Homestore (HOMSE) announced today that it has entered into a definitive agreement to sell its ConsumerInfo.com division, which provides online consumer credit reporting and monitoring services, to Experian for $130 million in cash. The transaction is subject to Hart-Scott-Rodino clearance and other customary closing conditions.

"The sale of ConsumerInfo.com is consistent with our stated objective of focusing on our core real estate businesses," said Mike Long, Homestore's Chief Executive Officer. "This transaction divests Homestore of a business that is not central to our real estate focus and allows us to redeploy substantial resources to our primary business objective -- making real estate professionals more productive and profitable."

The net proceeds from the sale will substantially strengthen Homestore's balance sheet.

As a result of the sale, the company no longer projects positive cash flow from operations for the full year 2002, but expects to be generating positive cash flow from operations by the end of the year.

ConsumerInfo.com was established to give consumers quick, easy and inexpensive access to their credit histories. Since its founding in 1995, the company has provided credit reports to more than 2 million consumers. ConsumerInfo.com was the first U.S. company to offer consumers online access to single-bureau credit reports, three-bureau credit reports and lender-style credit scores.

Experian is a global provider of information solutions and customer relationship management services, with annual sales of approximately $1.5 billion. The company is headquartered in Nottingham, UK, and Orange, California and is a subsidiary of GUS plc. GUS plc is a retail and business services group, headquartered in Manchester, UK, that had sales of 6 billion pounds in the year ended March 31, 2001.

Homestore also stated it would not be cash flow positive for the full year 2002 as a result of the sale of its online credit reporting service ConsumerInfo.com.

Homestore -- which said a week ago it would be restating some of its financial results after an audit revealed improper revenue recognition -- said the sale was part of its strategy to focus on its core real estate business.

Published: March 19, 2002

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