<SUBMISSION>
<ACCESSION-NUMBER>0000898822-06-001473
<TYPE>SC TO-I/A
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20061214
<DATE-OF-FILING-DATE-CHANGE>20061214
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>Expedia, Inc.
<CIK>0001324424
<ASSIGNED-SIC>4700
<IRS-NUMBER>202705720
<FISCAL-YEAR-END>1205
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I/A
<ACT>34
<FILE-NUMBER>005-80935
<FILM-NUMBER>061277733
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3150 139TH AVENUE SE
<CITY>BELLEVUE
<STATE>WA
<ZIP>98005
<PHONE>(425)679-7200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3150 139TH AVENUE SE
<CITY>BELLEVUE
<STATE>WA
<ZIP>98005
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>Expedia, Inc.
<CIK>0001324424
<ASSIGNED-SIC>4700
<IRS-NUMBER>202705720
<FISCAL-YEAR-END>1205
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3150 139TH AVENUE SE
<CITY>BELLEVUE
<STATE>WA
<ZIP>98005
<PHONE>(425)679-7200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3150 139TH AVENUE SE
<CITY>BELLEVUE
<STATE>WA
<ZIP>98005
</MAIL-ADDRESS>
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<TYPE>SC TO-I/A
<SEQUENCE>1
<FILENAME>amendmentno1toscheduleto.htm
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></B>&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>WASHINGTON, D.C. 20549</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amendment No. 1 to</FONT></B>&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Schedule TO</FONT></B> </TD></TR></TABLE></DIV><BR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Tender Offer Statement under Section</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934</FONT></B>&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expedia, Inc.</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(Name of Subject Company (Issuer))</FONT></B> </TD></TR>
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     <TD width="100%">&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expedia, Inc. (Issuer)</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(Name of Filing Person (Identifying Status as Offeror, Issuer or Other Person))</FONT></B>&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Common Stock, Par Value $.001 Per Share</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(Title of Class of Securities)</FONT></B> </TD></TR>
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     <TD width="100%">&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>30212P105</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(CUSIP Number of Class of Securities)</FONT></B> </TD></TR>
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     <TD width="100%">&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Burke F. Norton, Esq.</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Executive Vice President, General Counsel and Secretary</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expedia, Inc.</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>3150 139th Avenue S.E.</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Bellevue, WA 98005</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Telephone: (425) 679-7200</FONT></B> </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(Name, Address and Telephone Number of Person Authorized</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>to Receive Notices and Communications on Behalf of Filing Persons)</FONT></B>&nbsp; </TD></TR></TABLE></DIV><BR>
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     <TD align=center width="100%"><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2>Copy to:</FONT></I></B> </TD></TR>
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     <TD width="100%">&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Pamela S. Seymon, Esq.</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Wachtell, Lipton, Rosen &amp; Katz</FONT></B>&nbsp; </TD></TR>
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     <TD align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>51 West 52nd Street</FONT></B> </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>New York, New York 10019</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Telephone: (212) 403-1000</FONT></B>&nbsp; </TD></TR></TABLE></DIV><BR>
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     <TD align=center width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CALCULATION OF FILING FEE</FONT></B> </TD></TR>
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     <TD noWrap align=center width="49%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Transaction Valuation*</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="48%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amount of Filing Fee**</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="49%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$660,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="48%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$70,620</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>*</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Calculated solely for purposes of determining the amount of the filing fee. Pursuant to rule 0-11(b)(1) of the Securities</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%">&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exchange Act of 1934, as amended, the Transaction Valuation was calculated assuming that 30,000,000 outstanding shares of</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>common stock, par value $.001 per share, are being purchased at the maximum possible tender offer price of $22.00 per share.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>**</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The amount of the filing fee, calculated in accordance with Rule 0-11(b)(1) of the Securities Exchange Act of 1934, as</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%">&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>amended, equals $107.00 per million of the value of the transaction.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[X]</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%">&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>filing.</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="60%">&nbsp; </TD></TR>
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     <TD noWrap align=left width="31%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Amount Previously Paid: $70,620</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Filing Party:&nbsp;Expedia, Inc.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left width="31%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Form or Registration No.:&nbsp;Schedule TO</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Date Filed: December 11, 2006</FONT></TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[ ]</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%">&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check the appropriate boxes below to designate any transactions to which the statement relates:</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[ ]</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>third-party tender offer subject to Rule 14d-1.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[X]</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>issuer tender offer subject to Rule 13e-4.</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[ ]</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>going-private transaction subject to Rule 13e-3.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>[ ]</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="93%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>amendment to Schedule 13D under Rule 13d-2.</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="98%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check the following box if the filing is a final amendment reporting the results of the tender offer: [ ]</FONT>&nbsp; </TD></TR></TABLE><BR>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amendment No. 1 to Schedule TO</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>This Amendment No. 1 amends and supplements the Tender Offer Statement on Schedule TO originally filed with the Securities and Exchange Commission on December 11, 2006 (the &#147;Schedule TO&#148;) by Expedia, Inc., a Delaware corporation (&#147;Expedia&#148;), relating to the offer to purchase up to 30,000,000 shares of its common stock, par value $.001 per share (the &#147;Shares&#148;), or such lesser number of Shares as is properly tendered and not properly withdrawn, at a price determined by Expedia between $18.50 and $22.00 per Share, net to the seller in cash, without interest, on the terms and subject to the conditions set forth in an Offer to Purchase, dated December 11, 2006, and in the related Letter of Transmittal (which, as amended or supplemented from time to time, together constitute the &#147;Offer&#148;). This Amendment No. 1 is intended to satisfy the reporting requirements of Rule 13e-4(c)(3) of the Securities Exchange Act of 1934, as amended. Copies of the Offer to Purchase and the related Letter of Transmittal were previously filed with the Schedule TO as Exhibits (a)(1)(A) and (a)(1)(B), respectively.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The information in the Offer is incorporated in this Amendment No. 1 to the Schedule TO by reference in response to all of the applicable items in the Schedule TO, except that such information is hereby amended and supplemented to the extent specifically provided herein.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 12. EXHIBITS.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Item 12 of the Schedule TO is hereby amended by replacing the existing exhibit (a)(1)(F)&nbsp;with the following:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(1)(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Letter&nbsp;from the Trustee of the Expedia Retirement Savings Plan to plan participants dated December 11, 2006</FONT></P>
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     <TD noWrap align=left width="99%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In addition, Item 12 of the Schedule TO is hereby amended and supplemented by adding the following:</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(5)(D)</FONT>&nbsp;</TD>
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     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Employee Frequently Asked Questions Regarding the Tender Offer</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(5)(E)</FONT>&nbsp;</TD>
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     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Email to Employees</FONT>&nbsp;</TD></TR></TABLE><BR>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SIGNATURE</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.</FONT></P>
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     <TD noWrap align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Expedia, Inc.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>By:</FONT>&nbsp;<FONT face="Times New Roman"><FONT size=2>/s/ Burke F. Norton&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
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     <TD noWrap align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Name:</FONT> <FONT face="Times New Roman"><FONT size=2>Burke F. Norton</FONT></FONT><FONT face=Vrinda><FONT face="Times New Roman"></FONT></FONT></TD></TR>
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<P><FONT face="Times New Roman"><FONT size=2>Title: &nbsp; Executive Vice President,</FONT></FONT></P></TD></TR>
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     <TD noWrap align=left width="100%" background=""><FONT face="Times New Roman"><FONT size=2><FONT face="Times New Roman"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </FONT></FONT>General Counsel and Secretary</FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Dated: December 14, 2006</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EXHIBIT INDEX</FONT></B></P>
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     <TD noWrap align=left width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(1)(F)</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Letter&nbsp;from the Trustee of the Expedia Retirement Savings Plan to plan participants</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="12%">&nbsp; </TD>
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     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>dated December 11, 2006</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(5)(D)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Employee Frequently Asked Questions Regarding the Tender Offer</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(a)(5)(E)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="85%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Email to Employees</FONT>&nbsp; </TD></TR></TABLE><BR>
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<A name=""></A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<P style="MARGIN-LEFT: 85%" align=left><B>Exhibit A(1)(F)</B></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>IMMEDIATE ATTENTION REQUIRED</FONT></B></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 11, 2006</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Re: Expedia, Inc. Tender Offer</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Dear Expedia Retirement Savings Plan Participant:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The enclosed tender offer materials and Direction Form require your immediate attention. Our records reflect that, as a participant in the Expedia Retirement Savings Plan (the &#147;Plan&#148;), all or a portion of your individual account is invested in the Expedia, Inc. Stock Fund (the &#147;Stock Fund&#148;). The tender offer materials describe an offer by Expedia, Inc. to purchase up to 30,000,000 shares of its common stock, par value $.001 per share (the &#147;Shares&#148;), at a price not greater than $22.00 nor less than $18.50 per share, net to the seller in cash, without interest (the &#147;Offer&#148;). As described below, you have the right to instruct Fidelity Management Trust Company (&#147;Fidelity&#148;), as trustee of the Plan, concerning whether to tender Shares attributable to your individual account under the Plan. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>You will need to complete the enclosed Direction Form and return it to Fidelity&#146;s tabulator in the enclosed return envelope so that it is RECEIVED by 4:00 p.m., New York City time, on Friday, January 5, 2007, unless the Offer is extended, in which case the deadline for receipt of instructions will be three business days prior to the expiration date of the Offer, if feasible.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The remainder of this letter summarizes the transaction, your rights under the Plan and the procedures for completing and submitting the Direction Form. You should also review the more detailed explanation provided in the Offer to Purchase, dated December 11, 2006 (the &#147;Offer to Purchase&#148;), enclosed with this letter.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>BACKGROUND</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Expedia, Inc. (&#147;Expedia&#148;) has made an Offer to its stockholders to tender up to 30,000,000 shares of its common stock, par value $.001 per share, for purchase by Expedia at a price not greater than $22.00 nor less than $18.50 per share, net to the seller in cash, without interest, upon the terms and subject to the conditions set forth in the enclosed Offer to Purchase. Expedia will select the lowest purchase price that will allow it to purchase 30,000,000 Shares or, if a lesser number of Shares are properly tendered, all Shares that are properly tendered and not withdrawn. All Shares acquired in the Offer will be acquired at the same purchase price regardless of whether the stockholder tendered at a lower price. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The enclosed Offer to Purchase sets forth the objectives, terms and conditions of the Offer and is being provided to all of Expedia&#146;s stockholders. To understand the Offer fully and for a more complete description of the terms and conditions of the Offer, you should carefully read the entire Offer to Purchase.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Offer extends to the Shares held by the Plan. As of December 6, 2006, the Plan had approximately 67,549 Shares allocated to participant accounts. Only Fidelity, as trustee of the Plan, can tender these Shares in the Offer. Nonetheless, as a participant under the Plan, you have the right to direct Fidelity whether or not to tender some or all of the Shares attributable to your individual account in the Plan, and at what price or prices. Unless otherwise required by applicable law, Fidelity will tender Shares attributable to participant accounts in accordance with participant instructions and Fidelity will not tender Shares attributable to participant accounts for which it does not receive timely instructions. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>If you do not </FONT></B></P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>complete the enclosed Direction Form and return it to Fidelity&#146;s tabulator on a timely basis, you will be deemed to have elected not to participate in the Offer and no Shares attributable to your Plan account will be tendered.</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>LIMITATIONS ON FOLLOWING YOUR DIRECTION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The enclosed Direction Form allows you to specify the percentage of the Shares attributable to your account that you wish to tender and the price or prices at which you want to tender Shares attributable to your account. As detailed below, when Fidelity tenders Shares on behalf of the Plan, they may be required to tender Shares on terms different than those set forth on your Direction Form.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Employee Retirement Income Security Act of 1974, as amended (&#147;ERISA&#148;), and the trust agreement between Expedia and Fidelity prohibit the sale of Shares to Expedia for less than &#147;adequate consideration&#148; which is defined by ERISA for a publicly traded security as the prevailing market price on a national securities exchange. Fidelity will determine &#147;adequate consideration,&#148; based on the prevailing or closing market price of the Shares on the NASDAQ Global Select Market on or about the date the Shares are tendered by Fidelity (the &#147;prevailing market price&#148;). Accordingly, depending on the prevailing market price of the Shares on such date, Fidelity may be unable to follow participant directions to tender Shares to Expedia at certain prices within the offered range. Fidelity will tender or not tender Shares as follows:</FONT></P>
<UL>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If the prevailing market price is greater than the maximum tender price offered by Expedia ($22.00</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>per Share), notwithstanding your direction to tender Shares in the Offer, the Shares will not be</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>tendered.</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If the prevailing market price is lower than the price at which you direct Shares be tendered,</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>notwithstanding the lower closing market price, Fidelity will follow your direction both as to</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>percentage of Shares to tender and as to the price at which such Shares are tendered.</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If the prevailing market price is greater than the price at which you direct the Shares be tendered but</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>within the range of $18.50 to $22.00, Fidelity will follow your direction regarding the percentage of</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shares to be tendered, but will increase the price at which such Shares are to be tendered to the lowest</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>tender price that is not less than prevailing market price.</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If the prevailing market price is within the range of $18.50 to $22.00, for all shares directed to be</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>tendered at the &#147;per Share purchase price to be determined pursuant to the tender offer&#148;, Fidelity will</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>tender such Shares at the lowest tender price that is not less than the prevailing market price.</FONT> </LI></UL>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Unless otherwise required by applicable law, Fidelity will not tender Shares for which it has received no direction, or for which it has received a direction not to tender. Fidelity makes no recommendation as to whether to direct the tender of Shares or whether to refrain from directing the tender of Shares. EACH PARTICIPANT OR BENEFICIARY MUST MAKE HIS OR HER OWN DECISIONS.</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CONFIDENTIALITY</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>To assure the confidentiality of your decision, Fidelity and their affiliates or agents will tabulate the Direction Forms. Neither Fidelity nor their affiliates or agents will make your individual direction available to Expedia.</FONT></P>
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     <TD noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>PROCEDURE FOR DIRECTING TRUSTEE</FONT></B></TD></TR></TABLE></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Enclosed is a Direction Form which should be completed and returned to Fidelity&#146;s tabulator. Please note that the Direction Form indicates the number of Shares attributable to your individual account as of December 6, 2006. However, for purposes of the final tabulation, Fidelity will apply your instructions to the number of Shares attributable to your account as of January 5, 2007, or as of a later date if the Offer is extended.</FONT></P>
<P align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you do not properly complete the Direction Form or do not return it by the deadline specified, such Shares will be considered NOT TENDERED.</FONT></FONT></P>
<P style="MARGIN-LEFT: 0%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To properly complete your Direction Form, you must do the following:</FONT></P>
<P style="MARGIN-LEFT: 3%"><FONT size=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1) On the face of the Direction Form, check Box 1 or 2. CHECK ONLY ONE BOX:</FONT></FONT></P>
<P style="MARGIN-LEFT: 5%"><FONT face="SymbolMT,Times New Roman,Times,serif" size=2>&#183; </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>CHECK BOX 1 if you do not want the Shares attributable to your individual account tendered for sale in accordance with the terms of the Offer and simply want the Plan to continue holding such Shares. </FONT></P>
<P style="MARGIN-LEFT: 5%"><FONT face="SymbolMT,Times New Roman,Times,serif" size=2>&#183; </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>CHECK BOX 2 in all other cases and complete the table immediately below Box 2. Specify the percentage (in whole numbers) of Shares attributable to your individual account that you want to tender at each price indicated. </FONT></P>
<P style="MARGIN-LEFT: 5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>You may direct the tender of Shares attributable to your account at different prices. To do so, you must state the percentage (in whole numbers) of Shares to be sold at each price by filling in the percentage of such Shares on the line immediately before the price. Also, you may elect to accept the per Share purchase price to be determined pursuant to the tender offer, which will result in receiving a price per Share as low as $18.50 or as high as $22.00. Leave a given line blank if you want no Shares tendered at that particular price. The total of the percentages you provide on the Direction Form may not exceed 100%, but it may be less than 100%. If this amount is less than 100%, you will be deemed to have instructed Fidelity NOT to tender the balance of the Shares attributable to your individual account. </FONT></P>
<P style="MARGIN-LEFT: 3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(2) Date and sign the Direction Form in the space provided. </FONT></P>
<P style="MARGIN-LEFT: 3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(3) Return the Direction Form in the enclosed return envelope so that it is received by Fidelity&#146;s tabulator at the address on the return envelope (P. O. Box 9142, Hingham, MA 02043) not later than 4:00 P. M., New York City time, on Friday, January 5, 2007, unless the Offer is extended, in which case the participant deadline shall be three business days prior to the expiration date of the Offer, if feasible. If you wish to return the form by overnight courier, please send it to Fidelity&#146;s tabulator at Tabulator, 60 Research Road, Hingham, MA 02043. </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directions via facsimile will not be accepted. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Your direction will be deemed irrevocable unless withdrawn by 4:00 p.m., New York City time, on Friday, January 5, 2007, unless the Offer is extended. In order to make an effective withdrawal, you must submit a new Direction Form which may be obtained by calling Fidelity at (800) 835-5095. Upon receipt of a new, completed and signed Direction Form, your previous direction will be deemed canceled. You may direct the re-tendering of any Shares attributable to your individual account by obtaining an additional Direction Form from Fidelity and repeating the previous instructions for directing tender as set forth in this letter.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>After the deadline above for returning the Direction Form to Fidelity&#146;s tabulator, Fidelity and their affiliates or agents will complete the tabulation of all directions. Fidelity will tender the appropriate number of Shares on behalf of the Plan.</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Expedia will then buy all Shares, up to 30,000,000, that were properly tendered through the Offer. If there is an excess of Shares tendered over the exact number desired by Expedia, Shares tendered pursuant to the Offer may be subject to proration, as described in the Offer to Purchase. Any Shares attributable to your account that are not purchased in the Offer will remain allocated to your individual account under the Plan.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The preferential treatment of holders of fewer than 100 Shares, as described in the Offer to Purchase, will not apply to participants in the Plan, regardless of the number of Shares held within their individual accounts. Likewise, the conditional tender of Shares, as described in the Offer to Purchase, will not apply to the participants in the Plan.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EFFECT OF TENDER ON YOUR ACCOUNT</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>If you direct Fidelity to tender some or all of the Shares attributable to your Plan account, as of 4:00 p.m., New York City time, on January 5, 2007, certain transactions involving the Stock Fund attributable to your account, including all exchanges out, loans, withdrawals and distributions, will be prohibited until all processing related to the Offer has been completed, unless the Offer is terminated or the completion date is extended.</FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2> (Balances in the Stock Fund will be utilized to calculate amounts eligible for loans and withdrawals throughout this freeze on the Stock Fund.) In the event that the Offer is extended, the freeze on transactions involving the Stock Fund will, if feasible, be temporarily lifted until three days prior to the new completion date of the Offer, as extended, at which time a new freeze on these transactions involving the Stock Fund will commence. You can call Fidelity at (800) 835-5095 to obtain updated information on expiration dates, deadlines and Stock Fund freezes.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If you directed Fidelity to NOT tender any of the Shares attributable to your account or you did not return your Trustee Direction Form in a timely manner, you will continue to have access to all transactions normally available to the Stock Fund, subject to Plan rules.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INVESTMENT OF PROCEEDS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>For any Shares in the Plan that are tendered and purchased by Expedia, Expedia will pay cash to the Plan. INDIVIDUAL PARTICIPANTS IN THE PLAN WILL NOT, HOWEVER, RECEIVE ANY CASH TENDER PROCEEDS DIRECTLY. ALL SUCH PROCEEDS WILL REMAIN IN THE PLAN AND MAY BE WITHDRAWN ONLY IN ACCORDANCE WITH THE TERMS OF THE PLAN.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Fidelity will invest proceeds received with respect to Shares attributable to your account in the Fidelity Freedom Income Fund as soon as administratively possible after receipt of proceeds. Fidelity anticipates that the processing of participant accounts will be completed five to seven business days after receipt of these proceeds. You may call Fidelity at (800) 835-5095 after the reinvestment is complete to learn the effect of the tender on your account or to have the proceeds from the sale of Shares which were invested in the Fidelity Freedom Income Fund invested in other investment options offered under the Plan.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SHARES OUTSIDE THE PLAN</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If you hold Shares outside of the Plan, you will receive, under separate cover, Offer materials to be used to tender those Shares. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Those Offer materials may not be used to direct Fidelity to tender or not tender the Shares attributable to your individual account under the Plan. </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Likewise, the tender of Shares attributable to your individual account under the Plan will not be effective with respect to </FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shares you hold outside of the Plan. The direction to tender or not tender Shares attributable to your individual account under the Plan may only be made in accordance with the procedures in this letter. Similarly, the enclosed Direction Form may not be used to tender Shares held outside of the Plan.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>FURTHER INFORMATION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If you require additional information concerning the procedure to tender Shares attributable to your individual account under the Plan, please contact Fidelity at (800) 835-5095. If you require additional information concerning the terms and conditions of the Offer, please call MacKenzie Partners, Inc., the Information Agent, toll free at (800) 322-2885.</FONT></P>
<P style="MARGIN-LEFT: 50%" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Sincerely,</FONT></P>
<P style="MARGIN-LEFT: 50%" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Fidelity Management Trust Company</FONT></P>
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     <TD noWrap align=right><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit A(5)(D)</FONT></B></TD></TR></TABLE></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EXPEDIA, INC. </FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EMPLOYEE FREQUENTLY ASKED QUESTIONS </FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">REGARDING THE TENDER OFFER</FONT></B></P>
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     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">What action is Expedia</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The company is offering to repurchase up to 30 million</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">taking?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares of its common stock at a price per share not less</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">than $18.50 and not greater than $22.00. The tender</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">offer commenced on December 11, 2006 and&nbsp;will end,</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">unless extended, at 5:00 p.m., New York City time, on</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">January 10, 2007. The company&#146;s obligation to</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">purchase shares in the tender offer is subject to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">conditions described in the tender offer documents.</FONT>&nbsp; </TD></TR>
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     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
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     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
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     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">What will the purchase price</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia is offering to repurchase shares through a</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">for the shares be?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">modified &#147;Dutch auction.&#148; This means the purchase</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">price will be the lowest price at which, based on the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">number of shares tendered and the prices specified by</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the tendering stockholders, Expedia is able to purchase</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">30,000,000 shares, or such fewer number of shares as</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">are properly tendered and not properly withdrawn prior</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to the expiration date. The purchase price will not be</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">greater than $22.00 nor less than $18.50 per share.</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia will pay this purchase price in cash, without</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">interest, for all the shares purchased under the tender</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">offer, even if some of the shares are tendered at a price</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">below the purchase price.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Can employees participate in</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Employees who are stockholders can participate in the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">the tender offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tender offer, except for our executive officers who</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">have advised the company that they do not intend to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">participate in the tender offer.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Has Expedia or the Board of</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our Board of Directors has approved the tender offer.</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Directors adopted a position</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">However, neither management nor the Board of</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">on the tender offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Directors has made any recommendation to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">stockholders, including employees, as to whether they</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">should tender or refrain from tendering their shares or</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as to the price or prices at which they may choose to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tender their shares. You must make your own decision</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as to whether to tender your shares and, if so, how</FONT>&nbsp; </TD></TR></TABLE><BR>
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<TABLE cellSpacing=1 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">many shares to tender and the price or prices at which</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">you choose to tender your shares. In so doing, you</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">should read carefully the information in the offer to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">purchase and in the letter of transmittal, including the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">company&#146;s reasons for making the tender offer.</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia&#146;s directors and executive officers and Liberty</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Media Corporation have advised the company that</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">they do not intend to tender any shares in the tender</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">offer.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Why is the&nbsp;Expedia making</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia believes that the tender offer is a prudent use</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">the tender offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of its financial resources given its business profile,</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">capital structure, assets and the current market price of</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the shares, and that investing in its own shares is an</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">attractive use of capital and an efficient means to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">provide value to its stockholders. The tender offer</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">represents the opportunity for Expedia to return cash to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">stockholders who elect to tender their shares, while at</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the same time increasing non-tendering stockholders&#146;</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">proportionate interest in Expedia. </FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%">&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Following the tender offer,</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Yes. The completion of the tender offer in accordance</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">will Expedia continue as a</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">with its terms and conditions will not cause Expedia&#146;s</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">public company?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares to cease to be quoted on The Nasdaq Stock</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Market or to stop being subject to the periodic</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting requirements of the Securities Exchange Act</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="35%" background=""></TD>
     <TD width="2%" background=""></TD>
     <TD noWrap align=left width="62%" background=""><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of 1934, as amended.</FONT> </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">How do I tender my shares?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The tender offer will expire at 5:00 p.m., New York</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">City time, on Wednesday, January 10, 2007, unless</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia extends the tender offer. All stockholders will</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">be mailed information beginning on or about</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Wednesday, December 13, 2006. Information also can</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">be obtained by contacting MacKenzie Partners, Inc.,</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the company&#146;s information agent, at 1-800-322-2885</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(United States and Canada) or +212-929-5500 (all</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">other countries). If you hold your stock in a brokerage</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">account you should contact your broker. Participants</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">in the company&#146;s 401(k) plan who hold stock in</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia will receive a communication directly from</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fidelity Investments. If you hold stock both</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">individually (including through a brokerage account)</FONT>&nbsp; </TD></TR></TABLE><BR>
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<A name="page_3"></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and through the company&#146;s 401(k) plan and you decide</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to tender shares held in both manners, you will need to</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">take separate actions as to these shares.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">What if I do not want</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you do not wish to participate in the tender offer,</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">to participate in the tender</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">you do not need to take any action.</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%">&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Can I participate in the</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Yes. Participants in the Expedia Retirement Savings</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">tender offer if I hold shares</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Plan (i.e. the 401(k) plan) who hold shares of Expedia</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">through the Expedia</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">in their accounts will receive instruction forms which</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Retirement Savings Plan?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">they may use to direct the trustee for the plan to tender</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">eligible shares held through their accounts</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">.</FONT></I>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">How do holders of stock</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The tender offer only applies to issued shares of</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">options for shares participate</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expedia common stock, therefore stock options may</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">in the tender offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">not be tendered. However, if you hold </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">vested </FONT></I><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">but</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">unexercised options, you may exercise such options in</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">accordance with the terms of the applicable stock</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">option plans and tender the shares received upon such</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">exercise in accordance with this tender offer.</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%">
<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Employees should note that an exercise of a stock</FONT>&nbsp; </P></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">option may not be revoked even if (a) the shares</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">acquired are tendered but are not purchased in the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tender offer or (b) the employee elects to revoke his or</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="35%" background=""></TD>
     <TD width="2%" background=""></TD>
     <TD noWrap align=left width="62%" background=""><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">her tender of shares.</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%">
<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">An employee who currently holds </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">unvested </FONT></I><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">options</FONT>&nbsp; </P></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">may not exercise those options until they vest and thus</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">cannot tender the shares in the tender offer unless they</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">vest before the tender offer expires.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">How do holders of warrants</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you hold exercisable warrants for common stock,</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">participate in the tender</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">you may exercise such warrants in accordance with the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">offer?</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">terms of the applicable warrant agreement and tender</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the shares received upon such exercise in accordance</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">with this tender offer. You should note that an</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">exercise of a warrant may not be revoked even if (a)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the shares acquired are tendered but are not purchased</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">in the tender offer or (b) you elect to revoke your</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tender of shares.</FONT>&nbsp; </TD></TR></TABLE><BR>
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<A name="page_4"></A>&nbsp;
<TABLE cellSpacing=1 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><FONT face="Times New Roman"><B>Does this affect employee</B></FONT></TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares that have been issued</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as a result of vesting</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Restricted Stock Units?</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of Restricted Stock Units and</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">held by an employee are</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">eligible to participate in the</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tender offer. The process </FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">for tendering shares is</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">contained in the tender offer</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">documentation and</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">instructions. Therefore unvested </FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Restricted Stock</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Units that remain unvested<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;through</FONT></FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the expiration of</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the tender offer may not be <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">tendered</FONT></FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and are not</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">affected by the tender offer.</FONT>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Will I have to pay brokerage</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you are a registered stockholder and you tender your</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">commissions if I tender my</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares directly to the depositary, you will not incur any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">shares?</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">brokerage commissions. If you hold shares through a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">broker or bank, we urge you to consult your broker or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">bank to determine whether transaction costs are</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">applicable.</FONT>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">What are the U.S. federal</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Generally, you will be subject to U.S. federal income</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">income tax consequences if I</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">taxation when you receive cash from us in exchange</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">tender my shares?</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">for the shares you tender. In addition, the receipt of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">cash for your tendered shares will be treated either as</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1) consideration received in respect of a sale or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">exchange or (2) a distribution from us in respect of our</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">stock.</FONT>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Will I have to pay any stock</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you instruct the depositary in the letter of transmittal</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">transfer tax if I tender my</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to make the payment for the shares to the registered</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">shares?</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">holder, you will not incur any stock transfer tax.</FONT>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Whom can I talk to if I have</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The information agent can help answer your questions.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">questions?</FONT></B>&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The information agent is MacKenzie Partners, Inc.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">You can call MacKenzie Partners, Inc. at 1-800-322-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2885 in the United States and Canada, and +212-929-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5500 for all other countries.</FONT>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>This Q&amp;A is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>shares of the company&#146;s common stock. The solicitation and offer to buy the company&#146;s common stock will only</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>be made pursuant to the Offer to Purchase and related materials that the company sends to its stockholders.</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Stockholders should read those materials carefully because they contain important information, including</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>the various terms and conditions of the tender offer. Stockholders&nbsp;may obtain copies of the Offer to</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="99%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Purchase, related materials filed by the company as part of the statement on Schedule &#147;TO&#148; and other</FONT></B>&nbsp;</TD></TR></TABLE><BR>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>documents filed with the Securities and Exchange Commission through the Commission&#146;s internet address at </FONT></B><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" color=#0000ff size=2>http://www.sec.gov</FONT></U></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2> without charge. Stockholders and investors may also obtain a copy of these documents, as well as any other documents the company has filed with the Securities and Exchange Commission, without charge, from the company or at the Investor Relations section of the company&#146;s website: </FONT></B><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" color=#0000ff size=2>www.expediainc.com</FONT></U></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>/ir. Stockholders are urged to carefully read these materials prior to making any decision with respect to the offer. Stockholders and investors who have questions or need assistance may call MacKenzie Partners, Inc. at 1-800-322-2885 in the United States and Canada, and +212-929-5500 for all other countries.</FONT></B></P>
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<TYPE>EX-99.A(5)(E)
<SEQUENCE>4
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<P style="MARGIN-LEFT: 85%" align=left><B>Exhibit A(5)(E)</B></P>
<P align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EMAIL</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Burke Norton&nbsp;to Employees</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expedia, Inc. Tender Offer</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wednesday, December 13, 2006</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">On Friday, December 8</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, Expedia, Inc. announced that the company would&nbsp;commence a tender offer to repurchase up to 30 million shares of its common stock at a price per share not less than $18.50 and not greater than $22.00. The tender offer began on&nbsp;Monday, December 11 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and will end on Wednesday, January 10, 2007, unless extended by the company.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Employees who are stockholders may participate in the tender offer. We have attached a list of Frequently Asked Questions for employees. If you are a stockholder, you will receive additional information, including an Offer to Purchase and related materials, by mail. You may also review these documents as they were filed on the SEC&#146;s website at http://www.sec.gov.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Employee stockholders who have additional questions about the tender offer or need assistance may contact our information agent, MacKenzie Partners, Inc., at (800) 322-2885 in the United States and Canada or + 212-929-5500 from all other countries.</FONT></P>
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