LISLE, Ill. -- Homestore.com Inc. and Budget Group Inc. have reached an agreement to extend a strategic marketing alliance while at the same time settling Homestore's stock price guarantee due in March 2002.

Under the agreement, Homestore issued to Budget approximately 4.8 million shares of Homestore common stock in exchange for the cancellation of Budget's put option included in its original agreement with Homestore. Budget agreed to changes in the appearance of the Homestore logos on at least 30,000 Budget Group trucks.

Additionally, the agreement calls for Budget to advertise the Homestore name an additional year through March 2011. The Homestore shares issued to Budget will be tradable following the filing of a registration statement and the registration statement being declared effective by the SEC. The filing is expected later this week. Trade volume and timing restrictions will exist on the shares.