Dara Khosrowshahi EVP & Chief Financial Officer Deutsche Bank Media Conference June 9, 2004.

Dara KhosrowshahiEVP & Chief Financial Officer

Deutsche Bank Media ConferenceJune 9, 2004

Prepared 6/9/04 with minor subsequent edits - Read important disclaimer(s)

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ImportantSafe 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 Risk Factors 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.


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Supplying Demand

Customer data includes duplication.

$60 Billion

40 mm Active CUSTOMERS

180 mm TRANSACTIONS

Thousands of PRODUCTS & SERVICES

140,000 SUPPLY PARTNERS


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Adding Value

Choice / Product DepthConvenience / Ease of Use

Great Values

Information / Relevance

Exclusivity / Uniqueness

CONSUMERS

Customer Acquisition

Multiple Distribution Channels

Market Segmentation

Marketing StrengthYield Management

SUPPLIERS

Leading Brands

Innovation & Technology

Scale

Merchandising

Capital

IAC aggregates


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Operating Multiple BrandsElectronic Retailing Ticketing

IAC Local & Media Services

Financial Services & Real EstatePersonals

IAC Travel


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Delivering Strong Results LTM

$1,813 revenue$548 OIBA

30% margin

Segment results for last twelve months (Q2 ’03 – Q1 ’04). IAC Travel revenue as if Hotels.com on net basis.

$2,288 revenue$202 OIBA

9% margin

$750 revenue$150 OIBA

20% margin


18% margin

$ in millions


8% margin

$161 revenue $21 OIBA

13% margin

Electronic Retailing TicketingIAC Travel




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Leading the Market

$2T market$53B online; $6B TV

28% share of TV

#2

$28B market$3B online

66% share online

#1


20% share online

#1

$1.5B market$450M online

30% share online

#1


$5T market$185B online

20% share online

#2Ticketing includes event and movie ticketing. Data based on Jupiter and IAC estimates. Local includes

directional advertising (newspapers, yellow pages, and coupons) only; excludes local TV/radio.





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Mining Big Opportunities

• Online migration• Corporate• International• Destination

services

• Close gap w/ QVC• Multi-channel• Turnaround

Germany

• Unsold tickets• Box office share• Direct marketing• International

• 90 mm singles• Matching

technology• International• Social networking

• Search• Pay for

performance• Digital offers

• Online migration• Real estate• New products





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Travel


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IACT Portfolio

PackagesComplex itinerariesBusiness travel

Air ticketsHotel roomsRental cars

$$$$

$Simple Complex


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IACT Portfolio vs. Competitors


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IACT is Outpacing the Market$ in millions

Gross Bookings

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04

Expedia

TravelocityOrbitz

Hotels.comPricelineTrip Network


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U.S. Hotel Occupancy Rates

Source: Smith Travel Research

35%

50%

65%

80%

Jan Feb Mar Apr May

2003 2004

Peak times

Low times: hotels need help


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IACT Key Challenges

Occupancy rates Marketing costs Pricing Raw margins


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$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Worldwide Opportunity

Global Travel+ Tourism

Travel

Destination Services

Travel


Travel


$2.6 trillion

Travel


Travel


Travel

DestinationServices

U.S.

$220 billion

Global

Europe

Other

US

Europe

Other

US

$850 billion

Europe

Other

US

Europe

Other

US

Europe

Other

US

Europe

Other

U.S.


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U.S. (Jan ‘98 - Dec ‘00) Europe (Jan ‘02 - Mar ‘04)

Gross Bookings

Europe is Tracking the U.S.$ in millions


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IACT Waves of Growth

20022002Domestic

20042004Europe

20052005Corporate

20062006Classic

20072007Asia


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Integrating Naturally

Exp

edia

Hot

els.

com

Hot

wir

e

City

sear

ch

EP

I

Tri

pAdv

isor

Per

sona

ls

Tic

ketin

g

Expedia

Hotels.com

Hotwire

Citysearch

EPI

TripAdvisor

Personals

Ticketing


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Integrating Naturally

$58mm intra-IACT in Q1 $75mm in sourcing savings over 3 yrs. Best practices

Paid search marketing Credit fraud protection Information technology

People movement Shared learning & expertise


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Growth

Goods

Travel

Ticketing Financial & Realty

xPersonals Local Services

$2,000

$550

$280

$130

$100

$524

$223

$144

2003OIBA = $860

5-Year OIBA Goal = $3,000

CAGR Goal

$150

25% to 35%

20% to 25%

15% to 20%80% to 90%25% to 30%45% to 50%

2003 and 2008 total OIBA is after corporate and other expenses.

$ in millions


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IAC’s Competitive Advantage 43 leading brands Strong balance sheet Ability to invest aggressively in new

growth areas Shared learning and natural

relationships across Businesses Diversity & reduced volatility

Harnessing the power of interactivity to make people’s lives easier,

everywhere and everyday.


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Reconciliations$ in millionsRECONCILIATION OF LTM OPERATING INCOME BEFORE AMORTIZATION TO OPERATING INCOME

IAC Local & FinancialElectronic Media Services &

IAC Travel Retailing Ticketing Personals Services Real Estate

Operating Income Before Amortization 548$ 202$ 150$ 35$ 19$ 21$ Amortization and merger costs (186) (53) (27) (18) (57) (25) Operating Income 362$ 148$ 123$ 16$ (38)$ (4)$

Operating Income margin 20% 6% 16% 8% -15% -3%

LTM results for Financial Services and Real Estate include LendiingTree as of Q1 2003.

RECONCILIATION OF 2003 AND 2008 OPERATING INCOME BEFORE AMORTIZATION TO OPERATING INCOME

IAC Travel Electronic Retailing Ticketing2003 2008 2003 2008 2003 2008

Operating Income Before Amortization 524$ 2,000$ 201$ 550$ 145$ 280$ Amortization and merger costs (177) (38) (52) (1) (28) (12)

Operating Income 347$ 1,962$ 149$ 549$ 117$ 268$

Personals Local Services Financial Services & Real Estate2003 2008 2003 2008 2003 2008

Operating Income Before Amortization 31$ 100$ 26$ 150$ 1$ 130$ Amortization and merger costs (17) - (56) (5) (18) (8)

Operating Income 14$ 100$ (29)$ 145$ (17)$ 122$

Teleservices Corporate and Other Total IAC2003 2008 2003 2008 2003 2008

Operating Income Before Amortization 13$ 35$ (80)$ (210)$ 860$ 3,000$ Amortization and merger costs - - (113) (111) (460) (176)

Operating Income 13$ 35$ (193)$ (321)$ 400$ 2,824$

Dara Khosrowshahi EVP & Chief Financial Officer Deutsche Bank Media Conference June 9, 2004.

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