LONG Elong ADS Representing 2 Ordinary Shares (MM)

IAC/InterActiveCorp Announces eLong Warrant Exercise IAC Increases Its Stake in eLong to 52%; Aggregate Investment of Approximately $167 Million NEW YORK, Dec. 16 /PRNewswire-FirstCall/ -- IAC/InterActiveCorp (NASDAQ:IACI) today announced that it has exercised a warrant to purchase approximately 17.4 million shares of high-vote ordinary stock of eLong, Inc. (NASDAQ:LONG), a leading online travel service provider in China, for an estimated cash purchase price of approximately $108 million. The number of shares and purchase price are subject to adjustment following exercise pursuant to the terms of the related warrant agreement. IAC acquired the warrant in connection with its initial investment in eLong in August 2004, in which IAC invested $58.7 million. (Logo: http://www.newscom.com/cgi-bin/prnh/20031105/NYW076LOGO ) Following the completion of this purchase, which is expected to occur in January 2005, IAC will own approximately 52% of the outstanding capital stock of eLong (on a fully diluted basis), representing approximately 96% of the total voting power of eLong. IAC's investment in eLong will continue to be managed by IAC Travel -- Asia Pacific, a division of IAC Travel, and its financial results will be consolidated with those of IAC, as part of IAC Travel, following the completion of the purchase. As a result of this exercise, IAC has the right to designate four additional members for appointment to eLong's Board of Directors. The four IAC designees appointed are: Mike Doyle, Chief Financial Officer, IAC Travel -- Asia Pacific; Dermot Halpin, Managing Director, Expedia UK; Cameron Jones, Director, Hotels and Destination Services, IAC Travel -- Asia Pacific; and Arthur Hoffman, Managing Director, Expedia Australia. Following these appointments, six of the 11 members of eLong's Board of Directors will be IAC designees. "eLong is leading a dramatic transformation in the way that travel is planned and purchased in China," said Barney Harford, President, IAC Travel -- Asia Pacific. "We are delighted to be deepening our relationship with eLong, and we are excited by the opportunity this provides us to embrace the growth potential of the Chinese travel market. China represents an $87 billion travel and tourism market opportunity today, forecast to grow to more than $300 billion by 2014*." About eLong, Inc. Founded in 1999, eLong is an independent travel service company headquartered in Beijing with a national presence across China. The Company uses web-based distribution technologies and a 24-hour nationwide call center to provide consumers with consolidated travel information and the ability to access hotel reservations at discounted rates at over 2,600 hotels in major cities across China. The Company also offers air ticketing and other travel related services, such as rental cars, vacation packages and corporate travel services. eLong operates the websites http://www.elong.com/ and http://www.elong.net/. About IAC/InterActiveCorp IAC/InterActiveCorp (NASDAQ:IACI) operates leading and diversified businesses in sectors being transformed by the internet, online and offline... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. IAC consists of IAC Travel, which includes Expedia, Hotels.com, Hotwire, Interval International, Classic Custom Vacations and Expedia Corporate Travel; HSN; Ticketmaster, which oversees ReserveAmerica; Match.com; Precision Response Corporation; IAC Local and Media Services, which includes Citysearch, Evite, Entertainment Publications, TripAdvisor and ServiceMagic; IAC Financial Services and Real Estate, which includes LendingTree, RealEstate.com, GetSmart, and Domania; and IAC Interactive Development which includes ZeroDegrees. http://iac.com/ Contact Information: IAC Corporate Communications Deborah Roth (212) 314-7254 or David Dennis (425) 679-7430 IAC Investor Relations Roger Clark / Lauren Porat (212) 314-7400 *Source: Personal Travel, Tourism and Business Travel estimates, 2004 Travel & Tourism Economic Research Report, World Travel & Tourism Council (WTTC) Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995 This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to IAC's and eLong's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity, actions and initiatives by current and potential competitors, the effect of current and future legislation or regulation, the ability to expand our reach into international markets, and certain other additional factors described in IAC's and eLong's respective filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on IAC's and eLong's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward- looking events discussed in this press release 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 press release. 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 press release to reflect circumstances existing after the date of this press release 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. http://www.newscom.com/cgi-bin/prnh/20031105/NYW076LOGO http://photoarchive.ap.org/ DATASOURCE: IAC/InterActiveCorp CONTACT: Deborah Roth, +1-212-314-7254, David Dennis, +1-425-679-7430, Investors: Roger Clark, or Lauren Porat, +1-212-314-7400 Web site: http://www.iac.com/ http://www.elong.com/

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