EX-99.1 3 a2078696zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 PRICELINE.COM REPORTS PROFIT FOR 1ST QUARTER 2002 PRICELINE.COM GENERATES $0.02 PER SHARE NET INCOME ON PRO FORMA AND GAAP BASES HOTEL ROOM SALES POST 110% YEAR-OVER-YEAR GAIN CUSTOMER BASE TOPS 13.5 MILLION WITH 63.6% REPEAT OFFER RATE NORWALK, Conn., May 1, 2002 . . . Priceline.com(R) (Nasdaq: PCLN) today reported that, for the 1st quarter 2002, iT had pro forma net income of $5.3 million, or $0.02 per diluted share, compared to a pro forma net loss of $6.2 million, or $0.03 per share for the 1st quarter 2001. Pro forma EBITDA was $8.8 million for the 1st quarter 2002. Pro forma net income (loss) and pro forma EBITDA are stated before non-cash preferred stock dividends, stock-based compensation, option payroll taxes and restructuring charges. On a GAAP basis, priceline.com had net income of $3.9 million for the 1st quarter 2002, or $0.02 per diluted share, compared to a loss of $13.8 million, or $0.07 per share, for the 1st quarter of 2001. Priceline.com's 1st quarter 2002 profit was based on revenue of $261.9 million, which was within the Company's previously stated guidance range for the quarter and down slightly from revenue of $269.7 million in the 1st quarter 2001. "Priceline.com's hotel room business continued its impressive growth in the 1st quarter, as room nights sold increased 110 percent over the 1st quarter 2001," said priceline.com President and Chief Operating Officer Jeffery H. Boyd. "While our airline ticket business remained under pressure from airline fare sales and constrained availability, particularly in the late-March Easter vacation period, solid results in our other travel products, a continued strengthening of our consumer franchise and continued expense discipline resulted in another profitable quarter for priceline.com." Gross profit for the 1st quarter 2002 was $42 million, compared to $43.1 million in the 1st quarter 2001. Gross margin for the 1st quarter was 16 percent, the same as a year ago. Priceline.com ended the quarter with $177.8 million in cash and short-term investments, compared to $146.9 million a year ago. During the 1st quarter 2002, priceline.com sold a combined 2.5 million units of travel products. Priceline.com continued to diversify its revenue streams to non-air businesses, with hotel and rental car unit sales constituting 66 percent of total travel unit sales in the 1st quarter of 2002, up from 49 percent in the 1st quarter 2001. Priceline.com sold more than 909,000 hotel room nights during the quarter, which is 110 percent higher than a year ago. Today, approximately 17 percent of new priceline.com customers come to the service to make a hotel room offer, compared to 11 percent a year ago. Meanwhile, rental car days sold were more than 738,000 in the 1st quarter, which was 22 percent higher than a year ago. Priceline.com reported strong customer metrics for the 1st quarter 2002. The Company added nearly 875,000 new customers during the quarter, bringing its total customer base to over 13.5 million. Average monthly visitor traffic to the priceline.com Web site, as measured by Nielsen/Net Ratings, was up 26 percent sequentially and rose every month during the quarter. Repeat business for the quarter equaled the previous priceline.com record of 63.6 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). Sourcing of priceline.com customers continued to evolve during the 1st quarter 2002, as more sales were derived through the Company's online partnerships, affiliate relationships and e-mail campaigns to priceline.com's customer base. During the 1st quarter, nearly 20 percent of priceline.com's sales came from its online partners and e-mails, up almost 100 percent year over year. Priceline.com has strategic online marketing relationships with AOL/Time Warner and eBay, as well as an affiliate sales network. "Looking forward, priceline.com is targeting 2nd quarter 2002 revenue of between $320 million and $350 million, and pro forma earnings per share of $0.03 to $0.05," said Mr. Braddock. "This range is consistent with our expectation that the most significant growth in the quarter will come from our non-air products. On that basis, we remain comfortable with a target for full-year pro forma EPS of $0.12." Significant recent developments for priceline.com included: o STRATEGIC PARTNERSHIPS. In late January, priceline.com entered into an agreement with eBay to become the exclusive opaque booking engine for eBay Travel. The booking engine, called Priceline Powerdeals, is now live and a marketing/press launch will follow. o PRICELINE VACATIONS. During the quarter, priceline.com developed and introduced a new product where travelers can make their own offers for complete vacation packages, including hotel and airfare, to locations throughout the U.S., Europe, Mexico and the Caribbean. In addition to leveraging priceline.com's Name Your Own Price model, Priceline Vacations allows customers to choose their hotels and has other key advantages over competing vacation package products, including being able to select your own travel dates and length of stay. The official launch of the Priceline Vacation service will be later this month. o NEW ADVERTISING INITIATIVES. Priceline.com renewed its exclusive celebrity spokesperson contract with actor William Shatner and created a series of new radio advertisements using the "I Think, Therefore I Save" tagline. In the spots, Shatner is paired with a new sidekick - the priceline.com SuperComputer. o INTERNATIONAL INITIATIVES. Hutchison-Priceline, the company created with investments from priceline.com and Hutchison-Whampoa, Ltd., launched its Name Your Own Pricesm service in Hong Kong in April and expects to expand to Singapore and Taiwan. Priceline.com also continues to build out priceline.co.uk, the UK Name Your Own Pricesm travel service. During the quarter, priceline.co.uk announced the expansion of its hotel service and began planning a marketing campaign to re-introduce the product to UK customers. Priceline.com holds a majority equity stake in priceline.co.uk. o NON-TRAVEL PRODUCT DEVELOPMENTS. PricelineMortgage, the loan service in which priceline.com is 49 percent owner, had another profitable quarter, contributing $492,000 to priceline.com's net income. Priceline Long Distance, a priceline.com subsidiary, introduced the nation's first Name Your Own Price phone card during the quarter. And priceline.com's new car service launched an enhanced Web site that makes it even easier to research or buy a new car. The site introduced a new feature that lets customers see the typical selling range for the car they want in their particular region. About Priceline.com Priceline.com is the Internet service that offers products for sale in four categories: a travel service that offers airline tickets, hotel rooms, rental cars, cruises and vacation packages; a personal finance service that offers home mortgages, refinancing and home equity loans; an automotive service that offers new cars, and a telecommunications service that offers long distance calling services. Priceline.com licenses its business model to independent licensees, 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," "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 or hostilities; adverse changes in the Company's relationships with airlines and other product and service providers, including, without limitation, the withdrawal of providers from the priceline.com system; 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-K, Form 10-Q 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. PRICELINE.COM INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, UNAUDITED)
MARCH 31, DECEMBER 31, 2002 2001 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 92,051 $ 99,943 Restricted cash 17,454 15,396 Short-term investments 68,327 49,269 Accounts receivable, net of allowance for doubtful accounts of $2,581 and $4,170 at March 31, 2002 and December 31, 2001, respectively 20,218 15,665 Prepaid expenses and other current assets 10,544 5,038 ----------- ----------- Total current assets 208,594 185,311 Property and equipment, net 31,291 32,266 Due from employees 11 11 Goodwill 22,535 23,646 Other assets 19,720 20,956 ----------- ----------- Total assets $ 282,151 $ 262,190 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 62,177 $ 45,941 Accrued expenses 31,750 36,240 Other current liabilities 5,050 5,115 ----------- ----------- Total current liabilities 98,977 87,296 Accrued expenses 2,365 2,838 ----------- ----------- Total liabilities 101,342 90,134 ----------- ----------- SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK 13,470 25,345 Stockholders' equity Common stock 1,880 1,836 Treasury stock (326,633) (326,633) Additional paid-in capital 2,032,547 2,015,849 Accumulated deficit (1,540,455) (1,544,341) ----------- ----------- Total stockholders' equity 167,339 146,711 ----------- ----------- Total liabilities and stockholders' equity $ 282,151 $ 262,190 =========== ===========
PRICELINE.COM INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts, unaudited)
THREE MONTHS ENDED MARCH 31, MARCH 31, 2002 2001 --------- --------- Travel revenues $ 259,899 $ 267,020 Other revenues 1,986 2,684 --------- --------- Total revenues 261,885 269,704 Cost of travel revenues 219,511 225,496 Cost of other revenues 381 1,093 --------- --------- Total costs of revenues 219,892 226,589 --------- --------- Gross profit 41,993 43,115 --------- --------- Operating expenses: Sales and marketing 20,791 30,623 General and administrative 6,636 9,404 Payroll tax on employee stock options 104 23 Stock based compensation 250 5,157 Systems and business development 10,533 11,112 Restructuring charge (824) 1,400 --------- --------- Total operating expenses 37,490 57,719 --------- --------- Operating income (loss) 4,503 (14,604) Other income (expenses): Loss on sale of equity investment -- (946) Interest income 782 1,776 Equity in net income of pricelineMortgage 492 -- Currency translation adjustment (36) --------- --------- Total other income 1,238 830 --------- --------- Net income (loss) 5,741 (13,774) Preferred stock dividend (1,854) -- --------- --------- Net income (loss) applicable to common stockholders $ 3,887 $ (13,774) ========= ========= Net income (loss) applicable to common stockholders per basic common share $ 0.02 $ (0.07) ========= ========= Weighted average number of basic common shares outstanding 227,503 188,589 ========= ========= Net income applicable to common stockholders per diluted common share $ 0.02 N/A ========= Weighted average number of diluted common shares outstanding 239,970 N/A =========
PRICELINE.COM INCORPORATED SUPPLEMENTAL PRO FORMA FINANCIAL INFORMATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2002 ------------------------------------------ PRO FORMA REPORTED ADJUSTMENTS PRO FORMA --------- --------- --------- Travel revenues $ 259,899 $ 259,899 Other revenues 1,986 1,986 --------- --------- --------- Total revenues 261,885 261,885 Cost of travel revenues 219,511 219,511 Cost of other revenues 381 381 --------- --------- --------- Total costs of revenues 219,892 219,892 --------- --------- --------- Gross profit 41,993 41,993 --------- --------- --------- Operating expenses: Sales and marketing 20,791 20,791 General and administrative 6,636 6,636 Payroll tax on employee stock options 104 (104)(a) -- Stock based compensation 250 (250)(b) -- Systems and business development 10,533 10,533 Restructuring charge (824) 824 (c) -- --------- --------- --------- Total operating expenses 37,490 470 37,960 --------- --------- --------- Operating income 4,503 (470) 4,033 Other income: Interest income 782 782 Equity in net income of pricelineMortgage 492 492 Currency translation adjustment (36) (36) --------- --------- --------- Total other income 1,238 -- 1,238 --------- --------- --------- Net income 5,741 (470) 5,271 --------- --------- --------- Preferred stock dividend (1,854) 1,854 (d) -- --------- --------- --------- Net income applicable to common stockholders $ 3,887 $ 1,384 $ 5,271 ========= ========= ========= Net income applicable to common stockholders per basic common share $ 0.02 -- $ 0.02 ========= ========= ========= Weighted average number of basic common shares outstanding 227,503 227,503 ========= ========= Net income applicable to common stockholders per diluted common share $ 0.02 -- $ 0.02 ========= ========= ========= Weighted average number of diluted common shares outstanding 239,970 239,970 ========= =========
(a) Employer payroll taxes on employee exercises of non-qualified stock options. (b) Non-cash stock based compensation expense. (c) Restructuring charges (credits). (d) Non-cash preferred stock dividend.
PRICELINE.COM INCORPORATED - 2002 FIRST QUARTER FINANCIAL DATA SUPPLEMENT [priceline.com logo] --------------------------------------------------------------------------------------------------------------------------- PAGE NUMBER PRICELINE.COM FINANCIALS Pro Forma Condensed Consolidated Statements of Operations 1 Pro Forma Condensed priceline.com Europe Ltd. Statement of Operations 2 Condensed Consolidated Balance Sheets 3 OFFER AND CUSTOMER ACTIVITY 4 PRODUCT DETAIL Air 5 Hotels 6 Rental Cars 7 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. ---------------------------------------------------------------------------------------------------------------------------
PRICELINE.COM INCORPORATED ------------------------------------------------------------------------------------------------------------------------------------ PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS In thousands, except per share amounts (UNAUDITED) 1Q02 VS. INCOME STATEMENT ANALYSIS 1Q01 2Q01 3Q01 4Q01 1Q02 1Q01 --------- --------- --------- --------- --------- ----------- Travel revenues $ 267,020 $ 362,492 $ 299,793 $ 232,918 $ 259,899 -3% Other revenues 2,684 2,264 2,196 2,386 1,986 -26% --------- --------- --------- --------- --------- Total revenues 269,704 364,756 301,989 235,304 261,885 -3% Cost of travel revenues 225,496 303,979 250,952 195,608 219,511 -3% Cost of other revenues 1,093 671 605 443 381 -65% --------- --------- --------- --------- --------- Total costs of revenues 226,589 304,650 251,557 196,051 219,892 -3% --------- --------- --------- --------- --------- Gross profit $ 43,115 $ 60,106 $ 50,432 $ 39,253 $ 41,993 -3% --------- --------- --------- --------- --------- Operating expenses: Advertising 16,189 13,701 9,600 7,385 10,227 -37% Sales and marketing 14,434 19,117 20,410 14,530 10,564 -27% General and administrative 9,404 7,477 6,069 5,709 6,636 -29% Systems and business development 11,112 9,892 10,160 10,129 10,533 -5% --------- --------- --------- --------- --------- Total operating expenses $ 51,139 $ 50,187 $ 46,239 $ 37,753 $ 37,960 -26% Pro-forma operating (loss) income ($ 8,024) $ 9,919 $ 4,193 $ 1,500 $ 4,033 -150% Loss on property and equipment -- -- -- (17) -- -- Currency translation adjustment -- -- -- -- (36) -- Income from priceline Mortgage -- -- 34 517 492 -- Interest income 1,776 1,816 2,062 1,342 782 -56% --------- --------- --------- --------- --------- Pro forma net (loss) income ($ 6,248) $ 11,735 $ 6,289 $ 3,342 $ 5,271 -184% ========= ========= ========= ========= ========= Pro forma EBITDA ($ 3,986) $ 13,895 $ 8,352 $ 6,161 $ 8,849 -322% ========= ========= ========= ========= ========= Pro forma net (loss) income per basic share ($ 0.03) $ 0.06 $ 0.03 $ 0.01 $ 0.02 -170% ========= ========= ========= ========= ========= Pro forma net (loss) income per diluted share ($ 0.03) $ 0.05 $ 0.03 $ 0.01 $ 0.02 -170% ========= ========= ========= ========= ========= Severance charge -- (5,412) -- -- -- -- Special (charge)/credit -- -- -- 1,218 -- -- Restructuring (charge)/credit (1,400) -- -- 1,536 824 -159% Stock based compensation (5,157) (3,140) (1,015) (7,196) (250) -95% Option payroll taxes (23) (367) (297) (222) (104) 352% Preferred stock dividend -- -- (8,563) -- (1,854) -- Loss on sale of stock (946) -- -- -- -- -100% --------- --------- --------- --------- --------- Net (loss) income ($ 13,774) $ 2,816 ($ 3,586) ($ 1,322) $ 3,887 -128% ========= ========= ========= ========= ========= Net (loss) income applicable to common stockholders per basic common share ($ 0.07) $ 0.01 ($ 0.02) ($ 0.01) $ 0.02 -123% ========= ========= ========= ========= ========= Net (loss) income applicable to common stockholders per diluted common share ($ 0.07) $ 0.01 ($ 0.02) ($ 0.01) $ 0.02 -123% ========= ========= ========= ========= ========= Weighted average common shares: Basic 188,589 196,581 216,132 223,042 227,503 21% Diluted 188,589 220,021 216,132 223,042 239,970 27% Common shares outstanding, end of period 200,843 209,496 223,583 224,038 229,544 14% --------------------------------------------------------------- --------- --------- --------- --------- ----- GROSS MARGIN 16.0% 16.5% 16.7% 16.7% 16.0% Page 1
PRICELINE.COM EUROPE LTD. -------------------------------------------------------------------------------- PRO FORMA CONDENSED STATEMENTS OF OPERATIONS In thousands, except per share amounts (UNAUDITED)
INCOME STATEMENT ANALYSIS 1Q02 ------------------------- --------- Travel revenues $ 3,090 Other revenues -- --------- Total revenues 3,090 Cost of travel revenues 2,647 Cost of other revenues -- --------- Total costs of revenues 2,647 --------- Gross profit $ 443 --------- Operating expenses: Advertising 36 Sales and marketing 317 General and administrative 1,146 Systems and business development 853 --------- Total operating expenses $ 2,352 Operating loss ($ 1,909) Interest income 6 --------- Pro forma net loss ($ 1,903) ========= Pro forma EBITDA ($ 1,725) ========= Pro forma net loss per parent basic and diluted share ($ 0.01) ========= Weighted average common shares: Basic 227,503 Diluted 239,970 Common shares outstanding, end of period 229,544 ------------------------------------------------------ --------- GROSS MARGIN 14.3%
Does not include certain intercompany consolidation adjustments Page 2
PRICELINE.COM INCORPORATED -------------------------------------------------------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEETS In thousands (UNAUDITED) ASSETS 3/31/2001 6/30/2001 9/30/2001 12/31/2001 3/31/2002 ----------- ----------- ----------- ----------- ----------- CURRENT ASSETS: Cash and cash equivalents $ 98,698 $ 124,284 $ 99,013 $ 99,943 $ 92,051 Restricted cash 21,793 15,139 8,685 15,396 17,454 Short-term investments 26,394 30,433 45,498 49,269 68,327 Accounts receivable, net of allowance for doubtful accounts 20,706 25,839 15,021 15,665 20,218 Note receivable -- 8,500 10,000 -- -- Prepaid expenses and other current assets 10,908 6,784 7,759 5,038 10,544 ----------- ----------- ----------- ----------- ----------- Total current assets 178,499 210,979 185,976 185,311 208,594 PROPERTY AND EQUIPMENT, net 35,861 34,870 33,137 32,266 31,291 DUE FROM EMPLOYEES 3,183 41 11 11 11 GOODWILL -- -- -- 23,646 22,535 WARRANTS TO PURCHASE COMMON STOCK OF LICENSEES 3,250 3,250 3,250 -- -- OTHER ASSETS 19,769 19,521 19,311 20,956 19,720 ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS $ 240,562 $ 268,661 $ 241,685 $ 262,190 $ 282,151 =========== =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 51,377 $ 69,531 $ 34,931 $ 45,941 $ 62,177 Accrued expenses 26,630 32,210 30,484 36,240 31,750 Other current liabilities 4,978 5,161 4,943 5,115 5,050 ----------- ----------- ----------- ----------- ----------- Total current liabilities 82,985 106,902 70,358 87,296 98,977 Accrued expenses 4,747 3,789 3,367 2,838 2,365 ----------- ----------- ----------- ----------- ----------- Total liabilities 87,732 110,691 73,725 90,134 101,342 ----------- ----------- ----------- ----------- ----------- SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK 80,000 55,032 25,345 25,345 13,470 ----------- ----------- ----------- ----------- ----------- STOCKHOLDERS' EQUITY: Common stock 1,650 1,720 1,832 1,836 1,880 Treasury stock (326,633) (326,633) (326,633) (326,633) (326,633) Additional paid-in capital 1,948,533 1,971,588 2,013,974 2,015,849 2,032,547 Deferred compensation (8,471) (4,304) (3,539) -- -- Accumulated deficit (1,542,249) (1,539,433) (1,543,019) (1,544,341) (1,540,455) ----------- ----------- ----------- ----------- ----------- Total stockholders' equity 72,830 102,938 142,615 146,711 167,339 ----------- ----------- ----------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 240,562 $ 268,661 $ 241,685 $ 262,190 $ 282,151 =========== =========== =========== =========== ===========
Certain reclassifications have been made to conform to curent year presentation. Page 3
PRICELINE.COM INCORPORATED ----------------------------------------------------------------------------------------------------------------------------- OFFER AND CUSTOMER ACTIVITY 1Q02 VS. UNIQUE OFFERS: 1Q01 2Q01 3Q01 4Q01 1Q02 1Q01 -------------- ----------- ------------ ----------- ------------ ----------- ----------- New Customer Offers 891,490 1,025,041 927,338 854,082 874,792 -2% Repeat Customer Offers 1,217,217 1,620,157 1,559,727 1,491,942 1,530,745 26% Total Unique Offers 2,108,707 2,645,198 2,487,065 2,346,024 2,405,537 14% Repeat customer offers/ 57.7% 61.2% 62.7% 63.6% 63.6% total unique offers Customers --------- New Customers 891,490 1,025,041 927,338 854,082 874,792 -2% Cumulative Customers 9,886,150 10,911,191 11,838,529 12,692,611 13,567,403 37%
The information included above is for priceline.com only. Statistics do not include priceline.com Europe Ltd. Page 4
PRICELINE.COM INCORPORATED ---------------------------------------------------------------------------------------------------------- -------------- AIR 1Q02 VS. 1Q01 2Q01 3Q01 4Q01 1Q02 1Q01 -------------- --------------- -------------- --------------- --------------- -------------- Tickets Sold 1,075,555 1,435,936 1,183,981 840,191 866,643 -19% Net Unique Offers 1,392,747 1,683,661 1,445,575 1,441,620 1,391,478 0% Offers Booked 709,576 963,167 779,319 584,505 580,555 -18% Bind Rate 50.9% 57.2% 53.9% 40.5% 41.7%
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS AIR PRODUCT WAS LAUNCHED ON APRIL 6, 1998 The information included above is for priceline.com only. Statistics do not include priceline.com Europe Ltd. Page 5
PRICELINE.COM INCORPORATED ------------------------------------------------------------------------------------------------------------------------------ HOTELS 1Q02 VS. 1Q01 2Q01 3Q01 4Q01 1Q02 1Q01 --------------- -------------- --------------- -------------- --------------- -------------- Room Nights Sold 432,884 680,604 879,922 789,638 909,107 110% Net Unique Offers 351,952 516,816 647,446 554,523 629,145 79% Offers Booked 188,278 311,121 394,807 384,463 417,306 122% Bind Rate 53.5% 60.2% 61.0% 69.3% 66.3%
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS Hotel product was launched on October 28, 1998 The information included above is for priceline.com only. Statistics do not include priceline.com Europe Ltd. Page 6
PRICELINE.COM INCORPORATED ----------------------------------------------------------------------------------------------------------------------------- RENTAL CARS 1Q02 VS. 1Q01 2Q01 3Q01 4Q01 1Q02 1Q01 ---------------------------------------------------------------- --------------------------------- Days Sold 607,336 922,545 895,601 720,213 738,021 22% Net Unique Offers 229,581 325,235 313,389 261,069 303,611 32% Offers Booked 105,970 162,053 160,603 135,781 139,776 32% Bind Rate 46.2% 49.8% 51.2% 52.0% 46.0%
BIND RATE = OFFERS BOOKED/NET UNIQUE OFFERS RENTAL CAR PRODUCT WAS LAUNCHED ON FEBRUARY 3, 2000 THE INFORMATION INCLUDED ABOVE IS FOR PRICELINE.COM ONLY. STATISTICS DO NOT INCLUDE PRICELINE.COM EUROPE LTD. Page 7