Expedia Disputes Ryanair’s Claims Regarding Contract Issues

BELLEVUE, Wash., Oct. 14 /PRNewswire-FirstCall/ — Expedia, Inc. (NASDAQ: EXPE) disputes claims made in a public statement issued by Ryanair earlier today regarding the contract between Travelscape (a wholly-owned subsidiary of Expedia, Inc.) and Ryanair.

“We are disappointed by the statement made by Ryanair earlier today, as we believe that Expedia has complied in every respect with the terms of our agreement with Ryanair, including all payment terms, and that Ryanair has failed to honor its obligations under that agreement,” said Dara Khosrowshahi, CEO of Expedia, Inc. “We have a long history of solid relationships with our partners and take our contractual obligations seriously; we expect our partners to do the same. We strongly believe that Ryanair does not have the right to terminate our agreement.”

The matters in dispute are the subject of legal proceedings that have been pending since May 2008 before the Commercial Court in London. On Friday, October 10, 2008 the Court gave directions to the parties for an orderly resolution of this dispute with a view to a trial of the claim and counterclaim in November 2009 if the matter is not settled before then.

Expedia ® will continue to vigorously assert its position in the pending legal proceedings and pursue its claims against Ryanair.

About Expedia, Inc.

Expedia, Inc. is the world’s leading online travel company, empowering business and leisure travelers with the tools and information they need to easily research, plan, book and experience travel. Expedia, Inc. also provides in-destination concierge service and activity desks for travelers. The Expedia, Inc. portfolio of brands includes: Expedia.com, hotels.com, Hotwire, Egencia (formerly Expedia Corporate Travel), TripAdvisor, Expedia Local Expert, Classic Vacations and eLong. Expedia, Inc.’s companies operate more than 70 global points of sale in more than 40 countries, with sites in North America, South America, Latin America, Europe, Middle East, Africa and Asia Pacific. Expedia, Inc. is a component of the S&P 500 index. For more information, visit http://www.expediainc.com/ (NASDAQ: EXPE).

Expedia and Expedia.com are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Classic Vacations is either a trademark or registered trademark of Classic Vacations, LLC in the U.S. and/or other countries. hotels.com is either a trademark or registered trademark of hotels.com, L.P., a subsidiary of hotels.com in the U.S. and/or other countries. Hotwire is either a trademark or registered trademark of Hotwire, Inc. in the U.S. and/or other countries. TripAdvisor is either a trademark or registered trademark of TripAdvisor, LLC in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

© 2008 Expedia, Inc. All rights reserved. CST: 2029030-40

SOURCE: Expedia, Inc.

CONTACT: Press, Expedia, +1-425-679-4317

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