IAC Completes Acquisition of Ask Jeeves

Jul 19, 2005, 01:00 ET from IAC/InterActiveCorp

    NEW YORK, and OAKLAND, Calif., July 19 /PRNewswire-FirstCall/ --
 IAC/InterActiveCorp (Nasdaq:   IACI) today announced the successful completion
 of its acquisition of Ask Jeeves, a leading provider of information retrieval
 technologies, brands and Internet advertising services.
     Under the terms of the merger agreement each share of Ask Jeeves common
 stock was converted into the right to receive 1.2668 shares of IAC common
 stock, and options to purchase Ask Jeeves common stock were converted into
 options to acquire IAC common stock.  In addition, in connection with the
 transaction, IAC has irrevocably and unconditionally guaranteed Ask Jeeves'
 outstanding convertible subordinated notes due 2008; these notes are now
 convertible into shares of IAC common stock in accordance with their terms.
     In the transaction, IAC has issued approximately 74.8 million shares of
 IAC common stock in respect of Ask Jeeves' outstanding stock, and expects to
 issue approximately 13.2 million additional shares in respect of Ask Jeeves'
 outstanding convertible notes and in-the-money stock options.  As previously
 announced, IAC has offset a substantial portion of the dilution resulting from
 the transaction through its repurchase of 52.8 millions shares of its common
 stock.
     Shares of Ask Jeeves common stock, which prior to the merger traded on the
 Nasdaq National Market under the symbol "ASKJ", were delisted from trading as
 of the close of the market on Tuesday, July 19.
     Ask Jeeves will continue as an operating business of IAC, residing in the
 'Media & Advertising' sector of IAC, pursuant to IAC's recently announced new
 reporting configuration.
 
     About IAC/InterActiveCorp
     IAC operates leading and diversified businesses in sectors being
 transformed by the internet, online and offline ... our mission is to harness
 the power of interactivity to make daily life easier and more productive for
 people all over the world. To view a full list of the companies of IAC please
 visit our website at http://www.iac.com.
 
      Contacts:
      IAC Corporate Communications
      Deborah Roth
      (212) 314-7254
 
      IAC Investor Relations
      Roger Clark / Eoin Ryan
      (212) 314-7400
 
     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
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 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
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 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.
 
 

SOURCE IAC/InterActiveCorp