UPDATE: Liberty Interactive Announces Definitive Agreement to Acquire zulily, To Pay $18.75/Shares, $9.375 In Cash & 0.3098 New Shares

Liberty Interactive Corporation ("Liberty Interactive")

QVCB, LVNTA, LVNTB) and zulily, inc. ("zulily")

today announced that they have entered into a definitive agreement (the "Agreement") under which Liberty Interactive will acquire all outstanding shares of zulily for $18.75 per share. The acquisition will be attributed to Liberty Interactive's QVC Group tracking stock. "We are excited for zulily to join the Liberty family," stated Greg Maffei, Liberty Interactive President and CEO. "Darrell, Mark and their team have built an impressive business around entertainment, discovery and value to the customer, which fits perfectly with the QVC philosophy. Combined under Liberty, we have an incredible opportunity to delight shoppers from the TV to the Internet." "As the world leader in video and eCommerce retail, QVC is dedicated to reimagining shopping, entertainment and community as one," said Mike George, QVC President and CEO. "In zulily, we see a like-minded brand that shares our passion for discovering great products, for delivering honest value, and for building long term relationships with customers. Our teams are committed to learning from and inspiring each other and leveraging our platforms in new ways to accelerate growth, serve our customers better, and realize the full potential of both of these extraordinary brands." "Mark Vadon and I are incredibly excited to announce our partnership with QVC. QVC has built an amazing business with a great culture and incredibly similar understanding for bringing entertainment, discovery and value into the daily customer experience," said Darrell Cavens, President and CEO of zulily. "This combination under Liberty is about investing in our future and providing a tremendous opportunity to accelerate our platform for growth of the zulily brand through the partnership with QVC." The proposed transaction will bring two highly complementary businesses under common ownership and further strengthen QVC's leadership position in experiential, discovery driven shopping. While QVC and zulily will be operated as separate consumer facing brands, the collaboration creates numerous exciting opportunities, including leveraging QVC's global scale, curation, vendor relationships and video commerce expertise at zulily. Similarly, zulily's younger customer demographic, personalization expertise and eCommerce capabilities will boost QVC. Following the close of the transaction, zulily will remain based in Seattle. zulily will continue to be run by its talented management team, with Darrell Cavens remaining President and CEO of zulily. In connection with the transaction, Mike George is being appointed to the Executive Committee of the Liberty Interactive Board of Directors and will serve on that committee with John Malone and Greg Maffei. Darrell Cavens will report directly to Mike George and the other members of the Executive Committee. In addition, zulily co-founder Mark Vadon will join the Liberty Interactive Board of Directors. The deal values zulily at $2.4 billion. Liberty Interactive has agreed to provide $9.375 in cash and 0.3098 newly issued shares of QVCA for each zulily share. Funding for the cash portion of the consideration is expected to come from cash on hand at zulily and QVC's revolving credit facility. The transaction has been approved by the boards of directors of both companies and is anticipated to close during the fourth quarter of 2015. Pursuant to the Agreement, a subsidiary of Liberty Interactive will commence an exchange offer for 100% of the outstanding shares of zulily common stock for $18.75 per share. The exchange offer is required to be commenced within 15 business days of today and to remain open for at least 20 business days after launch. Concurrent with the execution of the Agreement, zulily's founding shareholders, representing approximately 45% of zulily's outstanding shares, have signed a Tender and Support Agreement, pursuant to which they have agreed to tender all of their shares into the exchange offer, subject to certain exceptions. Following successful completion of the exchange offer, any shares not acquired in the exchange offer will be acquired in a second-step merger at the same $18.75 per share deal price. Closing of the exchange offer is conditioned upon customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and there being validly tendered and not withdrawn a number of shares of zulily common stock equal to at least a majority of the total outstanding voting power. The offer is not subject to any financing condition. Baker Botts L.L.P. is acting as legal advisor for Liberty Interactive. Goldman Sachs is serving as financial advisor for zulily and Weil, Gotshal & Manges LLP and Cooley LLP are acting as legal advisors. Liberty Interactive's President and CEO, Greg Maffei, QVC's President and CEO, Mike George, zulily's Chairman, Mark Vadon and zulily's President and CEO, Darrell Cavens will co-host an investor conference call to discuss the transaction at 9am E.D.T. on Monday, August 17, 2015. The call can be accessed by dialing 844-307-2219 or 678-509-7635 at least 10 minutes prior to the start time. The call will also be broadcast live across the internet and archived on both Liberty Interactive's and zulily's websites. To access the webcast and the accompanying presentation materials go to either http://www.libertyinteractive.com/events or http://investor.zulily.com/. An archive of the webcast will also be available on both websites for 30 days after appropriate filings have been made with the SEC.