LendingTree, Inc.
Apr 30, 2010

Tree.com Reports First Quarter 2010 Results

CHARLOTTE, N.C., Apr 30, 2010 (GlobeNewswire via COMTEX News Network) -- Tree.com, Inc. (Nasdaq:TREE) today announced Q1 2010 Adjusted EBITDA of $0.8 million, an improvement of $0.4 million over the prior quarter and an $8.4 million decrease from prior year. Tree's first quarter 2010 revenue was $48.0 million, up from $47.8 million in Q409. Including $2.6 million in restructuring charges, principally for the building consolidation announced last quarter, Tree reported a GAAP loss of $0.56 per share on a net loss of $6.1 million, an improvement over the loss of $1.92 per share in the prior quarter on a net loss of $21 million.

Doug Lebda, Chairman and CEO of Tree.com stated, "Overall, I am cautiously pleased with the performance of our core business in the first quarter. Both the Exchanges and the LendingTree Loans segments reported positive results despite the continuing headwinds in the mortgage market. The difficult economic conditions and normal seasonality also took a toll on our real estate business. It is precisely for this reason that our strategy of building out new non-mortgage verticals is so critical, and we are looking forward to the launch of the Tree.com site this summer."

Tree.com CFO Matt Packey added, "In this tough market, we are pleased to be able to deliver another positive Adjusted EBITDA quarter. Our focus on disciplined spending has allowed us to lever up our marketing to achieve flat revenue quarter-over-quarter while keeping the Adjusted EBITDA in positive territory. However, with real estate values staying low, upward pressure on interest rates and government stimulus fading, we will need to continue to push hard toward achieving the lower end of our earnings guidance for the year."

                         Tree.com Summary Financial Results

                      $s in millions (except per share amounts)
  ---------------------------------------------------------------------------------

                                                            Q/Q               Y/Y

                                                              %                 %
                                      Q1 2010    Q4 2009   Change   Q1 2009  Change
                                     ---------  ---------  ------  --------  ------
  Revenue                               $ 48.0     $ 47.8      0%    $ 57.3   (16%)

  Cost of Revenue*                      $ 14.0     $ 16.5   (15%)    $ 18.1   (23%)


  Operating Expenses*                   $ 33.2     $ 30.9            $ 30.0
                                     ---------  ---------      7%  --------     11%

  Adjusted EBITDA**                      $ 0.8      $ 0.4    122%     $ 9.2   (91%)
  EBITDA**                             $ (2.9)   $ (18.5)     84%     $ 6.1    147%

  Restructuring                          $ 2.6      $ 2.8    (8%)     $ 0.8    210%
  Litigation Settlements and
   Contingencies                         $ 0.0     $ 12.8      NM     $ 0.4   (96%)

  Net Income/(Loss)                    $ (6.1)   $ (21.0)     71%     $ 3.2    295%

  Net Income/(Loss) Per Share         $ (0.56)   $ (1.92)     71%    $ 0.33    270%
  Diluted Net Income/(Loss) Per
   Share                              $ (0.56)   $ (1.92)     71%    $ 0.32    275%

  NM = Not Meaningful
  * Does not include non-cash compensation, depreciation, gain/loss on disposal of
   assets, restructuring, amortization, impairment, or litigation settlements and
   contingencies.
  ** See separate reconciliation of Adjusted EBITDA and EBITDA to GAAP Operating
   Income/Loss.

Information Regarding Q1 Results

  --  First quarter 2010 revenue was virtually flat quarter-over-quarter and
      decreased 16% year-over-year.   Quarter-over-quarter, we saw stronger
      performance from the LendingTree Loans and Exchanges segments as low
      rates, higher advertising levels, and expansion of our new verticals led
      to top-line improvements. These gains were offset somewhat by continued
      declines in the Real Estate Segment due to significant deteriorations in
      the number of closings and average transaction values as average home
      price has continued to decline.   The year-over-year decrease reflects
      the refi-boom impact of first quarter 2009, when historically low rates
      and significant media and government attention created unprecedented
      consumer refinance demand.
  --  First quarter 2010 Adjusted EBITDA improved $0.4 million
      quarter-over-quarter, despite the increased investment in marketing,
      with the LendingTree Loans and Lending Exchanges segments each reporting
      positive results in the quarter from revenue growth. Adjusted EBITDA
      decreased $8.4 million year-over-year, reflecting both lower revenue and
      the return to normalized levels of advertising spend in first quarter
      2010 compared to the prior year when we significantly curtailed
      marketing spend and achieved higher revenue because of a market driven
      surge in refinance activity.


A chart describing average 30-year fixed mortgage rate recent trends is available at http://media.globenewswire.com/cache/10613/file/8181.pdf

Business Unit Discussion

LENDINGTREE LOANS SEGMENT

                         LendingTree Loans Segment Results

                                   $s in millions
  -------------------------------------------------------------------------------

                                                         Q/Q                Y/Y

                                                           %                  %
                                   Q1 2010    Q4 2009   Change   Q1 2009   Change
                                  ---------  ---------  ------  ---------  ------
  Revenue - Direct Lending
   Origination and Sale of Loans     $ 23.4     $ 20.6     13%     $ 32.8   (29%)

   Other                              $ 2.3      $ 2.3              $ 1.6
                                  ---------  ---------      0%  ---------     45%
  Total Revenue - Direct Lending     $ 25.7     $ 22.9     12%     $ 34.4   (25%)

  Cost of Revenue*                   $ 10.2     $ 10.2    (1%)     $ 11.9   (14%)


  Operating Expenses*                $ 12.7      $ 9.8              $ 7.2
                                  ---------  ---------     30%  ---------     78%

  Adjusted EBITDA**                   $ 2.8      $ 2.9    (5%)     $ 15.3   (82%)
  EBITDA**                            $ 2.6      $ 2.6      2%     $ 15.0   (83%)

  Litigation Settlements and
   Contingencies                      $ 0.0      $ 0.1      NM      $ 0.4   (96%)

  Operating Income                    $ 2.1      $ 1.9     14%     $ 14.2   (85%)

  Metrics - Direct Lending
   Purchased loan requests
    (000s)                             59.2       61.5    (4%)       57.7      3%
   Closed - units (000s)                2.7        2.7      1%        3.3   (16%)
   Closed - units (dollars)         $ 608.5    $ 622.6    (2%)    $ 714.8   (15%)

  NM = Not Meaningful
  * Does not include non-cash compensation, depreciation, gain/loss on disposal
   of assets, restructuring, amortization, impairment, or litigation settlements
   and contingencies.
  ** See separate reconciliation of Adjusted EBITDA and EBITDA to GAAP Operating
   Income/Loss.

LendingTree Loans

First quarter 2010 revenue increased 12% quarter-over-quarter on flat closed units and slightly lower average loan amounts. The quarter-over-quarter increase was primarily due to the fact that fourth quarter 2009 included $4.8 million more in loan losses as a result of loan loss settlements in that period. First quarter revenue decreased 25% from the same period last year on a 16% decrease in closed units and a 10% decrease in the average revenue per loan. We anticipated a year-over-year decline as first quarter 2009 was bolstered by extraordinary levels of refinance loan activity.

Operating expenses increased $3.0 million quarter-over-quarter and $5.6 million year-over-year largely driven by increased marketing spend. The quarter-over-quarter increase in marketing was the result of a normal seasonal uptick in spend, in addition to an investment in testing and implementing new sources of lead volume. The lending segment has also undertaken an expansion of its team of loan officers. In the first quarter, LendingTree Loans had a net addition of nearly 20 LOs, a greater than 10% increase over the prior quarter. This investment in licensing and training will position this segment well for a favorable market when it does return.

EXCHANGES SEGMENT

                           Exchanges Segment Results

                                 $s in millions
  ----------------------------------------------------------------------------

                                                    Q/Q                  Y/Y

                                                      %                    %
                              Q1 2010    Q4 2009   Change    Q1 2009    Change
                             ---------  ---------  ------  -----------  ------
  Revenue - Exchanges
   Match Fees                   $ 14.2     $ 12.3     15%       $ 10.0     42%
   Closed Loan Fees              $ 3.3      $ 5.3   (37%)        $ 6.4   (48%)
   Inter-segment Revenue         $ 7.7      $ 5.1     50%        $ 1.9    296%

   Other                         $ 0.9      $ 0.4                $ 0.8
                             ---------  ---------    113%  -----------     20%
  Total Revenue - Exchanges     $ 26.1     $ 23.1     13%       $ 19.1     37%

  Cost of Revenue*               $ 1.1      $ 1.9   (40%)        $ 1.9   (40%)


  Operating Expenses*           $ 21.3     $ 17.5               $ 14.7
                             ---------  ---------     21%  -----------     45%

  Adjusted EBITDA**              $ 3.7      $ 3.7      0%        $ 2.5     45%
  EBITDA**                       $ 3.2      $ 1.4    128%        $ 1.7     87%
  Operating Income               $ 2.6      $ 0.7    281%        $ 1.5     76%

  Metrics - Exchanges
   Matched requests (000s)       337.1      279.3     21%        366.3    (8%)
   Closing - units (000s)          9.1       11.6   (22%)         14.3   (36%)
   Closing - units
    (dollars)                  1,663.4    2,291.5   (27%)    $ 2,625.0   (37%)

  NM = Not Meaningful
  * Does not include non-cash compensation, depreciation, gain/loss on
   disposal of assets, restructuring, amortization, impairment, or litigation
   settlements and contingencies.
  ** See separate reconciliation of Adjusted EBITDA and EBITDA to GAAP
   Operating Income/Loss.

Exchanges

Exchanges revenue in first quarter 2010 increased 13% compared to Q409 and 37% compared to first quarter 2009. Match fee revenue has improved 15% Q/Q and 42% Y/Y due largely to the expansion of our new consumer services (education, auto and home services), which now account for more than 50% of our matched consumer requests. Additionally, pricing changes on the lending exchange increased the average match fee and decreased the average closed loan fee earned from network lenders. This planned pricing action, with a greater emphasis on up-front match fee revenue, more closely aligns the value of the transaction with our marketing efforts. Inter-segment revenue has increased significantly Q/Q and Y/Y reflecting higher volume sold and a higher transfer price (cost plus margin) charged to LendingTree Loans.

Operating expenses increased $3.7 million quarter-over-quarter and increased $6.6 million year-over-year. The increases Q/Q are the result of higher seasonal marketing expense on the lending exchanges as well as the expanded marketing spend on our new consumer verticals. On a Y/Y basis, the increased spend primarily reflects the very low levels of spend in first quarter 2009 as a result of the market-driven surge in refinance activity.

                           Real Estate Segment Results

                                 $s in millions
  -----------------------------------------------------------------------------

                                                       Q/Q                Y/Y

                                                         %                  %
                                 Q1 2010    Q4 2009   Change   Q1 2009   Change
                                ---------  ---------  ------  ---------  ------
  Total Revenue - Real Estate       $ 3.9      $ 6.9   (43%)      $ 5.8   (32%)

  Cost of Revenue*                  $ 2.5      $ 4.3   (43%)      $ 3.9   (36%)


  Operating Expenses*               $ 2.3      $ 2.5              $ 4.8
                                ---------  ---------    (5%)  ---------   (52%)

  Adjusted EBITDA**               $ (0.9)      $ 0.1      NM    $ (2.9)     69%
  EBITDA**                        $ (1.0)    $ (2.5)     63%    $ (3.8)     75%
  Operating Loss                  $ (1.9)    $ (3.6)   (46%)    $ (5.2)   (63%)

  Metrics - Real Estate
   Closing - units (000s)             0.8        1.3   (38%)        1.2   (32%)
   Closing - units (dollars)      $ 164.6    $ 278.3   (41%)    $ 281.4   (42%)
   Agents - RealEstate.com,
    REALTORS(R)                       910      1,145   (21%)      1,213   (25%)
   Markets - RealEstate.com,
    REALTORS(R)                        20         20      0%         20      0%

  NM = Not Meaningful
  * Does not include non-cash compensation, depreciation, gain/loss on disposal
   of assets, restructuring, amortization, impairment, or litigation
   settlements and contingencies.
  ** See separate reconciliation of Adjusted EBITDA and EBITDA to GAAP
   Operating Income/Loss.

Real Estate

First quarter 2010 Real Estate revenue decreased $3.0 million, or 43%, from Q409 and $1.9 million, or 32%, from first quarter 2009. These decreases are primarily due to continued declines in the number of total real estate transactions (down 38% quarter-over-quarter and 32% year over year) and lower average home prices (down 5% quarter-over-quarter and 13% year-over-year). Additionally, first quarter 2010 ended with 21% fewer agents quarter-over-quarter and 25% fewer agents year-over-year.

Adjusted EBITDA declined $1.0 million quarter-over-quarter and improved $2.0 million year-over-year. The quarter-over-quarter deterioration was driven by the lower revenue in the period. The primary driver of the year-over-year improvement in Adjusted EBITDA, despite lower revenue, is lower operating expense which decreased $2.5 million year-over-year. The reductions in operating expense were across marketing as well as general and administrative, reflecting prior cost cutting initiatives.

CORPORATE

                Unallocated Corporate Costs and Eliminations

                               $s in millions
  ------------------------------------------------------------------------

                                                   Q/Q               Y/Y

                                                     %                 %
                              Q1 2010   Q4 2009   Change   Q1 2009  Change
                             --------  ---------  ------  --------  ------
  Inter-segment Revenue -
   elimination                $ (7.7)    $ (5.1)   (50%)   $ (1.9)  (296%)

  Cost of Revenue*              $ 0.3      $ 0.1    149%     $ 0.6   (43%)

  Inter-segment Marketing -
   elimination                $ (7.6)    $ (5.1)   (49%)   $ (1.9)  (294%)


  Operating Expenses*           $ 4.3      $ 6.2             $ 5.2
                             --------  ---------   (30%)  --------   (17%)

  Adjusted EBITDA**           $ (4.7)    $ (6.3)     25%   $ (5.8)     19%
  EBITDA**                    $ (7.8)   $ (19.9)     61%   $ (6.9)   (13%)

  Restructuring                 $ 2.5      $ 0.2    895%     $ 0.2   1454%
  Litigation Settlements
   and Contingencies            $ 0.0     $ 12.8      NM      $ --      NM

  Operating Loss              $ (8.2)   $ (20.3)   (60%)   $ (7.3)     12%

  NM = Not Meaningful
  * Does not include non-cash compensation, depreciation, gain/loss on
   disposal of assets, restructuring, amortization, impairment, or
   litigation settlements and contingencies.
  ** See separate reconciliation of Adjusted EBITDA and EBITDA to GAAP
   Operating Income/Loss.

Corporate

The eliminations both in revenue and in marketing principally represent the elimination of inter-segment transfer pricing charged from Exchanges to LendingTree Loans for leads. Operating expenses decreased $1.8 million quarter-over-quarter and decreased $0.8 million year-over-year. The quarter-over-quarter decrease was largely due to lower employee costs and lower legal consulting in the quarter. The year-over-year decreases in operating expense were primarily driven by lower employee costs reflecting prior cost-cutting initiatives.

Liquidity and Capital Resources

As of March 31, 2010, Tree.com had $73.1 million in unrestricted cash and cash equivalents, compared to $86.1 million as of December 31, 2009. Under the previously announced $10 million share repurchase program, which began in February with the opening of the Tree.com trading window, the Company repurchased 78,790 shares at an average price of $8.43 in open market transactions and has approximately $9.3 million of repurchase authorization remaining. As of March 31, 2010, LendingTree Loans had three committed lines of credit totaling $165 million of borrowing capacity. Borrowings under these lines of credit are used to fund, and are secured by, consumer residential loans that are held for sale. Loans under these lines of credit are repaid from proceeds from the sales of loans held for sale by LendingTree Loans. The loans held for sale and warehouse lines of credit balances as of March 31, 2010 were $100.7 million and $83.5 million, respectively. On April 28, 2010, Home Loan Center ("HLC") entered into an amendment to its existing warehouse line of credit with Bank of America. The amendment extends the termination date from April 30, 2010 to June 29, 2010. The amendment also decreases the percentage of loans originated by HLC which are required to be sold to Bank of America from 50% to 25% of Conventional Conforming loans and 25% of Government Mortgage Loans. The amount of the "pair-off fee" charged on the difference between the required and actual volume of loans sold to Bank of America is also reduced from 0.375% to 0.250%.

Conference Call

Tree.com will audio cast its conference call with investors and analysts discussing the Company's first quarter financial results on Friday, April 30, 2010 at 11:00 a.m. Eastern Time (ET). This call will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of Tree.com's business. The live audio cast is open to the public at http://investor-relations.tree.com/.

         TREE.COM, INC. AND SUBSIDIARIES
      CONSOLIDATED STATEMENTS OF OPERATIONS
                   (Unaudited)


                             Three Months Ended
                                 March 31,
                            -------------------

                               2010      2009
                            ----------  -------
                               (In thousands,
                                   except
                             per share amounts)
  Revenue
    LendingTree Loans          $25,738  $34,372
    Exchanges and other         18,374   17,129

    Real Estate                  3,899    5,759
                            ----------  -------
   Total revenue                48,011   57,260
  Cost of revenue
    LendingTree Loans           10,154   11,856
    Exchanges and other          1,452    2,467

    Real Estate                  2,455    3,864
                            ----------  -------
   Total cost of revenue
    (exclusive of
    depreciation shown
    separately below)           14,061   18,187
                            ----------  -------
   Gross margin                 33,950   39,073
  Operating expenses
   Selling and marketing
    expense                     20,146   13,822
   General and
    administrative expense      12,702   16,299
   Product development           1,366    1,608
   Litigation settlements
    and contingencies               16      394
   Restructuring expense         2,610      842
   Amortization of
    intangibles                    943    1,263

   Depreciation                  1,509    1,664
                            ----------  -------
    Total operating
     expenses                   39,292   35,893
                            ----------  -------
    Operating (loss)
     income                    (5,342)    3,180
  Other income (expense)
   Interest income                   7       48

   Interest expense              (166)    (151)
                            ----------  -------
  Total other (expense),
   net                           (159)    (103)
                            ----------  -------
  (Loss) income before
   income taxes                (5,501)    3,077
  Income tax (provision)
   benefit                       (645)       83
                            ----------  -------

  Net (loss) income           $(6,146)   $3,160
                            ==========  =======
  Weighted average common
   shares outstanding           10,960    9,676
                            ==========  =======
  Weighted average diluted
   shares outstanding           10,960    9,739
                            ==========  =======
  Net (loss) income per
   share available to
   common shareholders

   Basic                       $(0.56)    $0.33
                            ==========  =======

   Diluted                     $(0.56)    $0.32
                            ==========  =======


             TREE.COM, INC. AND SUBSIDIARIES
               CONSOLIDATED BALANCE SHEETS


                                                December
                                   March 31,      31,
                                     2010         2009
                                  -----------  ---------
                                  (unaudited)
                                   (In thousands, except
                                   par value and share
                                         amounts)
  ASSETS:
  Cash and cash equivalents           $73,051    $86,093
  Restricted cash and cash
   equivalents                         12,173     12,019
  Accounts receivable, net of
   allowance of $974 and $518,
   respectively                         7,149      6,835
  Loans held for sale
   ($99,471and $92,236 measured
   at fair value, respectively)       100,716     93,596
  Prepaid and other current
   assets                              10,104     10,758
                                  -----------  ---------
   Total current assets               203,193    209,301
  Property and equipment, net          12,397     12,257
  Goodwill                             12,152     12,152
  Intangible assets, net               56,683     57,626

  Other non-current assets                602        496
                                  -----------  ---------

   Total assets                      $285,027   $291,832
                                  ===========  =========
  LIABILITIES:
  Warehouse lines of credit           $83,498    $78,481
  Accounts payable, trade               9,840      5,905
  Deferred revenue                      1,781      1,731
  Deferred income taxes                 2,033      2,211
  Accrued expenses and other
   current liabilities                 42,058     54,694
                                  -----------  ---------
   Total current liabilities          139,210    143,022
  Income taxes payable                    488        510
  Other long-term liabilities          14,589     12,010

  Deferred income taxes                16,088     15,380
                                  -----------  ---------
   Total liabilities                  170,375    170,922


  SHAREHOLDERS' EQUITY:
  Preferred stock $.01 par
   value; authorized 5,000,000
   shares; none issued or
   outstanding                             --         --
  Common stock $.01 par value;
   authorized 50,000,000 shares;
   issued 11,227,117 and
   10,904,330 shares,
   respectively, and outstanding
   11,148,327 and 10,904,330
   shares, respectively                   112        109
  Additional paid-in capital          902,370    901,818
  Accumulated deficit               (787,163)  (781,017)
  Treasury stock 78,790 and -0-
   shares, respectively                 (667)         --
                                  -----------  ---------

   Total shareholders' equity         114,652    120,910
                                  -----------  ---------
   Total liabilities and
    shareholders' equity             $285,027   $291,832
                                  ===========  =========


     TREE.COM, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
               (Unaudited)


                                          Three Months Ended
                                               March 31,
                                         ---------------------

                                            2010        2009
                                         ----------  ---------
                                            (In thousands)
  Cash flows from operating activities:
  Net (loss) income                        $(6,146)     $3,160
  Adjustments to reconcile net (loss)
   income to net cash (used in)
   provided by operating activities:
   Loss on disposal of fixed assets               4        638
   Amortization of intangibles                  943      1,263
   Depreciation                               1,509      1,664
   Non-cash compensation expense              1,094      1,177
   Non-cash restructuring expense                93        161
   Deferred income taxes                        530         --
   Gain on origination and sale of
    loans                                  (23,400)   (32,764)
   Loss on impaired loans not sold               --         61
   Loss on sale of real estate acquired
    in satisfaction of loans                    368         34
   Bad debt expense                              75         79
  Changes in current assets and
   liabilities:
   Accounts receivable                        (390)        684
   Origination of loans                   (608,365)  (714,441)
   Proceeds from sales of loans             626,226    747,332
   Principal payments received on loans         180        446
   Payments to investors for loan
    repurchases and early payoff
    obligations                             (2,236)      (876)
   Prepaid and other current assets           (175)      (421)
   Accounts payable and other current
    liabilities                             (7,997)      2,901
   Income taxes payable                          59      (126)
   Deferred revenue                            (36)       (14)

   Other, net                                 2,573        287
                                         ----------  ---------
  Net cash (used in) provided by
   operating activities                    (15,091)     11,245
                                         ----------  ---------
  Cash flows from investing activities:
   Acquisitions                                  --    (1,000)
   Capital expenditures                     (1,609)      (592)

   Other, net                                   446        458
                                         ----------  ---------

  Net cash used in investing activities     (1,163)    (1,134)
                                         ----------  ---------
  Cash flows from financing activities:
   Borrowing under warehouse lines of
    credit                                  551,088    592,347
   Repayments of warehouse lines of
    credit                                (546,070)  (596,374)
   Issuance of common stock, net of
    withholding taxes                         (539)      1,909
   Purchase of treasury stock                 (667)         --

   Increase in restricted cash                (600)      (200)
                                         ----------  ---------
  Net cash provided by (used in)
   financing activities                       3,212    (2,318)
                                         ----------  ---------
  Net (decrease) increase in cash and
   cash equivalents                        (13,042)      7,793
  Cash and cash equivalents at
   beginning of period                       86,093     73,643
                                         ----------  ---------
  Cash and cash equivalents at end of
   period                                   $73,051    $81,436
                                         ==========  =========


                              TREE.COM, INC. AND SUBSIDIARIES
                   CONSOLIDATING STATEMENTS OF OPERATIONS -- BY SEGMENT
                                        (Unaudited)


                                        For the Three Months Ended March 31, 2010:
                                 --------------------------------------------------------

                                 LendingTree              Real    Unallocated--
                                    Loans     Exchanges   Estate    Corporate     Total
                                 -----------  ---------  -------  -------------  --------
  Revenue                            $25,738    $26,051   $3,899       $(7,677)   $48,011
  Cost of revenue (exclusive of
   depreciation shown
   separately below)                  10,154      1,128    2,455            324    14,061
                                 -----------  ---------  -------  -------------  --------
   Gross margin                       15,584     24,923    1,444        (8,001)    33,950
  Operating expenses:
   Selling and marketing
    expense                            7,998     19,085      689        (7,626)    20,146
   General and administrative
    expense                            4,816      1,593    1,541          4,752    12,702
   Product development                   131        882      168            185     1,366
   Litigation loss
    contingencies and
    settlements                           16         --       --             --        16
   Restructuring expense                   7        140       --          2,463     2,610
   Amortization of intangibles            --        295      636             12       943

   Depreciation                          490        319      334            366     1,509
                                 -----------  ---------  -------  -------------  --------

   Total operating expenses           13,458     22,314    3,368            152    39,292
                                 -----------  ---------  -------  -------------  --------
  Operating income (loss)              2,126      2,609  (1,924)        (8,153)   (5,342)
  Adjustments to reconcile to
   EBITDA and Adjusted EBITDA:
   Amortization of intangibles            --        295      636             12       943

   Depreciation                          490        319      334            366     1,509
                                 -----------  ---------  -------  -------------  --------
  EBITDA                               2,616      3,223    (954)        (7,775)   (2,890)
   Restructuring expense                   7        140       --          2,463     2,610
   Loss on disposal of assets             --         --        1              3         4
   Non-cash compensation                 131        333       55            575     1,094
   Litigation loss
    contingencies and
    settlements                           16         --       --             --        16
                                 -----------  ---------  -------  -------------  --------

  Adjusted EBITDA                     $2,770     $3,696   $(898)       $(4,734)      $834
                                 ===========  =========  =======  =============  ========
  Reconciliation to net loss in
   total:
  Operating loss per above                                                       $(5,342)

  Other expense, net                                                                (159)
                                                                                 --------
  Loss before income taxes                                                        (5,501)

  Income tax provision                                                              (645)
                                                                                 --------

  Net loss                                                                       $(6,146)
                                                                                 ========


                              TREE.COM, INC. AND SUBSIDIARIES
                   CONSOLIDATING STATEMENTS OF OPERATIONS -- BY SEGMENT
                                        (Unaudited)


                                        For the Three Months Ended March 31, 2009:
                                 --------------------------------------------------------

                                 LendingTree               Real    Unallocated--
                                    Loans     Exchanges   Estate     Corporate     Total
                                 -----------  ---------  --------  -------------  -------
  Revenue                            $34,372    $19,067    $5,759       $(1,938)  $57,260
  Cost of revenue (exclusive of
   depreciation shown
   separately below)                  11,856      1,891     3,864            576   18,187
                                 -----------  ---------  --------  -------------  -------
   Gross margin                       22,516     17,176     1,895        (2,514)   39,073
  Operating expenses:
   Selling and marketing
    expense                            2,114     11,968     1,678        (1,938)   13,822
   General and administrative
    expense                            4,974      2,784     2,699          5,842   16,299
   Product development                   150        632       534            292    1,608
   Litigation loss
    contingencies and
    settlements                          363          7        25             --      395
   Restructuring expense               (108)         58       733            159      842
   Amortization of intangibles            70         50     1,143             --    1,263

   Depreciation                          787        199       260            418    1,664
                                 -----------  ---------  --------  -------------  -------

   Total operating expenses            8,350     15,698     7,072          4,773   35,893
                                 -----------  ---------  --------  -------------  -------
  Operating income (loss)             14,166      1,478   (5,177)        (7,287)    3,180
  Adjustments to reconcile to
   EBITDA and Adjusted EBITDA:
   Amortization of intangibles            70         50     1,143             --    1,263

   Depreciation                          787        199       260            418    1,664
                                 -----------  ---------  --------  -------------  -------
  EBITDA                              15,023      1,727   (3,774)        (6,869)    6,107
   Restructuring expense               (108)         58       733            159      842
   Loss on disposal of assets             --        638        --             --      638
   Non-cash compensation                  69        113        98            897    1,177
   Litigation loss
    contingencies and
    settlements                          363          7        25             --      395
                                 -----------  ---------  --------  -------------  -------

  Adjusted EBITDA                    $15,347     $2,543  $(2,918)       $(5,813)   $9,159
                                 ===========  =========  ========  =============  =======
  Reconciliation to net income
   in total:
  Operating income per above                                                       $3,180

  Other expense, net                                                                (103)
                                                                                  -------
  Income before income taxes                                                        3,077

  Income tax benefit                                                                   83
                                                                                  -------

  Net income                                                                       $3,160
                                                                                  =======

About Tree.com, Inc.

Tree.com, Inc. (NASDAQ: TREE) is the parent of several brands and businesses that provide information, tools, advice, products and services for critical transactions in our customers' lives. Our family of brands includes: LendingTree.com(R), GetSmart.com(R), RealEstate.com(R), DegreeTree.comSM, HealthTree.comSM, LendingTreeAutos.com, DoneRight.com(R), and InsuranceTree.comSM. Together, these brands serve as an ally for consumers who are looking to comparison shop for loans, real estate and other services from multiple businesses and professionals who will compete for their business.

Tree.com, Inc. is the parent company of wholly owned operating subsidiaries: LendingTree, LLC and Home Loan Center, Inc.

Tree.com, Inc. is headquartered in Charlotte, N.C. and maintains operations solely in the United States. For more information, please visit www.tree.com.

The Tree.com, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5367

              TREE.COM'S PRINCIPLES OF FINANCIAL REPORTING


Tree.com reports Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), and adjusted for certain items discussed below ("Adjusted EBITDA"), as supplemental measures to GAAP. These measures are two of the primary metrics by which Tree.com evaluates the performance of its businesses, on which its internal budgets are based and by which management is compensated. Tree.com believes that investors should have access to the same set of tools that it uses in analyzing its results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Tree.com provides and encourages investors to examine the reconciling adjustments between the GAAP and non-GAAP measure which are discussed below.

Definition of Tree.com's Non-GAAP Measures

Adjusted EBITDA is defined as EBITDA excluding (1) non-cash compensation expense, (2) non-cash intangible asset impairment charges, (3) gain/loss on disposal of assets, (4) restructuring expenses, (5) litigation loss contingencies and settlements, (6) pro forma adjustments for significant acquisitions, and (7) one-time items. Adjusted EBITDA has certain limitations in that it does not take into account the impact to Tree.com's statement of operations of certain expenses, including depreciation, non-cash compensation and acquisition related accounting. Tree.com endeavors to compensate for the limitations of the non-GAAP measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measure.

Pro Forma Results

Tree.com will only present EBITDA and Adjusted EBITDA on a pro forma basis if it views a particular transaction as significant in size or transformational in nature. For the periods presented in this report, there are no transactions that Tree.com has included on a pro forma basis.

One-Time Items

EBITDA and Adjusted EBITDA are presented before one-time items, if applicable. These items are truly one-time in nature and non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no one-time items.

Non-Cash Expenses That Are Excluded From Tree.com's Non-GAAP Measures

Non-cash compensation expense consists principally of expense associated with the grants of restricted stock units and stock options. These expenses are not paid in cash, and Tree.com will include the related shares in its future calculations of fully diluted shares outstanding. Upon vesting of restricted stock units and the exercise of certain stock options, the awards will be settled, at Tree.com's discretion, on a net basis, with Tree.com remitting the required tax withholding amount from its current funds.

Amortization and impairment of intangibles are non-cash expenses relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase agreements, technology and customer relationships, are valued and amortized over their estimated lives.

Other

REALTORS(R)--a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS(R) and subscribes to its strict Code of Ethics.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The matters contained in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of the Company and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: our ability to operate effectively as a separate public entity following our spin-off from IAC in August 2008; additional costs associated with operating as an independent company; volatility in our stock price and trading volume; our ability to obtain financing on acceptable terms; limitations on our ability to enter into transactions due to spin-related restrictions; adverse conditions in the primary and secondary mortgage markets and in the economy; adverse conditions in our industries; adverse conditions in the credit markets and the inability to renew or replace warehouse lines of credit; seasonality in our businesses; potential liabilities to secondary market purchasers; changes in our relationships with network lenders, real estate professionals, credit providers and secondary market purchasers; breaches of our network security or the misappropriation or misuse of personal consumer information; our failure to provide competitive service; our failure to maintain brand recognition; our ability to attract and retain customers in a cost-effective manner; our ability to develop new products and services and enhance existing ones; competition from our network lenders and affiliated real estate professionals; our failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of our network lenders or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of our systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect our intellectual property rights or allegations of infringement of intellectual property rights; changes in our management; and deficiencies in our disclosure controls and procedures and internal control over financial reporting. These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the period ended December 31, 2009, our Quarterly Reports on Form 10-Q for the periods ended March 31, 2009, June 30, 2009, September 30, 2009, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

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SOURCE: Tree.com, Inc.

CONTACT:  Tree.com, Inc.
Investor Relations
877-640-4856
tree.com-investor.relations@tree.com

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