach to sales in the travel industry. The digital television commerce channel, expected to launch this year, will be produced by retailing experts at the Home Shopping Network and will be supported by both the Entertainment and Interactive Groups within USA Networks, Inc. USA Cable's production and storytelling skills, HSN's merchandising expertise, Precision Response Corporation's contact centers and Ticketmaster and Citysearch's local information and transaction capabilities will all contribute to the channel.