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IAC (Nasdaq: IACI - News) released third quarter 2006 results today, reporting over $1.6 billion in revenue, an 11% rate of growth over the prior year, and $172 million of Operating Income Before Amortization, reflecting a similar growth rate. Adjusted EPS was $0.35, compared to $0.32 in the year ago period.

Free cash flow generated during the first nine months of 2006 was $310 million. Net cash provided by operating activities was $516 million. Operating income grew significantly in the third quarter to $110 million reflecting, in part, a charge in the year ago period related to the treatment of vested stock options in connection with the Expedia spin-off. GAAP Diluted EPS for the quarter was $0.24, compared to $0.20 in the prior year period.

IAC repurchased 7.3 million shares of common stock at an average price of $26.44 between July 28 and October 27, 2006. During 2006, IAC has repurchased 34 million shares at an average price of $26.75, and has 8.8 million shares remaining in its current stock repurchase authorization. IAC also announced today that its Board of Directors has authorized the Company to repurchase up to an additional 60 million shares of common stock.

Revenue for the quarter reflects a modest increase in Retailing U.S. with flat revenue from HSN. The Services sector continued to benefit from strength in Ticketing, but was negatively impacted by market conditions in Lending. Continued growth at contributed to strong revenue performance in the Media & Advertising sector. Overall, revenue in the quarter reflects increased year-over-year contributions from every sector within IAC.

Commenting on the third quarter results, Barry Diller, Chairman and CEO of IAC said: "We are unabashedly building an interactive conglomerate. We have three interrelated strategies: one, the growth of each of our businesses; two, as the connecting thread; and three, all our cross company efforts which allow us to leverage our audience, scale and diversified expertise."
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