LendingTree Secures $50 Million in Financing Marking One of the Top Internet Funding Deals of 1999

Business Wire, Sept 21, 1999

CHARLOTTE, N.C.--(BUSINESS WIRE)--Sept. 21, 1999--

Capital Z, GE Capital, Goldman Sachs, Marsh & McLennan

and priceline.com fund LendingTree's third round of financing

LendingTree, Inc., the online loan marketplace that connects consumers with a network of lenders who compete for their business, today announced that the company has completed its third round of financing totaling $50 million in private equity capital.

The group of corporate and institutional investors, led by Capital Z Financial Services Fund II, L.P, includes GE Capital, The Goldman Sachs Group, Inc., Marsh & McLennan Capital and priceline.com. The $50 million round is distinguished as one of the top Internet funding deals of 1999.(1) The terms of the transactions were not disclosed.

LendingTree will employ the capital raised in the financing to intensify marketing efforts specifically focused on brand building among consumer and business audiences. The funds will also be used to accelerate the development of the company's business plan, capitalizing on LendingTree's status as a unique and comprehensive online loan marketplace.

"This round of financing is particularly gratifying due to both the collective value provided by this prestigious group of investors and the fact that this is one of the top Internet funding rounds of 1999," remarked Doug Lebda, founder and CEO of LendingTree. "We're going to use this money to bring LendingTree to the attention of millions of consumers, enabling them to benefit from our marketplace model that provides multiple loan offers from the over 80 national and regional lenders on the LendingTree Network."

"LendingTree's online loan marketplace is one of the most attractive financial services offerings on the Web today," said Adam Mizel, a partner of Capital Z and representative of the new investor group. "The financial services industry continues to move quickly to find new and exciting ways to profitably use the Internet to provide consumers with value-added products and services. We believe that by providing consumers direct access to a competitive marketplace through the LendingTree site as well as through the Company's business to business "powered by Lending Tree" services, LendingTree will continue to lead this trend."

LendingTree's online loan marketplace presents distinctive and unique benefits for both consumers and lenders. By merging a user-friendly and time-saving loan resource with a wealth of personal finance content and interactive tools, LendingTree has established itself as the most valuable destination for consumers in search of a loan to purchase a home or car, refinance a mortgage, pay off debt, or apply for a credit card. By quickly matching would-be borrowers with the over 80 national and regional lending institutions on the LendingTree network, the LendingTree model enables lenders to expand their consumer base nationwide, while simultaneously saving these institutions the time and costs associated with traditional methods.

"Through LendingTree, priceline.com has been offering name-your-price mortgages, refinancing and home equity loans since February 1999," said Richard S. Braddock, Chairman and CEO of priceline.com. "LendingTree has enabled priceline.com to provide our consumers with a premier loan resource that lets them name their own price for home mortgages."

Throughout 1999 LendingTree experienced a steady exponential growth, the number of Lenders on the Network increased from an original nine lenders to over 80, with more being added on daily. LendingTree currently processes over $65 million a day in loan demand from consumers seeking home mortgages, home equity, automobile financing, personal loans and credit cards.

About Capital Z

Based in New York, Capital Z Financial Services Fund II, L.P., is a $1.85 billion global private equity fund that focuses exclusively on investments in the insurance, financial services, healthcare services and related technology industries. The fund's technology portfolio includes Wit Capital, ChannelPoint, Brodia and Enba. CZF II, which was formed in August 1998, is managed by Capital Z Partners, a global alternative asset management firm headquartered in New York City with offices or affiliates in London and Hong Kong. Capital Z Partners also manages Capital Z Investments, L.P., a $1.5 billion global fund which focuses exclusively on investments in private equity funds, hedge funds and other alternative investment vehicles. Since 1990, Capital Z Partners and its predecessor funds have invested in excess of $1.7 billion in nearly 50 transactions.

About GE Capital

GE Capital, with assets of more than US$300 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.