LendingTree Posts Record First Quarter 2001 Results, Continuing on Path Toward Profitability

* First quarter revenue a record $12.3 million increases nearly $3

million, or 28%, versus previous quarter and about 200% higher than the

first quarter of 2000.

* EBITDA loss of $7.2 million is favorable to expectations by 27%, or

$0.13 per share, and represents an improvement of 34% versus the

previous quarter and nearly 60% favorable to the first quarter of last

year.

* Value of loans closed through the LendingTree exchange a record $1.8

billion.

* Positive total contribution margin achieved for first time.

* Upward revision to 2001 EBITDA guidance.



Apr 18, 2001, 01:00 ET from LendingTree, Inc.

    CHARLOTTE, N.C., April 18 /PRNewswire/ --
     LendingTree, Inc. (Nasdaq: TREE), the leading online lending exchange and
 technology provider, today announced financial results for its first quarter
 ended March 31, 2001.  During the quarter, LendingTree earned record revenue
 and improved its cash operating loss (EBITDA).  Revenue during the first
 quarter of $12.3 million was nearly $3 million, or 28%, greater than the prior
 quarter and grew nearly 200% higher than the first quarter of 2000.   The
 EBITDA loss of $7.2 million, or $0.36 per share, was favorable to expectations
 by $0.13 per share, or approximately 27%.  The first quarter 2001 EBITDA loss
 was an improvement of 34% versus the previous quarter and nearly 60% favorable
 to the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001023/TREELOGO )
     Doug Lebda, founder and CEO stated, "The volume of loan requests processed
 by the LendingTree exchange in the first quarter was a record of more than
 340,000 transmits, an increase of almost 80% over the fourth quarter 2000 and
 over 150% more than the first quarter volume of the same period last year.  We
 accomplished this despite a 10% reduction in variable marketing cost versus
 the previous quarter.  LendingTree has built the number one brand in online
 lending, and we are now enjoying the rewards of an established brand, which
 means we can spend decreasing amounts of marketing dollars to attract an
 increasing number of customers."
     Keith Hall, senior vice president and CFO of LendingTree added,
 "LendingTree's first quarter financial results achieved our estimates for top
 line growth while exceeding guidance on the bottom line.  Due to the continued
 efficiency in customer acquisition costs, our revenue exceeded variable
 marketing costs by $9.82 per transmitted loan request, which was approximately
 40% greater than anticipated.  In addition, for the first time the LendingTree
 exchange achieved a positive total contribution margin-that is, gross margin
 less variable marketing costs-of approximately $3.00 per transmit.  This means
 that each additional transmitted loan request now begins to offset our
 overhead costs, further reducing our losses.  We achieved this milestone three
 months ahead of plan."
     LendingTree's net loss for the first quarter 2001 was $10.2 million, or
 $0.52 per share, which declined approximately $4.7 million, or 32%, from the
 prior quarter.  The difference between the EBITDA loss in the quarter and the
 net loss is due to depreciation expense, net interest income and non-cash
 compensation charges.
     LendingTree also announced that, at the end of the quarter, the company
 had approximately $16.5 million in cash and had not utilized any of the credit
 or equity lines it had recently arranged.
 
     2001 and Long-Term Business Outlook
     The company also announced revised guidance for the balance of 2001, which
 reduced its previous guidance for an EBITDA loss of $29.6 million to $24.6
 million, or an improvement of 17%.
     Hall continued, "The market potential for online lending is huge.  During
 the quarter, $1.8 billion in loans closed through the LendingTree exchange.
 This represents less than one half of 1% of all consumer loans closed in the
 U.S. during the quarter.  As online lending continues to grow, LendingTree,
 with its number one rating among consumers, is in a strong position to grow
 significantly.  This anticipated growth, our positive contribution margin and
 improving conversion metrics are the key components to LendingTree achieving
 its target of earning a positive EBITDA during the first quarter of 2002 and a
 long-term return on sales of 25 to 30 percent."
     The following information has been revised from previous guidance and is
 based on current expectations.  These statements are forward-looking, and
 actual results may differ materially.  These statements do not reflect the
 potential impact of events that may occur after the date of this release.
 
     (all figures in millions, except % and transmit data)
 
     METRIC           Q1 Actuals       Q2        Q3           Q4    Full Year
     P & L Data:
     Revenue
     Exchange           $11.3        $14.2     $15.8        $14.5       $55.8
     Lend-X Technology  $ 1.0        $ 1.3     $ 1.5        $ 2.3       $ 6.1
     Total Revenue      $12.3        $15.5     $17.3        $16.8       $61.9
     Gross Margin $     $ 8.8        $11.0     $12.2        $11.8       $43.8
     Gross Margin %      71.6%        71.3%     70.5%        70.2%       70.8%
     Cash Operating
       Expense          $16.0        $17.3     $18.2        $16.9       $68.4
     EBITDA             ($7.2)       ($6.3)    ($6.0)       ($5.1)     ($24.6)
 
 
     METRIC          Q1 Actuals        Q2        Q3           Q4    Full Year
     Volume
      Transmitted Loan
       Requests (000's)   344          360       420          330       1,454
     Variable
       Marketing Exp.  $  7.2       $  8.0    $  8.8       $  7.9      $ 31.9
     Revenue Per
       Transmit        $30.80       $36.66    $34.76       $39.70      $35.41
     Variable
       Marketing
        Exp. Per
         Transmit      $20.98       $22.18    $20.95       $23.82      $21.91
     Variable
       Marketing
        Contribution
         Per
          Transmit     $ 9.82       $14.49    $13.81       $15.88      $13.51
     Total
       Contribution
        Margin Per
         Transmit      $ 2.99       $ 6.44    $ 6.19       $ 7.09      $ 5.70
 
     The above statements contained in this Outlook are forward-looking
 statements that involve a number of risks and uncertainties. In addition to
 factors discussed above, among other factors that could cause actual results
 to differ materially are the following: business and economic conditions and
 changes in interest rates; changes in consumer borrowing patterns; and other
 risk factors listed from time to time in the company's SEC reports, including
 but not limited to the report on Form 10-K for the year ended December 31,
 2000.
     Conference Call Information:  LendingTree has scheduled a conference call
 to discuss the company's financial results for the first quarter of 2001 on
 Wednesday, April 18th at 8:30 a.m. EST.  To listen to the conference call,
 please dial 212-346-6519.  A replay of the call will be available starting one
 hour after the completion of the call until 5:00 p.m. EST, April 23, 2001.
 The dial-in number for the replay will be 800-633-8284, Reservation #18592142.
 The conference call will also be available via Webcast at LendingTree.com.
 
     About LendingTree, Inc.
     LendingTree (Nasdaq: TREE) is the leading online lending exchange.
 LendingTree's loan exchange technology, Lend-X(SM), powers the company's
 online loan exchange at LendingTree.com, as well as the online lending
 offerings of other institutions.  At LendingTree.com qualified consumers may
 receive multiple loan offers, within one business day, in response to a single
 loan request for home mortgages, home equity loans, personal loans, automobile
 financing loans, and credit cards.  More than 100 lenders compete for
 consumers' business in the LendingTree exchange at www.lendingtree.com,
 providing consumers with an unprecedented level of control over the lending
 process, by enabling them to compare and review multiple loan offers and
 accept the loan offer that is best for them.  The lenders in the LendingTree
 exchange generate new business that meets their specific underwriting criteria
 at reduced acquisition costs.  For more information or for a full listing of
 the more than 100 lenders in the Lending Tree exchange please go to
 www.lendingtree.com or call 704-541-5351.
 
     About Lend-X(SM)
     Lend-X(SM) is LendingTree's online loan exchange technology that enables
 companies to quickly and easily embed a customized, co-branded or private
 label loan exchange into their site.  Lend-X(SM) technology has the
 flexibility to support different business models, ranging from single-lender
 environment to multi lender exchanges.  Lend-X(SM) provides a fast, adaptable
 and reliable online lending solution for lenders and non-lenders alike with
 valuable access to LendingTree's online lending exchange with more than 100
 banks and lenders.   Lend-X(SM) clients include: Freddie Mac, Bank of America,
 Fleet Bank, priceline.com, Wachovia, S1 Corporation, CNBC.com, Home Account,
 MSN Money Central, AutobyTel.com, Citizens Bank, and Affinity Plus Federal
 Credit Union.
     This press release contains forward-looking statements within the meaning
 of the "Safe Harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  Forward- looking statements include statements regarding:
 projected future revenues; optimism about the results of certain strategic and
 consumer initiatives; product and technological implementations; and projected
 expenditures and growth.  These statements are based on management's current
 expectations or beliefs and are subject to a number of risks and uncertainties
 that could cause actual results to differ materially from those set forth in
 the forward looking statements.  The Company's actual results might differ
 materially from those stated or implied by such forward-looking statements due
 to risks and uncertainties associated with the Company's business, which
 include, but are not limited to: variations in consumer demand or acceptance;
 the willingness of lending institutions to offer their products over the
 Internet; further changes in the Company's relationships with existing
 lenders, companies, and/or strategic partners; the Company's ability to
 attract and integrate new lending companies and strategic partners;
 implementation of competing Internet strategies by existing and potential
 lending participants; implementation and acceptance of new product or service
 offerings, consumer lending industry regulation; competition in all aspects of
 the Company's business; fluctuations in operating results; or other unforeseen
 factors. The forward-looking statements should be considered in the context of
 these and other risk factors disclosed in the Company's filings with the
 Securities and Exchange Commission.
 
 
 
                                LendingTree, Inc.
                Operating Statistics by Marketing Channel
                  For the Quarter Ended March 31, 2001
 
                                                           Cross-sell/
                           LT.com   Lend-X/B2B  Affiliates   Other    Total
 
         Revenue (in $000's)
      Network Revenue      $ 8,048     $ 1,135     $  703  $1,358 (a) $11,244
      Lend-X Technology
       Revenue                   0       1,012          0       0       1,012
      Total Revenue        $ 8,048     $ 2,147     $  703  $1,358     $12,256
 
     Marketing & Advertising
       Variable Marketing
       & Advertising
       Costs (in $000s) (b)$ 5,771     $986.36 (c) $  458  $    0     $ 7,215
 
          Volume
      Loan Requests
       Transmitted         247,002      53,455 (c) 43,535       0     343,992
 
        Average Per Transmit
      Average Network
       Revenue per
       Transmit            $ 32.58     $  9.07 (c) $16.15   $3.95     $ 30.80
      Variable Marketing &
       Advertising Cost
       per Transmit        $ 23.36     $ 18.45     $10.52   $0.00     $ 20.98
      Variable Marketing
       Contribution Margin
       per Transmit        $  9.22     ($ 9.38)    $ 5.63   $3.95     $  9.82
 
 
     (a) Includes Credit Card Cross-sell Fees, Set-up Fees, and Adaptive
         Marketing Fees.
 
     (b) Variable Marketing & Advertising includes working media advertising,
         affiliate network costs and Lend-X network costs.
 
     (c) Variable marketing costs, loan requests transmitted and average
         network revenue per transmit excludes Lend-X revenue derived from
         Affinity Partners.
 
 
                               LendingTree, Inc.
                              Operating Statistics
                      For the Quarter Ended March 31, 2001
 
                                            LendingTree.com and Lend-X Network
                                            Mortgage     Home Equity     Auto
                    Volume
        Loan Requests Transmitted:
          Number                               158,180      48,033      49,050
        Volume of Loan Requests
        (in $ millions)                       $ 27,343     $ 2,086    $    926
 
        Loans Closed in Q1 2001
          Number                                 5,592       9,300       4,821
          Volume of Loans Funded
         (in $ millions)                      $  1,075     $   435    $     96
 
 
                 Conversion Rates
        Transmit Rate                            53.2%        75.8%       37.9%
 
        Static Pool Close Rate
        (Quarterly Average)(b)                    6.6%        24.4%       15.3%
 
               Revenue (in $000's)
        Network Revenue                        $ 4,776     $ 3,316     $   664
        Lend-X Technology Revenue
        Total Revenue                          $ 4,776     $ 3,316     $   664
 
        Average Network Revenue per
         Transmit                              $ 30.19     $ 69.04     $ 13.53
 
                    Other Data
        Number of Lenders                           82          71          12
 
 
 
                            LendingTree, Inc.
                           Operating Statistics
                   For the Quarter Ended March 31, 2001
 
                                       LendingTree.com and Lend-X Network
                                          Credit Card   Personal     Total
                      Volume
        Loan Requests Transmitted:
        Number                              68,492       20,237    343,992
        Volume of Loan Requests
        (in $ millions)                   $    342      $   249   $ 30,946
 
 
        Loans Closed in Q1 2001
        Number                              42,881 (a)   1,442      64,036
        Volume of Loans Funded
        (in $ millions)                   $    214 (a)  $   15    $  1,836
 
 
                 Conversion Rates
        Transmit Rate                         94.1%       27.2%       46.1%
 
        Static Pool Close Rate (Quarterly
         Average)(b)                           5.2% (c)   15.4%       10.3%
 
               Revenue (in $000's)
        Network Revenue                    $ 1,342 (a)  $  188     $11,244 (d)
        Lend-X Technology Revenue                                     1,012
        Total Revenue                      $ 1,342      $  188     $12,256
 
        Average Network Revenue per
         Transmit                          $ 19.59      $ 9.31     $ 30.80
 
                    Other Data
        Number of Lenders                       17          14         121 (e)
        Number of Employees                                            221
 
 
 
     (a) Includes credit card cross-sell activity.
 
     (b) The static pool close rate incorporates the average time lag between
         the submission of a loan request (a "QF") and the closure of a loan.
         It represents the closure rate of approved QFs from a static pool of
         requests submitted in the most recent month with a complete closure
         cycle.
         A static pool is considered to have a complete closure cycle after
         120 days from the month in which a mortgage QF was submitted,
         90 days after a home equity QF was submitted, 60 days after an auto
         or personal QF was submitted, and less than 30 days after a credit
         card
         QF was submitted.
 
     (c) The close rate for credit cards represents the percentage of cards
         transmitted via the Network that resulted in card issuances in the
         fourth quarter (excluding credit card cross-sell activity).
 
     (d) Total Network Revenue does not add across as the total includes Set-
         Up Fees, Adaptive Marketing Fees and Realty Services Revenue.
     (e) Number of Lenders do not add across because a lender can offer
         multiple loan products.  The total lender number is the discrete
         number of LendingTree Network participants.
 
 
                               LendingTree, Inc.
                            Statements of Operations
 
 
 
                                                For the Months Ended March 31,
                                                         2000          2001
                                        ($ in thousands, except per share data)
 
     Revenue:
      Network                                       $   4,373      $  11,244
      Lend-X technology                                   110          1,012
       Total revenue                                    4,483         12,256
     Cost of revenue:
      Network                                           1,536          3,036
      Lend-X technology                                   127            450
       Total cost of revenue                            1,663          3,486
     Gross profit:
      Network                                           2,837          8,208
      Lend-X technology                                   (17)           562
       Total gross profit                               2,820          8,770
     Operating expenses:
      Product development                                 515          1,085
      Marketing and advertising                        14,886          8,874
      Sales, general and administrative                 5,186          9,093
       Total operating expenses                        20,587         19,052
     Loss from operations                             (17,767)       (10,282)
     Miscellaneous expense, net                            --             (3)
     Interest income, net                                 537            118
     Net loss                                         (17,230)       (10,167)
     Accretion of mandatorily redeemable preferred stock   --            (18)
     Accumulated, undeclared dividends on
      mandatorily redeemable preferred stock               --            (55)
     Dividends on convertible preferred stock          (2,461)            --
 
     Net loss attributable to common shareholders    $(19,691)      $(10,240)
 
     Net loss per common share - basic and diluted   $  (2.07)      $  (0.52)
     Weighted average shares used in basic and diluted
      net loss per common share calculation             9,525         19,838
 
     Other Information:
      Certain non-cash charges:
      Depreciation and amortization                       113          1,930
      Non-cash compensation charges                       493          1,130
      Operating loss before depreciation, amortization
       and non-cash compensation charges              (17,161)        (7,222)
 
 

SOURCE LendingTree, Inc.
    CHARLOTTE, N.C., April 18 /PRNewswire/ --
     LendingTree, Inc. (Nasdaq: TREE), the leading online lending exchange and
 technology provider, today announced financial results for its first quarter
 ended March 31, 2001.  During the quarter, LendingTree earned record revenue
 and improved its cash operating loss (EBITDA).  Revenue during the first
 quarter of $12.3 million was nearly $3 million, or 28%, greater than the prior
 quarter and grew nearly 200% higher than the first quarter of 2000.   The
 EBITDA loss of $7.2 million, or $0.36 per share, was favorable to expectations
 by $0.13 per share, or approximately 27%.  The first quarter 2001 EBITDA loss
 was an improvement of 34% versus the previous quarter and nearly 60% favorable
 to the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001023/TREELOGO )
     Doug Lebda, founder and CEO stated, "The volume of loan requests processed
 by the LendingTree exchange in the first quarter was a record of more than
 340,000 transmits, an increase of almost 80% over the fourth quarter 2000 and
 over 150% more than the first quarter volume of the same period last year.  We
 accomplished this despite a 10% reduction in variable marketing cost versus
 the previous quarter.  LendingTree has built the number one brand in online
 lending, and we are now enjoying the rewards of an established brand, which
 means we can spend decreasing amounts of marketing dollars to attract an
 increasing number of customers."
     Keith Hall, senior vice president and CFO of LendingTree added,
 "LendingTree's first quarter financial results achieved our estimates for top
 line growth while exceeding guidance on the bottom line.  Due to the continued
 efficiency in customer acquisition costs, our revenue exceeded variable
 marketing costs by $9.82 per transmitted loan request, which was approximately
 40% greater than anticipated.  In addition, for the first time the LendingTree
 exchange achieved a positive total contribution margin-that is, gross margin
 less variable marketing costs-of approximately $3.00 per transmit.  This means
 that each additional transmitted loan request now begins to offset our
 overhead costs, further reducing our losses.  We achieved this milestone three
 months ahead of plan."
     LendingTree's net loss for the first quarter 2001 was $10.2 million, or
 $0.52 per share, which declined approximately $4.7 million, or 32%, from the
 prior quarter.  The difference between the EBITDA loss in the quarter and the
 net loss is due to depreciation expense, net interest income and non-cash
 compensation charges.
     LendingTree also announced that, at the end of the quarter, the company
 had approximately $16.5 million in cash and had not utilized any of the credit
 or equity lines it had recently arranged.
 
     2001 and Long-Term Business Outlook
     The company also announced revised guidance for the balance of 2001, which
 reduced its previous guidance for an EBITDA loss of $29.6 million to $24.6
 million, or an improvement of 17%.
     Hall continued, "The market potential for online lending is huge.  During
 the quarter, $1.8 billion in loans closed through the LendingTree exchange.
 This represents less than one half of 1% of all consumer loans closed in the
 U.S. during the quarter.  As online lending continues to grow, LendingTree,
 with its number one rating among consumers, is in a strong position to grow
 significantly.  This anticipated growth, our positive contribution margin and
 improving conversion metrics are the key components to LendingTree achieving
 its target of earning a positive EBITDA during the first quarter of 2002 and a
 long-term return on sales of 25 to 30 percent."
     The following information has been revised from previous guidance and is
 based on current expectations.  These statements are forward-looking, and
 actual results may differ materially.  These statements do not reflect the
 potential impact of events that may occur after the date of this release.
 
     (all figures in millions, except % and transmit data)
 
     METRIC           Q1 Actuals       Q2        Q3           Q4    Full Year
     P & L Data:
     Revenue
     Exchange           $11.3        $14.2     $15.8        $14.5       $55.8
     Lend-X Technology  $ 1.0        $ 1.3     $ 1.5        $ 2.3       $ 6.1
     Total Revenue      $12.3        $15.5     $17.3        $16.8       $61.9
     Gross Margin $     $ 8.8        $11.0     $12.2        $11.8       $43.8
     Gross Margin %      71.6%        71.3%     70.5%        70.2%       70.8%
     Cash Operating
       Expense          $16.0        $17.3     $18.2        $16.9       $68.4
     EBITDA             ($7.2)       ($6.3)    ($6.0)       ($5.1)     ($24.6)
 
 
     METRIC          Q1 Actuals        Q2        Q3           Q4    Full Year
     Volume
      Transmitted Loan
       Requests (000's)   344          360       420          330       1,454
     Variable
       Marketing Exp.  $  7.2       $  8.0    $  8.8       $  7.9      $ 31.9
     Revenue Per
       Transmit        $30.80       $36.66    $34.76       $39.70      $35.41
     Variable
       Marketing
        Exp. Per
         Transmit      $20.98       $22.18    $20.95       $23.82      $21.91
     Variable
       Marketing
        Contribution
         Per
          Transmit     $ 9.82       $14.49    $13.81       $15.88      $13.51
     Total
       Contribution
        Margin Per
         Transmit      $ 2.99       $ 6.44    $ 6.19       $ 7.09      $ 5.70
 
     The above statements contained in this Outlook are forward-looking
 statements that involve a number of risks and uncertainties. In addition to
 factors discussed above, among other factors that could cause actual results
 to differ materially are the following: business and economic conditions and
 changes in interest rates; changes in consumer borrowing patterns; and other
 risk factors listed from time to time in the company's SEC reports, including
 but not limited to the report on Form 10-K for the year ended December 31,
 2000.
     Conference Call Information:  LendingTree has scheduled a conference call
 to discuss the company's financial results for the first quarter of 2001 on
 Wednesday, April 18th at 8:30 a.m. EST.  To listen to the conference call,
 please dial 212-346-6519.  A replay of the call will be available starting one
 hour after the completion of the call until 5:00 p.m. EST, April 23, 2001.
 The dial-in number for the replay will be 800-633-8284, Reservation #18592142.
 The conference call will also be available via Webcast at LendingTree.com.
 
     About LendingTree, Inc.
     LendingTree (Nasdaq: TREE) is the leading online lending exchange.
 LendingTree's loan exchange technology, Lend-X(SM), powers the company's
 online loan exchange at LendingTree.com, as well as the online lending
 offerings of other institutions.  At LendingTree.com qualified consumers may
 receive multiple loan offers, within one business day, in response to a single
 loan request for home mortgages, home equity loans, personal loans, automobile
 financing loans, and credit cards.  More than 100 lenders compete for
 consumers' business in the LendingTree exchange at www.lendingtree.com,
 providing consumers with an unprecedented level of control over the lending
 process, by enabling them to compare and review multiple loan offers and
 accept the loan offer that is best for them.  The lenders in the LendingTree
 exchange generate new business that meets their specific underwriting criteria
 at reduced acquisition costs.  For more information or for a full listing of
 the more than 100 lenders in the Lending Tree exchange please go to
 www.lendingtree.com or call 704-541-5351.
 
     About Lend-X(SM)
     Lend-X(SM) is LendingTree's online loan exchange technology that enables
 companies to quickly and easily embed a customized, co-branded or private
 label loan exchange into their site.  Lend-X(SM) technology has the
 flexibility to support different business models, ranging from single-lender
 environment to multi lender exchanges.  Lend-X(SM) provides a fast, adaptable
 and reliable online lending solution for lenders and non-lenders alike with
 valuable access to LendingTree's online lending exchange with more than 100
 banks and lenders.   Lend-X(SM) clients include: Freddie Mac, Bank of America,
 Fleet Bank, priceline.com, Wachovia, S1 Corporation, CNBC.com, Home Account,
 MSN Money Central, AutobyTel.com, Citizens Bank, and Affinity Plus Federal
 Credit Union.
     This press release contains forward-looking statements within the meaning
 of the "Safe Harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  Forward- looking statements include statements regarding:
 projected future revenues; optimism about the results of certain strategic and
 consumer initiatives; product and technological implementations; and projected
 expenditures and growth.  These statements are based on management's current
 expectations or beliefs and are subject to a number of risks and uncertainties
 that could cause actual results to differ materially from those set forth in
 the forward looking statements.  The Company's actual results might differ
 materially from those stated or implied by such forward-looking statements due
 to risks and uncertainties associated with the Company's business, which
 include, but are not limited to: variations in consumer demand or acceptance;
 the willingness of lending institutions to offer their products over the
 Internet; further changes in the Company's relationships with existing
 lenders, companies, and/or strategic partners; the Company's ability to
 attract and integrate new lending companies and strategic partners;
 implementation of competing Internet strategies by existing and potential
 lending participants; implementation and acceptance of new product or service
 offerings, consumer lending industry regulation; competition in all aspects of
 the Company's business; fluctuations in operating results; or other unforeseen
 factors. The forward-looking statements should be considered in the context of
 these and other risk factors disclosed in the Company's filings with the
 Securities and Exchange Commission.
 
 
 
                                LendingTree, Inc.
                Operating Statistics by Marketing Channel
                  For the Quarter Ended March 31, 2001
 
                                                           Cross-sell/
                           LT.com   Lend-X/B2B  Affiliates   Other    Total
 
         Revenue (in $000's)
      Network Revenue      $ 8,048     $ 1,135     $  703  $1,358 (a) $11,244
      Lend-X Technology
       Revenue                   0       1,012          0       0       1,012
      Total Revenue        $ 8,048     $ 2,147     $  703  $1,358     $12,256
 
     Marketing & Advertising
       Variable Marketing
       & Advertising
       Costs (in $000s) (b)$ 5,771     $986.36 (c) $  458  $    0     $ 7,215
 
          Volume
      Loan Requests
       Transmitted         247,002      53,455 (c) 43,535       0     343,992
 
        Average Per Transmit
      Average Network
       Revenue per
       Transmit            $ 32.58     $  9.07 (c) $16.15   $3.95     $ 30.80
      Variable Marketing &
       Advertising Cost
       per Transmit        $ 23.36     $ 18.45     $10.52   $0.00     $ 20.98
      Variable Marketing
       Contribution Margin
       per Transmit        $  9.22     ($ 9.38)    $ 5.63   $3.95     $  9.82
 
 
     (a) Includes Credit Card Cross-sell Fees, Set-up Fees, and Adaptive
         Marketing Fees.
 
     (b) Variable Marketing & Advertising includes working media advertising,
         affiliate network costs and Lend-X network costs.
 
     (c) Variable marketing costs, loan requests transmitted and average
         network revenue per transmit excludes Lend-X revenue derived from
         Affinity Partners.
 
 
                               LendingTree, Inc.
                              Operating Statistics
                      For the Quarter Ended March 31, 2001
 
                                            LendingTree.com and Lend-X Network
                                            Mortgage     Home Equity     Auto
                    Volume
        Loan Requests Transmitted:
          Number                               158,180      48,033      49,050
        Volume of Loan Requests
        (in $ millions)                       $ 27,343     $ 2,086    $    926
 
        Loans Closed in Q1 2001
          Number                                 5,592       9,300       4,821
          Volume of Loans Funded
         (in $ millions)                      $  1,075     $   435    $     96
 
 
                 Conversion Rates
        Transmit Rate                            53.2%        75.8%       37.9%
 
        Static Pool Close Rate
        (Quarterly Average)(b)                    6.6%        24.4%       15.3%
 
               Revenue (in $000's)
        Network Revenue                        $ 4,776     $ 3,316     $   664
        Lend-X Technology Revenue
        Total Revenue                          $ 4,776     $ 3,316     $   664
 
        Average Network Revenue per
         Transmit                              $ 30.19     $ 69.04     $ 13.53
 
                    Other Data
        Number of Lenders                           82          71          12
 
 
 
                            LendingTree, Inc.
                           Operating Statistics
                   For the Quarter Ended March 31, 2001
 
                                       LendingTree.com and Lend-X Network
                                          Credit Card   Personal     Total
                      Volume
        Loan Requests Transmitted:
        Number                              68,492       20,237    343,992
        Volume of Loan Requests
        (in $ millions)                   $    342      $   249   $ 30,946
 
 
        Loans Closed in Q1 2001
        Number                              42,881 (a)   1,442      64,036
        Volume of Loans Funded
        (in $ millions)                   $    214 (a)  $   15    $  1,836
 
 
                 Conversion Rates
        Transmit Rate                         94.1%       27.2%       46.1%
 
        Static Pool Close Rate (Quarterly
         Average)(b)                           5.2% (c)   15.4%       10.3%
 
               Revenue (in $000's)
        Network Revenue                    $ 1,342 (a)  $  188     $11,244 (d)
        Lend-X Technology Revenue                                     1,012
        Total Revenue                      $ 1,342      $  188     $12,256
 
        Average Network Revenue per
         Transmit                          $ 19.59      $ 9.31     $ 30.80
 
                    Other Data
        Number of Lenders                       17          14         121 (e)
        Number of Employees                                            221
 
 
 
     (a) Includes credit card cross-sell activity.
 
     (b) The static pool close rate incorporates the average time lag between
         the submission of a loan request (a "QF") and the closure of a loan.
         It represents the closure rate of approved QFs from a static pool of
         requests submitted in the most recent month with a complete closure
         cycle.
         A static pool is considered to have a complete closure cycle after
         120 days from the month in which a mortgage QF was submitted,
         90 days after a home equity QF was submitted, 60 days after an auto
         or personal QF was submitted, and less than 30 days after a credit
         card
         QF was submitted.
 
     (c) The close rate for credit cards represents the percentage of cards
         transmitted via the Network that resulted in card issuances in the
         fourth quarter (excluding credit card cross-sell activity).
 
     (d) Total Network Revenue does not add across as the total includes Set-
         Up Fees, Adaptive Marketing Fees and Realty Services Revenue.
     (e) Number of Lenders do not add across because a lender can offer
         multiple loan products.  The total lender number is the discrete
         number of LendingTree Network participants.
 
 
                               LendingTree, Inc.
                            Statements of Operations
 
 
 
                                                For the Months Ended March 31,
                                                         2000          2001
                                        ($ in thousands, except per share data)
 
     Revenue:
      Network                                       $   4,373      $  11,244
      Lend-X technology                                   110          1,012
       Total revenue                                    4,483         12,256
     Cost of revenue:
      Network                                           1,536          3,036
      Lend-X technology                                   127            450
       Total cost of revenue                            1,663          3,486
     Gross profit:
      Network                                           2,837          8,208
      Lend-X technology                                   (17)           562
       Total gross profit                               2,820          8,770
     Operating expenses:
      Product development                                 515          1,085
      Marketing and advertising                        14,886          8,874
      Sales, general and administrative                 5,186          9,093
       Total operating expenses                        20,587         19,052
     Loss from operations                             (17,767)       (10,282)
     Miscellaneous expense, net                            --             (3)
     Interest income, net                                 537            118
     Net loss                                         (17,230)       (10,167)
     Accretion of mandatorily redeemable preferred stock   --            (18)
     Accumulated, undeclared dividends on
      mandatorily redeemable preferred stock               --            (55)
     Dividends on convertible preferred stock          (2,461)            --
 
     Net loss attributable to common shareholders    $(19,691)      $(10,240)
 
     Net loss per common share - basic and diluted   $  (2.07)      $  (0.52)
     Weighted average shares used in basic and diluted
      net loss per common share calculation             9,525         19,838
 
     Other Information:
      Certain non-cash charges:
      Depreciation and amortization                       113          1,930
      Non-cash compensation charges                       493          1,130
      Operating loss before depreciation, amortization
       and non-cash compensation charges              (17,161)        (7,222)
 
 SOURCE  LendingTree, Inc.