Expedia.com Expedia, Inc. completes acquisition of Classic Custom Vacations

BELLEVUE, Washington – March 11, 2002 – Expedia, Inc. (NASDAQ: EXPE) announced today that it completed its acquisition of substantially all the assets of Classic Custom Vacations, a subsidiary of Classic Vacation Group, Inc. (AMEX: CLV) for an aggregate purchase price of about $48 million, plus the assumption of approximately $30 million in liabilities. The acquired liabilities are principally working capital accounts, such as customer deposits, which are expected to require little or no additional funding by Expedia®.
As part of the acquisition process, last month Expedia purchased the outstanding debt of CVG with $47 million in proceeds from the sale of 936,815 Expedia common shares to USA Networks, Inc. Expedia purchased the assets of CCV for approximately $1 million in cash plus the cancellation of the outstanding CVG debt. Expedia’s cash payment was reduced from the earlier estimate of $5 million as CVG retained approximately $4 million in cash originally expected to be part of the acquisition.

Classic Custom Vacations is a leading wholesaler of premier vacation packages to Hawaii, Mexico, North America, Europe and the Caribbean. Expedia intends to continue selling vacations through traditional travel agents under its subsidiary, Classic Custom Vacations, Inc.

“This acquisition broadens Expedia’s presence in the overall travel market and expands its position as both a merchant of travel inventory and a marketer of vacation packages,” said Richard N. Barton, president and chief executive officer of Expedia, Inc. “Expedia will bring to Classic the financial and technological resources to provide even better service to its travel agents, who in turn will be able to better serve their clients.”

About Expedia, Inc.

Expedia, Inc. is the world’s leading online travel service and the seventh largest travel agency in the United States. 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 is a majority-owned subsidiary of USA Networks, Inc.’s (NASDAQ: USAI) Interactive Group.

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Expedia, Expedia.com, and the airplane logo are either registered trademarks or trademarks of Expedia, Inc. in the United States, Canada and/or other countries. Other products and company names mentioned herein may be trademarks of their respective owners.
For more information, press only: For Expedia: Darcy Bretz, Edelman Public Relations, (312) 240-2619 darcy.bretz@edelman.com

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