By Expedia Guest Author, on July 11, 2002

Expedia.com Expedia, Inc. Extends Services to Corporations

BELLEVUE, Wash. – (July 10, 2002) – Expedia, Inc. (NASDAQ: EXPE) today announced plans to extend its industry-leading services and technology to corporate travel, thus becoming the first technology-based travel agency to provide the full array of travel services needed by corporations. As part of the expansion of its travel offerings to business customers and corporate travel managers, the company also announced that it has signed a definitive agreement to purchase substantially all of the assets of Metropolitan Travel, Inc., a closely held Seattle-based corporate travel agency. Information on Expedia's corporate travel services is now available on http://corporate.expedia.com.
Terms of the transaction were not disclosed. The transaction is anticipated to close later this month. Expedia® expects the acquisition to be slightly accretive to earnings, beginning with the third quarter ending Sept. 30.

“Expedia has a unique opportunity to utilize our technology expertise to dramatically improve the corporate travel planning and purchasing process,” said Richard Barton, president and chief executive officer of Expedia, Inc. “With the acquisition of Metropolitan Travel, a premiere organization with experience servicing these corporate customers, we will truly be able to empower travel managers and satisfy business travelers.”

Metropolitan will provide a core operation around which Expedia will develop its dedicated corporate travel technology and services that address the business travel market. The dedicated technology, expected to launch by year-end, will utilize Expedia's proprietary Expert Searching and Pricing (ESP) platform to give corporate travelers the ease of use, choice and control of Expedia's leading travel Website, with thousands of air, hotel and car rental choices and combinations. In addition, Expedia will give corporate travel managers dynamic tools with which to manage their employees' travel and corporate travel policies, backed by a 24-hour corporate travel customer service center.

Byron Bishop, senior vice president of corporate travel for Expedia, will lead the newly formed corporate travel group. “This is an opportune time to enter the corporate travel market,” said Mr. Bishop. “Small and large corporations alike are raising concerns about the rising cost of corporate travel. Meanwhile, their employees are opting for the convenience of online booking through agencies like Expedia.

“Expedia's goal is to help businesses reduce their cost of corporate travel services with easy-to-use, comprehensive selections-all while receiving high-quality travel management services,” Mr. Bishop continued. “In order to do that, we will provide a single service and technology solution for what businesses have historically obtained from separate providers.”

After the acquisition, Metropolitan will continue to provide corporate travel services to existing and new clients. “Metropolitan Travel has been successful because of our sharp focus on the quality of service we provide and because we have been as entrepreneurial as the clients we serve,” said Patricia Elliott, president of Metropolitan Travel. “Expedia will allow us to increase the value of services we provide both online and offline in ways we could never achieve alone.”

Metropolitan, the largest, independent agency operating in the Northwest, works with premier corporate customers, including Nordstrom Inc., Starbucks Corp., Avanade Inc., Washington Mutual Inc. and Frank Russell Investment Co. The company has been providing quality service and support to the corporate travel industry for 20 years and had more than $150 million in gross bookings in calendar year 2001.

“As a very satisfied long-term client of Metropolitan, we are excited about how Expedia's technical and other resources combined with Metropolitan's service will improve our ability to provide a great experience for our travelers as well as increase our ability to manage our travel budget,” said Ava Ohashi, travel manager at Nordstrom.

Ms. Elliott will remain president of Metropolitan, which will become a wholly owned operation of Expedia, reporting to Mr. Bishop. Ben Kenagy will continue as vice president of Metropolitan Travel.

About Expedia, Inc.

Expedia, Inc. (Nasdaq: EXPE) operates Expedia.com, an independent leading online travel service in the United States with localized versions in Europe and Canada. To help travelers travel right, Expedia.com provides a wide variety of travel products and services, such as Expedia® Special Rate hotels and vacation rentals with the guaranteed lowest prices. Expedia's quality and leadership are recognized by several awards, including both PC Magazine's “Readers' Choice” and “Editors' Choice” Awards, Forbes' “Favorite General Travel Site,” Smart Business' MVP Award, PC World's “Best Bet” and IFITT's “Best Web site in the Travel Agency, Tour Operator and Cruise Category.” Expedia is ranked the seventh largest travel agency in the U.S. according to Travel Weekly Magazine.

Expedia.com customers are supported by a credit card guarantee (U.S. site only), an industry-leading privacy policy, and live agents via e-mail and an 800-number available 24 hours a day/seven days a week. Expedia.com is also available under Travel on the MSN® network of Internet services.

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This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including final adjustments made in closing the quarter and those identified in the Company's filings with the SEC.

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