Homestore.com, Inc. Reports Strong and Steady 1st Quarter Growth; Cash Profitability, Strong Revenue Growth Mark Record Performance

Apr 25, 2001, 01:00 ET from Homestore.com, Inc.

    WESTLAKE VILLAGE, Calif., April 25 /PRNewswire/ -- Homestore.com, Inc.
 (Nasdaq: HOMS), the leading supplier of online media and technology to the
 home and real estate industry, today reported pro forma revenue of
 $118.4 million and pro forma net income, excluding the effects of certain
 non-cash items, move.com acquisition-related charges and the write-down of
 certain investments, of $4.0 million, or $0.04 per share, for the first
 quarter of 2001, the company's third consecutive quarter of cash
 profitability.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010425/LAW064LOGO )
     "I'm extremely proud of the Homestore.com team for posting a very strong
 quarter in a very difficult market," said Stuart Wolff, chairman and chief
 executive officer.  "I'm also very pleased with the speed at which we have
 integrated the move.com acquisition while continuing our track record of
 strong operational performance."
     The company said pro forma revenues for the first quarter increased to
 $118.4 million, up 105 percent from pro forma revenues of $57.6 million for
 the first quarter of 2000, and up 11 percent from pro forma revenues of
 $106.4 million for the fourth quarter of 2000.  The company's pro forma gross
 profit margin was 73.5 percent for the first quarter compared to a pro forma
 gross profit margin of 64.7 percent for the first quarter of 2000, and
 71.7 percent, on a pro forma basis, for the fourth quarter of 2000.  Pro forma
 net income for the first quarter was $4.0 million, or $0.04 per share.  That
 compares to pro forma net loss of $33.7 million, or $0.35 per share, for the
 first quarter of 2000 and pro forma net loss of $14.6 million, or $0.14 per
 share, for the fourth quarter of 2000.
     Pro forma net income and loss exclude the effects of move.com
 acquisition-related charges and the write-down of certain investments as well
 as non-cash charges for amortization of intangible assets, stock-based charges
 and accretion of distribution obligation, included in other expense.  To
 enhance comparability, pro forma operating results assume that the acquisition
 of move.com from Cendant Corporation occurred on January 1, 2000.
     On a GAAP basis, the company's revenues for the first quarter of 2001 were
 $105.5 million, compared to $38.6 million for the first quarter of 2000 and
 $79.0 million for the fourth quarter of 2000.  The net loss for the first
 quarter of 2001 was $67.1 million, or $0.71 per share, compared to a net loss
 of $29.2 million, or $0.39 per share, for the first quarter of 2000, and
 $34.2 million, or $0.41 per share, for the fourth quarter of 2000.
     Subscriptions generated approximately 64 percent of total pro forma
 revenues in the quarter while advertising generated approximately 36 percent.
 The improvement in subscription revenue was due to the increase in the number
 of professional subscribers of Homestore.com products, including the bulk
 purchase of lead generation products by Cendant Corporation.  The number of
 professional subscriptions rose to approximately 359,000 at March 31, 2001, a
 95 percent increase from the total at December 31, 2000 of 184,000
 professionals on a pro forma basis.  Renewals also contributed to the increase
 in professional subscriptions with the renewal rate consistent with prior
 quarters at approximately 70 percent.
     While the percentage of revenue from advertising declined, the amount of
 dollars generated by advertising sales remained strong, in part, due to record
 traffic numbers posted during the quarter.  The average monthly number of
 unique users visiting the Homestore.com network rose to approximately
 6.7 million, up 87 percent from the first quarter of 2000 and up 21 percent
 from the fourth quarter of 2000.  Each unique user spent an average of
 20.8 minutes per month on these Web sites, down 19 percent from Q1 2000, and
 up 5 percent from the fourth quarter of 2000.  Page views were 1.1 billion for
 the quarter, up 51 percent from the first quarter of 2000, and up 47 percent
 from the fourth quarter of 2000.  Nearly 1.6 billion properties cumulatively
 were viewed during the period bringing the cumulative number of properties
 viewed since the company's inception to approximately 9.5 billion.
 (Unique users and user minutes are based on Media Metrix data.)
 
     QUARTERLY HIGHLIGHTS
     On February 16, Homestore.com completed the acquisition of move.com and
 related assets from Cendant Corporation.  Combining Homestore.com's assets
 with those of move.com expanded the company's reach and further extended
 Homestore.com's leadership position.  Key assets from the acquisition include
 the Web sites move.com, Rent Net, House Net, Senior Housing Net, and
 Self Storage Net, as well as direct marketing company Welcome Wagon(R).  The
 integration of these assets was largely completed in the first quarter of
 2001.
     Homestore.com continued its clear leadership with consumers by posting
 record Internet traffic numbers in the online real estate category.  For
 March, Media Metrix reported the Homestore.com network logged more than
 7.1 million unique users while Nielsen/NetRatings reported more than
 9.6 million unique users for the same period.  NetRatings also ranked the
 Homestore.com network as the 32nd largest property on the Web in terms of
 unique users in March, up from 77th at this time last year.  In page views,
 NetRatings ranked the company the 19th largest property online, up from 51st
 at this time last year.
     During the quarter, the company continued its focus on enhancing its
 product offerings to home and real estate industry professionals.  In January,
 Homestore.com purchased certain assets from iPIX, including the license to
 sell iPIX's Virtual Tour Technology.  In March, Homestore.com announced a
 three-year deal with Kodak to make it easier for real estate professionals to
 post, preview and edit digital images and virtual tours for online property
 listings.  Taken together, these two arrangements will enhance the value of
 our products to real estate professionals.
     In the same way that Homestore.com has offered real estate professionals a
 number of software tools to help them work more efficiently and connect with
 their online audience, the company has begun expanding similar product lines
 for the nation's home builders.  In February, the company launched
 "Groundbreaker," a lead generation product specifically targeted to custom
 home builders, who represent approximately 70 percent of the home building
 market.
 
     FINANCIAL OUTLOOK
     The following statements are based on Homestore.com's current expectations
 as of April 25, 2001.  These statements are forward-looking statements and
 actual results may differ materially.  A discussion concerning forward-looking
 statements and potential risks and uncertainties that may affect these
 statements is included at the end of this press release and in the Annual
 Report on Form 10-K filed with the Securities and Exchange Commission.
     For the full year 2001, the company expects to generate pro forma revenues
 of $500.0 million and pro forma earnings per share of $0.53.  In the second
 quarter of 2001, Homestore.com expects to generate revenues of $122.5 million
 and pro forma earnings per share of $0.11.  In the third quarter of 2001, the
 company expects to generate revenues of $127.0 million and pro forma earnings
 per share of $0.16.  In the fourth quarter of 2001, the company expects to
 generate revenues of $132.0 million and pro forma earnings per share of $0.21.
 Homestore.com expects to see gross margins of approximately 75 percent by
 Q4 2001.  For the full year 2002, the company expects to generate revenues of
 $662.0 million and pro forma earnings per share of $0.89.  Homestore.com
 expects gross margins to be approximately 76 percent for the full year 2002.
 
     CONFERENCE CALL
     The Homestore.com conference call to discuss first quarter financial
 results and the company's outlook and future prospects will be broadcast live
 over the Internet on Wednesday, April 25, 2001 at 2:00 p.m. Pacific Time
 (5:00 p.m. Eastern Time).  Log on to www.homestore.com, click on
 "All About Homestore," then "Investor Relations," then "Conference Call," and
 then "Live Webcast."  RealPlayer software is required and is obtainable at no
 cost.  Please connect to the above site 10 minutes prior to the call to load
 any necessary audio software.  A replay of the call will also be available in
 the same section of the company's Web site.  A telephone replay will be
 available from 7:00 p.m. Pacific Time on April 25, 2001 until midnight May 9,
 2001 at (719) 457-0820, conference code 693918.
 
     ABOUT HOMESTORE.COM, INC.
     Homestore.com, Inc. (Nasdaq: HOMS) is the leading supplier of online media
 and technology solutions to the home and real estate industry.  Through its
 family of Web sites, the company offers consumers Everything Home(TM) and the
 world's largest online database of homes for sale.  The company's
 category-leading network of Web sites include Realtor.com(R), the official Web
 site of the National Association of Realtors(R); new homes destination,
 HomeBuilder.com(TM); Homestore.com(TM) Apartments & Rentals; relocation
 destination, HomeFair.com(R); and home information resource,
 Homestore.com(TM).  Information in this press release concerning traffic
 numbers on the Homestore.com network includes traffic on certain other Web
 sites in addition to those named.  Content is also available through the AOL
 House & Home Channel.  Homestore.com, Inc. also develops and sells technology
 to help home and real estate professionals connect with their online audience
 and work more efficiently.  For more information log on to:
 http://www.homestore.com/allabout.
 
     For further information, please contact:  Media, Karen Fulton,
 805-557-2661, karen.fulton@homestore.com, or Gary Gerdemann, 805-557-3597,
 gary.gerdemann@homestore.com, or Financial, DeLise Keim, 805-557-2599,
 delise.keim@homestore.com, or Joe Shew, 805-557-2426, joe.shew@homestore.com,
 all of Homestore.com, Inc.
 
     Forward-looking statements
     This press release contains forward-looking statements that are subject to
 material risks and uncertainties.  Investors should not place undue reliance
 on these forward-looking statements, which speak only as of the date of this
 press release.  Actual results may differ materially and reported results
 should not be considered as an indicator of future performance.  Risks and
 uncertainties that may affect our future results include, but are not limited
 to, the following: our ability to maintain and manage favorable agreements and
 relationships with the National Association of Realtors, the National
 Association of Home Builders, other individuals and entities in the real
 estate professional community, and Internet portals; our ability to continue
 to obtain a large percentage of available real property listings; our ability
 to obtain such listings on an exclusive basis; acceptance by consumers and
 real estate professionals of our business model; our ability to manage rapid
 growth, both internally and through acquisitions; the success of strategic
 alliances and joint ventures that we enter into; changes in the real estate
 markets; seasonality and other fluctuations in the company's financial
 results; our ability to maintain high reliability for our server-based Web
 services; and uncertainty as to the timing and amount of future
 Internet-related revenue and profits.  The matters discussed in this press
 release also involve risks and uncertainties described from time to time in
 our filings with the Securities and Exchange Commission (SEC).  In particular,
 see "Risk Factors" in our Annual Report on Form 10-K for the year ended
 December 31, 2000 filed with the SEC.  We assume no duty to update the
 information in this press release if any forward-looking statement later turns
 out to be inaccurate.
 
 
                              Homestore.com, Inc.
            Consolidated Statements of Operations - Pro Forma Basis
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                       For the Three Months
                                                         Ended March 31,
                                                       2001           2000
 
     Revenues                                      $  118,438     $   57,640
     Cost of revenues                                  31,345         20,342
         Gross profit                                  87,093         37,298
 
     Operating expenses:
       Sales and marketing                             56,730         54,093
       Product development                              5,599          2,252
       General and administrative                      27,438         19,087
       Amortization of intangible assets               54,347         53,223
       Stock-based charges                             22,320         12,175
       Acquisition-related charges                      7,065          3,250
     Total operating expenses                         173,499        144,080
     Loss from operations                             (86,406)      (106,782)
     Interest income, net                               4,430          4,409
     Other expense, net                               (12,621)           (14)
     Net loss                                      $  (94,597)    $ (102,387)
 
     Basic and diluted net loss per share          $     (.89)    $    (1.07)
 
     Shares used to calculate basic and
      diluted net loss per share                      105,843         95,414
 
     Net income/(loss), excluding
      certain charges (1)                          $    3,970     $  (33,739)
 
     Basic and diluted net income/
      (loss) per share, excluding
      certain charges (1) (2)                      $      .04     $     (.35)
 
 
     (1) Excludes the effect of non-cash charges for amortization of intangible
         assets, stock-based charges, and accretion of distribution obligation,
         included in other expense, as well as move.com acquisition-related
         charges and write-down of certain investments ($11.1 million).
 
     (2) Net income per share, excluding non-cash charges, move.com
         acquisition-related charges and write-down of certain investments, for
         the three months ended March 31, 2001 was calculated using fully
         diluted shares.  Fully diluted shares for the three months ended
         March 31, 2001 was 110,765.
 
 
                                Homestore.com, Inc.
                 Consolidated Statements of Operations - GAAP Basis
                      (in thousands, except per share amounts)
                                    (unaudited)
 
 
                                                       For the Three Months
                                                         Ended March 31,
                                                       2001           2000
 
     Revenues                                      $  105,491     $   38,599
     Cost of revenues                                  27,923         10,560
         Gross profit                                  77,568         28,039
 
     Operating expenses:
       Sales and marketing                             46,457         29,785
       Product development                              5,385          1,840
       General and administrative                      22,381         10,815
       Amortization of intangible assets               33,788          8,392
       Stock-based charges                             21,295         10,814
       Acquisition-related charges                      7,065              -
     Total operating expenses                         136,371         61,646
     Loss from operations                             (58,803)       (33,607)
     Interest income, net                               4,451          4,409
     Other expense, net                               (12,796)           (14)
     Net loss                                      $  (67,148)    $  (29,212)
 
     Basic and diluted net loss per share          $     (.71)    $     (.39)
 
     Shares used to calculate basic and
      diluted net loss per share                       94,925         74,052
 
 
                                Homestore.com, Inc.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
     Assets                                          March 31,   December 31,
                                                       2001          2000
                                                    (unaudited)
     Current assets:
       Cash and cash equivalents                   $  284,152     $  180,985
       Short-term investments                          19,078         75,295
       Marketable equity security                       4,459            247
       Accounts receivable, net                        59,227         44,472
       Current portion of notes receivable              7,299          5,598
       Current portion of prepaid
        distribution expense                           46,557         49,140
       Other current assets                            34,083         23,567
                                                      454,855        379,304
 
     Prepaid distribution expense,
      net of current portion                          145,732        159,226
     Property and equipment, net                       71,341         45,061
     Intangible assets, net                           991,052        194,742
     Restricted cash                                   90,000         90,000
     Other long-term assets                            31,543         50,322
       Total assets                                $1,784,523     $  918,655
 
       Liabilities and Stockholders' Equity
 
     Current liabilities:
       Accounts payable                            $   35,257     $   13,473
       Accrued liabilities                             85,156         49,235
       Deferred revenue                                76,226         27,090
                                                      196,639         89,798
 
     Distribution obligation                          193,551        189,848
     Other                                              4,919          4,646
       Total liabilities                              395,109        284,292
 
       Total stockholders' equity                   1,389,414        634,363
 
       Total liabilities and
        stockholders' equity                       $1,784,523     $  918,655
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Homestore.com, Inc.
    WESTLAKE VILLAGE, Calif., April 25 /PRNewswire/ -- Homestore.com, Inc.
 (Nasdaq: HOMS), the leading supplier of online media and technology to the
 home and real estate industry, today reported pro forma revenue of
 $118.4 million and pro forma net income, excluding the effects of certain
 non-cash items, move.com acquisition-related charges and the write-down of
 certain investments, of $4.0 million, or $0.04 per share, for the first
 quarter of 2001, the company's third consecutive quarter of cash
 profitability.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010425/LAW064LOGO )
     "I'm extremely proud of the Homestore.com team for posting a very strong
 quarter in a very difficult market," said Stuart Wolff, chairman and chief
 executive officer.  "I'm also very pleased with the speed at which we have
 integrated the move.com acquisition while continuing our track record of
 strong operational performance."
     The company said pro forma revenues for the first quarter increased to
 $118.4 million, up 105 percent from pro forma revenues of $57.6 million for
 the first quarter of 2000, and up 11 percent from pro forma revenues of
 $106.4 million for the fourth quarter of 2000.  The company's pro forma gross
 profit margin was 73.5 percent for the first quarter compared to a pro forma
 gross profit margin of 64.7 percent for the first quarter of 2000, and
 71.7 percent, on a pro forma basis, for the fourth quarter of 2000.  Pro forma
 net income for the first quarter was $4.0 million, or $0.04 per share.  That
 compares to pro forma net loss of $33.7 million, or $0.35 per share, for the
 first quarter of 2000 and pro forma net loss of $14.6 million, or $0.14 per
 share, for the fourth quarter of 2000.
     Pro forma net income and loss exclude the effects of move.com
 acquisition-related charges and the write-down of certain investments as well
 as non-cash charges for amortization of intangible assets, stock-based charges
 and accretion of distribution obligation, included in other expense.  To
 enhance comparability, pro forma operating results assume that the acquisition
 of move.com from Cendant Corporation occurred on January 1, 2000.
     On a GAAP basis, the company's revenues for the first quarter of 2001 were
 $105.5 million, compared to $38.6 million for the first quarter of 2000 and
 $79.0 million for the fourth quarter of 2000.  The net loss for the first
 quarter of 2001 was $67.1 million, or $0.71 per share, compared to a net loss
 of $29.2 million, or $0.39 per share, for the first quarter of 2000, and
 $34.2 million, or $0.41 per share, for the fourth quarter of 2000.
     Subscriptions generated approximately 64 percent of total pro forma
 revenues in the quarter while advertising generated approximately 36 percent.
 The improvement in subscription revenue was due to the increase in the number
 of professional subscribers of Homestore.com products, including the bulk
 purchase of lead generation products by Cendant Corporation.  The number of
 professional subscriptions rose to approximately 359,000 at March 31, 2001, a
 95 percent increase from the total at December 31, 2000 of 184,000
 professionals on a pro forma basis.  Renewals also contributed to the increase
 in professional subscriptions with the renewal rate consistent with prior
 quarters at approximately 70 percent.
     While the percentage of revenue from advertising declined, the amount of
 dollars generated by advertising sales remained strong, in part, due to record
 traffic numbers posted during the quarter.  The average monthly number of
 unique users visiting the Homestore.com network rose to approximately
 6.7 million, up 87 percent from the first quarter of 2000 and up 21 percent
 from the fourth quarter of 2000.  Each unique user spent an average of
 20.8 minutes per month on these Web sites, down 19 percent from Q1 2000, and
 up 5 percent from the fourth quarter of 2000.  Page views were 1.1 billion for
 the quarter, up 51 percent from the first quarter of 2000, and up 47 percent
 from the fourth quarter of 2000.  Nearly 1.6 billion properties cumulatively
 were viewed during the period bringing the cumulative number of properties
 viewed since the company's inception to approximately 9.5 billion.
 (Unique users and user minutes are based on Media Metrix data.)
 
     QUARTERLY HIGHLIGHTS
     On February 16, Homestore.com completed the acquisition of move.com and
 related assets from Cendant Corporation.  Combining Homestore.com's assets
 with those of move.com expanded the company's reach and further extended
 Homestore.com's leadership position.  Key assets from the acquisition include
 the Web sites move.com, Rent Net, House Net, Senior Housing Net, and
 Self Storage Net, as well as direct marketing company Welcome Wagon(R).  The
 integration of these assets was largely completed in the first quarter of
 2001.
     Homestore.com continued its clear leadership with consumers by posting
 record Internet traffic numbers in the online real estate category.  For
 March, Media Metrix reported the Homestore.com network logged more than
 7.1 million unique users while Nielsen/NetRatings reported more than
 9.6 million unique users for the same period.  NetRatings also ranked the
 Homestore.com network as the 32nd largest property on the Web in terms of
 unique users in March, up from 77th at this time last year.  In page views,
 NetRatings ranked the company the 19th largest property online, up from 51st
 at this time last year.
     During the quarter, the company continued its focus on enhancing its
 product offerings to home and real estate industry professionals.  In January,
 Homestore.com purchased certain assets from iPIX, including the license to
 sell iPIX's Virtual Tour Technology.  In March, Homestore.com announced a
 three-year deal with Kodak to make it easier for real estate professionals to
 post, preview and edit digital images and virtual tours for online property
 listings.  Taken together, these two arrangements will enhance the value of
 our products to real estate professionals.
     In the same way that Homestore.com has offered real estate professionals a
 number of software tools to help them work more efficiently and connect with
 their online audience, the company has begun expanding similar product lines
 for the nation's home builders.  In February, the company launched
 "Groundbreaker," a lead generation product specifically targeted to custom
 home builders, who represent approximately 70 percent of the home building
 market.
 
     FINANCIAL OUTLOOK
     The following statements are based on Homestore.com's current expectations
 as of April 25, 2001.  These statements are forward-looking statements and
 actual results may differ materially.  A discussion concerning forward-looking
 statements and potential risks and uncertainties that may affect these
 statements is included at the end of this press release and in the Annual
 Report on Form 10-K filed with the Securities and Exchange Commission.
     For the full year 2001, the company expects to generate pro forma revenues
 of $500.0 million and pro forma earnings per share of $0.53.  In the second
 quarter of 2001, Homestore.com expects to generate revenues of $122.5 million
 and pro forma earnings per share of $0.11.  In the third quarter of 2001, the
 company expects to generate revenues of $127.0 million and pro forma earnings
 per share of $0.16.  In the fourth quarter of 2001, the company expects to
 generate revenues of $132.0 million and pro forma earnings per share of $0.21.
 Homestore.com expects to see gross margins of approximately 75 percent by
 Q4 2001.  For the full year 2002, the company expects to generate revenues of
 $662.0 million and pro forma earnings per share of $0.89.  Homestore.com
 expects gross margins to be approximately 76 percent for the full year 2002.
 
     CONFERENCE CALL
     The Homestore.com conference call to discuss first quarter financial
 results and the company's outlook and future prospects will be broadcast live
 over the Internet on Wednesday, April 25, 2001 at 2:00 p.m. Pacific Time
 (5:00 p.m. Eastern Time).  Log on to www.homestore.com, click on
 "All About Homestore," then "Investor Relations," then "Conference Call," and
 then "Live Webcast."  RealPlayer software is required and is obtainable at no
 cost.  Please connect to the above site 10 minutes prior to the call to load
 any necessary audio software.  A replay of the call will also be available in
 the same section of the company's Web site.  A telephone replay will be
 available from 7:00 p.m. Pacific Time on April 25, 2001 until midnight May 9,
 2001 at (719) 457-0820, conference code 693918.
 
     ABOUT HOMESTORE.COM, INC.
     Homestore.com, Inc. (Nasdaq: HOMS) is the leading supplier of online media
 and technology solutions to the home and real estate industry.  Through its
 family of Web sites, the company offers consumers Everything Home(TM) and the
 world's largest online database of homes for sale.  The company's
 category-leading network of Web sites include Realtor.com(R), the official Web
 site of the National Association of Realtors(R); new homes destination,
 HomeBuilder.com(TM); Homestore.com(TM) Apartments & Rentals; relocation
 destination, HomeFair.com(R); and home information resource,
 Homestore.com(TM).  Information in this press release concerning traffic
 numbers on the Homestore.com network includes traffic on certain other Web
 sites in addition to those named.  Content is also available through the AOL
 House & Home Channel.  Homestore.com, Inc. also develops and sells technology
 to help home and real estate professionals connect with their online audience
 and work more efficiently.  For more information log on to:
 http://www.homestore.com/allabout.
 
     For further information, please contact:  Media, Karen Fulton,
 805-557-2661, karen.fulton@homestore.com, or Gary Gerdemann, 805-557-3597,
 gary.gerdemann@homestore.com, or Financial, DeLise Keim, 805-557-2599,
 delise.keim@homestore.com, or Joe Shew, 805-557-2426, joe.shew@homestore.com,
 all of Homestore.com, Inc.
 
     Forward-looking statements
     This press release contains forward-looking statements that are subject to
 material risks and uncertainties.  Investors should not place undue reliance
 on these forward-looking statements, which speak only as of the date of this
 press release.  Actual results may differ materially and reported results
 should not be considered as an indicator of future performance.  Risks and
 uncertainties that may affect our future results include, but are not limited
 to, the following: our ability to maintain and manage favorable agreements and
 relationships with the National Association of Realtors, the National
 Association of Home Builders, other individuals and entities in the real
 estate professional community, and Internet portals; our ability to continue
 to obtain a large percentage of available real property listings; our ability
 to obtain such listings on an exclusive basis; acceptance by consumers and
 real estate professionals of our business model; our ability to manage rapid
 growth, both internally and through acquisitions; the success of strategic
 alliances and joint ventures that we enter into; changes in the real estate
 markets; seasonality and other fluctuations in the company's financial
 results; our ability to maintain high reliability for our server-based Web
 services; and uncertainty as to the timing and amount of future
 Internet-related revenue and profits.  The matters discussed in this press
 release also involve risks and uncertainties described from time to time in
 our filings with the Securities and Exchange Commission (SEC).  In particular,
 see "Risk Factors" in our Annual Report on Form 10-K for the year ended
 December 31, 2000 filed with the SEC.  We assume no duty to update the
 information in this press release if any forward-looking statement later turns
 out to be inaccurate.
 
 
                              Homestore.com, Inc.
            Consolidated Statements of Operations - Pro Forma Basis
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                       For the Three Months
                                                         Ended March 31,
                                                       2001           2000
 
     Revenues                                      $  118,438     $   57,640
     Cost of revenues                                  31,345         20,342
         Gross profit                                  87,093         37,298
 
     Operating expenses:
       Sales and marketing                             56,730         54,093
       Product development                              5,599          2,252
       General and administrative                      27,438         19,087
       Amortization of intangible assets               54,347         53,223
       Stock-based charges                             22,320         12,175
       Acquisition-related charges                      7,065          3,250
     Total operating expenses                         173,499        144,080
     Loss from operations                             (86,406)      (106,782)
     Interest income, net                               4,430          4,409
     Other expense, net                               (12,621)           (14)
     Net loss                                      $  (94,597)    $ (102,387)
 
     Basic and diluted net loss per share          $     (.89)    $    (1.07)
 
     Shares used to calculate basic and
      diluted net loss per share                      105,843         95,414
 
     Net income/(loss), excluding
      certain charges (1)                          $    3,970     $  (33,739)
 
     Basic and diluted net income/
      (loss) per share, excluding
      certain charges (1) (2)                      $      .04     $     (.35)
 
 
     (1) Excludes the effect of non-cash charges for amortization of intangible
         assets, stock-based charges, and accretion of distribution obligation,
         included in other expense, as well as move.com acquisition-related
         charges and write-down of certain investments ($11.1 million).
 
     (2) Net income per share, excluding non-cash charges, move.com
         acquisition-related charges and write-down of certain investments, for
         the three months ended March 31, 2001 was calculated using fully
         diluted shares.  Fully diluted shares for the three months ended
         March 31, 2001 was 110,765.
 
 
                                Homestore.com, Inc.
                 Consolidated Statements of Operations - GAAP Basis
                      (in thousands, except per share amounts)
                                    (unaudited)
 
 
                                                       For the Three Months
                                                         Ended March 31,
                                                       2001           2000
 
     Revenues                                      $  105,491     $   38,599
     Cost of revenues                                  27,923         10,560
         Gross profit                                  77,568         28,039
 
     Operating expenses:
       Sales and marketing                             46,457         29,785
       Product development                              5,385          1,840
       General and administrative                      22,381         10,815
       Amortization of intangible assets               33,788          8,392
       Stock-based charges                             21,295         10,814
       Acquisition-related charges                      7,065              -
     Total operating expenses                         136,371         61,646
     Loss from operations                             (58,803)       (33,607)
     Interest income, net                               4,451          4,409
     Other expense, net                               (12,796)           (14)
     Net loss                                      $  (67,148)    $  (29,212)
 
     Basic and diluted net loss per share          $     (.71)    $     (.39)
 
     Shares used to calculate basic and
      diluted net loss per share                       94,925         74,052
 
 
                                Homestore.com, Inc.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
     Assets                                          March 31,   December 31,
                                                       2001          2000
                                                    (unaudited)
     Current assets:
       Cash and cash equivalents                   $  284,152     $  180,985
       Short-term investments                          19,078         75,295
       Marketable equity security                       4,459            247
       Accounts receivable, net                        59,227         44,472
       Current portion of notes receivable              7,299          5,598
       Current portion of prepaid
        distribution expense                           46,557         49,140
       Other current assets                            34,083         23,567
                                                      454,855        379,304
 
     Prepaid distribution expense,
      net of current portion                          145,732        159,226
     Property and equipment, net                       71,341         45,061
     Intangible assets, net                           991,052        194,742
     Restricted cash                                   90,000         90,000
     Other long-term assets                            31,543         50,322
       Total assets                                $1,784,523     $  918,655
 
       Liabilities and Stockholders' Equity
 
     Current liabilities:
       Accounts payable                            $   35,257     $   13,473
       Accrued liabilities                             85,156         49,235
       Deferred revenue                                76,226         27,090
                                                      196,639         89,798
 
     Distribution obligation                          193,551        189,848
     Other                                              4,919          4,646
       Total liabilities                              395,109        284,292
 
       Total stockholders' equity                   1,389,414        634,363
 
       Total liabilities and
        stockholders' equity                       $1,784,523     $  918,655
 
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 SOURCE  Homestore.com, Inc.