CITYSEARCH ANNOUNCES STRATEGIC PARTNERSHIP WITH MERCHANTCIRCLE, WEB’S FASTEST GROWING LOCAL BUSINESS NETWORK

· Deal Gives Citysearch Access to Web’s Largest Social Network of Local Merchants

· MerchantCircle to leverage Citysearch Content and Pay-for-Performance Business Model

WEST HOLLYWOOD, Calif. – (November 28th, 2007) – Citysearch, a leading online local guide and operating business of IAC (NASDAQ: IACI), today announced a strategic partnership with MerchantCircle, an online network and marketing company for local businesses. The deal represents Citysearch’s continued strategy to expand its footprint in local search and allows MerchantCircle to dramatically further its mission of bringing local business owners closer to customers. Terms of the transaction were not disclosed.

Through the deal, Citysearch will accelerate its growth by leveraging MerchantCircle’s scalable and fully automated platform for acquiring and engaging local merchants and distributing local content. MerchantCircle has successfully engaged over 300,000 proactive merchants to build out their profile page, upload photos, create coupons, and interact with millions of local customers online. Citysearch has the opportunity to tap into this large community of registered local merchants and paying customers.

In turn, MerchantCircle will have access to Citysearch’s millions of local businesses nationwide, and integrate the company’s Pay-For-Performance local advertising engine. MerchantCircle will also tap into Citysearch and Insider Pages’ vast databases of editorial content, user reviews, and merchant videos.

“MerchantCircle has proven its ability to engage local businesses at an extraordinary velocity,” said Jay Herratti, President of Citysearch. “Many of MerchantCircle’s members are new to the web, and creating content on their own without the help of web professionals. When combined with the assets and capabilities of Citysearch, there is a tremendous opportunity for both companies to transform local search and online advertising for local businesses.”

“Partnering with IAC and Citysearch now positions us to greatly accelerate MerchantCircle membership and revenues, allowing us to reach a greater audience of local consumers,” said Ben T. Smith IV, Chairman and Co-Founder of MerchantCircle. ”As the pioneer in local search, Citysearch will give us access to its rich local content and profitable monetization models that are unparalleled in the industry – helping us in our quest of bringing 5 million merchants online.”

Additional key details of the strategic partnership include:

* Co-Branded Sales Packages: As part of its automated marketing programs, MerchantCircle will offer three Citysearch-specific sales packages to merchants.
* Joint Membership for Merchants: Existing Citysearch members will have the opportunity to participate in the MerchantCircle community.
* Citysearch Advertising Sales Force: MerchantCircle will tap into Citysearch’s local sales staff and national advertising team.
* IAC Seat on MerchantCircle Board of Directors: As part of IAC investment, Peter Horan, CEO of IAC Media and Advertising, will join MerchantCircle’s Board of Directors.

“More local businesses realize Internet advertising is a critical part of their marketing mix and want simple and accessible services to help promote themselves online,” says Greg Sterling, Principal, Sterling Market Intelligence. “But the proliferation of consumer ratings and reviews means that small businesses also need effective methods to help track and manage their online reputations.”

About MerchantCircle

Founded in 2005, MerchantCircle is the largest online network of small business owners in the nation, combining social networking aspects with a customizable web listing that allows merchants to attract new customers. More than 14 million MerchantCircle business listings across the country are easily accessed on major search engines. Currently, over 300,000 merchants on the MerchantCircle network upload pictures, blog, build coupons, and newsletters, while also connecting with other business owners. MerchantCircle also gives business owners the power to manage their online reputation by aggregating reviews and increasing visibility across the web. MerchantCircle is located on Main St. in downtown Los Altos, Calif., and is funded by Rustic Canyon Partners, Scale Venture Partners, Disney’s Steamboat Ventures, and Citysearch, a property of IAC. Learn more at www.merchantcircle.com.

About Citysearch

Citysearch is a leading local search service, providing the most up-to-date information on businesses, from restaurants and retail, to travel and professional services. Citysearch empowers users to make informed decisions about where to spend their time and money by delivering more than 500,000 editorial and user reviews of local businesses. Through its unique Local Pay For Performance (PFP) service, Citysearch enables businesses to capture their most relevant customers online while paying only for the leads received. Citysearch is both the number one provider of in-depth restaurant information on the web, influencing more than a million people a month about where to eat, and the number three local directory, supplying information for every domestic zip code. Citysearch is an operating business of IAC (NASDAQ: IACI).

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Contact:

Jennifer Reeves

Citysearch

310.360.4403

Jennifer_Reeves {at} citysearch(.)com

Kevin Leu

MerchantCircle

650.352.1335 ext. 515

Kevin {at} merchantcircle(.)com