Expedia, Inc. announced yesterday that it is amending its tender offer to purchase shares of the Company's common stock to reduce the maximum number of shares that the Company is offering to purchase to 25,000,000 shares, due to the lack of available financing, on terms satisfactory to the Company, as a result of current conditions in the credit markets. The terms and conditions of the original tender offer are set forth in the Offer to Purchase, dated June 29, 2007, and related letter of transmittal.

Expedia currently expects to fund the purchase of shares under the amended tender offer through available borrowing capacity under the Company's existing bank credit facility. As a result, Expedia is further amending the tender offer to remove the financing condition on which the original tender offer was conditioned.

"While we remain confident in Expedia's long-term prospects and will continue to be net buyers of our shares, the terms available to us in the current debt market environment were simply unacceptable," said Barry Diller, Expedia Inc.'s Chairman and Senior Executive. "Our confidence in Expedia's future is well held, with second quarter transaction growth of 14% -- our highest in six quarters -- and our expectation of exceeding consensus estimates for revenue and OIBA."

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