<Page>
EXHIBIT 99.2
PRICELINE.COM REPORTS 2nd QUARTER 2003 FINANCIAL RESULTS
2nd QUARTER NET INCOME IS $7.7 MILLION, OR $0.20 PER SHARE
Hotel service sells record 1.5 million room nights;
room nights sold up 38% year over year
NORWALK, Conn., July 24, 2003 . . . Priceline.com(R) (Nasdaq: PCLN)
today reported 2nd quarter 2003 net income of $7.7 million, or $0.20 per
share, on revenues of $239.6 million. Gross travel bookings, which refers to
the total dollar value (inclusive of taxes and fees) of all travel products
purchased by consumers, for the 2nd quarter were $297.1 million.
Priceline.com's 2nd quarter EPS exceeded First Call analyst consensus of
$0.14 per share, and came in ahead of priceline.com's previously announced
target range of $0.12 to $0.18 per share.
By comparison, in the 2nd quarter 2002, priceline.com had net income of $6.3
million, or $0.16 per share, on revenues of $304.5 million. Priceline.com's
gross margin for the 2nd quarter 2003 was 16.9 percent, compared to 15.8
percent a year ago and 16.5 percent for the 1st quarter 2003. Priceline.com
ended the 2nd quarter 2003 with $149.2 million in cash and short-term
investments. The Company has no debt. During the 2nd quarter, priceline.com
effected a 1-for-6 reverse stock split.
By the end of the 2nd quarter, priceline.com's customer base grew to 17.8
million, which represents growth of approximately 22 percent over the past year.
Repeat business for the quarter was 67.1 percent. (Repeat business is defined as
the number of unique purchase offers coming from repeat customers divided by the
number of total unique purchase offers).
"Priceline.com's stronger than expected 2nd quarter results were attributable to
several factors, including strong hotel, rental car and package results, a
stabilization of our airline tickets business bolstered by improved leisure
travel demand and growing sales of retail tickets, and contribution from our
mortgage business," said priceline.com President and Chief Executive Officer
Jeffery H. Boyd.
During the 2nd quarter, priceline.com sold approximately 1.5 million hotel
room nights, adding sequentially approximately 270,000 additional room nights
from the 1st quarter. Hotel unit sales increased approximately 38 percent
year over year, an increase over the 35 percent year-over-year growth rate
experienced in the 1st quarter. "We believe the growing popularity of our
hotel product is due to the success of our marketing campaign and the
superior room inventory and pricing we receive from our hotel partners, which
translates into savings that are better than those found on other leading
travel sites, often by as much as 40 percent or more," said Mr. Boyd.
Priceline.com's combined merchant and agency airline ticket gross bookings
increased 16 percent sequentially in the 2nd quarter as the result of a
slight sequential increase in opaque tickets sold and continued strong growth
in retail ticket sales. The rental car business added over 192,000 rental car
days sequentially in the 2nd quarter and unit sales were up 4 percent
compared to 2nd quarter 2002. Package unit sales increased over 100 percent
over last year's 2nd quarter. Finally, total agency (retail) bookings were
$30 million in the 2nd quarter, up 44 percent sequentially and an increase of
$26 million over 2nd quarter 2002.
Priceline.com expects that growing retail bookings will be enhanced by its
recent acquisition of Rentalcars.com and the offering of Travelweb LLC retail
hotel inventory on Lowestfare.com, priceline.com's other retail site. "Retail
bookings are growing as we add to our array of retail products and this
trend, together with improved merchant margins, pushed priceline.com's total
gross margins to a record 16.9 percent in the 2nd quarter," said Mr. Boyd.
"Retail will continue to be an important part of our business, as it allows
us to satisfy unbound Name Your Own Price(R) customers, offer a broad
assortment of travel products when opaque inventories are constrained and
appeal generally to a broader addressable consumer marketplace."
The 2nd quarter 2003 benefited from $1.1 million of other income, which
reflected a contribution from pricelinemortgage. That contribution was offset
partially by early stage losses in Travelweb LLC, of which priceline.com is a
part-owner. Pricelinemortgage had positive results in the quarter due to the
continued attractive economic climate for refinancing, home equity loans and
first-time mortgages. The mortgage
<Page>
business, which priceline.com jointly owns with First Alliance Bank, enables
consumers to choose from sample rates or set their own terms, and guarantees
that customers will get the best publicly available rate.
Looking forward, Mr. Boyd said, "Priceline.com's 3rd quarter got off to a
strong start in July, buoyed by strong seasonal leisure travel demand. Due to
the accelerating growth experienced in our hotel and rental car businesses so
far this month, we expect to achieve July revenues of approximately $93 to
$95 million. We also expect year-over-year growth in hotel unit sales in the
3rd quarter at least equal to the 38 percent experienced in the 2nd quarter
and we expect year-over-year growth in rental car unit sales to exceed that
38 percent rate. We now anticipate top-line revenue growth for the 3rd
quarter of approximately 5 percent year-over-year, with targeted net income
per share of $0.20 to $0.22. This target exceeds the current First Call
analyst consensus of $0.15 per share. Net income applicable to common
stockholders will be reduced by a non-cash preferred stock dividend of an
estimated $0.03 per share in the 3rd quarter. For the 4th quarter, we are
targeting a year-over-year revenue increase of approximately 5-10 percent and
EPS of $0.08 to $0.12 per share, which also is above First Call analyst
consensus of $0.07 per share."
ABOUT PRICELINE.COM
Priceline.com offers products for sale in two categories: a travel service that
offers leisure airline tickets, hotel rooms, rental cars, packaged vacations and
cruises; and a personal finance service that offers home mortgages, refinancing
and home equity loans through an independent licensee. Priceline.com also owns
travel Web sites Lowestfare.com and Rentalcars.com. Priceline.com is part-owner
of Internet travel service Travelweb LLC. Priceline.com licenses its business
model to independent licensees, including pricelinemortgage and certain
international licensees.
###
For press information, contact: Brian Ek 203-299-8167 (brian.ek@priceline.com)
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict; therefore,
actual results may differ materially from those expressed, implied or forecasted
in any such forward-looking statements. Expressions of future goals and similar
expressions including, without limitation, "may," "will," "should," "could,"
"expects," "does not currently expect," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "targets," or "continue," reflecting
something other than historical fact are intended to identify forward-looking
statements. The following factors, among others, could cause the Company's
actual results to differ materially from those described in the forward-looking
statements: adverse changes in general market conditions for leisure and other
travel products as the result of, among other things, terrorist attacks; adverse
changes in the Company's relationships with airlines and other product and
service providers including, without limitation, the withdrawal of suppliers
from the priceline.com system; the bankruptcy or insolvency of another major
domestic airline; the effects of increased competition; systems-related failures
and/or security breaches; the Company's ability to protect its intellectual
property rights; losses by the Company and its licensees; final adjustments made
in closing the quarter; legal and regulatory risks and the ability to attract
and retain qualified personnel. For a detailed discussion of these and other
factors that could cause the Company's actual results to differ materially from
those described in the forward-looking statements, please refer to the Company's
most recent Form 10-Q, Form 10-K and Form 8-K filings with the Securities and
Exchange Commission. Unless required by law, the Company undertakes no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
This supplement is unaudited and intended as a supplement to, and should be
read in conjunction with, the Company's audited financial statements and the
notes thereto filed with the SEC on Form 10-K and quarterly financial
statements filed with the SEC on Form 10-Q. Certain data have been
reclassified in order to conform historical information in a manner
consistent with current presentation and has not been audited in this form.
Certain presentations within this supplement are not consistent with
Generally Accepted Accounting Principles.
<Page>
PRICELINE.COM INCORPORATED
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, UNAUDITED)
<Table>
<Caption>
JUNE 30, DECEMBER 31,
ASSETS 2003 2002
------------ ------------
Current assets:
Cash and cash equivalents $ 69,292 $ 67,182
Restricted cash 16,869 18,248
Short-term investments 62,992 64,154
Accounts receivable, net of allowance for doubtful accounts of $1,256 and
$1,262 at June 30, 2003 and December 31, 2002 23,565 13,636
Prepaid expenses and other current assets 8,158 6,348
------------ ------------
Total current assets 180,876 169,568
Property and equipment, net 16,106 21,413
Goodwill 10,517 10,517
Other assets 21,507 9,664
------------ ------------
Total assets $ 229,006 $ 211,162
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 46,863 $ 35,375
Accrued expenses 23,296 27,889
Other current liabilities 2,134 2,063
------------ ------------
Total current liabilities 72,293 65,327
Long-term accrued expenses 276 715
------------ ------------
Total liabilities 72,569 66,042
------------ ------------
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK 13,470 13,470
Stockholders' equity
Common stock 303 1,884
Treasury stock (338,410) (338,410)
Additional paid-in capital 2,048,785 2,033,944
Deferred compensation (1,619) -
Accumulated deficit (1,566,208) (1,565,869)
Accumulated other comprehensive income:
Cumulative currency translation adjustment 116 101
------------ ------------
Total stockholders' equity 142,967 131,650
------------ ------------
Total liabilities and stockholders' equity $ 229,006 $ 211,162
============ ============
</Table>
<Page>
PRICELINE.COM INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
------------ ------------ ----------- ------------
Merchant revenues $ 236,943 $ 302,670 $ 435,551 $ 562,337
Agency revenues 1,476 211 2,481 429
Other revenues 1,147 1,575 2,021 3,575
------------ ------------ ----------- ------------
Total revenues 239,566 304,456 440,053 566,341
Cost of merchant revenues 199,072 255,972 366,572 475,483
Cost of agency revenues - - - -
Cost of other revenues - 336 - 717
------------ ------------ ----------- ------------
Total costs of revenues 199,072 256,308 366,572 476,200
------------ ------------ ----------- ------------
Gross profit 40,494 48,148 73,481 90,141
------------ ------------ ----------- ------------
Operating expenses:
Advertising 10,774 12,777 21,872 23,004
Sales and marketing 9,000 11,813 17,064 22,377
General and administrative, including option
payroll taxes of $102 and $16 for the three months
ended June 30, 2003 and 2002, respectively, and
$102 and $120 for the six months ended June 30,
2003 and 2002, respectively 6,106 7,559 12,674 14,046
Stock based compensation 70 250 70 500
Systems and business development 5,578 6,275 10,508 12,603
Depreciation and amortization 2,787 4,490 6,699 8,948
Special charge (reversal) - (200) - (200)
Restructuring charge (reversal) - - - (824)
Severance charge (reversal) - (55) - (55)
Warrant costs - - 6,638 -
------------ ------------ ----------- ------------
Total operating expenses 34,315 42,909 75,525 80,399
------------ ------------ ----------- ------------
Operating income (loss) 6,179 5,239 (2,044) 9,742
Other income:
Interest income 405 788 897 1,570
Equity in income of investees, net 1,105 245 1,105 737
Other - 37 - 1
------------ ------------ ----------- ------------
Total other income 1,510 1,070 2,002 2,308
------------ ------------ ----------- ------------
Net income (loss) 7,689 6,309 (42) 12,050
Preferred stock dividend - - (297) (1,854)
------------ ------------ ----------- ------------
Net income (loss) applicable to common
stockholders $ 7,689 $ 6,309 $ (339) $ 10,196
============ ============ =========== ============
Net income (loss) applicable to common
stockholders per basic common share $ 0.20 $ 0.16 $ (0.01) $ 0.27
============ ============ =========== ============
Weighted average number of basic common shares
outstanding (1) 37,635 38,280 37,556 38,099
============ ============ =========== ============
Net income (loss) applicable to common
stockholders per diluted common share $ 0.20 $ 0.16 $ (0.01) $ 0.26
============ ============ =========== ============
Weighted average number of diluted common shares
outstanding (1) 39,284 39,917 37,556 39,924
============ ============ =========== ============
</Table>
(1) REFLECTS ONE-FOR-SIX REVERSE STOCK SPLIT
<Page>
[PRICELINE.COM LOGO]
PRICELINE.COM INCORPORATED - 2003 SECOND QUARTER FINANCIAL DATA SUPPLEMENT
<Table>
<Caption>
PAGE NUMBER
-----------
PRICELINE.COM FINANCIALS
Consolidated Statements of Operations 1
priceline.com Europe Ltd. Statement of Operations 2
Consolidated Balance Sheets 3
GROSS BOOKINGS 4
OFFER AND CUSTOMER ACTIVITY 5
PRODUCT DETAIL
Air 6
Hotels 7
Rental Cars 8
</Table>
THIS SUPPLEMENT IS UNAUDITED AND INTENDED AS A SUPPLEMENT TO, AND SHOULD BE READ
IN CONJUNCTION WITH, THE COMPANY'S AUDITED FINANCIAL STATEMENTS AND THE NOTES
THERETO FILED WITH THE SEC ON FORM 10-K AND QUARTERLY FINANCIAL STATEMENTS FILED
WITH THE SEC ON FORM 10-Q. CERTAIN DATA HAVE BEEN RECLASSIFIED IN ORDER TO
CONFORM HISTORICAL INFORMATION IN A MANNER CONSISTENT WITH CURRENT PRESENTATION
AND HAS NOT BEEN AUDITED IN THIS FORM. CERTAIN PRESENTATIONS WITHIN THIS
SUPPLEMENT ARE NOT CONSISTENT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
<Page>
PRICELINE.COM INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
(UNAUDITED)
<Table>
<Caption>
INCOME STATEMENT ANALYSIS 1Q02 2Q02 3Q02 4Q02 1Q03
- ------------------------- ------------ ------------ ------------ ------------ ------------
Merchant revenues $ 259,667 $ 302,670 $ 237,961 $ 195,814 $ 198,608
Agency revenues 218 211 160 131 1,005
Other revenues 2,000 1,575 1,843 1,356 874
------------ ------------ ------------ ------------ ------------
Total revenues 261,885 304,456 239,964 197,301 200,487
Cost of merchant revenues 219,511 255,972 201,949 166,710 167,500
Cost of agency revenues - - - - -
Cost of other revenues 381 336 274 107 -
------------ ------------ ------------ ------------ ------------
Total costs of revenues 219,892 256,308 202,223 166,817 167,500
------------ ------------ ------------ ------------ ------------
Gross profit $ 41,993 $ 48,148 $ 37,741 $ 30,484 $ 32,987
------------ ------------ ------------ ------------ ------------
Operating expenses:
Advertising 10,227 12,777 11,649 10,011 11,098
Sales and marketing 10,564 11,813 9,145 6,555 8,064
General and administrative 6,383 7,543 7,218 7,027 6,568
Option payroll taxes 104 16 - - -
Stock based compensation 250 250 250 250 -
Systems and business development 6,328 6,275 5,529 5,550 4,930
Depreciation and amortization 4,458 4,490 4,850 4,466 3,912
Special charge/(reversal) - (200) - - -
Restructuring charge/(reversal) (824) - (92) 4,654 -
Severance charge/(reversal) - (55) - - -
Impairment charge - - 24,229 - -
Warrant costs - - - - 6,638
------------ ------------ ------------ ------------ ------------
Total operating expenses $ 37,490 $ 42,909 $ 62,778 $ 38,513 $ 41,210
Operating income (loss) $ 4,503 $ 5,239 $ (25,037) $ (8,029) $ (8,223)
Other income (expenses):
Interest income 782 788 656 617 492
Equity in income of investees, net 492 245 394 - -
Other (36) 37 164 1 -
------------ ------------ ------------ ------------ ------------
Total other income $ 1,238 $ 1,070 $ 1,214 $ 618 $ 492
Net income (loss) $ 5,741 $ 6,309 $ (23,823) $ (7,411) $ (7,731)
Preferred stock dividend (1,854) - (490) - (297)
------------ ------------ ------------ ------------ ------------
Net income (loss) applicable to common
stockholders $ 3,887 $ 6,309 $ (24,313) $ (7,411) $ (8,028)
============ ============ ============ ============ ============
Net income (loss) applicable to common
stockholders per basic common share $ 0.10 $ 0.16 $ (0.64) $ (0.20) $ (0.21)
============ ============ ============ ============ ============
Net income (loss) applicable to common
stockholders per diluted common share $ 0.10 $ 0.16 $ (0.64) $ (0.20) $ (0.21)
============ ============ ============ ============ ============
(1) Weighted average common shares:
Basic 37,917 38,280 37,879 37,452 37,477
Diluted 39,995 39,917 37,879 37,452 37,477
Common shares outstanding, end of period 38,257 38,298 37,451 37,452 37,495
GROSS MARGIN 16.0% 15.8% 15.7% 15.5% 16.5%
<Caption>
2Q03 VS. 6 MONTHS 6 MONTHS 6 MOS. 2003 VS.
INCOME STATEMENT ANALYSIS 2Q03 2Q02 2003 2002 6 MOS. 2002
- ------------------------- ------------ ------------ ------------ ------------ ---------------
Merchant revenues $ 236,943 -22% $ 435,551 $ 562,337 -23%
Agency revenues 1,476 600% 2,481 429 478%
Other revenues 1,147 -27% 2,021 3,575 -43%
------------ ------------ ------------ ------------
Total revenues 239,566 -21% 440,053 566,341 -22%
Cost of merchant revenues 199,072 -22% 366,572 475,483 -23%
Cost of agency revenues - - - - -
Cost of other revenues - -100% - 717 -100%
------------ ------------ ------------ ------------
Total costs of revenues 199,072 -22% 366,572 476,200 -23%
------------ ------------ ------------ ------------
Gross profit $ 40,494 -16% $ 73,481 $ 90,141 -18%
------------ ------------ ------------ ------------
Operating expenses:
Advertising 10,774 -16% 21,872 23,004 -5%
Sales and marketing 9,000 -24% 17,064 22,377 -24%
General and administrative 6,004 -20% 12,572 13,926 -10%
Option payroll taxes 102 538% 102 120 -15%
Stock based compensation 70 -72% 70 500 -86%
Systems and business development 5,578 -11% 10,508 12,603 -17%
Depreciation and amortization 2,787 -38% 6,699 8,948 -25%
Special charge/(reversal) - -100% - (200) -100%
Restructuring charge/(reversal) - - - (824) -100%
Severance charge/(reversal) - -100% - (55) -100%
Impairment charge - - - - -
Warrant costs - - 6,638 - -
------------ ------------ ------------ ------------
Total operating expenses $ 34,315 -20% $ 75,525 $ 80,399 -6%
Operating income (loss) $ 6,179 18% $ (2,044) $ 9,742 -121%
Other income (expenses):
Interest income 405 -49% 897 1,570 -43%
Equity in income of investees, net 1,105 351% 1,105 737 50%
Other - -100% - 1 -100%
------------ ------------ ------------ ------------
Total other income $ 1,510 41% $ 2,002 $ 2,308 -13%
Net income (loss) $ 7,689 22% $ (42) $ 12,050 -100%
Preferred stock dividend - - (297) (1,854) -84%
------------ ------------ ------------ ------------
Net income (loss) applicable to common
stockholders $ 7,689 22% $ (339) $ 10,196 -103%
============ ============ ============ ============
Net income (loss) applicable to common
stockholders per basic common share $ 0.20 25% $ (0.01) $ 0.27 104%
============ ============ ============ ============
Net income (loss) applicable to common
stockholders per diluted common share $ 0.20 25% $ (0.01) $ 0.26 104%
============ ============ ============ ============ ============
(1) Weighted average common shares:
Basic 37,635 -2% 37,556 38,099 -1%
Diluted 39,284 -2% 37,556 39,924 -6%
Common shares outstanding, end of period 37,925 -1% 37,925 38,298 -1%
GROSS MARGIN 16.9% 16.7% 15.9%
</Table>
(1) Reflects one-for-six reverse stock split.
Page 1
<Page>
PRICELINE.COM EUROPE LTD.
STATEMENTS OF OPERATIONS (1)
In thousands, except per share data
(UNAUDITED)
<Table>
<Caption>
INCOME STATEMENT ANALYSIS 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03
- ------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Merchant revenues $ 3,075 $ 3,180 $ 2,909 $ 1,894 $ 1,102 $ 957
Agency revenues 1 - - - 39 35
Other revenues 14 - - - - -
---------- ---------- ---------- ---------- ---------- ----------
Total revenues 3,090 3,180 2,909 1,894 1,141 992
Cost of merchant revenues 2,647 2,882 2,574 1,644 971 850
Cost of agency revenues - - - - - -
Cost of other revenues - - - - - -
---------- ---------- ---------- ---------- ---------- ----------
Total costs of revenues 2,647 2,882 2,574 1,644 971 850
---------- ---------- ---------- ---------- ---------- ----------
Gross profit $ 443 $ 298 $ 335 $ 250 $ 170 $ 142
---------- ---------- ---------- ---------- ---------- ----------
Operating expenses:
Advertising 36 301 245 272 63 22
Sales and marketing 317 298 324 300 117 99
General and administrative 1,140 957 1,393 1,129 640 552
Systems and business development 675 495 510 460 146 52
Depreciation and amortization 184 174 175 177 27 -
Restructuring charge - - - 1,790 - -
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses $ 2,352 $ 2,225 $ 2,647 $ 4,128 $ 993 $ 725
Operating loss $ (1,909) $ (1,927) $ (2,312) $ (3,878) $ (823) $ (583)
Other income:
Interest income 6 4 6 3 1 2
Other - - 1 - - -
---------- ---------- ---------- ---------- ---------- ----------
Total other income $ 6 $ 4 $ 7 $ 3 $ 1 $ 2
Net loss $ (1,903) $ (1,923) $ (2,305) $ (3,875) $ (822) $ (581)
========== ========== ========== ========== ========== ==========
Net loss per parent basic and diluted share $ (0.05) $ (0.05) $ (0.06) $ (0.10) $ (0.02) $ (0.02)
========== ========== ========== ========== ========== ==========
(2) Weighted average common shares:
Basic 37,917 38,280 37,879 37,452 37,477 37,635
Diluted 39,995 39,917 37,879 37,452 37,477 39,284
---------- ---------- ---------- ---------- ---------- ----------
GROSS MARGIN 14.3% 9.4% 11.5% 13.2% 14.9% 14.3%
<Caption>
2Q03 VS. 6 MONTHS 6 MONTHS 6 MOS. 2003 VS.
INCOME STATEMENT ANALYSIS 2Q02 2003 2002 6 MOS. 2002
- ------------------------- ---------- ---------- ---------- ---------------
Merchant revenues -70% $ 2,059 $ 6,255 -67%
Agency revenues - 74 1 7300%
Other revenues - - 14 -100%
---------- ----------
Total revenues -69% 2,133 6,270 -66%
Cost of merchant revenues -71% 1,821 5,529 -67%
Cost of agency revenues - - - -
Cost of other revenues - - - -
---------- ----------
Total costs of revenues -71% 1,821 5,529 -67%
---------- ----------
Gross profit -52% $ 312 $ 741 -58%
---------- ----------
Operating expenses:
Advertising -93% 85 337 -75%
Sales and marketing -67% 216 615 -65%
General and administrative -42% 1,192 2,097 -43%
Systems and business development -89% 198 1,170 -83%
Depreciation and amortization -100% 27 358 -92%
Restructuring charge - - - -
---------- ----------
Total operating expenses -67% $ 1,718 $ 4,577 -62%
Operating loss -70% $ (1,406) $ (3,836) -63%
Other income:
Interest income -50% 3 10 -70%
Other - - - -
---------- ----------
Total other income -50% $ 3 $ 10 -70%
Net loss -70% $ (1,403) $ (3,826) -63%
========== ==========
Net loss per parent basic and diluted share -60% $ (0.04) $ (0.10) -60%
========== ==========
(2) Weighted average common shares:
Basic -2% 37,556 38,099 -1%
Diluted -2% 37,556 39,924 -6%
---------- ----------
GROSS MARGIN 14.6% 11.8%
</Table>
(1) Does not include certain intercompany consolidation adjustments.
(2) Reflects one-for-six reverse stock split.
Page 2
<Page>
PRICELINE.COM INCORPORATED
CONSOLIDATED BALANCE SHEETS
IN THOUSANDS
(UNAUDITED)
<Table>
<Caption>
ASSETS 3/31/2002 6/30/2002 9/30/2002
----------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 92,051 $ 98,140 $ 66,857
Restricted cash 17,454 19,573 18,174
Short-term investments 68,327 62,458 67,478
Accounts receivable, net of allowance for doubtful accounts 20,218 21,977 16,654
Prepaid expenses and other current assets 10,544 8,640 9,068
----------- ----------- -----------
Total current assets 208,594 210,788 178,231
PROPERTY AND EQUIPMENT, net 31,291 28,205 25,279
GOODWILL 22,535 22,535 10,517
OTHER ASSETS 19,731 20,606 9,791
----------- ----------- -----------
TOTAL ASSETS $ 282,151 $ 282,134 $ 223,818
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 62,177 $ 55,422 $ 40,972
Accrued expenses 31,750 32,318 25,861
Other current liabilities 5,050 4,954 3,495
----------- ----------- -----------
Total current liabilities 98,977 92,694 70,328
Long-term accrued expenses 2,365 1,483 1,001
----------- ----------- -----------
Total liabilities 101,342 94,177 71,329
----------- ----------- -----------
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK 13,470 13,470 13,470
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 1,880 1,882 1,884
Treasury stock (326,633) (326,633) (338,410)
Additional paid-in capital 2,032,547 2,033,313 2,033,938
Deferred compensation - - -
Accumulated deficit (1,540,455) (1,534,145) (1,558,458)
Accumulated other comprehensive income:
Cumulative currency translation adjustment - 70 65
----------- ----------- -----------
Total stockholders' equity 167,339 174,487 139,019
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,151 $ 282,134 $ 223,818
=========== =========== ===========
<Caption>
ASSETS 12/31/2002 3/31/2003 6/30/2003
----------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 67,182 $ 52,560 $ 69,292
Restricted cash 18,248 17,025 16,869
Short-term investments 64,154 70,194 62,992
Accounts receivable, net of allowance for doubtful accounts 13,636 16,106 23,565
Prepaid expenses and other current assets 6,348 6,243 8,158
----------- ----------- -----------
Total current assets 169,568 162,128 180,876
PROPERTY AND EQUIPMENT, net 21,413 17,690 16,106
GOODWILL 10,517 10,517 10,517
OTHER ASSETS 9,664 17,923 21,507
----------- ----------- -----------
TOTAL ASSETS $ 211,162 $ 208,258 $ 229,006
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 35,375 $ 36,020 $ 46,863
Accrued expenses 27,889 24,983 23,296
Other current liabilities 2,063 2,833 2,134
----------- ----------- -----------
Total current liabilities 65,327 63,836 72,293
Long-term accrued expenses 715 422 276
----------- ----------- -----------
Total liabilities 66,042 64,258 72,569
----------- ----------- -----------
SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK 13,470 13,470 13,470
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 1,884 1,886 303
Treasury stock (338,410) (338,410) (338,410)
Additional paid-in capital 2,033,944 2,040,850 2,048,785
Deferred compensation - - (1,619)
Accumulated deficit (1,565,869) (1,573,897) (1,566,208)
Accumulated other comprehensive income:
Cumulative currency translation adjustment 101 101 116
----------- ----------- -----------
Total stockholders' equity 131,650 130,530 142,967
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 211,162 $ 208,258 $ 229,006
=========== =========== ===========
</Table>
Page 3
<Page>
PRICELINE.COM INCORPORATED
GROSS BOOKINGS
<Table>
<Caption>
2Q03 VS.
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2Q02
------------- ------------- ------------- ------------- ------------- ------------- -------------
Merchant $ 302,563,553 $ 351,038,533 $ 271,921,795 $ 218,100,177 $ 226,738,785 $ 267,038,521 -24%
Agency 4,250,791 3,744,496 3,385,312 10,227,969 20,777,964 30,022,691 702%
------------- ------------- ------------- ------------- ------------- ------------- -------------
Total $ 306,814,344 $ 354,783,029 $ 275,307,107 $ 228,328,146 $ 247,516,749 $ 297,061,212 -16%
</Table>
GROSS BOOKINGS REPRESENT THE TOTAL VALUE OF TRAVEL BOOKED THROUGH THE
PRICELINE.COM AND LOWESTFARE.COM SITES.
THE INFORMATION INCLUDED ABOVE IS FOR U.S. OPERATIONS ONLY.
Page 4
<Page>
PRICELINE.COM INCORPORATED
OFFER AND CUSTOMER ACTIVITY
<Table>
<Caption>
2Q03 VS.
UNIQUE OFFERS: 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2Q02
- -------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
New Customer
Offers 874,792 964,464 825,026 759,465 749,009 902,013 -6%
Repeat Customer Offers 1,530,745 1,819,872 1,707,494 1,496,970 1,488,906 1,842,387 1%
Total Unique Offers 2,405,537 2,784,336 2,532,520 2,256,435 2,237,915 2,744,400 -1%
Repeat customer offers/
total unique offers 63.6% 65.4% 67.4% 66.3% 66.5% 67.1%
CUSTOMERS
New Customers 874,792 964,464 825,026 759,465 749,009 902,013 -6%
Cumulative Customers 13,567,403 14,531,867 15,356,893 16,116,358 16,865,367 17,767,380 22%
</Table>
THE INFORMATION INCLUDED ABOVE IS FOR U.S. OPERATIONS, AND INCLUDES MERCHANT
OPAQUE TRANSACTIONS ONLY.
Page 5
<Page>
PRICELINE.COM INCORPORATED
AIR
<Table>
<Caption>
2Q03 VS.
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2Q02
---------- ---------- ---------- ---------- ---------- ---------- ----------
Tickets Sold 866,643 921,201 643,659 468,926 439,270 446,143 -52%
Net Unique Offers 1,391,478 1,533,442 1,195,664 1,225,988 1,107,329 1,274,139 -17%
Offers Booked 580,555 619,590 441,406 341,244 302,306 303,668 -51%
Bind Rate 41.7% 40.4% 36.9% 27.8% 27.3% 23.8%
</Table>
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS
THE INFORMATION INCLUDED ABOVE IS FOR U.S. OPERATIONS, AND INCLUDES MERCHANT
OPAQUE TRANSACTIONS ONLY.
Page 6
<Page>
PRICELINE.COM INCORPORATED
HOTELS
<Table>
<Caption>
2Q03 VS.
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2Q02
---------- ---------- ---------- ---------- ---------- ---------- ----------
Room Nights Sold 909,107 1,089,586 1,144,988 961,124 1,229,887 1,499,512 38%
Net Unique Offers 629,145 812,285 931,323 748,200 878,619 1,143,870 41%
Offers Booked 417,306 499,065 539,899 463,434 578,867 711,421 43%
Bind Rate 66.3% 61.4% 58.0% 61.9% 65.9% 62.2%
</Table>
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS
THE INFORMATION INCLUDED ABOVE IS FOR U.S. OPERATIONS, AND INCLUDES MERCHANT
OPAQUE TRANSACTIONS ONLY.
Page 7
<Page>
PRICELINE.COM INCORPORATED
RENTAL CARS
<Table>
<Caption>
2Q03 VS.
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2Q02
---------- ---------- ---------- ---------- ---------- ---------- ----------
Days Sold 738,021 793,616 741,167 555,465 635,676 827,809 4%
Net Unique Offers 303,611 335,059 302,554 244,278 251,967 326,391 -3%
Offers Booked 139,776 148,483 143,593 110,482 127,147 163,150 10%
Bind Rate 46.0% 44.3% 47.5% 45.2% 50.5% 50.0%
</Table>
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS
THE INFORMATION INCLUDED ABOVE IS FOR U.S. OPERATIONS, AND INCLUDES MERCHANT
OPAQUE TRANSACTIONS ONLY.
Page 8