NORWALK, Conn.--(BUSINESS WIRE)--July 26, 2000--Priceline.com (Nasdaq: PCLN) is now making available to its airline customers an optional travel insurance package for their trip that offers coverage for trip cancellation, medical expenses, emergency evacuation, and loss of baggage, property and travel documents through an agreement with member companies of American International Group, Inc. (AIG).

During the first 6 months of 2000, priceline.com sold over 2.5 million leisure airline tickets. "We are pleased to make this insurance package available to our customers," said Trey Urbahn, President of Priceline Air Travel Services Group. "Now, customers who would like additional peace of mind can purchase travel insurance from AIG member companies that provides coverage on their trip and reimbursement in the event of such things as illness, injury and even baggage theft."

Under the agreement, priceline.com will receive a fixed fee from AIG member companies for every optional insurance package purchased. Priceline.com's travel insurance package, underwritten by AIG member company American Home Assurance Company*, includes:

• Trip cancellation/trip interruption. Covered travelers and
  
  their traveling companion can be reimbursed the cost of their priceline.com airline tickets if they have to cancel or interrupt their trip due to unforeseen illness, injury or death.

• Worldwide Assistance Services. Covered travelers receive worldwide emergency assistance services. Services include pre-departure travel planning, physician and hospital referrals, assistance with lost or stolen travel documents, insurance claims coordination, and coordination of any required medical evacuation. The Assistance Services program is offered by AIG International Services, Inc., an AIG member company.
  
  

• Medical expenses. Covered travelers can be reimbursed up to $1,500 for emergency medical treatment for illness or injury occurring on your trip.

• Emergency evacuation. Covered travelers can receive up to $50,000 to cover any required emergency evacuation in the case of illness or injury.

• Baggage protection. Covered travelers can be reimbursed up to $500 for loss, theft or damage to their luggage during a trip.

• Accidental death coverage. The travel insurance package also provides $10,000 worth of accidental death coverage.
  
  

(a) The above-described insurance coverage may not be available in all states, and the above description thereof is neither a complete description nor a complete list of all terms, conditions and exclusions.

The travel insurance program is made available to every eligible customer who makes an offer for a priceline.com airline ticket. If a traveler chooses the insurance program, the cost is charged to the traveler's credit card only if he or she succeeds in getting a priceline.com airline ticket. If the traveler's ticket offer is not successful, the cost of the insurance package is not charged.

About AIG

AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the U.S. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market management, real estate investment management, and retirement savings products. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

About priceline.com

Priceline.com is the patented Name Your Own Price(sm) Internet pricing system that provides services across four broad product categories: a travel service that offers leisure airline tickets, hotel rooms and rental cars; a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee; an automotive service that offers new cars, and a telecommunications service that offers long distance calling services. Priceline.com licenses its business model to independent licensees, including Priceline WebHouse Club, Inc., which offers a Name Your Own Price(sm) service for groceries and gasoline; PricelineMortgage , Priceline Perfect YardSale, Inc., a local-market, consumer-to-consumer selling service, and certain international licensees. In these arrangements, priceline.com generally receives royalties for licensing its intellectual property. Priceline.com also holds securities carrying the right to purchase a significant equity stake in the licensees under certain conditions. Unless those rights are exercised, the results of licensee operations will not be included in priceline.com's financial statements.

Priceline information about forward looking statements

This press release may contain 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," 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: inability to successfully expand the Company's business model both horizontally and geographically; management of the Company's rapid growth; adverse changes in the Company's relationships with airlines and other product and service providers; systems-related failures; the Company's ability to protect its intellectual property rights; the effects of increased competition; anticipated losses by the Company and its licensees; 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 and Form 10-K filings with the Securities and Exchange Commission.

CONTACT:

priceline.com
Brian Ek
203/299-8167
(brian.ek@priceline.com)
or
priceline.com
Mike Darcy
203/299-8168
(mike.darcy@priceline.com)