Exhibit 99.1
Press Release of Expedia
Expedia, Inc. Closes Acquisitions of Travelscape.com, Inc. and VacationSpot.com,
Inc.
Lodging Acquisitions Provide Expedia Customers With Access to Lowest Prices and
Widest Selection on the Internet
BELLEVUE, Wash., March 21 /PRNewswire/ -- Expedia(R), Inc. (Nasdaq: EXPE - news)
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today announced that on March 17, 2000, it closed the acquisitions of two
leading players in the Internet lodging industry, Travelscape.com, Inc. and
VacationSpot.com, Inc. The acquisitions firmly position Expedia as the leader in
Internet lodging with 65,000 lodging properties worldwide, guaranteed lowest
hotel rates in 240 cities, and a combined run rate of approximately 2 million
room nights per year.
In the two separate transactions Expedia, Inc. has acquired:
-- Travelscape.com, Inc. -- the leading branded Internet hotel wholesaler
and packager with discounted rate contracts at over 1,400 hotels in
240 cities worldwide, operating the Travelscape.com
( http://www.travelscape.com ) website. By contracting with hotel
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properties for inventory at wholesale prices, the company is able to
offer customers guaranteed lowest prices and discounts of up to 70%.
Travelscape.com also offers savings on a wide variety of air and hotel
packages.
-- VacationSpot.com, Inc. -- the leading reservation network for vacation
homes, rental condos, inns and bed & breakfasts around the world,
operating the VacationSpot.com ( http://www.vacationspot.com ) and
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Rent-a-Holiday.com ( http://www.rent-a-holiday.com ) websites. The
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company's websites offer over 25,000 unique properties in more than
4,000 vacation destinations and more than 100 countries worldwide.
VacationSpot.com offers property managers easy-to-use infrastructure
to make their lodging inventory instantly bookable online.
"The lodging industry represents an enormous opportunity for Expedia," said
Richard Barton, president and CEO of Expedia, Inc. "To date, finding a hotel,
vacation rental, or condominium online has been a complex process. With the
addition of Travelscape.com, Inc. and VacationSpot.com, Inc. to the existing
Expedia hotel business we are able to simplify their search for the perfect
place to stay and provide our customers with a range of options that is
unparalleled on or off the Internet."
Terms
Expedia, Inc. has issued approximately 2.6 million shares and options in
exchange for all of the outstanding shares, options and warrants of
VacationSpot.com, Inc. As of December 31, 1999, VacationSpot.com, Inc. had a
cash position of approximately $10 million. Expedia, Inc. has issued
approximately 3.0 million shares, options and warrants, in exchange for all
outstanding shares, options and warrants of Travelscape.com, Inc. Expedia is
also assuming and retiring
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long-term debt of approximately $8 million as part of the Travelscape.com, Inc.
acquisition. As of December 31, 1999, Travelscape.com, Inc. had a cash position
of approximately $4 million. Expedia, Inc. expects to incur total transaction
expenses of approximately $4 million in connection with these acquisitions. The
company will account for the transactions under the purchase method of
accounting.
About Expedia, Inc.
Expedia, Inc. operates the Expedia.com(TM) online travel service in the United
States with localized versions for travelers in Canada, Germany and the United
Kingdom. To help customers Travel Right, Expedia provides the best combination
of air, car, and hotel booking, vacation package and cruise offers, destination
information, and point-to-point mapping. According to Media Metrix, Expedia.com
was the most visited travel website for February 2000 with more than 5.3 million
unique visitors.
This press release contains forward-looking statements relating to future events
or future financial performance that involve risks and uncertainties. Such
statements can be identified by terminology such as "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"potential" or "continue" or the negative of such terms or comparable terms.
These statement are only predictions and actual results could differ materially
from those anticipated in these statements based upon a number of factors
including final adjustments made in closing the quarter and those identified in
the Company's filings with the SEC.
For investor information about Expedia, Inc: http://investor.expedia.com, or
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call the Company's Investor Relations team at 425-564-7233.
NOTE: Expedia and Expedia.com are either registered trademarks or trademarks of
Expedia, Inc. in the U.S. and Canada.
SOURCE: Expedia, Inc.
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