News Releases - 2008

ServiceMagic.com Announces Strategic Investment in Zip Express Installation

GOLDEN, Colo – November 20, 2008 - ServiceMagic.com, an operating business of IAC (NASDAQ: IACI), today announced a strategic investment in Minneapolis-based Zip Express Installation. Financial details of the transaction, which closed November 10, 2008, were not disclosed.

Zip Express Installation (www.zipinstallation.com) specializes in next day or five day consumer and commercial electronics installation services, including wall-mounted flat screen televisions, home theater systems, computers, wireless hubs, digital cameras and more.

Given ServiceMagic.com's established expertise in bringing home service providers and consumers together on the local level, this investment marks a natural extension of the business strategy. The partnership will allow ServiceMagic.com to leverage Zip's expertise in the fast-growing consumer electronics category, and bring Zip additional exposure to an existing network of loyal consumers.

"Zip Express Installation has developed an innovative model for delivering product installation services through retail channels, as well as directly to homeowners," said Michael Beaudoin, co-Chairman of ServiceMagic.com. "As in-home technologies become more complex, the need for qualified installers and professional technicians grows exponentially."

"Given the February 2009 transition to digital mandated by the FCC, coupled with holiday upgrades for family digital entertainment areas, we've seen increased demand for our services," explains Chris Mauzy, CEO of Zip Installation. "Partnering with ServiceMagic.com to utilize their proven expertise in delivering local service solutions will allow us to grow our business and more effectively target and serve customers with local installation needs."

Zip Express Installation services can be accessed by homeowners through its website (www.zipinstallation.com), point of purchase or online with retailers such as Target, Target.com, CompUSA, Office Depot, Tiger Direct, and Direct Buy.

Golden, Colorado-based ServiceMagic.com (www.servicemagic.com) is a leading national online resource for homeowners to connect to prescreened and customer-rated home service professionals for nearly any home remodeling, maintenance or repair project. ServiceMagic.com's matching platform has created more than ten million connections between home service professionals and the homeowners who need their services. ServiceMagic.com recently expanded operations to the United Kingdom and France.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic.com is an operating business of IAC (NASDAQ: IACI). For more information, visit http://www.servicemagic.com.

ABOUT ZIP EXPRESS INSTALLATION
Headquartered in Minneapolis, Minn., Zip Express Installation provides fast and flexible home installations for your technology enjoyment. Zip Express Installation leverages a proprietary fulfillment process, best of class customer service and more than 16,000 professional, CE-certified installers for television, home theater installations and computer solutions. For retailers, Zip Express uniquely provides and manages an in-house install infrastructure that decreases return rates. Consumers may take advantage of Zip Express in-store or online with participating retailers, or online directly via www.zipinstallation.com.

ABOUT IAC
IAC operates more than 35 leading and diversified Internet businesses across 40 countries... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. To view a full list of the companies of IAC please visit our website at http://iac.com/.

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ServiceMagic Acquires Majority Stake in 123Devis.com, 123GetAQuote.co.uk and Travaux.com
Launch of ServiceMagic Europe Widens IAC's Global Reach

NEW YORK – October 29, 2008 - Today ServiceMagic announced the launch of ServiceMagic Europe through its acquisition of a majority stake in The Koening Company and the acquisition of Travaux.com from Groupe CyberArchi, reaffirming IAC's (NASDAQ: IACI) commitment to strategic international expansion and continued investments in local markets around the world. ServiceMagic Europe is being launched in conjunction with ServiceMagic International, which will continue to scout local lead generation business opportunities around the world.

ServiceMagic Europe, headquartered in Luxembourg, operates businesses in the local lead generation space in French and British markets including:

• Travaux.com, the largest French website for consumer information regarding home improvement;
• 123Devis.com, a French lead generation business with the largest network of tradespeople in France; and
• 123GetAQuote.co.uk, a leading UK lead generation platform

Financial details of the transaction, which closed October 27th, have not been disclosed. In addition to purchasing a majority interest in the businesses, ServiceMagic and IAC will invest additional capital to aggressively accelerate growth of the venture in Europe.

Already the leading online marketplace for homeowners looking to find prescreened, customer-rated contractors for more than 500 household tasks in the U.S., expansion into Europe will allow ServiceMagic to bring its proven expertise to these properties. Over the coming months, these sites will leverage ServiceMagic's local lead generation experience and utilize ServiceMagic's business processes to serve French and U.K. homeowners' needs. Working to match the right professional with the right skills to consumers across each market, ServiceMagic Europe will continue to grow its database of pre-screened, customer-rated contractors.

Jean-David Habib, the entrepreneur who started the EU businesses, will serve as CEO of ServiceMagic Europe, with ServiceMagic co-founders Rodney Rice and Michael Beaudoin overseeing ServiceMagic International. The U.S. business will continue to be run by current CEO Craig Smith.

"Through partnerships with local businesses, we can better understand the demands of European consumers and subsequently tailor our business model to launch successful local lead generation businesses in Europe," said Rice. "Mr. Habib is an extremely talented entrepreneur who was able to drive these businesses to leadership positions in their respective markets. We look forward to his leadership to help drive the growth of ServiceMagic Europe."

"European homeowners need access to information they can trust," said Habib. "Service professionals and homeowners will truly benefit from the added resources of a company of ServiceMagic's size and reputation."

Today's news is the latest move in IAC's expanding global operations. Recent IAC international initiatives include:

• The acquisition of GirlSense in Israel to extend share of voice in IAC's teen product portfolio;
• The launch of an initiative in Korea to find and partner with Korean game developers to build innovative games for IAC's InstantAction.com - encouraging growth and fostering innovation at InstantAction.com, the website for gamers that combines the intensity of console videogames with the accessibility of the web; and
• New product launches, feature enhancements and global partnerships at Match.com Japan... catapulting Match.com into a leadership position in online dating in Japan.

By surveying opportunistic markets and key international audiences, IAC will continue to explore strategic partnerships, scout key developers and entrepreneurs and evaluate acquisition targets throughout Europe, Asia and other international destinations.

"In order to expand IAC's footprint around the globe, we need to create locally relevant consumer offerings," said Jane Thompson, Managing Director, IAC International. "We recognize that in order to do this we need to adapt and work with local businesses to accommodate the unique needs of international markets."

With over 168 million users in more than 40 countries around the world, recent and current international efforts from many of IAC's more than 35 brands including Match.com, Ask.com, InstantAction and Evite reinforce IAC's ability to monetize and distribute content across the web. By leveraging this expertise, the goal moving forward is to accelerate growth internationally by expanding existing brands and exploring new opportunities which can bring new businesses into the fold.

Already operating established and emerging brands that appeal to niche audiences around the world, continuing to grow its global user-base and expand market share is part of the natural evolution of IAC.

About ServiceMagic®, Inc.

ServiceMagic®, Inc., headquartered in Golden, Colo., is the U.S.'s leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC (NASDAQ: IACI). For more information, visit http://www.servicemagic.com.

About IAC

IAC operates more than 35 leading and diversified Internet businesses across 40 countries... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. To view a full list of the companies of IAC please visit our website at http://iac.com/.

About The Koening Company

Koening International SA is a Luxembourg based marketing business, which fully owns 123Devis.com and 123GetAQuote.co.uk. Established in October 2005 by French entrepreneur Jean-David Habib, 123Devis.com is a lead generation business with the largest network of tradespeople in France. In September 2007, the UK business, 123GetAQuote.co.uk was established and has quickly secured its position as a leading service for homeowners looking to find qualified tradespeople in the UK.

About Travaux.com

Travaux.com was launched in January 2002 and means 'works' but more literally translates as "home improvement works'. It is the largest content site for homeowners searching for information about home improvements in France.

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Nosy Neighbors Irk Homeowners
New Poll Reveals a Need for Better Fences!

Golden, CO (January 10, 2008) - Quick—exactly what time did you leave for work this morning? Not sure? Well, maybe your neighbor knows. A new ServiceMagic.com poll revealed that nearly two-thirds of respondents claim to have (or have had) a nosy neighbor living nearby.

Of the 1,100 people surveyed nationwide, 64% said their neighbors follow their lives a little too closely. The same number of people reported that they’ve actually caught someone in the act.

However, when it comes to admitting to being a snoop, only 9 percent confessed to spying on their neighbor, and only 2 percent said they “see everything” that goes on around their block.

“Let’s face it… it’s a bit creepy,” said David Lupberger, ServiceMagic.com’s Home Improvement Expert. “It's disconcerting to know that every time you’re in the yard that you might have someone watching your every move.”

ServiceMagic.com is a leading website for homeowners looking to find trusted, prescreened professionals for home improvement and repair projects – averaging nearly 300,000 requests from consumers each month.

“I fail to understand why some people find their neighbors’ lives so fascinating,” said Lupberger. “It certainly makes one consider whether they need a fence, or perhaps a taller one, or even some landscaping might help block their neighbor’s view.”

Although they may not classify it as “snooping”, a whopping 4 out of 5 people said they have someone on their block who “sees everything” that goes on. Half of those people said they consider it harmless, but the other half claim the person in question is just waiting for their chance to report loud noises, illegally parked cars, overgrown lawns, etc…

The poll showed that over 1/4 of respondents have actually confronted their neighbors about putting their noses where they don’t belong; although only 4% remarked that it actually did any good.

Here are the complete results of the ServiceMagic.com survey:

1. Do you have now, or have you had a “nosy neighbor”?

No	27%
Yes	64%
I am the nosy neighbor	9%

2. To what level have you seen the snooping get?

No snooping	17%
Small amount (harmless)	28%
Moderate amount (annoying)	37%
Large amount (things got ugly)	17%

3. Have you confronted the neighbor about their snooping?

No, it’s no big deal	37%
Yes, but it didn’t help	24%
Yes, and it put an end to it	4%
No, I don’t like confrontation	24%
There’s no snooping on my block	11%

4. Have you ever caught a neighbor red-handed in an act of being nosy?

No	28%
Yes	67%
No, but it’s only a matter of time	5%

5. Do you suspect there’s someone on your block who “sees everything” that goes on?

I confess – it’s me	2%
Yes, but it’s harmless	40%
No, everyone keeps to themselves	18%
Yes, and they’re just waiting to report loud noises, illegal parking, overgrown lawns, etc…	40%

6. What kinds of snooping do you suspect go on where you live now (or in the past)?

Eavesdropping	32%
Looking through trash cans	7%
Gossiping about other neighbors	62%
Looking over the backyard fence	48%
Constantly watching through the window	73%

David Lupberger is available for media interviews pertaining to consumer/contractor relationships as well as other home improvement topics and consumer tips. To schedule, please contact the ServiceMagic.com public relations department at (303) 963-8028.

ServiceMagic.com is a free website for consumers to connect to more than 50,000 home service professionals nationwide. Each contractor, electrician, carpenter, plumber, etc… has been prescreened for licensing, insurance and eight other criteria in ServiceMagic’s 10-point screening process. Since 1999, ServiceMagic.com has made more than seven million connections between homeowners and prescreened home service professionals.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 50,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

IAC Appoints Craig Smith Chief Executive Officer of ServiceMagic

NEW YORK (January 22, 2008) - IAC (NASDAQ: IACI) announced today that Craig Smith has been appointed CEO of ServiceMagic, Inc. Mr. Smith previously served as the Senior Vice President of the company's Consumer Division. He will report directly to Barry Diller, Chairman and CEO of IAC. ServiceMagic co-founders Rodney Rice and Michael Beaudoin will transition to co-Chairmen of ServiceMagic, and will serve as advisers to the senior management team.

"Craig has become an invaluable asset to the company," said Mr. Rice. "He understands our customers, culture and organization. This experience, coupled with his sound business acumen, will no doubt propel ServiceMagic into its next phase of development."

"ServiceMagic is already a thriving business with a very compelling consumer proposition, and I know Craig's passion will drive him to build on the company's outstanding track record of growth," continued Mr. Beaudoin.

Mr. Smith has been with ServiceMagic since 2000, most recently running the company's consumer division where he oversaw consumer marketing and operations. Prior to this, he served as the Vice President of Business Development, where he worked to cultivate strategic business partnerships.

"Mike and Rodney are true entrepreneurs who have gainfully leveraged the scope of the internet to revolutionize the home improvement business," said Mr. Smith. "Because of their leadership, ServiceMagic has grown from an idea to a site that has successfully matched more than 7 million consumer requests to a network of more than 50,000 contractors nationwide."

Today's move comes after IAC's November 2007 announcement of plans to separate IAC into five publicly traded companies, spinning off HSN, Ticketmaster, Interval International and LendingTree. Expected to be completed in the second or third quarter of 2008, the new IAC will include:

• The businesses currently comprising its Media & Advertising sector: Ask.com, Bloglines, Citysearch, CursorMania, Evite, Excite, IAC Advertising Solutions, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti and Zwinky;
• Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica;
• Emerging Businesses including Pronto and Gifts.com, Green.com, Primal Ventures, and InstantAction;
• IAC Programming businesses including Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Very Short List, Vimeo and 23/6;
• IAC's current investments in Active.com, Brightcove, FiLife, MerchantCircle, OpenTable, Points.com and SHOP Channel.

About IAC
IAC 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. To view a full list of the companies of IAC please visit our website at http://iac.com.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 50,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic has more than 850 employees between its headquarters in Colorado and its new operations center in Lenexa, Kansas. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

National Home Improvement Month Begins With Powerful New Tool to Help Avoid Scams
New, Free Website Checks Backgrounds of Contractors, Home Improvement Professionals

GOLDEN, CO (April 30, 2008) - May is National Home Improvement Month. And this year, ServiceMagic.com, the nation's leading online resource to find prescreened home improvement professionals, has given homeowners an extremely powerful new tool to help them avoid getting ripped off by phony or unscrupulous contractors - ScreenAPro.com.

"As the days turn warmer, many homeowners will begin thinking about home improvement projects. That means there can be some unprofessional or unscrupulous contractors knocking on doors, trying to make a quick buck," said David Lupberger, ServiceMagic.com's Home Improvement Expert. "This year, ScreenAPro.com could play a huge role in the fight against home improvement fraud."

ScreenAPro.com is a free website that homeowners can use to gain insight into the backgrounds of any home service provider - from maids to remodelers -- they're considering hiring.

"Most people in the home services industry are honest and do great work," Lupberger said. "But let's face it. There are crooks out there who target our most vulnerable citizens, looking to steal as much as they can get away with."

ServiceMagic.com conducts the background checks on names submitted to the Screen-A-Pro website and contacts the professionals to obtain required information. The checklist includes searches for criminal records, sex offender registries, state-level licensing, insurance, civil judgments and more - everything that's included in ServiceMagic.com's 10-point screening process.

"Every year, homeowners are reminded to 'do their homework' when it comes to hiring someone for home improvement, but many people aren't familiar with the right questions to ask," Lupberger said. "With Screen-A-Pro, homeowners can now have someone do that homework for them - for free."

Since 1999, ServiceMagic.com has made more than eight million matches between homeowners and prescreened home improvement, maintenance and repair professionals. Screen-A-Pro can be used by those who already have a professional in mind, and want the peace of mind that comes with knowing more about the background of a professional.

Lupberger said home improvement scams take on all forms, but one of the most frequent comes from the "traveling handyman". A person knocks on a door, saying they're doing other work in the neighborhood or they have leftover supplies from a different job. They offer to do some work, take the money in advance and are never seen again. Another version of this scam is to complete the work and present a much higher bill than the agreed-upon price.

"Obviously, I'd advise homeowners to use Screen-A-Pro to find out more about this person. But, don't ever hire someone unless you know they have a permanent business address," Lupberger said. "If they're a reputable business person, they won't have any issues with supplying proof of who they are and their other credentials."

Lupberger, a former professional contractor, offers his tips for homeowners trying to protect themselves:

Be cautious. Scrutinize anyone who might perform home improvement services for you - especially those who knock on your door and just happen to be in the neighborhood.

Ask for identification. Always demand to see proof of their permanent business address, proper identification and appropriate licensing and insurance BEFORE letting anyone into your home.

Agree on payment details up-front. Work out the details of the amount of the payment, the payment schedule and the scope of work (the details of what work is to be completed) before any money is exchanged and before work begins.

Get everything in writing. Asking for a written estimate might discourage a con-artist. Any reputable home improvement professional will understand they are competing for your business and should be happy to give you a written estimate. This is a great way to judge the differences in professionalism and cost.

Don't allow yourself to be rushed. Through using the free resources - internet screening services like screenapro.com, ServiceMagic.com, neighbors and references -- you should be able to collect a great deal of information on your potential hires.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com back to top

Poll: 24% Must Have Nicest Yard on Block
Some Admit Reporting Their Neighbor's Bad Lawn Habits

GOLDEN, CO (May 5, 2008) - If your neighbor is one of those who seems to devote more time to their lawn than you spend at the office, a national poll reveals you're probably not alone.

According to the survey by ServiceMagic.com, the nation's leading online resource connecting homeowners to prescreened and customer-rated contractors and other home service professionals, 24% proclaim their lawn must be the best on the block.

"That means the rest of us who have only normal attachments to our lawns might be left feeling a bit inadequate," said David Lupberger, ServiceMagic.com's Home Improvement Expert and former remodeling contractor.

"Mostly, these 24% just have a great sense of pride in their lawns. But for some, obsession takes control. They might compare, they might judge… and as the survey reveals, they might even report others whose lawns don't measure up," said Lupberger.

Seven percent of those who took the poll said they actively keep watch over their neighbors' lawns to make sure they're not outdone, saying "I can't let their grass be greener than mine."

Seven percent also admitted they would rather run the risk of paying a fine for using too much water than allowing their lawns to wither in the summer heat.

"That means that on any given block in the country there might be lawn envy," said Lupberger. "There will be those competing with each other for 'best on the block', and there may be disgruntlement with those whose lawns don't meet those strict standards. It's that sort of one-upmanship that leaves a lot of us feeling greener than our yards."

Furthermore, the ServiceMagic.com survey revealed two percent of the respondents said they would go as far as to tattle on their neighbors for letting their lawns die or for using too much water.

However, Lupberger notes that far more people are considerably less tense about their lawns - and those of their neighbors. Sixty-three percent said they will keep their own lawn watered and mowed, but won't become obsessive. Fifty percent admit to keeping an eye on their neighbor's lawn, but say it's 'no big deal' if they're outdone.

The survey also revealed how much money people plan to invest in their lawn.

Eleven percent said they would spend more than $500 on their lawn this season, while 33% said they'd spend less than $100.

1,392 people responded to the nationwide survey.

Here is the complete breakdown of the questions and the responses.*

1. How important is it for you to have a green lawn?

I don't have grass	6%
I don't care what it looks like	7%
It has to be the nicest on the block	24%
I keep it watered and mowed, but I don't get tense about it	63%

2. Do you keep a watch over your neighbor's lawns?

Yes, I will turn them in for using too much water or letting their lawn die	2%
Oh, yes. I can't let their grass be greener than mine	7%
No, I don't care what theirs looks like	40%
Sure, but it's no big deal if it looks better	50%

3. When it comes to water usage on your lawn, do you obey watering restrictions?

Again, I don't have grass	4%
I admit it. I use more than I should	5%
I don't water my lawn at all	26%
We don't have watering restrictions	27%
I obey all rules regarding designated watering times and amounts	38%

4. Would you rather face the risk of paying a fine than let your lawn turn yellow in the heat?

Yes	7%
No	61%
Doesn't apply to me	32%

5. How much will you spend on your lawn this season?

Zero	10%
Less than $100	33%
$101 - $250	26%
$251 - $500	20%
More than $500	11%

*Percentages may not total 100% due to rounding

David Lupberger is available for media interviews pertaining to consumer/contractor relationships as well as other home improvement topics and consumer tips. To schedule, please contact the ServiceMagic.com public relations department at (303) 963-8028.

ServiceMagic.com is a free website for consumers to connect to 53,000 home service professionals nationwide. Each contractor, electrician, carpenter, plumber, etc… has been prescreened for criminal records, state-level licensing, insurance and other criteria in ServiceMagic's 10-point screening process. Since 1999, ServiceMagic.com has made more than eight million connections between homeowners and prescreened home service professionals.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

Consumers Cautioned to Be Selective When Using Online Ratings & Reviews
New Survey Reveals Many People Use Online Ratings, Even Though Skepticism is Prominent

GOLDEN, CO (June 16, 2008) - A new survey reveals that now more than ever, consumers are looking for each other's experiences to guide them when making purchasing decisions. The poll by ServiceMagic.com, the nation's leading online resource for homeowners looking for prescreened and customer-rated home contractors, shows that 87% of respondents use online ratings and reviews before buying a product or service.

"On the whole, consumers are benefiting a great deal from the ability to share experiences with one another via online ratings and reviews," said Craig Smith, CEO of ServiceMagic.com. "However, fraud and manipulation does exist and thus consumers should put more stock in ratings and reviews from sites which have put measures in place to verify the authenticity of the consumer feedback, especially when making decisions about potentially expensive services such as home improvements."

Consumers seem to agree. Sixty-seven percent say they have some degree of skepticism about the validity of online reviews, with 58 percent choosing "How do I know it's not the business owner using a fake name to endorse their product/service, or another business person bashing their competition unfairly?" as their answer.

"We encourage all websites with a ratings and review platform to employ verification procedures such as those used by ServiceMagic," Smith said. "Many sites on the web allow visitors to either post feedback anonymously or have little to no verification of their registration information. At ServiceMagic, consumers are only able to post if they are a registered member and have been matched via our platform to the contractors whom they desire to rate. We believe this significantly increases the integrity of the information posted."

With 500,000 verified reviews on ServiceMagic.com, Smith offers consumers the following tips regarding online ratings and reviews:

Scrutinize the website on which you find the ratings/reviews. Look closely at their registration procedures. Is it easy for a dishonest person to sign up with a fake name?

Look for information on whether the website takes steps to verify the reviewer actually used the product or service they're rating.

There's nothing wrong with a glowing, positive review about a service or product. However, if you see a string of such reviews on the same service with the same writing styles and/or spelling mistakes, you should wonder if they're being written by just one person using several names.

56% of the respondents to the survey said they believe a business owner should be allowed to respond to a consumer rating. To avoid getting into a he said/she said, which is of little help to others who read the review, does the website offer to mediate the situation?

"It's easier and much cheaper for websites to support an unverified ratings platform. But that doesn't do consumers any good," Smith said. "To put it in pre-internet terms, we've all read some interesting stuff on bathroom stalls but it doesn't make it true."

1,692 people responded to ServiceMagic.com's nationwide survey.

ServiceMagic.com is a free website for consumers to connect to 53,000 home service professionals nationwide. Each contractor, electrician, carpenter, plumber, etc… has been prescreened for licensing, insurance and eight other criteria in ServiceMagic's 10-point screening process. Since 1999, ServiceMagic.com has made more than nine million connections between homeowners and prescreened home service professionals.

ScreenAPro.com is a free website for consumers who want to check out a home improvement or repair professional who might not be part of ServiceMagic's existing network of prescreened contractors.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

Golden-Based Tech Company Announces Staff Expansion, Job Increases
ServiceMagic.com Business Booming Despite Economy; Interviews Begin Immediately

GOLDEN, CO (June 30, 2008) - ServiceMagic.com, the nation's leading online resource for homeowners searching for prescreened home improvement contractors, is adding nearly a hundred new full-time positions to its current staff of 845 in two locations.

"Even though many reports indicate a softening within home improvement spending, online homeowners across the country are coming to ServiceMagic in greater numbers every month," said Craig Smith, ServiceMagic.com's Chief Executive Officer. "To keep pace with this growing demand we are going to need to add staff over the next six months."

ServiceMagic.com is headquartered in Golden, just across I-70 from the Colorado Mills Mall. Last summer, the company made its first "off-site" expansion by opening up an operations center in Lenexa, Kansas, a suburb of Kansas City.

"Even as the economy overall has slowed, particularly for housing, we've actually seen a rise in the number of homeowners coming to ServiceMagic.com to find prescreened and customer-rated home improvement professionals," said Smith.

This year, ServiceMagic.com has already received nearly 2.2 million requests nationally from homeowners looking for prescreened contractors -- 23 percent more than the same time period last year. Since launching in 1999, the company has matched 9.3 million homeowner requests.

Likewise, ServiceMagic revenues are also increasing. In 2007, ServiceMagic grossed $93 million in revenue, a 47 percent increase over 2006.

"We need a larger contractor recruiting and screening team to keep up with homeowner demand," said Shannon Garcia-Lewis, ServiceMagic.com's Human Resources Director.

Garcia-Lewis is heading up the hiring efforts, which primarily consists of expanding the current team of inside sales professionals.

Those teams focus on expanding ServiceMagic's current national network of 53,000 prescreened contractors. If a contractor passes the company's 10-point screening process, they become eligible to purchase referrals, which are priced based on their category of home improvement, repair or maintenance.

ServiceMagic.com is adding at least sixty new positions at its headquarters in Golden, and thirty in the Lenexa, KS operations center. The current combined sales force is 360.

"We'll begin interviewing for these new positions immediately," Garcia-Lewis said.

Anyone interested in applying should visit the careers page at ServiceMagic.com.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

Who Knows Who Better?
New Poll Reveals Which Home Improvements and Services Men and Women Think the Other Would Choose

GOLDEN, CO (July 3, 2008) - Do you know your significant other well enough to know if they'd prefer a maid over a lawn keeper? A remodeled kitchen over a landscaped yard? Do women know men's answers better, or is it the other way around?

A new poll conducted by ServiceMagic.com, the nation's leading online source for homeowners looking for prescreened and customer-rated contractors, reveals that women and men are more alike than they probably know when it comes to what home services they would choose for themselves. But that's not always the case when it comes to what they think the other would choose.

For example, most women guessed men would want a monthly lawn care service. However, most men say out of eight possibilities their number one choice is a maid service.

Here's how the top three choices break down:

What Home Services Women Think Men Want			What Services Men Actually Want
1. Lawn Care	29%		1. Maid Service	37%
2. Handyman	27%		2. Handyman	21%
3. Maid Service	22%		3. Lawn Care	17%

What Home Services Men Think Women Want			What Services Women Actually Want
1. Maid Service	53%		1. Maid Service	36%
2. Handyman	13%		2. Handyman	26%
3. Lawn Care	10%		3. Prof. Organizer	10%

David Lupberger, ServiceMagic.com's Home Improvement Expert and a former remodeling contractor, says experience tells him that sometimes men and women should be prepared to handle small disagreements over how to spend discretionary income on home services and home improvement projects.

"For many, if not most, these kinds of decisions are easy after both people get on the same page. But sometimes there's a clear distinction in the things men and women think are important," Lupberger said.

The genders seem to be even more aligned when considering larger, more expensive home improvement projects. The number one preference for the men might be surprising - especially to the women who tried to guess it. Out of twenty possible home improvements, most men chose kitchen remodeling as the number one project they'd like to take on.

What Home Improvements Women Think Men Want			What Home Improvements Men Actually Want
1. Build an Addition	14%		1. Remodel Kitchen	16%
2. Remodel Kitchen	12%		2. Build an Addition	13%
3. Landscape Yard	9%		3. Remodel Bathroom	10%
3. Remodel Bathroom	9%		4. Landscape Yard	9%

What Home Improvements Men Think Women Want			What Home Improvements Women Actually Want
1. Remodel Kitchen	23%		1. Remodel Kitchen	13%
2. Remodel Bathroom	14%		2. Remodel Bathroom	13%
3. Build an Addition	12%		3. Build an Addition	12%

ServiceMagic.com received 289 responses to the survey. Fifty-one percent of the respondents were female. Forty-nine percent of the respondents were male.

What Really Happens?

In 2007, ServiceMagic.com processed 3.5 million requests from homeowners looking for prescreened home service professionals in 500 categories. In the "services" and "improvements" categories, the top three were:

Actual Top 3 Home Services		Actual Top 3 Home Improvements
1. Maid Services		1. Remodel Bathroom
2. Handyman		2. Interior Painting
3. Lawn Care		3. Install/Replace Multiple Windows

David Lupberger is available for media interviews pertaining to consumer/contractor relationships as well as other home improvement topics and consumer tips. To schedule, please contact the ServiceMagic.com public relations department at (303) 963-8028.

ServiceMagic.com is a free website for consumers to connect to 53,000 home service professionals nationwide. Each contractor, electrician, carpenter, plumber, etc… has been prescreened for licensing, insurance and eight other criteria in ServiceMagic's 10-point screening process. Since 1999, ServiceMagic.com has made more than nine million connections between homeowners and prescreened home service professionals.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com. back to top

ServiceMagic Forms Exclusive Strategic Alliance with Buildproof
Partnership Offers Powerful New Online Payment Tool Protecting Homeowners, Contractors and Materials Suppliers

GOLDEN, CO (October 14, 2008) - ServiceMagic.com, a leading online resource for homeowners looking for prescreened, homeowner-rated contractors, announced today its exclusive partnership with Buildproof, which is designed to ease the stress people feel during home improvement projects. Buildproof offers a secure payment and communication system that helps homeowners and contractors manage projects smarter, easier and safer.

ServiceMagic has selected Buildproof to be its exclusive provider for this service and in turn ServiceMagic will be Buildproof's exclusive provider of Find-A-Contractor services.

"Now more than ever, having more protections as a homeowner and knowing that you will be paid as a small business owner is of utmost importance," said Rodney Rice, ServiceMagic's co-founder and co-chairman. "Our partnership with Buildproof extends the value of the connection ServiceMagic forges between homeowners and contractors. With this easy to use tool, homeowners will benefit from greater peace of mind. For our contractor customers and supplier partners, they can now count on being paid for services rendered and materials delivered."

"Trust and confidence are two of the most critical components of the relationship between a homeowner and their contractor," said Alan Farber, Buildproof CEO. "Buildproof establishes both by empowering homeowners to manage their payment and project timelines effectively and by eliminating the money and communication headaches a contractor suffers. This results in the fulfillment of the Buildproof Promise - worry and hassle-free home improvement and remodeling experiences for homeowners and contractors."

Through the Buildproof system, disbursements are made to the contractor at predetermined "progress points" throughout the project, and only if the homeowner agrees. In the case of upfront payments for materials, funds are released directly to the materials supplier. The homeowner controls the disbursements ensuring payment for services rendered; the contractor has the peace of mind of knowing the funds are present and available for release, and materials suppliers who use the system gain access to a broader customer base if homeowners use the system to pay them directly.

"Buildproof's mission is to improve payment and project management and communication throughout the entire value chain of the home improvement and remodeling industry," said Jeffrey Rassas, chairman, Buildproof. "Through this strategic relationship, Buildproof will dramatically enhance the relationship between key stakeholders who use ServiceMagic.com for millions of home improvement and remodeling projects annually."

Since 1999, ServiceMagic.com has made more than ten million matches between homeowners and its network of more than 53,000 prescreened home improvement professionals.

"We're still providing the nation's best marketplace for homeowners looking for just the right professionals and vice-versa," Rice said. "Buildproof is another powerful tool we can offer to help simplify what can be a complex and stressful event."

ServiceMagic is headquartered in Golden, Colorado, with 700 employees and an additional 150 employees at its operations center in Lenexa, Kansas. ServiceMagic is owned by IAC/InterActive Corp. (NASDAQ: IACI).

Buildproof, Inc. is headquartered in Scottsdale, Arizona.

ServiceMagic.com is a free website for consumers to connect to 53,000 home service professionals nationwide. Each contractor, electrician, carpenter, plumber, etc… has been prescreened for licensing, insurance and eight other criteria in ServiceMagic's 10-point screening process. Since 1999, ServiceMagic.com has made more than ten million connections between homeowners and prescreened home service professionals.

ABOUT SERVICEMAGIC®, INC.
ServiceMagic®, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals. Using proprietary technology to match consumer service requests with local service professionals in real time, the company addresses more than 500 different home service needs that range from simple home repairs and maintenance to complete home remodeling projects. In addition, its 53,000 home service professionals are prescreened to help consumers connect with licensed and insured home service professionals. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI). For more information, visit http://www.servicemagic.com or call 303-963-8028.

About Buildproof
Buildproof is a secure online payment and project management system for homeowners, contractors and materials suppliers that remove the unnecessary financial risk and anxiety from home improvement and remodeling projects. Buildproof provides a protected environment for the entire home improvement and remodeling value chain that facilitates timely and proper payment, improves communication, sets clear milestones, and manages project timelines and deadlines efficiently. For additional information, please visit www.buildproof.com, e-mail info@buildproof.com or call 480-751-1012.

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