IAC/InterActiveCorp Acquires ServiceMagic, Inc.

Leading Home Services Marketplace Connects Consumers with Local Professionals;

Will Join IAC Local and Media Services Group

Jul 22, 2004, 01:00 ET from IAC/InterActiveCorp

    NEW YORK, July 22 /PRNewswire-FirstCall/ -- IAC/InterActiveCorp
 (Nasdaq:   IACI) today announced an agreement to acquire ServiceMagic, Inc., the
 nation's leading online home services marketplace, in a cash transaction.
 Terms of the agreement were not disclosed. ServiceMagic will remain an
 independent brand within the IAC Local and Media Services Group.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20031105/NYW076LOGO )
     ServiceMagic, founded in 1999, connects homeowners with prescreened and
 customer-rated residential contractors, real estate professionals and lenders.
 Nearly 50,000 service professionals utilize ServiceMagic to find targeted
 leads for home building, remodeling, architectural services, roofing, fences,
 decks, painting, flooring, plumbing, landscaping and much more. Since its
 inception, ServiceMagic has facilitated more than 2.4 million consumer
 requests for home services, representing an estimated $8.4 billion in consumer
 spending nationwide.
     Anne Busquet, CEO of IAC Local and Media Services, said, "The migration of
 local advertising from offline to online has tremendous growth potential and
 is applicable to hundreds of industries, but has been realized by only a few.
 ServiceMagic has created a highly scalable system that provides consumers
 convenience, confidence and choice in purchasing home-related services while
 driving down marketing costs for local service businesses via targeted
 advertising. The IAC Local and Media Services Group was formed to provide
 consumers with information, ratings, advice, connections and access wherever
 they are and wherever they are going so they can make well-informed decisions.
 We are pleased that ServiceMagic will join Citysearch, Evite, Entertainment
 Publications Inc. and TripAdvisor as part of our mission to efficiently
 connect merchants with the millions of consumers who want their services."
     The company launched ServiceMagic Real Estate in mid-2002 in an effort to
 address the large and fragmented residential real estate market. In October
 2003 the company launched ServiceMagic Lending, offering consumers convenient
 access to prescreened lenders for home mortgages, refinance loans and home
 equity loans. Upon closing of the acquisition, management of ServiceMagic's
 lending and real estate businesses will fall under the IAC Financial Services
 and Real Estate Group.
     ServiceMagic co-CEO and co-founder Michael Beaudoin said, "We launched
 ServiceMagic with the belief that there was a better way to connect homeowners
 with quality, reputable service professionals. IAC's extensive consumer reach
 and merchant relationships give us the opportunity to significantly accelerate
 our mission to revolutionize how people buy and sell local services and to
 expand to the many other business arenas that can benefit from our efficient
 customer acquisition platform."
     The transaction is expected to close in the third quarter of 2004.
     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., Hotels.com, Hotwire, Interval International, and TV Travel
 Shop; HSN; Ticketmaster, which oversees ReserveAmerica; Match.com;
 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.
     About ServiceMagic, Inc.
     ServiceMagic, Inc., headquartered in Golden, Colo., is the nation's
 leading online marketplace connecting homeowners with prescreened and
 customer-rated residential contractors, real estate professionals and lenders.
 The company has raised more than $48 million in capital, increased revenue 100
 percent on a year-over-year basis since 2000, and achieved $20 million in
 revenue and profitable operations in 2003.
     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
      IAC Investor Relations
      Roger Clark or Lauren Porat
      (212) 314-7400
      LendingTree Corporate Communications
      Mindy Neubauer
      (704) 944-8541
      ServiceMagic Corporate Communications
      Elaine Schoch
      (303) 963-8028

SOURCE IAC/InterActiveCorp