Good morning ladies and gentlemen, and thank you for standing by. Welcome to the IAC fourth quarter earnings conference call. (Operator Instructions) This conference is being recorded, Wednesday, February 6, 2008. I would now like to turn the call over to Tom McInerney, Chief Financial Officer. Please go ahead sir.

Thank you operator, and thank you everyone for joining us today. Joining me on the call is our Chairman and CEO, Barry Diller. During this call we may discuss our outlook for future performance. These forward-looking statements typically are preceded by words such as we expect, we believe, we anticipate, or similar statements. These forward-looking statements are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in our Q4 2007 press release, and our periodic reports filed with the SEC. We will also discuss certain non-GAAP measures. I refer you to our press release, and the investor relations sections of our website, for all comparable GAAP measures and full reconciliations. We're now very much in a transitional phase as we plan and execute the spin-off transactions. I will update you on these efforts in just a few moments, but first I want to touch on the operating results for the fourth quarter. I'll go through this by focusing on each of the five companies to be established by the spin-offs. First to retailing. Turnaround at HSN is in full force, with revenue growing 8% in Q4, excluding America's Store, and profits growing proportionately. Drivers of the turnaround remain the same, as improved sales efficiency across the majority of product categories. Gross margins were down a quarter of a point, due almost exclusively to pressure on that shipping revenue, as costs continued to rise, and we offered more shipping promotions to drive customer engagement. We continued our progress in managing margin and inventory levels. We enter 2008 optimistic, albeit of course a bit cautious, given the macroeconomic environment, but we believe we are better positioned than last year to see our strategies take hold, and realize top and bottom-line growth. Catalogs business had a challenging fourth quarter. This was a combination of specific merchandising and execution issues at certain titles, plus a very different macro environment for retailers, particularly in the home category. Overall, sales were up slightly, but profits were down materially as margin rates were negatively impacted by heavy promotional activity, given the environment, and operating expenses were slightly higher due to investments we made before the environment worsened. We're spending the first quarter completely recalibrating our 2008 plans for this business. Inventory purchases and expenses have been reduced, capital spending plans have been cut by one-third, and merchandising and mailing strategies are being revisited. It's premature at this stage to translate these actions to figures, but I think at least the first six months of the year will be a challenge in this business, and we'll evaluate from there. Now to Ticketmaster which once again posted record worldwide ticket volumes. Revenue for the quarter grew 27% on international ticket sales growth of 30%, and domestic ticket sales growth of 7%. Concert tickets represented 51% of the ticket mix, relative to 49% in the year-ago period.

Ladies and gentlemen, one moment please, we are experiencing technical difficulties. The conference call will resume momentarily.

..market, by closing the Paciolin acquisition in January. This last month, we also announced the acquisition of TicketsNow in the US, and GET ME IN! in the UK. Additionally, Ticketmaster recently signed secondary market deals with the NFL, NBA and NHL, and extended its contract in the primary market with MLB. I said on our last call that while it would be unreasonable to expect to replace the Live Nation volume we will lose in 2009 with any one action, it would be a multi-pronged effort. We think these actions, coupled with our ongoing efforts to extend Ticketmaster's lead on a global basis, puts us in a strong position for 2008 and beyond. We do, however, expect Q1 to be our toughest comp of the year. As you'll recall, it was a very strong quarter a year ago, pulling some volume from the second quarter. As such, with visibility into one month of the quarter, growth in the first quarter is unlikely, but we will have better comps after Q1. Turning now to LendingTree. The business continues to operate in a difficult mortgage environment, and the fourth quarter we took a $476 million non-cash charge related to the write-down of goodwill and intangible assets for the lending business. For the quarter, revenue declined 58%, with the drivers of this the same as they have been all year. Profit declines reflect 11 million in restructuring costs, and an 8 million provision for losses on previously sold loans. In 2007, we shrunk the LendingTree workforce by 57%, removing over 110 million in annual non-marketing expenses. We also reduced marketing expenses substantially. Breakeven is the near-term goal while we await better market conditions, and in Q1, we expect to be closer to that point. Fed has cut rates 175 basis points since our…

Good morning. We had a tough fourth quarter with both good and bad news for a mix of reasons that’s already been covered by Tom. For those of us who work in the company, what the quarter was primarily about was intensive planning for the spins, their organization and their strategies. That work’s gone extremely well. We are doing every right thing in pursuing the course of splitting IAC into five parts. These companies and their managements will be far better served being solely focused with independent boards that can directly supervise their progress. I can’t imagine a better scenario for shareholders and let me tell you specifically why. HSN has definitely turned the corner in operating with consistent skill over the last month in every area of its operations. Mindy Grossman is a superb executive fully capable of leading a public retailing company. Ticketmaster as Tom just told you has just completed the quarter with record worldwide ticket sales. It’s just announced a very strategic acquisition of tickets now, which is the number two player in secondary ticketing. It has a critical number of initiatives its undertaking as the live event industry evolves and has some fine management team under Sean Moriarty its CEO. LendingTree, now back under the direct operation of Doug Lebda, its founder, it's slimmed its business down to meet the demands of the turbulent mortgage and real estate markets and I have no doubts – none – that LendingTree is going to emerge from the current mortgage mess. Its brand has lost no equity it still gets a huge number of loan requests and as I’ve said to Doug, whatever it comes out at as a public company is going to provide a lot of wealth creation for those that have invested. Interval is a…