USA Networks, Inc. USAI and Hotel Reservation Network announced today that they have reached a definitive agreement pursuant to which USAi will purchase HRN, the leading worldwide provider of discount hotel accommodations via the Internet and telephone. HRN is expected to become an operating unit of USAi. Co-founders Robert Diener and David Litman will remain President and CEO of HRN, respectively. Terms of the transaction were not disclosed.

HRN is one of the fastest growing hotel booking sites on the Internet, offering its customers discounts of up to 65 percent off published rates and availability during heavily trafficked periods in over 600 hotels in 34 cities worldwide. HRN's Internet sites account for approximately 70 percent of the Company's revenue and provide travelers with a unique, one-stop-shopping source for hotel pricing, amenities and availability. Through its affiliate program, the Company has partnered with over 1,000 travel-related Internet sites, which offer discount hotel rooms through HRN's booking engine on a revenue share basis.

Barry Diller, Chairman and Chief Executive Officer of USA Networks, Inc. said, "Not unlike many interactive companies, HRN has had zooming growth since it offered Internet services in 1995. Unlike many others, it has substantial revenues and profits. We're delighted to be in business with them."

"This combination with USAi's extensive television, Internet and electronic commerce properties creates an unprecedented cross-promotional platform in the hotel booking industry," said Bob Diener, President of Hotel Reservation Network. "Each USAi asset will strengthen the HRN brand and broaden our exposure, increasing the potential for further online transactional growth. Additionally, HRN's presence in 34 cities worldwide fits naturally with the localism strategy woven throughout USAi's assets."

The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in June 1999.

USA Networks, Inc. is a diversified media and electronic commerce company with assets that include the following: USA Network; SCI FI Channel; Studios USA, which consists of first-run production & distribution, TV movies & miniseries and network production & development; USA Broadcasting; Home Shopping Network; Ticketmaster and USA Networks Interactive, which includes Internet Shopping Network, whose primary service is First Auction. The company also owns a controlling interest in Ticketmaster Online-CitySearch, Inc., a leading provider of local content and live event ticketing on the World Wide Web.

HRN's Internet booking service has been available to customers since 1995 and provides consumers the best medium to quickly and efficiently compare price, quality, location, amenities and availability of hotel rooms. Due to HRN's significant buying power, rooms that might otherwise be unavailable are often available on its Internet sites and in its call center 24 hours a day, 7 days a week. Cities serviced by HRN include New York, Boston, Washington D.C., Chicago, Los Angeles, San Francisco, Orlando/Disney World, Anaheim/Disneyland, New Orleans, Miami Beach, San Diego, Las Vegas, Paris and London. More information is available at and www.hoteldiscount.com or call 1-800-96-HOTEL.

Jennifer Goebel (USA Networks)
212/314-7373