Expedia, Inc. Announces Pricing of Senior Unsecured Notes Offering

BELLEVUE, Wash., June 19 /PRNewswire-FirstCall/ -- Expedia, Inc.
(Nasdaq: EXPE) announced today that it has agreed to sell $400 million of
8.50% senior unsecured notes due 2016 (the "Notes"). The Notes will be
guaranteed by certain subsidiaries of Expedia, Inc. The offering of the Notes
is expected to close on June 24, 2008. Expedia, Inc. plans to use the net
proceeds of the offering to repay borrowings of $330 million currently
outstanding under its credit facility and for general corporate purposes.
The offering will be made only to qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and to certain non-U.S. persons in accordance with
Regulation S under the Securities Act. The Notes will not be registered under
the Securities Act and may not be offered or sold without registration unless
an exemption from such registration is available. This notice is issued
pursuant to Rule 135c of the Securities Act, and does not constitute an offer
to sell the Notes, nor a solicitation for an offer to purchase the Notes.
This press release contains forward-looking statements regarding the
future performance of Expedia, Inc., within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are subject to a
variety of risks and uncertainties that could cause actual results to differ
materially from current expectations. These risks and uncertainties include,
but are not limited to, Expedia, Inc.'s ability to consummate the offering of
the Notes. Additional cautionary statements regarding other risk factors that
could have an effect on the future performance of Expedia, Inc. are contained
in its filings with the SEC, including its reports on Forms 10-K, 10-Q and 8-
K. Expedia, Inc. undertakes no obligation to release publicly the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

(C) 2008 Expedia, Inc. All rights reserved. CST 2029030-40.

SOURCE Expedia, Inc.

Investor Relations, +1-425-679-3555, ir@expedia.com, or Communications,
+1-425-679-4317, press@expedia.com, both of Expedia, Inc.