Thomas J. McInerneyEVP & Chief Financial Officer

March 2006

2

Building Businesses Across the Consumer Spectrum

Media

Membership

Services

Retailing

3

Supply Network

Rounded unaudited estimates and subject to change

~ 2,000 Merchandise vendors

9,000 Ticketing clients

460 Mortgage lenders

7,100 Realty brokers / agents / builders

40,000 Home service providers

37,000 PFP locations

2,200 Resort properties

70,000 Merchants offering discounts

4

Multiple Brands

5

Establishing Market Leaders

When Banks Compete, You Win.• 83% brand awareness

Love is Complicated. Match is Simple.• World’s largest dating site

Use Tools, Feel Human.• 20% market share increase in 2005

6

Distinct Consumer Offerings

7

Distinct Merchant Offerings

8

2005 Financial Summary$ in millions

Adjusted excludes Cornerstone Brands (acquired 4/1/05), Ask (acquired 7/19/05), and spin-off expenses.

$5,754

$4,188

2004 2005

37% growth18% adjusted

Revenue

$668

$422

2004 2005

59% growth44% adjusted

OperatingIncomeBefore

Amortization

$5,754

$4,188

$668

$422

2004 2005 2004 2005

9

Most Established Businesses$ in millions

$173

$282

2003 2005

28% CAGR

17% HSN

OperatingIncomeBefore

Amortization

$282

$173

2003 2005

29% CAGR

OperatingIncomeBefore

Amortization

$111

$66

2003 2005

$145

$219

2003 2005

23% CAGR

OperatingIncomeBefore

Amortization

2003 2005

$219

$145

10

Selling More Tickets, Better

11

Expanding Globally

27%

25%

20%

17%

14%14%

200520042003200220012000

FinlandSweden

DenmarkThe Netherlands

NorwayIreland

AustraliaNew Zealand

Germany

International % of Ticketing Revenue

Markets Added to Results

12

Source: 2005 market size estimate per MBAA (December 2005); lender data per Inside Mortgage Finance (2/05).

Pursuing a Large Lending Opportunity

~40,000Brokers~60%

Top 15 Retail Producers

~30%

~10,000 SmallerLenders~10%

LendingTree$27.8 Billion

$2.8 Trillion U.S. Mortgage Market (2005 est)

13

Track Record$ in millions

Source: U.S. mortgage market growth derived from MBAA data ((December 2005)).

2002 2003 2004 2005 est

LT Lending Revenue Y/Y

U.S. Mortgage Market Y/Y

72%

42%

10%

131%

27%34%

-27%

0%

14

Introducing Ask.com

15

Maps & Directions

16

Weather

17

Web Answers / Zoom

18

Binoculars

19

Source: comScore Q Search, February 2006.

Gaining Share U.S. Search Queries

31.1%

16.3%

36.3%

8.9%

5.3%6.0%8.0%

13.4%

27.6%

42.3%

February 2005 February 2006

Ask Search Properties

20

Consolidated Financial Summary$ in millions

$5,754

$4,188

2004 2005

$688

$422

2004 2005

Revenue

OperatingIncomeBefore

Amortization

37% growth

59% growth

$5,754

$4,188$668

$422

2004 2005 2004 2005

$702

$348

2004 2005

FreeCashFlow

102% growth

$348

$702

2004 2005

21

Shares Outstanding

As reported on the dates indicated, with the 2/10/05 share counts reverse split adjusted.

2/10/05

349 million

374 million

320 million

342 million

Diluted

Absolute

2/3/06

22

Net CashAs of December 31, 2005

* $1.3 billion gross debt less $362 million LendingTree Loans debt that is non-recourse to IAC.

$2.6 billion

$1.6 billion

$1.0 billion

Cash / Restricted Cash& Marketable Securities

Net Cashpro forma

Debt*

$2.6 Billion

$1.6 Billion

$1.0 Billion

24

Important Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995

This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to anticipated financial performance, business prospects, new developments and similar matters, and/or statements that use words such as "anticipates," "estimates," "expects," "intends," "believes" and similar expressions. These forward-looking statements are necessarily estimates reflecting the best judgment of IAC’s senior management, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties are described in IAC’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended 2004, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and 2005 Annual Proxy Statement. Other unknown or unpredictable factors also could have material adverse effects on IAC’s future results, performance or achievements. In light of these risks and uncertainties, the forward-looking events discussed in this presentation may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this presentation.

IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this presentation to reflect circumstances existing after the date of this presentation or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Prepared March 2006

25

Reconciliation Operating Income Before Amortization to Operating Income$ in thousands; rounding differences may exist

2005 2004

Operating Income Before Amortization 668,277$ 421,552$

Amortization of non-cash compensation expense 137,537 70,326 Amortization of non-cash distribution and marketing expense - 1,302 Amortization of intangibles 186,511 185,388

Operating income 344,229 (20,244)

Total other income, net 647,456 152,536 Income tax expense (391,069) (74,266) Minority interest in income of consolidated subsidiaries (2,229) (3,159) Gain on sale of Euvia, net of tax 70,152 - Income from discontinued operations, net of tax 207,611 109,994 Preferred dividends (7,938) (13,053)

Net earnings available to common shareholders 868,212$ 151,808$

Twelve Months Ended December 31,

26

Reconciliation Operating Income Before Amortization to Operating Income$ in millions; rounding differences may exist

2005 2003

U.S. Retailing

Operating Income Before Amortization 276.6$ 168.3$

Amortization of Non-Cash Items 59.9 50.8

Operating Income 216.7$ 117.5$

2005 2003

Ticketing

Operating Income Before Amortization 218.7$ 144.5$

Amortization of Non-Cash Items 28.7 28.0

Operating Income 189.9$ 116.5$

2005 2003

Vacations

Operating Income Before Amortization 110.7$ 66.2$

Amortization of Non-Cash Items 25.2 25.2

Operating Income 85.5$ 41.0$

Twelve Months Ended December 31,

Twelve Months Ended December 31,

Twelve Months Ended December 31,

27

Reconciliation GAAP EPS to Adjusted EPS

$ in thousands (except per share amounts); rounding differences may exist

2005 2004

Diluted earnings (loss) per share 2.46$ 0.41$

GAAP diluted weighted average shares outstanding 356,618 371,211 Net earnings (loss) available to common shareholders 868,212$ 151,808$ Amortization of non-cash compensation 137,537 70,326 Amortization of non-cash distribution and marketing expense - 1,302 Amortization of intangibles 186,511 185,388 Goodwill impairment - 184,780 Equity in the income of VUE (21,960) (16,188) Net other (income) expense related to fair value adjustment on derivatives (4,574) - Gain on sale of VUE (523,487) - Gain on sale of Euvia, net of tax (70,152) - Discontinued operations, net of tax (207,611) (109,994) Impact of income taxes and minority interest 106,743 (96,720) Interest on convertible notes 1,179 - Preferred dividends - - Adjusted Net Income 472,398$ 370,702$

Adjusted EPS weighted average shares outstanding 355,961 374,761

Adjusted EPS 1.33$ 0.99$

GAAP Basic weighted average shares outstanding 329,459 347,989 Options, warrants and restricted stock, treasury method 19,367 23,222 Conversion of convertible preferred and convertible notes (if applicable) 7,792 -

GAAP Diluted weighted average shares outstanding 356,618 371,211

Pro forma adjustments - - Options, warrants and RS, treasury method not included in diluted shares above - - Impact of restricted shares and convertible preferred and notes (if applicable), net (657) 3,550

Adjusted EPS shares outstanding 355,961 374,761

Twelve Months Ended December 31,

28

Reconciliation Operating Cash Flow from Continuing Operations to Free Cash Flow

2005 2004

Net cash (used in) provided by operating activities attributable to continuing operations (72.3)$ 503.7$

Increase in warehouse loans payable 162.8 25.2

Capital expenditures (241.5) (167.8)

Tax payments related to the sale of VUE interests 862.6 -

Preferred dividends paid (9.6) (13.1) Free Cash Flow 702.1$ 348.0$

Twelve Months Ended December 31,

$ in millions; rounding differences may exist

29

Reconciliation Reported Results to Adjusted Results

$ in millions; rounding differences may exist

%2005 2004 Variance

Revenue

IAC (as reported) 5,753.7$ 4,188.3$ 37.4%

Less Ask/Cornerstone 818.9 -

IAC (adjusted) 4,934.8 4,188.3 17.8%

Operating Income Before Amortization

IAC (as reported) 668.3$ 421.6$ 58.5%

Less Ask/Cornerstone/Spin-off expenses 59.5 -

IAC (adjusted) 608.8 421.6 44.4%

Op. Income

IAC (as reported) 344.2$ (20.2)$ nm

Less Ask/Cornerstone/Spin-off expenses 29.1 -

IAC (adjusted) 315.2 (20.2) nm

Twelve Months Ended December 31,