Erik Blachford JPMorgan Technology and Telecom Conferen May

Erik Blachford JPMorgan Technology and Telecom Conferen May 4, 2004

Important Investor Information Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements anticipating future growth in revenues and operating income before amortization. Words such as “believes, ” “could, ” “expects, ” “anticipates, ” “estimates, ” “intends, ” “plans, ” “projects, ” “seeks, ” or similar expressions used in connection with any discussion of future operating or financial performance identify forward-looking statements. These forward-looking statements are necessarily estimates reflecting the best judgment of IAC’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties are described in IAC’s filings with the U. S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10 -K for the fiscal year ended 2003, especially in the business and the Management’s Discussion and Analysis sections, its Quarterly Reports on Form 10 -Q and its Current Reports on Form 8 -K. Other unknown or unpredictable factors also could have material adverse effects on IAC’s future results, performance or achievements. In light of these risks and uncertainties, the forward-looking events discussed in this presentation may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this presentation. IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this presentation to reflect circumstances existing after the date of this presentation or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Agenda IAC Travel Brands and Strategy Growth Drivers International Packages Corporate Customer Retention IACT’s Merchant Hotel Business Financials "Prepared 5/14/04 - Read Important Disclaimer. "

1. American Express Rosenbluth 2. TUI 3. JTB 4. Carlson Wagonlit 5. IAC Travel 6. My Travel 7. Navigant Travel 8. World Travel BTI 9. Travelocity 10. First Choice 11. Orbitz 12. AAA Travel $20. 1 $19 $13. 5 $12. 5 (est) $10. 5 $7. 1 $5. 3 (est) $3. 9 $3. 8 $3. 4 $3. 2 (est) Source: IACT estimates and company reports – 2003 In billions "Prepared 5/14/04 - Read Important Disclaimer. "

IAC Travel Brand Portfolio $$$$ $ Air tickets Packages Hotel rooms itineraries Simple Rental "Prepared 5/14/04 - Read Important Disclaimer. " Complex Business travel

IACT Portfolio vs. Competitor Brands "Prepared 5/14/04 - Read Important Disclaimer. "

IACT Long Term Revenue Mix Goal Corporat Leisu re US Internation al "Prepared 5/14/04 - Read Important Disclaimer. " e 25 %

IACT Growth Drivers International Packages Corporate Customer retention "Prepared 5/14/04 - Read Important Disclaimer. "

IACT International Presence • 1. 3 billion people • 11 languages • 50% of the non-US travel market "Prepared 5/14/04 - Read Important Disclaimer. "

European Opportunity ($bn) $70 European online travel market 57% Other $60 $50 65% DE $40 $30 37% FR $20 27% UK $10 $0 2002 2003 2004 2005 2006 2007 2008 • Travel growth greater than GDP growth; more flexibility & leisure time, lower costs • Rapid online growth driven by internet adoption and convenience • Germany catches up to UK and France Source: Pho. Cus. Wright 2004 and beyond numbers are projections in online "Prepared 5/14/04 - Read Important Disclaimer. " adoption

Europe Tracking US Growth Trends "Prepared 5/14/04 - Read Important Disclaimer. "

US Europe Hotel market $77 B $137 B Total rooms nights capacity 1. 5 B 1. 7 B Total room nights filled 0. 9 B 1. 2 B 2003 occupancy 60% 71% Average daily rate $85. 38 $114 Number of hotels 50, 000 73, 000 Chain hotels and franchisees 22, 000*. 21, 000* Booked online 13% * Hotels with top 50 brands Source: IACT and industry estimates "Prepared 5/14/04 - Read Important Disclaimer. " 3%

IACT Growth Drivers International Packages Corporate Customer retention "Prepared 5/14/04 - Read Important Disclaimer. "

1. American Express Rosenbluth 2. TUI 3. JTB 4. Carlson Wagonlit 5. IAC Travel 6. My Travel 7. Navigant Travel 8. World Travel BTI 9. Travelocity 10. First Choice 11. Orbitz 12. AAA Travel 13. IACT Packages $20. 1 $19 $13. 5 $12. 5 (est) $10. 5 $7. 1 $5. 3 (est) $3. 9 $3. 8 $3. 4 $3. 2 (est) $2. 0 In Source: IACT estimates and company reports - 2003 billions "Prepared 5/14/04 - Read Important Disclaimer. "

U. S. Packages Market U. S. Tour Business IACT’s Package Business Packages 2% A La Carte 98% Packages 20% A La Carte 80% Source: Pho. Cus. Wright Total U. S. Travel Market $250 Billion "Prepared 5/14/04 - Read Important Disclaimer. "

Classic. Vacations. com "Prepared 5/14/04 - Read Important Disclaimer. "

European Train E-Packages "Prepared 5/14/04 - Read Important Disclaimer. "

In-destination Activity Sales "Prepared 5/14/04 - Read Important Disclaimer. "

IACT Growth Drivers International Packages Corporate Customer retention "Prepared 5/14/04 - Read Important Disclaimer. "

Online Corporate Travel Opportunity 2003 2007 U. S. Travel Market $250 B Managed Corporate$124 B $280 B Online Managed Corporate $8. 7 B $17. 3 B Percent online 7% 12% Source: Forrester and IACT estimates "Prepared 5/14/04 - Read Important Disclaimer. " $140 B

Benefits in lower total cost of Business the old way ownership Expedia Corporate Travel’s Approach Fares, Fees • Agent Salaries • Software Licensing • Add-on Reporting • Manual Policy Enforcement • Training Costs • Time-intensive Fare Search "Prepared 5/14/04 - Read Important Disclaimer. " Fares, Fees • Save an average of $113 per airline ticket • Save up to 50% on hotel rates with ESR • Save up to 80% on transaction fees • No additional hidden fees

ECT – Innovations and upgrades • Unused tickets for travelers • Automated seat search and upgrades "Prepared 5/14/04 - Read Important Disclaimer. "

IACT Growth Drivers International Packages Corporate Customer retention "Prepared 5/14/04 - Read Important Disclaimer. "

Expedia. com Customer Retention New Customer Revenue. Repeat Customer Revenue "Prepared 5/14/04 - Read Important Disclaimer. "

Repeat customers growing 50% 60% 50% 39% 43% 40% 30% 20% 10% Q 1, 02 Q 2, 02 Q 3, 02 Q 4, 02 Q 1, 03 Q 2, 03 Q 3, 03 Q 4, 03 Q 1, Quarter averages of monthly percentages "Prepared 5/14/04 - Read Important Disclaimer. " Expedia. com only

Merchant Hotel Business "Prepared 5/14/04 - Read Important Disclaimer. "

The IAC Merchant Hotel Business § Hotels don’t pay for listings, only for business generated § Customer books via Expedia or § Hotels. com, paying in advance § Compares favorably to risking money on newspaper advertising Hotel’s Potential New Customers Want Choice Travelers § Expedia & Hotels. com pay hotel for room post -checkout § IAC keeps margin 50% of conversion books direct Hotel Direct Loyal Customers Shop Direct 87% First Time Customers Direct Bookings Hotel

Top Hotel Chains on IACT Top 5 Chains Top five hotel chains equal about 20% of merchant hotel revenue. "Prepared 5/14/04 - Read Important Disclaimer. "

U. S. Hotel Occupancy Rates Peak times 100% 90% 80% 70% 60% 50% 40% Low times: hotels need help 30% 20% 10% January February Source: Smith Travel Research "Prepared 5/14/04 - Read Important Disclaimer. " March April

Supplier Share of Online Travel 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 Source: Pho. Cus. Wright "Prepared 5/14/04 - Read Important Disclaimer. " 2001 2002 2003 2004 2005

New York / Las Vegas / Orlando Top 3 U. S. cities hotel revenue as % of IACT revenue "Prepared 5/14/04 - Read Important Disclaimer. "

Same Store / Hotel Sales Increases Q 1, 04 5, 000 4, 500 4, 000 3, 500 3, 000 2, 500 2, 000 1, 500 1, 000 500 0 Q 1, 03 660, 000 room nights from hotels added since Q 1 -03 800, 000 new room nights from hotels under contract in Q 1 -03 Expedia room nights in thousands "Prepared 5/14/04 - Read Important Disclaimer. "

Financials "Prepared 5/14/04 - Read Important Disclaimer. "

Gross Bookings 51% Y/Y $3, 500 $3, 000 $2, 500 $2, 000 Expedia $2, 672 Expedia $1, 802 Hotels $494 $1, 500 $1, 000 $500 $0 Hotels $344 Q 1, 02 Q 2, 02 Q 3, 02 Q 4, 02 Q 1, 03 Q 2, 03 Q 3, 03 Q 4, 03 Q 1, 04 In Millions "Prepared 5/14/04 - Read Important Disclaimer. " $3. 5 B 1 Q 04 vs. $2. 3 B 1 Q 03

Net Revenue $600 $500 $400 $300 41% Y/Y $200 $100 $0 Q 1, 02 Q 2, 02 Q 3, 02 Q 4, 02 Q 1, 03 Q 2, 03 Q 3, 03 Q 4, 03 Q 1, 04 In Millions "Prepared 5/14/04 - Read Important Disclaimer. " $494 M 1 Q 04 vs. $351 M 1 Q 03

Operating Income Before Amortization /Operating $160 Income $140 $120 $100 $80 $60 $40 $20 $0 23% Y/Y In Millions Q 1, 02 Q 2, 02 Q 3, 02 Q 4, 02 Q 1, 03 Q 2, 03 Q 3, 03 Q 4, 03 Q 1, 0 OIBA Operating Income$128 M 1 Q 04 vs. $104 M 1 Q 03 See reconciliation at end of presentation "Prepared 5/14/04 - Read Important Disclaimer. "

Reconciliation of Operating Income Before Amortization to Operating Income Q 102 Q 202 Q 302 Q 402 Q 103 Q 203 Q 303 Q 403 Q 104 Operating Income Before Amortization $ 56 $ 69 Adjustments $ 84 $ 71 $104 $132 $137 $150 $128 24 25 31 22 34 43 57 42 43 Operating Income 32 44 53 49 70 89 80 108 85 Operating Income Before Amortization is defined as operating income plus: (1) amortization of non-cash distribution, marketing and compensation expense, (2) amortization of intangibles and goodwill impairment, if applicable, (3) pro forma adjustments for significant acquisitions and (4) one-time items. We believe this measure is useful to investors because it represents the consolidated operating results from IAC’s segments, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC’s income statement of certain expenses, including non-cash compensation associated with IAC’s employees, non-cash payments to partners, and acquisition related accounting.