Press Release: Hotel Reservations Network
November 2, 2001
DALLAS, TX -- Hotel Reservations Network (Nasdaq: ROOM), the leading provider of discount hotel rooms worldwide,
yesterday announced that it has completed the acquisition of AceNet Travel Network LLC (``AceNet'') for an undisclosed
cash amount. The transaction was structured as a purchase of LLC membership interests from the company's founders.
The company will operate as a wholly owned subsidiary of HRN.
AceNet specializes in selling discounted hotel rooms in Atlantic City, New Jersey. Like HRN, AceNet sells to consumers
through its own websites (including www.acenethotels.com and several others), through its call center, and through
third-party affiliated websites. Though the company is less than two years old, it is profitable and growing rapidly.
The company is the largest seller of discounted hotel rooms in the Atlantic City market.
David Litman, Chairman and Chief Executive Officer of HRN, commented, ``We have repeatedly stated our interest
in selectively acquiring companies that are closely related to our core business of selling hotel rooms. AceNet
is an excellent example of the type of company that appeals to us, and we are very pleased that they have decided
to become part of Hotel Reservations Network. The founders, Jon Talese and John Jackson, have excellent reputations
within the hotel industry, both in Atlantic City and nationally, and they have a track record of success. We expect
them to make big contributions to the future growth of Hotel Reservations Network.''
Bob Diener, President of HRN, stated, ``The acquisition of AceNet is a strategic step for HRN as it will strengthen
HRN's position in the market. Also, Atlantic City is a strong drive-to market, since more than 95% of consumers
that visit Atlantic City drive or take other forms of land transportation. Consequently, business in Atlantic City
for AceNet and HRN rebounded very quickly after September 11th, and we expect our future growth there to be strong.''
Hotel Reservations Network, a majority-owned subsidiary of USA Networks, Inc.'s (Nasdaq: USAI) Interactive Group,
is the number one provider of discount hotel accommodations worldwide, providing service through its own Web sites
( www.180096hotel.com , www.hoteldiscount.com , www.condosaver.com , www.travelnow.com and www.allluxuryhotels.com
), several company-operated toll-free call centers (1-800-96HOTEL), and nearly 23,000 affiliated Web sites and
third-party call centers. 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.
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.
SOURCE: Hotel Reservations Network