Priceline.com (PCLN)

Interest

For the year ended December 31, 2006, interest income on cash and marketable securities increased over the same period in 2005, primarily due to higher prevailing interest rates and significantly higher cash balances in the fourth quarter of 2006.  Interest expense increased for the year ended December 31, 2006 over the same period in 2005, due primarily to an increase in debt balances in 2006, as well as an increase in prevailing interest rates on the variable portion of the interest rate swap agreement related to our 1% Convertible Senior Notes.

Interest

For
the year ended December 31,
2006, interest income on cash and marketable
securities increased over the same period in 2005, primarily due to higher
prevailing interest rates and significantly higher cash balances in the fourth
quarter of 2006.  Interest expense
increased for the year ended December 31, 2006 over the same period in 2005, due primarily to an
increase in debt balances in 2006, as well as an increase in prevailing
interest rates on the variable portion of the interest rate swap agreement
related to our 1% Convertible Senior Notes.

Interest

For the three months ended March 31, 2007, interest income on cash and marketable securities increased over the same period in 2006, primarily due to $2.8 million of accrued interest on our excise tax refund, higher prevailing interest rates and significantly higher cash balances in the three months ended March 31, 2007.  Interest expense increased for the three months ended March 31, 2007 over the same period in 2006, due primarily to an increase in debt balances in 2006, as well as an increase in prevailing interest rates on the variable portion of the interest rate swap agreement related to our 1% Convertible Senior Notes.

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Interest

For the year ended December 31, 2005, interest income on cash and marketable securities increased over the same period in 2004, primarily due to higher prevailing interest rates.  Interest expense increased for the year ended December 31, 2005 over the same period in 2004 because our 2.25% Convertible Senior Notes issued in June 2004 were outstanding for the entire twelve month period in 2005.

Interest

For the three months ended March 31, 2006, interest income on cash and marketable securities increased over the same period in 2005, primarily due to higher prevailing interest rates. Interest expense increased for the three months ended March 31, 2006 over the same period in 2005 due to an increase in prevailing interest rates on

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the variable portion of the interest rate swap agreement related to our 1% Convertible Senior Notes.

Interest

For the twelve months ended December 31, 2004, net interest income on cash and marketable securities increased over the same period in 2003, primarily due to higher overall cash and investment balances.  Interest income was partially offset by interest expense, including coupon interest and amortization of debt issuance costs incurred in connection with the issuance of our $125 million

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Interest

For the three months ended March 31, 2005, net interest income on cash and marketable securities increased over the same period in 2004 primarily due to higher overall cash and investment balances as well as higher prevailing interest rates. Interest income was partially offset by interest expense, including coupon interest and amortization of debt issuance costs incurred in connection with the issuance of our $125 million aggregate principal amount 1% Convertible Senior Notes issued in August 2003, and our $100 million aggregate principal amount 2.25% Convertible Senior Notes issued in June 2004.