Expedia, Inc.'s Statement on USA Interactive's Announced Intention to Make An Exchange Offer for Expedia's Remaining Shares

Press Release: Expedia, Inc.
June 4, 2002
BELLEVUE, WA -- Expedia, Inc.'s (Nasdaq: EXPE) Board of Directors received a letter from its majority shareholder, USA Interactive (Nasdaq: USAI), announcing USA's intention to make an exchange offer in the near future for the shares of Expedia® that it does not currently own. The Expedia Board of Directors is forming a special committee of independent directors which will assess USA's announcement and any related offer to determine whether it is in the best interests of Expedia's shareholders.

"We've received the letter stating USA's intention to make an offer and are forming a special committee of independent directors to evaluate that offer on behalf of our shareholders," said Richard Barton, president and CEO of Expedia, Inc.

About Expedia, Inc.

Expedia, Inc. is the world's leading online travel service and was the seventh largest travel agency in the United States in the most recent agency rankings. To meet the needs of travelers around the globe, it operates Expedia.com in the United States and localized versions throughout Europe and Canada. Expedia operates Classic Custom Vacations, Inc., a leading wholesaler of premiere vacation packages to destinations such as Hawaii, Mexico, Europe and the Caribbean. Travelscape, Inc., wholly owned by Expedia, also operates as WWTE, a private-label online travel business that supplies car and hotel inventory to third parties. Expedia is a majority-owned subsidiary of USA Networks, Inc.'s Interactive Group.

NOTE: Expedia, Expedia.com and the Expedia logo are either registered trademarks or trademarks of Expedia, Inc. in the U.S., Canada and/or other countries. The names of actual companies and products mentioned herein may be trademarks of their respective owners.

SOURCE: Expedia, Inc.