NORWALK, Conn. & DALLAS--Priceline.com® PCLN and Travelweb LLC today announced a distribution agreement that gives web sites owned and operated by priceline.com access to Travelweb's network of more than 4,000 brand-name hotels and their net rate inventory.

Travelweb, LLC is revolutionizing the online travel industry with the first-ever, full-service, automated hotel distribution network and is owned by Marriott MAR, Hilton HLN, Hyatt, Six Continents SXC, Starwood Hotels HOT and Pegasus Solutions. All of Travelweb's founding hotel chains already participate in priceline.com's Name Your Own Price® hotel service.

Under the agreement, Travelweb will become the exclusive provider of published-price, net rate inventory in the U.S. and Canada that will be available on both Lowestfare.com, the retail travel service operated by priceline.com, and on priceline.com. The companies said they expect to integrate Travelweb's hotel inventory on these sites beginning in the 2nd quarter 2003.

Also as part of the agreement, priceline.com will take an equity stake in Travelweb LLC through an $8.5 million investment and priceline.com President and Chief Executive Officer Jeffery H. Boyd will assume a seat on Travelweb's Board of Directors.

"Priceline.com is delighted to have this agreement with Travelweb because we believe that Travelweb's distribution network will offer the best selection of disclosed-price hotel rooms and rates available for our customers," said Mr. Boyd.

"Travelweb was born out of a need for a smarter, more supplier-friendly way to sell hotel rooms online. Now we have a strategic relationship with priceline.com, a premier online travel distributor, which is a further testament to our business model," said Travelweb President and Chief Executive Officer Joe Humphry. "Teaming with priceline.com will significantly increase the reach of our distribution network giving consumers greater access to hotel rooms and rates, and increasing hotels' visibility, brand identity, and revenue."

Priceline.com said that the addition of Travelweb's hotel inventory and prices will add to the options and savings available to priceline.com and Lowestfare.com customers. It will also minimize reservation error because Travelweb is the first-ever integrated hotel distribution network with a direct connection to the hotels' central reservation systems. Priceline.com and Lowestfare.com currently offer top-quality hotel accommodations through more than 9,000 participating hotel properties in the U.S., Europe, Asia, Canada, Mexico and the Caribbean, which represents the most properties of any leading Internet hotel reservations service, according to the travel research group PhoCusWright.

On priceline.com, flexible travelers choose the exact neighborhood they want, the star quality of hotel they want, the dates they want and the price they want to pay for a room in a top-quality hotel. Priceline.com then works with its hotel partners to try to find one willing to accept the customer's price. "For customers whose travel needs require a particular hotel and for those who aren't successful in getting the price they name , priceline.com and Lowestfare.com can now offer them special savings through the net rate inventory being made available to us through Travelweb's distribution network," said Chris Soder, Executive Vice President of priceline.com's Lodging and Vacation Products.

About Priceline.com - Priceline.com offers products for sale in two categories: a travel service that offers leisure airline tickets, hotel rooms, rental cars, vacation packages and cruises; and a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee. Priceline.com also owns the Internet domain names and trademarks of LowestFare.com, another Web-based travel site. Priceline.com licenses its business model to independent licensees, including pricelinemortgage and certain international licensees.

About Travelweb LLC - Travelweb LLC, owned by Hilton Hotels Corporation, Hyatt Corporation, Marriott International, Six Continents Hotels, Starwood Hotels, and travel technology provider Pegasus Solutions, Inc., offers an innovative new method for the online distribution of hotel rooms. For hotel operators, Travelweb LLC automates the distribution of discounted rooms and brings new cost and time efficiencies to the market. Through Travelweb's private label offerings distributed through leading third-party Internet affiliates such as Orbitz, Priceline.com and , consumers have access to a full spectrum of hotel rooms and rates. Travelweb LLC is a private company headquartered in Dallas.

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 or war in Iraq; 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.

Nicole Hockin
214/424-8479
Travelweb