Erik Blachford

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Pacific Crest Technology Forum August 10, 2004
Erik Blachford CEO, IAC Travel
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Important Investor Information

• Safe Harbor Statement Under The Private
  Securities Litigation Reform Act Of 1995
  
•   
• This presentation contains forward-looking
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  Securities Litigation Reform Act of 1995,
  particularly statements anticipating future
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  uncertainties are described in IACs 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 Managements Discussion and
  Analysis sections, its Quarterly Reports on Form
  10-Q and its Current Reports on Form 8-K. Other
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  which speak only as of the date stated, or if no
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•  
• IAC is not under any obligation and does not
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•  

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IACT Key Trends in Q2
IACT Q2 2004 Operating income Before Amortization
of 170.6 mm operating income of 129.3 mm,
less amortization and merger costs of 41.2 mm.
Also excluded from above Operating income Before
Amortization of 165 mm is 6.4 mm in expense
reversal.
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Online Penetration of U.S. Leisure and Unmanaged
Business Travel
Total Market Size 2003 150B 2010 209B
75 - 156B
24 or35BOnline in 2003
IACTExpectation
Online as of Total Market
50 - 104B
Source Jupiter and IACT estimates. Market size
is represented by gross bookings.
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Conversion Trend
Expedia.com Merchant Hotel Reservations/Unique
User
2003
2004
2002
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U.S. Hotel Occupancy Rates
Peak times
Low times hotels need help
Source Smith Travel Research
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Online Penetration of European Travel Market
Total Market Size 2003 350B 2010 450B
50 - 225B
Online as of Total Market
4 or14BOnline in 2003
IACTExpectation
30 - 135B
Source Jupiter and IACT estimates. Market size
is represented by gross bookings.

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Europe Tracking US Growth Trends
Expedia.com Gross Bookings Jan. 98 Dec. 00
IACT Online Europe Gross Bookings Jan. 02 Jun.
04

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