Hotel Reservations Network Announces Record First Quarter

First Quarter Highlights:

* 91% growth in net revenue

* 94% growth in EBITDA

* 101% growth in adjusted net income

* Travelocity affiliation expanded and extended to July 31, 2005

* Travelnow.com acquisition completed for $47.4 million in cash

* Cash and investments reached $183 million at March 31, 2001



Financial & Operating Data Three Months %

3/31/01 3/31/00 Change



Net Revenue (000's) $105,286 $55,263 + 91%

Gross Profit (000's) $31,572 $16,760 + 88%

EBITDA (000's) $15,822 $8,176 + 94%

Adjusted Net Income (000's) $11,183 $5,556 + 101%

Adjusted Earnings Per Share,

Diluted $0.20 $0.12 + 67%

Net Income (000's) $1,846 $1,165 + 58%

Earnings Per Share, Diluted $0.03 $0.03 -

Weighted Average Shares O/S,

Diluted (000's) 56,595 45,611 +24%

Operating Data (excludes

TravelNow except as noted)

Room Nights Sold, net

of cancellations 799,000 429,000 + 86%

Cities Served 135 49 + 176%

Properties 3,084 1,750 + 76%

Affiliates - HRN only 5,149 2,000 + 157%

Affiliates - HRN and TravelNow,

combined 18,649 6,000 + 211%



"Demand for our unique services continued to surge during the first

quarter. We continued to be the booking engine of choice during this

slower economic period because of our low rates and excellent selection.

For instance, customers visiting our own website at www.hoteldiscount.com

would find a discounted rate of $79.95 for a night at the Aladdin in Las

Vegas. "

-- Bob Diener, President



Apr 23, 2001, 01:00 ET from Hotel Reservations Network

    DALLAS, April 23 /PRNewswire Interactive Press Release/ -- Hotel
 Reservations Network (Nasdaq:   ROOM), the leading provider of discount hotel
 rooms worldwide, today announced record revenues and net income for the first
 quarter ended March 31, 2001.
     Fueled by its base of over 18,600 affiliates, net revenues increased
 91 percent to $105.3 million in the first quarter.  EBITDA grew 94 percent to
 $15.8 million.  Adjusted net income, which excludes certain non-cash expenses
 including amortization of goodwill and non-cash marketing and distribution
 expenses, grew 101 percent to $11.2 million.  Diluted adjusted earnings per
 share totaled $0.20 versus $0.12 in the same period one year ago.
     "Demand for our unique services continued to surge during the first
 quarter," said Bob Diener, President of Hotel Reservations Network.  "We
 continued to be the booking engine of choice during this slower economic
 period because of our low rates and excellent selection."  For instance,
 customers visiting our own website at www.hoteldiscount.com would find a
 discounted rate of $79.95 for a night at the Aladdin in Las Vegas."
     The strength of the company's business was reflected in the company's
 stock price as well.  According to USA Today's quarterly Internet 100 Report,
 Hotel Reservations Network was one of only three companies in the Internet 100
 to appreciate in price over the twelve month period ended March 31, 2001, and
 it was the #1 performing stock in the "e-Retail" segment.
     "HRN's success is based on our ability to deliver benefits to both our
 suppliers and our customers," added David Litman, Chief Executive Officer.
 "The Internet has enabled us to dramatically raise our profile within the
 lodging market, which has enhanced our ability to provide customers to our
 hotels and vacation rental partners. Our customers benefit not only from our
 great values, but also from an ever-increasing selection of lodging products
 around the world."
     The company also extended its leading position on the Internet during the
 quarter through the closing of its acquisition of Travelnow.com on February
 16.  With TravelNow's 13,500 affiliates in the fold, the company's robust
 booking engine has quadrupled its Internet exposure and created a solid
 platform for further penetration of the enormous worldwide lodging market.
 The total number of affiliates of both HRN and TravelNow grew to 18,649
 affiliates by the end of the quarter.
     Also in the quarter, the company expanded and extended its affiliate
 relationship with Travelocity through July 31, 2005. This brings over
 20 million customers to HRN from Travelocity and tens of millions of
 additional customers to HRN from Travelocity's partners, which include AOL,
 AOL.com, Yahoo, Netscape, Excite, Lycos and other portals.
     Looking ahead at the balance of the 2001 year, Diener is optimistic.  "We
 are particularly gratified by our ability to control expenses even as our top
 line revenue continues to grow at a rapid pace," he added.  "This will remain
 a primary focus of ours as we target revenues of at least $500 million for
 2001."
     The company provided updated guidance for revenues, EBITDA and adjusted
 earnings per share for the three remaining quarters of 2001 as well as an
 updated revenue and EBITDA outlook for 2002.  For the second quarter of 2001,
 management expects revenues of at least $120.0 million, EBITDA of at least
 $18.0 million, and adjusted earnings per share of at least $0.22.  For the
 third quarter of 2001, management expects revenues of at least $135 million,
 EBITDA of at least $20.0 million, and adjusted earnings per share of at least
 $0.24.  For the fourth quarter of 2001, management expects revenues of at
 least $140.0 million, EBITDA of at least $21.0 million, and adjusted earnings
 per share of at least $0.26.  For the full 2001 year, management expects
 revenues of at least $500 million, EBITDA of at least $74.8 million, and
 adjusted earnings per share of at least $0.92. For the 2002 year, management
 has increased its expectation for full year revenues to at least $700 million,
 EBITDA of at least $105 million and adjusted earnings per share of at least
 $1.20.
     HRN management will discuss its first quarter results and its business
 outlook on a conference call today at 11:00am Eastern Time.  The conference
 call will be webcast live on the Investor Relations section of the company's
 web site at www.hoteldiscount.com , and also at www.streetfusion.com . To
 listen to the call, log on to either web site at least 15 minutes early to
 register, download and install any necessary audio software.  The call will
 also be available via telephone by dialing 703-871-3017.  An audio archive of
 the conference call may be accessed at either web site, and is available by
 phone for the seven days after the conference call by calling 703-925-2435 and
 typing in pass code #5141106.
     Hotel Reservations Network, a majority-owned subsidiary of USA Networks,
 Inc.'s (Nasdaq:   USAI) Information and Services unit, is the number one
 consolidator of discount hotel accommodations worldwide, providing service
 through its own websites ( www.180096hotel.com , www.hoteldiscount.com ,
 www.condosaver.com and www.travelnow.com ), more than 18,600 affiliated
 websites, and several toll-free call centers (1-800-96HOTEL). HRN provides
 travelers with a one-stop shopping source for hotel pricing, amenities and
 availability. HRN also specializes in providing travelers with accommodations
 for sold-out periods in major cities.
     This news release contains "forward-looking statements" within the meaning
 of section 21E of the Securities Exchange Act of 1934, as amended. The company
 has based these forward-looking statements on its current expectations and
 projections about future events, based on the information currently available
 to it. The forward-looking statements include statements relating to the
 company's anticipated financial performance, business prospects, new
 developments, new strategies and similar matters. The following important
 factors, in addition to those described under the section "Risk Factors" in
 the company's Annual Report on Form 10-K for the year ended December 31, 2000
 (which is available upon request from the company or on the company's
 websites, www.hoteldiscount.com and www.180096hotel.com , under the heading
 "Investor Relations") may affect the future results of the company and cause
 those results to differ materially from those expressed in the forward-looking
 statements: material adverse changes in the economic conditions in the
 company's markets; future regulatory actions and conditions in the company's
 operating areas; competition from others; product demand and market
 acceptance; the ability to protect proprietary information and technology or
 to obtain necessary licenses on commercially reasonable terms; and the ability
 to obtain and retain key executives and employees. The company undertakes no
 obligation to publicly update or revise any forward-looking statements,
 whether as a result of new information, future events or any other reason.
 
 
                          Hotel Reservations Network, Inc.
                           Condensed Statement of Income
                                    (Unaudited)
                   (In thousands, except for per share amounts)
 
                                                  Three Months Ended March 31,
 
                                                      2001               2000
 
 
     Revenues                                       $105,286           $55,263
 
     Cost of revenues                                 73,714            38,503
 
     Gross profit                                     31,572            16,760
 
     Operating expenses:
        Selling general & administrative              16,046             8,755
        Amortization of non-cash marketing
         and distribution expenses                     3,931               450
        Amortization of goodwill                      11,000             6,689
     Total operating expenses                         30,977            15,894
 
     Income from operations                              595               866
 
     Interest & other income, net                      2,657             1,029
 
     Income (loss) before income tax                   3,252             1,895
 
     Provision for income tax                          1,406               730
 
     Net Income                                       $1,846            $1,165
 
     Net income per share (basic &
      diluted)                                         $0.03             $0.03
 
     Weighted average shares outstanding
      (basic) (A)                                     55,404            45,412
     Weighted average shares outstanding
      (diluted) (A)                                   56,595            45,611
 
     EBITDA (B)                                      $15,822            $8,176
 
     Adjusted income excluding certain
      Non-Cash charges (C):
 
     Income before income tax                         $3,252            $1,895
     Adjustment for non-cash and non-
      recurring expenses:
        Amortization of goodwill                      11,000             6,689
        Amortization of non-cash marketing
         and distribution expenses                     3,931               450
 
     Total non-cash expenses                          14,931             7,139
 
     Adjusted pre-tax income before non-
      cash expenses                                   18,183             9,034
 
     Provision for income tax                          7,000             3,478
 
     Adjusted net income                             $11,183            $5,556
 
     Adjusted EPS Excluding Certain  Non-
      Cash Charges (basic and diluted) (C)             $0.20             $0.12
 
     Weighted average shares outstanding
      (basic) (A)                                     55,404            45,412
 
     Weighted average shares outstanding
      (diluted) (A)                                   56,595            45,611
 
     Notes:
 
     (A) Weighted average shares outstanding for the calculation of earnings
         per share for the three months ended March 31, 2000 assumed the 38,999
         shares of the Class B Common Stock was outstanding for the entire
         period and the 16,210 shares of  Class A Common Stock and the dilutive
         effect of options and warrants issued at the time of the initial
         public offering (IPO) are weighted for the period from February 25,
         2000 (date of IPO) to March 31, 2000.
 
     (B) EBITDA is defined as earnings before interest, taxes, depreciation and
         amortization.
 
     (C) Adjusted Net Income and Adjusted EPS information is presented for
         informational purposes only and should not be considered as a
         substitute for the historical financial information presented in
         accordance with accounting principles generally accepted in the United
         States.
 
 
                         Hotel Reservations Network, Inc.
                            Selected Balance Sheet Data
                                    (Unaudited)
                                  (In thousands)
 
 
                                                    March 31,         March 31,
                                                      2001              2000
 
 
     Cash & cash equivalents                       $104,200          $104,825
     Short-term investments held for sale            78,704            31,642
     Fixed assets, net                                5,653             2,068
     Accounts payable                                49,332            24,256
     Deferred revenue                                57,657            38,265
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X25315108
 
 

SOURCE Hotel Reservations Network
    DALLAS, April 23 /PRNewswire Interactive Press Release/ -- Hotel
 Reservations Network (Nasdaq:   ROOM), the leading provider of discount hotel
 rooms worldwide, today announced record revenues and net income for the first
 quarter ended March 31, 2001.
     Fueled by its base of over 18,600 affiliates, net revenues increased
 91 percent to $105.3 million in the first quarter.  EBITDA grew 94 percent to
 $15.8 million.  Adjusted net income, which excludes certain non-cash expenses
 including amortization of goodwill and non-cash marketing and distribution
 expenses, grew 101 percent to $11.2 million.  Diluted adjusted earnings per
 share totaled $0.20 versus $0.12 in the same period one year ago.
     "Demand for our unique services continued to surge during the first
 quarter," said Bob Diener, President of Hotel Reservations Network.  "We
 continued to be the booking engine of choice during this slower economic
 period because of our low rates and excellent selection."  For instance,
 customers visiting our own website at www.hoteldiscount.com would find a
 discounted rate of $79.95 for a night at the Aladdin in Las Vegas."
     The strength of the company's business was reflected in the company's
 stock price as well.  According to USA Today's quarterly Internet 100 Report,
 Hotel Reservations Network was one of only three companies in the Internet 100
 to appreciate in price over the twelve month period ended March 31, 2001, and
 it was the #1 performing stock in the "e-Retail" segment.
     "HRN's success is based on our ability to deliver benefits to both our
 suppliers and our customers," added David Litman, Chief Executive Officer.
 "The Internet has enabled us to dramatically raise our profile within the
 lodging market, which has enhanced our ability to provide customers to our
 hotels and vacation rental partners. Our customers benefit not only from our
 great values, but also from an ever-increasing selection of lodging products
 around the world."
     The company also extended its leading position on the Internet during the
 quarter through the closing of its acquisition of Travelnow.com on February
 16.  With TravelNow's 13,500 affiliates in the fold, the company's robust
 booking engine has quadrupled its Internet exposure and created a solid
 platform for further penetration of the enormous worldwide lodging market.
 The total number of affiliates of both HRN and TravelNow grew to 18,649
 affiliates by the end of the quarter.
     Also in the quarter, the company expanded and extended its affiliate
 relationship with Travelocity through July 31, 2005. This brings over
 20 million customers to HRN from Travelocity and tens of millions of
 additional customers to HRN from Travelocity's partners, which include AOL,
 AOL.com, Yahoo, Netscape, Excite, Lycos and other portals.
     Looking ahead at the balance of the 2001 year, Diener is optimistic.  "We
 are particularly gratified by our ability to control expenses even as our top
 line revenue continues to grow at a rapid pace," he added.  "This will remain
 a primary focus of ours as we target revenues of at least $500 million for
 2001."
     The company provided updated guidance for revenues, EBITDA and adjusted
 earnings per share for the three remaining quarters of 2001 as well as an
 updated revenue and EBITDA outlook for 2002.  For the second quarter of 2001,
 management expects revenues of at least $120.0 million, EBITDA of at least
 $18.0 million, and adjusted earnings per share of at least $0.22.  For the
 third quarter of 2001, management expects revenues of at least $135 million,
 EBITDA of at least $20.0 million, and adjusted earnings per share of at least
 $0.24.  For the fourth quarter of 2001, management expects revenues of at
 least $140.0 million, EBITDA of at least $21.0 million, and adjusted earnings
 per share of at least $0.26.  For the full 2001 year, management expects
 revenues of at least $500 million, EBITDA of at least $74.8 million, and
 adjusted earnings per share of at least $0.92. For the 2002 year, management
 has increased its expectation for full year revenues to at least $700 million,
 EBITDA of at least $105 million and adjusted earnings per share of at least
 $1.20.
     HRN management will discuss its first quarter results and its business
 outlook on a conference call today at 11:00am Eastern Time.  The conference
 call will be webcast live on the Investor Relations section of the company's
 web site at www.hoteldiscount.com , and also at www.streetfusion.com . To
 listen to the call, log on to either web site at least 15 minutes early to
 register, download and install any necessary audio software.  The call will
 also be available via telephone by dialing 703-871-3017.  An audio archive of
 the conference call may be accessed at either web site, and is available by
 phone for the seven days after the conference call by calling 703-925-2435 and
 typing in pass code #5141106.
     Hotel Reservations Network, a majority-owned subsidiary of USA Networks,
 Inc.'s (Nasdaq:   USAI) Information and Services unit, is the number one
 consolidator of discount hotel accommodations worldwide, providing service
 through its own websites ( www.180096hotel.com , www.hoteldiscount.com ,
 www.condosaver.com and www.travelnow.com ), more than 18,600 affiliated
 websites, and several toll-free call centers (1-800-96HOTEL). HRN provides
 travelers with a one-stop shopping source for hotel pricing, amenities and
 availability. HRN also specializes in providing travelers with accommodations
 for sold-out periods in major cities.
     This news release contains "forward-looking statements" within the meaning
 of section 21E of the Securities Exchange Act of 1934, as amended. The company
 has based these forward-looking statements on its current expectations and
 projections about future events, based on the information currently available
 to it. The forward-looking statements include statements relating to the
 company's anticipated financial performance, business prospects, new
 developments, new strategies and similar matters. The following important
 factors, in addition to those described under the section "Risk Factors" in
 the company's Annual Report on Form 10-K for the year ended December 31, 2000
 (which is available upon request from the company or on the company's
 websites, www.hoteldiscount.com and www.180096hotel.com , under the heading
 "Investor Relations") may affect the future results of the company and cause
 those results to differ materially from those expressed in the forward-looking
 statements: material adverse changes in the economic conditions in the
 company's markets; future regulatory actions and conditions in the company's
 operating areas; competition from others; product demand and market
 acceptance; the ability to protect proprietary information and technology or
 to obtain necessary licenses on commercially reasonable terms; and the ability
 to obtain and retain key executives and employees. The company undertakes no
 obligation to publicly update or revise any forward-looking statements,
 whether as a result of new information, future events or any other reason.
 
 
                          Hotel Reservations Network, Inc.
                           Condensed Statement of Income
                                    (Unaudited)
                   (In thousands, except for per share amounts)
 
                                                  Three Months Ended March 31,
 
                                                      2001               2000
 
 
     Revenues                                       $105,286           $55,263
 
     Cost of revenues                                 73,714            38,503
 
     Gross profit                                     31,572            16,760
 
     Operating expenses:
        Selling general & administrative              16,046             8,755
        Amortization of non-cash marketing
         and distribution expenses                     3,931               450
        Amortization of goodwill                      11,000             6,689
     Total operating expenses                         30,977            15,894
 
     Income from operations                              595               866
 
     Interest & other income, net                      2,657             1,029
 
     Income (loss) before income tax                   3,252             1,895
 
     Provision for income tax                          1,406               730
 
     Net Income                                       $1,846            $1,165
 
     Net income per share (basic &
      diluted)                                         $0.03             $0.03
 
     Weighted average shares outstanding
      (basic) (A)                                     55,404            45,412
     Weighted average shares outstanding
      (diluted) (A)                                   56,595            45,611
 
     EBITDA (B)                                      $15,822            $8,176
 
     Adjusted income excluding certain
      Non-Cash charges (C):
 
     Income before income tax                         $3,252            $1,895
     Adjustment for non-cash and non-
      recurring expenses:
        Amortization of goodwill                      11,000             6,689
        Amortization of non-cash marketing
         and distribution expenses                     3,931               450
 
     Total non-cash expenses                          14,931             7,139
 
     Adjusted pre-tax income before non-
      cash expenses                                   18,183             9,034
 
     Provision for income tax                          7,000             3,478
 
     Adjusted net income                             $11,183            $5,556
 
     Adjusted EPS Excluding Certain  Non-
      Cash Charges (basic and diluted) (C)             $0.20             $0.12
 
     Weighted average shares outstanding
      (basic) (A)                                     55,404            45,412
 
     Weighted average shares outstanding
      (diluted) (A)                                   56,595            45,611
 
     Notes:
 
     (A) Weighted average shares outstanding for the calculation of earnings
         per share for the three months ended March 31, 2000 assumed the 38,999
         shares of the Class B Common Stock was outstanding for the entire
         period and the 16,210 shares of  Class A Common Stock and the dilutive
         effect of options and warrants issued at the time of the initial
         public offering (IPO) are weighted for the period from February 25,
         2000 (date of IPO) to March 31, 2000.
 
     (B) EBITDA is defined as earnings before interest, taxes, depreciation and
         amortization.
 
     (C) Adjusted Net Income and Adjusted EPS information is presented for
         informational purposes only and should not be considered as a
         substitute for the historical financial information presented in
         accordance with accounting principles generally accepted in the United
         States.
 
 
                         Hotel Reservations Network, Inc.
                            Selected Balance Sheet Data
                                    (Unaudited)
                                  (In thousands)
 
 
                                                    March 31,         March 31,
                                                      2001              2000
 
 
     Cash & cash equivalents                       $104,200          $104,825
     Short-term investments held for sale            78,704            31,642
     Fixed assets, net                                5,653             2,068
     Accounts payable                                49,332            24,256
     Deferred revenue                                57,657            38,265
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X25315108
 
 SOURCE  Hotel Reservations Network