<SUBMISSION>
<ACCESSION-NUMBER>0000891020-07-000187
<TYPE>SC TO-I
<PUBLIC-DOCUMENT-COUNT>19
<FILING-DATE>20070629
<DATE-OF-FILING-DATE-CHANGE>20070629
<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
<ACT>34
<FILE-NUMBER>005-80935
<FILM-NUMBER>07949600
</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
</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>
</FILED-BY>
<DOCUMENT>
<TYPE>SC TO-I
<SEQUENCE>1
<FILENAME>v31477orsctovi.htm
<DESCRIPTION>SCHEDULE TO - ISSUER
<TEXT>
<HTML>
<HEAD>
<TITLE>sctovi</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Schedule&nbsp;TO</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Tender Offer Statement under Section</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934</B></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Expedia, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I><B>(Name of Subject Company (Issuer))</B></I></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Expedia, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I><B>(Name of Filing
Person (Offeror/Issuer))</B></I></DIV>


<DIV align="center" style="font-size: 10pt"><B>Common Stock, Par Value $.001 Per Share</B></DIV>


<DIV align="center" style="font-size: 10pt"><I><B>(Title of Class of Securities)</B></I></DIV>


<DIV align="center" style="font-size: 10pt"><B>30212P105</B></DIV>


<DIV align="center" style="font-size: 10pt"><I><B>(CUSIP Number of Class of Securities)</B></I></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Burke F. Norton, Esq.</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>Executive Vice President, General Counsel and Secretary</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>Expedia, Inc.</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>3150 139th Avenue S.E.</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>Bellevue, WA 98005</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>Telephone: (425)&nbsp;679-7200</B></DIV>


<DIV align="center" style="font-size: 10pt"><I><B>(Name, Address and Telephone Number of Person Authorized</B></I></DIV>


<DIV align="center" style="font-size: 10pt"><I><B>to Receive Notices and Communications on Behalf of Filing Persons)</B></I></DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B><I>Copy to:</I></B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Pamela S. Seymon, Esq.<BR>
Wachtell, Lipton, Rosen &#038; Katz<BR>
51 West 52nd Street<BR>
New York, New York 10019<BR>
Telephone: (212)&nbsp;403-1000</B>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF FILING FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="8" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Transaction Valuation*</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of Filing Fee**</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
              <TD valign="top" align="center" style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">$3,499,999,950
</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" valign="bottom" style="border-top: 2px solid #000000">107,450</TD>
    <TD nowrap valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="8" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated solely for purposes of determining the amount of the filing fee. Pursuant to Rule
0-11(b)(1) of the Securities Exchange Act of 1934, as amended, the Transaction Valuation was
calculated assuming that 116,666,665 outstanding shares of common stock, par value $.001 per
share, are being purchased at the maximum possible tender offer price of $30.00 per share.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>The amount of the filing fee, calculated in accordance with Rule&nbsp;0-11(b)(1) of the Securities
Exchange Act of 1934, as amended, equals $30.70 per million of the value of the transaction.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Check box if any part of the fee is offset as provided by Rule&nbsp;0-11(a)(2) and identify the
filing with which the offsetting fee was previously paid. Identify the previous filing by
registration statement number, or the Form or Schedule and the date of its filing.</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amount Previously Paid: N/A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Party: N/A</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form or Registration No.: N/A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date Filed: N/A</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check the box if the filing relates solely to preliminary communications made before the
commencement of a tender offer.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate boxes below to designate any transactions to which the statement relates:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>third-party tender offer subject to Rule&nbsp;14d-1.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issuer tender offer subject to Rule&nbsp;13e-4.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>going-private transaction subject to Rule&nbsp;13e-3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amendment to Schedule&nbsp;13D under Rule&nbsp;13d-2.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the following box if the filing is a final amendment reporting the results of the tender
offer: <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxay.htm">EXHIBIT 99.(a)(1)(A)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxby.htm">EXHIBIT 99.(a)(1)(B)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxcy.htm">EXHIBIT 99.(a)(1)(C)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxdy.htm">EXHIBITI 99.(a)(1)(D)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxey.htm">EXHIBIT 99.(a)(1)(E)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxfy.htm">EXHIBIT 99.(a)(1)(F)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx1yxgy.htm">EXHIBIT 99.(a)(1)(G)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx5yxay.htm">EXHIBIT 99.(a)(5)(A)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx5yxby.htm">EXHIBIT 99.(a)(5)(B)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxayx5yxdy.htm">EXHIBIT 99.(a)(5)(D)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxdyx23y.htm">EXHIBIT 99.(d)(23)</A></TD></TR>
<TR><TD colspan="9"><A HREF="v31477orexv99wxdyx24y.htm">EXHIBIT 99.(d)(24)</A></TD></TR>
</TABLE>
</CENTER>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>







<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Tender Offer Statement on Schedule&nbsp;TO relates to the tender offer by Expedia, Inc.,
a Delaware corporation (&#147;Expedia&#148;), to purchase for cash up to 116,666,665 shares of its common
stock, par value $.001 per share, at a price not more than $30.00 nor less than $27.50 per share,
net to the seller in cash, without interest, upon the terms and subject to the conditions set forth
in the offer to purchase, dated June&nbsp;29, 2007 (the &#147;Offer to Purchase&#148;) and the accompanying letter
of transmittal (the &#147;Letter of Transmittal&#148;), which
together, as each may be amended or
supplemented from time to time, constitute the tender offer. This Schedule&nbsp;TO is intended to
satisfy the reporting requirements of Rule&nbsp;13e-4(c)(2) of the Securities Exchange Act of 1934, as
amended. The information contained in the Offer to Purchase and the accompanying Letter of
Transmittal, copies of which are attached to this Schedule&nbsp;TO as Exhibits (a)(1)(A) and (a)(1)(B),
respectively, is incorporated herein by reference in response to all of the items of this Schedule
TO as more particularly described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Summary Term Sheet.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under &#147;Summary Term Sheet&#148; in the Offer to Purchase is incorporated
herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Subject Company Information.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Name and Address</I>. The name of the issuer is Expedia, Inc. The address of the principal
executive offices of Expedia, Inc. is 3150 139th Avenue S.E., Bellevue, Washington 98005. The
telephone number of the principal executive offices of Expedia, Inc. is (425)&nbsp;679-7200.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Securities</I>. The information set forth in the Introduction to the Offer to Purchase is
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Trading Market and Price</I>. The information set forth in Section&nbsp;8 of the Offer to Purchase
(&#147;Price Range of Shares; Dividends&#148;) is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Identity and Background of Filing Person.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia, Inc. is the filing person. Expedia, Inc.&#146;s address and telephone number are set
forth in Item&nbsp;2 above. The information set forth in Section&nbsp;12 of the Offer to Purchase
(&#147;Interests of Directors and Executive Officers; Transactions and Arrangements Concerning Shares&#148;)
is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Terms of the Transaction.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Material Terms</I>. The following sections of the Offer to Purchase contain information
regarding the material terms of the transaction and are incorporated
herein by reference:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Summary Term Sheet;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Introduction;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;1 (&#147;Number of Shares; Proration&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;2 (&#147;Purpose of the Tender Offer&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;3 (&#147;Procedures for Tendering Shares&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;4 (&#147;Withdrawal Rights&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;5 (&#147;Purchase of Shares and Payment of Purchase Price&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;6 (&#147;Conditional Tender of Shares&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;7 (&#147;Conditions of the Tender Offer&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;9 (&#147;Source and Amount of Funds&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;10 (&#147;Certain Financial Information&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;12 (&#147;Interests of Directors and Executive Officers; Transactions and
Arrangements Concerning Shares&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;15 (&#147;Material U.S. Federal Income Tax Consequences&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;16 (&#147;Extension of the Tender Offer; Termination; Amendment&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Purchases</I>. The information set forth in the Introduction to the Offer to Purchase and in
Section&nbsp;12 of the Offer to Purchase (&#147;Interests of Directors and Executive Officers; Transactions
and Arrangements Concerning Shares&#148;) is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Past Contacts, Transactions, Negotiations and Agreements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth in Section&nbsp;12 of the Offer to Purchase (&#147;Interests of Directors and
Executive Officers; Transactions and Arrangements Concerning Shares&#148;) is incorporated herein by
reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Purposes of the Transaction and Plans or Proposals.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a); (b); (c) <I>Purposes; Use of Securities Acquired; Plans</I>. The following sections of the
Offer to Purchase, which contain information regarding the purposes of the transaction, use of
securities acquired and plans, are incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Summary Term Sheet;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;2 (&#147;Purpose of the Tender Offer&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;9 (&#147;Source and Amount of Funds&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;10 (&#147;Certain Financial Information &#150;
Summary Unaudited Pro Forma Consolidated Financial Data&#148;).</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.
Source and Amount of Funds or Other Consideration.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a); (b); (d) <I>Source of Funds; Conditions; Borrowed Funds</I>. The information set forth in
Section&nbsp;9 of the Offer to Purchase (&#147;Source and Amount of
Funds&#148;) and Section&nbsp;10
(&#147;Certain Financial Information &#151; Summary Unaudited Pro Forma
Consolidated Financial Data&#148;) is incorporated herein by
reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Interest in Securities of the Subject Company.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a); (b) <I>Securities Ownership; Securities Transactions</I>. The information set forth in Section
12 of the Offer to Purchase (&#147;Interests of Directors and Executive Officers; Transactions and
Arrangements Concerning Shares&#148;) is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Persons/Assets Retained, Employed, Compensated or Used.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth in Section&nbsp;17 of the Offer to Purchase (&#147;Fees and Expenses&#148;) is
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Financial Statements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a); (b) <I>Financial Information; Pro Forma Information</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth in Section&nbsp;10 of the Offer to Purchase (&#147;Certain Financial
Information&#148;) is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.
Additional Information.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Agreements, Regulatory Requirements and Legal Proceedings</I>. The information set forth in
Section&nbsp;11 of the Offer to Purchase (&#147;Certain Information Regarding Expedia&#148;), Section&nbsp;12 of the
Offer to Purchase (&#147;Interests of Directors and Executive Officers; Transactions and Arrangements
Concerning Shares&#148;) and Section&nbsp;14 of the Offer to Purchase (&#147;Legal Matters; Regulatory Approvals&#148;)
is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Other Material Information</I>. The information set forth in the Offer to Purchase and the
accompanying Letter of Transmittal, copies of which are filed with this Schedule&nbsp;TO as Exhibits
(a)(1)(A) and (a)(1)(B), respectively, as each may be amended or supplemented from time to time, is
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12.
Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(A)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offer to Purchase, dated
June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(B)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of Transmittal</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(C)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Guaranteed Delivery</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(D)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to brokers, dealers, commercial banks, trust companies and other
nominees, dated June&nbsp;29, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(E)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to clients for use by brokers, dealers, commercial banks, trust
companies and other nominees, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(F)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter from the Trustee of the Expedia Retirement Savings Plan to plan
participants, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(G)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Direction Form for participants in the Expedia Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(4)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(A)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Summary Advertisement, dated
June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(B)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter from Dara Khosrowshahi, Chief Executive Officer of Expedia, Inc.,
to stockholders of Expedia, Inc., dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(C)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release, dated June&nbsp;19, 2007(1)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(D)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to Warrant and Series&nbsp;A Cumulative Convertible Preferred Stock
Holders, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Agreement dated as of July&nbsp;8, 2005, among Expedia, Inc., a
Delaware corporation, Expedia, Inc., a Washington corporation,
Travelscape, Inc., a Nevada corporation, Hotels.com, a Delaware
corporation, and Hotwire, Inc., a Delaware corporation, as Borrowers; the
Lenders party thereto; Bank of America, N.A., as Syndication Agent;
Wachovia Bank, N.A. and The Royal Bank of Scotland PLC, as
Co-Documentation Agents; JPMorgan Chase Bank, N.A., as Administrative
Agent; and J.P. Morgan Europe Limited, as London Agent(2)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of December&nbsp;7, 2006, to the Credit Agreement
dated as of July&nbsp;8, 2005, among Expedia, Inc., a Delaware corporation;
Expedia, Inc., a Washington corporation; Travelscape LLC, a Nevada
limited liability company; Hotels.com, a Delaware corporation; Hotwire,
Inc., a Delaware corporation; the other Borrowing Subsidiaries from time
to time party thereto; the Lenders from time to time party thereto;
JPMorgan Chase Bank, N.A., as Administrative Agent; and J.P. Morgan
Europe Limited, as London Agent(3)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Amendment, dated as of December&nbsp;18, 2006, to the Credit Agreement
dated as of July&nbsp;8, 2005, among Expedia, Inc., a Delaware corporation;
Expedia, Inc., a Washington corporation; Travelscape LLC, a Nevada
limited liability company; Hotels.com, a Delaware corporation; Hotwire,
Inc., a Delaware corporation; the other Borrowing Subsidiaries from time
to time party thereto; the Lenders from time to time party thereto;
JPMorgan Chase Bank, N.A., as Administrative Agent; and J.P. Morgan
Europe Limited, as London Agent(4)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Non-Employee Director Deferred Compensation Plan(5)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. 2005 Stock and Annual Incentive Plan(6)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Summary of Expedia, Inc. Non-Employee Director Compensation Arrangements(7)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(4)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholders Agreement between Liberty Media Corporation and Barry
Diller, dated as of August&nbsp;9, 2005(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(5)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governance Agreement, by and among Expedia, Inc., Liberty Media
Corporation and Barry Diller, dated as of August&nbsp;9, 2005(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(6)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Governance Agreement, among Expedia, Inc., Liberty
Media Corporation and Barry Diller, dated as of June&nbsp;19, 2007(1)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(7)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Separation Agreement, dated as of August&nbsp;9, 2005, by and between
IAC/InterActiveCorp and Expedia, Inc.(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(8)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Sharing Agreement dated as of August&nbsp;9, 2005, by and between
IAC/InterActiveCorp and Expedia, Inc.(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(9)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Expedia, Inc. Restricted Stock Unit Agreement (directors)(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(10)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Executive Deferred Compensation Plan, effective as of August&nbsp;9,
2005(9)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(11)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement between Expedia, Inc. and
Dara Khosrowshahi, dated as of March&nbsp;7, 2006(10)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(12)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and between
Michael B. Adler and Expedia, Inc.,
effective as of May&nbsp;16, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(13)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement between Expedia, Inc. and
Michael B. Adler, effective as of May&nbsp;16, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(14)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and between Burke F. Norton and Expedia, Inc.,
effective as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(15)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement (First Agreement) between
Expedia, Inc. and Burke F. Norton, dated as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(16)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement (Second Agreement) between
Expedia, Inc. and Burke F. Norton, dated as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(17)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Expedia, Inc. Restricted Stock Unit Agreement (domestic
employees)(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(18)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equity Warrant Agreement for Warrants to Purchase up to 14,590,514 Shares
of Common Stock expiring February&nbsp;4, 2009, between Expedia, Inc. and The
Bank of New York, as Equity Warrant Agent, dated as of August&nbsp;9, 2005(12)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(19)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholder Equity Warrant Agreement for Warrants to Purchase up to
11,450,182 Shares of Common Stock, between Expedia, Inc. and Mellon
Investor Services LLC, as Equity Warrant Agent, dated as of
August&nbsp;9, 2005(12)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->



<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(20)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Optionholder Equity Warrant Agreement for Warrants to Purchase up to
1,558,651 Shares of Common Stock, between Expedia, Inc. and Mellon
Investor Services LLC, as Equity Warrant Agent, dated as of August&nbsp;9,
2005(12)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(21)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture, dated as of August&nbsp;21, 2006, among Expedia, Inc., as Issuer,
the Subsidiary Guarantors from time to time parties thereto, and The Bank
of New York Trust Company, N.A., as Trustee, relating to Expedia, Inc.&#146;s
7.456% Senior Notes due 2018(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(22)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Supplemental Indenture, dated as of January&nbsp;19, 2007, to Indenture,
dated as of August&nbsp;21, 2006, by and among Expedia, Inc., certain
Subsidiary Guarantors (as defined therein) and The Bank of New York Trust
Company, N.A., as Trustee(13)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(23)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Expedia, Inc. Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(24)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Expedia, Inc. Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(25)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trust Agreement between Expedia, Inc. and Fidelity Management Trust
Company, dated as of August&nbsp;15, 2005, relating to the Expedia Retirement
Savings Plan(3)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(g)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(h)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on June&nbsp;19,
2007</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on July&nbsp;14,
2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Tender Offer Statement on Schedule&nbsp;TO (File
No.&nbsp;005-80395) filed on December&nbsp;11, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Amendment No.&nbsp;3 to Tender Offer Statement on
Schedule&nbsp;TO (File No.&nbsp;005-80395) filed on December&nbsp;22, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form S-4/A (File
No.&nbsp;333-124303-01) filed on June&nbsp;13, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form S-8 (File No.
333-127324) filed on August&nbsp;9, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended March&nbsp;31, 2007</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended September&nbsp;30, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on December
20, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Annual Report on Form 10-K for the fiscal
year ended December&nbsp;31, 2005</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended September&nbsp;30, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form 8-A/A filed
on August&nbsp;22, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form S-4 (File No.
333-140195) filed on January&nbsp;25, 2007</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. Information Required by Schedule&nbsp;13E-3.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">EXPEDIA, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Burke F. Norton&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Burke F. Norton</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Counsel &#038; Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated:
June&nbsp;29, 2007

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(A)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offer to Purchase, dated
June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(B)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter of Transmittal</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(C)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Guaranteed Delivery</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(D)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to brokers, dealers, commercial banks, trust companies and other
nominees, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(E)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to clients for use by brokers, dealers, commercial banks, trust
companies and other nominees, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(F)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter from the Trustee of the Expedia Retirement Savings Plan to plan
participants, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(1)(G)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Direction Form for participants in the Expedia Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(4)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(A)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Summary Advertisement, dated
June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(B)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter from Dara Khosrowshahi, Chief Executive Officer of Expedia, Inc.,
to stockholders of Expedia, Inc., dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(C)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release, dated June&nbsp;19, 2007(1)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)(5)(D)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to Warrant and Series&nbsp;A Cumulative Convertible Preferred Stock
Holders, dated June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Agreement dated as of July&nbsp;8, 2005, among Expedia, Inc., a
Delaware corporation, Expedia, Inc., a Washington corporation,
Travelscape, Inc., a Nevada corporation, Hotels.com, a Delaware
corporation, and Hotwire, Inc., a Delaware corporation, as Borrowers; the
Lenders party thereto; Bank of America, N.A., as Syndication Agent;
Wachovia Bank, N.A. and The Royal Bank of Scotland PLC, as
Co-Documentation Agents; JPMorgan Chase Bank, N.A., as Administrative
Agent; and J.P. Morgan Europe Limited, as London Agent(2)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of December&nbsp;7, 2006, to the Credit Agreement
dated as of July&nbsp;8, 2005, among Expedia, Inc., a Delaware corporation;
Expedia, Inc., a Washington corporation; Travelscape LLC, a Nevada
limited liability company; Hotels.com, a Delaware corporation; Hotwire,
Inc., a Delaware corporation; the other Borrowing Subsidiaries from time
to time party thereto; the Lenders from time to time party thereto;
JPMorgan Chase Bank, N.A., as Administrative Agent; and J.P. Morgan
Europe Limited, as London Agent(3)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Amendment, dated as of December&nbsp;18, 2006, to the Credit Agreement
dated as of July&nbsp;8, 2005, among Expedia, Inc., a Delaware corporation;
Expedia, Inc., a Washington corporation; Travelscape LLC, a Nevada
limited liability company; Hotels.com, a Delaware corporation; Hotwire,
Inc., a Delaware corporation; the other Borrowing Subsidiaries from time
to time party thereto; the Lenders from time to time party thereto;
JPMorgan Chase Bank, N.A., as Administrative Agent; and J.P. Morgan
Europe Limited, as London Agent(4)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Non-Employee Director Deferred Compensation Plan(5)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(2)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. 2005 Stock and Annual Incentive Plan(6)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(3)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Summary of Expedia, Inc. Non-Employee Director Compensation Arrangements(7)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(4)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholders Agreement between Liberty Media Corporation and Barry
Diller, dated as of August&nbsp;9, 2005(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(5)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governance Agreement, by and among Expedia, Inc., Liberty Media
Corporation and Barry Diller, dated as of August&nbsp;9, 2005(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(6)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Governance Agreement, by and among Expedia, Inc.,
Liberty Media Corporation and Barry Diller, dated as of June&nbsp;19, 2007(1)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(7)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Separation Agreement, dated as of August&nbsp;9, 2005, by and between
IAC/InterActiveCorp and Expedia, Inc.(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(8)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Sharing Agreement dated as of August&nbsp;9, 2005, by and between
IAC/InterActiveCorp and Expedia, Inc.(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(9)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Expedia, Inc. Restricted Stock Unit Agreement (directors)(8)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(10)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Executive Deferred Compensation Plan, effective as of August&nbsp;9,
2005(9)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(11)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement between Expedia, Inc. and
Dara Khosrowshahi, dated as of March&nbsp;7, 2006(10)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(12)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and between
Michael B. Adler and Expedia, Inc.,
effective as of May&nbsp;16, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(13)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement between Expedia, Inc. and
Michael B. Adler, effective as of May&nbsp;16, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(14)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement by and between Burke F. Norton and Expedia, Inc.,
effective as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(15)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc., Restricted Stock Unit Agreement (First Agreement) between
Expedia, Inc. and Burke F. Norton, dated as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(16)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expedia, Inc. Restricted Stock Unit Agreement (Second Agreement) between
Expedia, Inc. and Burke F. Norton, dated as of October&nbsp;25, 2006(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(17)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Expedia, Inc. Restricted
Stock Unit Agreement (domestic employees)(11)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(18)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equity Warrant Agreement for Warrants to Purchase up to 14,590,514 Shares
of Common Stock expiring February&nbsp;4, 2009, between Expedia, Inc. and The
Bank of New York, as Equity Warrant Agent, dated as of August&nbsp;9, 2005(12)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(19)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholder Equity Warrant Agreement for Warrants to Purchase up to
11,450,182 Shares of Common Stock, between Expedia, Inc. and Mellon
Investor Services LLC, as Equity Warrant Agent, dated as of August&nbsp;9,
2005(12)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(20)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Optionholder Equity Warrant Agreement for Warrants to Purchase up to
1,558,651 Shares of Common Stock, between Expedia, Inc. and Mellon
Investor Services LLC, as Equity Warrant Agent, dated as of August&nbsp;9,
2005(12)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(21)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture, dated as of August&nbsp;21, 2006, among Expedia, Inc., as Issuer,
the Subsidiary Guarantors from time to time parties thereto, and The Bank
of New York Trust Company, N.A., as Trustee, relating to Expedia, Inc.&#146;s
7.456% Senior Notes due 2018(11)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(22)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Supplemental Indenture, dated as of January&nbsp;19, 2007, to Indenture,
dated as of August&nbsp;21, 2006, by and among Expedia, Inc., certain
Subsidiary Guarantors (as defined therein) and The Bank of New York Trust
Company, N.A., as Trustee(13)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(23)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Expedia, Inc. Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(24)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Expedia, Inc. Retirement Savings Plan</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(d)(25)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trust Agreement between Expedia, Inc. and Fidelity Management Trust
Company, dated as of August&nbsp;15, 2005, relating to the Expedia Retirement
Savings Plan(3)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(g)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(h)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on June&nbsp;19,
2007</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on July&nbsp;14,
2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Tender Offer Statement on Schedule&nbsp;TO (File
No.&nbsp;005-80395) filed on December&nbsp;11, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Amendment No.&nbsp;3 to Tender Offer Statement on
Schedule&nbsp;TO (File No.&nbsp;005-80395) filed on December&nbsp;22, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form S-4/A (File
No.&nbsp;333-124303-01) filed on June&nbsp;13, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s
Registration Statement on Form S-8 (File No.&nbsp;333-127324) filed on August&nbsp;9, 2005</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended March&nbsp;31, 2007</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended September&nbsp;30, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Current Report on Form 8-K filed on December
20, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Annual Report on Form 10-K for the fiscal
year ended December&nbsp;31, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Quarterly Report on Form 10-Q for the
quarter ended September&nbsp;30, 2006</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form 8-A/A filed
on August&nbsp;22, 2005</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Expedia, Inc.&#146;s Registration Statement on Form S-4 (File No.
333-140195) filed on January&nbsp;25, 2007</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(A)
<SEQUENCE>2
<FILENAME>v31477orexv99wxayx1yxay.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(A)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxay</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(1)(A)</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477orv3147708.gif" alt="EXPEDIA LOGO" ><B> </B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OFFER TO
    PURCHASE FOR CASH<BR>
    Up to 116,666,665&#160;Shares of its Common Stock<BR>
    At a Purchase Price Not Greater Than $30.00<BR>
    Nor Less Than $27.50 Per Share<BR>
    <FONT style="font-size: 14pt">by<BR>
    Expedia, Inc.</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE TENDER OFFER, PRORATION
    PERIOD AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00&#160;P.M., NEW
    YORK CITY TIME, ON WEDNESDAY, AUGUST 8, 2007, UNLESS EXPEDIA
    EXTENDS THE TENDER OFFER.</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia, Inc., a Delaware corporation (&#147;Expedia&#148;), is
    offering to purchase for cash up to 116,666,665&#160;shares of
    its common stock, par value $.001 per share, upon the terms and
    subject to the conditions set forth in this document and the
    letter of transmittal (which together, as they may be amended
    and supplemented from time to time, constitute the &#147;tender
    offer&#148;). On the terms and subject to the conditions of the
    tender offer, we will determine the single per share price, not
    greater than $30.00 nor less than $27.50 per share, net to you
    in cash, without interest, that we will pay for shares properly
    tendered and not properly withdrawn in the tender offer, taking
    into account the total number of shares so tendered and the
    prices specified by the tendering stockholders. We will select
    the lowest purchase price that will allow us to purchase
    116,666,665&#160;shares, or such fewer number of shares as are
    properly tendered and not properly withdrawn, at prices not
    greater than $30.00 nor less than $27.50 per share. Expedia will
    purchase at the purchase price all shares properly tendered at
    prices at or below the purchase price and not properly
    withdrawn, on the terms and subject to the conditions of the
    tender offer, including the odd lot, conditional tender and
    proration provisions. We reserve the right, in our sole
    discretion, to purchase more than 116,666,665&#160;shares in the
    tender offer, subject to applicable law. Expedia will not
    purchase shares tendered at prices greater than the purchase
    price and shares that we do not accept for purchase because of
    proration provisions or conditional tenders. Shares not
    purchased in the tender offer will be returned to the tendering
    stockholders at our expense as promptly as practicable after the
    expiration of the tender offer. <I>See Section&#160;1.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE TENDER OFFER IS NOT CONDITIONED ON ANY MINIMUM NUMBER OF
    SHARES BEING TENDERED. THE TENDER OFFER IS, HOWEVER, SUBJECT TO
    OUR RECEIPT OF FINANCING AND OTHER CONDITIONS. SEE
    SECTION&#160;7.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">IMPORTANT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you wish to tender all or any part of your shares, you must
    either: (1)(a) complete and sign a letter of transmittal
    according to the instructions in the letter of transmittal and
    mail or deliver it, together with any required signature
    guarantee and any other required documents, including the share
    certificates, to The Bank of New York, the depositary for the
    tender offer, or (b)&#160;tender the shares according to the
    procedure for book-entry transfer described in Section&#160;3,
    or (2)&#160;request a broker, dealer, commercial bank, trust
    company or other nominee to effect the transaction for you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If your shares are registered in the name of a broker, dealer,
    commercial bank, trust company or other nominee, you should
    contact that person if you desire to tender your shares. If you
    desire to tender your shares and (1)&#160;your share
    certificates are not immediately available or cannot be
    delivered to the depositary, (2)&#160;you cannot comply with
    the
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    procedure for book-entry transfer, or (3)&#160;you cannot
    deliver the other required documents to the depositary by the
    expiration of the tender offer, you must tender your shares
    according to the guaranteed delivery procedure described in
    Section&#160;3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders or beneficial owners of shares under the Expedia
    Retirement Savings Plan (if such shares are not, at the time of
    tender, subject to any restrictions on transferability) who wish
    to tender any of such shares in the tender offer must follow the
    separate instructions and procedures described in Section&#160;3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>OUR BOARD OF DIRECTORS HAS APPROVED THE TENDER OFFER.
    HOWEVER, NEITHER WE NOR OUR BOARD OF DIRECTORS MAKES ANY
    RECOMMENDATION TO YOU AS TO WHETHER YOU SHOULD TENDER OR REFRAIN
    FROM TENDERING YOUR SHARES OR AS TO THE PRICE OR PRICES AT WHICH
    YOU MAY CHOOSE TO TENDER YOUR SHARES. YOU MUST MAKE YOUR OWN
    DECISION AS TO WHETHER TO TENDER YOUR SHARES AND, IF SO, HOW
    MANY SHARES TO TENDER AND THE PRICE OR PRICES AT WHICH TO TENDER
    YOUR SHARES. IN SO DOING, YOU SHOULD READ CAREFULLY THE
    INFORMATION IN THIS OFFER TO PURCHASE AND IN THE LETTER OF
    TRANSMITTAL, INCLUDING OUR REASONS FOR MAKING THE TENDER OFFER.
    OUR DIRECTORS AND EXECUTIVE OFFICERS AND LIBERTY MEDIA
    CORPORATION HAVE ADVISED US THAT THEY DO NOT INTEND TO TENDER
    ANY SHARES IN THE TENDER OFFER.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares are listed on The Nasdaq National Market
    (&#147;Nasdaq&#148;) under the ticker symbol &#147;EXPE&#148;.
    We publicly announced the tender offer prior to the opening of
    trading on Nasdaq on June&#160;19, 2007. On June&#160;18, 2007,
    the reported closing price of the shares on Nasdaq was $25.50
    per share. The average of the reported closing prices of the
    shares on Nasdaq over the ten trading days immediately prior to
    and including June&#160;18, 2007 was $24.32 per share. We urge
    stockholders to obtain current market quotations for the shares.
    <I>See Section&#160;8.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may direct questions and requests for assistance to
    MacKenzie Partners, Inc., the information agent for the tender
    offer, at their address and telephone number set forth on the
    back cover page of this document. You may also direct requests
    for additional copies of this document, the letter of
    transmittal or the notice of guaranteed delivery to the
    information agent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;29, 2007
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We have not authorized any person to make any recommendation
    on our behalf as to whether you should tender or refrain from
    tendering your shares in the tender offer. We have not
    authorized any person to give any information or to make any
    representation in connection with the tender offer other than
    those contained in this document or in the letter of
    transmittal. If given or made, you must not rely upon any such
    information or representation as having been authorized by
    us.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We are not making the tender offer to (nor will we accept any
    tender of shares from or on behalf of) holders in any
    jurisdiction in which the making of the tender offer or the
    acceptance of any tender of shares would not be in compliance
    with the laws of such jurisdiction. However, we may, at our
    discretion, take such action as we may deem necessary for us to
    make the tender offer in any such jurisdiction and extend the
    tender offer to holders in such jurisdiction.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-size: 10pt">FORWARD-LOOKING
    STATEMENTS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">ii
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-size: 10pt">SUMMARY TERM
    SHEET</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-size: 10pt">INTRODUCTION</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-size: 10pt">THE TENDER
    OFFER</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">6
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-size: 10pt">1.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#105'><FONT style="font-size: 10pt">Number of Shares;
    Proration</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">6
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-size: 10pt">2.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#106'><FONT style="font-size: 10pt">Purpose of the
    Tender Offer</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-size: 10pt">3.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#107'><FONT style="font-size: 10pt">Procedures for
    Tendering Shares</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-size: 10pt">4.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#108'><FONT style="font-size: 10pt">Withdrawal
    Rights</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">14
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-size: 10pt">5.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#109'><FONT style="font-size: 10pt">Purchase of Shares
    and Payment of Purchase Price</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">15
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-size: 10pt">6.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#110'><FONT style="font-size: 10pt">Conditional Tender
    of Shares</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">15
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-size: 10pt">7.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#111'><FONT style="font-size: 10pt">Conditions of the
    Tender Offer</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">16
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-size: 10pt">8.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#112'><FONT style="font-size: 10pt">Price Range of
    Shares; Dividends</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-size: 10pt">9.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#113'><FONT style="font-size: 10pt">Source and Amount
    of Funds</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">19
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-size: 10pt">10.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#114'><FONT style="font-size: 10pt">Certain Financial
    Information</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-size: 10pt">11.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#115'><FONT style="font-size: 10pt">Certain Information
    Concerning Expedia</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-size: 10pt">12.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#116'><FONT style="font-size: 10pt">Interests of
    Directors and Executive Officers; Transactions and Arrangements
    Concerning Shares</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-size: 10pt">13.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#117'><FONT style="font-size: 10pt">Effects of the
    Tender Offer on the Market for Shares; Registration under the
    Exchange Act</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">35
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'><FONT style="font-size: 10pt">14.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#118'><FONT style="font-size: 10pt">Legal Matters;
    Regulatory Approvals</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">35
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'><FONT style="font-size: 10pt">15.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#119'><FONT style="font-size: 10pt">Material U.S.
    Federal Income Tax Consequences</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">36
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'><FONT style="font-size: 10pt">16.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#120'><FONT style="font-size: 10pt">Extension of the
    Tender Offer; Termination; Amendment</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">38
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'><FONT style="font-size: 10pt">17.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#121'><FONT style="font-size: 10pt">Fees and
    Expenses</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">39
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'><FONT style="font-size: 10pt">18.</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#122'><FONT style="font-size: 10pt">Miscellaneous</FONT></A>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">39
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This offer to purchase, the documents incorporated by
    reference and other written reports and oral statements made
    from time to time by Expedia, Inc. may contain
    &#147;forward-looking statements&#148; regarding future events
    and our future results. These forward-looking statements reflect
    the views of our management regarding current expectations and
    projections about future events and are based on currently
    available information. Actual results, performance or
    achievement could differ materially from those contained in
    these forward-looking statements for a variety of reasons,
    including, without limitation, those discussed elsewhere in this
    offer to purchase, the documents incorporated by reference and
    in our other reports filed with the Securities and Exchange
    Commission. Other unknown or unpredictable factors also could
    have a material adverse effect on our business,&#160;financial
    condition, results of operations and prospects. Accordingly,
    readers should not place undue reliance on these forward-looking
    statements. The use of words such as &#147;anticipates,&#148;
    &#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148;
    &#147;plans&#148; and &#147;believes,&#148; among others,
    generally identify forward-looking statements; however, these
    words are not the exclusive means of identifying such
    statements. In addition, any statements that refer to
    expectations, projections or other characterizations of future
    events or circumstances are forward-looking statements. Please
    also refer to our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2007 and our Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006, in each case as filed
    with the Securities and Exchange Commission, for additional
    information on risks and uncertainties that could cause actual
    results to differ materially from those described in the
    forward-looking statements or that may otherwise impact us and
    our business.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>These forward-looking statements are inherently subject to
    uncertainties, risks and changes in circumstances that are
    difficult to predict. We are not under any obligation and do not
    intend to publicly update or review any of these forward-looking
    statements, whether as a result of new information, future
    events or otherwise, even if experience or future events make it
    clear that any expected results expressed or implied by those
    forward-looking statements will not be realized.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Please carefully review and consider the various disclosures
    made in this offer to purchase and in our other reports filed
    with the Securities and Exchange Commission that attempt to
    advise interested parties of the risks and factors that may
    affect our business, results of operations, financial condition
    or prospects.</I>
</DIV>

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    <BR>
    ii
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='102'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    TERM SHEET</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>We are providing this summary term sheet for your
    convenience. It highlights the most material information in this
    document, but you should realize that it does not describe all
    of the details of the tender offer to the same extent described
    in this document. We urge you to read the entire document and
    the letter of transmittal because they contain the full details
    of the tender offer. We have included references to the sections
    of this document where you will find a more complete discussion.
    Unless otherwise indicated, references to shares are to shares
    of our common stock, and not to shares of our Class&#160;B
    common stock or any other securities.</I>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Who is offering to purchase my shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Expedia, Inc. is offering to purchase your shares.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>What will the purchase price for the shares be?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We will determine the purchase price that we will pay per share
    as promptly as practicable after the tender offer expires. The
    purchase price will be the lowest price at which, based on the
    number of shares tendered and the prices specified by the
    tendering stockholders, we can purchase 116,666,665&#160;shares,
    or such fewer number of shares as are properly tendered and not
    properly withdrawn prior to the expiration date. The purchase
    price will not be greater than $30.00 nor less than $27.50 per
    share. We will pay this purchase price in cash, without
    interest, for all the shares we purchase under the tender offer,
    even if some of the shares are tendered at a price below the
    purchase price. <I>See Section&#160;1.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How many shares will Expedia purchase?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We will purchase 116,666,665&#160;shares properly tendered in
    the tender offer, or such fewer number of shares as are properly
    tendered and not properly withdrawn prior to the expiration
    date. The 116,666,665&#160;shares represent approximately 42% of
    our outstanding common stock as of June&#160;15, 2007. The
    116,666,665&#160;shares represent approximately 38% of the total
    number of shares of our outstanding common stock and
    Class&#160;B common stock and 22% of the combined voting power
    of our outstanding common stock and Class&#160;B common stock as
    of June&#160;15, 2007. Expedia expressly reserves the right to
    purchase an additional number of shares of common stock not to
    exceed 2% of the outstanding shares of common stock, and could
    decide to purchase more shares, subject to applicable legal
    requirements. <I>See Section&#160;1. </I>The tender offer is not
    conditioned on any minimum number of shares being tendered.
    <I>See Section&#160;7.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>What will happen if more than 116,666,665&#160;shares are
    tendered at or below the purchase</B> <B>price?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If more than 116,666,665&#160;shares are tendered at or below
    the purchase price, we will purchase all shares tendered at or
    below the purchase price on a pro rata basis, except for
    &#147;odd lots&#148; (lots held by owners of less than
    100&#160;shares), which we will purchase on a priority basis as
    described in the immediately following paragraph and except for
    shares that were conditionally tendered and for which the
    condition was not satisfied.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>If I own fewer than 100&#160;shares and I tender all of my
    shares, will I be subject to</B> <B>proration?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If you own beneficially or of record fewer than 100&#160;shares
    in the aggregate, you properly tender all of these shares at or
    below the purchase price before the tender offer expires and you
    complete the section entitled &#147;Odd Lots&#148; in the letter
    of transmittal, we will purchase all of your shares without
    subjecting them to the proration procedure. <I>See
    Section&#160;1.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How will Expedia pay for the shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We anticipate that we will obtain all of the funds necessary to
    purchase shares tendered in the tender offer, and to pay related
    fees and expenses, through a mix of (1)&#160;the proceeds of new
    bank credit facilities (which we would enter into before the
    expiration of the </TD>
</TR>

</TABLE>

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    <BR>
    1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    tender offer), the public or private placement of new debt
    securities, and/or additional indebtedness that we expect to
    incur under our current bank credit facility (which we would
    amend before the expiration of the tender offer), and
    (2)&#160;cash on hand. The tender offer is subject to our
    receipt of financing. <I>See Section&#160;7 and
    Section&#160;9.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How long do I have to tender my shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    You may tender your shares until the tender offer expires. The
    tender offer will expire on Wednesday, August&#160;8, 2007, at
    5:00&#160;p.m., New&#160;York City time, unless we extend it.
    <I>See Section&#160;1. </I>We may choose to extend the tender
    offer for any reason, subject to applicable laws. We cannot
    assure you that we will extend the tender offer or indicate the
    length of any extension that we may provide. <I>See
    Section&#160;16. </I>If a broker, dealer, commercial bank, trust
    company or other nominee holds your shares, it is likely they
    have an earlier deadline for you to act to instruct them to
    accept the tender offer on your behalf. We urge you to contact
    the broker, dealer, commercial bank, trust company or other
    nominee to find out their deadline.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    C<B>an the tender offer be extended, amended or terminated, and
    under what circumstances?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We can extend or amend the tender offer in our sole discretion.
    If we extend the tender offer, we will delay the acceptance of
    any shares that have been tendered. We can terminate the tender
    offer under certain circumstances. <I>See Section&#160;7 and
    Section&#160;16.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How will I be notified if Expedia extends the tender offer or
    amends the terms of the tender</B> <B>offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We will issue a press release no later than 9:00&#160;a.m., New
    York City time, on the business day after the scheduled
    expiration date if we decide to extend the tender offer. We will
    announce any amendment to the tender offer by making a public
    announcement of the amendment. <I>See Section&#160;16.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>What is the purpose of the tender offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Expedia believes that the tender offer, together with an
    increase in our indebtedness, is a prudent use of Expedia&#146;s
    financial resources given its business profile, cash flow,
    capital structure and assets, the current market price of the
    shares and the terms on which corporate credit currently is
    generally available in the credit markets. Expedia further
    believes that investing in its own shares is an attractive use
    of capital and an efficient and effective means to provide value
    to its stockholders, including by lowering the company&#146;s
    weighted average cost of capital. The tender offer represents
    the opportunity for Expedia to return cash to stockholders who
    elect to tender their shares, while at the same time increasing
    non-tendering stockholders&#146; proportionate interest in
    Expedia. <I>See Section&#160;2 and Section&#160;11.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Are there any conditions to the tender offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Yes. The tender offer is subject to conditions, including the
    receipt of financing, the absence of court and governmental
    action prohibiting the tender offer and the absence of changes
    in general market conditions or our business that, in our
    reasonable judgment, are or may be materially adverse to us, as
    well as other conditions. <I>See Section&#160;7.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Following the tender offer, will Expedia continue as a public
    company?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Yes. The completion of the tender offer in accordance with its
    terms and conditions will not cause Expedia&#146;s shares to
    cease to be listed on Nasdaq or to stop being subject to the
    periodic reporting requirements of the Securities Exchange Act
    of 1934, as amended (the &#147;Exchange Act&#148;). <I>See
    Section&#160;13.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How do I tender my shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    The tender offer will expire at 5:00&#160;p.m., New York City
    time, on Wednesday, August&#160;8, 2007, unless Expedia extends
    the tender offer. To tender your shares prior to the expiration
    of the tender offer: you must deliver your share certificate(s)
    and a properly completed and </TD>
</TR>

</TABLE>

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    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    duly executed letter of transmittal to the depositary at the
    address appearing on the back cover page of this document; or
    the depositary must receive a confirmation of receipt of your
    shares by book-entry transfer and a properly completed and duly
    executed letter of transmittal; or you must request a broker,
    dealer, commercial bank, trust company or other nominee to
    effect the transaction for you; or you must comply with the
    guaranteed delivery procedure. You should contact the
    information agent if you need assistance. <I>See Section&#160;3
    and the instructions to the letter of transmittal</I>.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Please note that Expedia will not purchase your shares in the
    tender offer unless the depositary receives the required
    documents prior to the expiration of the tender offer. If a
    broker, dealer, commercial bank, trust company or other nominee
    holds your shares, it is likely that they have an earlier
    deadline for you to act to instruct them to accept the tender
    offer on your behalf. We urge you to contact your broker,
    dealer, commercial bank, trust company or other nominee to find
    out their applicable deadline.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Once I have tendered shares in the tender offer, can I
    withdraw my tender?</B> </TD>
    <TD></TD>
    <TD valign="top">
    You may withdraw any shares you have tendered at any time before
    the expiration of the tender offer, which will occur at
    5:00&#160;p.m., New York City time, on Wednesday, August&#160;8,
    2007, unless we extend the tender offer, in which case you may
    withdraw until the latest date to which we extend the tender
    offer. If we have not accepted for payment the shares you have
    tendered to us, you may also withdraw your shares after 12:00
    Midnight, New York City time, on August&#160;24, 2007. <I>See
    Section&#160;4.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How do I withdraw shares I previously tendered?</B> </TD>
    <TD></TD>
    <TD valign="top">
    You must deliver, on a timely basis, a written or facsimile
    notice of your withdrawal to the depositary at the address
    appearing on the back cover page of this document. Your notice
    of withdrawal must specify your name, the number of shares to be
    withdrawn and the name of the registered holder of these shares.
    Some additional requirements apply if the share certificates to
    be withdrawn have been delivered to the depositary or if your
    shares have been tendered under the procedure for book-entry
    transfer set forth in Section&#160;3. <I>See Section&#160;4.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Individuals who own shares through the Expedia Retirement
    Savings Plan who wish to withdraw their shares must follow the
    instructions found in the materials sent to them separately.
    <I>See Section&#160;3.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Will Expedia&#146;s results of operations for the quarter
    ending June&#160;30, 2007 be publicly</B> <B>available before
    the expiration of the tender</B> <B>offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Yes. We currently plan to issue our results of operations for
    the second quarter ending June&#160;30, 2007 on or around
    August&#160;2, 2007, and in any event prior to the expiration of
    the tender offer.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Can I participate in the tender offer if I hold shares
    through the Expedia Retirement</B> <B>Savings Plan?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Yes. Participants who hold shares of Expedia common stock
    through the Expedia Retirement Savings Plan will receive
    instruction forms which they may use to direct the trustee for
    the plan to tender eligible shares held through their accounts.
    <I>See Section&#160;3.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>How do holders of vested stock options for shares participate
    in the tender offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If you hold vested but unexercised options, you may exercise
    such options in accordance with the terms of the applicable
    stock option plans and tender the shares received upon such
    exercise in accordance with this tender offer. <I>See
    Section&#160;3.</I></TD>
</TR>

</TABLE>

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    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>How do holders of warrants or preferred stock participate in
    the tender offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If you hold exercisable warrants for common stock, you may
    exercise such warrants in accordance with the terms of the
    applicable warrant agreement and tender the shares received upon
    such exercise in accordance with this tender offer. If you hold
    shares of our Series&#160;A preferred stock, you may convert
    those preferred shares into shares of common stock in accordance
    with the terms of the preferred stock and tender the shares
    received upon such conversion in accordance with this tender
    offer. <I>See Section&#160;3.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Has Expedia or its Board of Directors adopted a position on
    the tender offer?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Our Board of Directors has approved the tender offer. However,
    neither we nor our Board of Directors makes any recommendation
    to you as to whether you should tender or refrain from tendering
    your shares or as to the price or prices at which you may choose
    to tender your shares. You must make your own decision as to
    whether to tender your shares and, if so, how many shares to
    tender and the price or prices at which you choose to tender
    your shares. In so doing, you should read carefully the
    information in this offer to purchase and in the letter of
    transmittal, including our reasons for making the tender offer.
    Our directors and executive officers and Liberty Media
    Corporation have advised us that they do not intend to tender
    any shares in the tender offer. <I>See Section&#160;12.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>If I decide not to tender, how will the tender offer affect
    my shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Stockholders who choose not to tender will own a greater
    percentage interest in our outstanding common stock immediately
    following the consummation of the tender offer.</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>When will Expedia pay for the shares I tender?</B> </TD>
    <TD></TD>
    <TD valign="top">
    We will pay the purchase price, net to you in cash, without
    interest, for the shares we purchase as promptly as practicable
    after the expiration of the tender offer and the acceptance of
    the shares for payment; provided, however, that, if proration is
    required, we do not expect to announce the results of the
    proration and begin paying for tendered shares until at least
    five business days after the expiration of the tender offer.
    <I>See Section&#160;5.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Will I have to pay brokerage commissions if I tender my
    shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If you are a registered stockholder and you tender your shares
    directly to the depositary, you will not incur any brokerage
    commissions. If you hold shares through a broker or bank, we
    urge you to consult your broker or bank to determine whether
    transaction costs are applicable. <I>See Section&#160;3.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>What are the U.S. federal income tax consequences if I tender
    my shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    Generally, you will be subject to U.S. federal income taxation
    when you receive cash from us in exchange for the shares you
    tender. The receipt of cash for your tendered shares generally
    will be treated either as (1)&#160;consideration received in
    respect of a sale or exchange of the tendered shares or
    (2)&#160;a distribution from us in respect of our stock. You
    should consult your tax advisor as to the particular
    consequences to you of participation in the tender offer. <I>See
    Section&#160;15.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Will I have to pay any stock transfer tax if I tender my
    shares?</B> </TD>
    <TD></TD>
    <TD valign="top">
    If you instruct the depositary in the letter of transmittal to
    make the payment for the shares to the registered holder, you
    will not incur any stock transfer tax. <I>See Section&#160;5.</I></TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Whom can I talk to if I have questions?</B> </TD>
    <TD></TD>
    <TD valign="top">
    The information agent can help answer your questions. The
    information agent is MacKenzie Partners, Inc. Their contact
    information is set forth on the back cover page of this document.</TD>
</TR>

</TABLE>

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    <BR>
    4
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<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTRODUCTION</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Holders of our Common Stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We invite our stockholders to tender shares of our common stock,
    par value $.001 per share, for purchase by us. Upon the terms
    and subject to the conditions set forth in this offer to
    purchase and in the letter of transmittal, we are offering to
    purchase up to 116,666,665&#160;shares at a price not greater
    than $30.00 nor less than $27.50 per share, net to the seller in
    cash, without interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will select the lowest purchase price within the range that
    will allow us to buy 116,666,665&#160;shares or, if a lesser
    number of shares is properly tendered, all shares that are
    properly tendered and not properly withdrawn. We will acquire
    all shares that we purchase in the tender offer at the same
    purchase price regardless of whether the stockholder tendered at
    a lower price. However, because of the &#147;odd lot&#148;
    priority, proration and conditional tender provisions described
    in this offer to purchase, we may not purchase all of the shares
    tendered at or below the purchase price if more than the number
    of shares we seek are properly tendered. We will return tendered
    shares that we do not purchase to the tendering stockholders at
    our expense as promptly as practicable after the expiration of
    the tender offer. <I>See Section&#160;1.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We reserve the right to purchase more than
    116,666,665&#160;shares pursuant to the tender offer, subject to
    certain limitations and legal requirements. <I>See
    Section&#160;1.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer will expire at 5:00&#160;p.m., New York City
    time, on Wednesday, August&#160;8, 2007, unless extended (such
    date and time, as the same may be extended, the &#147;expiration
    date&#148;). We may, in our sole discretion, extend the period
    of time in which the tender offer will remain open.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Stockholders must complete the section of the letter of
    transmittal relating to the price at which they are tendering
    shares in order to properly tender shares.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay the purchase price, net to the tendering
    stockholders in cash, without interest, for all shares that we
    purchase. Tendering stockholders whose shares are registered in
    their own names and who tender directly to The Bank of New York,
    the depositary in the tender offer, will not be obligated to pay
    brokerage fees or commissions or, except as set forth in
    Instruction&#160;9 to the letter of transmittal, stock transfer
    taxes on the purchase of shares by us under the tender offer. If
    you own your shares through a bank, broker, dealer, trust
    company or other nominee and that person tenders your shares on
    your behalf, that person may charge you a fee for doing so. You
    should consult your bank, broker, dealer, trust company or other
    nominee to determine whether any charges will apply.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer is not conditioned upon any minimum number of
    shares being tendered. The tender offer is, however, subject to
    the receipt of financing and certain other conditions. <I>See
    Section&#160;7.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>OUR BOARD OF DIRECTORS HAS APPROVED THE TENDER OFFER.
    HOWEVER, NEITHER WE NOR OUR BOARD OF DIRECTORS MAKES ANY
    RECOMMENDATION TO YOU AS TO WHETHER YOU SHOULD TENDER OR REFRAIN
    FROM TENDERING YOUR SHARES OR AS TO THE PURCHASE PRICE OR
    PURCHASE PRICES AT WHICH YOU MAY CHOOSE TO TENDER YOUR SHARES.
    YOU MUST MAKE YOUR OWN DECISION AS TO WHETHER TO TENDER YOUR
    SHARES AND, IF SO, HOW MANY SHARES TO TENDER AND THE PRICE OR
    PRICES AT WHICH TO TENDER YOUR SHARES. IN SO DOING, YOU SHOULD
    READ CAREFULLY THE INFORMATION IN THIS OFFER TO PURCHASE AND IN
    THE LETTER OF TRANSMITTAL, INCLUDING OUR REASONS FOR MAKING THE
    TENDER OFFER. <I>SEE SECTION&#160;2</I>. OUR DIRECTORS AND
    EXECUTIVE OFFICERS AND LIBERTY MEDIA CORPORATION HAVE ADVISED US
    THAT THEY DO NOT INTEND TO TENDER ANY SHARES IN THE TENDER
    OFFER.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, at the expiration date, more than 116,666,665&#160;shares
    (or such greater number of shares as we may elect to purchase,
    subject to applicable law) are properly tendered at or below the
    purchase price and not properly withdrawn, we will buy shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    first, from all holders of &#147;odd lots&#148; (holders of less
    than 100&#160;shares) who properly tender all their shares at or
    below the purchase price selected by us and do not properly
    withdraw them before the expiration date;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    second, on a pro rata basis from all other stockholders who
    properly tender shares at or below the purchase price selected
    by us, other than stockholders who tender conditionally and
    whose conditions are not satisfied;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    third, only if necessary to permit us to purchase
    116,666,665&#160;shares (or such greater number of shares as we
    may elect to purchase, subject to applicable law) from holders
    who have tendered shares at or below the purchase price subject
    to the condition that a specified minimum number of the
    holder&#146;s shares be purchased if any of the holder&#146;s
    shares are purchased in the tender offer (for which the
    condition was not initially satisfied) by random lot, to the
    extent feasible. To be eligible for purchase by random lot,
    stockholders whose shares are conditionally tendered must have
    tendered all of their shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not purchase all of the shares tendered pursuant to the
    tender offer even if the shares are tendered at or below the
    purchase price. <I>See Section&#160;1</I>, <I>Section&#160;5
    </I>and <I>Section&#160;6</I>, respectively, for additional
    information concerning priority, proration and conditional
    tender procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;15 of this offer to purchase describes the material
    United States federal income tax consequences of a sale of
    shares under the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Participants in the Expedia Retirement Savings Plan may not use
    the letter of transmittal to direct the tender of their shares
    held in the plan but instead must follow the separate
    instructions related to those shares. If the trustee for the
    plan has not received a participant&#146;s instructions at least
    three business days prior to the expiration date of the tender
    offer, the trustee may not tender any shares held on behalf of
    that participant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of vested but unexercised options to purchase shares may
    exercise such options in accordance with the applicable option
    plan and tender some or all of the shares issued upon such
    exercise. Holders of exercisable warrants for common stock may
    exercise such warrants in accordance with the terms of the
    applicable warrant agreement and tender some or all of the
    shares issued upon such exercise. Holders of our Series&#160;A
    preferred stock may convert their shares into shares of common
    stock in accordance with the terms of the preferred stock and
    tender some or all of the shares issued upon such conversion.
    <B>In order to validly tender shares in the tender offer, you
    must exercise or convert your options, warrants or preferred
    stock, as the case may be. Only tenders of common stock will be
    accepted under the terms of the tender offer.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of June&#160;15, 2007, we had issued and outstanding
    278,170,459&#160;shares of common stock and
    25,599,998&#160;shares of Class&#160;B common stock. The
    116,666,665&#160;shares of common stock that we are offering to
    purchase represent approximately 42% of the shares of common
    stock then outstanding, and represent approximately 38% of the
    total number of shares of common stock and shares of
    Class&#160;B common stock then outstanding and 22% of the total
    combined voting power of the common stock and Class&#160;B
    common stock then outstanding. The shares of common stock are
    listed on Nasdaq under the ticker symbol &#147;EXPE&#148;.
    <I>See Section&#160;8. </I>We urge stockholders to obtain
    current market quotations for the shares.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    TENDER OFFER</FONT></B>
</DIV>
</A>
<A name='105'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Number of
    Shares; Proration.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;Upon the terms and subject to the
    conditions of the tender offer, Expedia will purchase
    116,666,665&#160;shares, or such fewer number of shares as are
    properly tendered and not properly withdrawn in accordance with
    Section&#160;4, before the scheduled expiration date of the
    tender offer, at prices not greater than $30.00 nor less than
    $27.50 per share, net to the seller in cash, without interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;expiration date&#148; means 5:00&#160;p.m., New
    York City time, on Wednesday, August&#160;8, 2007, unless and
    until Expedia, in its sole discretion, shall have extended the
    period of time during which the tender offer will remain open,
    in which event the term &#147;expiration date&#148; shall refer
    to the latest time and date at which the tender offer, as so
    extended by Expedia, shall expire. See Section&#160;16 for a
    description of Expedia&#146;s right to extend, delay, terminate
    or amend the tender offer. In accordance with the rules of the
    Securities and Exchange Commission (the &#147;SEC&#148;),
    Expedia may, and Expedia expressly reserves the right to,
    purchase under the tender offer an additional number of shares
    not to exceed 2% of the outstanding shares of common stock
    without amending or extending the tender offer. <I> </I>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See Section&#160;16. </I>In the event of an over-subscription
    of the tender offer as described below, shares tendered at or
    below the purchase price will be subject to proration, except
    for odd lots. The proration period and, except as described
    herein, withdrawal rights, expire on the expiration date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the price to be paid for shares above $30.00 per share
    or decrease the price to be paid for shares below $27.50 per
    share,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the number of shares being sought in the tender offer
    and this increase in the number of shares sought exceeds 2% of
    the outstanding shares of common stock,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    decrease the number of shares being sought,&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the tender offer is scheduled to expire at any time earlier than
    the expiration of a period ending on the tenth business day
    from, and including, the date that we first publish, send or
    give notice, in the manner specified in Section&#160;16, of any
    such increase or decrease, we will extend the tender offer until
    the expiration of ten business days from the date that we first
    publish notice of any increase or decrease. For the purposes of
    the tender offer, a &#147;business day&#148; means any day other
    than a Saturday, Sunday or U.S.&#160;federal holiday and
    consists of the time period from 12:01&#160;a.m. through 12:00
    Midnight, New York City time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The tender offer is not conditioned on any minimum number of
    shares being tendered. The tender offer is, however, subject to
    the receipt of financing and certain other conditions. <I>See
    Section&#160;7.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with Instruction&#160;5 of the letter of
    transmittal, stockholders desiring to tender shares must specify
    the price or prices, not greater than $30.00 nor less than
    $27.50 per share, at which they are willing to sell their shares
    to Expedia under the tender offer. Alternatively, stockholders
    desiring to tender shares can choose not to specify a price and,
    instead, specify that they will sell their shares at the
    purchase price that Expedia ultimately pays for shares properly
    tendered and not properly withdrawn in the tender offer, which
    could result in the tendering stockholder receiving a price per
    share as low as $27.50 or as high as $30.00. If tendering
    stockholders wish to maximize the chance that Expedia will
    purchase their shares, they should check the box in the section
    of the letter of transmittal captioned &#147;Shares Tendered at
    Price Determined Pursuant to the Tender Offer.&#148; Note that
    this election could result in the tendered shares being
    purchased at the minimum price of $27.50 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>To tender shares properly, stockholders must specify one and
    only one price box in the appropriate section in each letter of
    transmittal. If you specify more than one price or if you fail
    to check any price at all you will not have validly tendered
    your shares. <I>See Section&#160;3.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As promptly as practicable following the expiration date,
    Expedia will, in its sole discretion, determine the purchase
    price that it will pay for shares properly tendered and not
    properly withdrawn, taking into account the number of shares
    tendered and the prices specified by tendering stockholders.
    Expedia will select the lowest purchase price, not greater than
    $30.00 nor less than $27.50 per share, net to the seller in
    cash, without interest, that will enable it to purchase
    116,666,665&#160;shares, or such fewer number of shares as are
    properly tendered and not properly withdrawn in the tender
    offer. Expedia will purchase all shares properly tendered at or
    below the purchase price (and not properly withdrawn), all at
    the purchase price, upon the terms and subject to the conditions
    of the tender offer, including the odd lot, proration and
    conditional tender provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will not purchase shares tendered at prices greater than
    the purchase price and shares that it does not accept in the
    tender offer because of proration provisions or conditional
    tenders. Expedia will return to the tendering stockholders
    shares that it does not purchase in the tender offer at
    Expedia&#146;s expense as promptly as practicable after the
    expiration date. By following the instructions to the letter of
    transmittal, stockholders can specify one minimum price for a
    specified portion of their shares and a different minimum price
    for other specified shares, but stockholders must submit a
    separate letter of transmittal for shares tendered at each
    price. Stockholders also can specify the order in which Expedia
    will purchase the specified portions in the event that, as a
    result of the proration provisions or otherwise, Expedia
    purchases some but not all of the tendered shares pursuant to
    the tender offer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the number of shares properly tendered at or below the
    purchase price and not properly withdrawn prior to the
    expiration date is fewer than or equal to
    116,666,665&#160;shares, or such greater number of shares as
    Expedia may elect to purchase, subject to applicable law,
    Expedia will, upon the terms and subject to the conditions of
    the tender offer, purchase all such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Priority of Purchases.</I>&#160;&#160;Upon the terms and
    subject to the conditions of the tender offer, if greater than
    116,666,665&#160;shares, or such greater number of shares as
    Expedia may elect to purchase, subject to applicable law, have
    been properly tendered at prices at or below the purchase price
    and not properly withdrawn prior to the expiration date, Expedia
    will purchase properly tendered shares on the basis set forth
    below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First, we will purchase all shares tendered by all holders of
    &#147;odd lots&#148; who:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tender all shares owned beneficially or of record at a price at
    or below the purchase price selected by us (partial tenders will
    not qualify for this preference);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    complete the section entitled &#147;Odd Lots&#148; in the letter
    of transmittal and, if applicable, in the notice of guaranteed
    delivery.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Second, subject to the conditional tender provisions described
    in Section&#160;6, we will purchase all other shares tendered at
    prices at or below the purchase price selected by us on a pro
    rata basis with appropriate adjustments to avoid purchases of
    fractional shares, as described below.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Third, only if necessary to permit us to purchase
    116,666,665&#160;shares (or such greater number of shares as we
    may elect to purchase, subject to applicable law), shares
    conditionally tendered (for which the condition was not
    initially satisfied) at or below the purchase price selected by
    us, will, to the extent feasible, be selected for purchase by
    random lot. To be eligible for purchase by random lot,
    stockholders whose shares are conditionally tendered must have
    tendered all of their shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia may not purchase all of the shares that a stockholder
    tenders in the tender offer even if they are tendered at prices
    at or below the purchase price. It is also possible that Expedia
    will not purchase any of the shares conditionally tendered even
    though those shares were tendered at prices at or below the
    purchase price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Odd Lots.</I>&#160;&#160;For purposes of the tender offer,
    the term &#147;odd lots&#148; means all shares properly tendered
    prior to the expiration date at prices at or below the purchase
    price and not properly withdrawn by any person, referred to as
    an &#147;odd lot&#148; holder, who owns beneficially or of
    record an aggregate of fewer than 100&#160;shares and so
    certifies in the appropriate place on the letter of transmittal
    and, if applicable, on the notice of guaranteed delivery. To
    qualify for this preference, an odd lot holder must tender all
    shares owned beneficially or of record by the odd lot holder in
    accordance with the procedures described in Section&#160;3. As
    set forth above, Expedia will accept odd lots for payment before
    proration, if any, of the purchase of other tendered shares.
    This preference is not available to partial tenders or to
    beneficial or record holders of an aggregate of 100 or more
    shares, even if these holders have separate accounts or share
    certificates representing fewer than 100&#160;shares. By
    accepting the tender offer, an odd lot holder who holds shares
    in its name and tenders its shares directly to the depositary
    would not only avoid the payment of brokerage commissions, but
    also would avoid any applicable odd lot discounts in a sale of
    the odd lot holder&#146;s shares on Nasdaq. Any odd lot holder
    wishing to tender all of its shares pursuant to the tender offer
    should complete the section entitled &#147;Odd Lots&#148; in the
    letter of transmittal and, if applicable, in the notice of
    guaranteed delivery.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Proration.</I>&#160;&#160;If proration of tendered shares is
    required, Expedia will determine the proration factor as soon as
    practicable following the expiration date. Subject to adjustment
    to avoid the purchase of fractional shares and subject to the
    provisions governing conditional tenders described in
    Section&#160;6 of this offer to purchase, proration for each
    stockholder that tenders shares will be based on the ratio of
    the total number of shares that we accept for purchase
    (excluding &#147;odd lots&#148;) to the total number of shares
    properly tendered (and not properly withdrawn) at or below the
    purchase price by all stockholders (other than &#147;odd
    lot&#148; holders).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because of the difficulty in determining the number of shares
    properly tendered, including shares tendered by guaranteed
    delivery procedures, as described in Section&#160;3, and not
    properly withdrawn, and because of the odd lot procedure and
    conditional tender provisions, Expedia does not expect that it
    will be able to announce the final proration factor or commence
    payment for any shares purchased under the tender offer until at
    least five business days after the expiration date. The
    preliminary results of any proration will be announced by press
    release as
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    promptly as practicable after the expiration date. Stockholders
    may obtain preliminary proration information from the
    information agent and may be able to obtain this information
    from their brokers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described in Section&#160;15, the number of shares that
    Expedia will purchase from a stockholder under the tender offer
    may affect the U.S.&#160;federal income tax consequences to that
    stockholder and, therefore, may be relevant to that
    stockholder&#146;s decision whether or not to tender shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will mail this offer to purchase and the letter of
    transmittal to record holders of shares and we will furnish this
    offer to purchase to brokers, dealers, commercial banks and
    trust companies whose names, or the names of whose nominees,
    appear on Expedia&#146;s stockholder list or, if applicable,
    that are listed as participants in a clearing agency&#146;s
    security position listing for subsequent transmittal to
    beneficial owners of shares.
</DIV>
<A name='106'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    of the Tender Offer.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia believes that the tender offer, together with an
    increase in our indebtedness, is a prudent use of Expedia&#146;s
    financial resources given its business profile, cash flow,
    capital structure and assets, the current market price of the
    shares and the terms on which corporate credit currently is
    generally available in the credit markets. Expedia further
    believes that investing in its own shares is an attractive use
    of capital and an effective and efficient means to provide value
    to its stockholders, including by lowering the company&#146;s
    weighted average cost of capital. The tender offer represents
    the opportunity for Expedia to return cash to stockholders who
    elect to tender their shares. Where shares are tendered by the
    registered owner of those shares directly to the depositary, the
    sale of those shares in the tender offer will permit the seller
    to avoid the usual transaction costs associated with open market
    sales. Furthermore, odd lot holders who hold shares registered
    in their names and tender their shares directly to the
    depositary and whose shares are purchased under the tender offer
    will avoid not only the payment of brokerage commissions but
    also any applicable odd lot discounts that might be payable on
    sales of their shares in Nasdaq transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders who do not tender their shares pursuant to the
    tender offer and stockholders who otherwise retain an equity
    interest in Expedia as a result of a partial tender of shares,
    proration or a conditional tender for which the condition is not
    satisfied will continue to be owners of Expedia and will realize
    a proportionate increase in their relative equity interest in
    Expedia immediately following consummation of the tender offer
    and thus in Expedia&#146;s future earnings and assets, and will
    bear the attendant risks and rewards associated with owning the
    equity securities of Expedia, including risks associated with
    owning equity in a company that will be more highly leveraged
    than Expedia is currently. The impact of the tender offer on
    Expedia&#146;s earnings per share will depend upon, among other
    things, the terms and conditions of the additional indebtedness
    that we expect to incur under bank credit facilities
    <FONT style="white-space: nowrap">and/or</FONT>
    through the issuance of new debt securities to fund the purchase
    of shares in the tender offer and for general corporate
    purposes, and any indebtedness we may incur to refinance that
    indebtedness following the tender offer. However, in the event
    that Expedia repurchases 116,666,665&#160;shares pursuant to the
    tender offer, the company believes the tender offer will be
    dilutive to earnings per share. <I>See Section&#160;10 and
    Section&#160;11</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the completion of the tender offer, Expedia expects to
    have sufficient cash flow and access to funding to meet its cash
    needs for normal operations, anticipated capital expenditures
    and acquisition opportunities that may arise. However, Expedia
    does from time to time evaluate potential acquisition
    opportunities, which in some cases may involve a significant
    amount of cash consideration, and which, as a result of the
    purchase of shares in the tender offer and any such acquisitions
    for cash using the proceeds of debt financing, could result in a
    significant further increase in the amount of Expedia&#146;s
    indebtedness and leverage. <I>See Section&#160;9.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither Expedia nor the Expedia Board of Directors makes any
    recommendation to any stockholder as to whether to tender or
    refrain from tendering any shares or as to the price or prices
    at which stockholders may choose to tender their shares. Expedia
    has not authorized any person to make any recommendation.
    Stockholders should carefully evaluate all information in the
    tender offer, should consult their own investment and tax
    advisors, and should make their own decisions about whether to
    tender shares, and, if so, how many shares to tender and the
    price or prices at which to tender. Expedia has been advised
    that none of its directors or executive officers or Liberty
    Media Corporation (&#147;Liberty Media&#148;) intends to tender
    any shares in the tender offer.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The repurchase of 116,666,665 shares of common stock pursuant to
    the tender offer is in addition to the share repurchase program
    authorized by our Board of Directors in August 2006, pursuant to
    which Expedia is authorized to repurchase up to an additional
    20&#160;million outstanding shares of common stock. Whether or
    not we may make such repurchases or any additional repurchases
    will depend on many factors, including, without limitation, the
    number of shares, if any, that we purchase in this tender offer,
    whether or not, in Expedia&#146;s judgment, such future
    repurchases would be accretive to earnings per share,
    Expedia&#146;s business and financial performance and situation,
    the business and market conditions at the time, including the
    price of the shares, and such other factors as Expedia may
    consider relevant. Any future repurchases may be on the same
    terms or on terms that are more or less favorable to the selling
    stockholders than the terms of the tender offer.
    <FONT style="white-space: nowrap">Rule&#160;13e-4</FONT>
    of the Exchange Act prohibits Expedia and its affiliates from
    purchasing any shares, other than pursuant to the tender offer,
    until at least ten business days after the expiration date of
    the tender offer, except pursuant to certain limited exceptions
    provided in
    <FONT style="white-space: nowrap">Rule&#160;14e-5</FONT>
    of the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will hold in treasury any shares that it acquires
    pursuant to the tender offer, and such shares will be available
    for Expedia to issue without further stockholder action (except
    as required by applicable law or the rules of Nasdaq or any
    other securities exchange on which the shares may then be
    listed) for various purposes including, without limitation,
    acquisitions, raising additional capital and the satisfaction of
    obligations under existing or future employee benefit or
    compensation programs or stock plans or compensation programs
    for directors.
</DIV>
<A name='107'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;Procedures
    for Tendering Shares.</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Proper Tender of Shares.</I>&#160;&#160;For stockholders to
    properly tender shares under the tender offer:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the depositary must receive, at the depositary&#146;s address
    set forth on the back cover page of this offer to purchase,
    share certificates (or confirmation of receipt of such shares
    under the procedure for book-entry transfer set forth below),
    together with a properly completed and duly executed letter of
    transmittal, including any required signature guarantees, or an
    &#147;agent&#146;s message,&#148; and any other documents
    required by the letter of transmittal, before the tender offer
    expires,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the tendering stockholder must comply with the guaranteed
    delivery procedure set forth below.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a broker, dealer, commercial bank, trust company or other
    nominee holds your shares, it is likely they have an earlier
    deadline for you to act to instruct them to accept the tender
    offer on your behalf. We urge you to contact your broker,
    dealer, commercial bank, trust company or other nominee to find
    out their applicable deadline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In accordance with Instruction&#160;5 of the letter of
    transmittal, stockholders desiring to tender shares in the
    tender offer must properly indicate in the section captioned
    (1)&#160;&#147;Price (in Dollars) Per Share at Which Shares are
    Being Tendered&#148; on the letter of transmittal the price (in
    multiples of $0.25) at which stockholders are tendering shares
    or (2)&#160;&#147;Shares Tendered at Price Determined Pursuant
    to the Tender Offer&#148; in the letter of transmittal that the
    stockholder will accept the purchase price determined by Expedia
    in accordance with the terms of the tender offer.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If tendering stockholders wish to maximize the chance that
    Expedia will purchase their shares, they should check the box in
    the section of the letter of transmittal captioned &#147;Shares
    Tendered at Price Determined Pursuant to the Tender Offer.&#148;
    Note that this election could have the effect of decreasing the
    price at which Expedia purchases tendered shares because shares
    tendered using this election will be available for purchase at
    the minimum price of $27.50 per share and, as a result, it is
    possible that this election could result in Expedia purchasing
    tendered shares at the minimum price of $27.50 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A stockholder who desires to tender shares at more than one
    price must complete a separate letter of transmittal for each
    price at which such stockholder tenders shares, provided that a
    stockholder may not tender the same shares (unless properly
    withdrawn previously in accordance with Section&#160;4)&#160;at
    more than one price. <B>To tender shares properly, stockholders
    must check one and only one price box in the appropriate section
    of each letter of transmittal. If you check more than one box or
    if you fail to check any box at all you will not have validly
    tendered your shares.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Odd lot holders who tender all shares must complete the section
    captioned &#147;Odd Lots&#148; in the letter of transmittal and,
    if applicable, in the notice of guaranteed delivery, to qualify
    for the preferential treatment available to odd lot holders as
    set forth in Section&#160;1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We urge stockholders who hold shares through brokers or banks
    to consult the brokers or banks to determine whether transaction
    costs are applicable if they tender shares through the brokers
    or banks and not directly to the depositary.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Signature Guarantees.</I>&#160;&#160;Except as otherwise
    provided below, all signatures on a letter of transmittal must
    be guaranteed by a financial institution (including most banks,
    savings and loans associations and brokerage houses) which is a
    participant in the Securities Transfer Agents Medallion Program.
    Signatures on a letter of transmittal need not be guaranteed if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the letter of transmittal is signed by the registered holder of
    the shares (which term, for purposes of this Section&#160;3,
    shall include any participant in The Depository
    Trust&#160;Company, referred to as the &#147;book-entry transfer
    facility,&#148; whose name appears on a security position
    listing as the owner of the shares) tendered therewith and the
    holder has not completed either the box captioned &#147;Special
    Delivery Instructions&#148; or the box captioned &#147;Special
    Payment Instructions&#148; in the letter of transmittal;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if shares are tendered for the account of a bank, broker,
    dealer, credit union, savings association or other entity which
    is a member in good standing of the Securities Transfer Agents
    Medallion Program or a bank, broker, dealer, credit union,
    savings association or other entity which is an &#147;eligible
    guarantor institution,&#148; as such term is defined in
    <FONT style="white-space: nowrap">Rule&#160;17Ad-15</FONT>
    under the Exchange Act. <I>See Instruction&#160;1 of the letter
    of transmittal.</I>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a share certificate is registered in the name of a person
    other than the person executing a letter of transmittal, or if
    payment is to be made to a person other than the registered
    holder, then the certificate must be endorsed or accompanied by
    an appropriate stock power, in either case signed exactly as the
    name of the registered holder appears on the certificate, with
    the signature guaranteed by an eligible guarantor institution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will make payment for shares tendered and accepted for
    payment under the tender offer only after the depositary timely
    receives share certificates or a timely confirmation of the
    book-entry transfer of the shares into the depositary&#146;s
    account at the book-entry transfer facility as described above,
    a properly completed and duly executed letter of transmittal, or
    an agent&#146;s message in the case of a book-entry transfer,
    and any other documents required by the letter of transmittal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Method of Delivery.&#160;&#160;</I><B>The method of delivery
    of all documents, including share certificates, the letter of
    transmittal and any other required documents, is at the election
    and risk of the tendering stockholder. If you choose to deliver
    required documents by mail, we recommend that you use registered
    mail with return receipt requested, properly insured.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Book-Entry Delivery.</I>&#160;&#160;The depositary will
    establish an account with respect to the shares for purposes of
    the tender offer at the book-entry transfer facility within two
    business days after the date of this offer to purchase, and any
    financial institution that is a participant in the book-entry
    transfer facility&#146;s system may make book-entry delivery of
    the shares by causing the book-entry transfer facility to
    transfer shares into the depositary&#146;s account in accordance
    with the book-entry transfer facility&#146;s procedures for
    transfer. Although participants in the book-entry transfer
    facility may effect delivery of shares through a book-entry
    transfer into the depositary&#146;s account at the book-entry
    transfer facility, either
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a properly completed and duly executed letter of transmittal,
    including any required signature guarantees, or an agent&#146;s
    message, and any other required documents must, in any case, be
    transmitted to and received by the depositary at its address set
    forth on the back cover page of this offer to purchase before
    the expiration date,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the guaranteed delivery procedure described below must be
    followed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Delivery of the letter of transmittal and any other required
    documents to the book-entry transfer facility does not
    constitute delivery to the depositary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;agent&#146;s message&#148; means a message
    transmitted by the book-entry transfer facility to, and received
    by, the depositary, which states that the book-entry transfer
    facility has received an express acknowledgment from the
    participant in the book-entry transfer facility tendering the
    shares that the participant has received and agrees to be bound
    by the terms of the letter of transmittal and that Expedia may
    enforce the agreement against the participant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expedia Retirement Savings Plan.</I>&#160;&#160;Participants
    who hold shares of Expedia common stock through the Expedia
    Retirement Savings Plan desiring to direct Fidelity Management
    Trust&#160;Company, the trustee for the plan, to tender any
    shares held through their accounts under the plan pursuant to
    the tender offer must instruct the trustee to tender such shares
    by properly completing, duly executing and returning to the
    trustee the election forms sent separately to such participants
    by Expedia. The trustee will aggregate all such tenders and
    execute letters of transmittal on behalf of all plan
    participants desiring to tender plan shares. <B>Delivery of a
    letter of transmittal by a participant in the plan with respect
    to any plan shares does not constitute proper tender of such
    shares. Only the trustee can properly tender any plan shares.
    The deadline for submitting election forms to the trustee is
    earlier than the expiration date because of the need to tabulate
    participant instructions. </B>If a stockholder desires to tender
    shares owned outside of a plan, as well as plan shares, such
    stockholder must properly complete and duly execute a letter of
    transmittal for the shares owned outside the plan and deliver
    such letter of transmittal directly to the depositary, and
    follow the special instructions provided by Expedia for
    directing the trustee to tender plan shares. Please direct any
    questions regarding the tender of plan shares or the withdrawal
    of plan shares previously tendered to the trustee in accordance
    with the procedures described in the separate materials provided
    to plan participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Federal Backup Withholding Tax.</I>&#160;&#160;Under the
    federal income tax backup withholding rules, 28% of the gross
    proceeds payable to a stockholder or other payee pursuant to the
    tender offer must be withheld and remitted to the United States
    Treasury, unless the stockholder or other payee provides his or
    her taxpayer identification number (employer identification
    number or social security number) to the depositary and
    certifies under penalties of perjury that such number is correct
    or otherwise establishes an exemption. Therefore, tendering
    stockholders should complete and sign the Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    included as part of the Letter of Transmittal in order to
    provide the information and certification necessary to avoid
    backup withholding, unless the stockholder otherwise establishes
    to the satisfaction of the depositary that the stockholder is
    not subject to backup withholding. Certain stockholders
    (including, among others, all corporations and certain
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    (as defined below in Section&#160;15)) are not subject to these
    backup withholding and reporting requirements. In order for a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    to qualify as an exempt recipient, that stockholder must submit
    an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or other applicable form, signed under penalties of perjury,
    attesting to that individual&#146;s exempt status. Tendering
    stockholders can obtain the applicable forms from the
    depositary. <I>See Instruction&#160;12 of the letter of
    transmittal.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>TO PREVENT U.S.&#160;FEDERAL BACKUP WITHHOLDING TAX ON THE
    GROSS PAYMENTS MADE TO YOU FOR SHARES PURCHASED UNDER THE TENDER
    OFFER, IF YOU DO NOT OTHERWISE ESTABLISH AN EXEMPTION&#160;FROM
    SUCH WITHHOLDING, YOU MUST PROVIDE THE DEPOSITARY WITH YOUR
    CORRECT TAXPAYER IDENTIFICATION NUMBER AND PROVIDE OTHER
    INFORMATION BY COMPLETING THE SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    INCLUDED WITH THE LETTER OF TRANSMITTAL.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Federal Income Tax Withholding for
    Non-U.S.&#160;Holders.</I>&#160;&#160;Gross proceeds payable
    pursuant to the tender offer to a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    or his or her agent will be subject to withholding of federal
    income tax at a rate of 30%, unless a reduced rate of
    withholding is applicable pursuant to an income tax treaty or an
    exemption from withholding is applicable because such gross
    proceeds are effectively connected with the conduct of a trade
    or business within the United States (and, if an income tax
    treaty applies, the gross proceeds are generally attributable to
    a United States permanent establishment maintained by such
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder).</FONT>
    In order to claim a reduction of or an exemption from
    withholding tax, a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    must deliver to the depositary a validly completed and executed
    IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (with respect to income tax treaty benefits) or W8-ECI (with
    respect to amounts effectively connected with the conduct of a
    trade or business within the United States) claiming such
    exemption or reduction before the payment is made. Tendering
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    can obtain the applicable forms from the depositary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    may be eligible to file for a refund of such tax or a portion of
    such tax if such stockholder meets the &#147;complete
    termination,&#148; &#147;substantially disproportionate&#148; or
    &#147;not essentially equivalent to a dividend&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    tests described in Section&#160;15 or if such stockholder is
    entitled to a reduced rate of withholding pursuant to a tax
    treaty and Expedia withheld at a higher rate.
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    should consult their own tax advisors regarding the tax
    consequences to them of participating in the tender offer,
    including the application of federal income tax withholding,
    their potential eligibility for a withholding tax reduction or
    exemption, and the refund procedure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a discussion of the material United States federal income
    tax consequences to tendering stockholders, <I>see
    Section&#160;15.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Guaranteed Delivery.</I>&#160;&#160;If a stockholder desires
    to tender shares under the tender offer and the
    stockholder&#146;s share certificates are not immediately
    available or the stockholder cannot deliver the share
    certificates to the depositary before the expiration date, or
    the stockholder cannot complete the procedure for book-entry
    transfer on a timely basis, or if time will not permit all
    required documents to reach the depositary before the expiration
    date, the stockholder may nevertheless tender the shares,
    provided that the stockholder satisfies all of the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the stockholder makes the tender by or through an eligible
    guarantor institution;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the depositary receives by hand, mail, overnight courier or
    facsimile transmission, before the expiration date, a properly
    completed and duly executed notice of guaranteed delivery in the
    form&#160;Expedia has provided, specifying the price at which
    the stockholder is tendering shares, including (where required)
    a signature guarantee by an eligible guarantor institution in
    the form set forth in such notice of guaranteed
    delivery;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the depositary receives the share certificates, in proper form
    for transfer, or confirmation of book-entry transfer of the
    shares into the depositary&#146;s account at the book-entry
    transfer facility, together with a properly completed and duly
    executed letter of transmittal, or a manually signed facsimile
    thereof, and including any required signature guarantees, or an
    agent&#146;s message, and any other documents required by the
    letter of transmittal, within three Nasdaq trading days after
    the date of receipt by the depositary of the notice of
    guaranteed delivery.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Return of Unpurchased Shares.</I>&#160;&#160;The depositary
    will return certificates for unpurchased shares as promptly as
    practicable after the expiration or termination of the tender
    offer or the proper withdrawal of the shares, as applicable, or,
    in the case of shares tendered by book-entry transfer at the
    book-entry transfer facility, the depositary will credit the
    shares to the appropriate account maintained by the tendering
    stockholder at the book-entry transfer facility, in each case
    without expense to the stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Determination of Validity; Rejection of Shares; Waiver of
    Defects; No Obligation to Give Notice of
    Defects.</I>&#160;&#160;Expedia will determine, in its sole
    discretion, all questions as to the number of shares that we
    will accept, the price that we will pay for shares that we
    accept and the validity, form, eligibility (including time of
    receipt) and acceptance for payment of any tender of shares, and
    our determination will be final and binding on all parties.
    Expedia reserves the absolute right to reject any or all tenders
    of any shares that it determines are not in proper form or the
    acceptance for payment of or payment for which Expedia
    determines may be unlawful. Expedia also reserves the absolute
    right to waive any defect or irregularity in any tender with
    respect to any particular shares or any particular stockholder,
    and Expedia&#146;s interpretation of the terms of the tender
    offer will be final and binding on all parties. No tender of
    shares will be deemed to have been properly made until the
    stockholder cures, or Expedia waives, all defects or
    irregularities. None of Expedia, the depositary, the information
    agent or any other person will be under any duty to give
    notification of any defects or irregularities in any tender or
    incur any liability for failure to give this notification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tendering Stockholder&#146;s Representation and Warranty;
    Expedia&#146;s Acceptance Constitutes an
    Agreement.</I>&#160;&#160;A&#160;tender of shares under any of
    the procedures described above will constitute the tendering
    stockholder&#146;s acceptance of the terms and conditions of the
    tender offer, as well as the tendering stockholder&#146;s
    representation and warranty to Expedia that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the stockholder has a net long position in the shares or
    equivalent securities at least equal to the shares tendered
    within the meaning of
    <FONT style="white-space: nowrap">Rule&#160;14e-4</FONT>
    of the Exchange Act,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the tender of shares complies with
    <FONT style="white-space: nowrap">Rule&#160;14e-4.</FONT>
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is a violation of
    <FONT style="white-space: nowrap">Rule&#160;14e-4</FONT>
    for a person, directly or indirectly, to tender shares for that
    person&#146;s own account unless, at the time of tender and at
    the end of the proration period or period during which shares
    are accepted by lot (including any extensions thereof), the
    person so tendering:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    has a net long position equal to or greater than the amount
    tendered in
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shares,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    securities immediately convertible into, or exchangeable or
    exercisable for, the shares,&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    will deliver or cause to be delivered the shares in accordance
    with the terms of the tender offer.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">Rule&#160;14e-4</FONT>
    provides a similar restriction applicable to the tender or
    guarantee of a tender on behalf of another person.
    Expedia&#146;s acceptance for payment of shares tendered under
    the tender offer will constitute a binding agreement between the
    tendering stockholder and Expedia upon the terms and conditions
    of the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Lost or Destroyed Certificates.</I>&#160;&#160;Stockholders
    whose share certificate for part or all of their shares has been
    lost, stolen, misplaced or destroyed may contact The Bank of New
    York, the transfer agent for Expedia shares, at the address and
    telephone number set forth on the back cover of this offer to
    purchase, for instructions as to obtaining a replacement share
    certificate. That share certificate will then be required to be
    submitted together with the letter of transmittal in order to
    receive payment for shares that are tendered and accepted for
    payment. The stockholder may be required to post a bond to
    secure against the risk that the original share certificate may
    subsequently emerge. We urge stockholders to contact The Bank of
    New York immediately in order to permit timely processing of
    this documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Stockholders must deliver share certificates, together with a
    properly completed and duly executed letter of transmittal,
    including any signature guarantees, or an agent&#146;s message,
    and any other required documents to the depositary and not to
    Expedia or the information agent. Expedia or the information
    agent will not forward any such documents to the depositary and
    delivery to Expedia or the information agent will not constitute
    a proper tender of shares.</B>
</DIV>
<A name='108'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Withdrawal
    Rights.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders may withdraw shares tendered under the tender offer
    at any time prior to the expiration date. Thereafter, such
    tenders are irrevocable, except that they may be withdrawn after
    12:00 Midnight, New York City time, on August&#160;24, 2007,
    unless theretofore accepted for payment as provided in this
    offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a withdrawal to be effective, the depositary must timely
    receive a written or facsimile transmission notice of withdrawal
    at the depositary&#146;s address set forth on the back cover
    page of this offer to purchase. Any such notice of withdrawal
    must specify the name of the tendering stockholder, the number
    of shares that the stockholder wishes to withdraw and the name
    of the registered holder of the shares. If the share
    certificates to be withdrawn have been delivered or otherwise
    identified to the depositary, then, before the release of the
    share certificates, the serial numbers shown on the share
    certificates must be submitted to the depositary and the
    signature(s) on the notice of withdrawal must be guaranteed by
    an eligible guarantor institution, unless the shares have been
    tendered for the account of an eligible guarantor institution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a stockholder has tendered shares under the procedure for
    book-entry transfer set forth in Section&#160;3, any notice of
    withdrawal also must specify the name and the number of the
    account at the book-entry transfer facility to be credited with
    the withdrawn shares and must otherwise comply with the
    book-entry transfer facility&#146;s procedures. Expedia will
    determine all questions as to the form and validity (including
    the time of receipt) of any notice of withdrawal, in its sole
    discretion, and such determination will be final and binding on
    all parties. None of Expedia, the depositary, the information
    agent or any other person will be under any duty to give
    notification of any defects or irregularities in any notice of
    withdrawal or incur any liability for failure to give this
    notification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A stockholder may not rescind a withdrawal and Expedia will deem
    any shares that a stockholder properly withdraws not properly
    tendered for purposes of the tender offer, unless the
    stockholder properly re-tenders the withdrawn shares before the
    expiration date by following one of the procedures described in
    Section&#160;3.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='109'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Purchase
    of Shares and Payment of Purchase Price.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the terms and subject to the conditions of the tender
    offer, as promptly as practicable following the expiration date,
    Expedia:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    will determine the purchase price it will pay for shares
    properly tendered and not properly withdrawn before the
    expiration date, taking into account the number of shares so
    tendered and the prices specified by tendering stockholders, and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    will accept for payment and pay for, and thereby purchase,
    shares properly tendered at prices at or below the purchase
    price and not properly withdrawn prior to the expiration date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the tender offer, Expedia will be deemed to have
    accepted for payment, and therefore purchased, shares that are
    properly tendered at or below the purchase price and are not
    properly withdrawn, subject to the &#147;odd lot,&#148;
    proration and conditional tender provisions of the tender offer,
    only when, as and if it gives oral or written notice to the
    depositary of its acceptance of the shares for payment under the
    tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the terms and subject to the conditions of the tender
    offer, as promptly as practicable after the expiration date,
    Expedia will accept for payment and pay a single per share
    purchase price not greater than $30.00 nor less than $27.50 per
    share for 116,666,665&#160;shares, subject to increase or
    decrease as provided in Section&#160;16, if properly tendered
    and not properly withdrawn, or such fewer number of shares as
    are properly tendered and not properly withdrawn.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will pay for shares that it purchases under the tender
    offer by depositing the aggregate purchase price for these
    shares with the depositary, which will act as agent for
    tendering stockholders for the purpose of receiving payment from
    Expedia and transmitting payment to the tendering stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of proration, Expedia will determine the proration
    factor and pay for those tendered shares accepted for payment as
    soon as practicable after the expiration date; however, Expedia
    does not expect to be able to announce the final results of any
    proration and commence payment for shares purchased until at
    least five business days after the expiration date. Shares
    tendered and not purchased, including all shares tendered at
    prices greater than the purchase price and shares that Expedia
    does not accept for purchase due to proration or conditional
    tenders, will be returned to the tendering stockholder, or, in
    the case of shares tendered by book-entry transfer, will be
    credited to the account maintained with the book-entry transfer
    facility by the participant therein who so delivered the shares,
    at Expedia&#146;s expense, as promptly as practicable after the
    expiration date or termination of the tender offer without
    expense to the tendering stockholders. <B>Under no circumstances
    will Expedia pay interest on the purchase price regardless of
    any delay in making the payment. </B>If certain events occur,
    Expedia may not be obligated to purchase shares under the tender
    offer. <I>See Section&#160;7.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will pay all stock transfer taxes, if any, payable on
    the transfer to it of shares purchased under the tender offer.
    If, however,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payment of the purchase price is to be made to any person other
    than the registered holder,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certificate(s) for shares not tendered or tendered but not
    purchased are to be returned in the name of and to any person
    other than the registered holder(s) of such shares, or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if tendered certificates are registered in the name of any
    person other than the person signing the letter of transmittal,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the amount of all stock transfer taxes, if any (whether imposed
    on the registered holder or the other person), payable on
    account of the transfer to the person will be deducted from the
    purchase price unless satisfactory evidence of the&#160;payment
    of the stock transfer taxes, or exemption therefrom, is
    submitted. <I>See Instruction&#160;9 of the letter of
    transmittal.</I>
</DIV>
<A name='110'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Conditional
    Tender of Shares.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the exception for holders of odd lots, in the event
    of an over-subscription of the tender offer, shares tendered at
    or below the purchase price prior to the expiration date will be
    subject to proration. <I>See Section&#160;1. </I>As
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    discussed in Section&#160;15, the number of shares to be
    purchased from a particular stockholder may affect the tax
    treatment of the purchase to the stockholder and the
    stockholder&#146;s decision whether to tender. Accordingly, a
    stockholder may tender shares subject to the condition that
    Expedia must purchase a specified minimum number of the
    stockholder&#146;s shares tendered pursuant to a letter of
    transmittal if Expedia purchases any shares tendered. Any
    stockholder desiring to make a conditional tender must so
    indicate in the box entitled &#147;Conditional Tender&#148; in
    the letter of transmittal and indicate the minimum number of
    shares that Expedia must purchase if Expedia purchases any
    shares. Stockholders should consult with their own financial or
    tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the expiration date, if more than 116,666,665&#160;shares
    (or such greater number of shares as we may elect to purchase,
    subject to applicable law) are properly tendered and not
    properly withdrawn, so that we must prorate our acceptance of
    and payment for tendered shares, we will calculate a preliminary
    proration factor based upon all shares properly tendered,
    conditionally or unconditionally. If the effect of this
    preliminary proration would be to reduce the number of shares
    that we purchase from any stockholder below the minimum number
    specified, the shares conditionally tendered will automatically
    be regarded as withdrawn (except as provided in the next
    paragraph). All shares tendered by a stockholder subject to a
    conditional tender that are withdrawn as a result of proration
    will be returned at our expense to the tendering stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After giving effect to these withdrawals, we will accept the
    remaining shares properly tendered, conditionally or
    unconditionally, on a pro rata basis, if necessary. If
    conditional tenders that would otherwise be regarded as
    withdrawn would cause the total number of shares that we
    purchase to fall below 116,666,665 (or such greater number of
    shares as we may elect to purchase, subject to applicable law)
    then, to the extent feasible, we will select enough of the
    shares conditionally tendered that would otherwise have been
    withdrawn to permit us to purchase such number of shares. In
    selecting among the conditional tenders, we will select by
    random lot, treating all tenders by a particular taxpayer as a
    single lot, and will limit our purchase in each case to the
    designated minimum number of shares to be purchased. To be
    eligible for purchase by random lot, stockholders whose shares
    are conditionally tendered must have tendered all of their
    shares.
</DIV>
<A name='111'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Conditions
    of the Tender Offer.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding any other provision of the tender offer, Expedia
    will not be required to accept for payment, purchase or pay for
    any shares tendered, and may terminate or amend the tender offer
    or may postpone the acceptance for payment of, or the purchase
    of and the payment for shares tendered, subject to
    <FONT style="white-space: nowrap">Rule&#160;13e-4(f)</FONT>
    under the Exchange Act, if, at any time on or after
    June&#160;29, 2007 and before the expiration date, any of the
    following events shall have occurred (or shall have been
    reasonably determined by Expedia to have occurred) and, in
    Expedia&#146;s reasonable judgment and regardless of the
    circumstances giving rise to the event or events, such event or
    events make it inadvisable to proceed with the tender offer or
    with acceptance for payment:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we shall not have received the necessary financing for the
    tender offer on such terms as may be acceptable to us (the
    &#147;financing condition&#148;);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we shall not have received an opinion from Duff&#160;&#038;
    Phelps LLC or another nationally recognized valuation firm
    satisfactory to us, in form and substance satisfactory to us, as
    to the solvency of Expedia after giving effect to the tender
    offer and the financing therefor;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have been threatened or instituted or there shall be
    pending any action or proceeding by any government or
    governmental, regulatory or administrative agency, authority or
    tribunal or any other person, domestic or foreign, before any
    court, authority, agency or tribunal that directly or indirectly:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    challenges the making of the tender offer, the acquisition of
    some or all of the shares under the tender offer or otherwise
    relates in any manner to the tender offer, or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in Expedia&#146;s reasonable judgment, could materially and
    adversely affect the business, condition (financial or other),
    assets, income, operations or prospects of Expedia or any of its
    subsidiaries, or otherwise materially impair in any way the
    contemplated future conduct of the business of Expedia or any of
    its subsidiaries or materially impair the contemplated benefits
    of the tender offer to Expedia;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have been any action threatened, pending or taken,
    or approval withheld, or any statute, rule, regulation,
    judgment, order or injunction threatened, proposed, sought,
    promulgated, enacted, entered, amended, enforced or deemed to be
    applicable to the tender offer or Expedia or any of its
    subsidiaries, by any court or any authority, agency or tribunal
    that, in Expedia&#146;s reasonable judgment, would or might,
    directly or indirectly:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make the acceptance for payment of, or payment for, some or all
    of the shares illegal or otherwise restrict or prohibit
    completion of the tender offer,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delay or restrict the ability of Expedia, or render Expedia
    unable, to accept for payment or pay for some or all of the
    shares,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    materially impair the contemplated benefits of the tender offer
    to Expedia, or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    materially and adversely affect the business, condition
    (financial or other), assets, income, operations or prospects of
    Expedia, or any of its subsidiaries, or otherwise materially
    impair in any way the contemplated future conduct of the
    business of Expedia or any of its subsidiaries;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have occurred:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any general suspension of trading in, or limitation on prices
    for, securities on any national securities exchange or in the
    over-the-counter market in the United States or the European
    Union,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the declaration of a banking moratorium or any suspension of
    payments in respect of banks in the United&#160;States or the
    European Union,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a material change in United States or any other currency
    exchange rates or a suspension of or limitation on the markets
    therefor,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the commencement or escalation of a war, armed hostilities or
    other international or national calamity directly or indirectly
    involving the United States or any of its territories, including
    but not limited to an act of terrorism,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any limitation (whether or not mandatory) by any governmental,
    regulatory or administrative agency or authority on, or any
    event, or any disruption or adverse change in the financial or
    capital markets generally or the market for loan syndications in
    particular, that, in Expedia&#146;s reasonable judgment, might
    affect the extension of credit by banks or other lending
    institutions in the United States,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any change in the general political, market, economic or
    financial conditions in the United States or abroad that could,
    in the reasonable judgment of Expedia, have a material adverse
    effect on the business, condition (financial or other), assets,
    income, operations or prospects of Expedia or any of its
    subsidiaries, or otherwise materially impair in any way the
    contemplated future conduct of the business of Expedia or any of
    its subsidiaries,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of any of the foregoing existing at the time of the
    commencement of the tender offer, a material acceleration or
    worsening thereof,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any decline in the market price of the shares or the Dow Jones
    Industrial Average or the Standard and Poor&#146;s Index of 500
    Industrial Companies or the New York Stock Exchange or the
    Nasdaq Composite Index by a material amount (including, without
    limitation, an amount greater than 10%) from the close of
    business on June&#160;18, 2007;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a tender offer or exchange offer for any or all of the shares
    (other than this tender offer), or any merger, business
    combination or other similar transaction with or involving
    Expedia or any of its subsidiaries or affiliates, shall have
    been proposed, announced or made by any person;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any change or combination of changes shall have occurred or been
    threatened in the business, condition (financial or other),
    assets, income, operations, prospects or stock ownership of
    Expedia or any of its subsidiaries, that in Expedia&#146;s
    reasonable judgment is or may reasonably be likely to be
    material and adverse
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    to Expedia or any of its subsidiaries or that otherwise
    materially impairs in any way the contemplated future conduct of
    the business of Expedia or any of its subsidiaries;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any approval, permit, authorization, favorable review or consent
    of any governmental entity required to be obtained in connection
    with the tender offer shall not have been obtained on terms
    satisfactory to Expedia in its reasonable judgment;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Expedia shall not have received the Required Tax Opinion (as
    defined in Section&#160;12 below) in respect of the purchase of
    shares pursuant to the tender offer (See &#147;Interests of
    Directors and Executive Officers; Transactions and Arrangements
    Concerning Shares&#160;&#151; Transactions and Arrangements
    Concerning Shares&#160;&#151; Tax Sharing Agreement&#148;);
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Expedia reasonably determines that the completion of the tender
    offer and the purchase of the shares may:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cause the shares to be held of record by fewer than
    300&#160;persons, or
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cause the shares to cease to be traded on Nasdaq or to be
    eligible for deregistration under the Exchange Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing conditions are for the sole benefit of Expedia and
    may be asserted by Expedia regardless of the circumstances
    giving rise to any of these conditions, and may be waived by
    Expedia, in whole or in part, at any time and from time to time,
    before the expiration date, in its sole discretion.
    Expedia&#146;s failure at any time to exercise any of the
    foregoing rights shall not be deemed a waiver of any of these
    rights, and each of these rights shall be deemed an ongoing
    right that may be asserted at any time and from time to time. In
    the event that the financing condition is satisfied or waived
    less than five business days prior to the scheduled expiration
    date of the tender offer, we will extend the tender offer to
    ensure that at least five business days remain in the tender
    offer following the satisfaction or waiver of the financing
    condition. Any determination or judgment by Expedia concerning
    the events described above will be final and binding on all
    parties.
</DIV>
<A name='112'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Price
    Range of Shares; Dividends.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of common stock have been listed on Nasdaq under the
    ticker symbol &#147;EXPE&#148; since August&#160;9, 2005. The
    following table sets forth the high and low sales prices for
    Expedia common stock for each of the quarterly periods presented.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fiscal 2005:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Third Quarter (from August&#160;9,
    2005 through September&#160;30, 2005)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Fourth Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fiscal 2006:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">First Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Second Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Third Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Fourth Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fiscal 2007:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">First Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Second Quarter (through
    June&#160;28, 2007)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We publicly announced the tender offer prior to the opening of
    trading on Nasdaq on June&#160;19, 2007. On June&#160;18, 2007,
    the reported closing price of the shares on Nasdaq was $25.50
    per share. The average of the reported closing prices of the
    shares on Nasdaq over the ten trading days immediately prior to
    and including June&#160;18, 2007 was $24.32 per share. On
    June&#160;28, 2007, the last trading day prior to the
    commencement of the tender offer, the reported closing price of
    the common stock on Nasdaq was $29.49. <B>We urge stockholders
    to obtain current market quotations for the shares.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not historically paid dividends on our common stock or
    Class&#160;B common stock. Declaration and payment of future
    dividends, if any, will be at the discretion of the Board of
    Directors and will depend on, among other things, our results of
    operations, cash requirements and surplus, financial condition,
    share dilution
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    management, legal risks, capital requirements relating to
    research and development, investments and acquisitions, and
    challenges to our business model and other factors that the
    Board of Directors may deem relevant. In addition, our current
    bank credit facility limits, and any new bank credit facilities
    that we may enter into and other debt securities we may publicly
    or privately issue to finance the purchase of shares in the
    tender offer may limit, our ability to pay cash dividends under
    certain circumstances.
</DIV>
<A name='113'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Source
    and Amount of Funds.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer is subject to the receipt of financing by
    Expedia. Assuming that 116,666,665&#160;shares are purchased in
    the tender offer at a price between $27.50 and $30.00 per share,
    the aggregate purchase price will be between approximately
    $3.2&#160;billion and $3.5&#160;billion. Expedia anticipates
    that it will obtain all of the funds necessary to purchase
    shares tendered in the tender offer, and to pay related fees and
    expenses, through a mix of (1)&#160;the proceeds of new bank
    credit facilities (which we would enter into before the
    expiration of the tender offer), the public or private placement
    of new debt securities,
    <FONT style="white-space: nowrap">and/or</FONT>
    additional indebtedness that we expect to incur under our
    current bank credit facility (which we would amend before the
    expiration of the tender offer), and (2)&#160;cash on hand. We
    expect to repay any additional indebtedness that Expedia incurs
    to purchase tendered shares in the tender offer using cash from
    Expedia&#146;s operations and may refinance any such borrowing
    from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia expects that its related fees and expenses for the
    tender offer will be approximately $2.6&#160;million, excluding
    any fees and expenses related to the financing described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Current Bank Credit Facility.</I>&#160;&#160;On July&#160;8,
    2005 we entered into a Credit Agreement, as amended as of
    December&#160;7, 2006 and December&#160;18, 2006, among us,
    Expedia, Inc., a Washington corporation, Travelscape, Inc., a
    Nevada corporation, Hotels.com, a Delaware corporation, and
    Hotwire, Inc., a Delaware corporation, as Borrowers; the Lenders
    party thereto; Bank of America, N.A., as Syndication Agent;
    Wachovia Bank, N.A. and The Royal Bank of Scotland PLC, as
    Co-Documentation Agents; JPMorgan Chase Bank, N.A., as
    Administrative Agent; and J.P.&#160;Morgan Europe Limited, as
    London Agent. The credit agreement is a $1.0&#160;billion
    five-year unsecured revolving credit facility and is
    unconditionally guaranteed by certain of our subsidiaries. The
    facility bears interest based on our financial leverage; as of
    June&#160;15, 2007 the applicable interest rate was equal to
    LIBOR plus 50 basis points. The amount of standby letters of
    credit issued under the facility reduces the amount available to
    us for borrowing. As of June&#160;15, 2007 there were
    approximately $52.6&#160;million of outstanding stand-by letters
    of credit issued under the facility, leaving approximately
    $947.4&#160;million available for future borrowings. The credit
    facility also contains financial covenants consisting of a
    maximum leverage ratio and a minimum net worth requirement. We
    would not be able to borrow the funds necessary to purchase the
    shares subject to the tender offer without first amending or
    refinancing the credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Risks Relating to Higher Leverage.</I>&#160;&#160;Expedia
    expects that the level of its indebtedness after completion of
    the tender offer and the related financing transactions will be
    substantially greater than Expedia&#146;s historical levels of
    indebtedness. Upon completion of the tender offer and assuming
    we purchase 116,666,665 shares at the $30 maximum per share
    purchase price, Expedia&#146;s indebtedness is expected to be up
    to approximately $4.065&#160;billion, compared to approximately
    $500&#160;million as of June&#160;15, 2007. <I>See Section
    10.</I> This indebtedness could adversely affect Expedia&#146;s
    ability to raise additional capital to fund its operations and
    react to changes in the economy or our industry. However,
    Expedia may also have additional borrowing availability under
    its existing bank credit facility
    <FONT style="white-space: nowrap">and/or</FONT> new
    revolving credit facilities upon completion of the tender offer.
    In deciding whether or not to tender their shares in the tender
    offer, stockholders should consider that Expedia&#146;s
    substantially higher leverage upon the completion of the tender
    offer would subject Expedia to risks, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a significant decrease in net operating cash flow or significant
    increase in expenses of Expedia could make it difficult for
    Expedia to satisfy its debt service requirements or force it to
    modify its operations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we expect that all or a significant portion of the indebtedness
    to be incurred to fund the purchase of shares in the tender
    offer, as well as our existing debt, may be secured by pledges
    of Expedia&#146;s interests in certain subsidiaries and security
    interests in, and mortgages on, substantially all tangible and
    intangible assets, reducing Expedia&#146;s ability to obtain
    additional financing;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Expedia&#146;s ability to obtain additional financing for
    working capital, capital expenditures, business development,
    future acquisitions, debt service requirements or other purposes
    may be impaired or any such financing may not be available on
    terms favorable to Expedia;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a substantial portion of cash flow from operations will be
    dedicated to interest expense and the payment of principal,
    which will reduce the funds that would otherwise be available to
    Expedia for its operations and future business opportunities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the substantial leverage will increase Expedia&#146;s
    vulnerability to general economic downturns and adverse industry
    conditions and limit its flexibility in planning for, or
    reacting to, changes in its business and its industry generally;
    and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a substantial portion of Expedia&#146;s borrowings may be at
    variable rates of interest, thereby exposing Expedia to the risk
    of increased interest rates.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='114'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Financial Information.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Historical Financial Information.</I>&#160;&#160;We
    incorporate by reference the financial statements and notes
    thereto on pages F-1 through F-46 of our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006. In addition, we
    incorporate by reference the financial information included in
    Part&#160;I Item&#160;1 (beginning on page&#160;2)&#160;of our
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2007. You should refer to
    Section&#160;11 for instructions on how you can obtain copies of
    our SEC filings, including filings that contain our financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Summary Historical Consolidated Financial
    Data.</I>&#160;&#160;The following table sets forth our summary
    historical consolidated financial data for the years ended
    December&#160;31, 2006 and December&#160;31, 2005 and the three
    month periods ended March&#160;31, 2007 and March&#160;31, 2006,
    certain selected ratios for such periods, and our financial
    position at March&#160;31, 2007. This financial data has been
    derived from, and should be read in conjunction with, our
    audited consolidated financial statements and the related notes
    filed as part of our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006 and the unaudited
    consolidated financial statements and the related notes filed as
    part of our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2007. Financial data for
    the three month periods ended March&#160;31, 2007 and
    March&#160;31, 2006, and the selected ratios for such periods,
    are unaudited and, in the opinion of our management, include all
    adjustments necessary for a fair presentation of the data. The
    results of operations for the interim periods are not
    necessarily indicative of the results to be expected for the
    entire year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Three Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>March&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom">
    <B>(In thousands, except per share and ratio data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 9pt">Consolidated Statements of
    Income Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Revenue
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    550,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    493,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,237,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,119,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Operating income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    351,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    397,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Other income (expense), net
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,402
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Income before income taxes and
    minority interest
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    384,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    413,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Provision for income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,612
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,658
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (139,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (185,977
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Net income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,335
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Net earnings per share available to
    common stockholders:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 9pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 9pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Shares used in computing earnings
    per share:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 9pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    345,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    338,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    336,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 9pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    323,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    365,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    352,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    349,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 9pt">Other Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Ratio of earnings to fixed
    charges(a)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.24
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.42
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.16x
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.42x
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Earnings included in the calculation of this ratio consist of
    income before income taxes and minority interest plus fixed
    charges, less interest capitalized. Fixed charges include
    interest expense as well as the imputed interest component of
    rental expense.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As of March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(In thousands,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 9pt">Consolidated Balance Sheet
    Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Current assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,114,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Total assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,258,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Current liabilities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,928,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Long-term debt
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Total stockholders&#146; equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,297,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Shares outstanding&#160;&#151;
    common stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Book value per share(a)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects stockholders&#146; equity divided by shares outstanding.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Summary Unaudited Pro Forma Consolidated Financial
    Data.</I>&#160;&#160;The following table sets forth summary
    unaudited pro forma consolidated financial data for the year
    ended December&#160;31, 2006 and the three months ended
    March&#160;31, 2007 and certain ratios for such periods. This
    summary unaudited pro forma consolidated financial data gives
    effect to the purchase of shares pursuant to the tender offer,
    as if such purchase had occurred on January&#160;1, 2007 and
    2006 for the consolidated statements of income data for the
    three months ended March&#160;31, 2007 and for the year ended
    December&#160;31, 2006, respectively, and on March&#160;31, 2007
    for the consolidated balance sheet data as of March&#160;31,
    2007. Such data also assumes that the purchase of shares is
    financed with debt on the terms described in the footnotes to
    the table below. This information should be read in conjunction
    with Summary Historical Consolidated Financial Data and our
    audited consolidated financial statements and the related notes
    filed as part of our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2006 and the unaudited
    consolidated financial statements and the related notes filed as
    part of our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2007. This summary
    unaudited pro forma consolidated financial data is not
    necessarily indicative of either our financial position or
    results of operations that actually would have been attained had
    the purchase of shares pursuant to the tender offer and the
    related financing been completed at the dates indicated, or will
    be achieved in the future. There can be no assurance that we
    will secure the necessary financing for the tender offer on
    terms acceptable to us or at all. Our future results are subject
    to prevailing economic and industry specific conditions and
    financial, business and other known and unknown risks and
    uncertainties, certain of which are beyond our control. These
    factors include, without limitation, those described in this
    offer to purchase under &#147;Forward-Looking Statements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended March&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>(In thousands, except per share and ratio data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Consolidated Statements of
    Income Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Revenue
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    550,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    550,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,237,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,237,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Operating income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    351,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    351,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Other income (expense), net
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,402
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73,037
</TD>
<TD nowrap align="left" valign="bottom">
    )(a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (82,439
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (291,254
</TD>
<TD nowrap align="left" valign="bottom">
    )(a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (257,685
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Income (loss) before income taxes
    and minority interest
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73,037
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,105
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    384,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (291,254
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Provision for income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,612
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,157
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (139,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,523
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,928
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Net income (loss)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (43,269
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,493
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (185,731
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Net earnings (loss) per share
    available to common stockholders:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.04
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.04
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Shares used in computing earnings
    per share:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,667
</TD>
<TD nowrap align="left" valign="bottom">
    )(b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    338,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,667
</TD>
<TD nowrap align="left" valign="bottom">
    )(b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    221,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    323,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,667
</TD>
<TD nowrap align="left" valign="bottom">
    )(b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    207,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    352,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,667
</TD>
<TD nowrap align="left" valign="bottom">
    )(b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    235,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Other Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <FONT style="font-size: 10pt">Ratio of earnings to fixed charges
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.24
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.83
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.16
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.29x
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects interest expense on $3,564,600,000 in new borrowings
    with average terms of approximately seven years at a stated rate
    of interest of 8% per annum and amortization of estimated debt
    issuance costs of $62,000,000.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects a reduction of 116,666,665&#160;shares assumed to be
    repurchased in the transaction as of the beginning of the
    periods presented.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of March&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(In thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Consolidated Balance Sheet
    Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Current assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,114,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,114,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Total assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,258,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,000
</TD>
<TD nowrap align="left" valign="bottom">
    (a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,320,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Current liabilities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,928,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,646
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,964,358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Long-term debt
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,528,954
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,028,954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Total stockholders&#146; equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,297,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,502,600
</TD>
<TD nowrap align="left" valign="bottom">
    )(c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,794,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Shares outstanding&#160;&#151;
    common stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,667
</TD>
<TD nowrap align="left" valign="bottom">
    )(d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    186,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Book value per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects deferred debt issuance costs.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects indebtness of $3,564,600,000 to finance the repurchase
    and all related fees, of which $35,646,000 is assumed payable
    within one year.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects the repurchase of 116,666,665 shares at an average
    price of $30.00 per share, plus associated transaction fees and
    costs of approximately $2,600,000.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (d) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects a reduction of 116,666,665 shares assumed to be
    repurchased in the transaction.</TD>
</TR>

</TABLE>
<A name='115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Information Concerning Expedia.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia, Inc. is an online travel company, empowering business
    and leisure travelers with the tools and information they need
    to efficiently research, plan, book and experience travel. We
    have created a global travel marketplace used by a broad range
    of leisure and corporate travelers and offline retail travel
    agents. We make available, on a stand-alone and package basis,
    travel products and services provided by numerous airlines,
    lodging properties, car rental companies, destination service
    providers, cruise lines and other travel products and services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our portfolio of brands, which are described below, includes:
    Expedia.com, Hotels.com, Hotwire.com, our private label programs
    (Worldwide Travel Exchange and Interactive Affiliate Network),
    Classic Vacations, Expedia Corporate Travel, eLong and
    TripAdvisor. In addition, many of these brands have related
    international points of sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our executive offices are located at 3150 139th&#160;Avenue
    S.E., Bellevue, Washington 98005, telephone number
    <FONT style="white-space: nowrap">(425)&#160;679-7200.</FONT>
    Our Internet address is <I>www.expediainc.com </I>for corporate
    and investor information. The information contained on our web
    site or connected to our web site is not incorporated by
    reference into this offer to purchase and should not be
    considered part of this offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Additional Information.</I>&#160;&#160;Expedia is subject to
    the information requirements of the Exchange Act, and, in
    accordance therewith, files periodic reports, proxy statements
    and other information relating to its business, financial
    condition and other matters. Expedia is required to disclose in
    these proxy statements certain information, as of particular
    dates, concerning the Expedia directors and executive officers,
    their compensation, securities granted to them, the principal
    holders of the securities of Expedia and any material interest
    of such persons in transactions with Expedia. Pursuant to
    <FONT style="white-space: nowrap">Rule&#160;13e-4(c)(2)</FONT>
    under the Exchange Act, Expedia has filed with the Securities
    and Exchange Commission an Issuer Tender Offer Statement on
    Schedule&#160;TO which includes additional information with
    respect to the tender offer. This material and other information
    may be inspected at the public reference facilities maintained
    by the Securities and Exchange Commission at Room&#160;1024,
    450&#160;Fifth Street, N.W., Washington,&#160;D.C. 20549. Copies
    of this material can also be obtained by mail, upon payment of
    the Securities and Exchange Commission&#146;s customary charges,
    by writing to the Public Reference Section at 450&#160;Fifth
    Street, N.W., Washington,&#160;D.C. 20549. The Securities and
    Exchange Commission also maintains a web site on the Internet at
    <I>www.sec.gov </I>that contains reports, proxy and information
    statements and other information regarding registrants that file
    electronically with the Securities and Exchange Commission.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    23
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Results of Operations.</I>&#160;&#160;Expedia expects to
    announce definitive results for the quarter ended June&#160;30,
    2007 on or after August&#160;2, 2007 and in any event prior to
    the expiration date of the tender offer. Stockholders are
    advised to review Expedia&#146;s earnings release when available.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Incorporation by Reference.</I>&#160;&#160;The rules of the
    Securities and Exchange Commission allow us to &#147;incorporate
    by reference&#148; information into this document, which means
    that we can disclose important information to you by referring
    you to another document filed separately with the Securities and
    Exchange Commission. These documents contain important
    information about us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 9pt">SEC Filings (File No.
    000-51447)</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 9pt">Period or Date Filed</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT></FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Year ended December 31, 2006
    (including information specifically incorporated by reference
    into the Annual Report on Form 10-K from Expedia&#146;s
    definitive proxy statement filed on April 30, 2007)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT></FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Quarter ended March 31, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT></FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Filed January 25, 2007, February
    15, 2007, May 8, 2007, June 19, 2007 and June 27, 2007
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We incorporate by reference the documents listed above. You may
    request a copy of these filings, at no cost, by writing or
    telephoning us at our principal executive offices at the
    following address: Investor Relations Department, Expedia, Inc.,
    3150 139th&#160;Avenue S.E., Bellevue, Washington 98005,
    telephone number
    <FONT style="white-space: nowrap">(425)&#160;679-7200.</FONT>
    Please be sure to include your complete name and address in the
    request.
</DIV>
<A name='116'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Interests
    of Directors and Executive Officers; Transactions and
    Arrangements Concerning Shares.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interests of Directors and Executive
    Officers.</I>&#160;&#160;As of June&#160;15, 2007, Expedia had
    issued and outstanding 278,170,459&#160;shares of common stock,
    25,599,998&#160;shares of Class&#160;B common stock,
    846&#160;shares of Series&#160;A preferred stock convertible
    into 846&#160;shares of common stock, outstanding warrants to
    purchase 34,641,544&#160;shares of common stock and outstanding
    options to purchase 21,497,131&#160;shares of common stock. The
    116,666,665&#160;shares Expedia is offering to purchase under
    the tender offer represent approximately 42% of the shares of
    common stock outstanding as of June&#160;15, 2007 and
    approximately 33% of the shares of common stock assuming
    exercise of all outstanding and exercisable warrants and options
    and the conversion of all outstanding shares of Class&#160;B
    common stock and Series&#160;A preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of June&#160;15, 2007, Expedia&#146;s directors and executive
    officers as a group (15 individuals) beneficially owned an
    aggregate of 86,396,527&#160;shares of common stock,
    representing approximately 27% of the outstanding shares of
    common stock assuming conversion or exercise of certain Expedia
    equity securities as described below. The directors and
    executive officers of Expedia are entitled to participate in the
    tender offer on the same basis as all other stockholders.
    However, they and Liberty Media have advised Expedia that they
    do not intend to tender any shares in the tender offer. To
    Expedia&#146;s knowledge, none of its affiliates intends to
    tender any shares in the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents information as of June&#160;15,
    2007 relating to the beneficial ownership of Expedia&#146;s
    capital stock by (1)&#160;each director and executive officer of
    Expedia, (2) all directors and executive officers of Expedia as
    a group and (3)&#160;Liberty Media. Except as set forth in the
    table, such persons listed in the table may be contacted at
    Expedia&#146;s corporate headquarters at 3150 139th&#160;Avenue
    S.E., Bellevue, Washington 98005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For each listed person, the number of shares of Expedia common
    stock and Class&#160;B common stock and the percentage of each
    such class listed assume the conversion or exercise of certain
    Expedia equity securities, as described below, owned by such
    person, but do not assume the conversion or exercise of any
    equity securities owned by any other person, entity or group.
    Shares of Expedia Class&#160;B common stock may, at the option
    of the holder, be converted on a one-for-one basis into shares
    of Expedia common stock. For each listed person, the number of
    shares of Expedia common stock and Class&#160;B common stock and
    the percentage of each such class listed include shares of
    Expedia common stock and Class&#160;B common stock that may be
    acquired by such person, entity or group on the conversion or
    exercise of equity securities, such as stock options and
    warrants, that can be converted or exercised, and restricted
    stock units that have or will have vested, within 60&#160;days
    of June&#160;15, 2007.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The percentage of votes for all classes of Expedia&#146;s
    capital stock is based on one vote for each share of common
    stock, 10 votes for each share of Class&#160;B common stock and
    two votes for each share of Series&#160;A preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The last two columns of the table below reflect ownership and
    voting percentages after giving effect to the tender offer,
    assuming Expedia purchases 116,666,665&#160;shares and that
    Expedia&#146;s directors and executive officers and Liberty
    Media do not tender any shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of Votes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(All Classes)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>Expedia Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>Expedia Class&#160;B Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of Votes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After Tender<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After Tender<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Beneficial Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(All Classes)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offer(+)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offer(+)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Liberty Media Corporation 12300
    Liberty Blvd. Englewood, CO 80112
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,219,787
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,599,998
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56.09
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71.76
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Barry Diller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,345,775
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.92
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,599,998
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.89
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73.71
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Victor A. Kaufman
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    839,732
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Dara Khosrowshahi
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    693,756
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">A. George &#147;Skip&#148; Battle
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    254,703
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Simon J. Breakwell
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,330
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Jonathan L. Dolgen
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,228
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">William R. Fitzgerald
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">David Goldhill
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Peter M. Kern
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">John C. Malone
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Michael B. Adler
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Kathleen K. Dellplain
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,396
</TD>
<TD nowrap align="left" valign="bottom">
    (12)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Burke F. Norton
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Paul Onnen
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Patricia L. Zuccotti
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,936
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">All executive officers and
    directors as a group (15&#160;persons)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86,396,527
</TD>
<TD nowrap align="left" valign="bottom">
    (13)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.42
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,599,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.08
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.55
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73.88
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (+) </TD>
    <TD></TD>
    <TD valign="bottom">
    Assuming Expedia purchases 116,666,665&#160;shares pursuant to
    the tender offer and that Expedia&#146;s directors and executive
    officers and Liberty Media do not tender.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (*) </TD>
    <TD></TD>
    <TD valign="bottom">
    The percentage of shares beneficially owned does not exceed 1%
    of the class.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on information filed on Schedule&#160;13D/A with the SEC
    on June&#160;28, 2007 by Liberty Media, Mr.&#160;Diller and the
    BDTV Entities. Consists of (i)&#160;43,619,789&#160;shares of
    Expedia common stock held by Liberty Media,
    (ii)&#160;1,176,594&#160;shares of Class&#160;B common stock
    held by Liberty Media and (iii)&#160;24,423,404&#160;shares of
    Class&#160;B common stock held by the BDTV Entities. The
    &#147;BDTV Entities&#148; consist of BDTV Inc., BDTV II Inc.,
    BDTV III Inc. and BDTV IV Inc. Pursuant to a Stockholders
    Agreement, dated as of August&#160;9, 2005 by and between
    Liberty Media and Mr.&#160;Diller (the &#147;Stockholders
    Agreement&#148;) described below, Mr.&#160;Diller generally has
    the right to vote all of the shares of Expedia common stock and
    Class&#160;B common stock held by Liberty Media and the BDTV
    Entities.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 1,176,594&#160;shares of Expedia Class&#160;B common
    stock held by Liberty Media and 24,423,404&#160;shares of
    Expedia Class&#160;B common stock held by the BDTV Entities.
    Pursuant to the Stockholders Agreement, Mr.&#160;Diller
    generally has the right to vote all of the shares of Expedia
    common stock and Class&#160;B common stock held by Liberty Media
    and the BDTV Entities.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on information filed on Schedule&#160;13D/A with the SEC
    on June&#160;28, 2007 by Liberty Media, Mr.&#160;Diller and the
    BDTV Entities. Consists of (i)&#160;5,441,618&#160;shares of
    Expedia common stock owned by Mr.&#160;Diller, (ii)&#160;options
    to purchase 9,500,000&#160;shares of Expedia common stock held
    by Mr.&#160;Diller, (iii)&#160;184,370&#160;shares of Expedia
    common stock held by a private foundation as to which
    Mr.&#160;Diller disclaims beneficial ownership,
    (iv)&#160;24,423,404&#160;shares of Expedia Class&#160;B common
    stock held by the BDTV Entities (see footnote 1 above), </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    (v)&#160;43,619,789&#160;shares of Expedia common stock held by
    Liberty Media (see footnote 1 above) and
    (vi)&#160;1,176,594&#160;shares of Expedia Class&#160;B common
    stock held by Liberty Media (see footnote 1 above). Pursuant to
    the Stockholders Agreement, Mr.&#160;Diller generally has the
    right to vote all of the shares of Expedia common stock and
    Class&#160;B common stock held by Liberty Media and the BDTV
    Entities. Excludes shares of Expedia common stock and options to
    purchase shares of Expedia common stock held by
    Diane&#160;Von&#160;Furstenberg, Mr.&#160;Diller&#146;s spouse,
    as to which Mr.&#160;Diller disclaims beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 1,176,594&#160;shares of Expedia Class&#160;B common
    stock held by Liberty Media and 24,423,404&#160;shares of
    Expedia Class&#160;B common stock held by the BDTV Entities.
    Pursuant to the Stockholders Agreement, Mr.&#160;Diller
    generally has the right to vote all of the shares of Expedia
    Class&#160;B common stock held by Liberty Media and the BDTV
    Entities.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 8,482&#160;shares of common stock and options to
    purchase 831,250&#160;shares of common stock that are
    exercisable within 60&#160;days of June&#160;15, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;145,560&#160;shares of common stock and
    (ii)&#160;options to purchase 548,196&#160;shares of common
    stock that are exercisable within 60&#160;days of June&#160;15,
    2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;5,000&#160;shares of common stock held by
    Mr.&#160;Battle, (ii)&#160;options to purchase
    232,137&#160;shares of common stock that are exercisable within
    60&#160;days of June&#160;15, 2007, (iii)&#160;2,500 restricted
    stock units that vest within 60&#160;days of June&#160;15, 2007,
    (iv)&#160;9,999&#160;shares of common stock held by the Battle
    Family Foundation, as to which Mr.&#160;Battle disclaims
    beneficial ownership, and (v)&#160;5,067&#160;shares of common
    stock held by Mr.&#160;Battle&#146;s wife as custodian under
    CAUTMA for Catherine McNelley, as to which Mr.&#160;Battle
    disclaims beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 23,399&#160;shares of common stock and the following
    securities that are exercisable within 60&#160;days of
    June&#160;15, 2007: (i)&#160;options to purchase
    33,763&#160;shares of common stock, and (ii)&#160;warrants to
    purchase 17,168&#160;shares of common stock.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;5,000&#160;shares of common stock,
    (ii)&#160;options to purchase 11,261&#160;shares of common stock
    that are exercisable within 60&#160;days of June&#160;15, 2007,
    (iii)&#160;2,500 restricted stock units that vest within
    60&#160;days of June&#160;15, 2007, and
    (iv)&#160;467&#160;shares of common stock held indirectly by a
    charitable trust, of which Mr.&#160;Dolgen is a trustee and as
    to which Mr.&#160;Dolgen disclaims beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes shares of Expedia common stock and Class&#160;B common
    stock owned by Liberty Media, as to which
    Messrs.&#160;Fitzgerald and Malone disclaim beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 5,000&#160;shares of common stock and 2,500
    restricted stock units that vest within 60&#160;days of
    June&#160;15, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 21,767&#160;shares of common stock and the following
    securities that are exercisable within 60&#160;days of
    June&#160;15, 2007: (i)&#160;options to purchase
    93,068&#160;shares of common stock, and (ii)&#160;a warrant to
    purchase 6,561&#160;shares of common stock.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 49,513,125&#160;shares of common stock,
    25,599,998&#160;shares of Class&#160;B common stock and the
    following securities that vest or are exercisable within
    60&#160;days of June&#160;15, 2007: (i)&#160;options to purchase
    11,249,675&#160;shares of common stock, (ii)&#160;warrants to
    purchase 23,729&#160;shares of common stock, and
    (iii)&#160;10,000 restricted stock units.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Recent Securities Transactions.</B>&#160;&#160;Based on
    Expedia&#146;s records and information provided to Expedia by
    its directors, executive officers, associates and subsidiaries,
    neither Expedia, nor, to the best of Expedia&#146;s knowledge,
    any directors or executive officers of Expedia or any associates
    or subsidiaries of Expedia, has effected any transactions in
    shares during the 60-day period before the date hereof, except
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    On June&#160;25, 2007, Jonathan L. Dolgen, a member of
    Expedia&#146;s Board of Directors, exercised options to purchase
    11,261&#160;shares at an exercise price of $6.92 per share,
    which Mr.&#160;Dolgen paid in cash. This exercise is not
    reflected in the beneficial ownership table above.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Upon their reelection to the Board of Directors at
    Expedia&#146;s annual meeting of stockholders on June&#160;6,
    2007, each of the following non-employee directors received a
    grant of 10,254 restricted stock units, which vest in three
    equal installments commencing on the first anniversary of the
    grant date: Mr.&#160;Battle, Mr.&#160;Breakwell,
    Mr.&#160;Dolgen, Mr.&#160;Goldhill and Mr.&#160;Kern (the
    &#147;Non-Employee Directors&#148;).
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    On June&#160;6, 2007, Dara Khosrowshahi, Expedia&#146;s Chief
    Executive Officer, received a grant of 100,000 restricted stock
    units, which vest in five equal installments commencing on the
    first anniversary of the grant date, subject to satisfaction of
    certain performance-related conditions.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    On June&#160;1, 2007, Kathleen K. Dellplain, Expedia&#146;s
    Executive Vice President, Human Resources, exercised options to
    purchase 7,271&#160;shares at an exercise price of $3.69 per
    share, of which 3,361&#160;shares valued at $24.03, the closing
    fair market value on the prior day, were withheld in
    satisfaction of the exercise price and tax withholding
    requirements on the exercise of the stock options.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    On May&#160;24, 2007, each of the Non-Employee Directors
    received 2,500&#160;shares of common stock upon vesting of
    restricted stock units granted in connection with their service
    on the Expedia Board of Directors.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Upon vesting of certain restricted stock units on May&#160;16,
    2007, Michael B. Adler, Expedia&#146;s Chief Financial Officer,
    received 27,570&#160;shares of common stock, 7,293 of which were
    withheld in satisfaction of tax withholding requirements.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Upon vesting of certain restricted stock units on May&#160;9,
    2007, Paul Onnen, Expedia&#146;s Executive Vice President,
    Technology, received 5,069&#160;shares of common stock, 1,341 of
    which were withheld in satisfaction of tax withholding
    requirements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Transactions and Arrangements Concerning Shares.
    <I>Warrants.</I></B> Expedia has fully vested stock warrants
    with expiration dates through February 2012 outstanding, certain
    of which trade on Nasdaq under the symbols &#147;EXPEW&#148; and
    &#147;EXPEZ.&#148; Each stock warrant is exercisable for a
    certain number of shares of our common stock or a fraction
    thereof. As of June&#160;15, 2007, we had approximately
    58.5&#160;million warrants outstanding with a weighted average
    exercise price of $22.33, which if exercised in full would
    entitle holders to acquire 34.6&#160;million of our common
    shares. These warrants included:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>EXPEW Warrants.</I>&#160;&#160;Each EXPEW warrant entitles
    its holder to purchase one half of one share of Expedia common
    stock at an exercise price equal to $15.61 per warrant. Each
    EXPEW warrant may be exercised on any business day on or prior
    to February&#160;4, 2009. The warrants trade on Nasdaq under the
    symbol &#147;EXPEW.&#148; As of June&#160;15, 2007, there were
    14.6&#160;million EXPEW warrants outstanding.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>EXPEZ Warrants.</I>&#160;&#160;Each EXPEZ warrant entitles
    its holder to purchase 0.969375&#160;shares of Expedia common
    stock at an exercise price equal to $11.56 per warrant. The
    exercise price must be paid in cash. Each EXPEZ warrant may be
    exercised on any business day on or prior to February&#160;4,
    2009. These warrants trade on Nasdaq under the symbol
    &#147;EXPEZ.&#148; As of June&#160;15, 2007, there were
    11.4&#160;million EXPEZ warrants outstanding.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>VUE Warrants.</I>&#160;&#160;Each Tranche&#160;1 and
    Tranche&#160;2 VUE warrant entitles its holder to purchase one
    half of a share of Expedia common stock at a weighted average
    exercise price of $12.79. The exercise price must be paid in
    cash. Each VUE warrant may be exercised on any business day on
    or prior to May&#160;7, 2012. As of June&#160;15, 2007, there
    were 32.2&#160;million VUE warrants outstanding.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Integrated Warrants.</I>&#160;&#160;Pursuant to the
    separation agreement (the &#147;separation agreement&#148;)
    entered into with IAC/InterActiveCorp (&#147;IAC&#148;), Expedia
    has issued into an escrow account a number of shares of Expedia
    common stock sufficient to satisfy the obligation for future
    delivery of Expedia common stock to the holders of warrants
    initially assumed or issued by IAC prior to the spin-off of
    Expedia from IAC in August 2005 (the &#147;spin-off&#148;) who
    elect to exercise them. Under the terms of the escrow agreement,
    any such shares of Expedia common stock that are not delivered
    to exercising warrant holders will be returned to Expedia upon
    the expiration of the warrants in accordance with their terms.
    As of June&#160;15, 2007, Expedia was obligated to deliver up to
    42,669&#160;shares of Expedia common stock to IAC pursuant to
    the separation agreement and the escrow agreement in connection
    with the exercise of these warrants for a weighted average
    exercise price per share equal to $21.43. The expiration dates
    of these warrants range from November&#160;7, 2009 to
    May&#160;19, 2010.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Obligations Relating to the Ask Jeeves
    Notes.</I></B>&#160;&#160;Under the separation agreement,
    Expedia contractually assumed IAC&#146;s obligation to deliver
    Expedia common stock to the holders (upon conversion) of certain
    Ask Jeeves, Inc. Zero Coupon Convertible Notes Due June&#160;1,
    2008 assumed by IAC in connection with the acquisition of Ask
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jeeves, Inc. Upon notice of conversion, Expedia is obligated to
    deliver shares of Expedia common stock to IAC for delivery to
    the holders of Ask Jeeves Notes, or deliver cash in equal value
    in lieu of issuing such shares. If Expedia elects to issue cash
    rather than shares, the holder may revoke its notice of
    conversion. Pursuant to an escrow agreement entered into with
    The Bank of New York, Expedia has deposited into an escrow
    account a number of its shares of common stock sufficient to
    satisfy its obligations for future delivery of Expedia shares.
    Any such shares of Expedia common stock placed in escrow that
    are not delivered to converting holders of notes will be
    returned to Expedia at the maturity of the notes. As of
    June&#160;15, 2007, Expedia could be required to deliver up to
    500,000&#160;shares of common stock pursuant to the separation
    agreement and the escrow agreement in connection with the
    conversion of these notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Tax Sharing Agreement.</I></B>&#160;&#160;IAC and Expedia
    entered into a tax sharing agreement in connection with the
    spin-off. The tax sharing agreement governs IAC&#146;s and
    Expedia&#146;s respective rights, responsibilities and
    obligations after the spin-off with respect to taxes for the
    periods ending on or before the spin-off. Under the tax sharing
    agreement Expedia generally (i)&#160;may not take (or fail to
    take) any action that would cause any representations,
    information or covenants in the separation documents concerning
    the spin-off or documents relating to the tax opinion concerning
    the spin-off to be untrue, (ii)&#160;may not take (or fail to
    take) any action that would cause the spin-off to lose its tax
    free status, (iii)&#160;may not sell, issue, redeem or otherwise
    acquire any of its equity securities (or equity securities of
    members of its group), except in specified transactions (not
    including the purchase of shares pursuant to the tender offer),
    for a period of 25&#160;months following the spin-off and
    (iv)&#160;may not, other than in the ordinary course of
    business, sell or otherwise dispose of a substantial portion of
    its assets, liquidate, merge or consolidate with any other
    person for a period of 25&#160;months following the spin-off.
    During that period, Expedia may take some actions prohibited by
    these covenants if it provides IAC with an Internal Revenue
    Service ruling or an unqualified opinion of counsel to the
    effect that these actions will not affect the tax free nature of
    the spin-off, in each case satisfactory to IAC in its sole and
    absolute discretion (such an opinion of counsel satisfactory to
    IAC, a &#147;Required Tax Opinion&#148;). Notwithstanding the
    receipt of any such Internal Revenue Service ruling or opinion,
    Expedia must indemnify IAC for any taxes and related losses
    resulting from (i)&#160;any act or failure to act described in
    the covenants above, (ii)&#160;any acquisition of equity
    securities or assets of Expedia or any member of its group, and
    (iii)&#160;any breach by Expedia or any member of its group of
    representations in the separation documents between IAC and
    Expedia or the documents relating to the tax opinion concerning
    the spin-off. Expedia&#146;s obligation to accept for payment,
    and pay for, shares tendered pursuant to the tender offer is
    conditioned on its receipt of a Required Tax Opinion in respect
    of the purchase of shares pursuant to the tender offer. <I>See
    Section&#160;7.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Stockholders Agreement.</I></B>&#160;&#160;Subject to the
    terms of a Stockholders Agreement between Mr.&#160;Diller and
    Liberty Media, Mr.&#160;Diller holds an irrevocable proxy to
    vote shares of Expedia common stock and Class&#160;B common
    stock beneficially owned by Liberty Media. By virtue of the
    proxy, as well as through shares owned by Mr.&#160;Diller
    directly, Mr.&#160;Diller is effectively able to control the
    outcome of all matters submitted to a vote or for the consent of
    Expedia&#146;s stockholders (other than with respect to the
    election by the holders of Expedia common stock of 25% of the
    members of Expedia&#146;s Board of Directors and matters as to
    which Delaware law requires a separate class vote).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, until the later of (1)&#160;the date
    Mr.&#160;Diller no longer serves as Chairman of Expedia and
    (2)&#160;the date Mr.&#160;Diller no longer holds the proxy to
    vote Liberty Media&#146;s shares of Expedia described above (or
    upon Mr.&#160;Diller becoming disabled, if that occurs first),
    and subject to the other provisions of the Stockholders
    Agreement, neither Liberty Media nor Mr.&#160;Diller can
    transfer shares of common stock or Class&#160;B common stock,
    other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    transfers by Mr.&#160;Diller to pay taxes relating to the
    granting, vesting
    <FONT style="white-space: nowrap">and/or</FONT>
    exercise of stock options to purchase common stock of Expedia;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    transfers to each party&#146;s respective affiliates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    pledges relating to financings, subject to certain
    conditions;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    transfers of options or common stock in connection with
    &#147;cashless exercises&#148; of Mr.&#160;Diller&#146;s options
    to purchase shares of common stock.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The restrictions on transfer are subject to a number of
    exceptions (which exceptions are generally subject to the rights
    of first refusal described below):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    either of Liberty Media or Mr.&#160;Diller may transfer shares
    of common stock or Class&#160;B common stock to an unaffiliated
    third party, subject to tag-along rights described below;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    either of Liberty Media or Mr.&#160;Diller may transfer shares
    of common stock or Class&#160;B common stock so long as, in the
    case of Mr.&#160;Diller, he continues to beneficially own at
    least 2,200,000&#160;shares of common stock and Class&#160;B
    common stock (including stock options) and, in the case of
    Liberty Media, Liberty Media continues to beneficially own
    2,000,000&#160;shares of common stock and Class&#160;B common
    stock, and in the case of a transfer of an interest in, or of
    any of the shares of common stock or Class&#160;B common stock
    held by, specified entities referred to as the &#147;BDTV
    Limited Entities,&#148; after such transfer, Liberty Media and
    Mr.&#160;Diller collectively control at least 50.1% of the total
    voting power of Expedia;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    either of Liberty Media or Mr.&#160;Diller may transfer shares
    of common stock or Class&#160;B common stock so long as the
    transfer complies with the requirements of Rule&#160;144 or
    Rule&#160;145 under the Securities Act, and, in the case of a
    transfer of an interest in, or of any of the shares of common
    stock or Class&#160;B common stock held by, the BDTV Limited
    Entities, after such transfer, Liberty Media and Mr.&#160;Diller
    collectively control at least 50.1% of the total voting power of
    Expedia.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of Mr.&#160;Diller and Liberty Media will be entitled to a
    right to &#147;tag-along&#148; (i.e., participate on a pro rata
    basis) on sales by the other of shares of common stock or
    Class&#160;B common stock to any third party. Liberty Media will
    not have a tag-along right in the event of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    sales by Mr.&#160;Diller of up to 2,000,000&#160;shares of
    common stock or Class B common stock within any rolling
    twelve-month period;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    transfers by Mr. Diller to pay taxes relating to the granting,
    vesting and/or exercise of stock options to purchase shares of
    common stock or transfers in connection with &#147;cashless
    exercises&#148; of Mr. Diller&#146;s options to purchase shares
    of common stock;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    specified &#147;brokers&#146; transactions,&#148; as defined
    under the Securities Act, referred to as &#147;market
    sales;&#148;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    generally, when Mr.&#160;Diller no longer serves as Chairman of
    Expedia.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Diller will not have a tag-along right with respect to
    hedging transactions and stock lending transactions related
    thereto effected by Liberty Media, in each case meeting certain
    requirements, or market sales by Liberty Media.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of Mr.&#160;Diller and Liberty Media has a right of first
    refusal in the case of a proposed transfer by the other of
    shares of Class&#160;B common stock of Expedia to a third party.
    If either Liberty Media or Mr.&#160;Diller proposes to transfer
    shares of Class&#160;B common stock, the other will be entitled
    to swap any shares of common stock it or he owns for such shares
    of Class&#160;B common stock (subject to the rights of first
    refusal described above). To the extent there remain shares of
    Class&#160;B common stock that the selling stockholder would
    otherwise transfer to a third party, such shares must first be
    converted into shares of common stock. This restriction does not
    apply to, among other specified transfers, transfers among the
    parties and their affiliates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the spin-off, Mr.&#160;Diller and Liberty
    Media agreed that the BDTV entities would hold shares of common
    stock and Class&#160;B common stock received by each BDTV entity
    as a result of the spin-off. Mr.&#160;Diller and Liberty Media
    will continue to have substantially similar arrangements with
    respect to the voting control and ownership of the equity of
    each BDTV entity, which together hold a substantial majority of
    the shares of Class&#160;B common stock. These arrangements
    effectively provide that Mr.&#160;Diller controls the voting of
    Expedia securities held by these entities, other than with
    respect to certain actions by Expedia, and Liberty Media retains
    substantially all of the equity interest in such entities.
    Liberty Media may purchase Mr.&#160;Diller&#146;s nominal equity
    interest in these entities for a fixed price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Diller&#146;s and Liberty Media&#146;s rights and
    obligations under the Stockholders Agreement generally terminate
    at such time as, in the case of Mr.&#160;Diller, he no longer
    beneficially owns at least 2,200,000&#160;shares of common stock
    and Class&#160;B common stock (including stock options) and, in
    the case of Liberty Media, Liberty Media no longer
</DIV>

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    <BR>
    29
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    beneficially owns at least 2,000,000&#160;shares of common stock
    and Class&#160;B common stock. Liberty Media&#146;s tag-along
    rights and obligations terminate at such time as Liberty Media
    ceases to beneficially own at least 5% of the total equity
    securities of Expedia. In calculating Liberty Media&#146;s
    beneficial ownership of shares of common stock and shares of
    Class&#160;B common stock of Expedia, Liberty Media will be
    deemed to own all shares of common stock and Class&#160;B common
    stock held by the BDTV Entities. In addition,
    Mr.&#160;Diller&#146;s rights under the Stockholders Agreement
    will terminate upon the later of (1)&#160;the date
    Mr.&#160;Diller ceases to serve as Chairman of Expedia or
    becomes disabled and (2)&#160;the date Mr.&#160;Diller no longer
    holds a proxy to vote the shares of Expedia owned by Liberty
    Media.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Governance Agreement.</I></B>&#160;&#160;Liberty Media,
    Expedia and Mr.&#160;Diller are parties to a Governance
    Agreement dated as of August&#160;9, 2005, as amended on
    June&#160;19, 2007 in connection with the announcement of the
    tender offer, pursuant to which, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Liberty Media has the right to nominate up to 20% of the number
    of directors of Expedia (rounded up to the next whole number if
    the number of directors is not an even multiple of five) so long
    as Liberty Media beneficially owns at least 33,651,963 equity
    securities of Expedia (and so long as Liberty Media&#146;s
    ownership percentage is at least equal to 15% of the total
    equity securities of Expedia);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Liberty Media has the right to nominate one director of Expedia
    so long as Liberty Media beneficially owns at least 22,434,642
    equity securities of Expedia (and so long as Liberty Media owns
    at least 5% of the total equity securities of Expedia).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For so long as certain conditions relating, among other things,
    to ownership are met, Expedia has agreed that, without the prior
    approval of Liberty Media
    <FONT style="white-space: nowrap">and/or</FONT>
    Mr.&#160;Diller, as applicable, it will not engage in any
    transaction that would result in Liberty Media or
    Mr.&#160;Diller having to divest any part of their interests in
    Expedia or any other material assets, or that would render any
    such ownership illegal or would subject Mr.&#160;Diller or
    Liberty Media to any fines, penalties or material additional
    restrictions or limitations. In addition, for so long as such
    ownership and other conditions are met, in the event that
    Expedia or any of its subsidiaries incurs any new obligations
    for borrowed money within the definition of &#147;total
    debt&#148; set forth in the Governance Agreement (other than in
    respect of specified refinancings) (&#147;Incurred Debt&#148;),
    if Expedia&#146;s &#147;total debt ratio&#148; (giving effect to
    such new obligations) equals or exceeds 8:1, and for so long as
    such ratio continues to equal or exceed 8:1, Expedia may not
    take certain specified actions without the prior approval of
    Liberty Media
    <FONT style="white-space: nowrap">and/or</FONT>
    Mr.&#160;Diller. These actions include, among other
    transactions, making material amendments to the certificate of
    incorporation or bylaws of Expedia, adopting any stockholder
    rights plan that would adversely affect Liberty Media or
    Mr.&#160;Diller, as applicable, and granting additional consent
    rights to a stockholder of Expedia. If the Incurred Debt is
    incurred by Expedia or a subsidiary in connection with the
    acquisition of a business, the calculation of Expedia&#146;s
    &#147;total debt ratio&#148; takes into account certain debt and
    cash of the acquired business and also takes into account twelve
    months of the EBITDA (as defined in the Governance Agreement) of
    the acquired business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that Expedia issues or proposes to issue any shares
    of common stock or Class&#160;B common stock (with certain
    limited exceptions) including shares issued upon exercise,
    conversion or exchange of options, warrants and convertible
    securities, Liberty Media will have preemptive rights that
    entitle it to purchase a number of common shares so that Liberty
    Media will maintain the identical ownership interest in Expedia
    (subject to certain adjustments) that Liberty Media had
    immediately prior to such issuance or proposed issuance (but not
    in excess of a specified percentage). Any purchase by Liberty
    Media will be allocated between common stock and Class&#160;B
    common stock in the same proportion as the issuance or issuances
    giving rise to the preemptive right, except to the extent that
    Liberty Media opts to acquire shares of common stock in lieu of
    shares of Class&#160;B common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Liberty Media and Mr.&#160;Diller are entitled to customary,
    transferable registration rights with respect to common stock
    owned by them. Liberty Media is entitled to four demand
    registration rights and Mr.&#160;Diller is entitled to three
    demand registration rights. Expedia will pay the costs
    associated with such registrations (other than underwriting
    discounts, fees and commissions). Expedia will not be required
    to register shares of its common stock if a stockholder could
    sell the shares in the quantities proposed to be sold at such
    time in one transaction pursuant to Rule&#160;144 promulgated
    under the Securities Act or under another comparable exemption
    from registration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, the Governance Agreement will terminate:
</DIV>

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    30
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to Liberty Media, at such time that Liberty Media
    beneficially owns equity securities representing less than 5% of
    the total equity securities of Expedia;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to Mr.&#160;Diller, at the later of (1)&#160;the
    date Mr.&#160;Diller ceases to be the Chairman of Expedia or
    becomes disabled and (2)&#160;the date Mr.&#160;Diller no longer
    holds a proxy to vote the shares of Liberty Media (as described
    above).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Indenture Governing Expedia, Inc.&#146;s
    7.456%&#160;Senior Notes due 2018.</I></B>&#160;&#160;In August
    2006, Expedia privately placed $500&#160;million of senior
    unsecured notes due 2018 pursuant to an indenture entered into
    among The Bank of New York, as trustee, Expedia and its
    subsidiary guarantors from time to time party thereto, and in
    March 2007, completed an offer to exchange these notes for
    registered notes having substantially the same financial terms
    and covenants as the original notes (the unregistered notes and
    registered notes, collectively, the &#147;notes&#148;). The
    notes bear a fixed rate interest of 7.456% with interest payable
    semi-annually in February and August of each year, beginning in
    February 2007. The notes are repayable in whole or in part on
    August&#160;15, 2013, at the option of the holder of such notes,
    at 100% of the principal amount plus accrued interest. Expedia
    may redeem the notes in accordance with the terms of the
    indenture, in whole or in part at any time at its option. The
    notes are senior unsecured obligations guaranteed by certain
    domestic Expedia subsidiaries and rank equally in right of
    payment with all of our existing and future unsecured and
    unsubordinated obligations. The notes include covenants that,
    among other things, limit Expedia&#146;s ability to
    (i)&#160;incur liens, (ii)&#160;enter into sale and leaseback
    transactions and (iii)&#160;merge, consolidate or sell
    substantially all of its assets. In the event that Expedia
    incurs indebtedness secured by liens on its properties or
    assets, the indenture requires Expedia, subject to certain
    exceptions, to equally and ratably secure the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Board Compensation Arrangements Involving Expedia
    Securities.</I></B>&#160;&#160;Each director of Expedia who is
    not an employee of Expedia or any of its businesses or
    affiliates or a Liberty Media nominee receives an annual
    retainer of $45,000. In addition, each qualifying director
    receives a grant of restricted stock units with a value of
    $250,000 (based on the closing price of Expedia&#146;s common
    stock on Nasdaq on the day prior to the grant), upon such
    director&#146;s initial election to office and annually
    thereafter on the date of Expedia&#146;s annual meeting of
    stockholders at which the director is re-elected. These
    restricted stock units vest in three equal annual installments
    commencing on the first anniversary of the grant date. In
    addition, each member of the audit committee receives an annual
    retainer of $20,000 and each member of the compensation
    committee receives an annual retainer of $15,000. The chairman
    for each of the audit and compensation committees receives an
    additional annual retainer of $10,000. Expedia also reimburses
    directors for all reasonable expenses incurred by directors as a
    result of attendance at meetings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Expedia&#146;s Non-Employee Director Deferred Compensation
    Plan, Non-Employee Directors may defer all or a portion of their
    annual retainer and all of their meeting attendance fees.
    Eligible directors who defer their directors&#146; fees can
    elect to have such deferred fees (i)&#160;applied to the
    purchase of share units, representing the number of shares of
    Expedia common stock that could have been purchased on the
    relevant date, or (ii)&#160;credited to a cash fund. If any
    dividends are paid on Expedia common stock, dividend equivalents
    will be credited on the share units. The cash fund will be
    credited with deemed interest at an annual rate equal to the
    weighted-average prime or base lending rate of The Chase
    Manhattan Bank (or successor thereto). Upon ceasing to be a
    member of the Expedia board, a director will receive
    (1)&#160;with respect to share units, such number of shares of
    Expedia common stock as the share units represent and
    (2)&#160;with respect to the cash fund, a cash payment. Payments
    upon ceasing to be a member of the Expedia board will be made in
    either one lump sum or up to five installments, as elected by
    the eligible director at the time of the deferral election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Officer and Employee Compensation Arrangements Involving
    Expedia Securities</I></B><I>.&#160;&#160;401(k)
    Plan.&#160;&#160;</I>Expedia maintains the Expedia Retirement
    Savings Plan, for which Fidelity Management Trust&#160;Company
    serves as trustee under a Trust&#160;Agreement, entered into as
    of August&#160;15, 2005, between a wholly-owned subsidiary of
    Expedia that serves as plan administrator and the trustee.
    Participating employees may contribute up to 16% of their
    eligible compensation, but not more than statutory limits.
    Expedia makes a matching contribution each pay period equal to
    50% of a participant&#146;s contributions up to a 6%
    contribution rate, and we may make additional annual profit
    sharing contributions. Matching contributions are invested
    proportionate to each participant&#146;s voluntary contributions
    in the investment options provided under the plan. Investment
    options in the plan include Expedia common stock, but neither
    the participant nor our matching contributions are required to
    be invested in Expedia common stock.
</DIV>

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    <BR>
    31
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>2005 Stock and Annual Incentive
    Plan.</I>&#160;&#160;Expedia&#146;s 2005 Stock and Annual
    Incentive Plan (the &#147;Expedia 2005 Plan&#148;) provides for
    grants of restricted stock, restricted stock awards
    (&#147;RSA&#148;), restricted stock units (&#147;RSUs&#148;),
    stock options and other stock-based awards to directors,
    officers, employees and consultants pursuant to award agreements
    to be entered into from time to time with beneficiaries of the
    awards. Expedia issues new shares to satisfy the exercise or
    release of stock-based awards. RSUs, which are awards in the
    form of phantom shares or units that are denominated in a
    hypothetical equivalent number of shares of Expedia common
    stock, are Expedia&#146;s primary form of stock-based award. As
    of June&#160;15, 2007, Expedia had approximately
    4.5&#160;million shares of common stock reserved for new
    stock-based awards under the Expedia 2005 Plan. As of
    June&#160;15, 2007, Expedia had approximately 8.6&#160;million
    RSUs outstanding, 4,400&#160;RSAs outstanding and stock options
    with respect to 21.5&#160;million shares of Expedia common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided by the Compensation Committee of the
    Board of Directors in an award agreement (and with respect to
    such awards granted by IAC prior to the spin-off and converted
    into Expedia awards as part of the spin-off, only if provided in
    an applicable award agreement or in the IAC Long Term Incentive
    Plan under which such converted award was originally granted),
    in the event of a &#147;change in control&#148; of Expedia, in
    the case of officers of Expedia (and not the company&#146;s
    subsidiaries) who are Senior Vice Presidents and above as of the
    time of the change in control and, in the case of other
    employees of Expedia if provided by the Compensation Committee
    in an award agreement (i)&#160;any stock appreciation rights and
    stock options outstanding as of the date of the change in
    control which are not then exercisable and vested will become
    fully exercisable and vested, (ii)&#160;the restrictions and
    deferral limitations applicable to RSAs will lapse and the
    restricted stock underlying the awards will become free of all
    restrictions and fully vested, (iii)&#160;all RSUs will be
    considered to be earned and payable in full and any deferral or
    other restrictions will lapse and such RSUs will be settled in
    cash or shares of Expedia common stock as promptly as
    practicable and (iv)&#160;bonus awards may be paid out, in whole
    or in part, in the discretion of the Compensation Committee,
    notwithstanding whether performance goals have been achieved. In
    addition, in the event that, during the two-year period
    following a change in control, a plan participant&#146;s
    employment is terminated other than for cause or disability or a
    plan participant resigns for good reason, (i)&#160;any stock
    appreciation rights and stock options outstanding as of the date
    of the change in control will become fully exercisable and
    vested and will remain exercisable for the greater of
    (a)&#160;the period that they would remain exercisable absent
    the change in control provision and (b)&#160;the lesser of the
    expiration of the term of such stock appreciation right or stock
    option or one year following such termination of employment,
    (ii)&#160;the restrictions and deferral limitations applicable
    to RSAs will lapse and the restricted stock underlying the
    awards will become free of all restrictions and fully vested,
    and (iii)&#160;all RSUs will be considered to be earned and
    payable in full and any deferral or other restrictions will
    lapse and such RSUs will be settled in cash or shares of Expedia
    common stock as promptly as practicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Specific Agreements with Certain Executive
    Officers.</I>&#160;&#160;In addition to outstanding awards to
    Executive Officers of Expedia described under &#147;&#151;
    <I>2005 Stock and Annual Incentive Plan</I>,&#148; Expedia is
    party to the following agreements with respect to securities of
    Expedia:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Barry Diller.</I>&#160;&#160;On June&#160;7, 2005, the IAC
    Compensation Committee, pursuant to the IAC/InterActiveCorp 2005
    Stock and Annual Incentive Plan (the &#147;IAC 2005 Plan&#148;)
    granted to Mr.&#160;Diller options to purchase
    4,800,000&#160;shares of IAC common stock at an exercise price
    of $32.03, representing 130% of the closing price of IAC common
    stock on June&#160;7, 2005, and options to purchase
    2,800,000&#160;shares of IAC common stock at an exercise price
    of $43.12, representing 175% of the closing price of IAC common
    stock on June&#160;7, 2005. Upon completion of the spin-off,
    among other things, Mr.&#160;Diller&#146;s awards were adjusted
    to grant an option to purchase 2,400,000&#160;shares of Expedia
    common stock at $28.49 per share and an option to purchase
    1,400,000&#160;shares at $38.35 per share. The stock option
    agreement provides that following completion of the spin-off,
    the satisfaction of conditions to vesting of
    Mr.&#160;Diller&#146;s options to purchase shares of Expedia
    common stock is determined based on Mr.&#160;Diller&#146;s
    employment with Expedia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The options have a ten-year term and vest on the fifth
    anniversary of the grant date, subject to continued employment.
    Upon a termination of Mr.&#160;Diller&#146;s employment for
    death, disability, by Expedia without cause, or by
    Mr.&#160;Diller for good reason, the options will vest pro rata
    at 20% per year of completed service from the date of grant to
    the date of termination. Upon a change in control, 20% of the
    options will vest, with an additional 20% vesting for each
    completed year of service following the grant date.
</DIV>

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    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the agreement, a &#147;change in control&#148;
    is defined by reference to the IAC 2005 Plan, as follows: a
    &#147;change of control&#148; occurs if: (a)&#160;there is a
    change in the majority of our Board not endorsed by the
    requisite number of incumbent board members; (b)&#160;another
    party becomes the beneficial owner of at least 50% of
    Expedia&#146;s outstanding voting stock, with certain
    exceptions; (c)&#160;Expedia consummates a merger,
    reorganization, or consolidation with another party, or the sale
    or other disposition of all or substantially all of our assets
    or the purchase of assets or stock of another entity
    (&#147;Business Combination&#148;) unless the beneficial
    stockholders of Expedia immediately prior to the Business
    Combination retain more than 50% of the outstanding voting stock
    of the entity resulting from the Business Combination in
    substantially the same proportions immediately prior to such
    Business Combination; or (d)&#160;Expedia consummates a complete
    liquidation or dissolution. However, the agreement provides that
    notwithstanding the provisions of the plan, no change in control
    will occur so long as Mr.&#160;Diller has sufficient voting
    power with respect to Expedia such that he effectively controls
    the election of a majority of members of the Board of Expedia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Good reason&#148; is defined in the agreement to mean any
    of the following actions without Mr.&#160;Diller&#146;s consent:
    (i)&#160;a reduction in his rate of annual base salary,
    (ii)&#160;a relocation of his principal place of business more
    than 35&#160;miles from New York City, or (iii)&#160;a material
    and demonstrable adverse change in the nature and scope of his
    duties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Cause&#148; is defined by reference to the IAC 2005 Plan,
    as follows: (i)&#160;the willful or gross neglect by a
    participant of his employment duties, (ii)&#160;the plea of
    guilty or nolo contendere to, or conviction for, the commission
    of a felony offense by a participant, (iii)&#160;a material
    breach of the participant&#146;s fiduciary duty owed to Expedia,
    or (iv)&#160;a material breach by a participant of any
    nondisclosure, non-solicitation or non-competition obligation
    owed to Expedia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Equity and Bonus Compensation Agreement dated
    August&#160;24, 1995 between IAC and Mr.&#160;Diller, IAC agreed
    that to the extent any payment or distribution by IAC, in
    connection with a change in control of IAC, to or for the
    benefit of Mr.&#160;Diller (whether under the terms of the
    related agreement or otherwise) would be subject to the excise
    tax imposed by &#167;4999 of the Internal Revenue Code, then
    Mr.&#160;Diller would be entitled to a
    <FONT style="white-space: nowrap">gross-up</FONT>
    payment covering the excise taxes (the
    <FONT style="white-space: nowrap">&#147;gross-up&#148;).</FONT>
    Under the terms of the spin-off, the
    <FONT style="white-space: nowrap">gross-up</FONT>
    obligation became binding upon Expedia with respect to any
    payment or distribution by Expedia, in connection with a change
    in control of Expedia, to or for the benefit of Mr.&#160;Diller.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dara Khosrowshahi.</I>&#160;&#160;Prior to the spin-off, IAC
    and Dara Khosrowshahi, Expedia&#146;s Chief Executive Officer,
    agreed to amend Mr. Khosrowshahi&#146;s outstanding equity
    awards to provide that in the event of his termination of
    employment without cause (including resignation by
    Mr.&#160;Khosrowshahi for &#147;good reason&#148;), all RSUs
    held by Mr.&#160;Khosrowshahi on the date of the spin-off would
    vest and all options that are vested on the date of termination
    would remain exercisable for a period of 24&#160;months from the
    date of termination or until the stated expiration date of the
    option, whichever is shorter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;7, 2006, the Compensation Committee and the
    Section&#160;16 Committee of the Board of Directors (together,
    the &#147;committees&#148;) approved a grant to
    Mr.&#160;Khosrowshahi of 800,000 RSUs that vest as follows: upon
    Expedia&#146;s achievement of (i)&#160;operating income before
    amortization (&#147;OIBA&#148;) of $1.0&#160;billion for a full
    fiscal year (the &#147;OIBA Target&#148;) and (ii)&#160;either
    achievement of a target increase in the price of Expedia&#146;s
    common stock or the achievement of certain EBITA targets
    approved by the committees (the &#147;RSU Performance
    Goals&#148;), 75% of the restricted stock unit grant will vest
    (the &#147;Initial Vesting&#148;). If Mr.&#160;Khosrowshahi has
    not voluntarily terminated his employment with Expedia or Mr.
    Khosrowshahi&#146;s employment has not been terminated for cause
    on the first anniversary of the Initial Vesting, the remaining
    portion of the restricted stock units will vest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Expedia terminates Mr.&#160;Khosrowshahi without cause in any
    year in which Expedia achieves an OIBA target of
    $900&#160;million (the &#147;Modified OIBA Target&#148;) and one
    of the RSU Performance Goals has been met, then 75% of the
    restricted stock units will vest upon such termination of
    employment and the remaining restricted stock units will be
    forfeited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If there is a change in control of Expedia, then 50% of the
    outstanding restricted stock units will vest immediately,
    without regard to the OIBA targets or RSU Performance Goals. If
    within one year of the change in control,
    Mr.&#160;Khosrowshahi&#146;s employment is terminated without
    cause or Mr.&#160;Khosrowshahi incurs a material and
    demonstrable change in his duties, then the remaining restricted
    stock units will vest, without regard to the performance targets
    or Performance Goals.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of calculating the OIBA Target and the Modified
    OIBA Target, the operating results of all entities acquired by
    Expedia will be included, starting with the first full fiscal
    year after any such acquisitions. In the case of each
    acquisition, the OIBA Target or Modified OIBA Target will be
    increased by the amount of OIBA that Expedia expects to achieve
    in the first full fiscal year following such acquisition, as
    projected by Expedia at the time of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of the restricted stock unit agreement, a
    &#147;change in control&#148; is defined by reference to the
    Expedia 2005 Plan, except that the agreement provides that a
    change in control will include termination of the irrevocable
    proxy held by Mr.&#160;Diller to vote shares of Expedia common
    stock held by Liberty Media or its affiliates, or the
    acquisition by Liberty Media or its affiliates of beneficial
    ownership of equity securities of Expedia, whereby Liberty Media
    acquires or assumes more than 35% of the voting power of the
    then outstanding equity securities of Expedia entitled to vote
    generally on the election of Expedia&#146;s directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the foregoing arrangements,
    Mr.&#160;Khosrowshahi has agreed not to compete with
    Expedia&#146;s businesses during the term of his employment with
    Expedia and for a period of two years from his date of departure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Michael B. Adler.</I>&#160;&#160;On October&#160;31, 2006,
    Expedia entered into an employment agreement and a Restricted
    Stock Unit Agreement (the &#147;Adler RSU Agreement&#148;) with
    Michael B. Adler, Expedia&#146;s Executive Vice President and
    Chief Financial Officer. Mr.&#160;Adler was granted
    84,832&#160;restricted stock units (the &#147;First RSU
    Award&#148;) and 53,020&#160;restricted stock units (the
    &#147;Second RSU Award,&#148; and together, the
    &#147;Awards&#148;) pursuant to the Expedia 2005 Plan with 20%
    of the Awards vesting on each anniversary of the Award Date over
    a five-year term. Upon a Company termination of employment
    without cause or an employee termination of employment for good
    reason, to the extent not already vested (i)&#160;50% of the
    First RSU Award will vest, and (ii)&#160;an additional 20% of
    the Second Award will vest. Both awards were contingent upon the
    satisfaction of certain performance goals, which have
    subsequently been met. Both awards vest upon a change in control
    of Expedia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of the Adler RSU Agreement, a &#147;change in
    control&#148; is defined by reference to the Expedia 2005 Plan.
    In addition, the agreement provides that a change in control
    will include termination of the irrevocable proxy held by Barry
    Diller to vote shares of Expedia common stock held by Liberty
    Media or its affiliates, or the acquisition by Liberty Media or
    its affiliates of beneficial ownership of equity securities of
    Expedia, whereby Liberty Media acquires or assumes more than 50%
    of the voting power of the then outstanding equity securities of
    Expedia entitled to vote generally on the election of
    Expedia&#146;s directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Good reason&#148; is defined under the Adler Employment
    Agreement to mean the occurrence of any of the following without
    Mr.&#160;Adler&#146;s consent: (i)&#160;Expedia&#146;s material
    breach of any material provision of the employment agreement,
    (ii)&#160;the material reduction in his title, duties, reporting
    responsibilities or level of responsibilities, (iii)&#160;the
    reduction in his base salary or percentage of discretionary
    annual target bonus, or (iv)&#160;the relocation of his
    principal place of employment more than 50&#160;miles outside of
    the Seattle metropolitan area.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Cause&#148; is defined under the Adler Employment
    Agreement to mean his (i)&#160;plea of guilty or nolo contendere
    to, conviction for, or the commission of, a felony offense,
    (ii)&#160;material breach of a fiduciary duty owed to Expedia,
    (iii)&#160;material breach of any of the covenants made pursuant
    to the employment agreement, (iv)&#160;willful or gross neglect
    of the material duties required by the employment agreement, or
    (v)&#160;knowing and material violation of any Expedia policy
    pertaining to ethics, wrongdoing or conflicts of interest,
    subject to certain qualifications.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Burke F. Norton.</I>&#160;&#160;On October&#160;25, 2006,
    Expedia entered into an employment agreement and two Restricted
    Stock Unit Agreements with Burke F. Norton, Expedia&#146;s
    Executive Vice President, General Counsel and Secretary.
    Mr.&#160;Norton was granted 62,235 RSUs (&#147;tranche vesting
    RSUs&#148;) and 31,117 RSUs (&#147;cliff vesting RSUs&#148;)
    pursuant to the Expedia 2005 Stock and Annual Incentive Plan.
    The tranche vesting RSUs vest in equal increments over four
    years. The cliff vesting RSUs vest in full after five years.
    Both awards were contingent upon the satisfaction of certain
    performance goals, which have subsequently been met.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a termination of employment by Expedia without cause or an
    employee termination of employment for good reason, (1)&#160;the
    tranche vesting RSUs that would have vested during the twelve
    months following termination and (2)&#160;a pro rata portion of
    the cliff vesting RSUs will immediately vest.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the RSU agreements, both awards vest
    upon a change in control of Expedia, the definition of which is
    the same as that in the Adler RSU Agreement described above,
    provided that in specified change in control transactions the
    awards will vest only following a subsequent termination of
    employment by Expedia without cause or by Mr.&#160;Norton for
    good reason.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The definitions of &#147;cause&#148; and &#147;good reason&#148;
    under Mr.&#160;Norton&#146;s agreements are the same as the
    definitions of those terms under Mr.&#160;Adler&#146;s
    Employment Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise described herein, neither Expedia nor, to
    the best of Expedia&#146;s knowledge, any of its affiliates,
    directors or executive officers is a party to any agreement,
    arrangement or understanding with any other person relating,
    directly or indirectly, to the tender offer or with respect to
    any securities of Expedia, including, but not limited to, any
    agreement, arrangement or understanding concerning the transfer
    or the voting of the securities of Expedia, joint ventures, loan
    or option arrangements, puts or calls, guarantees of loans,
    guarantees against loss, or the giving or withholding of
    proxies, consents or authorizations.
</DIV>
<A name='117'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Effects
    of the Tender Offer on the Market for Shares; Registration under
    the Exchange Act.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase by Expedia of shares under the tender offer will
    reduce the number of shares that might otherwise be traded
    publicly and may reduce the number of Expedia stockholders.
    These reductions may reduce the volume of trading in our shares
    and may result in lower stock prices and reduced liquidity in
    the trading of our shares following completion of the tender
    offer. As of June&#160;15, 2007, we had issued and outstanding
    approximately 278,170,459&#160;shares of common stock. The
    116,666,665&#160;shares that we are offering to purchase
    pursuant to the tender offer represent approximately 42% of the
    shares of common stock outstanding as of that date. Stockholders
    may be able to sell non-tendered shares in the future on Nasdaq
    or otherwise, at a net price higher or lower than the purchase
    price in the tender offer. We can give no assurance, however, as
    to the price at which a stockholder may be able to sell such
    shares in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia anticipates that there will be a sufficient number of
    shares outstanding and publicly traded following completion of
    the tender offer to ensure a continued trading market for the
    shares. Based upon published guidelines of Nasdaq, Expedia does
    not believe that its purchase of shares under the tender offer
    will cause the remaining outstanding shares of Expedia common
    stock to be delisted from trading on Nasdaq.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares are currently &#147;margin securities&#148; under the
    rules of the Board of Governors of the Federal Reserve System.
    This classification has the effect, among other things, of
    allowing brokers to extend credit to their customers using the
    shares as collateral. Expedia believes that, following the
    purchase of shares under the tender offer, the shares remaining
    outstanding will continue to be margin securities for purposes
    of the Federal Reserve Board&#146;s margin rules and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares are registered under the Exchange Act, which
    requires, among other things, that Expedia furnish certain
    information to its stockholders and the Securities and Exchange
    Commission and comply with the Securities and Exchange
    Commission&#146;s proxy rules in connection with meetings of the
    Expedia stockholders. Expedia believes that its purchase of
    shares under the tender offer will not result in the shares
    becoming eligible for deregistration under the Exchange Act.
</DIV>
<A name='118'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Matters; Regulatory Approvals.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described above, Expedia is not aware of any license
    or regulatory permit that appears material to its business that
    might be adversely affected by its acquisition of shares as
    contemplated by the tender offer or of any approval or other
    action by any government or governmental, administrative or
    regulatory authority or agency, domestic, foreign or
    supranational, that would be required for the acquisition of
    shares by Expedia as contemplated by the tender offer. Should
    any approval or other action be required, Expedia presently
    contemplates that it will seek that approval or other action.
    Expedia is unable to predict whether it will be required to
    delay the acceptance for payment of or payment for shares
    tendered under the tender offer pending the outcome of any such
    matter. There can be no assurance that any approval or other
    action, if needed, would be obtained or would be obtained
    without substantial cost or conditions or that the failure to
    obtain the approval or other action might not result in adverse
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consequences to its business and financial condition. The
    obligations of Expedia under the tender offer to accept for
    payment and pay for shares is subject to conditions. <I>See
    Section&#160;7.</I>
</DIV>
<A name='119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">15.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Material
    U.S. Federal Income Tax Consequences.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary describes the material United States
    federal income tax consequences relevant to the tender offer.
    This discussion is based upon the Internal Revenue Code of 1986,
    as amended (the &#147;Code&#148;), existing and proposed
    Treasury Regulations, administrative pronouncements and judicial
    decisions, all as in effect as of the date hereof and all of
    which are subject to change, possibly with retroactive effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion addresses only stockholders who hold their
    shares as capital assets for United States federal income tax
    purposes. This discussion does not purport to consider all
    aspects of United States federal income taxation that might be
    relevant to stockholders in light of their particular
    circumstances and does not apply to holders subject to special
    treatment under the United States federal income tax laws (such
    as, for example, financial institutions, dealers in securities
    or commodities, traders in securities who elect to apply a
    mark-to-market method of accounting, insurance companies,
    tax-exempt organizations, former citizens or residents of the
    United States, persons who hold shares as part of a hedge,
    straddle, constructive sale or conversion transaction, and
    persons who acquired their shares through the exercise of
    employee stock options or otherwise as compensation). This
    discussion does not address any state, local or foreign tax
    consequences of participating in the tender offer, nor does it
    address any United States federal tax considerations other than
    those pertaining to the United States federal income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not sought, nor do we expect to seek, any ruling from
    the Internal Revenue Service with respect to the matters
    discussed below. There can be no assurances that the Internal
    Revenue Service will not take a different position concerning
    the tax consequences of the sale of shares to Expedia pursuant
    to the tender offer or that any such position would be sustained.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used herein, a &#147;U.S.&#160;Holder&#148; means a
    beneficial owner of shares that is, for United States federal
    income tax purposes, (i)&#160;a citizen or resident of the
    United States, (ii)&#160;a corporation (or entity treated as a
    corporation for United States federal income tax purposes)
    created or organized under the laws of the United States, any
    State thereof or the District of Columbia, (iii)&#160;a trust
    (a)&#160;whose administration is subject to the primary
    supervision of a U.S.&#160;court and which has one or more
    U.S.&#160;persons who have the authority to make all substantial
    decisions, or (b)&#160;that has a valid election in effect to be
    treated as a U.S.&#160;person, or (iv)&#160;an estate, the
    income of which is subject to United States federal income
    taxation regardless of its source. As used herein, a
    <FONT style="white-space: nowrap">&#147;Non-U.S.&#160;Holder&#148;</FONT>
    means a beneficial owner of shares that is neither a
    U.S.&#160;Holder nor an entity or arrangement treated as a
    partnership for United States federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The United States federal income tax treatment of a person that
    is a partner of an entity or arrangement treated as a
    partnership for United States federal income tax purposes that
    holds our shares generally will depend on the status of the
    partner and the activities of the partnership. Partners in
    partnerships holding our shares should consult their tax
    advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    should consult their tax advisors regarding the United States
    federal income tax consequences and any applicable foreign tax
    consequences of the tender offer and should also see
    Section&#160;3 for a discussion of the applicable United States
    withholding rules and the potential for obtaining a refund of
    all or a portion of any tax withheld.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>All stockholders should consult their tax advisors to
    determine the particular tax consequences to them of
    participating in the tender offer.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sale of shares for cash pursuant to the tender offer will be a
    taxable transaction for United States federal income tax
    purposes. A U.S.&#160;Holder who participates in the tender
    offer will, depending on such U.S.&#160;Holder&#146;s particular
    circumstances, be treated either as recognizing gain or loss
    from the disposition of the shares or as receiving a
    distribution from us with respect to our stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sale or Exchange Treatment.</I>&#160;&#160;Under
    Section&#160;302 of the Code, a U.S.&#160;Holder will recognize
    gain or loss on sale of shares for cash pursuant to the offer if
    the sale:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    results in a &#147;complete termination&#148; of such
    U.S.&#160;Holder&#146;s equity interest in us,
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    results in a &#147;substantially disproportionate&#148;
    redemption with respect to such U.S.&#160;Holder,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is &#147;not essentially equivalent to a dividend&#148; with
    respect to the U.S.&#160;Holder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sale of shares pursuant to the tender offer will result in a
    &#147;complete termination&#148; if either (i)&#160;the
    U.S.&#160;Holder owns none of our shares either actually or
    constructively after the shares are sold pursuant to the tender
    offer, or (ii)&#160;the U.S.&#160;Holder actually owns none of
    our shares immediately after the sale of shares pursuant to the
    tender offer and, with respect to shares constructively owned,
    is eligible to waive, and effectively waives, constructive
    ownership of all such shares. U.S.&#160;Holders wishing to
    satisfy the &#147;complete termination&#148; test through waiver
    of attribution should consult their tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sale of shares pursuant to the tender offer will result in a
    &#147;substantially disproportionate&#148; redemption with
    respect to a U.S.&#160;Holder if the percentage of the then
    outstanding shares actually and constructively owned by such
    U.S.&#160;Holder immediately after the sale is less than 80% of
    the percentage of the shares actually and constructively owned
    by such U.S.&#160;Holder immediately before the sale. If a sale
    of shares pursuant to the tender offer fails to satisfy the
    &#147;substantially disproportionate&#148; test, the
    U.S.&#160;Holder may nonetheless satisfy the &#147;not
    essentially equivalent to a dividend&#148; test.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sale of shares pursuant to the tender offer will satisfy the
    &#147;not essentially equivalent to a dividend&#148; test if it
    results in a &#147;meaningful reduction&#148; of the
    U.S.&#160;Holder&#146;s proportionate interest in us. A sale of
    shares for cash that results in a relatively minor reduction of
    the proportionate equity interest of a U.S.&#160;Holder whose
    relative equity interest in us is minimal and who does not
    exercise any control over or participate in the management of
    our corporate affairs should constitute a &#147;meaningful
    reduction.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In applying each of the Section&#160;302 tests described above,
    a U.S.&#160;Holder must take account of shares that such
    U.S.&#160;Holder constructively owns under attribution rules,
    pursuant to which the U.S.&#160;Holder will be treated as owning
    shares owned by certain related individuals and entities, and
    shares that the U.S.&#160;Holder has the right to acquire by
    exercise of an option or warrant or by conversion or exchange of
    a security. U.S.&#160;Holders should consult their tax advisors
    regarding the application of the rules of Section&#160;302 in
    their particular circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Contemporaneous dispositions or acquisitions of shares by a
    U.S.&#160;Holder or a related person may be deemed to be part of
    a single integrated transaction and, if so, may be taken into
    account in determining whether any of the Section&#160;302
    tests, described above, are satisfied. U.S.&#160;Holders should
    be aware that proration may affect whether the sale of shares
    pursuant to the tender offer will meet any of the
    Section&#160;302 tests. U.S.&#160;Holders should consult their
    tax advisors regarding whether to make a conditional tender of a
    minimum number of shares, and the appropriate calculation
    thereof. See Section&#160;6 for information regarding the option
    to make a conditional tender of a minimum number of shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a U.S.&#160;Holder satisfies any of the Section&#160;302
    tests described above, the U.S.&#160;Holder will recognize gain
    or loss in an amount equal to the difference, if any, between
    the amount of cash received and such U.S.&#160;Holder&#146;s tax
    basis in the shares exchanged. Any such gain or loss will be
    capital gain or loss and will be long-term capital gain or loss
    if the holding period of the shares exceeds one year as of the
    date of the exchange. Gain or loss must be determined separately
    for each block of shares. Specified limitations apply to the
    deductibility of capital losses by U.S.&#160;Holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Distribution Treatment.</I>&#160;&#160;If a U.S.&#160;Holder
    does not satisfy any of the Section&#160;302 tests described
    above, the entire amount of cash received by such
    U.S.&#160;Holder pursuant to the tender offer will be treated as
    a dividend to the extent of the Holder&#146;s allocable portion
    of our current or accumulated earnings and profits, as
    determined under United States federal income tax principles.
    The amount of any distribution in excess of our current and
    accumulated earnings and profits would be treated as a return of
    capital to the extent, generally, of the U.S.&#160;Holder&#146;s
    basis in the shares exchanged, and any remainder will be treated
    as capital gain. Any such gain will be capital gain and will be
    long-term capital gain if the holding period of the shares
    exceeds one year as of the date of the exchange. Provided
    certain holding period and other requirements are satisfied,
    non-corporate U.S.&#160;Holders generally will be subject to
    U.S.&#160;federal income tax at a maximum rate of 15% on amounts
    treated as a dividend. Such a dividend will be taxed in its
    entirety, without reduction for the U.S.&#160;Holder&#146;s tax
    basis of the shares exchanged. To the extent that a purchase of
    a U.S.&#160;Holder&#146;s shares by us in the tender offer is
    treated as the receipt by the U.S.&#160;Holder of a dividend,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the U.S.&#160;Holder&#146;s remaining adjusted basis (reduced by
    the amount, if any, treated as a return of capital) in the
    purchased shares will be added to any shares retained by the
    U.S.&#160;Holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that cash received in exchange for shares is
    treated as a dividend to a corporate U.S.&#160;Holder,
    (i)&#160;it may be eligible for a dividends-received deduction
    and (ii)&#160;it may be subject to the &#147;extraordinary
    dividend&#148; provisions of the Code. Corporate
    U.S.&#160;Holders should consult their tax advisors concerning
    the availability of the dividends-received deduction and the
    application of the &#147;extraordinary dividend&#148; provisions
    of the Code in their particular circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Section&#160;3 with respect to the application of United
    States federal income tax withholding and
    <FONT style="white-space: nowrap">back-up</FONT>
    withholding tax to payments made pursuant to the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The discussion set forth above is for general information
    only. Stockholders should consult their tax advisor to determine
    the particular tax consequences to them of the tender offer,
    including the applicability and effect of any state, local and
    foreign tax laws.</B>
</DIV>
<A name='120'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">16.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Extension
    of the Tender Offer; Termination; Amendment.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia expressly reserves the right, in its sole discretion, at
    any time and from time to time, and regardless of whether or not
    any of the events set forth in Section&#160;7 shall have
    occurred or shall be deemed by Expedia to have occurred, to
    extend the period of time during which the tender offer is open
    and thereby delay acceptance for payment of, and payment for,
    any shares by giving oral or written notice of the extension to
    the depositary and making a public announcement of the
    extension. Expedia also expressly reserves the right, in its
    sole discretion, to terminate the tender offer and not accept
    for payment or pay for any shares not theretofore accepted for
    payment or paid for or, subject to applicable law, to postpone
    payment for shares upon the occurrence of any of the conditions
    specified in Section&#160;7 by giving oral or written notice of
    termination or postponement to the depositary and making a
    public announcement of termination or postponement.
    Expedia&#146;s reservation of the right to delay payment for
    shares that it has accepted for payment is limited by
    <FONT style="white-space: nowrap">Rule&#160;13e-4(f)(5)</FONT>
    promulgated under the Exchange Act, which requires that Expedia
    must pay the consideration offered or return the shares tendered
    promptly after termination or withdrawal of a tender offer.
    Subject to compliance with applicable law, Expedia further
    reserves the right, in its sole discretion, and regardless of
    whether any of the events set forth in Section&#160;7 shall have
    occurred or shall be deemed by Expedia to have occurred, to
    amend the tender offer in any respect, including, without
    limitation, by decreasing or increasing the consideration
    offered in the tender offer to holders of shares or by
    decreasing or increasing the number of shares being sought in
    the tender offer. Amendments to the tender offer may be made at
    any time and from time to time effected by public announcement,
    the announcement, in the case of an extension, to be issued no
    later than 9:00&#160;a.m., New York City time, on the next
    business day after the last previously scheduled or announced
    expiration date. Any public announcement made under the tender
    offer will be disseminated promptly to stockholders in a manner
    reasonably designed to inform stockholders of the change.
    Without limiting the manner in which Expedia may choose to make
    a public announcement, except as required by applicable law,
    Expedia shall have no obligation to publish, advertise or
    otherwise communicate any public announcement other than by
    making a release through PR Newswire.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Expedia materially changes the terms of the tender offer or
    the information concerning the tender offer, Expedia will extend
    the tender offer to the extent required by
    <FONT style="white-space: nowrap">Rules&#160;13e-4(d)(2),</FONT>
    <FONT style="white-space: nowrap">13e-4(e)(3)</FONT>
    and
    <FONT style="white-space: nowrap">13e-4(f)(1)</FONT>
    promulgated under the Exchange Act. These rules and certain
    related releases and interpretations of the Securities and
    Exchange Commission provide that the minimum period during which
    a tender offer must remain open following material changes in
    the terms of the tender offer or information concerning the
    tender offer (other than a change in price or a change in
    percentage of securities sought) will depend on the facts and
    circumstances, including the relative materiality of the terms
    or information. If:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Expedia increases or decreases the price to be paid for shares
    or increases or decreases the number of shares being sought in
    the tender offer and, if an increase in the number of shares
    being sought, such increase exceeds 2% of the outstanding
    shares,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the tender offer is scheduled to expire at any time earlier than
    the expiration of a period ending on the tenth business day
    from, and including, the date that the notice of an increase or
    decrease is first published, sent or
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    given to security holders in the manner specified in this
    Section&#160;16, the tender offer will be extended until the
    expiration of such ten business day period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    In the event that the financing condition is satisfied or waived
    less than five business days prior to the scheduled expiration
    date of the tender offer, we will extend the tender offer to
    ensure that at least five business days remain in the tender
    offer following the satisfaction of the financing condition.
</TD>
</TR>

</TABLE>
<A name='121'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">17.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Fees and
    Expenses.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia has retained MacKenzie Partners, Inc. to act as
    information agent and The Bank of New York to act as depositary
    in connection with the tender offer. The information agent may
    contact holders of shares by mail, telephone, telegraph and in
    person, and may request brokers, dealers, commercial banks,
    trust companies and other nominee stockholders to forward
    materials relating to the tender offer to beneficial owners. The
    information agent and the depositary each will receive
    reasonable and customary compensation for their respective
    services, will be reimbursed by Expedia for specified reasonable
    out-of-pocket expenses, and will be indemnified against certain
    liabilities in connection with the tender offer, including
    certain liabilities under the U.S.&#160;federal securities laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the tender offer, Fidelity Management
    Trust&#160;Company, the trustee for the Expedia Retirement
    Savings Plan, may contact participants in the plan by mail,
    telephone, fax and personal interviews. The trustee for the plan
    receives reasonable and customary compensation for its services
    and is reimbursed for certain out-of-pocket expenses pursuant to
    arrangements with Expedia to act as trustee for the plan. Under
    those arrangements, no separate fee is payable to the trustee in
    connection with the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No fees or commissions will be payable by Expedia to brokers,
    dealers, commercial banks or trust companies (other than fees to
    the information agent as described above) for soliciting tenders
    of shares under the tender offer. We urge stockholders holding
    shares through brokers or banks to consult the brokers or banks
    to determine whether transaction costs are applicable if
    stockholders tender shares through such brokers or banks and not
    directly to the depositary. Expedia, however, upon request, will
    reimburse brokers, dealers, commercial banks and trust companies
    for customary mailing and handling expenses incurred by them in
    forwarding the tender offer and related materials to the
    beneficial owners of shares held by them as a nominee or in a
    fiduciary capacity. No broker, dealer, commercial bank or trust
    company has been authorized to act as the agent of Expedia or
    the information agent for purposes of the tender offer. Expedia
    will pay or cause to be paid all stock transfer taxes, if any,
    on its purchase of shares, except as otherwise provided in this
    document and Instruction&#160;9 in the letter of transmittal.
</DIV>
<A name='122'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">18.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Miscellaneous.</FONT></B>
</TD>
</TR>

</TABLE>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia is not aware of any jurisdiction where the making of the
    tender offer is not in compliance with applicable law. If
    Expedia becomes aware of any jurisdiction where the making of
    the tender offer or the acceptance of shares pursuant thereto is
    not in compliance with applicable law, Expedia will make a good
    faith effort to comply with the applicable law. If, after such
    good faith effort, Expedia cannot comply with the applicable
    law, Expedia will not make the tender offer to (nor will tenders
    be accepted from or on behalf of) the holders of shares in that
    jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to
    <FONT style="white-space: nowrap">Rule&#160;13e-4(c)(2)</FONT>
    under the Exchange Act, Expedia has filed with the Commission an
    Issuer Tender Offer Statement on Schedule&#160;TO, which
    contains additional information with respect to the tender
    offer. The Schedule&#160;TO, including the exhibits and any
    amendments and supplements thereto, may be examined, and copies
    may be obtained, at the same places and in the same manner as is
    set forth in Section&#160;11 with respect to information
    concerning Expedia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Expedia has not authorized any person to make any
    recommendation on behalf of Expedia as to whether you should
    tender or refrain from tendering your shares in the tender
    offer. Expedia has not authorized any person to give any
    information or to make any representation in connection with the
    tender offer other than those contained in this offer to
    purchase or in the letter of transmittal. If anyone makes any
    recommendation or representation to you or gives you any
    information, you must not rely upon that recommendation,
    representation or information as having been authorized by
    Expedia.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;29, 2007
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The letter of transmittal and share certificates and any other
    required documents should be sent or delivered by each
    stockholder or that stockholder&#146;s broker, dealer,
    commercial bank, trust company or nominee to the depositary at
    one of its addresses set forth below.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    depositary for the tender offer is:</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE BANK OF NEW YORK</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Telephone Assistance:
    <FONT style="white-space: nowrap">(800)&#160;507-9357</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Mail:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Hand:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Overnight
    Delivery:</FONT></I>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Expedia Inc.&#160;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Tender &#038; Exchange Dept.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Expedia Inc.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">P.O.&#160;Box&#160;859208
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">11W
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">161 Bay State Drive
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Braintree, MA
    <FONT style="white-space: nowrap">02185-9028</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">101 Barclay Street
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Braintree, MA 02184
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Receive &#038; Deliver Window
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Street Level
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">New York, NY 10286
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>By Facsimile:</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>For Eligible Institutions Only</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (781) 930-4939
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Confirm Facsimile Receipt</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>by telephone:</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (781) 930-4900
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please direct any questions or requests for assistance and any
    requests for additional copies of this offer to purchase, the
    letter of transmittal or the notice of guaranteed delivery to
    the information agent at the telephone number and address set
    forth below. Stockholders also may contact their broker, dealer,
    commercial bank, trust company or nominee for assistance
    concerning the tender offer.&#160;Please contact the depositary
    to confirm delivery of shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The information agent for the tender offer is:</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477ormackenzi.jpg" alt="MACKENZIE LOGO" >
</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    105 Madison Avenue<BR>
    New York, New York 10016<BR>
    <FONT style="white-space: nowrap">(212)&#160;929-5500</FONT>
    (call collect)<BR>
    <FONT style="white-space: nowrap">E-mail:</FONT>
    proxy@mackenziepartners.com<BR>
    or<BR>
    <B>Call Toll Free
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT></B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(B)
<SEQUENCE>3
<FILENAME>v31477orexv99wxayx1yxby.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(B)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxby</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(1)(B)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LETTER OF
    TRANSMITTAL<BR>
    <BR>
    <FONT style="font-size: 14pt">To Tender Shares of Common Stock,
    Par&#160;Value $.001 Per Share<BR>
    of<BR>
    Expedia, Inc.<BR>
    Pursuant to the offer to purchase, dated June&#160;29,
    2007</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE TENDER OFFER, PRORATION
    PERIOD AND WITHDRAWAL RIGHTS WILL</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">EXPIRE AT 5:00&#160;P.M., NEW
    YORK CITY TIME, ON WEDNESDAY,</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">AUGUST 8, 2007, UNLESS EXPEDIA
    EXTENDS THE TENDER OFFER.</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The depositary for the tender offer is:</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE BANK OF NEW YORK</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Telephone Assistance:
    <FONT style="white-space: nowrap">1-800-507-9357</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Mail:<BR>
    </FONT></I><FONT style="font-size: 10pt">The Bank of New York<BR>
    Expedia Inc.<BR>
    P.O.&#160;Box&#160;859208<BR>
    Braintree, MA
    <FONT style="white-space: nowrap">02185-9028</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Hand:<BR>
    </FONT></I><FONT style="font-size: 10pt">The Bank of New York<BR>
    Tender &#038; Exchange Dept.<BR>
    11W<BR>
    101 Barclay Street<BR>
    Receive &#038; Deliver Window<BR>
    Street Level<BR>
    New York, NY 10286
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Overnight Delivery:<BR>
    </FONT></I><FONT style="font-size: 10pt">The Bank of New York<BR>
    Expedia Inc.<BR>
    161 Bay State Drive<BR>
    Braintree, MA 02184
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Facsimile:<BR>
    For Eligible Institutions Only<BR>
    </FONT></I><FONT style="font-size: 10pt">(781) 930-4939
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="top">
    <I><FONT style="font-size: 10pt">Confirm Facsimile Receipt by
    telephone:<BR>
    </FONT></I><FONT style="font-size: 10pt">(781) 930-4900
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="10" nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B><FONT style="font-size: 10pt">DESCRIPTION OF SHARES
    TENDERED</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B>Names(s) and Address(es) of Registered Holders(s)<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    <B>Certificate(s) Tendered<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
    <B>(Please fill in, if blank, exactly as name(s) appear(s) on
    certificate(s))</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>(Attach and sign additional list if necessary)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Number of Shares<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Certificate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Represented by<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>Number of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number(s)*</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Certificate(s)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>Share(s) Tendered**</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Total Shares
    Tendered*</FONT></B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="10" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -18pt; margin-left: 18pt">
    <FONT style="font-size: 9pt">***&#160;Indicate in this box the
    order (by certificate number) in which shares are to be
    purchased in event of proration (attach additional signed list
    if necessary): See Instruction&#160;7.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="10" align="left" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 9pt">
1st:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2nd:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3rd:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;4th:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;5th:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;6th:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="10" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 19pt">
    <FONT style="font-size: 9pt">*&#160;Need not complete if shares
    are delivered by book-entry transfer.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="10" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -13pt; margin-left: 18pt">
    <FONT style="font-size: 9pt">**&#160;If you desire to tender
    fewer than all shares evidenced by any certificate(s) listed
    above, please indicate in this column the number of shares you
    wish to tender. Otherwise, all shares evidenced by such
    certificate(s) will be deemed to have been tendered. See
    Instruction&#160;4.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="10" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -18pt; margin-left: 18pt">
    <FONT style="font-size: 9pt">***&#160;If you do not designate an
    order and Expedia purchases less than all shares tendered due to
    proration, the depositary will select the shares that Expedia
    will purchase. See Instruction&#160;7.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Delivery of this letter of transmittal to an address other
    than one of those set forth above will <U>not</U> constitute a
    valid delivery. You must deliver this letter of transmittal to
    the depositary. Deliveries to Expedia, Inc.
    (&#147;Expedia&#148;) or MacKenzie Partners, Inc. (the
    information agent for the tender offer) will not be forwarded to
    the depositary and therefore will not constitute valid delivery
    to the depositary. Delivery of the letter of transmittal and any
    other required documents to the book-entry transfer facility
    will not constitute delivery to the depositary.</B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOU MAY <U>NOT</U> USE THIS LETTER OF TRANSMITTAL TO TENDER
    SHARES HELD IN THE EXPEDIA RETIREMENT SAVINGS PLAN. INSTEAD, YOU
    MUST USE THE SEPARATE TENDER INSTRUCTION&#160;FORMS&#160;SENT TO
    PARTICIPANTS IN THIS PLAN.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should use this letter of transmittal if you are causing
    the shares to be delivered by book-entry transfer to the
    depositary&#146;s account at the Depositary Trust&#160;Company
    (&#147;DTC,&#148; which is hereinafter referred to as the
    &#147;book-entry transfer facility&#148;) pursuant to the
    procedures set forth in Section&#160;3 of the offer to purchase.
    Only financial institutions that are participants in the
    book-entry transfer facility&#146;s system may make book-entry
    delivery of the shares.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">MacKenzie Partners,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    105 Madison Avenue
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, New York 10016
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(212)&#160;929-5500</FONT>
    (call collect)
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    proxy@mackenziepartners.com
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Call Toll Free
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 6pt; border-right: 1px solid #000000; padding-right: 6pt; border-bottom: 1px solid #000000; padding-bottom: 6pt; border-left: 1px solid #000000; padding-left: 6pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">BEFORE COMPLETING THIS LETTER OF
    TRANSMITTAL, YOU SHOULD READ THIS LETTER OF TRANSMITTAL AND THE
    ACCOMPANYING INSTRUCTIONS&#160;CAREFULLY.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should use this letter of transmittal only if (1)&#160;you
    are also enclosing certificates for the shares you desire to
    tender, or (2)&#160;you intend to deliver certificates for such
    shares under a notice of guaranteed delivery previously sent to
    the depositary, or (3)&#160;you are delivering shares through a
    book-entry transfer into the depositary&#146;s account at The
    Depositary Trust&#160;Company (i.e., the book-entry transfer
    facility) in accordance with Section&#160;3 of the offer to
    purchase.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you desire to tender shares in the tender offer, but you
    cannot deliver the certificates for your shares and all other
    required documents to the depositary by the expiration date (as
    set forth in the offer to purchase), or cannot comply with the
    procedures for book-entry transfer on a timely basis, then you
    may tender your shares according to the guaranteed delivery
    procedures set forth in Section&#160;3 of the offer to purchase.
    See Instruction&#160;2. Delivery of the letter of transmittal
    and any other required documents to the book-entry transfer
    facility does not constitute delivery to the depositary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>&#160;
    </FONT></TD>
    <TD align="left">
    <B><FONT style="font-size: 9pt">Check here if you are delivering
    tendered shares pursuant to a notice of guaranteed delivery that
    you previously sent to the depositary and complete the
    following:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="29%"></TD>
    <TD width="69%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT style="font-size: 9pt">Name(s) of Tendering
    Stockholder(s):&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=339 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="40%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT style="font-size: 9pt">Date of Execution of Notice of
    Guaranteed Delivery:&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=283 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="35%"></TD>
    <TD width="63%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT style="font-size: 9pt">Name of Institution that Guaranteed
    Delivery:&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=309 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>&#160;
    </FONT>
</TD>
    <TD align="left">    <B><FONT style="font-size: 9pt">Check here if any certificates
    evidencing the shares you are tendering with this letter of
    transmittal have been lost, stolen, destroyed or mutilated. If
    you check this box, you must complete an affidavit of loss and
    return it with your letter of transmittal. You should call The
    Bank of New York, the transfer agent, at
    <FONT style="white-space: nowrap">1-800-507-9357</FONT>
    to get information about the requirements for replacement. You
    may be required to post a bond to secure against the risk that
    certificates may be subsequently recirculated. Please call The
    Bank of New York immediately to obtain an affidavit of loss, to
    receive further instructions on how to proceed, and to determine
    whether you will need to post a bond, so that the timely
    processing of this letter of transmittal will not be impeded.
    See Instruction&#160;16.</FONT></B>
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>&#160;
    </FONT>
</TD>
    <TD align="left">    <B><FONT style="font-size: 9pt">Check here if you are a
    financial institution that is a participating institution in the
    book-entry transfer facility&#146;s system and you are
    delivering the tendered shares by book-entry transfer to an
    account maintained by the depositary at the book-entry transfer
    facility, and complete the following:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="25%"></TD>
    <TD width="73%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD nowrap>    <FONT style="font-size: 9pt">Name(s) of Tendering
    Institution:&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=355 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="14%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD nowrap>    <FONT style="font-size: 9pt">Account Number:&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=413 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="20%"></TD>
    <TD width="78%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD nowrap>    <FONT style="font-size: 9pt">Transaction Code Number:&#160;
    </FONT>
</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 360%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=115 iwidth=379 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">NOTE: SIGNATURES MUST BE
    PROVIDED BELOW<BR>
    PLEASE READ THE ACCOMPANYING
    INSTRUCTIONS&#160;CAREFULLY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">CHECK EXACTLY ONE
    BOX.&#160;&#160;IF YOU CHECK MORE THAN ONE BOX, OR IF YOU DO NOT
    CHECK ANY BOX, YOU WILL HAVE FAILED TO VALIDLY TENDER ANY
    SHARES.</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES
    TENDERED AT PRICE DETERMINED PURSUANT TO THE TENDER OFFER<BR>
    (SEE INSTRUCTION&#160;5)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The undersigned wants to maximize the chance of having Expedia
    purchase all shares the undersigned is tendering (subject to the
    possibility of proration). <B>Accordingly</B>, by checking this
    <B>ONE </B>box <B>INSTEAD OF ONE OF THE PRICE BOXES BELOW,</B>
    the undersigned hereby tenders shares and is willing to accept
    the purchase price determined by Expedia pursuant to the tender
    offer (the &#147;Purchase Price&#148;). This action could result
    in receiving a price per share as low as $<B>27.50 </B>per share.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#160;&#151; OR</B>&#160;&#151;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SHARES TENDERED AT PRICE DETERMINED BY STOCKHOLDER<BR>
    (SEE INSTRUCTION&#160;5)</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By checking <B>ONE</B> of the boxes below <B>INSTEAD OF THE BOX
    ABOVE,</B> the undersigned hereby tenders shares at the price
    checked. This action could result in none of the shares being
    purchased if the Purchase Price is less than the price checked
    below. <B>A stockholder who desires to tender shares at more
    than one price must complete a separate letter of transmittal
    for each price at which the stockholder tenders shares.</B> You
    cannot tender the same shares at more than one price, unless you
    have previously validly withdrawn those shares tendered at a
    different price in accordance with Section&#160;4 of the offer
    to purchase.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Price (in Dollars) Per Share at Which Shares Are Being
    Tendered</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $27.50
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $28.50
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $29.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $27.75
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $28.75
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $29.75
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $28.00
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $29.00
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $30.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $28.25
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 9pt"><FONT face="Wingdings">&#111;</FONT>
    $29.25
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You WILL NOT have validly tendered your shares<BR>
    unless you check ONE AND ONLY ONE BOX IN THIS FRAME.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>ODD LOTS<BR>
    (See Instruction&#160;6)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To be completed <B>only </B>if shares are being tendered by or
    on behalf of a person owning, beneficially or of record, an
    aggregate of fewer than 100&#160;shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the date hereof, the undersigned either (check ONE box):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    is the beneficial or record owner of an aggregate of fewer than
    100&#160;shares and is tendering all of those shares,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    is a broker, dealer, commercial bank, trust company or other
    nominee that (i)&#160;is tendering, for the beneficial owner(s)
    thereof, shares with respect to which it is the record holder,
    and (ii)&#160;believes, based upon representations made to it by
    such beneficial owner(s), that each such person was the
    beneficial owner of an aggregate of fewer than 100&#160;shares
    and is tendering all of such shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In addition, the undersigned is tendering shares (check ONE
    box):</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the Purchase Price, which will be determined by Expedia in
    accordance with the terms of the tender offer (persons checking
    this box should check the box under the heading &#147;Shares
    Tendered at Price Determined Pursuant to the Tender
    Offer&#148;);&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the price per share indicated under the heading &#147;Shares
    Tendered at Price Determined by Stockholder.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CONDITIONAL TENDER<BR>
    (See Instruction&#160;11)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;A tendering stockholder may
    condition his or her tender of shares upon Expedia purchasing a
    specified minimum number of the shares tendered, as described in
    Section&#160;6 of the offer to purchase. Unless Expedia
    purchases at least the minimum number of shares you indicate
    below pursuant to the terms of the tender offer, Expedia will
    not purchase any of the shares tendered below. It is the
    tendering stockholder&#146;s responsibility to calculate that
    minimum number, and each stockholder should consult his or her
    own tax advisor in doing so. Unless you check the box
    immediately below and specify, in the space provided, a minimum
    number of shares that Expedia must purchase from you if Expedia
    purchases any shares from you, Expedia will deem your tender
    unconditional.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The minimum number of shares that Expedia must purchase from me
    if Expedia purchases any shares from me, is:
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;If, because of proration, Expedia
    will not purchase the minimum number of shares from you that you
    designate, Expedia may accept conditional tenders by random lot,
    if necessary. However, to be eligible for purchase by random
    lot, the tendering stockholder must have tendered all of his or
    her shares. To certify that you are tendering all of the shares
    you own, check the box below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT face="Wingdings">&#111;</FONT>&#160; The tendered shares
    represent all shares held by the undersigned.
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 11 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SPECIAL PAYMENT INSTRUCTIONS<BR>
    (See Instructions&#160;1 and 10)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Complete this box <B>ONLY </B>if the check for the aggregate
    Purchase Price of shares purchased (less the amount of any
    federal income or backup withholding tax required to be
    withheld)
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate for shares not tendered or not purchased are to be
    issued in the name of someone other than the undersigned, or if
    shares tendered hereby and delivered by book-entry transfer
    which are not purchased are to be returned by crediting them to
    an account at the book-entry transfer facility other than the
    account designated above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CHECK ONE OR BOTH BOXES AS APPROPRIATE:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT face="Wingdings">&#111;</FONT>&#160;<B><I>Issue Check
    to:</I></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT face="Wingdings">&#111;</FONT>&#160;<B><I>Issue Share
    Certificate to:</I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Name:</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=453 length=0 -->
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Please Print)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Address:</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=444 length=0 -->
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Include Zip Code)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Taxpayer Identification or
    Social Security Number)<BR>
    (See Substitution
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    Included Herewith)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CHECK and COMPLETE IF APPLICABLE:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    <I>Credit shares delivered by book-entry transfer and not
    purchased to the account set forth below:</I>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Account
    Number:</B>&#160;<U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 11 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 12 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SPECIAL DELIVERY INSTRUCTIONS<BR>
    (See Instructions&#160;1 and 10)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Complete this box <B>ONLY </B>if the check for the aggregate
    Purchase Price of shares purchased (less the amount of any
    federal income or backup withholding tax required to be
    withheld)
    <FONT style="white-space: nowrap">and/or</FONT>
    certificate for shares not tendered or not purchased are to be
    mailed to someone other than the undersigned or to the
    undersigned at an address other than that shown below the
    undersigned&#146;s signature(s).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CHECK ONE OR BOTH BOXES AS APPROPRIATE:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT face="Wingdings">&#111;</FONT><B><I>&#160;Deliver Check
    to:</I></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT face="Wingdings">&#111;</FONT><B><I>&#160;Deliver Share
    Certificate to:</I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Name:</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=453 length=0 -->
</TD>
</TR>

</TABLE>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Please Print)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Address:</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=444 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: right; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Include Zip Code)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Taxpayer Identification or
    Social Security Number)<BR>
    (See Substitution
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    Included Herewith)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 12 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ladies and Gentlemen:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby tenders to Expedia, Inc., a Delaware
    corporation (&#147;Expedia&#148;), the above-described shares of
    Expedia&#146;s common stock, par value $.001 per share (the
    &#147;shares&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender of the shares is being made at the price per share
    indicated in this letter of transmittal, net to the seller in
    cash, without interest, on the terms and subject to the
    conditions set forth in this letter of transmittal and in
    Expedia&#146;s offer to purchase, dated June&#160;29, 2007,
    receipt of which is hereby acknowledged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to and effective upon acceptance for payment of, and
    payment for, shares tendered with this letter of transmittal in
    accordance with the terms of the tender offer, the undersigned
    hereby (1)&#160;sells, assigns and transfers to or upon the
    order of Expedia all right, title and interest in and to all of
    the shares tendered hereby which are so accepted and paid for;
    (2)&#160;orders the registration of any shares tendered by
    book-entry transfer that are purchased under the tender offer to
    or upon the order of Expedia; and (3)&#160;appoints the
    depositary as attorney-in-fact of the undersigned with respect
    to such shares, with the full knowledge that the depositary also
    acts as the agent of Expedia, with full power of substitution
    (such power of attorney being an irrevocable power coupled with
    an interest), to perform the following functions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;deliver certificates for shares, or transfer ownership
    of such shares on the account books maintained by the book-entry
    transfer facility, together in either such case with all
    accompanying evidence of transfer and authenticity, to or upon
    the order of Expedia, upon receipt by the depositary, as the
    undersigned&#146;s agent, of the Purchase Price with respect to
    such shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;present certificates for such shares for cancellation
    and transfer on Expedia&#146;s books;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;receive all benefits and otherwise exercise all rights
    of beneficial ownership of such shares, subject to the next
    paragraph, all in accordance with the terms of the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned understands that Expedia will, upon the terms
    and subject to the conditions of the tender offer, determine a
    single per share price, not greater than $30.00 nor less than
    $27.50 per share (the &#147;Purchase Price&#148;), which it will
    pay for shares validly tendered and not validly withdrawn
    pursuant to the tender offer, after taking into account the
    number of shares so tendered and the prices specified by
    tendering stockholders. The undersigned understands that Expedia
    will select the lowest purchase price that will allow it to
    purchase 116,666,665&#160;shares or, if a lesser number of
    shares is validly tendered and not validly withdrawn, all such
    shares that are validly tendered and not validly withdrawn. The
    undersigned further understands that Expedia reserves the right
    to purchase more than 116,666,665&#160;shares pursuant to the
    tender offer, subject to certain limitations and legal
    requirements as set forth in the tender offer. Expedia will
    purchase all shares validly tendered at or below the Purchase
    Price and not validly withdrawn, subject to the conditions of
    the tender offer and the &#147;odd lot&#148; priority, proration
    and conditional tender provisions described in the offer to
    purchase. The undersigned understands that all stockholders
    whose shares are purchased by Expedia will receive the same
    Purchase Price for each share purchased in the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby covenants, represents and warrants to
    Expedia that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the undersigned has a net long position in the shares
    at least equal to the number of shares being tendered within the
    meaning of
    <FONT style="white-space: nowrap">Rule&#160;14e-4</FONT>
    under the Securities Exchange Act of 1934, as amended (the
    &#147;Exchange Act&#148;), and is tendering the shares in
    compliance with
    <FONT style="white-space: nowrap">Rule&#160;14e-4</FONT>
    under the Exchange Act;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;has full power and authority to tender, sell, assign
    and transfer the shares tendered hereby;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;when and to the extent Expedia accepts the shares for
    purchase, Expedia will acquire good and marketable title to
    them, free and clear of all security interests, liens,
    restrictions, claims, charges, encumbrances, conditional sales
    agreements or other obligations relating to their sale or
    transfer, and the shares will not be subject to any adverse
    claims or rights;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;the undersigned will, upon request, execute and deliver
    any additional documents deemed by the depositary or Expedia to
    be necessary or desirable to complete the sale, assignment and
    transfer of the shares tendered hereby and accepted for
    purchase;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;the undersigned has read and agrees to all of the terms
    of the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned understands that tendering of shares under any
    one of the procedures described in Section&#160;3 of the offer
    to purchase and in the Instructions to this letter of
    transmittal will constitute an agreement between the undersigned
    and Expedia
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    upon the terms and subject to the conditions of the tender
    offer. The undersigned acknowledges that under no circumstances
    will Expedia pay interest on the Purchase Price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned recognizes that under certain circumstances set
    forth in the offer to purchase, Expedia may terminate or amend
    the tender offer; or may postpone the acceptance for payment of,
    or the payment for, shares tendered, or may accept for payment
    fewer than all of the shares tendered hereby. The undersigned
    understands that certificate(s) for any shares not tendered or
    not purchased will be returned to the undersigned at the address
    indicated above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The names and addresses of the registered holders should be
    printed, if they are not already printed above, exactly as they
    appear on the certificates representing shares tendered hereby.
    The certificate numbers, the number of shares represented by
    such certificates, and the number of shares that the undersigned
    wishes to tender, should be set forth in the appropriate boxes
    above.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise indicated under &#147;Special Payment
    Instructions,&#148; please issue the check for the aggregate
    Purchase Price of any shares purchased (less the amount of any
    federal income or backup withholding tax required to be
    withheld),
    <FONT style="white-space: nowrap">and/or</FONT>
    return any shares not tendered or not purchased, in the name(s)
    of the undersigned or, in the case of shares tendered by
    book-entry transfer, by credit to the account at the book-entry
    transfer facility designated above. Similarly, unless otherwise
    indicated under &#147;Special Delivery Instructions,&#148;
    please mail the check for the aggregate Purchase Price of any
    shares purchased (less the amount of any federal income or
    backup withholding tax required to be withheld), and any
    certificates for shares not tendered or not purchased (and
    accompanying documents, as appropriate) to the undersigned at
    the address shown below the undersigned&#146;s signature(s). In
    the event that both the &#147;Special Payment Instructions&#148;
    and the &#147;Special Delivery Instructions&#148; are completed,
    please issue the check for the aggregate Purchase Price of any
    shares purchased (less the amount of any federal income or
    backup withholding tax required to be withheld)
    <FONT style="white-space: nowrap">and/or</FONT>
    return any shares not tendered or not purchased in the name(s)
    of, and mail said check and any certificates to, the person(s)
    so indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned recognizes that Expedia has no obligation, under
    the Special Payment Instructions, to transfer any certificate
    for shares from the name of its registered holder, or to order
    the registration or transfer of shares tendered by book-entry
    transfer, if Expedia purchases none of the shares represented by
    such certificate or tendered by such book-entry transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All authority conferred or agreed to be conferred in this letter
    of transmittal shall survive the death or incapacity of the
    undersigned and any obligations or duties of the undersigned
    under this letter of transmittal shall be binding upon the
    heirs, personal representatives, successors and assigns of the
    undersigned. Except as stated in the offer to purchase, this
    tender is irrevocable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 11 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STOCKHOLDER(S)
    SIGN HERE<BR>
    (See Instructions&#160;1 and 8)<BR>
    (Please Complete Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9)</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Must be signed by registered holder(s) exactly as name(s)
    appear(s) on share certificate(s) or on a security position
    listing or by person(s) authorized to become registered
    holder(s) by share certificates and documents transmitted
    herewith. If a signature is by an officer on behalf of a
    corporation or by an executor, administrator, trustee, guardian,
    attorney-in-fact, agent or other person acting in a fiduciary or
    representative capacity, please provide full title and see
    Instruction&#160;8.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">Signature(s) of
    Stockholder(s)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Dated:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=475 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Name(s):&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=464 length=0 -->
</TD>
</TR>

</TABLE>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Please Print)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="16%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Capacity (full title):&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=420 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Address:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=466 length=0 -->
</TD>
</TR>

</TABLE>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Please Include Zip
    Code)</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="27%"></TD>
    <TD width="73%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    (Area Code) Telephone Number:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=367 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="16%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Taxpayer Identification&#160;or<BR>
    Social Security No.:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=419 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GUARANTEE
    OF SIGNATURE(S)<BR>
    (If Required, See Instructions&#160;1 and 8)</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="18%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Authorized Signature:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=412 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Name(s):&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=464 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Name of Firm:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=441 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Address:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=466 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    Address Line 2:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=436 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="23%"></TD>
    <TD width="77%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD nowrap>    (Area Code) Telephone No.:&#160;</TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=385 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dated:&#160;<FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=128 iwidth=504 length=120 -->
</DIV>
</DIV><!-- End box 11 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INSTRUCTIONS&#160;TO
    LETTER OF TRANSMITTAL<BR>
    FORMING PART&#160;OF THE TERMS OF THE TENDER OFFER</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>If you participate in the Expedia Retirement Savings Plan,
    you must not use this letter of transmittal to direct the tender
    of the shares attributable to your account in one of this plan.
    Instead, you must use the separate &#147;tender instruction
    forms&#148; sent to participants in this plan. If you
    participate in the Expedia Retirement Savings Plan, you should
    read the separate &#147;tender instruction forms&#148; and
    related materials carefully.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;&#160;<B>Guarantee of Signatures.</B>&#160;&#160;Except
    as otherwise provided in this Instruction, all signatures on
    this letter of transmittal must be guaranteed by a financial
    institution that is a participant in the Securities Transfer
    Agents Medallion Program or a bank, broker, dealer, credit
    union, savings association or other entity which is an
    &#147;eligible guarantor institution&#148; as such term is
    defined in
    <FONT style="white-space: nowrap">Rule&#160;17Ad-15</FONT>
    under the Exchange Act (an &#147;Eligible Institution&#148;).
    Signatures on this letter of transmittal need not be guaranteed
    if either (a)&#160;this letter of transmittal is signed by the
    registered holder(s) of the shares (which term, for purposes of
    this letter of transmittal, shall include any participant in the
    book-entry transfer facility whose name appears on a security
    position listing as the owner of shares) tendered herewith and
    such holder(s) have not completed either the box entitled
    &#147;Special Payment Instructions&#148; or &#147;Special
    Delivery Instructions&#148; in this letter of transmittal; or
    (b)&#160;such shares are tendered for the account of an Eligible
    Institution. See Instruction&#160;8. You may also need to have
    any certificates you deliver endorsed or accompanied by a stock
    power, and the signatures on these documents may also need to be
    guaranteed. See Instruction&#160;8.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;&#160;<B>Delivery of Letter of Transmittal and
    Certificates; Guaranteed Delivery Procedures.</B>&#160;&#160;You
    should use this letter of transmittal only if you are
    (a)&#160;forwarding certificates with this letter of
    transmittal, (b)&#160;going to deliver certificates under a
    notice of guaranteed delivery previously sent to the depositary,
    or (c)&#160;causing the shares to be delivered by book-entry
    transfer pursuant to the procedures set forth in Section&#160;3
    of the offer to purchase. In order for you to validly tender
    shares, the depositary must receive certificates for all
    physically tendered shares, or a confirmation of a book-entry
    transfer of all shares delivered electronically into the
    depositary&#146;s account at the book-entry transfer facility,
    together in each case with a properly completed and duly
    executed letter of transmittal, or an Agent&#146;s Message in
    connection with book-entry transfer, and any other documents
    required by this letter of transmittal, at one of its addresses
    set forth in this letter of transmittal by the expiration date
    (as defined in the offer to purchase).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;Agent&#146;s Message&#148; means a message
    transmitted by the book-entry transfer facility to, and received
    by, the depositary, which states that the book-entry transfer
    facility has received an express acknowledgment from the
    participant in the book-entry transfer facility tendering the
    shares, that the participant has received and agrees to be bound
    by the terms of the letter of transmittal, and that Expedia may
    enforce this agreement against the participant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Guaranteed Delivery.</I>&#160;&#160;If you cannot deliver
    your shares and all other required documents to the depositary
    by the expiration date, or the procedure for book-entry transfer
    cannot be completed on a timely basis, you may tender your
    shares, pursuant to the guaranteed delivery procedure described
    in Section&#160;3 of the offer to purchase, by or through any
    Eligible Institution. To comply with the guaranteed delivery
    procedure, you must (1)&#160;properly complete and duly execute
    a notice of guaranteed delivery substantially in the form
    provided to you by Expedia, specifying the price at which you
    are tendering your shares, including (where required) a
    Signature Guarantee by an Eligible Institution in the form set
    forth in the notice of guaranteed delivery; (2)&#160;arrange for
    the depositary to receive the notice of guaranteed delivery by
    the expiration date; and (3)&#160;ensure that the depositary
    receives the certificates for all physically tendered shares or
    book-entry confirmation of electronic delivery of shares, as the
    case may be, together with a properly completed and duly
    executed letter of transmittal with any required signature
    guarantees or an Agent&#146;s Message, and all other documents
    required by this letter of transmittal, within three NASDAQ
    trading days after receipt by the depositary of such notice of
    guaranteed delivery, all as provided in Section&#160;3 of the
    offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notice of guaranteed delivery may be delivered by hand,
    facsimile transmission or mail to the depositary and must
    include, if necessary, a guarantee by an eligible guarantor
    institution in the form set forth in such notice. For shares to
    be tendered validly under the guaranteed delivery procedure, the
    depositary must receive the notice of guaranteed delivery before
    the expiration date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The method of delivery of all documents, including
    certificates for shares, is at the option and risk of the
    tendering stockholder. If you choose to deliver the documents by
    mail, we recommend that you use registered mail with return
    receipt requested, properly insured. In all cases, please allow
    sufficient time to assure delivery.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as specifically permitted by Section&#160;6 of the offer
    to purchase, Expedia will not accept any alternative,
    conditional or contingent tenders, nor will it purchase any
    fractional shares. By executing this letter of transmittal, you
    waive any right to receive any notice of the acceptance for
    payment of your tendered shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;&#160;<B>Inadequate Space.</B>&#160;&#160;If the space
    provided in the box captioned &#147;Description of Shares
    Tendered&#148; is inadequate, then you should list the
    certificate numbers, the number of shares represented by the
    certificate(s) and the number of shares tendered with respect to
    each certificate on a separate signed schedule attached to this
    letter of transmittal.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;&#160;<B>Partial Tenders and Unpurchased
    Shares.</B>&#160;&#160;(<I>Not applicable to stockholders who
    tender by book-entry transfer</I>.)&#160;&#160;If you wish to
    tender (i.e., offer to sell) fewer than all of the shares
    evidenced by any certificate(s) that you deliver to the
    depositary, fill in the number of shares that you wish to tender
    (i.e., offer for sale) in the column entitled &#147;Number of
    Shares Tendered.&#148; In this case, if Expedia purchases some
    but not all of the shares that you tender, Expedia will issue to
    you a new certificate for the unpurchased shares. The new
    certificate will be sent to the registered holder(s) as promptly
    as practicable after the expiration date. Unless you indicate
    otherwise, all shares represented by the certificate(s) listed
    and delivered to the depositary will be deemed to have been
    tendered. In the case of shares tendered by book-entry transfer
    at the book-entry transfer facility, any tendered but
    unpurchased shares will be credited to the appropriate account
    maintained by the tendering stockholder at the book-entry
    transfer facility. In each case, shares will be returned or
    credited without expense to the stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;&#160;<B>Indication of Price at Which Shares are Being
    Tendered.</B>&#160;&#160;In order to validly tender your shares
    by this letter of transmittal, you must either
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;&#160;check the box under &#147;SHARES TENDERED AT
    PRICE DETERMINED PURSUANT TO THE TENDER OFFER&#148; in order to
    maximize the chance of having Expedia purchase all of the shares
    that you tender (subject to the possibility of proration); OR
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;&#160;check one of the boxes indicating the price per
    share at which you are tendering shares in the section entitled
    &#147;SHARES TENDERED AT PRICE DETERMINED BY STOCKHOLDER.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOU MUST CHECK ONE, AND ONLY ONE, BOX. If you check more than
    one box or no boxes, then you will be deemed not to have validly
    tendered your shares. If you wish to tender portions of your
    different share holdings at different prices, you must complete
    a separate letter of transmittal for each price at which you
    wish to tender each such portion of your share holdings. </B>You
    cannot tender the same shares at more than one price (unless,
    prior to tendering previously tendered shares at a new price,
    you validly withdrew those shares in accordance with
    Section&#160;4 of the offer to purchase).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By checking the box under &#147;Shares Tendered at Price
    Determined Pursuant to the Tender Offer&#148; you agree to
    accept the Purchase Price resulting from the tender offer
    process, which may be as low as $27.50 and as high as $30.00 per
    share. By checking a box under &#147;Shares Tendered at Price
    Determined by Stockholder,&#148; you acknowledge that doing so
    could result in none of the shares you tender being purchased if
    the Purchase Price for the shares turns out to be less than the
    price you selected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;&#160;<B>Odd Lots</B>.&#160;&#160;As described in
    Section&#160;1 of the offer to purchase, if Expedia purchases
    fewer than all shares properly tendered before the expiration
    date and not properly withdrawn, Expedia will first purchase all
    shares tendered by any stockholder who (a)&#160;owns,
    beneficially or of record, an aggregate of fewer than
    100&#160;shares, and (b)&#160;tenders all of his or her shares
    at or below the Purchase Price. You will only receive this
    preferential treatment if you own fewer than 100&#160;shares and
    tender ALL of the shares you own at or below the Purchase Price.
    Even if you otherwise qualify for &#147;odd lot&#148;
    preferential treatment, you will not receive such preference
    unless you complete the section entitled &#147;Odd Lots&#148; in
    this letter of transmittal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;&#160;<B>Order of Purchase in the Event of
    Proration</B>.&#160;&#160;As described in Section&#160;1 of the
    offer to purchase, stockholders may specify the order in which
    their shares are to be purchased in the event that, as a result
    of proration or otherwise, Expedia purchases some but not all of
    the tendered shares pursuant to the terms of the tender offer.
    The order of purchase may have an effect on the federal income
    tax treatment of any gain or loss on the shares that Expedia
    purchases. See Sections&#160;1, 6 and 15 of the offer to
    purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;&#160;<B>Signatures on Letter of Transmittal, Stock
    Powers and Endorsements.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;&#160;<B>Exact Signatures</B>.&#160;&#160;If this
    letter of transmittal is signed by the registered holder(s) of
    the shares tendered hereby, the signature(s) must correspond
    exactly with the name(s) as written on the face of the
    certificate(s) without any change whatsoever.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;&#160;<B>Joint Holders.</B>&#160;&#160;If the shares
    are registered in the names of two or more persons, ALL such
    persons must sign this letter of transmittal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;&#160;<B>Different Names on
    Certificates</B>.&#160;&#160;If any tendered shares are
    registered in different names on several certificates, you must
    complete, sign and submit as many separate letters of
    transmittal as there are different registrations of certificates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;&#160;<B>Endorsements</B>.&#160;&#160;If this letter of
    transmittal is signed by the registered holder(s) of the shares
    tendered hereby, no endorsements of certificate(s) representing
    such shares or separate stock powers are required unless payment
    of the Purchase Price is to be made, or the certificates for
    shares not tendered or tendered but not purchased are to be
    issued, to a person other than the registered holder(s).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Signature(s)
    on Any Such Certificate(s) or Stock Powers Must be Guaranteed by
    an Eligible
    Institution</FONT></B><FONT style="font-family: 'Times New Roman', Times">.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this letter of transmittal is signed by a person other than
    the registered holder(s) of the shares tendered hereby, or if
    payment is to be made to a person other than the registered
    holder(s), the certificate(s) for the shares must be endorsed
    or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    accompanied by appropriate stock powers, in either case, signed
    exactly as the name(s) of the registered holder(s) appear(s) on
    the certificate(s) for such shares, and the signature(s) on such
    certificates or stock power(s) must be guaranteed by an Eligible
    Institution. See Instruction&#160;1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this letter of transmittal or any certificate or stock power
    is signed by a trustee, executor, administrator, guardian,
    attorney-in-fact, officer of a corporation or any other person
    acting in a fiduciary or representative capacity, such person
    should so indicate when signing and must submit to the
    depositary evidence satisfactory to Expedia that such person has
    authority so to act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;&#160;<B>Stock Transfer Taxes</B>.&#160;&#160;Except as
    provided in this Instruction&#160;9, no stock transfer tax
    stamps or funds to cover such stamps need to accompany this
    letter of transmittal. Expedia will pay or cause to be paid any
    stock transfer taxes payable on the transfer to it of shares
    purchased under the tender offer. If, however:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;&#160;payment of the Purchase Price is to be made to
    any person other than the registered holder(s);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;&#160;certificate(s) for shares not tendered or
    tendered but not purchased are to be returned in the name of and
    to any person other than the registered holder(s) of such
    shares; OR
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;&#160;tendered certificates are registered in the name
    of any person(s) other than the person(s) signing this letter of
    transmittal,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    then the depositary will deduct from the Purchase Price the
    amount of any stock transfer taxes (whether imposed on the
    registered holder(s), such other person(s) or otherwise) payable
    on account of the transfer of cash or stock thereby made to such
    person, unless satisfactory evidence of the payment of such
    taxes or an exemption from them is submitted with this letter of
    transmittal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;&#160;<B>Special Payment and Delivery
    Instructions</B>.&#160;&#160;If any of the following conditions
    holds:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;&#160;check(s) for the Purchase Price of any shares
    purchased pursuant to the tender offer are to be issued to a
    person other than the person(s) signing this letter of
    transmittal;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;&#160;check(s) for the Purchase Price are to be sent to
    any person other than the person signing this letter of
    transmittal, or to the person signing this letter of
    transmittal, but at a different address;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;&#160;certificates for any shares not tendered, or
    tendered but not purchased, are to be returned to and in the
    name of a person other than the person(s) signing this letter of
    transmittal, then, in each such case, you must complete the
    boxes captioned &#147;Special Payment Instructions&#148;
    <FONT style="white-space: nowrap">and/or</FONT>
    &#147;Special Delivery Instructions&#148; as applicable in this
    letter of transmittal and make sure that the signatures herein
    are guaranteed as described in Instructions&#160;1 and 8.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;&#160;<B>Conditional Tenders</B>.&#160;&#160;As
    described in Sections&#160;1 and 6 of the offer to purchase,
    stockholders may condition their tenders on Expedia purchasing
    all of their shares, or specify a minimum number of shares that
    Expedia must purchase for the tender of any of their shares to
    be effective. If you wish to make a conditional tender you must
    indicate this choice in the box entitled &#147;Conditional
    Tender&#148; in this letter of transmittal or, if applicable,
    the notice of guaranteed delivery; and you must calculate and
    appropriately indicate, in the space provided, the minimum
    number of shares that Expedia must purchase if Expedia purchases
    any shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in Sections&#160;1 and 6 of the offer to purchase,
    proration may affect whether Expedia accepts conditional
    tenders. Proration may result in all of the shares tendered
    pursuant to a conditional tender being deemed to have been
    withdrawn, if Expedia could not purchase the minimum number of
    shares required to be purchased by the tendering stockholder due
    to proration. If, because of proration, Expedia will not
    purchase the minimum number of shares that you designate,
    Expedia may accept conditional tenders by random lot, if
    necessary. However, to be eligible for purchase by random lot,
    you must have tendered all of your shares and must have checked
    the box so indicating. Upon selection by random lot, if any,
    Expedia will limit its purchase in each case to the designated
    minimum number of shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are an &#147;odd lot&#148; holder and you tender all of
    your shares, you cannot conditionally tender, since your shares
    will not be subject to proration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All tendered shares will be deemed unconditionally tendered
    unless the &#147;Conditional Tender&#148; box is checked and
    appropriately completed. When deciding whether to tender shares
    conditionally, each stockholder should consult his or her own
    tax advisor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;&#160;<B>Tax Identification Number and Backup
    Withholding</B>.&#160;&#160;Under United States federal income
    tax laws, the depositary will be required to withhold 28% of the
    amount of any payments made to certain stockholders or other
    payees pursuant to the tender offer. In order to avoid such
    backup withholding, each tendering stockholder that is a U.S.
    person (including a U.S. resident alien) must provide the
    depositary with such stockholder&#146;s correct taxpayer
    identification number by completing the Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    set forth below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, if a stockholder is an individual, the taxpayer
    identification number is the social security number of such
    individual. If the depositary is not provided with the correct
    taxpayer identification number, the stockholder may be subject
    to a penalty imposed by the Internal Revenue Service and
    payments that are made to such stockholder pursuant to the
    tender offer may be subject to backup withholding. Certain
    stockholders (including, among others, all corporations and
    certain
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    (as defined in Section&#160;15 of the offer to purchase) are not
    subject to these backup withholding and reporting requirements.
    In order to satisfy the depositary that a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    qualifies as an exempt recipient, such stockholder must submit
    an appropriate IRS
    <FONT style="white-space: nowrap">Form&#160;W-8,</FONT>
    signed under penalties of perjury, attesting to that
    person&#146;s exempt status. You can obtain such forms from the
    depositary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information concerning backup withholding and
    instructions for completing the Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    (including how to obtain a taxpayer identification number if you
    do not have one and how to complete the Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    if shares are held in more than one name), consult the enclosed
    <I>Guidelines for Certification of Taxpayer Identification
    Number on Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Failure to complete the Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    will not, by itself, cause shares to be deemed invalidly
    tendered, but may require the depositary to withhold 28% of the
    amount of any payments made pursuant to the tender offer. Backup
    withholding is not an additional federal income tax. Rather, the
    federal income tax liability of a person subject to backup
    withholding will be reduced by the amount of tax withheld. If
    withholding results in an overpayment of taxes, the taxpayer may
    obtain a refund, provided that the required information is
    furnished to the Internal Revenue Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTE: FAILURE TO COMPLETE AND RETURN THE SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    MAY RESULT IN BACKUP WITHHOLDING OF 28% OF ANY PAYMENTS MADE TO
    YOU PURSUANT TO THE TENDER OFFER. PLEASE REVIEW THE ENCLOSED
    <I>GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
    NUMBER ON SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    </I>FOR ADDITIONAL DETAILS.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, as described in Section&#160;3 of the offer to
    purchase, unless a reduced rate of withholding tax is applicable
    pursuant to an income tax treaty or an exemption from
    withholding is applicable because gross proceeds paid pursuant
    to the tender offer are effectively connected with the conduct
    of a trade or business within the United States (and, if an
    income tax treaty applies, the gross proceeds are attributable
    to a United States permanent establishment maintained by such
    Non-U.S. Holder), Expedia will be required to withhold federal
    income tax at a rate of 30% from any gross proceeds paid to a
    Non-U.S. Holder or his agent. A Non-U.S. Holder may be eligible
    to file for a refund of such tax or a portion of such tax if
    such stockholder meets the &#147;complete termination,&#148;
    &#147;substantially disproportionate&#148; or &#147;not
    essentially equivalent to a dividend&#148; tests described in
    the offer to purchase under the caption &#147;The Tender
    Offer&#160;&#151; 15. Material U.S. Federal Income Tax
    Consequences&#148; or if such stockholder is entitled to a
    reduced rate of withholding pursuant to a tax treaty and Expedia
    withheld at a higher rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to obtain a reduced rate of withholding under an income
    tax treaty or an exemption, a Non-U.S. Holder must deliver to
    the depositary, before the payment, a properly completed and
    executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (with respect to income tax treaty benefits) or W8-ECI (with
    respect to amounts effectively connected with the conduct of a
    trade or business within the United States) claiming such a
    reduction or exemption. A stockholder can obtain the applicable
    forms from the depositary. Non-U.S. Holders should consult their
    own tax advisors regarding the application of United States
    federal income tax withholding, including their potential
    eligibility for a withholding tax reduction or exemption, and
    the refund procedure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;&#160;<B>Irregularities</B>.&#160;&#160;Expedia will
    determine in its sole discretion all questions as to the
    Purchase Price, the number of shares to accept, and the
    validity, eligibility (including time of receipt), and
    acceptance for payment of any tender of shares. Any such
    determinations will be final and binding on all parties. Expedia
    reserves the absolute right to reject any or all tenders of
    shares it determines not be in proper form or the acceptance of
    which or payment for which may, in the opinion of Expedia, be
    unlawful. Expedia also reserves the absolute right to waive any
    of the conditions of the tender offer and any defect or
    irregularity in the tender of any particular shares, and
    Expedia&#146;s interpretation of the terms of the tender offer,
    including these instructions, will be final and binding on all
    parties. No tender of shares will be deemed to be properly made
    until all defects and irregularities have been cured or waived.
    Unless waived, any defects or irregularities in connection with
    tenders must be cured within such time as Expedia shall
    determine. None of Expedia, the depositary, the information
    agent (as defined in the offer to purchase) or any other person
    is or will be obligated to give notice of any defects or
    irregularities in tenders and none of them will incur any
    liability for failure to give any such notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;&#160;<B>Questions; Requests for Assistance and
    Additional Copies</B>.&#160;&#160;Please direct any questions or
    requests for assistance or for additional copies of the offer to
    purchase, the letter of transmittal or the notice of guaranteed
    delivery to the information agent at the telephone number and
    address set forth below. You may also contact your broker,
    dealer, commercial bank or trust company for assistance
    concerning the tender offer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.&#160;&#160;<B>Stock Option Plans</B>.&#160;&#160;If you hold
    vested options in Expedia&#146;s stock option plans, then you
    may exercise such vested options by paying the cash exercise
    price and receiving shares which you may then tender in
    accordance with the terms of the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.&#160;&#160;<B>Lost, Stolen, Destroyed or Mutilated
    Certificates</B>.&#160;&#160;If any certificate representing any
    shares has been lost, stolen, destroyed or mutilated, you should
    notify The Bank of New York, the transfer agent for the shares,
    by calling
    <FONT style="white-space: nowrap">1-800-507-9357</FONT>
    and asking for instructions on obtaining replacement
    certificate(s) at the address specified on the cover of this
    letter of transmittal. The Bank of New York will require you to
    complete an affidavit of loss and return it to The Bank of New
    York. You will then be instructed by The Bank of New York as to
    the steps you must take in order to replace the certificate. You
    may be required to post a bond to secure against the risk that
    the original certificate may be subsequently recirculated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot process this letter of transmittal and related
    documents until you have followed the procedures for replacing
    lost, stolen, destroyed or mutilated certificates. We urge you
    to contact the transfer agent, The Bank of New York,
    immediately, in order to receive further instructions, for a
    determination as to whether you will need to post a bond, and to
    permit timely processing of this documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Important: The depositary must receive this letter of
    transmittal (together with certificate(s) for shares or
    confirmation of book-entry transfer and all other required
    documents) or, if applicable, the notice of guaranteed delivery,
    before the expiration date.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOU MUST COMPLETE AND SIGN THE SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    BELOW. Please provide your social security number or other
    taxpayer identification number (&#147;TIN&#148;) and certify
    that you are not subject to backup withholding.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 0pt; border-right: 1px solid #000000; padding-right: 0pt; border-bottom: 1px solid #000000; padding-bottom: 0pt; border-left: 1px solid #000000; padding-left: 0pt"><!-- Begin box 1 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT><BR>
    Department of the Treasury Internal Revenue Service<BR>
    Payer&#146;s Request for TIN and Certification</FONT></B>
</DIV>

<DIV style="font-size: 6pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please check the appropriate box indicating your status:
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
    <TD width="20%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-family: 'Times New Roman', Times">&#160;<FONT face="Wingdings">&#111;</FONT>&#160;Individual/Sole
    proprietor
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-family: 'Times New Roman', Times"><FONT face="Wingdings">&#111;</FONT>&#160;Corporation
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-family: 'Times New Roman', Times"><FONT face="Wingdings">&#111;</FONT>&#160;Partnership
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-family: 'Times New Roman', Times"><FONT face="Wingdings">&#111;</FONT>&#160;Other
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times"><FONT face="Wingdings">&#111;</FONT>&#160;Exempt
    from backup withholding&#160;
    </FONT></TD>
</TR>

</TABLE>

<DIV style="font-size: 6pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Address (number, street, and apt. or suite no.)
</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    City, State and ZIP code
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="90%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD colspan="5" align="left" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=503 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="bottom" style="color: #FFFFFF; background: #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #FFFFFF; background: #000000">
    <B><FONT style="font-size: 10pt">Part&#160;I</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom" style="color: #FFFFFF; background: #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <B><FONT style="font-size: 8pt">Taxpayer Identification Number
    (&#147;TIN&#148;)</FONT></B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD colspan="5" align="left" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=503 length=0 --><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="30%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    &nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 6pt">
    <B><FONT style="font-size: 10pt">PLEASE PROVIDE YOUR TIN ON THE
    APPROPRIATE LINE AT THE
    RIGHT.</FONT></B><FONT style="font-size: 10pt"> For most
    individuals, this is your social security number. If you do not
    have a number, see the enclosed <I>Guidelines for Certification
    of Taxpayer Identification Number on Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT></I>.
    If you are awaiting a TIN, write &#147;Applied For&#148; in this
    Part&#160;I, complete the &#147;Certificate Of Awaiting Taxpayer
    Identification Number&#148; below.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="middle" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -0pt; margin-left: 0pt;">
<BR><DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=156 length=865 --><FONT style="font-size: 8pt">Social Security Number<BR><BR>OR<BR></FONT><FONT style="font-size: 10pt">&#160;<BR><DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=156 length=865 --></FONT><FONT style="font-size: 8pt">Employer
Identification Number</FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &nbsp;<FONT style="font-size: 10pt">
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="90%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD colspan="5" align="left" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=503 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="bottom" style="color: #FFFFFF; background: #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #FFFFFF; background: #000000">
    <B><FONT style="font-size: 10pt">Part&#160;II</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom" style="color: #FFFFFF; background: #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 8pt">Certification</FONT></B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 2pt"><!-- 05-19-07 -->
<TD colspan="5" align="left" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=503 length=0 --><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under penalties of perjury, I certify that:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;The number shown on this form is my correct Taxpayer
    Identification Number (or I am waiting for a number to be issued
    to me),&#160;and
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;I am not subject to backup withholding because
    (a)&#160;I am exempt from backup withholding, or (b)&#160;I have
    not been notified by the IRS that I am subject to backup
    withholding as a result of a failure to report all interest or
    dividends, or (c)&#160;the IRS has notified me that I am no
    longer subject to backup withholding,&#160;and
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;I am a U.S.&#160;person (including a U.S.&#160;resident
    alien).
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Certification Instructions</B>&#160;&#151; You must cross out
    item (2)&#160;above if you have been notified by the IRS that
    you are currently subject to backup withholding because you have
    failed to report all interest and dividends on your tax return.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The IRS does not require your consent to any provision of this
    document other than the certifications required to avoid backup
    withholding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="16%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="57%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="24%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    &nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 4pt">
    <B><FONT style="font-size: 8pt">Sign<BR>
    Here</FONT></B>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 8pt">Signature of<BR>
    U.S.&#160;Person
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 8pt">Date
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTE:&#160;FAILURE TO COMPLETE AND RETURN THE SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    MAY RESULT IN BACKUP WITHHOLDING OF 28% OF ANY PAYMENTS MADE TO
    YOU ON ACCOUNT OF THE TENDER OFFER. PLEASE REVIEW THE ENCLOSED
    <I>GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
    NUMBER ON SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT>
    </I>FOR ADDITIONAL DETAILS.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>COMPLETE THE FOLLOWING CERTIFICATION IF YOU WROTE
    &#147;APPLIED FOR&#148;<BR>
    INSTEAD OF A TIN ON THE SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9.</FONT></B>
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 0pt; border-right: 1px solid #000000; padding-right: 0pt; border-bottom: 1px solid #000000; padding-bottom: 0pt; border-left: 1px solid #000000; padding-left: 0pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><B>CERTIFICATE
    OF AWAITING TAXPAYER IDENTIFICATION NUMBER</B>
</DIV>

<DIV style="font-size: 6pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 1%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    I certify under penalties of perjury that a taxpayer
    identification number has not been issued to me, and either
    (a)&#160;I have mailed or delivered an application to receive a
    TIN to the appropriate Internal Revenue Service Center or Social
    Security Administration Office or (b)&#160;I intend to mail or
    deliver an application in the near future. I understand that if
    I do not provide a TIN by the time of payment, 28% of all
    reportable payments made to me will be withheld.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="16%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="54%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    &nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 4pt">
    <B><FONT style="font-size: 8pt">Sign<BR>
    Here</FONT></B>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 8pt">Signature of<BR>
    U.S.&#160;Person
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 8pt">Date
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GUIDELINES
    FOR CERTIFICATION OF TAXPAYER IDENTIFICATION<BR>
    NUMBER ON SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Guidelines for Determining the Proper Identification Number
    for the Payee (You) to Give the Payer</B>&#160;&#151; Social
    Security numbers have nine digits separated by two hyphens:
    i.e.,
    <FONT style="white-space: nowrap">000-00-0000.</FONT>
    Employer identification numbers have nine digits separated by
    only one hyphen: i.e.,
    <FONT style="white-space: nowrap">00-0000000.</FONT>
    The table below will help determine the number to give the
    payer. All &#147;Section&#148; references are to the Internal
    Revenue Code of 1986, as amended. &#147;IRS&#148; is the
    Internal Revenue Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="46%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Give the name and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>social security<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" align="left" valign="bottom">
    <B>For this type of account:</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>number of&#160;&#151; </B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">1.
    </FONT>
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 8pt">Individual
    </FONT>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 8pt">The individual
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">2.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Two or more individuals (joint
    account)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">The actual owner of the account or,
    if combined funds, the first individual on the account(1)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">3.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Custodian account of a minor
    (Uniform Gift to Minors Act)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The minor(2)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">4.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 8pt">a.&#160;The usual revocable savings
    trust (grantor is also trustee)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The grantor-trustee(1)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 8pt">b.&#160;So-called trust account
    that is not a legal or valid trust under state law
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">The actual owner(1)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">5.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Sole proprietorship or single-owner
    LLC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The owner(3)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">6.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Sole proprietorship or
    single-member LLC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The owner(3)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    <B>Give the name<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" align="left" valign="bottom">
    <B>For this type of account:</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>and employer identification number of&#160;&#151;</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">7.
    </FONT>
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 8pt">A valid trust, estate, or pension
    trust
    </FONT>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 8pt">The legal entity(4)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">8.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Corporate or LLC electing corporate
    status on Form&#160;8832
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The corporation
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">9.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Association, club, religious,
    charitable, educational, or other tax-exempt organization
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The organization
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">10.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Partnership or multi-member LLC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">The partnership
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">11.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">A broker or registered nominee
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">The broker or nominee
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">12.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Account with the Department of
    Agriculture in the name of a public entity (such as a state or
    local government, school district, or prison) that receives
    agricultural program payments
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">The public entity
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">List first and circle the name of
    the person whose number you furnish. If only one person on a
    joint account has a social security number, that person&#146;s
    number must be furnished.
    </FONT></TD>
</TR>



<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Circle the minor&#146;s name and
    furnish the minor&#146;s social security number.
    </FONT></TD>
</TR>



<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">You must show your individual name,
    but you may also enter your business or &#147;doing business
    as&#148; name. You may use either your social security number or
    your employer identification number (if you have one).
    </FONT></TD>
</TR>



<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">List first and circle the name of
    the legal trust, estate, or pension trust. (Do not furnish the
    taxpayer identification number of the personal representative or
    trustee unless the legal entity itself is not designated in the
    account title.)
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTE:&#160;&#160;If no name is circled when there is more
    than one name listed, the number will be considered to be that
    of the first name listed.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GUIDELINES
    FOR CERTIFICATION OF TAXPAYER IDENTIFICATION<BR>
    NUMBER ON SUBSTITUTE
    <FONT style="white-space: nowrap">FORM&#160;W-9</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Obtaining
    a Number</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you do not have a taxpayer identification number, apply for
    one immediately. To apply for a SSN, get
    <FONT style="white-space: nowrap">Form&#160;SS-5,</FONT>
    Application for a Social Security Card, from your local Social
    Security Administration office. Get
    <FONT style="white-space: nowrap">Form&#160;W-7,</FONT>
    Application for IRS Individual Taxpayer Identification Number,
    to apply for a TIN, or
    <FONT style="white-space: nowrap">Form&#160;SS-4,</FONT>
    Application for Employer Identification Number, to apply for an
    EIN. You can get
    <FONT style="white-space: nowrap">Forms&#160;W-7</FONT>
    and SS-4 from the IRS by calling (800)&#160;TAX-FORM, or from
    the IRS web site at www.irs.gov.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payees
    Exempt From Backup Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Payees specifically exempted from backup withholding
    include:</I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;
</TD>
    <TD align="left">
    An organization exempt from tax under Section&#160;501(a), an
    individual retirement account (IRA), or a custodial account
    under Section 403(b)(7) if the account satisfies the
    requirements of Section 401(f)(2).
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;
</TD>
    <TD align="left">
    The United States or any of its agencies or instrumentalities.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;
</TD>
    <TD align="left">
    A state, the District of Columbia, a possession of the United
    States, or any of their political subdivisions or
    instrumentalities.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4.&#160;
</TD>
    <TD align="left">
    A foreign government or any of its political subdivisions,
    agencies or instrumentalities.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5.&#160;
</TD>
    <TD align="left">
    An international organization or any of its agencies or
    instrumentalities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Payees that may be exempt from backup withholding include:</I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    6.&#160;
</TD>
    <TD align="left">
    A corporation.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    7.&#160;
</TD>
    <TD align="left">
    A foreign central bank of issue.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    8.&#160;
</TD>
    <TD align="left">
    A dealer in securities or commodities required to register in
    the United States, the District of Columbia, or a possession of
    the United States.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    9.&#160;
</TD>
    <TD align="left">
    A futures commission merchant registered with the Commodity
    Futures Trading Commission.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    10.&#160;
</TD>
    <TD align="left">
    A real estate investment trust.
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    11.&#160;
</TD>
    <TD align="left">
    An entity registered at all times during the tax year under the
    Investment Company Act of 1940.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;A common trust fund operated by a bank under
    Section&#160;584(a).
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;A financial institution.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;A middleman known in the investment community as a
    nominee or custodian.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.&#160;A trust exempt from tax under Section&#160;664 or
    described in Section&#160;4947.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The chart below shows types of payments that may be exempt from
    backup withholding. The chart applies to the exempt recipients
    listed above, <B>1 </B>through <B>15</B>.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="60%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom" style="font-size: 8pt">
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=442 length=504 -->
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: -8pt; margin-left: 14pt">
    <B>If the payment is for...</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: 0pt; margin-left: 6pt">
    <B>THEN the payment is exempt for...</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom" style="font-size: 8pt">
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=442 length=504 -->
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: -8pt; margin-left: 14pt">
    Interest and dividend payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: 0pt; margin-left: 6pt">
    All exempt recipients except for <B>9</B>.
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom" style="font-size: 8pt">
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=442 length=504 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: -8pt; margin-left: 14pt">
    Broker transactions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom" style="font-size: 8pt">
<DIV style="text-indent: 0pt; margin-left: 6pt">
    Exempt recipients <B>1 </B>through <B>13</B>. Also, a person
    registered under the Investment<BR>
     Advisers Act of 1940 who regularly acts as a broker.
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 8pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom" style="font-size: 8pt">
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=442 length=504 -->
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Exempt payees should complete a substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    to avoid possible erroneous backup
    withholding.</I></B><I>&#160;&#160;Furnish your taxpayer
    identification number, check the appropriate box for your
    status, check the &#147;Exempt from backup withholding&#148;
    box, sign and date the form and return it to the payer. Foreign
    payees who are not subject to backup withholding should complete
    an appropriate
    <FONT style="white-space: nowrap">Form&#160;W-8</FONT>
    and return it to the payer.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Privacy Act Notice.</B>&#160;&#160;Section&#160;6109 requires
    you to provide your correct taxpayer identification number to
    payers who must file information returns with the IRS to report
    interest, dividends, and certain other income paid to you to the
    IRS. The IRS uses the numbers for identification purposes and to
    help verify the accuracy of your return and may also provide
    this information to various government agencies for tax
    enforcement or litigation purposes and to cities, states, and
    the District of Columbia to carry out their tax laws, and may
    also disclose this information to other countries under a tax
    treaty, or to Federal and state agencies to enforce Federal
    nontax criminal laws and to combat terrorism. Payers must be
    given the numbers whether or not recipients are required to file
    tax returns. Payers must generally withhold 28% of taxable
    interest, dividend, and certain other payments to a payee who
    does not furnish a taxpayer identification number to a payer.
    Certain penalties may also apply.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Penalties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(1)&#160;Failure to Furnish Taxpayer Identification
    Number.</B>&#160;&#160;If you fail to furnish your correct
    taxpayer identification number to a payer, you are subject to a
    penalty of $50 for each such failure unless your failure is due
    to reasonable cause and not to willful neglect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(2)&#160;Civil Penalty for False Information with Respect to
    Withholding.</B>&#160;&#160;If you make a false statement with
    no reasonable basis that results in no backup withholding, you
    are subject to a $500 penalty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(3)&#160;Criminal Penalty for Falsifying
    Information.</B>&#160;&#160;Willfully falsifying certifications
    or affirmations may subject you to criminal penalties including
    fines <FONT style="white-space: nowrap">and/or</FONT>
    imprisonment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>FOR ADDITIONAL INFORMATION CONTACT YOUR TAX CONSULTANT OR THE
    INTERNAL REVENUE SERVICE.</B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The letter of transmittal and certificates for shares and any
    other required documents should be sent or delivered by each
    tendering stockholder or its broker, dealer, commercial bank,
    trust company or other nominee to the depositary at one of its
    addresses set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any questions or requests for assistance or for additional
    copies of the offer to purchase, the letter of transmittal or
    the notice of guaranteed delivery may be directed to the
    information agent at the telephone number and address set forth
    below. You may also contact MacKenzie Partners, Inc. or your
    broker, dealer, commercial bank or trust company for assistance
    concerning the tender offer. To confirm delivery of your shares,
    please contact the depositary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The information agent for the tender offer is:</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477ormackenzi.jpg" alt="MACKENZIE LOGO" >
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    105 Madison Avenue
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, New York 10016
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(212)&#160;929-5500</FONT>
    (call collect)
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    proxy@mackenziepartners.com
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Call Toll Free
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT></B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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<TYPE>EX-99.(A)(1)(C)
<SEQUENCE>4
<FILENAME>v31477orexv99wxayx1yxcy.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(C)
<TEXT>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 3%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(1)(C)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTICE OF
    GUARANTEED DELIVERY</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(Not to be Used for Signature Guarantee)</B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>for</B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Offer to Purchase for Cash</I></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Up to 116,666,665&#160;Shares of its Common Stock</I></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>At a Purchase Price Not Greater Than $30.00</I></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Nor Less Than $27.50 Per Share</I></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>by</I></B>
</DIV>

<DIV align="center" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Expedia, Inc.</I></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>


<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>THE TENDER OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS
    WILL</I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 12pt">EXPIRE AT 5:00&#160;P.M.,
    NEW YORK CITY TIME, ON WEDNESDAY,</FONT></I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 12pt">AUGUST 8, 2007, UNLESS
    EXPEDIA EXTENDS THE TENDER OFFER.</FONT></I></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As set forth in Section&#160;3 of the offer to purchase, dated
    June&#160;29, 2007, you should use this notice of guaranteed
    delivery (or a facsimile of it) to accept the tender offer (as
    defined herein) if:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;your share certificates are not immediately available
    or you cannot deliver certificates representing shares of common
    stock, par value $.001 per share (the &#147;shares&#148;) of
    Expedia, Inc., a Delaware corporation (&#147;Expedia&#148;),
    prior to the &#147;expiration date&#148; (as defined in
    Section&#160;1 of the offer to purchase);&#160;or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;the procedure for book-entry transfer cannot be
    completed before the expiration date (as specified in
    Section&#160;1 of the offer to purchase);&#160;or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;time will not permit a properly completed and duly
    executed letter of transmittal and all other required documents
    to reach the depositary referred to below before the expiration
    date.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may deliver this notice of guaranteed delivery (or a
    facsimile of it), signed and properly completed, by hand, mail,
    overnight courier or facsimile transmission so that the
    depositary receives it before the expiration date. See
    Section&#160;3 of the offer to purchase and Instruction&#160;2
    to the letter of transmittal.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The depositary for the tender offer is:</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Bank of New York</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
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    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
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    <TD width="19%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">By Mail:</FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Hand:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Overnight
    Delivery:</FONT></I>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">The Bank of New York
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Expedia Inc.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Tender &#038; Exchange Dept.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Expedia Inc.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">P.O.&#160;Box&#160;859208
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">11W
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">161 Bay State Drive
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Braintree, MA
    <FONT style="white-space: nowrap">02185-9028</FONT>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">101 Barclay Street
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Braintree, MA 02184
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Receive &#038; Deliver Window
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Street Level<BR>
    New York, NY 10286
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Facsimile:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">For Eligible Institutions
    Only<BR>
    </FONT></I><FONT style="font-size: 10pt">(781) 930-4939
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">Confirm Facsimile Receipt by
    telephone:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">(781) 930-4900
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Delivery of this notice of guaranteed delivery to an address
    other than those shown above or transmission of instructions via
    the facsimile number other than the one listed above does not
    constitute a valid delivery. Deliveries to Expedia or to the
    information agent of the tender offer will not be forwarded to
    the depositary and therefore will not constitute valid delivery.
    Deliveries to the book-entry transfer facility will not
    constitute valid delivery to the depositary.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You cannot use this notice of guaranteed delivery form to
    guarantee signatures. If a signature on the letter of
    transmittal is required to be guaranteed by an &#147;eligible
    guarantor institution&#148; (as defined in Section&#160;3 of the
    offer to purchase) under the instructions thereto, such
    signature must appear in the applicable space provided in the
    signature box on the letter of transmittal.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->
<P>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ladies and Gentlemen:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby tenders to Expedia the number of shares
    indicated below, at the price per share indicated below, net to
    the seller in cash, without interest, upon the terms and subject
    to the conditions set forth in the offer to purchase and the
    related letter of transmittal, which together (and as each may
    be amended or supplemented from time to time) constitute the
    tender offer, and the receipt of which is hereby acknowledged.
    This tender is being made pursuant to the guaranteed delivery
    procedure set forth in Section&#160;3 of the offer to purchase.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Number of Shares Being Tendered
    Hereby:<U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>Shares</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CHECK <I>ONE AND ONLY ONE BOX</I>. IF YOU CHECK MORE THAN ONE
    BOX, OR IF YOU DO<BR>
    NOT CHECK ANY BOX, YOU WILL HAVE FAILED TO VALIDLY TENDER ANY
    SHARES.</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SHARES TENDERED AT PRICE DETERMINED PURSUANT TO THE TENDER
    OFFER</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(See Instruction&#160;5 of the letter of transmittal)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">
    The undersigned wants to maximize the chance of having Expedia
    purchase all shares the undersigned is tendering (subject to the
    possibility of proration). Accordingly, by checking this
    <B>ONE</B> box <B>INSTEAD OF ONE OF THE PRICE BOXES BELOW</B>,
    the undersigned hereby tenders shares and is willing to accept
    the purchase price determined by Expedia pursuant to the tender
    offer (the &#147;Purchase Price&#148;). This action could result
    in receiving a price per share of as low as $27.50.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#151;&#160;OR&#160;&#151;&#160;</B>
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES
    TENDERED AT PRICE DETERMINED BY STOCKHOLDER<BR>
    (See Instruction&#160;5 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By checking <B>ONE </B>of the boxes below <B>INSTEAD OF THE BOX
    ABOVE</B>, the undersigned hereby tenders shares at the price
    checked. This action could result in none of the shares being
    purchased if the Purchase Price is less than the price checked
    below. <B>A stockholder who desires to tender shares at more
    than one price must complete a separate letter of transmittal
    for each price at which the stockholder tenders shares. </B>You
    cannot tender the same shares at more than one price, unless you
    have previously validly withdrawn those shares at a different
    price in accordance with Section&#160;4 of the offer to purchase.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Price (in
    Dollars) Per Share at Which Shares Are Being Tendered</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="29%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="29%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $27.50
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    28.50
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.50
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $27.75
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    28.75
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.75
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $28.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.00
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    30.00
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $28.25
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.25
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">You WILL
    NOT have validly tendered your shares<BR>
    unless you check ONE AND ONLY ONE BOX IN THIS PAGE.</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->
<P>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ODD
    LOTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(See Instruction&#160;6 of the letter of transmittal)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To be completed <B>only </B>if shares are being tendered by or
    on behalf of a person owning, beneficially or of record, an
    aggregate of fewer than 100&#160;shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the date hereof, the undersigned either (check one box):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    is the beneficial or record owner of an aggregate of fewer than
    100&#160;shares and is tendering all of those shares,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;OR
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    is a broker, dealer, commercial bank, trust company or other
    nominee that (i)&#160;is tendering, for the beneficial owner(s)
    thereof, shares with respect to which it is the record holder,
    and (ii)&#160;believes, based upon representations made to it by
    such beneficial owner(s), that each such person was the
    beneficial owner of an aggregate of fewer than 100&#160;shares
    and is tendering all of such shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In addition, the undersigned is tendering shares (check ONE
    box):</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the Purchase Price, which will be determined by Expedia in
    accordance with the terms of the tender offer (persons checking
    this box should check the first box on page&#160;2 of this
    notice of guaranteed delivery, under the heading &#147;Shares
    Tendered at Purchase Price Pursuant to the Tender
    Offer&#148;);&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the price per share indicated under the heading, &#147;Price
    (in Dollars) Per Share at Which Shares Are Being Tendered&#148;
    on page&#160;2 of this notice of guaranteed delivery.
</TD>
</TR>

</TABLE>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=528 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONDITIONAL
    TENDER<BR>
    (See Instruction&#160;11 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A tendering stockholder may condition such stockholder&#146;s
    tender of any shares upon the purchase by Expedia of a specified
    minimum number of the shares such stockholder tenders, as
    described in Section&#160;6 of the offer to purchase. Unless
    Expedia purchases at least the minimum number of shares you
    indicate below pursuant to the terms of the tender offer,
    Expedia will not purchase any of the shares tendered below. It
    is the tendering stockholder&#146;s responsibility to calculate
    that minimum number, and each stockholder should consult his or
    her own tax advisor in doing so. Unless you check the box
    immediately below and specify, in the space provided, a minimum
    number of shares that Expedia must purchase if Expedia purchases
    any shares, Expedia will deem your tender unconditional.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The minimum number of shares that Expedia must purchase if
    Expedia purchases any shares, is:
    <U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, because of proration, Expedia will not purchase the minimum
    number of shares that you designate, Expedia may accept
    conditional tenders by random lot, if necessary. However, to be
    eligible for purchase by random lot, the tendering stockholder
    must have tendered all of his or her shares. To certify that you
    are tendering all of the shares you own, check the box below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The tendered shares represent all shares held by the undersigned.
</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->
<P>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STOCKHOLDERS
    COMPLETE AND SIGN BELOW</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Please type or print</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Certificate No.(s) (if available):
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Signature(s) of Stockholder(s):
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=288 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=195 length=0 --><FONT style="font-size: 10pt">Date:
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=288 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=195 length=0 --><FONT style="font-size: 10pt">Date:
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=288 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=195 length=0 --><FONT style="font-size: 10pt">Date:
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Name(s) of Stockholders:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Area Code&#160;&#038;
    Phone&#160;No.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Address(es) of Stockholders:
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=104 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=104 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 -->
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=104 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=168 length=0 --><FONT style="font-size: 10pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If shares will be tendered by book-entry transfer provide the
    following information:
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Name of Tendering Institution:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Account No:
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=288 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=195 length=0 -->
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->
<P>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 50 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GUARANTEE</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(Not to be used for Signature Guarantee)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned, a bank, broker, dealer, credit union, savings
    association or other entity which is a member in good standing
    of the Securities Transfer Agents Medallion Program or a bank,
    broker, dealer, credit union, savings association or other
    entity which is an &#147;Eligible Guarantor Institution,&#148;
    as such term is defined in
    <FONT style="white-space: nowrap">Rule&#160;17Ad-15</FONT>
    under the Securities Exchange Act of 1934, as amended (each of
    the foregoing constituting an &#147;Eligible Guarantor
    Institution&#148;), guarantees the delivery of the shares
    tendered hereby to the depositary, in proper form for transfer,
    or a confirmation that the shares tendered hereby have been
    delivered under the procedure for book-entry transfer set forth
    in the offer to purchase into the depositary&#146;s account at
    the book-entry transfer facility, together with a properly
    completed and duly executed letter of transmittal and any other
    required documents, all within three Nasdaq trading days of the
    date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Name of Firm:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Name of Firm:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Authorized
    Signature:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Authorized
    Signature:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Name:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Name:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Title:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Title:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Address:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Address:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Zip
    Code:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Zip
    Code:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Area
    Code and Telephone Number:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Area
    Code and Telephone Number:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Dated:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=227 length=0 --><FONT style="font-size: 10pt">Dated:
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 18pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=208 iwidth=227 length=180 --><FONT style="font-size: 10pt">&#160;,&#160;&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=208 iwidth=227 length=180 --><FONT style="font-size: 10pt">&#160;,&#160;&#160;
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><B>DO
    NOT SEND SHARE CERTIFICATES WITH THIS NOTICE OF GUARANTEED
    DELIVERY. SHARE  CERTIFICATES SHOULD BE SENT WITH YOUR LETTER OF
    TRANSMITTAL.</B>
</DIV>
</DIV><!-- End box 50 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(D)
<SEQUENCE>5
<FILENAME>v31477orexv99wxayx1yxdy.htm
<DESCRIPTION>EXHIBITI 99.(A)(1)(D)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxdy</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(1)(D)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Offer
    to Purchase for Cash<BR>
    Up to 116,666,665&#160;Shares of its Common Stock<BR>
    At a Purchase Price Not Greater Than $30.00<BR>
    Nor Less Than $27.50 Per Share<BR>
    by<BR>
    Expedia, Inc.</FONT></I></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 12pt">THE TENDER OFFER, PRORATION
    PERIOD AND WITHDRAWAL RIGHTS WILL<BR>
    EXPIRE AT 5:00&#160;P.M., NEW YORK CITY TIME, ON WEDNESDAY,
    AUGUST 8, 2007 UNLESS EXPEDIA EXTENDS THE TENDER
    OFFER.</FONT></I></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;29, 2007
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To Brokers, Dealers, Commercial Banks,
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trust&#160;Companies and Other Nominees:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia, Inc., a Delaware corporation (&#147;Expedia&#148; or
    &#147;we&#148;), is proposing to purchase for cash up to
    116,666,665&#160;shares of its common stock, par value $.001 per
    share (the &#147;shares&#148;), at a price not greater than
    $30.00 nor less than $27.50 per share, net to the seller in
    cash, without interest. The terms and conditions of the tender
    offer are set forth in our offer to purchase, dated
    June&#160;29, 2007, and the letter of transmittal, which
    together (and as each may be amended or supplemented from time
    to time) constitute the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will, upon the terms and subject to the conditions of the
    tender offer, determine a single per share price, not greater
    than $30.00 nor less than $27.50 per share (the &#147;Purchase
    Price&#148;), that we will pay for shares properly tendered and
    not properly withdrawn pursuant to the terms of the tender
    offer, taking into account the number of shares so tendered and
    the prices specified by tendering stockholders. We will select
    the lowest Purchase Price that will allow Expedia to purchase
    116,666,665&#160;shares, or such fewer number of shares as are
    properly tendered and not properly withdrawn, at prices not
    greater than $30.00 nor less than $27.50 per share, under the
    tender offer. All shares properly tendered before the expiration
    date (as specified in Section&#160;1 of the offer to purchase)
    at prices at or below the Purchase Price and not validly
    withdrawn will be purchased by Expedia at the Purchase Price,
    net to the seller in cash, without interest, upon the terms and
    subject to the conditions of the tender offer, including the
    &#147;odd lot,&#148; proration and conditional tender provisions
    thereof. See Section&#160;1 of the offer to purchase. Shares
    tendered at prices in excess of the Purchase Price and shares
    that Expedia does not accept for purchase because of proration
    or conditional tenders will be returned at Expedia&#146;s
    expense to the stockholders that tendered such shares, as
    promptly as practicable after the expiration date. Expedia
    expressly reserves the right, in its sole discretion, to
    purchase more than 116,666,665&#160;shares under the tender
    offer, subject to applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, at the expiration date more than 116,666,665&#160;shares (or
    such greater number of shares as Expedia may elect to purchase,
    subject to applicable law) are properly tendered at or below the
    Purchase Price and not properly withdrawn, we will buy shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    first, from all holders of &#147;odd lots&#148; (holders of less
    than 100&#160;shares) who properly tender all their shares at or
    below the Purchase Price and do not properly withdraw them
    before the expiration date;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    second, on a pro rata basis from all other stockholders who
    properly tender shares at or below the Purchase Price, other
    than stockholders who tender conditionally and whose conditions
    are not satisfied;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    third, only if necessary to permit us to purchase
    116,666,665&#160;shares (or such greater number of shares as we
    may elect to purchase, subject to applicable law) from holders
    who have tendered shares subject to the condition that we
    purchase a
</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    specified minimum number of the holder&#146;s shares if we
    purchase any of the holder&#146;s shares in the tender offer
    (for which the condition was not initially satisfied) at or
    below the Purchase Price by random lot, to the extent feasible.
    To be eligible for purchase by random lot, stockholders whose
    shares are conditionally tendered must have tendered all of
    their shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The tender offer is not conditioned on any minimum number of
    shares being tendered. The tender offer is, however, subject to
    other conditions, including the receipt of financing. See
    Section&#160;7 of the offer to purchase.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For your information and for forwarding to your clients for whom
    you hold shares registered in your name or in the name of your
    nominee, we are enclosing the following documents:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Offer to Purchase, dated June&#160;29, 2007;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Letter to Clients, which you may send to your clients
    for whom you hold shares registered in your name or in the name
    of your nominee, with an Instruction&#160;Form provided for
    obtaining such clients&#146; instructions with regard to the
    tender offer;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Letter to the stockholders of Expedia, dated
    June&#160;29, 2007 from the Chief Executive Officer of Expedia;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Letter of Transmittal, for your use and for the
    information of your clients, together with accompanying
    instructions, Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9,</FONT>
    and Guidelines of the Internal Revenue Service for Certification
    of Taxpayer Identification Number on Substitute
    <FONT style="white-space: nowrap">Form&#160;W-9;&#160;and</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Notice of Guaranteed Delivery, to be used to accept the
    tender offer in the event that you are unable to deliver the
    share certificates, together with all other required documents,
    to the depositary before the expiration date, or if the
    procedure for book-entry transfer cannot be completed before the
    expiration date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WE URGE YOU TO CONTACT YOUR CLIENTS AS PROMPTLY AS POSSIBLE.
    THE TENDER OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS WILL
    EXPIRE AT 5:00&#160;P.M., NEW YORK CITY TIME, ON WEDNESDAY,
    AUGUST 8, 2007, UNLESS EXPEDIA EXTENDS THE TENDER OFFER.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No fees or commissions will be payable to brokers, dealers,
    commercial banks, trust companies or any person for soliciting
    tenders of shares under the tender offer other than fees paid to
    the information agent and the trustee for the Expedia Retirement
    Savings Plan, as described in the offer to purchase. We will,
    however, upon request, reimburse brokers, dealers, commercial
    banks and trust companies for reasonable and necessary costs and
    expenses incurred by them in forwarding the enclosed materials
    to their customers who are beneficial owners of shares held by
    them as a nominee or in a fiduciary capacity. We will pay or
    cause to be paid any stock transfer taxes applicable to its
    purchase of shares pursuant to the tender offer, except as
    otherwise provided in the offer to purchase and letter of
    transmittal (see Instruction&#160;9 of the letter of
    transmittal). No broker, dealer, bank, trust company or
    fiduciary shall be deemed to be either our agent, the
    depositary, or the information agent for purposes of the tender
    offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For shares to be properly tendered pursuant to the tender offer,
    the depositary must timely receive (1)&#160;the share
    certificates or confirmation of receipt of such shares under the
    procedure for book-entry transfer, together with a properly
    completed and duly executed letter of transmittal, including any
    required signature guarantees or an &#147;agent&#146;s
    message&#148; (as defined in the offer to purchase and the
    letter of transmittal) and any other documents required pursuant
    to the tender offer, or (2)&#160;the tendering stockholder must
    comply with the guaranteed delivery procedures, all in
    accordance with the instructions set forth in the offer to
    purchase and letter of transmittal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders (a)&#160;whose share certificates are not
    immediately available or who will be unable to deliver to the
    depositary the certificate(s) for the shares being tendered and
    all other required documents before the expiration date, or
    (b)&#160;who cannot complete the procedures for book-entry
    transfer before the expiration date, must tender their shares
    according to the procedure for guaranteed delivery set forth in
    Section&#160;3 of the offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither Expedia nor its Board of Directors makes any
    recommendation to any stockholder as to whether to tender or
    refrain from tendering all or any shares or as to the price or
    prices at which to tender. Holders of shares must make their own
    decision as to whether to tender shares and, if so, how many
    shares to tender and at which prices.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please address any inquiries you may have with respect to the
    tender offer to the information agent, MacKenzie Partners, Inc.,
    at its address set forth on the back cover page of the offer to
    purchase and telephone number set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may obtain additional copies of the enclosed material from
    MacKenzie Partners, Inc. by calling them at:
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT>
    or
    <FONT style="white-space: nowrap">(212)&#160;929-5500.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capitalized terms used but not defined herein have the meanings
    assigned to them in the offer to purchase and the letter of
    transmittal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Very truly yours,
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ Burke F. Norton
</DIV>

<DIV style="font-size: 2pt; margin-left: 45%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=0 -->

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For: Expedia, Inc.
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By: Burke F. Norton
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Enclosures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL
    CONSTITUTE YOU OR ANY OTHER PERSON AN AGENT OF EXPEDIA, THE
    INFORMATION AGENT, THE TRUSTEE FOR ANY EXPEDIA EMPLOYEE PLAN, OR
    THE DEPOSITARY OR ANY AFFILIATE OF THE FOREGOING, OR AUTHORIZE
    YOU OR ANY OTHER PERSON TO USE ANY DOCUMENT OR MAKE ANY
    STATEMENT ON BEHALF OF ANY OF THEM IN CONNECTION WITH THE TENDER
    OFFER OTHER THAN THE DOCUMENTS ENCLOSED HEREWITH AND THE
    STATEMENTS CONTAINED THEREIN.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(E)
<SEQUENCE>6
<FILENAME>v31477orexv99wxayx1yxey.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(E)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxey</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Exhibit (a)(1)(E)</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Offer
    to Purchase for Cash<BR>
    <FONT style="font-size: 14pt">Up to 116,666,665&#160;Shares of
    its Common Stock<BR>
    At a Purchase Price Not Greater Than $30.00<BR>
    Nor Less Than $27.50 Per Share<BR>
    by<BR>
    </FONT></FONT><FONT style="font-family: 'Times New Roman', Times">Expedia,
    Inc.<BR>
    <BR>
    <BR>
    </FONT></I></B>
</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 12pt">THE TENDER OFFER, PRORATION
    PERIOD AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00&#160;P.M., NEW
    YORK CITY TIME, ON WEDNESDAY, AUGUST&#160;8, 2007 UNLESS EXPEDIA
    EXTENDS THE TENDER OFFER.</FONT></I></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;29, 2007
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To Our Clients:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Enclosed for your consideration are the offer to purchase, dated
    June&#160;29, 2007, and the letter of transmittal, in connection
    with the tender offer by Expedia, Inc., a Delaware corporation
    (&#147;Expedia&#148;), to purchase up to 116,666,665&#160;shares
    of its common stock, par value $.001 per share (the
    &#147;shares&#148;). Pursuant to the offer to purchase and the
    letter of transmittal, which together (as each may be amended or
    supplemented from time to time) constitute the tender offer,
    Expedia will purchase the shares at a price, specified by
    tendering stockholders, not greater than $30.00 nor less than
    $27.50 per share, net to the seller in cash, without interest,
    upon the terms and subject to the conditions set forth in the
    offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expedia will, upon the terms and subject to the conditions of
    the tender offer, determine a single per share price, not
    greater than $30.00 nor less than $27.50 per share (the
    &#147;Purchase Price&#148;), that it will pay for shares
    properly tendered and not properly withdrawn pursuant to the
    terms of the tender offer, taking into account the number of
    shares so tendered and the prices specified by tendering
    stockholders. Expedia will select the lowest Purchase Price that
    will allow it to purchase 116,666,665&#160;shares, or such fewer
    number of shares as are properly tendered and not properly
    withdrawn, at prices not greater than $30.00 nor less than
    $27.50&#160;per share, under the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All shares properly tendered before the expiration date (as
    specified in Section&#160;1 of the offer to purchase) at prices
    at or below the Purchase Price and not properly withdrawn will
    be purchased by Expedia at the Purchase Price, net to the seller
    in cash, without interest, upon the terms and subject to the
    conditions of the tender offer, including the &#147;odd
    lot,&#148; proration and conditional tender provisions thereof.
    All shares tendered at prices in excess of the Purchase Price
    and all shares that Expedia does not accept for purchase because
    of proration or conditional tenders will be returned at
    Expedia&#146;s expense to the stockholders that tendered such
    shares as promptly as practicable after the expiration date.
    Expedia expressly reserves the right, in its sole discretion, to
    purchase more than 116,666,665&#160;shares under the tender
    offer, subject to applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are the owner of record of shares held for your account. As
    such, we are the only ones who can tender your shares, and then
    only pursuant to your instructions. We are sending you the
    letter of transmittal for your information only. You cannot use
    the letter of transmittal to tender shares we hold for your
    account. The letter of transmittal must be completed and
    executed by us, according to your instructions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Please instruct us as to whether you wish us to tender, on
    the terms and subject to the conditions of the tender offer, any
    or all of the shares we hold for your account, by completing and
    signing the Instruction&#160;Form enclosed herein.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please note carefully the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;You may tender shares at prices not greater than $30.00
    nor less than $27.50 per share as indicated in the enclosed
    Instruction&#160;Form, net to you in cash, without interest.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;You should consult with your broker
    <FONT style="white-space: nowrap">and/or</FONT> your
    tax advisor as to whether (and if so, in what manner) you should
    designate the priority in which you want your tendered shares to
    be purchased in the event of proration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;The tender offer is not conditioned upon any minimum
    number of shares being tendered. The tender offer is, however,
    subject to the receipt of financing and certain other conditions
    set forth in Section&#160;7 of the offer to purchase, which you
    should read carefully.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;The tender offer, the proration period and the
    withdrawal rights will expire at 5:00&#160;p.m., New York City
    time, on Wednesday, August&#160;8, 2007, unless Expedia extends
    the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;The tender offer is for 116,666,665&#160;shares,
    constituting approximately 42% of the shares of common stock
    outstanding as of June&#160;15, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Tendering stockholders who are registered stockholders
    or who tender their shares directly to The Bank of New York will
    not be obligated to pay any brokerage commissions or fees,
    solicitation fees, or (except as set forth in the offer to
    purchase and Instruction&#160;9 to the letter of transmittal)
    stock transfer taxes on Expedia&#146;s purchase of shares under
    the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;If you (i)&#160;own beneficially or of record an
    aggregate of fewer than 100&#160;shares, (ii)&#160;instruct us
    to tender on your behalf <B>ALL </B>of the shares you own at or
    below the Purchase Price before the expiration date and
    (iii)&#160;check the box captioned &#147;Odd Lots&#148; in the
    attached Instruction&#160;Form, then Expedia, upon the terms and
    subject to the conditions of the tender offer, will accept all
    of your tendered shares for purchase regardless of any proration
    that may be applied to the purchase of other shares properly
    tendered but not meeting the above conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;If you wish to condition your tender upon the purchase
    of all shares tendered or upon Expedia&#146;s purchase of a
    specified minimum number of the shares that you tender, you may
    elect to do so and thereby avoid (in full or in part) possible
    proration of your tender. Expedia&#146;s purchase of shares from
    all tenders which are so conditioned will be determined, to the
    extent necessary, by random lot. To elect such a condition
    complete the section captioned &#147;Conditional Tender&#148; in
    the attached Instruction&#160;Form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;If you wish to tender portions of your shares at
    different prices, you must complete a <B>SEPARATE
    </B>Instruction&#160;Form for each price at which you wish to
    tender each such portion of your shares. We must and will submit
    separate letters of transmittal on your behalf for each price
    you will accept.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;<B>The Board of Directors of Expedia has approved the
    tender offer. However, neither Expedia nor its Board of
    Directors makes any recommendation to stockholders as to whether
    to tender or refrain from tendering their shares for purchase,
    or as to the price or prices at which stockholders should choose
    to tender their shares. Stockholders must make their own
    decisions as to whether to tender their shares and, if so, how
    many shares to tender and the price or prices at which they
    should tender such shares. Expedia&#146;s directors and
    executive officers and Liberty Media Corporation have advised
    Expedia that they do not intend to tender any shares in the
    tender&#160;offer.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you wish to have us tender any or all of your shares, please
    instruct us to that effect by completing, executing, and
    returning to us the enclosed Instruction&#160;Form. A
    pre-addressed envelope is enclosed for your convenience. If you
    authorize us to tender your shares, we will tender all of the
    shares that we hold beneficially for your account unless you
    specify otherwise on the enclosed Instruction&#160;Form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please forward your completed Instruction&#160;Form to us in a
    timely manner to give us ample time to permit us to submit the
    tender on your behalf before the expiration date of the tender
    offer. The tender offer, proration period and withdrawal rights
    will expire at 5:00&#160;p.m., New York City time, on Wednesday,
    August&#160;8, 2007, unless Expedia extends the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described in the offer to purchase, if more than
    116,666,665&#160;shares, or such greater number of shares as
    Expedia may elect to purchase in accordance with applicable law,
    are properly tendered at or below the Purchase Price and not
    properly
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    withdrawn before the expiration date, then Expedia will accept
    shares for purchase at the Purchase Price in the following order
    of priority:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;First, Expedia will purchase all shares properly
    tendered at or below the Purchase Price and not properly
    withdrawn before the expiration date by any &#147;odd lot&#148;
    holder who:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;tenders ALL of the shares owned beneficially or of
    record by such odd lot holder at or below the Purchase Price
    before the expiration date (partial tenders will not qualify for
    this preference); AND
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;completes the section captioned &#147;Odd Lots&#148; on
    the letter of transmittal and, if applicable, on the notice of
    guaranteed delivery, without regard to any proration that would
    otherwise be applicable to such &#147;odd lot&#148; shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Second, after Expedia has purchased all properly
    tendered (and not validly withdrawn) &#147;odd lot&#148; shares,
    Expedia will purchase all other shares properly tendered at or
    below the Purchase Price before the expiration date (and not
    properly withdrawn) on a pro rata basis if necessary, subject to
    the conditional tender provisions described in Section&#160;6 of
    the offer to purchase, and with adjustments to avoid purchases
    of fractional shares, all as provided in the offer to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Third, and only if necessary to permit Expedia to
    purchase 116,666,665&#160;shares (or such greater number of
    shares as Expedia may elect to purchase subject to applicable
    law), Expedia will purchase properly tendered shares from
    holders who have tendered shares conditionally (and for whom the
    condition was not initially satisfied) by random lot to the
    extent feasible. To be eligible for purchase by random lot,
    stockholders whose shares are conditionally tendered (and for
    whom the condition was not initially satisfied) must have
    tendered all of their shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer is being made solely under the offer to
    purchase and the letter of transmittal and is being made to all
    record holders of shares. The tender offer is not being made to,
    nor will tenders be accepted from or on behalf of, holders of
    shares residing in any jurisdiction in which the making of the
    tender offer or acceptance thereof would not be in compliance
    with the securities, blue sky or other laws of such jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOUR PROMPT ACTION IS REQUESTED.&#160;&#160;PLEASE FORWARD
    YOUR COMPLETED INSTRUCTION FORM&#160;TO US IN AMPLE TIME TO
    PERMIT US TO SUBMIT THE TENDER ON YOUR BEHALF BEFORE THE
    EXPIRATION OF THE TENDER OFFER.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Instruction&#160;Form with Respect to</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Expedia, Inc.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Offer to Purchase for Cash</I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Up to 116,666,665&#160;Shares of its Common Stock</I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>At a Purchase Price Not Greater Than $30.00</I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Nor Less Than $27.50 Per Share</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned acknowledge(s) receipt of your letter in
    connection with the tender offer by Expedia, Inc., a Delaware
    corporation (&#147;Expedia&#148;), to purchase up to
    116,666,665&#160;shares of its common stock, par value $.001 per
    share (the &#147;shares&#148;), at a price specified by the
    undersigned and not greater than $30.00 nor less than $27.50 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, dated June&#160;29, 2007 and the letter of
    transmittal, which together (as each may be amended and
    supplemented from time to time) constitute the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned understands that Expedia will, upon the terms
    and subject to the conditions of the tender offer,
    (i)&#160;determine a single per share price not greater than
    $30.00 nor less than $27.50 per share (the &#147;Purchase
    Price&#148;) and (ii)&#160;purchase the shares properly tendered
    and not properly withdrawn under the tender offer, taking into
    account the number of shares so tendered and the prices
    specified by tendering stockholders. Expedia will select the
    lowest Purchase Price that will allow it to purchase
    116,666,665&#160;shares, or such lesser number of shares as are
    properly tendered and not properly withdrawn, at prices not
    greater than $30.00 nor less than $27.50 per share under the
    tender offer. Expedia will purchase all shares properly tendered
    at prices at or below the Purchase Price and not properly
    withdrawn at the Purchase Price, net to the seller in cash,
    without interest, upon the terms and subject to the conditions
    of the tender offer, including the odd lot, proration and
    conditional tender provisions described in the offer to
    purchase. All other shares, including shares tendered at prices
    in excess of the Purchase Price and shares that Expedia does not
    accept for purchase because of proration or conditional tenders
    will be returned at Expedia&#146;s expense to the stockholders
    that tendered such shares as promptly as practicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby instruct(s) you to tender to Expedia the
    number of shares indicated below or, if no number is indicated,
    all shares you hold for the account of the undersigned, at the
    price per share indicated below, in accordance with the terms
    and subject to the conditions of the tender offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NUMBER OF SHARES TO BE TENDERED BY YOU FOR THE ACCOUNT OF THE
    UNDERSIGNED:</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>&#160;SHARES*</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=504 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <B>* </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B> Unless you indicate otherwise, we will assume that you are
    instructing us to tender all of the shares that we hold for your
    account.</B></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES
    TENDERED AT PRICE DETERMINED PURSUANT TO THE TENDER OFFER<BR>
    (See Instruction&#160;5 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">
    The undersigned wants to maximize the chance of having Expedia
    purchase all shares the undersigned is tendering (subject to the
    possibility of proration). Accordingly, by checking this <B>ONE
    </B>box <B>INSTEAD OF ONE OF THE PRICE BOXES BELOW</B>, the
    undersigned hereby tenders shares and is willing to accept the
    purchase price determined by Expedia pursuant to the tender
    offer (the &#147;Purchase Price&#148;). This action could result
    in receiving a price per share of as low as $27.50.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#151;&#160;OR&#160;&#151;</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES
    TENDERED AT PRICE DETERMINED BY STOCKHOLDER<BR>
    (See Instruction&#160;5 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By checking <B>ONE </B>of the boxes below <B>INSTEAD OF THE BOX
    ABOVE</B>, the undersigned hereby tenders shares at the price
    checked. This action could result in none of the shares being
    purchased if the Purchase Price is less than the price checked
    below. <B>A stockholder who desires to tender shares at more
    than one price must complete a separate letter of transmittal
    for each price at which the stockholder tenders shares. </B>You
    cannot tender the same shares at more than one price, unless you
    have previously validly withdrawn those shares at a different
    price in accordance with Section&#160;4 of the offer to purchase.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Price (in
    Dollars) Per Share at Which Shares Are Being Tendered</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="29%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="29%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $27.50
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    28.50
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.50
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $27.75
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    28.75
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.75
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $28.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.00
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    30.00
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT>
    $28.25
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT face="Wingdings">&#111;</FONT> $
</TD>
<TD nowrap align="right" valign="top">
    29.25
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">You WILL
    NOT have validly tendered your shares<BR>
    unless you check ONE AND ONLY ONE BOX IN THIS PAGE.</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CHECK <I>ONE AND ONLY ONE </I>BOX.&#160;&#160;IF YOU CHECK
    MORE THAN ONE BOX, OR IF YOU DO NOT CHECK ANY BOX, YOU WILL HAVE
    FAILED TO VALIDLY TENDER ANY SHARES.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ODD
    LOTS<BR>
    (See Instruction&#160;6 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To be completed <B>only </B>if shares are being tendered by or
    on behalf of a person owning, beneficially or of record, an
    aggregate of fewer than 100&#160;shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    By checking this box, the undersigned represents that the
    undersigned owns beneficially or of record an aggregate of fewer
    than 100&#160;shares and is instructing the holder to tender all
    such shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In addition, the undersigned is tendering shares either
    (check ONE box):</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the Purchase Price, which will be determined by Expedia in
    accordance with the terms of the tender offer (persons checking
    this box should check the first box on the previous page, under
    the heading &#147;Shares Tendered at Price Determined Pursuant
    to the Tender Offer&#148;); OR
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;
</TD>
    <TD align="left">    at the price per share indicated on the previous page under
    &#147;Price (in Dollars) Per Share at Which Shares Are Being
    Tendered.&#148;
</TD>
</TR>

</TABLE>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=504 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONDITIONAL
    TENDER<BR>
    (See Instruction&#160;11 of the letter of transmittal)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A tendering stockholder may condition such stockholder&#146;s
    tender of any shares upon the purchase by Expedia of a specified
    minimum number of the shares such stockholder tenders, as
    described in Section&#160;6 of the offer to purchase. Unless
    Expedia purchases at least the minimum number of shares you
    indicate below pursuant to the terms of the tender offer,
    Expedia will not purchase any of the shares tendered below. It
    is the tendering stockholder&#146;s responsibility to calculate
    that minimum number, and each stockholder should consult his or
    her own tax advisor in doing so. Unless you check the box
    immediately below and specify, in the space provided, a minimum
    number of shares that Expedia must purchase if Expedia purchases
    any shares, Expedia will deem your tender unconditional.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The minimum number of shares that Expedia must purchase if
    Expedia purchases any shares, is:
    <U>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>&#160;shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, because of proration, Expedia will not purchase the minimum
    number of shares that you designate, Expedia may accept
    conditional tenders by random lot, if necessary. However, to be
    eligible for purchase by random lot, the tendering stockholder
    must have tendered all of his or her shares. To certify that you
    are tendering all of the shares you own, check the box below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT face="Wingdings">&#111;</FONT>&#160;</TD>
    <TD align="left">
    The tendered shares represent all shares held by the undersigned.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE METHOD OF DELIVERY OF THIS DOCUMENT IS AT THE OPTION AND
    RISK OF THE TENDERING STOCKHOLDER. IF DELIVERY IS BY MAIL, WE
    RECOMMEND REGISTERED MAIL WITH RETURN RECEIPT REQUESTED,
    PROPERLY INSURED. IN ALL CASES, PLEASE ALLOW SUFFICIENT TIME TO
    ASSURE DELIVERY.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">&#151;&#160;PLEASE
    SIGN ON THE NEXT PAGE&#160;&#151;
    </FONT>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURE</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Please Print</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Signature(s):&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=426 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Names(s):&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=436 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="44%"></TD>
    <TD width="56%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Taxpayer Identification or
    Social Security Number:&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=268 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Address(es):&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=427 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (include zip code)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="28%"></TD>
    <TD width="72%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Area Code&#160;&#038; Phone
    Number(s):&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=345 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <font style="white-space: nowrap">Date:&#160;
    </font></TD>
    <TD valign="bottom" align="left">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=125 iwidth=456 length=0 -->
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(F)
<SEQUENCE>7
<FILENAME>v31477orexv99wxayx1yxfy.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(F)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxfy</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(F)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>IMMEDIATE ATTENTION REQUIRED</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June 29, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Re: Expedia, Inc. Tender Offer</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Expedia Retirement Savings Plan Participant:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
116,666,665 shares of its common stock, par value $.001 per share (the &#147;Shares&#148;), at a price not
greater than $30.00 nor less than $27.50 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. <B>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, August 3, 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.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 June 29, 2007 (the &#147;Offer to
Purchase&#148;), enclosed with this letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>BACKGROUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia, Inc. (&#147;Expedia&#148;) has made an Offer to its stockholders to tender up to 116,666,665
shares of its common stock, par value $.001 per share, for purchase by Expedia at a price not
greater than $30.00 nor less than $27.50 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 116,666,665 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Offer extends to the Shares held by the Plan. As of June&nbsp;19, 2007, the Plan had
approximately 75,946 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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shares attributable to participant accounts for which it does not receive timely instructions. <B>If
you do not 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.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>LIMITATIONS ON FOLLOWING YOUR DIRECTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the prevailing market price is greater than the maximum tender
price offered by Expedia ($30.00 per Share), notwithstanding your
direction to tender Shares in the Offer, the Shares will not be
tendered.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the prevailing market price is lower than the price at which
you direct Shares be tendered, notwithstanding the lower closing
market price, Fidelity will follow your direction both as to
percentage of Shares to tender and as to the price at which such
Shares are tendered.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the prevailing market price is greater than the price at which
you direct the Shares be tendered but within the range of $27.50
to $30.00, Fidelity will follow your direction regarding the
percentage of Shares to be tendered, but will increase the price
at which such Shares are to be tendered to the lowest tender price
that is not less than prevailing market price.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the prevailing market price is within the range of $27.50 to
$30.00, for all shares directed to be tendered at the &#147;per Share
purchase price to be determined pursuant to the tender offer&#148;,
Fidelity will tender such Shares at the lowest tender price that
is not less than the prevailing market price.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>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.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CONFIDENTIALITY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROCEDURE FOR DIRECTING TRUSTEE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 June&nbsp;19, 2007. However, for purposes of the final tabulation, Fidelity will apply
your instructions to the number of Shares attributable to your account as of August 3, 2007, or
if the Offer is extended, three business days prior to the expiration date of the Offer, if
feasible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To properly complete your Direction Form, you must do the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the face of the Direction Form, check Box 1 or 2. CHECK ONLY ONE BOX:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 $27.50 or as high as $30.00. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date and sign the Direction Form in the space provided.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, August 3,
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. Directions via facsimile will not be
accepted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your direction will be deemed irrevocable unless withdrawn by 4:00 p.m., New York City time,
on Friday, August 3, 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.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia will then buy all Shares, up to 116,666,665, that were properly tendered and not
properly withdrawn in the Offer. If there is an excess of Shares tendered, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>EFFECT OF TENDER ON YOUR ACCOUNT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>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 August 3, 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. </B>(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)&nbsp;835-5095 to obtain updated information on
expiration dates, deadlines and Stock Fund freezes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>INVESTMENT OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SHARES OUTSIDE THE PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you hold Shares outside of the Plan, you will receive, under separate cover, Offer
materials to be used to tender those Shares. <B>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.</B>
Likewise, the tender of Shares attributable to your individual account under the Plan will not be
effective with respect to 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FURTHER INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you require additional information concerning the procedure to tender Shares attributable
to your individual account under the Plan, please contact Fidelity at (800)&nbsp;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)&nbsp;322-2885.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 69%; margin-top: 6pt">Sincerely,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 69%; margin-top: 6pt">Fidelity Management Trust Company
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)(G)
<SEQUENCE>8
<FILENAME>v31477orexv99wxayx1yxgy.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(G)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx1yxgy</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(G)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIRECTION FORM<BR>
EXPEDIA, INC. TENDER OFFER<BR>
BEFORE COMPLETING THIS FORM, PLEASE READ CAREFULLY THE<BR>
ACCOMPANYING OFFER TO PURCHASE AND ALL OTHER ENCLOSED MATERIALS.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PLEASE NOTE THAT IF YOU DO NOT SEND IN A PROPERLY COMPLETED, SIGNED DIRECTION FORM, OR IF SUCH
DIRECTION FORM IS NOT RECEIVED BY 4:00 P.M., NEW YORK CITY TIME ON FRIDAY, AUGUST 3, 2007, UNLESS
THE TENDER OFFER IS EXTENDED, THE SHARES ATTRIBUTABLE TO YOUR ACCOUNT UNDER THE PLAN WILL NOT BE
TENDERED IN ACCORDANCE WITH THE TENDER OFFER, UNLESS OTHERWISE REQUIRED BY LAW.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fidelity Management Trust Company (&#147;Fidelity&#148;) makes no recommendation to any participant in the
Expedia Retirement Savings Plan (the &#147;Plan&#148;) as to whether to tender or not, or at which prices.
Your direction to Fidelity will be kept confidential.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Direction Form, if properly signed, completed and received by Fidelity&#146;s tender offer
tabulator in a timely manner, will supersede any previous Direction Form.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Please Print Name</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>As of June&nbsp;19, 2007, the number of Shares attributable to your account in the Plan is shown to the
right of your address.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In
connection with the Offer to Purchase made by Expedia, Inc., dated
June 29, 2007, I hereby
instruct Fidelity to tender the shares attributable to my account under the Plan as of August 3,
2007, unless a later deadline is announced, as follows (check only one box and complete):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(CHECK BOX ONE OR TWO)
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please refrain from tendering and continue to HOLD all Shares attributable to my individual account under the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please TENDER Shares attributable to my individual account under the Plan in the percentage indicated below for
each of the prices provided. A blank space before a given price will be taken to mean that no shares attributable
to my account are to be tendered at that price. FILL IN THE TABLE BELOW ONLY IF YOU HAVE CHECKED BOX 2.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Percentage of Shares to be Tendered (The total of all percentages must be less than or equal to
100%. If the total is less than 100%, you will be deemed to have directed Fidelity NOT to tender
the remaining percentage.)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $27.50
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $28.25
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $29.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">% at $29.75</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $27.75
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $28.50
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $29.25
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">% at $30.00</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $28.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $28.75
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">% at $29.50
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">% at TBD**</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>By entering a percentage on the % line at TBD, the undersigned is willing to accept the Purchase
Price resulting from the Dutch Auction, for the percentage of shares elected. This could result in
receiving a price per share as low as $27.50 or as high as $30.00 per share.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(5)(A)
<SEQUENCE>9
<FILENAME>v31477orexv99wxayx5yxay.htm
<DESCRIPTION>EXHIBIT 99.(A)(5)(A)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx5yxay</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(5)(A)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares.
The offer is made solely by the offer to purchase, dated June&nbsp;29, 2007, and the related letter of
transmittal, and any amendments or supplements thereto. The tender offer is not being made to, nor
will tenders be accepted from or on behalf of, holders of shares in any jurisdiction in which the
making of the tender offer or the acceptance of any tender of shares would not be in compliance
with the laws of such jurisdiction.</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Notice of Offer to Purchase for Cash<BR>
by<BR>
Expedia, Inc.<BR>
Up to 116,666,665 Shares of its Common Stock<BR>
At a Purchase Price Not Greater Than $30.00<BR>
Nor Less Than $27.50 Per Share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia,
Inc., a Delaware corporation (&#147;Expedia&#148;), is offering to purchase for cash up to
116,666,665 shares of its common stock, par value $.001 per share (the &#147;shares&#148;), upon the terms
and subject to the conditions set forth in the offer to purchase,
dated June&nbsp;29, 2007, and in the
related letter of transmittal, as they may be amended or supplemented from time to time. Expedia
is inviting its stockholders to tender their shares at prices specified by the tendering
stockholder that are not greater than $30.00 nor less than $27.50 per share, net to the seller in
cash, without interest, upon the terms and subject to the conditions of the tender offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The tender offer is not conditioned on any minimum number of shares being tendered. The
tender offer is, however, subject to Expedia&#146;s receipt of financing and other conditions set forth
in the offer to purchase and the related letter of transmittal. THE TENDER OFFER, PRORATION PERIOD
AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON WEDNESDAY, AUGUST 8, 2007,
UNLESS EXPEDIA EXTENDS THE TENDER OFFER.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors of Expedia has approved the tender offer. However, neither Expedia nor
its Board of Directors makes any recommendation to its stockholders as to whether to tender or
refrain from tendering their shares or as to the price or prices at which stockholders may choose
to tender their shares. Stockholders must make their own decisions as to whether to tender their
shares and, if so, how many shares to tender and the price or prices at which to tender their
shares. In so doing, stockholders should read carefully the information in the offer to purchase
and in the related letter of transmittal, including Expedia&#146;s reasons for making the tender offer.
Expedia&#146;s directors and executive officers and Liberty Media Corporation have advised Expedia that
they do not intend to tender any shares in the tender offer.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia will, upon the terms and subject to the conditions of the tender offer, determine the
single per share price, not greater than $30.00 nor less than $27.50 per share, net to the seller
in cash, without interest, that it will pay for shares properly tendered and not properly withdrawn
in the tender offer, taking into account the total number of shares so tendered and the prices
specified by the tendering stockholders. Expedia will select the lowest purchase price that will
allow Expedia to purchase 116,666,665 shares, or such fewer number of shares as are properly
tendered and not properly withdrawn, at prices not greater than $30.00 nor less than $27.50 per
share. Expedia will purchase at the purchase price all shares properly tendered at prices at or
below the purchase price and not properly withdrawn, on the terms and subject to the conditions of
the tender offer, including the &#147;odd lot,&#148; proration and conditional tender provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under no circumstances will Expedia pay interest on the purchase price for the shares,
regardless of any delay in making payment. Expedia will acquire all shares acquired in the tender
offer at the purchase price regardless of whether the stockholder tendered at a lower price. The
term &#147;expiration date&#148; means 5:00 p.m., New York City time, on Wednesday, August&nbsp;8, 2007, unless
and until Expedia, in its sole discretion, shall have extended the period of time during which the
tender offer will remain open, in which event the term &#147;expiration date&#148; shall refer to the latest
time and date at which the tender offer, as so extended by Expedia, shall expire. Expedia
expressly reserves
the right, in its sole discretion, to purchase more than 116,666,665
shares pursuant to the tender
offer, subject to applicable law.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the tender offer, Expedia will be deemed to have accepted for payment, and
therefore purchased, shares properly tendered at or below the purchase price and not properly
withdrawn, subject to the odd lot, proration and conditional tender provisions of the tender offer,
only when, as and if Expedia gives oral or written notice to The Bank of New York, the depositary
for the tender offer, of its acceptance of the shares for payment under the tender offer. Expedia
will make payment for shares tendered and accepted for payment under the tender offer only after
the depositary timely receives share certificates or a timely confirmation of the book-entry
transfer of the shares into the depositary&#146;s account at the book-entry transfer facility, a
properly completed and duly executed letter of transmittal, or an &#147;agent&#146;s message&#148; (as defined in
the offer to purchase) in the case of a book-entry transfer, and any other documents required by
the letter of transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of the tender offer, if more than 116,666,665
shares, or such greater number of shares as Expedia may elect to purchase, subject to applicable
law, have been properly tendered, and not properly withdrawn, prior to the expiration date at
prices at or below the purchase price, Expedia will purchase properly tendered shares on the
following basis:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>first, from all holders of &#147;odd lots&#148; (holders of less than 100 shares) who properly
tender all their shares at or below the purchase price selected by Expedia and do not
properly withdraw them before the expiration date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>second, on a pro rata basis from all other stockholders who properly tender shares at or
below the purchase price selected by Expedia, other than stockholders who tender
conditionally and whose conditions are not satisfied; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>third, only if necessary to permit Expedia to purchase 116,666,665 shares (or such
greater number of shares as Expedia may elect to purchase, subject to applicable law) from
holders who have tendered shares at or below the purchase price subject to the condition
that Expedia purchase a specified minimum number of the holder&#146;s shares if Expedia
purchases any of the holder&#146;s shares in the tender offer (for which the condition was not
initially satisfied) by random lot, to the extent feasible. To be eligible for purchase by
random lot, stockholders that conditionally tender their shares must have tendered all of
their shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia will return to the tendering stockholders shares that it does not purchase in the
tender offer at Expedia&#146;s expense as promptly as practicable after the expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia expressly reserves
the right, in its sole discretion, at any time and from time to
time, to extend the period of time during which the tender offer is open and thereby delay
acceptance for payment of, and payment for, any shares by giving oral or written notice of the
extension to the depositary and making a public announcement of the extension no later than 9:00
a.m., New York City time, on the next business day after the last previously scheduled or announced
expiration date. During any such extension, all shares previously tendered and not properly
withdrawn will remain subject to the tender offer and to the right of a tendering stockholder to
withdraw such stockholder&#146;s shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia believes that the tender offer,
together with an increase in Expedia&#146;s indebtedness, is a
prudent use of its financial resources given its business profile,
cash flow, capital structure, assets, the
current market price of its shares and the terms on which corporate credit currently is generally
available in the credit markets, and that investing in its own shares is an attractive use of
capital and an efficient and effective means to provide value to its stockholders. The tender offer represents
the opportunity for Expedia to return cash to stockholders who elect to tender their shares, while
at the same time increasing non-tendering stockholders&#146; proportionate interest in Expedia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, a stockholder will be subject to U.S. federal income taxation when the stockholder
receives cash from Expedia in exchange for the shares that the stockholder tenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders may withdraw shares tendered under the tender offer at any time prior to the
expiration date. Thereafter, such tenders are irrevocable, except that they may be withdrawn after
12:00 Midnight, New York City time, on August&nbsp;24, 2007 unless theretofore accepted for payment as
provided in the offer to purchase. For a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">withdrawal to be effective, The Bank of New York must
timely receive a written or facsimile transmission notice of withdrawal at its address set forth on
the back cover page of the offer to purchase. Any such notice of withdrawal must specify the name
of the tendering stockholder, the number of shares that the stockholder wishes to withdraw and the
name of the registered holder of the shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the share certificates to be withdrawn have been delivered or otherwise identified to the
depositary, then, be-fore the release of the share certificates, the serial numbers shown on the
share certificates must be submitted to the depositary and the signature(s) on the notice of
withdrawal must be guaranteed by an &#147;eligible guarantor institution&#148; (as defined in the offer to
purchase), unless the shares have been tendered for the account of an eligible guarantor
institution. If shares have been tendered pursuant to the procedure for book-entry transfer set
forth in the offer to purchase, any notice of withdrawal also must specify the name and the number
of the account at the book-entry transfer facility to be credited with the withdrawn shares and
must otherwise comply with the book-entry transfer facility&#146;s procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia will determine all questions as to the form and validity, including the time of
receipt, of any notice of withdrawal, in its sole discretion, and such determination will be final
and binding. None of Expedia, The Bank of New York, as the depositary, MacKenzie Partners, Inc.,
as the information agent, or any other person will be under any duty to give notification of any
defects or irregularities in any tender or notice of withdrawal or incur any liability for failure
to give any such notification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information required to be disclosed by Rule&nbsp;13e-4(d)(1) under the Securities Exchange Act
of 1934, as amended, is contained in the offer to purchase and is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are mailing promptly the offer to purchase and the related letter of transmittal to record
holders of shares and will furnish the offer to purchase and letter of transmittal to brokers,
dealers, commercial banks, trust companies and similar persons whose names, or the names of whose
nominees, appear on Expedia&#146;s stockholder list or, if applicable, that are listed as participants
in a clearing agency&#146;s security position listing for subsequent transmittal to beneficial owners of
shares. Holders of exercisable warrants for shares and holders of Expedia&#146;s preferred stock may
exercise such warrants or convert such preferred stock in accordance with their respective terms,
and tender the shares received upon exercise or conversion in accordance with the tender offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The offer to purchase and the related letter of transmittal contain important information that
stockholders should read carefully before making any decision with respect to the tender offer.</B>
Stockholders may obtain additional copies of the offer to purchase and the letter of transmittal
from the information agent at the address and telephone number set forth below. The information
agent will promptly furnish to stockholders additional copies of these materials at Expedia&#146;s
expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please direct any questions or requests for assistance to the information agent at its
telephone number and address set forth below. Stockholders may also contact their broker, dealer,
commercial bank, trust company or nominee for assistance concerning the tender offer. To confirm
delivery of shares, please contact the depositary.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The Information Agent for the tender offer is:
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="v31477orv3147706.gif" alt="(MACKENZIE PARTNERS, INC. LOGO)"><BR>
105 Madison Avenue<BR>
New York, New York 10016<BR>
(212)&nbsp;929-5500 (call collect)<BR>
or<BR>
<B>Call Toll Free (800)&nbsp;322-2885</B><BR>

E-mail: proxy@mackenziepartners.com
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">June&nbsp;29, 2007

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(5)(B)
<SEQUENCE>10
<FILENAME>v31477orexv99wxayx5yxby.htm
<DESCRIPTION>EXHIBIT 99.(A)(5)(B)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx5yxby</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(5)(B)</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477orv3147700.gif" alt="(EXPEDIA LOGO)" ><B> </B>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Expedia,
    Inc.<BR>
    </FONT></I><FONT style="font-family: 'Times New Roman', Times">3150
    139th Avenue S.E.<BR>
    Bellevue, WA 98005<BR>
    Telephone:
    <FONT style="white-space: nowrap">(425)&#160;679-7200</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dara Khosrowshahi</I>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Chief Executive Officer</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    June&#160;29, 2007
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To Our Stockholders:
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described in the enclosed materials, Expedia, Inc.
    (&#147;Expedia&#148;) is offering to purchase up to
    116,666,665&#160;shares of its common stock, or such lesser
    number of shares as are properly tendered.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The price paid by Expedia will not be greater than $30.00 nor
    less than $27.50 per share, net to the seller in cash, without
    interest. Expedia is conducting the offer through a procedure
    commonly referred to as a &#147;Dutch auction&#148; tender
    offer. This procedure allows you to select the price within the
    $27.50 to $30.00 price range at which you are willing to sell
    your shares to Expedia. Alternatively, this procedure allows you
    to sell all or a portion of your shares to Expedia at the
    purchase price to be determined by Expedia in accordance with
    the terms of the tender offer. Choosing the latter alternative
    could result in your receipt of a price per share as low as
    $27.50. All shares that Expedia purchases under the tender offer
    will be purchased at the same price. You may tender all or only
    a portion of your shares upon the terms and subject to the
    conditions of the tender offer, including the odd lot, proration
    and conditional tender provisions.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon the number of shares tendered and the prices
    specified by the tendering stockholders, Expedia will determine
    the lowest single price (the &#147;Purchase Price&#148;) within
    the $27.50 to $30.00 range that will allow it to buy
    116,666,665&#160;shares, or such fewer number of shares as are
    properly tendered. Expedia will pay tendering stockholders the
    Purchase Price in cash, for all of the shares that are properly
    tendered at or below the Purchase Price, subject to possible
    proration and the provisions relating to the tender of odd lots
    and conditional tenders described in the enclosed offer to
    purchase. Any stockholder whose shares are properly tendered
    directly to The Bank of New York, the depositary in the tender
    offer, and thereafter purchased by Expedia pursuant to the
    tender offer, will receive the net aggregate Purchase Price in
    cash, without interest, as promptly as practicable after the
    expiration of the tender offer, thus avoiding the usual
    transaction costs associated with open market sales. If you hold
    shares through a broker or bank, you should consult your broker
    or bank to determine whether any transaction costs apply.
    Stockholders that own fewer than 100&#160;shares should note
    that the tender offer represents an opportunity for them to sell
    their shares without reduction for any odd lot discounts.
    Tendered shares that Expedia does not purchase will be returned
    to the tendering stockholder as promptly as practicable.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you do not wish to participate in the tender offer, you do
    not need to take any action.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We explain the terms and conditions of the tender offer in
    detail in the enclosed offer to purchase and the related letter
    of transmittal. <B>I encourage you to read these materials
    carefully before making any decision with respect to the tender
    offer. If you want to tender your shares, we explain the
    necessary steps in detail in the enclosed materials.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Directors of Expedia has approved the tender
    offer. However, neither Expedia nor its Board of Directors makes
    any recommendation to you as to whether you should tender or
    refrain from tendering your shares or as to the price or prices
    at which you may choose to tender your shares. You must make
    your own decision as to whether to tender your shares and, if
    so, how many shares to tender and the price or prices at which
    you wish to tender your shares. Expedia&#146;s directors and
    executive officers and Liberty Media Corporation have advised
    Expedia that they do not intend to tender any shares in the
    tender offer.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer will expire at 5:00&#160;p.m., New York City
    time, on Wednesday, August&#160;8, 2007, unless Expedia extends
    the tender offer. If you have any questions regarding the tender
    offer or need assistance in tendering your shares, please
    contact MacKenzie Partners, Inc., the information agent for the
    tender offer, at
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT>
    or
    <FONT style="white-space: nowrap">(212)&#160;929-5500.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477orv3147707.gif" alt="-s- Dara Khosrowshai" >
</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dara Khosrowshahi<BR>
    Chief Executive Officer
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(5)(D)
<SEQUENCE>11
<FILENAME>v31477orexv99wxayx5yxdy.htm
<DESCRIPTION>EXHIBIT 99.(A)(5)(D)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxayx5yxdy</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Exhibit (a)(5)(D)</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477orv3147700.gif" alt="(EXPEDIA LOGO)" ><B> </B>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Expedia,
    Inc.</FONT></I></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3150 139th Avenue S.E.</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Bellevue, WA 98005</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Telephone:
    <FONT style="white-space: nowrap">(425)&#160;679-7200</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Burke F. Norton</I>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Executive Vice President,</I>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General Counsel&#160;&#038; Secretary</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">June 29, 2007
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To Our Warrant and Series&#160;A Cumulative Convertible
    Preferred Stock Holders:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described in the enclosed materials, Expedia, Inc.
    (&#147;Expedia&#148;) is offering to purchase from its
    stockholders up to 116,666,665&#160;shares of its common stock,
    par value $.001 per share, or such lesser number of shares as
    are properly tendered, upon the terms and subject to the
    conditions set forth in the enclosed Offer to Purchase and the
    related Letter of Transmittal (which together, as they may be
    amended and supplemented from time to time, constitute the
    tender offer). On the terms and subject to the conditions of the
    tender offer, we will determine the single per share price, not
    greater than $27.50 nor less than $30.00 per share, net to the
    stockholder in cash. Expedia will select the lowest purchase
    price that will allow it to purchase 116,666,665&#160;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 tender offer will be acquired at the same
    purchase price regardless of whether the stockholder tendered at
    a lower price.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>No securities may be tendered into the tender offer other
    than shares of Expedia common stock. If you hold exercisable
    warrants for common stock (&#147;warrants&#148;), you may
    exercise such warrants in accordance with the terms of the
    applicable agreements governing your warrants and tender the
    shares received upon exercise in accordance with the tender
    offer. If you hold Expedia Series&#160;A Cumulative Convertible
    Preferred Stock (&#147;preferred stock&#148;), you may convert
    such preferred stock into Expedia common stock in accordance
    with the rights and preferences governing the preferred stock
    and tender the shares you receive in accordance with the tender
    offer. If you do not wish to participate in the tender offer,
    you do not need to take any action.</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We explain the terms and conditions of the tender offer in
    detail in the enclosed materials. We encourage you to read
    carefully these materials, the agreements governing your
    warrants
    <FONT style="white-space: nowrap">and/or</FONT> the
    rights and preferences governing your preferred stock before
    making any decision with respect to the tender offer.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tender offer will expire at 5:00&#160;p.m., New York City
    time, on Wednesday, August 8, 2007, unless Expedia extends the
    tender offer. If you require additional information concerning
    procedures to exercise warrants or convert preferred stock, or
    concerning the terms and conditions of the tender offer, please
    call MacKenzie Partners, Inc., the Information Agent for the
    tender offer, toll free at
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT>
    or call collect at
    <FONT style="white-space: nowrap">(212)&#160;929-5500.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 47%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v31477ornorton.gif" alt="-s- BURKE F. NORTON" >
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Burke F. Norton
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Executive Vice President,
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    General Counsel&#160;&#038; Secretary
</DIV>

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<DOCUMENT>
<TYPE>EX-99.(D)(23)
<SEQUENCE>12
<FILENAME>v31477orexv99wxdyx23y.htm
<DESCRIPTION>EXHIBIT 99.(D)(23)
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (d)(23)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Expedia Retirement Savings Plan</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(As Amended and Restated Effective January&nbsp;1, 2006)

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE I DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE II SERVICE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE III ELIGIBILITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE IV CONTRIBUTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE V VESTING AND FORFEITURES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VI ALLOCATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VII DISTRIBUTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VIII MINIMUM DISTRIBUTION REQUIREMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE IX IN-SERVICE WITHDRAWALS AND LOANS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE X VOTING AND OTHER RIGHTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XI PAYMENT OF BENEFITS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XII ADMINISTRATION OF THE PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XIII FUNDING OF THE PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XIV AMENDMENT OF THE PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XV TERMINATION OF THE PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XVI PROVISIONS RELATING TO TOP-HEAVY PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XVII MISCELLANEOUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE XVIII ADOPTION OF THE PLAN BY AFFILIATE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">APPENDIX A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADOPTING EMPLOYERS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">APPENDIX B&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SPECIAL VESTING PROVISIONS

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PREFACE</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the purpose of the Expedia Retirement Savings Plan (the &#147;Plan&#148;) to provide a means of
providing retirement and other benefits to employees of Expedia, Inc. (the &#147;Company&#148;), and certain
related companies and to provide employees with a means to save for their retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the Plan were originally effective as of August&nbsp;9, 2005 on the date of the
pro rata distribution (or spin-off) (the &#147;Distribution Date&#148;) of all of the outstanding shares of
common stock of Expedia, Inc., a Delaware Corporation (&#147;Expedia Parent&#148;), to the stockholders of
IAC/InterActiveCorp. Immediately prior to the Distribution Date, the Company was a wholly owned
subsidiary of IAC/InterActiveCorp. As a result of the foregoing corporate transactions and as soon
as practicable after the Distribution Date, the assets and liabilities of the account balances in
the IAC/InterActiveCorp Retirement Savings Plan (&#147;Prior Plan&#148;) attributable to the individuals who,
as of the day immediately prior to the Distribution Date, had been active and former employees of
Expedia Parent and its subsidiaries or designated employees of IAC/InterActiveCorp who will become
Employees of the Company or its Affiliates, will be transferred to the Plan in a trust-to-trust
transfer of assets and liabilities (&#147;Trust-to-Trust Transfer&#148;) in accordance with the requirements
of Treasury Regulation&nbsp;Section&nbsp;1.414(1).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan herein set forth and its related Trust are hereby designated as constituting parts of
a plan and trust intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as
amended, and to be exempt from federal income taxation under Section 501(a) of the Internal Revenue
Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan, which is a profit-sharing plan, continues to provide for an Internal Revenue Code
Section 401(k) feature. The Plan is intended to be an &#147;eligible individual account plan&#148; within
the meaning of Section&nbsp;407(d)(3) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;ERISA&#148;), which may invest all or a portion of its assets in &#147;qualifying employer securities,&#148; as
defined in Section&nbsp;407(d)(5) of ERISA.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEFINITIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following words and terms as used in the Plan shall have the meanings set forth below,
unless a different meaning is clearly required by the context:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <U><B>Account</B></U>. The total of sub-accounts maintained by the Trustee to record the
interest of a Member in the Plan consisting of the 401(k) Account, Catch-Up Contribution Account,
Matching Contribution Account, Profit Sharing Account, QNEC Account, After-Tax Account, and if
applicable, Rollover Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <U><B>Accrued Benefit</B></U>. The net value of all assets, earned or accrued, allocated to a
Member&#146;s Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <U><B>Adopting Employer</B></U>. An entity that is an Eligible Company and assumes the
obligations of the Plan and the Trust in accordance with its by-laws (or similar governing
documents) and applicable law and with the consent of the Company. If the Plan is only adopted by
the Adopting Employer with regard to certain divisions, only those divisions shall be deemed the
Adopting Employer and the other divisions of such Adopting Employer shall not be deemed to be an
Adopting Employer and shall not assume the obligations of the Plan hereunder. Adopting Employers
are listed in Appendix&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <U><B>Affiliate</B></U>. An entity or trade or business presently or in the future existing,
which (a)&nbsp;is a member of the controlled group which includes either the Company or an Adopting
Employer, as applicable, or is under common control with the Company or an Adopting Employer, as
applicable, as such terms are defined in Code Section&nbsp;414, but only during such period as such
entities or trades or businesses are members of the controlled group which includes the Company or
an Adopting Employer, as applicable, or are under common control with the Company or an Adopting
Employer; or (b)&nbsp;is required to be aggregated with the Company or an Adopting Employer pursuant to
Code Section 414(m) or (o), but only during the period the entity or trade or business is required
to be so aggregated. Unless the context indicates otherwise, Affiliate shall mean an Affiliate of
the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <U><B>After-Tax Account</B></U>. The Member&#146;s sub-account with respect to after-tax
contributions made to a Historic Plan prior to the merger of the Historic Plan into the Plan and
with respect to After-Tax Contributions made to the Plan and earnings and losses thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <U><B>After-Tax Contribution</B></U>. A contribution made pursuant to Section&nbsp;4.3 of the Plan
or a predecessor provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. <U><B>Beneficiary</B></U>. The individual or trust designated by a Member, in a manner
acceptable to the Committee, to receive benefits payable under the Plan in the event of the
Member&#146;s death; provided that, if the Member is married at the time of his death, his Spouse shall
be the Beneficiary, unless such Spouse does not survive him or a different Beneficiary is
designated by the Member and consented to by the Spouse in accordance with the provisions of
Section&nbsp;7.5. If no Beneficiary is designated by the Member, then:
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Member&#146;s Beneficiary shall be the Member&#146;s Spouse; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;if the Member is not married, but has designated an individual as the Member&#146;s domestic
partner, in such manner as prescribed by the Committee, and has not revoked such designation, the
Member&#146;s Beneficiary shall be the Member&#146;s designated domestic partner; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;if the Member has neither a Spouse nor a designated domestic partner, the Member&#146;s
Beneficiary shall be the Member&#146;s estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon the valid designation of a new Beneficiary, all Beneficiary designations previously filed
shall be canceled. The Committee shall be entitled to rely on the last beneficiary designation
form filed by the Member and accepted by the Committee prior to his death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. <U><B>Benefit Starting Date</B></U>. The first day for which an amount is payable (i.e., the
date on which all events have occurred which entitle the Member to such benefits) without regard to
administrative delay and not the actual payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. <U><B>Board</B></U>. The Board of Directors of the Company or a duly authorized committee
thereof, or their respective delegates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. <U><B>Catch-Up Contribution</B></U>. A contribution made pursuant to Section&nbsp;4.2 of the Plan
or a predecessor provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. <U><B>Catch-Up Contribution Account</B></U>. The Member&#146;s sub-account with respect to
Catch-Up Contributions to a Historic Plan prior to the merger of the Historic Plan into the Plan
and with respect to Catch-Up Contributions made to the Plan, and earnings and losses thereon,
pursuant to Section&nbsp;4.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. <U><B>Childrearing Absence</B></U>. Any period of absence of an Employee by reason of the
pregnancy of such Employee, by reason of the birth of a child of such Employee, by reason of the
placement of a child with such Employee in connection with the adoption of such child by such
Employee, or for purposes of caring for such child for a period beginning immediately following
such birth or placement. Childrearing Absences shall be granted in accordance with such policies
as may, from time to time, be adopted by the Employer, and none of the provisions of the Plan shall
be construed to afford any Employee any rights other than in accordance with such policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. <U><B>Code</B></U>. The Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. <U><B>Committee</B></U>. The committee appointed by the Company for the purpose of
administering the Plan on its behalf as set forth in Article&nbsp;XII.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15. <U><B>Company</B></U>. Expedia, Inc., a Washington Corporation, and any successor by merger,
consolidation, purchase or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16. <U><B>Compensation</B></U>. Except as specifically set forth below, all cash compensation for
services paid by an Employer to a Participant that is to be included on the Participant&#146;s W-2
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for such year including salary, bonuses, commissions and overtime pay. Compensation shall
also include contributions made by an Employer on behalf of a Participant pursuant to a salary
reduction agreement between an Employer and a Participant under Code Sections&nbsp;125, 132(f), 401(k)
and 414(v). Compensation shall exclude: (1)&nbsp;all noncash compensation and any contributions by the
Employer to, or benefits paid under, the Plan or any other pension, profit-sharing, fringe benefit,
group insurance (including, without limitation, life insurance or health insurance) or other
employee welfare plan (including, without limitation, severance or disability) or any deferred
compensation arrangement (other than any salary reductions under Code Sections&nbsp;125, 132(f) and
401(k)); (2)&nbsp;amounts paid under any relocation plan of the Employer; (3)&nbsp;income on the exercise of
a nonstatutory stock option or any other type of stock award; (4)&nbsp;income on the disqualifying
disposition of shares of stock acquired under any stock option plan or stock purchase plan of the
Employer or any other type of stock award; (5)&nbsp;all items of imputed income; (6)&nbsp;amounts paid
pursuant to any long term compensation plan maintained by the Employer; (7)&nbsp;cash prizes and awards;
(8)&nbsp;automobile allowances; (9)&nbsp;meal allowances; and (10)&nbsp;travel expenses and allowances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation for any Plan Year shall not exceed two hundred ten thousand dollars ($220,000),
as adjusted for cost-of-living increases, in accordance with Code Section&nbsp;401(a)(17). With respect
to any short Plan Year, Compensation shall not exceed the foregoing limit multiplied by a fraction,
the numerator of which is the number of months in the short Plan Year and the denominator of which
is twelve (12).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17. <U><B>Disability</B></U>. A Participant will be deemed to have a Disability for purposes of
the Plan if he becomes eligible for and receives benefits under the Employer&#146;s long term disability
plan for as long as such plan provides them, and otherwise complies with the regulations under Code
Section&nbsp;401(k).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. <U><B>Distribution Date</B></U>. August&nbsp;9, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19. <U><B>Effective Date</B></U>. The original effective date was the Distribution Date. This
amendment and restatement is effective January&nbsp;1, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20. <U><B>Elective Deferrals</B></U>. The sum of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any salary reduction contribution under a qualified cash or deferred arrangement (as
defined in Code Section&nbsp;401(k)) including contributions made pursuant to Code Section&nbsp;414(v), to
the extent not includible in gross income for the taxable year under Code Section&nbsp;402(e)(3)
(determined without regard to the limitation set forth in Code Section&nbsp;402(g));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any salary reduction contribution to the extent not includible in gross income for the
taxable year under Code Section&nbsp;402(h)(1)(B) (determined without regard to the limitation set forth
in Code Section&nbsp;402(g)); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any salary reduction contribution to purchase an annuity contract under Code Section
403(b) under a salary reduction agreement (within the meaning of Code Section&nbsp;3121(a)(5)(D)),
provided that the limitation set forth in Section&nbsp;4.1(g) shall be adjusted for any such
contribution to the extent set forth in Code Sections&nbsp;402(g)(4) and (8).
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21. <U><B>Eligible Company</B></U>. All corporations and other entities presently or hereafter
existing, which are designated by the Company as being eligible to be an Employer under the Plan,
but only during the period any such corporation or other entity is so eligible, without regard to
whether it is an Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22. <U><B>Eligible Employee</B></U>. Any Employee of an Employer other than an Employee whose
employment is governed by the terms of a collective bargaining agreement between Employee
representatives (within the meaning of Code Section&nbsp;7701(a)(46)) and the Employer (except to the
extent that the collective bargaining agreement expressly provides for the inclusion of such
Employees), a Leased Employee or a nonresident alien who receives no earned income (within the
meaning of Code Section&nbsp;911(d)(2)) from the Employer which constitutes income from sources within
the United States (within the meaning of Code Section&nbsp;861(a)(3)). An individual classified by the
Employer at the time services are provided as either an independent contractor or an individual who
is not classified by the Employer as an Employee but who provides services to the Employer through
another entity shall not be eligible to participate in the Plan during the period that the
individual is so initially classified, even if such individual is later retroactively reclassified
as an Employee during all or any part of such period pursuant to applicable law or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23. <U><B>Employee</B></U>. Any individual employed by an Employer, as used herein, including any
Leased Employee. The term &#147;Employee,&#148; as used herein, shall exclude any other agent or independent
contractor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24. <U><B>Employer</B></U>. The Company and any Affiliate or Eligible Company that is or
hereafter becomes an Adopting Employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25. <U><B>Employment Commencement Date</B></U>. The first day on which an Employee is credited
with an Hour of Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26. <U><B>ERISA</B></U>. Employee Retirement Income Security Act of 1974, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27. <U><B>Expedia Stock</B></U>. Common stock of Expedia, Inc., a Delaware Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28. <U><B>Expedia Stock Option</B></U>. An Investment Option under the Plan which is intended to
invest in Expedia Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29. <U><B>Fair Market Value</B></U>. With respect to a specified date, the closing price of a
share of Expedia Stock as reported for the preceding trading day on the principal national
securities exchange in the United States on which it is then traded, or, if Expedia Stock is not
traded on any national securities exchange, as quoted on an automated quotation system sponsored by
the National Association of Securities Dealers, or if the sales of the Expedia Stock shall not have
been reported on such date, on the first day prior thereto on which the Expedia Stock was reported
or quoted. With respect to investments other than investments in Expedia Stock, Fair Market Value
shall be determined by the entity maintaining the applicable Investment Option, in accordance with
generally accepted valuation methods and practices.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30. <U><B>4</B><B>01(k)</B><B> Account</B></U>. The Member&#146;s sub-account with respect to 401(k) Contributions
made to a Historic Plan prior to the merger of the Historic Plan into the Plan and with respect to
401(k) Contributions made to the Plan, and the earnings and losses thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31. <U><B>4</B><B>01(k)</B><B> Contribution</B></U>. A contribution made pursuant to Section&nbsp;4.1 of the Plan or
a predecessor provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32. <U><B>Highly Compensated Employee</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any Employee who:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Employer is a corporation, owned (or is considered as owning within
the meaning of Code Section&nbsp;318) at any time during the current or preceding Plan
Year more than five percent (5%) of the outstanding stock of the Employer or stock
possessing more than five percent (5%) of the total combined voting power of all
stock of the Employer or if the Employer is not a corporation, owned at any time
during the current or preceding Plan Year more than five percent (5%) of the capital
or profit interest in the Employer; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) received Section 414(s) Compensation from the Employer and Affiliates in
excess of ninety thousand dollars ($90,000), as adjusted by the Secretary of the
Treasury, in the preceding Plan Year, and was among the top twenty percent (20%) of
Employees when ranked on the basis of compensation, as defined under Code Section
415(c)(3), during such Plan Year. In determining the number of Employees in the top
twenty percent (20%) for purposes of this Section, the following Employees shall be
excluded:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Employees who have not completed six (6)&nbsp;months of service;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Employees who normally work less than seventeen and one-half (17<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>)
hours per week;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Employees who normally work during not more than six (6)&nbsp;months
during any year;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Employees who have not attained age twenty-one (21); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) except to the extent provided in regulations issued by the Internal
Revenue Service, Employees who are included in a unit of Employees covered
by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement between the Employee representatives and the Employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A former Employee shall be treated as a Highly Compensated Employee if:
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Employee was a Highly Compensated Employee when such Employee
separated from service; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Employee was a Highly Compensated Employee at any time after
attaining age fifty-five (55).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining status as a Highly Compensated Employee under Treasury Regulation
Section&nbsp;1.414(q)-1T, A-4, whether an Employee was a Highly Compensated Employee for the respective
year that ended on or after the Employee&#146;s attainment of age fifty-five (55), or that was a
separation year, is based on the rules applicable to determining Highly Compensated Employee status
as in effect for that year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33. <U><B>Highly Compensated Group</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;With respect to an Employer for any Plan Year, the Highly Compensated Group is the group
of all Highly Compensated Employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Prior to determining the Highly Compensated Group, Code Sections&nbsp;414(b), (c), (m)&nbsp;and (o)
shall be applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Persons who are nonresident aliens and who receive no earned income (within the meaning of
Code Section&nbsp;911(d)(2)) from the Employer or its Affiliates which constitutes income from sources
within the United States (within the meaning of Code Section&nbsp;861(a)(3)) shall not be treated as
Employees for purposes of determining the Highly Compensated Group.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34. <U><B>Historic Plan</B></U>. A plan that is merged into and with the Plan (or prior to the
Effective Date, the Prior Plan, if the assets of such Historic Plan were transferred to the Plan
pursuant to the Trust-to-Trust Transfer described in the Preface) or from which the Plan receives a
trustee-to-trustee transfer, but only to the extent of such transfer. Except as otherwise provided
herein, the benefits of any Member who does not perform an Hour of Service on or after the
Distribution Date shall be governed by the provisions of the Historic Plan in effect as of the date
of such Member&#146;s Termination of Employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35. <U><B>IAC/InterActiveCorp</B></U>. IAC/InterActiveCorp, a New York corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36. <U><B>Investment Option</B></U>. One of the investments designated by the Committee for the
investment of contributions made to the Plan, including a brokerage account under the Plan or an
option to direct the Named Fiduciary to appoint an &#147;investment manager,&#148; as defined in Section
3(38) of ERISA, to allocate the Participant&#146;s Account balance among other Investment Options (other
than a brokerage account or the Expedia Stock Option) in its discretion in accordance with its
fiduciary duties under ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37. <U><B>Leased Employee</B></U>. Any person (other than an employee of the recipient) who
pursuant to an agreement between the recipient and any other person (&#147;leasing organization) has
performed services for a recipient (or for the recipient and related persons determined in
accordance with Code Section&nbsp;414(n)(6)) on a substantially full-time basis for a period of at least
one (1)&nbsp;year, and such services are performed under the primary direction or control of the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">recipient. Contributions or benefits provided a Leased Employee by the leasing organization
that are attributable to services performed for the recipient employer shall be treated as provided
by the recipient employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38. <U><B>Leave of Absence</B></U>. Any absence approved by the Employer, other than an absence
which qualifies as a Childrearing Absence or a Military Leave of Absence, including, but not
limited to, sick or disability leave.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39. <U><B>Limitation Year</B></U>. The Plan Year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40. <U><B>Matching Contribution</B></U>. A contribution made pursuant to Section&nbsp;4.4 of the Plan
(or a predecessor section) as a result of a 401(k) Contribution made pursuant to Section&nbsp;4.1 of the
Plan (or a predecessor section).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41. <U><B>Matching Contribution Account</B></U>. The Member&#146;s sub-account with respect to
Matching Contributions made to a Historic Plan prior to the merger of the Historic Plan into the
Plan and with respect to Matching Contributions made to the Plan and the earnings and losses
thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42. <U><B>Member</B></U>. A Participant, including a Transferred Participant, a Terminated
Participant or a Retired Participant who has an Accrued Benefit under the Plan or an individual who
(a)&nbsp;was a participant in a plan which was merged into the Plan and (b)&nbsp;has an Account balance under
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43. <U><B>Military Leave of Absence</B></U>. Absence of an Employee in military service for the
United States of America, provided that the Employee returns to the employ of the Employer prior to
the end of any period prescribed by the laws of the United States during which he has reemployment
rights with the Employer; and provided further that such military service and the Employee&#146;s
subsequent return to employment with the Employer satisfy the requirements for guaranteed
reemployment under the Selective Service Act, the Uniformed Services Employment and Reemployment
Rights Act or any similar law then existing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44. <U><B>Named Fiduciary</B></U>. The Company except where the Member (or Beneficiary thereof)
or the Trustee shall be a &#147;named fiduciary&#148; with respect to the vote or tender of Expedia Stock as
set forth in Article&nbsp;X or as provided in Section&nbsp;6.9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45. <U><B>Non Highly Compensated Group</B></U>. That group of Participants who are not included
in the Highly Compensated Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46. <U><B>Normal Retirement Age</B></U>. The Member&#146;s attainment of age fifty-five (55).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47. <U><B>Normal Retirement Date</B></U>. The first day of the month coinciding with or
immediately following the Member&#146;s attainment of Normal Retirement Age.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48. <U><B>Participant</B></U>. Any Employee who shall have become a Participant in the Plan in
accordance with the provisions of Article&nbsp;III, and whose participation shall not have ceased. A
Participant&#146;s participation shall cease upon his ceasing to be an Eligible Employee. The term
Participant shall not include Retired Participants and Terminated Participants.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49. <U><B>Payroll Period</B></U>. The applicable period for which Compensation is paid to a
Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50. <U><B>Period of Prior Service</B></U>. The period of time for which an Employee is directly
or indirectly paid or entitled to payment (including back pay, if any, irrespective of mitigation
or damages) by IAC/InterActiveCorp and Prior Affiliates, with respect to the period of time
immediately preceding the Effective Date; provided, that such total Period of Prior Service shall
end on the date immediately prior to the date the Employee performs an Hour of Service for the
Employer. Notwithstanding any contrary provision contained herein, service shall only be
recognized under the Plan if such service was recognized under the Prior Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51. <U><B>Plan</B></U>. The Expedia Retirement Savings Plan, as herein set forth and as hereafter
amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52. <U><B>Plan Administrator</B></U>. The Company shall be the administrator of the Plan, as
defined in Section&nbsp;3(16)(A) of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53. <U><B>Plan Year</B></U>. A period of twelve (12)&nbsp;months beginning on January 1 and ending on
the following December&nbsp;31 provided that the initial Plan Year shall commence on the Effective Date
and end on December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54. <U><B>Prior Affiliate</B></U>. With respect to IAC/InterActiveCorp, such corporations and
other entities which, prior to the Effective Date, are (a)&nbsp;members of the controlled group which
includes IAC/InterActiveCorp or are under common control with IAC/InterActiveCorp, as such terms
are defined in Code Section&nbsp;414, but only during such period as such corporations or entities are
members of the controlled group which includes IAC/InterActiveCorp or are under common control with
IAC/InterActiveCorp; and (b)&nbsp;any other entity required to be aggregated with IAC/InterActiveCorp
pursuant to Code Section 414(m) or (o), but only during the period the entity is required to be so
aggregated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55. <U><B>Prior Plan</B></U>. IAC/InterActiveCorp Retirement Savings Plan, as amended and
restated effective August&nbsp;1, 2003 and as thereafter amended through the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56. <U><B>Profit Sharing Account</B></U>. The Member&#146;s sub-account with respect to Profit Sharing
Contributions to a Historic Plan prior to the merger of the Historic Plan into the Plan and with
respect to Profit Sharing Contributions to the Plan, and earnings and losses thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57. <U><B>Profit Sharing Contributions</B></U>. A contribution made pursuant to Section&nbsp;4.7 of
the Plan or a predecessor provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58. <U><B>QNEC Account</B></U>. The Member&#146;s sub-account with respect to QNECs to a Historic Plan
prior to the merger of the Historic Plan into the Plan and with respect to QNECs made to the Plan,
and earnings and losses thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59. <U><B>QNECs</B></U>. Qualified non-elective contributions made pursuant to Section&nbsp;4.6 of the
Plan or a predecessor section used to satisfy the Actual Deferral Percentage test (as described in
Section&nbsp;4.1(c)) or the Actual Contribution Percentage test (as described in Section&nbsp;4.5).
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60. <U><B>Reemployment Commencement Date</B></U>. The first day on which an Employee is credited
with an Hour of Service following a Period of Severance which is not included as a Period of
Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61. <U><B>Retired Participant</B></U>. A former Participant who has retired on or after Normal
Retirement Age and is eligible to receive benefits under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62. <U><B>Rollover Account</B></U>. The total of the following Member&#146;s sub-account with respect
to Rollover Contributions to a Historic Plan prior to the merger of the Historic Plan into the Plan
and with respect to Rollover Contributions to the Plan pursuant to Section&nbsp;4.9 of the Plan or a
predecessor section, and earnings and losses thereon:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>General Rollover Account</U>. The Member&#146;s sub-account with respect to Rollover
Contributions, excluding after-tax rollovers made to the Plan, and earnings and losses thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>After-Tax Rollover Account</U>. The Member&#146;s sub-account with respect to the portion
of Rollover Contributions that consist of after-tax contributions that would not have been
includible in the Member&#146;s gross income if received directly by him and earnings and losses
thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63. <U><B>Rollover Contribution</B></U>. A contribution made to the Plan pursuant to Section&nbsp;4.9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64. <U><B>Section&nbsp;</B><B>414(s)</B><B> Compensation</B></U>. An individual&#146;s total &#147;wages&#148; as defined in Code
Section&nbsp;414(s). The determination shall be made without taking into account the exclusions under
Code Sections&nbsp;125, 132(f), 402(e)(3) and 402(h)(1)(B). Section 414(s) Compensation shall be
measured based on compensation actually paid or made available to a Participant during the
measuring period and not on an accrued basis. For purposes of Section&nbsp;4.1(d) and Section&nbsp;4.5(b),
Section 414(s) Compensation for any Plan Year shall not exceed two hundred twenty thousand dollars
($220,000), as adjusted for cost-of-living increases, in accordance with Code Section&nbsp;401(a)(17),
and with respect to any short Plan Year, Section 414(s) Compensation shall not exceed the foregoing
limit multiplied by a fraction, the numerator of which is the number of months in the short Plan
Year and the denominator of which is twelve (12). With respect to any Member who participated in
the Prior Plan during any portion of the period beginning on January&nbsp;1, 2003 and ending on the day
before the Effective Date (&#147;Interim Period&#148;), statutory Compensation shall include all compensation
described in this Section&nbsp;1.65 paid to such Member by IAC/InterActiveCorp or the Prior Affiliate
during the Interim Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65. <U><B>Section&nbsp;415 Compensation</B></U>. An Employee&#146;s wages, salaries, fees for professional
service and other amounts received for personal services actually rendered in the course of
employment with the Employer maintaining the Plan to the extent that the amounts are includible in
gross income (including, but not limited to, commissions paid salespersons, compensation for
services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses,
fringe benefits and reimbursements or other expense allowances under a nonaccountable plan as
described in Treasury Regulation&nbsp;Section&nbsp;1.62-2(c)). Section&nbsp;415 Compensation does not include (a)
Employer contributions to a plan of deferred compensation to
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the extent the contributions are not included in the gross income of the Employee for the
taxable year in which contributed, Employer contributions on behalf of an Employee to a Simplified
Employee Pension Plan to the extent such contributions are excludible from the Employee&#146;s gross
income, and any distributions from a plan of deferred compensation, regardless of whether such
amounts are includible in the gross income of the Employee when distributed; (b)&nbsp;amounts realized
from the exercise of a non-qualified stock option, or when restricted stock (or property) held by
an Employee either becomes freely transferable or is no longer subject to a substantial risk of
forfeiture; (c)&nbsp;amounts realized from the sale, exchange, or other disposition of stock acquired
under a stock option described in Part&nbsp;II, Subchapter D, Chapter&nbsp;1, Subtitle A of the Code; and (d)
other amounts which receive special tax benefits, such as premiums for group term life insurance
(but only to the extent that the premiums are not includible in the gross income of the Employee),
or contributions made by an Employer (whether or not under a salary reduction agreement) toward the
purchase of an annuity contract described in Code Section 403(b) (whether or not the contributions
are excludible from the gross income of the Employee).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66. <U><B>Spouse</B></U>. A Member&#146;s legal spouse.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67. <U><B>Terminated Participant</B></U>. An individual who ceases to be a Participant as a
result of a Termination of Employment for any reason other than death and who is eligible to
receive benefits under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68. <U><B>Termination of Employment</B></U>. Separation from the employment of all Employers and
their Affiliates for any reason, including, but not limited to, retirement, death, Disability,
resignation or dismissal with or without cause. Where an Employee enters upon an authorized Leave
of Absence or layoff, Termination of Employment shall not be deemed to occur until his Leave of
Absence expires without immediate reemployment, or in the case of layoff, he is not rehired within
the time established by the Committee in accordance with the general policy of the Employer. Where
an Employee is on a Military Leave of Absence, Termination of Employment shall not be deemed to
occur unless and until the Employee fails to return to employment prior to the end of the period
during which his right to reemployment is protected by the Selective Service Act, or the Uniformed
Services Employment Rights and Reemployment Act or any similar law then existing. In the event
that an Employee is transferred from one Employer or Affiliate to another Employer or Affiliate,
the Employee will not be deemed to have incurred a Termination of Employment until he is no longer
employed by any Employer or Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69. <U><B>Transferred Participant</B></U>. Any person who was a participant in a Historic Plan
and whose account thereunder was transferred to the Plan pursuant to the merger of the Historic
Plan into the Plan or the Prior Plan. Unless otherwise specified herein, the benefits of any
Transferred Participant who does not perform an Hour of Service on or after the effective date that
the plan in which he participated became a Historic Plan shall be governed by the provisions of
such plan in effect as of the day such Transferred Participant terminated employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70. <U><B>Trust</B></U>. The Trust adopted by the Company under the Trust Agreement incorporated
hereto and made a part hereof, which is established to hold and invest contributions made under the
Plan, as amended from time to time. If the Trust Fund is held by an insurance
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">company pursuant to a direct contract or an annuity contract, a reference to the Trust shall
include such a contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71. <U><B>Trustee</B></U>. Such person or persons or corporation appointed and acting as trustee
or successor trustee of the Trust under the Trust Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72. <U><B>Trust Fund</B></U>. All assets of whatsoever kind or nature, including all property and
income, held from time to time by the Trustee under the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73. <U><B>Valuation Date</B></U>. Each day on which trades are made on the New York Stock
Exchange or such other dates as the Committee may determine in accordance with its rules and
procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74. <U><B>Value</B></U>. The Member&#146;s Accrued Benefit with regard to his Account or sub-account,
as the case may be.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Construction</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The masculine gender where appearing in the Plan shall be deemed to include the feminine
gender, unless the context clearly indicates to the contrary. Where appropriate, words used in the
singular include the plural and the plural includes the singular. The words &#147;hereof,&#148; &#147;herein,&#148;
&#147;hereunder&#148; and other similar compounds of the word &#147;here&#148; shall mean and refer to this entire
Plan, not to any particular provision or section.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SERVICE</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <U><B>Hours of Service</B></U>. &#147;Hours of Service&#148; means hours for which an Employee is or
will be directly or indirectly compensated by the Employer or any Affiliate for the performance of
duties, including overtime (but only actual hours worked irrespective of premium pay) and hours for
which a back pay award is made (without offset for mitigation of damages).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision to the contrary, Hours of Service shall be credited with
regard to an Employee&#146;s prior hours of service with IAC/InterActiveCorp to the extent such hours of
service were credited under a Historic Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <U><B>Childrearing Absence</B></U>. An Employee who incurs a Childrearing Absence shall be
credited with Hours of Service for the period of such absence equal to either (i)&nbsp;the Hours of
Service that would have been credited to such Employee but for such Childrearing Absence or (ii)&nbsp;if
the Hours of Service to be credited to such Employee pursuant to Section&nbsp;2.2(i) cannot be
determined, eight (8)&nbsp;Hours of Service for each normal workday of absence; provided, however, that
in no event shall any Employee be credited with more than five hundred and one (501)&nbsp;Hours of
Service under this Section&nbsp;2.2. The Severance from Service Date, as defined below, of an Employee
who incurs a Childrearing Absence that extends beyond the first anniversary of the first date of
such Childrearing Absence is the second anniversary of the first date of absence. The period
between the first and second anniversary will be treated as neither a Period of Severance nor a
Period of Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <U><B>Period of Service</B></U>. A period commencing on the Employee&#146;s (i)&nbsp;Employment
Commencement Date or (ii)&nbsp;Reemployment Commencement Date, whichever is applicable, and ending on
the Severance from Service Date, as defined below. A Period of Service includes a Period of
Severance, as defined below, of less than twelve (12)&nbsp;consecutive months; provided, however, that
if an Employee is absent from service on the date immediately preceding his Severance from Service
Date, as defined below, his Period of Severance shall be included in his Period of Service only if
he again performs an Hour of Service within twelve (12)&nbsp;months after the commencement of such
absence. An Employee&#146;s Period of Service shall include the period of such Employee&#146;s Military
Leave of Absence. If an Employee is reemployed by the Employer after a One Year Period of
Severance, as defined below, his prior Period of Service shall be reinstated if:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Employee had a vested benefit under the Plan at the time of the Employee&#146;s Severance
from Service Date, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the number of the Employee&#146;s consecutive One Year Periods of Severance immediately prior
to the Employee&#146;s Reemployment Commencement Date does not exceed the greater of (i)&nbsp;five (5)&nbsp;or
(ii)&nbsp;the aggregate number of years of the Employee&#146;s Period of Service prior to his Period of
Severance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Period of Service shall include an Employee&#146;s Period of Prior Service.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solely for purposes of Section&nbsp;5.1(b), subject to this Section&nbsp;2.3, each participant in a
Historic Plan that did not use the &#147;elapsed time&#148; method of calculating service for vesting
purposes as described in Department of Labor Regulation&nbsp;Section&nbsp;2530.204-3(a) who became a
Participant in the Plan on or after the date that the respective Historic Plan under which he or
she was a participant merged into the Plan (&#147;the Applicable Merger Date&#148;) shall receive credit for
years in a Period of Service in accordance with Treasury Regulation&nbsp;Section&nbsp;1.410(a)-7(g) equal to
the sum of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The number of Years of Service (as defined under the Historic Plan)
credited to such Member before the Applicable Merger Date (the &#147;Applicable
Computation Period&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The greater of (x)&nbsp;the Period of Service credited to such Member under the
vesting schedule set forth in Section&nbsp;5.1(b) for his service during the entire
Applicable Computation Period or (y)&nbsp;the Years of Service credited to such
Participant under the applicable vesting schedule set forth under the Historic Plan
immediately prior to the Applicable Merger Date; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The number of his years in a Period of Service commencing on or after the
Applicable Merger Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <U><B>Severance</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Period of Severance</U>. A period of time commencing on the Severance from Service
Date and ending on the date the Employee again performs an Hour of Service. An Employee shall not
suffer a Period of Severance due to a Military Leave of Absence to the extent required by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>One Year Period of Severance</U>. A Period of Severance of at least twelve (12)
consecutive months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Severance From Service Date</U>. The earlier of (i)&nbsp;the date an Employee quits,
retires, is discharged or dies or (ii)&nbsp;the first anniversary of the first date of a period in which
an Employee is continuously absent from service (with or without pay) with the Employer for any
reason other than quitting, retirement, discharge or death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Childrearing Absence</U>. For purposes of Section&nbsp;2.2, the Severance from Service
Date of an Employee who incurs a Childrearing Absence that extends beyond the first anniversary of
the first date of such Childrearing Absence is the second anniversary of the first date of absence
and the period between the first and second anniversary will be treated as neither a Period of
Severance nor a Period of Service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <U><B>Military Service</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding any provision of the Plan to the contrary, contributions, benefits and
service credit with respect to qualified military service will be provided in accordance with Code
Section&nbsp;414(u).
</DIV>


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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the case of an Eligible Employee who is on a Military Leave of Absence and who becomes
employed as an Eligible Employee of an Employer who was not his Employer immediately prior to his
Military Leave of Absence, the liability to fund the benefits under the Plan for such Eligible
Employee for the period of the Military Leave of Absence shall be the responsibility of the
Eligible Employee&#146;s last Employer before the Military Leave of Absence; provided, however, that if
such Employer is no longer an Adopting Employer, such liability shall be borne by each Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <U><B>Multiple Employer Plan</B></U>. Solely to the extent required by Department of Labor
Regulation&nbsp;Section&nbsp;2530.210(c)(1) and applicable law, if the Plan is a &#147;multiple employer plan,&#148; as
defined under Code Section&nbsp;413, the following shall apply:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;for purposes of eligibility and vesting only, Hours of Service shall include all Hours of
Service during covered service with all Employers and all contiguous noncovered service; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;for benefit accrual purposes, Hours of Service shall include all Hours of Service during
covered service with all Employers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;2.6, the terms &#147;covered service,&#148; &#147;noncovered service&#148; and
&#147;contiguous&#148; shall have the same meanings as used in Department of Labor Regulation&nbsp;Section
2530.210(c)(3).
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ELIGIBILITY</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <U><B>Former Participants and Member of the Prior Plan</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Eligible Employee who was a participant in the Prior Plan on the day immediately
preceding the Effective Date shall be eligible to become a Participant in the Plan on the Effective
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each other person who had an account balance in the Prior Plan transferred to the Plan in
the Trust-to-Trust Transfer will automatically become a Member in the Plan with respect to his
transferred account balance on the date the Trust-to-Trust Transfer is completed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <U><B>Future Employees</B></U>. Each future Eligible Employee and each current Eligible
Employee who are not eligible to become a Participant in accordance with Section&nbsp;3.1 shall become a
Participant in the Plan on the first day of the Payroll Period coinciding with or next following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Eligible Employee&#146;s Employment Commencement Date; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The date on which the Eligible Employee attains age twenty-one (21)&nbsp;or, effective January
1, 2006, age eighteen (18).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <U><B>Reemployment</B></U>. Any Member who is reemployed and who satisfies the requirements of
Section&nbsp;3.2 shall become a Participant in the Plan as of the date of his Reemployment Commencement
Date. An Employee who is reemployed but who is not eligible to become a Participant in accordance
with Section&nbsp;3.2 shall not be eligible to become a Participant until he satisfies the requirements
of Section&nbsp;3.2 based on his Employment Commencement Date or Reemployment Commencement Date,
whichever is applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <U><B>Automatic Enrollment</B></U>. In accordance with any rules, regulations and/or
administrative guidelines prescribed by the Committee, unless and until otherwise elected by the
Eligible Employee, an Eligible Employee who becomes a Participant in accordance with this Article
III on or after January&nbsp;1, 2006 shall be deemed to: (a)&nbsp;enter into a salary reduction agreement
with the Employer to make 401(k) Contributions to the Participant&#146;s 401(k) Account pursuant to
Section&nbsp;4.1 equal to three percent (3%) of his Compensation and (b)&nbsp;make an election to invest his
Account in the Fidelity Freedom Fund with a target retirement date closest to the date that the
Participant will attain age sixty-five (65). Notwithstanding this Section&nbsp;3.4, a Participant may
affirmatively elect to make contributions to his 401(k) Account in an amount equal to, less than or
greater than the percentage specified above. The Committee may establish and adopt rules,
regulations and/or administrative guidelines designed to facilitate the administration and
operation of the provisions of this Section&nbsp;3.4, as it may deem necessary or proper, in its sole
discretion.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CONTRIBUTIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <U><B>4</B><B>01(k)</B><B> Contributions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the provisions of this Article&nbsp;IV, a Participant may enter into a salary
reduction agreement with his Employer to have the Employer make contributions to the Participant&#146;s
401(k) Account on behalf of the Participant, in accordance with Code Section&nbsp;401(k), of one percent
(1%) to sixteen percent (16%) of his future Compensation, in whole percentages, earned while a
Participant during a Payroll Period. Such contributions shall reduce the amount of Compensation
otherwise payable to the Participant thereafter. Notwithstanding the foregoing, the maximum
deferral percentage may be reduced with respect to any Highly Compensated Employee at any time to
the extent necessary to comply with Section&nbsp;4.1(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any salary reduction agreement executed by a Participant shall be in a manner acceptable
to the Committee in accordance with its rules and regulations. A Participant may elect to enter
into a salary reduction agreement or change or terminate his existing salary reduction agreement
with regard to future Compensation as of the first day of the first Payroll Period (or such other
times as the Committee shall prescribe) following such election, by giving sufficient prior notice
to the Plan Administrator on a form (or other means) provided by, or in a manner acceptable to, the
Committee for such purpose. The Committee may establish or change, in accordance with its rules
and regulations and in a consistent manner, the foregoing period of prior notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The 401(k) Contributions made under this Section&nbsp;4.1 on behalf of the Highly Compensated
Group in any Plan Year shall not exceed the maximum amount so that the &#147;Actual Deferral Percentage&#148;
(as defined below) for the Highly Compensated Group for a Plan Year does not exceed the Actual
Deferral Percentage for the Non Highly Compensated Group for the same Plan Year by the greater of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) One hundred and twenty-five percent (125%); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The lesser of two (2)&nbsp;percentage points or two hundred percent (200%).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, this Section&nbsp;4.1(c) may be applied using the Actual Deferral
Percentage for the Non Highly Compensated Group for the preceding Plan Year rather than the current
Plan Year; provided that an election to use the preceding Plan Year must be made pursuant to Code
Section&nbsp;401(k)(3)(A) and any regulations or other published guidance thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Actual Deferral Percentage for a Plan Year with regard to each of the Highly
Compensated Group and the Non Highly Compensated Group shall be the average of the percentages
(calculated separately for each Participant in each such group) of (x)&nbsp;divided by (y), subject to
(z), where (x), (y)&nbsp;and (z)&nbsp;are as follows:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) is, for the applicable Plan Year, the sum of (1)&nbsp;the Employer&#146;s
contributions for each Participant to each Participant&#146;s 401(k) Account, (2)&nbsp;subject
to Section&nbsp;4.1(h), the Matching Contributions for each Participant to each
Participant&#146;s Matching Contribution Account, and (3)&nbsp;the QNECs, if any, for each
Participant to each Participant&#146;s QNEC Account;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) is the Participant&#146;s Section 414(s) Compensation for the applicable Plan
Year; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) the Actual Deferral Percentage of a member of the Highly Compensated Group
shall be determined by treating all cash or deferred arrangements under which the
member of the Highly Compensated Group is eligible (other than those that may not be
permissively aggregated) as a single arrangement. If the plans containing the Code
Section 401(k) arrangements have different plan years, all elective deferrals made
during the Plan Year under all such arrangements (other than those that may not be
permissively aggregated) shall be aggregated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess Contributions shall be reduced to satisfy Section&nbsp;4.1(c). &#147;Excess
Contributions&#148; shall mean with respect to any Plan Year, the excess of the aggregate
amount of the Employer&#146;s contributions made pursuant to this Section&nbsp;4.1 actually
paid over to the Trust Fund on behalf of the Highly Compensated Group for such Plan
Year, over the maximum amount of such contributions permitted under Section&nbsp;4.1(c).
The amount of Excess Contributions for Highly Compensated Employees will be
determined in accordance with Treasury Regulation&nbsp;Section&nbsp;1.401(k)-2(b)(2).
Reductions from among the Highly Compensated Group shall be determined by reducing
401(k) Contributions made pursuant to this Section&nbsp;4.1, on behalf of members of the
Highly Compensated Group in order of the dollar amounts of 401(k) Contributions
beginning with the largest of such dollar amounts of 401(k) Contributions, as
adjusted as reduction takes place.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, to the extent a Highly Compensated Employee has
not reached his or her Catch-Up Contribution limit for such Plan Year, the Excess
Contributions allocated to such Highly Compensated Employee shall be reclassified as
Catch-Up Contributions and shall not be distributed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Excess Contributions for any Plan Year (and any income or loss allocable to
such Excess Contributions) shall be distributed before the last day of the next Plan
Year to the members of the Highly Compensated Group on the basis of the respective
portions of the Excess Contributions allocable to each such member of the Highly
Compensated Group. Any such amounts not distributed before March&nbsp;15 of the next
Plan Year will be subject to an excise tax on the Employer under Code Section&nbsp;4979.
The amount of Excess Contributions that may be distributed under this Section
4.1(d)(iii) shall be reduced by any Excess Deferrals (as defined in Section&nbsp;4.1(g))
previously distributed with respect to such Participant for the Plan Year.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The method used for computing income or loss allocable to Excess Contributions
shall be the method set forth in Section&nbsp;6.8. Allocable income or loss shall be
calculated for the Plan Year and, solely for Excess Contributions reclassified or
distributed in 2007 or 2008 (i.e., related to the Plan Year beginning January&nbsp;1,
2006 or 2007, respectively), for the portion of the following Plan Year preceding a
date which is not more than seven days before the date such excesses are
reclassified or distributed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;All determinations and procedures with regard to the matters covered by Sections&nbsp;4.1(c)
and (d)&nbsp;shall be made in accordance with Code Section&nbsp;401(k)(3) and Treasury Regulation&nbsp;Section
1.401(k)-2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding anything else herein, the amount to be contributed for any calendar year
on behalf of any Participant pursuant to an agreement under Section&nbsp;4.1(a) shall not exceed the
applicable &#147;Elective Limitation.&#148; The &#147;Elective Limitation&#148; shall mean fifteen thousand dollars
($15,000) for 2006 and thereafter such dollar amount in effect under Code Section&nbsp;402(g).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;If contributions of Elective Deferrals on behalf of a Participant for any calendar year
are in excess of the Elective Limitation for such calendar year, the excess amount (&#147;Excess
Deferrals&#148;) shall be treated as follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not later than March 1 of the next calendar year, the Participant may
allocate the amount of such Excess Deferrals among the plans under which the
deferrals were made and may notify each such plan of the portion allocated to it;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not later than April&nbsp;15 of the next calendar year, the Employer may distribute
to the Participant the amount of Excess Deferrals allocated to it under Section
4.1(g)(i), and any income or loss allocable to such amount, which shall be computed
based on the method set forth in Section&nbsp;6.8. Allocable income or loss shall be
calculated for the Plan Year and, solely for Excess Contributions reclassified or
distributed in 2007 or 2008 (i.e., related to the Plan Year beginning January&nbsp;1,
2006 or 2007, respectively), for the portion of the following Plan Year preceding a
date which is not more than seven days before the date such excesses are
reclassified or distributed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event Excess Deferrals were made to the Plan without consideration of contributions to
any other plans, such amounts shall be distributed pursuant to Section&nbsp;4.1(g)(ii) without regard to
whether any election under Section&nbsp;4.1(g)(i) is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;In satisfying the Actual Deferral Percentage test described in Section&nbsp;4.1(c), Matching
Contributions may be treated as if they were contributions to the Participant&#146;s 401(k) Account
pursuant to Section&nbsp;4.1, provided that the requirements of Treasury Regulation&nbsp;Section
1.401(k)-2(a)(6) are satisfied. If used to satisfy the Actual Deferral Percentage test, such
Matching Contributions shall not be used to help other Matching Contributions satisfy the Actual</div>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Contribution Percentage test (as described in Code Section&nbsp;401(m)(2)), set forth in Section
4.5 except as otherwise permitted by applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;For purposes of satisfying the Actual Deferral Percentage test described in Section
4.1(c), all elective contributions that are made under two or more plans that are aggregated for
purposes of Code Section&nbsp;401(a)(4) or 410(b) (other than Code Section&nbsp;410(b)(2)(A)(ii)) shall be
treated as made under a single plan and if two or more plans are permissively aggregated for
purposes of Code Section&nbsp;401(k), the aggregated plans must also satisfy Code Sections&nbsp;401(a)(4) and
410(b) as though they were a single plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <U><B>Catch-Up Contributions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any Participant:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) who is eligible to make 401(k) Contributions pursuant to Section&nbsp;4.1,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) who has attained or will attain age fifty (50)&nbsp;before the close of the
Plan Year, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect to whom no other elective deferrals may (without regard to
this subsection) be made for the Plan Year by reason of the application of any
limitation or other restriction described in Sections&nbsp;401(a)(30), 402(h), 403(b),
408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3)) of the
Code, or comparable limitation or restriction contained in the terms of the Plan,
shall be eligible to enter into a salary reduction agreement with his Employer to
have the Employer make Catch-Up Contributions on behalf of the Participant to the
Participant&#146;s Catch-Up Contribution Account in accordance with, and subject to, the
limitations of Code Section&nbsp;414(v). Such Catch-Up Contributions shall not be taken
into account for purposes of the provisions of the Plan implementing the required
limitations of Code Sections&nbsp;401(k)(3), 401(k)(12), 402(g) (other than those
specified in Code Section&nbsp;402(g)(1)(C)), 410(b), 415 and 416 (but Catch-Up
Contributions made in prior years will be counted in determining whether the Plan is
top-heavy), and the Plan shall not be treated as failing to satisfy the provisions
of the Plan implementing the requirements of such Code Sections by reason of
permitting Participants to make Catch-Up Contributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Contributions made pursuant to this Section&nbsp;4.2 shall reduce the amount of Compensation
otherwise payable to the Participant thereafter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A salary reduction agreement entered into by a Participant shall be on a form acceptable
to the Committee in accordance with its rules and regulations. A Participant may elect to make,
change or terminate his contribution rate with regard to future Compensation as of the first day of
the Payroll Period following such election by giving sufficient prior notice to the Plan
Administrator on a form provided by the Committee for such purpose. The Committee may establish or
change, in accordance with its rules and regulations and in a consistent manner, the period of
prior notice.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <U><B>After-Tax Contributions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;A Participant may enter into a salary reduction agreement with his Employer to make
contributions to his After-Tax Contribution Account, subject to the limitations set forth in
Section&nbsp;4.10. Each Participant may contribute to the Plan a percentage of his future Compensation
for each Payroll Period earned while a Participant, equal to one percent (1%) to ten percent (10%)
in whole percentages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A Participant may elect to make, change or terminate his After-Tax Contribution rate only
as of the first day of any Payroll Period (or such other times as the Committee shall prescribe)
following such election, by giving sufficient prior notice to the Plan Administrator in a manner
acceptable to, the Committee for such purpose. The Committee may establish or change, in
accordance with its rules and regulations and in a consistent manner, the period of prior notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <U><B>Matching Contributions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as provided herein, for each Payroll Period, with respect to each Participant who
is entitled to make and who makes 401(k) Contributions pursuant to Section&nbsp;4.1, the Employer shall
contribute to the Plan an amount equal to fifty percent (50%) of such Participant&#146;s 401(k)
Contributions contributed by the Participant that do not exceed six percent (6%) of such
Participant&#146;s Compensation earned while a Participant during the Payroll Period.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b) (i)&nbsp;With respect to each Participant who is entitled to make and who makes
401(k) Contributions pursuant to Section&nbsp;4.1, the Employer, in its sole and absolute
discretion, may contribute Matching Contributions to the Plan in addition to the
Matching Contributions made pursuant to Section&nbsp;4.4(a), in an amount equal to a
percentage of such Participant&#146;s 401(k) Contribution, as designated by the Employer
for the applicable Plan Year. In connection with the designation of any percentage
for the purpose of making additional Matching Contributions pursuant to this Section
4.4(b), the Employer in its sole and absolute discretion, may limit the Matching
Contribution by placing a total dollar or percentage limit on the Matching
Contribution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, no Matching Contribution will be made for
any Participant pursuant to this Section&nbsp;4.4(b) for any Plan Year unless he is
employed by the Employer on the last day of the Plan Year or during such Plan Year,
he retired at or after attaining his Normal Retirement Age, died or incurred (and
satisfied all of the requirements for) a Disability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event of the return of any Excess Contribution or Excess Deferral to a Participant,
no Matching Contribution pursuant to Sections&nbsp;4.4(a) and (b)&nbsp;shall be made with respect to the
amount returned and, if made prior to a determination of Excess Contribution or Excess Deferral,
shall be forfeited.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Matching Contribution shall be made under this Section&nbsp;4.4 for any Participant for any
Plan Year with respect to After-Tax Contributions or any Catch-Up Contributions.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <U><B>Actual Contribution Percentage</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Matching Contributions and After-Tax Contributions made by or on behalf of the Highly
Compensated Group in any Plan Year shall not exceed the maximum amount so that the &#147;Actual
Contribution Percentage,&#148; as determined pursuant to Section&nbsp;4.5(b), for the Highly Compensated
Group for the current Plan Year does not exceed the Actual Contribution Percentage for the Non
Highly Compensated Group for the current Plan Year, by the greater of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) One hundred and twenty-five percent (125%); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The lesser of two (2)&nbsp;percentage points or two hundred percent (200%).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, this Section&nbsp;4.5(a) may be applied using the Actual
Contribution Percentage for the Non Highly Compensated Group for the preceding Plan Year rather
than the current Plan Year, provided that an election to use the preceding Plan Year must be made
pursuant to Code Section&nbsp;401(m)(2)(A) and any regulations or other published guidance thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Actual Contribution Percentage for a specified group of Participants for a Plan Year
shall be the average of the &#147;Contribution Percentage&#148; of each Participant in such group, where such
Contribution Percentage shall be equal to the ratio of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The sum of the After-Tax Contributions and the Matching Contributions made
to the Plan on behalf of each Participant for the applicable Plan Year (other than
those that cannot be considered as a result of Section&nbsp;4.1(h)), plus to the extent
permitted under Treasury Regulation&nbsp;Section&nbsp;1.401(m)-2(a)(6), some or all of the
contributions under Section&nbsp;4.1; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant&#146;s Section 414(s) Compensation for the applicable Plan
Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Excess Aggregate Contributions shall be reduced to satisfy Section
4.5(a). &#147;Excess Aggregate Contributions&#148; shall mean with respect to any Plan Year,
the excess of the aggregate amount of contributions made pursuant to Section&nbsp;4.3 and
4.4 actually paid over to the Trust on behalf of the Highly Compensated Group for
such Plan Year, over the maximum amount of such contributions permitted under
Section&nbsp;4.5(a). The amount of Excess Aggregate Contributions for Highly Compensated
Employees will be determined in accordance with Treasury Regulation&nbsp;Section
1.401(m)-2(b)(2). Reductions shall be determined by reducing contributions made on
behalf of members of the Highly Compensated Group in order of the dollar amounts of
the total After-Tax Contributions and Matching Contributions beginning with the
largest of such dollar amounts of total After-Tax Contributions and Matching
Contributions, as adjusted as reduction takes place. Excess Aggregate Contributions
shall be reduced in the following order: first After-Tax Contributions and then
Matching Contributions.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Excess Aggregate Contributions for any Plan Year (and any income or
loss allocable to such contributions) shall be distributed before the last day of
the next Plan Year to the members of the Highly Compensated Group on the basis of
the respective portions of the Excess Aggregate Contributions allocable to each such
member, provided that any such amounts not distributed before March&nbsp;15 of the next
Plan Year will be subject to an excise tax on the Employer under Code Section&nbsp;4979.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The method used for computing income or loss allocable to Excess Aggregate
Contributions shall be determined in accordance with Section&nbsp;6.8. Allocable income
or loss shall be calculated for the Plan Year and, solely for Excess Aggregate
Contributions forfeited or distributed in 2007 or 2008 (i.e., related to the Plan
Year beginning January&nbsp;1, 2006 or 2007, respectively), for the portion of the
following Plan Year preceding a date which is not more than seven days before the
date such excesses are forfeited or distributed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All determinations and procedures with regard to the matters covered by Sections&nbsp;4.5(a)
and (b)&nbsp;shall be made in accordance with Code Section 401(m) and Treasury Regulation&nbsp;Section
1.401(m)-2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <U><B>Qualified Non-Elective Contributions</B></U>. To the extent permitted under the Code,
within twelve (12)&nbsp;months after the close of the Plan Year (or within such greater time if
permitted by the Internal Revenue Service), the Employer, in its sole discretion, may make QNECs on
behalf of one or more members of the Non Highly Compensated Group to their QNEC Accounts in an
amount sufficient to satisfy the tests set forth in Section&nbsp;4.1(c) and Section&nbsp;4.5(a). QNECs shall
be allocated to Participants who are in the Non Highly Compensated Group as of the last day of the
Plan Year. The Committee must elect whether to allocate QNECs: (a)&nbsp;to Participants pro rata in
relation to Compensation; (b)&nbsp;to Participants in the same amount without regard to Compensation
(flat dollar); (c)&nbsp;under the reverse allocation method; or (d)&nbsp;under any other method; provided
that in no event will the QNEC for any member exceed the greater of (i)&nbsp;5&nbsp;percent of such member&#146;s
Compensation for the Plan Year or (ii)&nbsp;two times the lowest applicable contribution rate of any
member consisting of (A)&nbsp;any one-half of the eligible members for the Plan Year or, if it would
result in a higher rate (B)&nbsp;all of the eligible members who are employed by the Employer on the
last day of the Plan Year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <U><B>Profit Sharing Contributions</B></U>. If the Employer elects, in its sole and absolute
discretion, to make contributions to the Plan for the Plan Year other than Matching Contributions
pursuant to Section&nbsp;4.4, the Employer shall contribute to the Profit Sharing Account of each
Participant employed by the Employer an amount equal to such percentage of Compensation for the
Plan Year as may be determined by the Employer in its sole and absolute discretion; provided that
no contribution shall be made to such Account for any Participant for such Plan Year unless (i)&nbsp;he
is employed by the Employer on the last day of the Plan Year or (ii)&nbsp;during such Plan Year the
Participant retired at or after attaining his Normal Retirement Age, died or incurred (and
satisfied all of the requirements for) a Disability. Such contributions shall be allocated to each
Participant based on the proportion of the Participant&#146;s Compensation for the Plan Year to the
total Compensation for the Plan Year of all Participants employed by the Employer who are eligible
to have an allocation made to their Profit Sharing Account pursuant to this Section&nbsp;4.7.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <U><B>Time of Contributions</B></U>. Contributions shall be made for each Plan Year within the
time permitted by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. <U><B>Rollovers</B></U>. With respect to any Eligible Employee, the Plan will accept a direct
rollover of an Eligible Rollover Distribution, as defined in Section&nbsp;7.9, from a qualified plan
described in Code Section 401(a) or 403(a), an annuity contract described in Code Section 403(b)
and an eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision of a
state, and the portion of a distribution from an individual retirement account or annuity described
in Code Section 408(a) or 408(b) that is eligible to be rolled over.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. <U><B>Limitations on Contributions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Code Section 415(c) is incorporated by reference into the Plan, and notwithstanding
anything herein shall override any Plan provision to the contrary. Contributions and other Annual
Additions under the Plan are subject to the limitations of Code Section&nbsp;415. &#147;Annual Additions&#148;
shall mean the sum, for any Limitation Year, of Employer contributions, Employee contributions
(without regard to Rollover Contributions) and Forfeitures, including 401(k) Contributions,
After-Tax Contributions, Matching Contributions, QNECs and Profit Sharing Contributions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If as a result of reasonable error in estimating a Participant&#146;s Section&nbsp;415 Compensation,
or as a result of such other circumstances as may be permitted under applicable Treasury
Regulations, Annual Additions to a Participant&#146;s Account shall in any Plan Year exceed the maximum
permitted under Code Section&nbsp;415, the Committee shall, pursuant to the provisions of Treasury
Regulation&nbsp;Section&nbsp;1.415-6(b)(6) (or any successor provision thereto),
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce Annual Additions in the following priority including any income or
loss allocable to any such contributions: After-Tax Contributions; then unmatched
401(k) Contributions (and any income or loss allocable to such contributions); then
Profit Sharing Contributions, then QNECS, and if any excess then still exists,
matched 401(k) Contributions and the related Matching Contributions proportionately;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) treat the excess amounts as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Excess amounts attributable to After-Tax Contributions or 401(k)
Contributions and any income thereon shall be distributed to the Participant
pursuant to the provisions of Treasury Regulation&nbsp;Section&nbsp;1.415-6(b)(6)(iv).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Pursuant to the provisions of Treasury Regulation&nbsp;Section
1.415-6(b)(6)(ii), the excess amounts attributable to Profit Sharing
Contributions, Matching Contributions and QNECs and any income thereon shall
be used to reduce Profit Sharing Contributions, Matching Contributions and
QNECs for the next Limitation Year (and succeeding Limitation Years, as
necessary) for that Participant if that Participant is covered by the Plan
as of the end of such Limitation Year.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If the Participant is not covered by the Plan as of the end of the
next Limitation Year, then the excess amounts attributable to Profit Sharing
Contributions, Matching Contributions and QNECs and any income thereon shall
be held unallocated in a suspense account for the Limitation Year and
allocated and reallocated in the next Limitation Year (and succeeding
Limitation Years, as necessary) as Profit Sharing Contributions, Matching
Contributions and QNECs to all of the remaining Participants in the Plan
before any other Profit Sharing Contributions, Matching Contributions and
QNECs which would constitute Annual Additions are made to the Plan for such
Limitation Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Excess amounts attributable to Profit Sharing Contributions,
Matching Contributions and QNECs and any income thereon may not be
distributed to Participants or former Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding anything herein to the contrary, in the event the Annual Additions on
behalf of a Participant in any Limitation Year exceed the limitation of Code Section&nbsp;415 and the
Participant participates in more than one defined contribution plan that is qualified under Code
Section 401(a) and maintained by the Employer, such Annual Additions shall be reduced by reducing
contributions to the Plan, and if any excess then still exists, by limiting or reducing
contributions to any other plan of the Employer, or any other entity aggregated under Code Section
415(g), that is qualified under, Code Section&nbsp;401(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In no event shall the aggregate contributions by the Employer under this Article&nbsp;IV, when
combined with amounts contributed pursuant to Section&nbsp;4.1 and any other plan of the Employer
qualified under Code Section 401(a) be in excess of the amounts deductible pursuant to Code Section
404(a)(3), or the section of any future Code provision limiting deductions to profit-sharing plans.
</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>VESTING AND FORFEITURES</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <U><B>Vesting of Interest of Participant in Trust Fund</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;A Member shall be fully vested in his 401(k) Account, Catch-Up Contribution Account, QNEC
Account, Rollover Account and After-Tax Account at all times, and such Account balances shall at
all times be nonforfeitable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subject to Appendix&nbsp;B, the portion of such Participant&#146;s Accrued Benefit in his Matching
Contribution Account and Profit Sharing Account which shall become vested and nonforfeitable shall
be based on the number of years in his Period of Service according to the following schedule:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Number of Years in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Nonforfeitable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period of Service</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Less than 2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:30px; text-indent:-15px">2 or more</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If any Member shall, while an Employee, attain his Normal Retirement Age or shall die or
incur (and satisfy all of the requirements for) a Disability while he is an Employee, the entire
interest in his Account shall become nonforfeitable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <U><B>Forfeitures</B></U>. In the event a Member incurs a Termination of Employment, any
portion of the Member&#146;s Matching Contribution Account and Profit Sharing Account to which he is not
then entitled pursuant to Section&nbsp;5.1 shall be forfeited (a &#147;Forfeiture&#148;). A Forfeiture shall be
deemed to take place at the following time:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Member has no vested interest in any of his Accounts, the Forfeiture shall take
place in the Plan Year in which his Termination of Employment occurs. In such case, the Member
shall be deemed to have a distribution of his zero Account Value at the time of his Termination of
Employment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Member has any vested interest in any of his Accounts, the Forfeiture shall take
place in the Plan Year in which occurs the earlier of (i)&nbsp;completion of the distribution of the
Member&#146;s vested benefits under the Plan or (ii)&nbsp;incurrence by the Member of his fifth (5th)
consecutive One Year Period of Severance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <U><B>Restoration of Forfeitures</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Member whose Matching Contribution Account or Profit Sharing Account was forfeited in
its entirety pursuant to Section&nbsp;5.2 again becomes employed by an</div>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Employer or an Affiliate before he incurs his fifth (5th) consecutive One Year Period of
Severance, the amount of his Forfeiture shall be restored to his Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If an Employee who received a distribution of less than all of his Matching Contribution
Account and Profit Sharing Account is again employed by an Employer or an Affiliate before he
incurs his fifth (5th) consecutive One Year Period of Severance and repays to the Plan, prior to
the earlier of his incurring his fifth (5th) consecutive One Year Period of Severance or five (5)
years after his Reemployment Commencement Date, the amount of his previous distribution, if any,
the amount of his Forfeitures shall be restored to his Matching Contribution Account and Profit
Sharing Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <U><B>Use of Forfeitures</B></U>. Forfeitures, if any, shall be first allocated to the
Accounts of Participants entitled to a restoration of their interests in the Plan as described in
Section&nbsp;5.3, and the remainder of such Forfeitures shall be used to reduce future contributions by
the Employer and pay the expenses of operating the Plan and the Trust.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ALLOCATION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <U><B>4</B><B>01(k)</B><B> Account</B></U>. 401(k) Contributions shall be allocated to the 401(k) Account of
each Member who entered into a salary reduction agreement pursuant to which such contributions were
made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <U><B>Catch-Up Contribution Account</B></U>. Catch-Up Contributions made pursuant to Section
4.2 shall be allocated to the Catch-Up Contribution Account of each Member who entered into a
salary reduction agreement pursuant to which such Catch-Up Contributions were made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <U><B>After-Tax Account</B></U>. After-Tax Contributions shall be allocated to the After-Tax
Account of each Member for whom such contributions have been made pursuant to Section&nbsp;4.3 in the
amount of the After-Tax Contributions for each Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <U><B>Matching Contribution Account</B></U>. Matching Contributions for any Plan Year shall be
allocated to the Matching Contribution Account of each Member for whom such contributions have been
made pursuant to Section&nbsp;4.4 in the amount of the Matching Contributions for each Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <U><B>QNEC Account</B></U>. Contributions to the QNEC Account, if any, shall be allocated to
the Accounts of each Member for whom QNECs have been made pursuant to Section&nbsp;4.6 in the amount of
the QNECs for such Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <U><B>Profit Sharing Account</B></U>. Profit Sharing Contributions for any Plan Year shall be
allocated to the Profit Sharing Account of each Member for whom such contributions have been made
pursuant to Section&nbsp;4.7 in the amount of the Profit Sharing Contributions for each Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <U><B>Rollover Account</B></U>. Rollover Contributions shall be allocated to the Rollover
Account of the Member who made the Rollover Contribution to the Plan as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Rollover Contributions made to the Plan, excluding a portion of a rollover contribution
that would not otherwise be includible in the Eligible Employee&#146;s taxable gross income, shall be
allocated to the Member&#146;s General Rollover Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The portion of any Rollover Contributions that consist of after-tax contributions that
would not have been includible in the Member&#146;s gross income if received directly by him shall be
allocated to the Member&#146;s After-Tax Rollover Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <U><B>Valuation of the Trust Fund</B></U>. The Trust Fund shall be valued at Fair Market Value
by the Trustee on or as of each Valuation Date, with appropriate allocations and adjustments for
any items of income, expenses, gains and losses, and all other transactions since the prior
Valuation Date. The net income thus arrived at, exclusive of forfeitures (and net income thereon),
shall be allocated on a basis of Account balances and in a fair and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">nondiscriminatory manner according to the rules established by the Committee, and shall
reflect the interests of the Members during such Plan Year (or between Valuation Dates, if earlier)
in the Investment Options and in the Trust Fund. Unless paid by the Employer, all fees, expenses
and taxes levied or assessed against the Trust Fund shall be paid by the Trust Fund; provided,
however, that each Member shall bear any fees of the Trustee or Investment Option charged with
regard to maintaining his Account that are not paid by the Employer. The interest of each Member
in the Expedia Stock Option shall be expressed as shares of Expedia Stock. The interest of each
Member in the Investment Options (other than the Expedia Stock Option) shall be expressed in
accordance with the valuation methods and practices of the entity maintaining the Investment
Option. Each Member shall bear any fees of the Trustee or Investment Option charged with regard to
maintaining his Account that are not paid by the Employer, in its sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <U><B>Investment of Accounts</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the rules of the Committee, a Member may elect to have his Account and future
contributions made on his behalf to such Account invested in such percentages as permitted by the
Committee in one or more of the Investment Options, which shall be funds maintained or established
by a bank, trust company, insurance company, mutual fund or investment company, designated by the
Committee as Investment Options under this Section&nbsp;6.9. Of the designated Investment Options,
there shall be at least three (3)&nbsp;Investment Options (which together provide a broad range of
investment alternatives as contemplated under Section 404(c) of ERISA and the regulations
thereunder) and the Expedia Stock Option. From time to time the Committee may designate additional
Investment Options, withdraw the designation of Investment Options or change designated Investment
Options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon first entering into a salary reduction agreement with an Employer or upon request of
the Committee or at such other times permitted by the Committee, each Member shall elect the manner
in which his Account and future contributions made on his behalf to such Account are to be
invested. Unless specifically permitted by the Committee, an investment election shall apply
consistently to each sub-account, and future contributions to such Account shall be invested in the
same manner and proportion. Notwithstanding the foregoing, if a mutual fund or separate account is
designated by the Committee as a vehicle for investing contributions and the bank, trust company,
insurance company, mutual fund or investment company maintaining the mutual fund or separate
account or a third party administrator permits telephonic elections or electronic transmissions
regarding the manner in which a Member&#146;s Account and future contributions made on behalf of him are
invested, the Committee may provide for such telephonic elections or electronic transmissions. If
no election is made by the Member, the Member&#146;s Account and future contributions shall be invested
in a managed income fund or other Investment Option designated by the Committee. If the Member
fails to change his election, the previous investment election shall remain effective until the
Member affirmatively changes his investment election. Subject to the provisions of the governing
documents of the Investment Options involved, if there is a change in designated Investment Options
and a Member does not make a new election, he will be deemed to have designated investment in the
designated Investment Options most similar to those previously elected and in the same proportion
as previously elected. Subject to any limitations imposed by the Investment Options, a Member (or
in the event of the Member&#146;s death, the Member&#146;s Beneficiary) may change his election of
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">designated Investment Options with regard to future contributions and current Account Values
as of the first day of any Payroll Period (or at such additional times as may be permitted by the
Committee) by filing a new election with the Committee at such times and in such manner as may be
prescribed by the Committee and with such prior notice as specified by the Committee in advance of
the date the change is to become effective or, if telephonic elections or elections by electronic
transmission are permitted, with such notice as required by the bank, trust company, insurance
company, mutual fund or investment company maintaining the mutual fund or third party
administrator. Subject to the rules of the Investment Options and the Committee, including,
without limitation, rules restricting the availability of transfers and setting minimum or maximum
amounts that may be transferred and when transfers are permitted, a Member (or in the event of the
Member&#146;s death, the Member&#146;s Beneficiary) may transfer all or a part of his Account from one
Investment Option to another Investment Option in such percentages as permitted by the Committee.
All elections and transfers shall be subject to rules established by the Committee and by the bank,
trust company, mutual fund or investment company maintaining the Investment Option.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;With respect to a Member&#146;s Account, each Member shall be solely responsible for the
investment of his Account under the Plan. The fact that an Investment Option is available under
the Plan shall not be considered an investment recommendation. The Employer intends that the Plan
conform to Section 404(c) of ERISA and Department of Labor Regulation&nbsp;Section&nbsp;2550.404c-1 and that
the Plan and the Trust are operated and administered in accordance with such provisions. With
respect to any investment election or other direction by a Member, none of the Trustee, the Plan
Administrator, the Committee or the Employer shall be under any duty to question any such direction
of a Member (or, in the event of the Member&#146;s death, the Member&#146;s Beneficiary). The Trustee shall
comply as promptly as is practicable with the directions given by a Member or by a Beneficiary in
accordance with the terms of the Plan. None of the Trustee, the Plan Administrator, the Committee
or the Employer shall be responsible or liable for any loss or expense which may arise from or
result from compliance with any directions from the Member (or, in the event of the Member&#146;s death,
the Member&#146;s Beneficiary).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A Member may also direct the investment of any part of his Account to a brokerage account
(a &#147;Brokerage Account&#148;) maintained by an investment company selected by the Committee that allows
Members to invest in individual stocks, bonds, mutual funds and options, excluding Expedia Stock
and those mutual funds otherwise offered under the Plan. Investment through a Brokerage Account is
subject to terms and conditions as may be established by the applicable investment company from
time to time. Members who elect to invest through a Brokerage Account will be charged an annual
fee and transaction fees. As an express condition for establishing or maintaining a Brokerage
Account, a Member shall be required to execute such forms as may be required by the Committee or
investment company. A Member who maintains a Brokerage Account shall be deemed a &#147;named fiduciary&#148;
within the meaning of Section&nbsp;402(a)(1) of ERISA with respect to his Brokerage Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Section&nbsp;6.9, a Member&#146;s alternate payee under a &#147;qualified domestic
relations order,&#148; as defined in Code Section 414(p) or, in the event of a Member&#146;s death, the
Member&#146;s Beneficiary, shall have all rights of a Member.
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DISTRIBUTIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <U><B>General Rule</B></U>. Except as otherwise provided in this Article&nbsp;VII or prohibited by
law, a Member&#146;s vested Account balance under the Plan shall be available to the Member for
distribution at any time after any of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Member&#146;s retirement at or after his Normal Retirement Age;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Member&#146;s death or Disability; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Member&#146;s Termination of Employment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or as set forth in Article&nbsp;VIII or Article&nbsp;IX.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such distribution shall be made to the Member on or as soon as administratively feasible (and
in accordance with the Plan&#146;s administrative procedures) following the Benefit Starting Date
requested in writing by the Member (or in the event of the Member&#146;s death, his Beneficiary). The
Benefit Starting Date may not be more than ninety (90)&nbsp;days after such request and, except as
provided below, may not be less than thirty (30)&nbsp;days after such request. The Member&#146;s
distribution shall be based on the Value on the last Valuation Date prior to the date of actual
distribution (and any contributions made since that Valuation Date), provided that no distribution
may be made until the Committee has provided the Member with a notice regarding his rights and
benefits under the Plan not more than ninety (90)&nbsp;days or less than thirty (30)&nbsp;days prior to the
Member&#146;s Benefit Starting Date. Notwithstanding the foregoing, a Member may elect a Benefit
Starting Date earlier than thirty (30)&nbsp;days after receiving such notice from the Committee,
provided that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Member has been clearly informed that he has a right to a period of at
least thirty (30)&nbsp;days after receiving the notice to consider the decision of
whether or not to elect a distribution; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Member, after receiving the notice, affirmatively elects a
distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until the Benefit Starting Date, the Member&#146;s Account shall be retained in the Trust Fund and
revalued pursuant to Section&nbsp;6.8. Between the Benefit Starting Date and the actual date on which
distribution commences, the Member&#146;s Account shall be revalued pursuant to Section&nbsp;6.8 and,
therefore, shall continue to share in gains and losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <U><B>Death of a Member</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Death Prior to Commencement of Benefits</U>. If a Member shall die prior to his
Benefit Starting Date, the Member&#146;s Account shall be distributed to such Member&#146;s Spouse (or other
Beneficiary designated with the consent of his Spouse (if any) in accordance with</div>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;7.5) as soon as administratively feasible after the Beneficiary&#146;s election to receive
a distribution, but no later than the last day of the year following the year of the Member&#146;s
death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Death After Commencement of Benefits</U>. In the event that a Member dies on or after
his Benefit Starting Date, his surviving Spouse or other Beneficiary (designated with the consent
of his Spouse (if any) in accordance with Section&nbsp;7.5) shall receive such benefits on the last day
of the calendar year following the year of the Member&#146;s death (or at any time earlier elected by
the Beneficiary).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Death of Spouse or Beneficiary Before Payment</U>. If a Spouse or Beneficiary
entitled to receive benefits hereunder as a result of the previous death of the Member dies prior
to commencement of such benefit, the Value of the Account allocable to the Spouse or other
Beneficiary shall be paid to the legal representative of the estate of such Spouse or other
Beneficiary. A Member&#146;s election of a nonspousal Beneficiary is revocable by the Member at any
time before his death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <U><B>Form of Retirement Benefit Distributions</B></U>. A Member or, in the event of the
Member&#146;s death, the Member&#146;s Beneficiary, shall have the vested portion of the Member&#146;s Accrued
Benefit distributed in a lump sum payment consisting of (i)&nbsp;cash equal to the Fair Market Value of
the interest of the Member&#146;s Account in the Investment Options (including, if elected by the Member
(or, in the event of the Member&#146;s death, the Member&#146;s Beneficiary), the Fair Market Value of the
interest of the Member&#146;s Account in Expedia Stock) and (ii)&nbsp;if elected by the Member, Expedia Stock
representing all or a portion of the Fair Market Value of the interest of the Member&#146;s Account in
Expedia Stock. Fractional shares of Expedia Stock shall be aggregated to create whole shares of
Expedia Stock, which shall be distributed in the form of whole shares of Expedia Stock, if the
Member or, in the event of the Member&#146;s death, the Member&#146;s Beneficiary, elects to receive all or a
portion of his interest in Expedia Stock. Notwithstanding the foregoing, cash shall be distributed
in lieu of excess fractional shares of Expedia Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <U><B>Proof of Death and Right of Beneficiary</B></U>. The Committee may require and rely upon
such proof of death and such evidence of the right of any Beneficiary to receive the undistributed
vested Value of the Account of a deceased Member as the Committee may deem proper, and its
determination of death and of the right of such Beneficiary to receive payments shall be
conclusive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. <U><B>Consent of Spouse</B></U>. Whenever the terms of the Plan require that the consent of a
Member&#146;s Spouse be obtained, such consent shall be valid only if it is in writing, contains an
acknowledgment by such Spouse of the effect of such consent, designates a Beneficiary (or a form of
benefits) which may not be changed without the consent of the Spouse (unless such consent
specifically permits designation by the Member without any requirement of further consent of the
Spouse) and is witnessed either by a representative of the Plan or by a notary public; provided,
however, that, in accordance with Treasury Regulation&nbsp;Section&nbsp;1.401(a)-20, the consent of a
Member&#146;s Spouse shall not be required in the event that the Member establishes to the satisfaction
of the Plan Administrator that he has no Spouse, that such Spouse cannot be located or that such
other circumstances exist as may be permitted under applicable Treasury regulations. Any consent
of a Member&#146;s Spouse obtained in accordance with the provision of
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">this Section&nbsp;7.5 shall be revocable by the Member during his lifetime without the consent of
the Member&#146;s Spouse. Unless a qualified domestic relations order, as defined in Code Section
414(p), requires otherwise, a Spouse&#146;s consent shall not be required (and, hence, shall for
purposes of the Plan be deemed given) if the Member is legally separated or the Member has been
abandoned (within the meaning of local law) and the Member has a court order to such effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. <U><B>Cash-Outs</B></U>. Notwithstanding any other provision of the Plan to the contrary, if
the Member&#146;s vested Accrued Benefit is equal to or less than five thousand dollars ($5,000) at the
time of his Termination of Employment (or is otherwise immediately distributable) or upon any
Valuation Date (or such other dates as the Committee may determine in accordance with its rules and
procedures) thereafter prior to his Benefit Starting Date, such vested Account balance shall be
distributed in the form of a lump sum distribution without the consent of the Member. Solely for
purposes of this Section&nbsp;7.6, the vested portion of a Member&#146;s Accrued Benefit shall be determined
without regard to the Value of the Member&#146;s Rollover Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of an automatic distribution to be made in accordance with the provisions of this
Section&nbsp;7.6 in an amount that exceeds one thousand dollars ($1,000), if the Member does not elect
to have such distribution paid directly to an Eligible Retirement Plan, as defined in Section&nbsp;7.9,
specified by the Member in a Direct Rollover, as defined in Section&nbsp;7.9, or to receive the
distribution directly in accordance with the terms of the Plan, then the Plan Administrator shall
pay the distribution in a Direct Rollover, as defined in Section&nbsp;7.9, to an individual retirement
plan designated by the Plan Administrator.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Limitation on Distribution From </B><B>401(k)</B><B> Accounts, Catch-Up Contribution
Accounts and QNEC Accounts</B></U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything else herein and without expanding the rights with regard to
distributions otherwise set forth herein, no distribution shall be made from a Participant&#146;s 401(k)
Account, Catch-Up Contribution Account or QNEC Account prior to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Separation from employment, death or Disability;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Termination of the Plan without establishment or maintenance of another defined
contribution plan (other than an employee stock ownership plan as defined in Code Section
4975(e)(7)), provided any distribution is a lump sum distribution and otherwise satisfies Code
Section&nbsp;401(k)(10);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The attainment of age fifty-nine and one-half (59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>) by the Participant; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the case of the 401(k) Account and the Catch-Up Contribution Account, a Participant
experiencing a Hardship, as defined in Section&nbsp;9.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing limitations on distributions are intended to comply with the requirements of
Code Section&nbsp;401(k)(2)(B) and shall therefore be interpreted in accordance with such Code Section
and the regulations thereunder.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. <U><B>Eligibility for Distributions</B></U>. Notwithstanding anything else herein, a Member
shall be eligible to receive payment, or to commence payment, under the Plan of his benefits no
later than sixty (60)&nbsp;days after the end of the Plan Year in which the latest of the following
occurs:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Member&#146;s attainment of age fifty-five (55);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The tenth (10th) anniversary of the year in which the Member began participation in the
Plan; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Member&#146;s Termination of Employment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9. <U><B>Rollover Provisions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
Distributee&#146;s election under this Section&nbsp;7.9, a Distributee may elect, at the time and in the
manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct
Rollover. The Committee shall have the authority to set minimums and maximums with respect to
Eligible Rollover Distributions and adopt other guidelines and administrative procedures that are
necessary or desirable to administer the direct rollover rules under this Section&nbsp;7.9.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;An &#147;Eligible Rollover Distribution&#148; is any distribution of all or any portion of the
balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not
include:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy)
of the Distributee or the joint lives (or joint life expectancies) of the
Distributee or the Distributee&#146;s designated Beneficiary, or for a specified period
of ten (10)&nbsp;years or more;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any distribution to the extent such distribution is required under Code
Section&nbsp;401(a)(9);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation with
respect to Expedia Stock);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any amount that is distributed from the Plan or any other plan on account
of hardship, including, without limitation, any Hardship distribution of 401(k)
Contributions under Section&nbsp;9.1 of the Plan or other plan or as otherwise described
in Code Section&nbsp;401(k)(2)(B)(i)(IV); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any other distribution that is hereafter not an eligible rollover
distribution under applicable law.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, a portion of a distribution shall not fail to be an Eligible
Rollover Distribution merely because a portion consists of after-tax employee contributions which
are not includible in gross income; provided, however, such portion may be transferred only to an
individual retirement account or annuity described in Code Section 408(a) or 408(b), or to a
qualified defined contribution plan described in Code Section 401(a) or 403(a) that agrees to
separately account for amounts so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion of such distribution which
is not so includible.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;An &#147;Eligible Retirement Plan&#148; is an individual retirement account described in Code
Section&nbsp;408(a), an individual retirement annuity described in Code Section&nbsp;408(b), an annuity plan
described in Code Section&nbsp;403(a), or a qualified trust described in Code Section&nbsp;401(a), an annuity
contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan that accepts the Distributee&#146;s Eligible Rollover
Distribution. The definition of Eligible Retirement Plan shall also apply in the case of a
distribution to a surviving Spouse, or to a Spouse or former Spouse who is the alternate payee
under a qualified domestic relations order, as defined in Code Section&nbsp;414(p).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A &#147;Distributee&#148; includes a Member. In addition, the Member&#146;s surviving Spouse and the
Member&#146;s Spouse or former Spouse who is the alternate payee under a qualified domestic relations
order, as defined in Code Section&nbsp;414(p), are Distributees with regard to the interest of the
Spouse or former Spouse.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;A &#147;Direct Rollover&#148; is a payment by the Plan to the Eligible Retirement Plan specified by
the Distributee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10. <U><B>Unclaimed Payments</B></U>. In the event that all, or any portion, of the distribution
payable to a Member or his Beneficiary hereunder shall, at the expiration of five (5)&nbsp;years after
it shall become payable, remain unpaid solely by reason of the inability of the Plan Administrator,
after sending a registered letter, return receipt requested, to the last known address, and after
requesting the cooperation of the Social Security Administration or Pension Benefit Guaranty
Corporation to ascertain the whereabouts of such Member or his Beneficiary, the amount so
distributable shall be deposited into a suspense account and used to reduce future Employer
contributions. In the event a Member or Beneficiary is located subsequent to his benefit being
forfeited, such benefit shall be restored by the Employer.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MINIMUM DISTRIBUTION REQUIREMENTS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <U><B>Definitions</B></U>. The definitions in this Section&nbsp;8.1 apply to this Article&nbsp;VIII and
unless otherwise specifically stated in another section hereof do not apply to any other section of
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Designated Beneficiary</U>. The individual who is designated as a Member&#146;s
Beneficiary under the Plan and is the designated beneficiary under Code Section&nbsp;401(a)(9) and
Treasury Regulation&nbsp;Section&nbsp;1.401(a)(9)-1, Q&#038;A-4.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Distribution Calendar Year</U>. A calendar year for which a minimum distribution is
required. For distributions commencing before the Member&#146;s death, the first Distribution Calendar
Year shall be the calendar year immediately preceding the calendar year which contains the Member&#146;s
Required Beginning Date. For distributions commencing after the Member&#146;s death, the first
Distribution Calendar Year is the calendar year in which distributions are required to commence
under Section&nbsp;8.2(b)(ii). The required minimum distribution for the Member&#146;s first Distribution
Calendar Year will be made on or before the Member&#146;s Required Beginning Date. The required minimum
distribution for other Distribution Calendar Years, including the required minimum distribution for
the Distribution Calendar Year in which the Member&#146;s Required Beginning Date occurs, shall be made
on or before December&nbsp;31 of that Distribution Calendar Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Life Expectancy</U>. Life expectancy as computed by use of the Single Life Table in
Treasury Regulation&nbsp;Section&nbsp;1.401(a)(9)-9.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Member&#146;s Account Balance</U>. The Member&#146;s Account Balance as of the last Valuation
Date in the Valuation Calendar Year increased by the amount of any contributions made and allocated
to the Member&#146;s Account Balance as of dates in the Valuation Calendar Year after the Valuation Date
and decreased by distributions made in the Valuation Calendar Year after the Valuation Date. The
Member&#146;s Account Balance for the Valuation Calendar Year includes any amounts rolled over or
transferred to the Plan with respect to the Member (as adjusted for earnings and losses thereon)
either in the Valuation Calendar Year or in the Distribution Calendar Year if distributed or
transferred in the Valuation Calendar Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Required Beginning Date</U>. The April 1st following the end of the calendar year in
which occurs the later of (x)&nbsp;the Member&#146;s attainment of age seventy and one-half (70<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>) and (y)&nbsp;the
Member&#146;s Termination of Employment. Notwithstanding the foregoing, with respect to a Member who is
a five percent (5%) owner, as defined in Code Section&nbsp;416(i), the &#147;Required Beginning Date&#148; shall
be the April 1st following the end of the calendar year in which the Member attains age seventy and
one-half (70<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>), whether or not he is then employed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Valuation Calendar Year</U>. The calendar year immediately preceding the Distribution
Calendar Year.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <U><B>Required Commencement Date</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Required Minimum Distributions</U>. Notwithstanding Sections&nbsp;7.2 and 7.5, the
provisions of this Section&nbsp;8.2 shall apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The requirements of this Section&nbsp;8.2 shall take precedence over any
inconsistent provisions of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All distributions required under this Section&nbsp;8.2 shall be determined and
made in accordance with Treasury Regulations under Code Section&nbsp;401(a)(9).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Time and Manner of Distribution</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Member&#146;s interest in his Account shall be distributed, or commence to
be distributed, to the Member no later than the Required Beginning Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Member dies before distributions of his benefits commence, the
Member&#146;s entire interest in his Account shall be distributed, or shall commence to
be distributed, no later than:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Member&#146;s surviving Spouse is the Member&#146;s sole Designated
Beneficiary, then distributions to the surviving Spouse shall commence by
the later of (x)&nbsp;December&nbsp;31 of the calendar year immediately following the
calendar year in which the Member died or (y)&nbsp;December&nbsp;31 of the calendar
year in which the Member would have attained age seventy and one-half (70<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Member&#146;s surviving Spouse is not the Member&#146;s sole
Designated Beneficiary, then distributions to the Designated Beneficiary
shall commence by December&nbsp;31 of the calendar year immediately following the
calendar year in which the Member died.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If there is no Designated Beneficiary as of September&nbsp;30 of the
calendar year following the calendar year of the Member&#146;s death, the
Member&#146;s entire interest in his Account shall be distributed by December&nbsp;31
of the calendar year containing the fifth (5th) anniversary of the Member&#146;s
death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If the Member&#146;s surviving Spouse is the Member&#146;s sole Designated
Beneficiary and the surviving Spouse dies after the Member but before
distributions to the surviving Spouse commence, this Section&nbsp;8.2(b), other
than Section&nbsp;8.2(b)(i), shall apply as if the surviving Spouse were the
Member.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of this Section&nbsp;8.2(b)(ii) and Section&nbsp;8.2(d), unless Section&nbsp;8.2(b)(ii)(D) applies,
distributions shall be considered to commence on the Member&#146;s Required Beginning Date. If Section
8.2(b)(ii)(D) applies, distributions shall be considered to commence on the date distributions are
required to commence to the surviving Spouse under Section&nbsp;8.2(b)(i). If distributions under an
annuity purchased from an insurance company irrevocably commence to the Member before the Member&#146;s
Required Beginning Date (or to the Member&#146;s surviving Spouse before the date distributions are
required to commence to the surviving Spouse under Section&nbsp;8.2(b)(ii)(A)), the date distributions
are considered to commence shall be the date distributions actually commence.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless the Member&#146;s interest in his Account is distributed in the form of
an annuity purchased from an insurance company or in a single sum on or before the
Required Beginning Date, as of the first Distribution Calendar Year distributions
shall be made in accordance with Sections&nbsp;8.2(c) and 8.2(d). If the Member&#146;s
interest in his Account is distributed in the form of an annuity purchased from an
insurance company, distributions thereunder shall be made in accordance with the
requirements of Code Section&nbsp;401(a)(9) and the Treasury Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Required Minimum Distributions During Member&#146;s Lifetime</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the Member&#146;s lifetime, the minimum amount that shall be distributed
for each Distribution Calendar Year is the lesser of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The quotient obtained by dividing the Member&#146;s Account Balance by
the distribution period in the Uniform Lifetime Table set forth in Treasury
Regulation&nbsp;Section&nbsp;1.401(a)(9)-9, using the Member&#146;s age as of the Member&#146;s
birthday in the Distribution Calendar Year; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Member&#146;s sole Designated Beneficiary for the Distribution
Calendar Year is the Member&#146;s Spouse, the quotient obtained by dividing the
Member&#146;s Account Balance by the number in the Joint and Last Survivor Table
set forth in Treasury Regulation&nbsp;Section&nbsp;1.401(a)(9)-9, using the Member&#146;s
and Spouse&#146;s attained ages as of the Member&#146;s and Spouse&#146;s birthdays,
respectively, in the Distribution Calendar Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Required minimum distributions shall be determined under this Section
8.2(c) beginning with the first Distribution Calendar Year and up to and including
the Distribution Calendar Year that includes the Member&#146;s date of death.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Required Minimum Distributions After Member&#146;s Death</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Member dies on or after the date distributions commence and there is
a Designated Beneficiary, the minimum amount that shall be distributed for each
Distribution Calendar Year after the year of the Member&#146;s death is the quotient
obtained by dividing the Member&#146;s Account Balance by the longer of the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">remaining Life Expectancy of the Member or the remaining Life Expectancy of the
Member&#146;s Designated Beneficiary, determined as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Member&#146;s remaining Life Expectancy shall be calculated using
the age of the Member in the year of death (reduced by one for each
subsequent calendar year in which such calculation is performed).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Member&#146;s surviving Spouse is the Member&#146;s sole Designated
Beneficiary, the remaining Life Expectancy of the surviving Spouse shall be
calculated for each Distribution Calendar Year after the year of the
Member&#146;s death using the surviving Spouse&#146;s age as of the Spouse&#146;s birthday
in that year. For Distribution Calendar Years after the year of the
surviving Spouse&#146;s death, the remaining Life Expectancy of the surviving
Spouse shall be calculated using the age of the surviving Spouse as of the
Spouse&#146;s birthday in the calendar year of the Spouse&#146;s death (reduced by one
for each subsequent calendar year in which such calculation is performed).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If the Member&#146;s surviving Spouse is not the Member&#146;s sole
Designated Beneficiary, the Designated Beneficiary&#146;s remaining Life
Expectancy shall be calculated using the age of the Designated Beneficiary
in the year following the year of the Member&#146;s death (reduced by one for
each subsequent calendar year in which such calculation is performed).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If the Member dies on or after the date distributions commence and
there is no Designated Beneficiary as of September&nbsp;30 of the calendar year
following the calendar year of the Member&#146;s death, the minimum amount that
shall be distributed for each Distribution Calendar Year after the calendar
year of the Member&#146;s death is the quotient obtained by dividing the Member&#146;s
Account Balance by the Member&#146;s remaining Life Expectancy calculated using
the age of the Member in the calendar year of death (reduced by one for each
subsequent calendar year in which such calculation is performed).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Member dies before the date distributions commence and there is a
Designated Beneficiary, the minimum amount that shall be distributed for each
Distribution Calendar Year after the calendar year of the Member&#146;s death is the
quotient obtained by dividing the Member&#146;s Account Balance by the remaining Life
Expectancy of the Member&#146;s Designated Beneficiary, determined as provided in Section
8.2(d)(i).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Member dies before the date distributions commence and there
is no Designated Beneficiary as of September&nbsp;30 of the calendar year
following the calendar year of the Member&#146;s death, distribution of the
Member&#146;s entire interest in his Account shall be completed by
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">December&nbsp;31 of the calendar year containing the fifth (5th) anniversary
of the Member&#146;s death.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Member dies before the date distributions commence, the
Member&#146;s surviving Spouse is the Member&#146;s sole Designated Beneficiary, and
the surviving Spouse dies before distributions are required to commence to
the surviving Spouse under Section&nbsp;8.2(b)(ii)(A), this Section&nbsp;8.2(d)(ii)
shall be applied as if the surviving Spouse were the Member.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>IN-SERVICE WITHDRAWALS AND LOANS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <U><B>In-Service Distributions for Hardship</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event of a Participant&#146;s Hardship (as hereinafter defined), the Participant shall
have the right to withdraw, up to the amount of the Hardship, all or a part of the vested portion
of his Account, other than his QNEC Account (but, with respect to a 401(k) Account and Catch-Up
Contribution Account, not in excess of the actual contributions on his behalf to such Accounts),
upon such prior notice to the Committee as the Committee may require in accordance with its rules
and regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For the purposes of this Section&nbsp;9.1, a Participant shall experience a &#147;Hardship&#148; if, and
only if, such Participant experiences an immediate and heavy financial need (as defined in Section
9.1(c)) and the withdrawal is necessary to satisfy the financial need of a Participant (as defined
in Section&nbsp;9.1(d)).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A Participant will be deemed to experience an immediate and heavy financial need if, and
only if, he needs the withdrawal for one of the following reasons:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to pay for expenses for (or necessary to obtain) medical care that would be
deductible by the Participant under Code Section 213(d) (determined without regard
to whether the expenses exceed seven and one-half percent (7.5%) of adjusted gross
income);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to pay costs directly related to the purchase of a principal residence for
the Participant (excluding mortgage payments);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to pay tuition and related educational fees and room and board expenses,
for up to the next twelve (12)&nbsp;months of post-secondary education for the
Participant, or the Participant&#146;s Spouse, children or dependents (as defined in Code
Section&nbsp;152, without regard to Code Sections&nbsp;152(b)(1), (b)(2) and (d)(1)(B));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to pay amounts necessary to prevent the eviction of the Participant from
the Participant&#146;s principal residence or foreclosure on the mortgage of that
residence; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to pay burial or funeral expenses for the Participant&#146;s deceased parent,
spouse, children or dependents (as defined in Code Section&nbsp;152, without regard to
Code Section&nbsp;152(d)(1)(B)); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to pay expenses for the repair of damage to the Participant&#146;s principal
residence that would qualify for the casualty deduction under Code Section&nbsp;165
(determined without regard to whether the loss exceeds ten percent (10%) of adjusted
gross income).
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A withdrawal will be deemed necessary to satisfy the financial need of a Participant if,
and only if:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The withdrawal is not in excess of the amount of the immediate and heavy
financial need of the Participant. The amount of an immediate and heavy financial
need may include any amounts necessary to pay any federal, state or local income
taxes or penalties reasonably anticipated to result from the distribution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant has obtained all distributions, other than Hardship
distributions, and all nontaxable loans currently available under all plans
maintained by the Employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In the event the Participant makes a withdrawal pursuant to this Section&nbsp;9.1 that consists
of amounts from a 401(k) Account or Catch-Up Contribution Account, then the Participant shall be
suspended from making 401(k) Contributions, Catch-Up Contributions and After-Tax Contributions,
pre-tax elective or after-tax voluntary contributions to any other qualified or nonqualified plan
maintained by the Employer (which shall be deemed to include all qualified and nonqualified plans
of deferred compensation, other than the mandatory employee contribution portion of a defined
benefit plan, stock option, stock purchase or similar plan, but shall not include health or welfare
benefit plans) for six (6)&nbsp;months following the withdrawal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All withdrawals shall be on the basis of the Value of the Participant&#146;s Account on the
applicable Valuation Date coinciding with or immediately preceding the date of withdrawal. The
Committee may establish rules and regulations, which do not discriminate in favor of officers,
stockholders and Highly Compensated Employees, as to procedures, forms and required notice periods
for withdrawal requests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <U><B>Distribution of Rollover Account</B></U>. A Participant shall, at any time, have the
right to withdraw any or all amounts in his Rollover Account upon such prior notice to the
Committee and in such manner as prescribed by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <U><B>Distribution of After-Tax Account</B></U>. A Participant shall, at any time, have the
right to withdraw any or all amounts in his After-Tax Account upon such prior notice to the
Committee and in such manner as prescribed by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. <U><B>In-Service Distributions on or After Age 59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT></B></U>. A Participant shall have the right
to receive any portion of the vested portion of his Account as requested by the Participant, on or
after his attainment of age fifty-nine and one-half (59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>), upon such prior notice to the Committee
and in such manner as prescribed by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. <U><B>Loans to Participants</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon application of any Participant actively employed by the Employer (&#147;Borrower&#148;) to the
Committee, the Committee shall direct the Trustee to make a loan or loans to such Borrower from the
Loan Available Account (as defined in Section&nbsp;9.5(f)) of the Borrower. The minimum amount of any
loan shall be one thousand dollars ($1,000). All such loans shall (i)&nbsp;be adequately secured, (ii)
bear interest at the prevailing commercial rate determined by the</div>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Committee based on a review of prevailing commercial rates in the Employer&#146;s geographical
region, (iii)&nbsp;be subject to such charges as imposed by the Committee in accordance with a uniform
nondiscriminatory policy, and (iv)&nbsp;be repaid within a specified period not longer than five (5)
years in substantially level amortized payments by means of payroll deduction, provided that such
period may exceed five (5)&nbsp;years (but may not exceed fifteen (15)&nbsp;years) if the loan is used to
acquire any dwelling unit which within a reasonable time is to be used (determined at the time the
loan is made) as the principal residence of the Participant; and further provided that all loans
made to Participants while actively employed by the Employer shall become immediately due and
payable within ninety (90)&nbsp;days following Termination of Employment unless Section&nbsp;9.5(e) is
applicable. With respect to a Military Leave of Absence, loan repayments will be suspended under
the Plan as permitted under Code Section&nbsp;414(u)(4). Any loan shall be subject to such additional
acceleration provisions as shall be determined by the Committee to be commercially reasonable at
the time that the loan is made. In no event shall the total of any such loan or loans to any
Borrower from the Plan and any other plan qualified under Code Section 401(a) required to be
aggregated with the Plan pursuant to Code Section 72(p) exceed the lesser of fifty percent (50%) of
the vested Account of the Borrower under the Plan, or fifty thousand dollars ($50,000), less the
excess (if any) of the highest amount of loans outstanding within the twelve (12)&nbsp;month period
ending on the day prior to the date the loan is made over the outstanding balance of loans
outstanding on the date the loan is made. Only two (2)&nbsp;loans to a Participant may be outstanding
at any time but only one (1)&nbsp;loan may be outstanding that is used to acquire any dwelling unit
which within a reasonable time is to be used (determined at the time the loan is made) as the
principal residence of the Borrower (a &#147;Home Loan&#148;) and only one loan may be outstanding at any
time that is not a Home Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As security for such loan or loans, the Borrower shall pledge the portion of his Loan
Available Account represented by the loan and earnings thereon. Loans to Borrowers shall be repaid
through deductions from Compensation made on a level basis during each applicable Payroll Period
or, during periods of employment during which the Borrower does not receive Compensation at a rate
of Compensation (after income and employment tax withholding) that is equal to or greater than the
total level repayment amount required under the terms of the loan, by check payable to the Plan.
In the event that the Borrower does not repay any loan or the interest thereon within the time
provided in Section&nbsp;9.5(a) and upon the schedules set forth in the promissory note representing the
loan (or if later, the last day of any grace period established by the Committee, which such grace
period shall not extend beyond the last day of the calendar quarter following the calendar quarter
in which an installment payment is due), the Committee shall cause the Trustee to deduct the total
amount of the loan outstanding, and any interest and other charges then due and owing, from any
payment or distribution from the Borrower&#146;s Loan Available Account securing the loan to which such
Borrower may be entitled under the terms of the Plan. If under the terms of the Plan, payment or
distribution is not then permitted, the Borrower will have a deemed distribution for tax purposes,
but the loan will remain outstanding and the Committee shall deduct the total amount of the loan
outstanding, and any interest and other charges then due and owing, from the portion of the
Borrower&#146;s Loan Available Account securing the loan as soon as a distribution or withdrawal is then
permitted at law from such portion of the Loan Available Account (without regard to limitations in
the Plan that are narrower than required by the Code). Any loan hereunder shall be considered an
investment of the Borrower&#146;s Loan Available Account, and any loan shall reduce the investment of
the Borrower in each respective Investment Option in the applicable Loan Available Account, on a</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proportionate basis. When a loan is repaid, each repayment shall be invested in the manner
and same proportion that the Borrower has elected for his current contributions to his Account and
shall be credited in the reverse order of priority as set forth in Section&nbsp;9.5(f).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any other provision to the contrary, except as provided in
Section&nbsp;9.5(b)(ii), in the event that a Borrower is granted a leave of absence
without Compensation or at a rate of Compensation (after income and employment tax
withholding) that is less than the total level repayment amount required under the
terms of the loan(s), the Borrower may elect to discontinue repayments on his
outstanding loan during his absence without the loan being deemed in default,
provided that such period of nonpayment shall not exceed the Loan Suspension Period.
Following the Borrower&#146;s Loan Suspension Period, the duration of the loan may, at
the election of the Borrower, be extended to a period equal to the Loan Suspension
Period, and during such extended term following the Loan Suspension Period, payments
shall be made at the same rate as in effect at the commencement of the leave of
absence. Notwithstanding the foregoing, the loan must be repaid by the latest date
permitted under the Plan and the loan payments due after the Loan Suspension Period
must not be less than those required under the terms of the loan prior to the leave
of absence.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that an extension under Section&nbsp;9.5(b)(i) would cause the
term of a loan to exceed the maximum permitted term under Section&nbsp;9.5(a), the
Borrower shall be provided a revised repayment schedule with respect to the loan
showing the increased amount of level repayment amounts required to be made
following the Loan Suspension Period so that the loan shall be repaid during a
period which shall not extend beyond such maximum permitted duration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that either Section&nbsp;9.5(b)(i) or Section&nbsp;9.5(b)(ii) is
applicable to a loan, the Borrower shall at the request of the Committee execute and
deliver an amended promissory note, in such form as the Committee shall provide,
reflecting the extended term of the loan or revised payment schedule, or both, as
the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &#147;Loan Suspension Period&#148; shall mean the period during which a Participant
discontinues payments on a loan pursuant to Section&nbsp;9.5(b)(i) and continuing until
the earlier of (i)&nbsp;the termination of the Participant&#146;s leave of absence or (ii)&nbsp;one
(1)&nbsp;year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event any loan remains outstanding at the time a distribution (other than an
additional loan) is otherwise scheduled to occur and such distribution would reduce the prescribed
security for, or otherwise violate limitations with regard to, the loan, then the amount of the
distribution will be reduced by all or a portion of the outstanding loans to prevent such
reduction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A loan may be prepaid in full at any time.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Notwithstanding the foregoing, a Borrower who has a loan (or loans) outstanding under a
Historic Plan or another plan qualified under Code Section 401(a) which is transferred to the Plan
by trustee-to-trustee transfer or as a result of the merger of another plan qualified under Code
Section 401(a) into the Plan shall be entitled to keep such loan (or loans) outstanding under the
Plan until the loan (or loans) is repaid pursuant to the terms of such outstanding loan (or loans).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &#147;Loan Available Account&#148; is defined for purposes of this Section&nbsp;9.5 as the vested portion
of the following sub-accounts of a Participant in the following order of priority: the Rollover
Account, the 401(k) Account, the Catch-Up Contribution Account, the After-Tax Account, the vested
portion of the Matching Contribution Account, the vested portion of the Profit Sharing Account and
then the QNEC Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;No loan shall be made in the event that the interest rate required to be charged pursuant
to Section&nbsp;9.5(a)(ii) would violate any applicable usury law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Committee shall administer this Section&nbsp;9.5 pursuant to the foregoing and such
additional rules and regulations as it shall promulgate in accordance with Code Section 72(p) and
any Treasury Regulations thereunder and Department of Labor Regulation&nbsp;Section&nbsp;2550.408b-1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. <U><B>Form of In-Service Distributions and Loans</B></U>. Distributions to a Participant
pursuant to this Article&nbsp;IX shall be made in a cash lump sum; provided that, to the extent the
Participant&#146;s Account is invested in Expedia Stock, the Participant may elect to receive such
portion in Expedia Stock.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE X</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>VOTING AND OTHER RIGHTS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <U><B>Voting of Expedia Stock</B></U>. Each Member (or, in the event of the Member&#146;s death,
the Member&#146;s Beneficiary) shall be entitled to instruct the Trustee as to the manner in which the
Expedia Stock held in the Member&#146;s Account shall be voted on each matter brought before an annual
or special stockholders&#146; meeting of the Company. Before each such meeting of stockholders, the
Company shall cause to be furnished to each Member (or, in the event of the Member&#146;s death, the
Member&#146;s Beneficiary) a copy of all proxy solicitation material, together with a form requesting
confidential instructions to be given to the Trustee on how the Expedia Stock attributable to the
Member&#146;s Account shall be voted on each such matter. Upon timely receipt of such instructions, the
Trustee shall on each such matter vote such Expedia Stock as instructed except as otherwise
required by ERISA. The instructions received by the Trustee from Members (or Beneficiaries, as the
case may be) shall be held by the Trustee in confidence and shall not be divulged or released to
any person, including officers or employees of the Company or any Affiliate. Where no such voting
instructions have been received by the Trustee, the Trustee shall vote such Expedia Stock as to
which timely instructions were not received by the Trustee in the same proportion as it votes
shares of Expedia Stock as to which timely instructions were received by the Trustee in accordance
with ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <U><B>Tender and Exchange Offers on Expedia Stock</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Member (or, in the event of the Member&#146;s death, the Member&#146;s Beneficiary) shall have
the right, based upon the Expedia Stock held in the Member&#146;s Account, to direct the Trustee in
writing as to the manner in which to respond to a tender or exchange offer for such Expedia Stock
and the Trustee shall tender or not tender such Expedia Stock for each Member&#146;s Account based upon
such instructions. The Company shall utilize its best efforts to timely distribute or cause to be
distributed to each Member (or Beneficiary, as the case may be) such identical written information
(if any) as will be distributed to stockholders of the Company in connection with any such tender
or exchange offer and a tender or exchange offer instruction form for return to the Trustee or its
designee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The form described in Section&nbsp;10.2(a) shall show the number of full shares of Expedia
Stock attributable to the Member&#146;s Account (whether or not vested) and shall provide a means for
him to (i)&nbsp;instruct the Trustee whether or not to tender such shares and (ii)&nbsp;specify the
Investment Option under the Plan in which the proceeds of any sale shall be invested in the event
such shares are sold pursuant to the tender offer. Such form shall also advise each Member with an
investment in Expedia Stock that, in the event the Trustee is not provided with tender or exchange
instructions, the Trustee shall not tender or exchange shares of Expedia Stock as to which timely
instructions were not received by the Trustee. Such form shall further advise that, in the event a
Member&#146;s Expedia Stock is sold and the Member has not specified the Investment Option in which the
proceeds shall be invested, such proceeds shall be invested in a managed income fund, until a
further investment election is made by the Member pursuant to the Plan. Except for the foregoing,
the Company shall not provide to the Member any information or guidance not provided to all
stockholders. Upon receipt of such instructions, the Trustee shall</div>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">tender or not tender (or withdraw from tender) or exchange such Expedia Stock in accordance
with such instructions, and the Trustee shall not tender or exchange any such shares of Expedia
Stock as to which timely instructions were not received by the Trustee and any shares of Expedia
Stock not credited to Members&#146; Accounts but held by the Plan. Except as may be required by law,
instruction forms received from the Member shall be retained by the Trustee and shall not be
provided to the Company or to any officer or employee thereof or to any other person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. <U><B>Procedures of the Company With Respect to Voting and Tender Instructions</B></U>. In
implementing the foregoing procedures, the Company will act fairly, in the best interests of each
Member and in a manner which will not impose undue pressure on any Member as to what tender or
exchange offer instructions he should give to the Trustee. The giving of an instruction to the
Trustee to tender or exchange Expedia Stock shall not be deemed to constitute withdrawal or
suspension from the Plan or forfeiture of any portion of a Member&#146;s interest in the Plan. Accounts
shall be adjusted appropriately to reflect the Trustee&#146;s execution of their instructions, or if no
instructions were received, no adjustment shall be made to the extent the Trustee does not tender
or exchange any such shares of Expedia Stock as to which timely instructions were not received by
the Trustee. Proceeds resulting from the sale of any Expedia Stock shall be invested in the
Investment Option specified by the Member in his instructions to the Trustee, and, in the absence
of such instructions, such proceeds shall be invested in the money market fund, until a further
investment election is made by the Member pursuant to the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. <U><B>Member Deemed Named Fiduciary</B></U>. Notwithstanding anything in the Plan to the
contrary, each Member is, for purposes of this Article&nbsp;X, hereby designated a &#147;named fiduciary,&#148;
within the meaning of Section&nbsp;402(a)(1) of ERISA, with regard to his Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. <U><B>Confidentiality</B></U>. It is intended that the Expedia Stock Option shall be
administered and operated in accordance with Section 404(c) of ERISA and the regulations
thereunder. For such purposes, the Trustee shall be the identified fiduciary and shall be
responsible for, without limitation, the implementation and monitoring of confidentiality
procedures.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XI</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PAYMENT OF BENEFITS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <U><B>Payments for Incompetent Persons</B></U>. If the Committee shall find that any person
to whom a benefit is payable under the Plan is unable to care for his affairs because of illness or
accident, any payment due (unless a prior claim therefor shall have been made by a duly appointed
guardian, committee or other legal representative) may be paid to the Spouse, child, grandchild,
parent, brother or sister of such person, or to any person deemed by the Committee to have incurred
expense for such person otherwise entitled to payment. Any such payment shall be a complete
discharge of any liability under the Plan therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <U><B>Spendthrift</B></U>. Except as provided by Code Section&nbsp;401(a)(13) or other applicable
law, no benefit payable at any time under the Plan shall be subject in any manner to alienation,
anticipation, sale, transfer, assignment, pledge, attachment or encumbrance of any kind. No
benefit and no fund established in connection with the Plan shall in any manner be subject to the
debts or liabilities of any person entitled to such benefit. This Section&nbsp;11.2 shall also apply to
the creation, assignment or recognition of a right to any benefit payable with respect to a Member
pursuant to a domestic relations order, unless such order is determined to be a &#147;qualified domestic
relations order,&#148; as defined in Code Section&nbsp;414(p), or any domestic relations order entered before
January&nbsp;1, 1985. A qualified domestic relations order may direct that an alternate payee receive a
distribution from the Plan prior to the Member&#146;s &#147;earliest retirement age,&#148; as defined in Code
Section&nbsp;414(p)(4)(B). Notwithstanding anything herein to the contrary, the provisions of this
Section&nbsp;11.2 shall not apply to any offset of a Member&#146;s benefits provided under the Plan against
an amount that the Member is ordered or required to pay to the Plan under any of the circumstances
set forth in Code Section&nbsp;401(a)(13)(C) and Sections&nbsp;206(d)(4) and 206(d)(5) of ERISA.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ADMINISTRATION OF THE PLAN</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <U><B>Plan Administrator</B></U>. The general administration of the Plan on behalf of the
Plan Administrator shall be placed in a Committee of not less than two (2)&nbsp;members; provided
however, that any action taken by the Committee, if composed of only two (2)&nbsp;members, must be taken
unanimously. The members of the Committee shall be appointed by the Board and each such member
shall serve at the pleasure of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <U><B>Appointment to and Resignation From the Committee</B></U>. Any person appointed to be a
member of the Committee shall signify his acceptance in writing to the Board which appointed him.
Any member of the Committee may resign by delivering his written resignation to the Board which
appointed him. Such resignation shall become effective upon delivery or at any later date
specified therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <U><B>Reimbursement of Expenses of the Committee</B></U>. The Plan shall pay or reimburse the
members of the Committee for all reasonable expenses incurred unless the Employer shall pay or
reimburse the members of the Committee for such expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <U><B>Action by Majority of the Committee</B></U>. A majority of the members of the Committee
at the time in office may do any act which the Plan authorizes or requires the Committee to do, and
the action of such majority of the members expressed from time to time by a vote at a meeting, or
in writing without a meeting, shall constitute the action of the Committee and shall have the same
effect for all purposes as if assented to by all the members.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. <U><B>Internal Structure of the Committee</B></U>. The members of the Committee shall elect
from their number a Chairman and shall appoint a Secretary, who need not be a member of the
Committee. The Committee may appoint such subcommittees with such powers as it shall determine and
may authorize one or more members of the Committee or any agent to execute or deliver any
instrument or make any payment in its behalf.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <U><B>Powers of the Committee</B></U>. Subject to the limitations of the Plan, the Committee
may, in its sole and absolute discretion, make such rules and regulations as it deems necessary or
proper for the administration of the Plan and the transaction of business thereunder; may interpret
the Plan; may decide on questions as to the eligibility of any person to receive benefits and the
amount of such benefits; may authorize the payment of benefits in such manner and at such times as
it may determine; may prescribe forms or telephonic or electronic means to be used for making
various elections under the Plan, for designating beneficiaries or for changing or revoking such
designations, for applying for benefits and for any other purposes of the Plan, which prescribed
forms in all cases must be executed and filed with the Committee (unless the Committee shall
otherwise determine) and may take such other action or make such determinations in accordance with
the Plan as it deems appropriate. To the extent that the form or method prescribed by the
Committee to be used in the operation and administration of the Plan does not conflict with the
terms and provisions of the Plan, such form shall be evidence of (i)&nbsp;the Committee&#146;s
interpretation, construction and administration of the Plan and (ii)&nbsp;decisions
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or rules made by the Committee pursuant to the authority granted to the Committee under the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <U><B>Investment Policy Responsibility of the Committee</B></U>. The members of the Committee
shall together establish and carry out, or cause to be provided by those persons (including,
without limitation, any investment manager, trustee or insurance company) to whom responsibility or
authority therefor has been allocated or delegated in accordance with the Plan or the Trust
Agreement, an investment policy consistent with the objectives of the Plan and the requirements of
ERISA, including, without limitation, a policy which complies with Section 404(c) of ERISA. For
such purposes, the Committee shall, at a meeting duly called for the purpose, establish an
investment policy which satisfies the requirements of ERISA, and shall meet at least annually at a
stated time of the year to review such investment policy. All actions taken with respect to such
investment policy and the reasons therefor shall be recorded in the minutes of the meetings of the
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <U><B>Actions of the Committee to Be Uniform; Regular Personnel Policies to Be
Followed</B></U>. Any discretionary actions to be taken under the Plan by the Committee with respect
to the classification of the Employees, contributions or benefits shall be uniform in their nature
and applicable to all Employees similarly situated. With respect to service with the Employer,
leaves of absence and other similar matters, the Committee shall administer the Plan in accordance
with the Employer&#146;s regular personnel policies at the time in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <U><B>Decisions of the Committee Are Binding</B></U>. The decisions of the Committee with
respect to any matter it is empowered to act on shall be made in the Committee&#146;s sole discretion
and shall be final, conclusive and binding on all persons, based on the Plan documents. In
carrying out its functions under the Plan, the Committee shall endeavor to act by general rules so
as to administer the Plan in a uniform and nondiscriminatory manner as to all persons similarly
situated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <U><B>Spouse&#146;s Consent</B></U>. In addition to when such consent is expressly required by
the terms of the Plan, the Committee may in its sole discretion also require the written consent of
the Member&#146;s Spouse to any other election or revocation of election made under the Plan before such
election or revocation shall be effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <U><B>Delegation of Authority</B></U>. The Committee may delegate any and all of its powers
and responsibilities hereunder to other persons by formal resolution filed with and accepted by the
Board. Any such delegation shall not be effective until it is accepted by the Board and the
persons designated and may be rescinded at any time by written notice from the Committee to the
person to whom the delegation is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <U><B>Multiple Fiduciary Capacities</B></U>. Any person or group of persons may serve in
more than one fiduciary capacity with respect to the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <U><B>Retention of Professional Assistance</B></U>. The Committee may employ or retain such
legal counsel, accountants, actuaries, consultants, investment advisors, physicians, agents and
other persons as it may require in carrying out the provisions of the Plan. The Committee may
appoint an investment manager or managers, as defined in Section&nbsp;3(38) of ERISA, to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">manage (including the power to acquire, invest and dispose of) any assets of the Plan. The
fees, charges and costs resulting from such employment or retention of professional assistance
shall be charged as an expense of the Trust Fund unless paid by an Employer, in its sole
discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <U><B>Reliance on Various Documents</B></U>. The members of the Committee and the Employer
and its officers, trustees and directors shall be entitled to rely upon all tables, valuations,
certificates and reports furnished by the Plan actuary, upon all certificates and reports made by
any accountant selected by the Committee, and upon all opinions given by any legal counsel selected
by the Committee. The members of the Committee and the Employer and its officers, trustees and
directors shall be fully protected in respect of any action taken or suffered by them in good faith
in reliance upon any such actuary, accountant or counsel, and all action so taken or suffered shall
be conclusive upon all parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15. <U><B>Accounts and Records</B></U>. The Committee shall maintain such accounts and records
regarding the fiscal and other transactions of the Plan and such other data as may be required to
carry out its functions under the Plan and to comply with all applicable laws. The Committee shall
report annually to the Board on the financial condition and administrative operation of the Plan
for the preceding year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.16. <U><B>Compliance With Applicable Law</B></U>. The Company shall be deemed the Plan
Administrator for the purposes of any applicable law and shall be responsible for the preparation
and filing of any required returns, reports, statements or other filings with appropriate
governmental agencies. The Company shall also be responsible for the preparation and delivery of
information to persons entitled to such information under any applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.17. <U><B>Liability</B></U>. The functions of the Committee, the Board and the Employer under
the Plan are fiduciary in nature and each shall be carried out solely in the interest of the
Members and other persons entitled to benefits under the Plan for the exclusive purpose of
providing the benefits under the Plan (and for the defraying of reasonable expenses of
administering the Plan). The Committee, the Board and the Employer shall carry out their
respective functions in accordance with the terms of the Plan with the care, skill, prudence and
diligence under the circumstances then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise of a like character and
with like aims. No member of the Committee and no officer, director or employee of the Employer
shall be liable for any action or inaction with respect to his functions under the Plan unless such
action or inaction is adjudicated to be a breach of the fiduciary standard of conduct set forth
above. Further, no member of the Committee shall be personally liable merely by virtue of any
instrument executed by him or on his behalf as a member of the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.18. <U><B>Indemnification</B></U>. The Company shall indemnify to the fullest extent permitted
by law and the Company&#146;s Certificate of Incorporation and by-laws, and to the extent not covered by
insurance, its officers and directors (and any employee involved in carrying out the functions of
the Company under the Plan) and each member of the Committee against any expenses, including
amounts paid in settlement of a liability, which are reasonably incurred in connection with any
legal action to which such person is a party by reason of his duties or responsibilities with
respect to the Plan except with regard to any matters as to which he shall be adjudged in such
action to be liable for gross negligence or willful misconduct in the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">performance of his duty as a fiduciary. Any indemnification by the Employer shall be at the
Employer&#146;s expense and shall not be deemed an expense of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.19. <U><B>Section&nbsp;</B><B>16(b)</B><B> of the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;)</B></U>. Solely to the extent required under Section 16(b) of the Exchange Act, all elections
and transactions under the Plan by persons subject to Section&nbsp;16 of the Exchange Act involving
shares of Expedia Stock are intended to comply with all exemptive conditions under Rule&nbsp;16b-3
promulgated under the Exchange Act. The Committee may establish and adopt written administrative
guidelines designed to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem
necessary or proper for the administration and operation of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.20. <U><B>Claims Procedure</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Initial Claim</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any claim by an Employee, Member or Beneficiary (&#147;Claimant&#148;) with respect
to eligibility, participation, contributions, benefits or other aspects of the
operation of the Plan shall be made in writing to the Committee or its designee.
The Committee shall provide the Claimant with the necessary forms and make all
determinations as to the right of any person to a disputed benefit. If a Claimant
is denied benefits under the Plan, the Committee shall notify the Claimant in
writing of the denial of the claim within ninety (90)&nbsp;days after the Committee
receives the claim, provided that in the event of special circumstances such period
may be extended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) With respect to any claim, the ninety (90)&nbsp;day period may be extended for
a period of up to ninety (90)&nbsp;days (for a total of one hundred eighty (180)&nbsp;days).
If the initial ninety (90)&nbsp;day period is extended, the Committee shall notify the
Claimant in writing within ninety (90)&nbsp;days of receipt of the claim. The written
notice of extension shall indicate the special circumstances requiring the extension
of time and provide the date by which the Committee expects to make a determination
with respect to the claim. If the extension is required due to the Claimant&#146;s
failure to submit information necessary to decide the claim, the period for making
the determination shall be tolled from the date on which the extension notice is
sent to the Claimant until the earlier of (A)&nbsp;the date on which the Claimant
responds to the Committee&#146;s request for information or (B)&nbsp;expiration of the
forty-five (45)&nbsp;day period commencing on the date that the Claimant is notified that
the requested additional information must be provided.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If notice of the denial of a claim is not furnished within the required
time period described herein, the claim shall be deemed denied as of the last day of
such period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If a claim is wholly or partially denied, the notice to the
Claimant shall set forth:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The specific reason or reasons for the denial;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Specific reference to pertinent Plan provisions upon which the
denial is based;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) A description of any additional material or information necessary
for the Claimant to complete the claim request and an explanation of why
such material or information is necessary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Appropriate information as to the steps to be taken and the
applicable time limits if the Claimant wishes to submit the adverse
determination for review; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) A statement of the Claimant&#146;s right to bring a civil action under
Section 502(a) of ERISA following an adverse determination on review.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Claim Denial Review</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If a claim has been wholly or partially denied, the Claimant may submit the
claim for review by the Committee. Any request for review of a claim must be made
in writing to the Committee no later than sixty (60)&nbsp;days after the Claimant
receives notification of denial or, if no notification was provided, the date the
claim is deemed denied. The Claimant or his duly authorized representative may:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon request and free of charge, be provided with reasonable access
to, and copies of, relevant documents, records and other information
relevant to the Claimant&#146;s claim; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Submit written comments, documents, records and other information
relating to the claim. The review of the claim determination shall take
into account all comments, documents, records and other information
submitted by the Claimant relating to the claim, without regard to whether
such information was submitted or considered in the initial claim
determination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The decision of the Committee upon review shall be made within sixty (60)
days after receipt of the Claimant&#146;s request for review, unless special
circumstances (including, without limitation, the need to hold a hearing) require an
extension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">If the sixty (60)&nbsp;day period is extended, the Committee shall, within sixty (60)
days of receipt of the claim for review, notify the Claimant in writing. The
written notice of extension shall indicate the special circumstances requiring the
extension of time and provide the date by which the Committee expects to make a
determination with respect to the claim upon review. If the extension is required
due to the Claimant&#146;s failure to submit information necessary to decide the claim,
the period for making the determination shall be tolled from the date on which the
extension notice is sent to the Claimant until the earlier of (A)&nbsp;the date on which
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">the Claimant responds to the Committee&#146;s request for information or (B)&nbsp;expiration
of the forty-five (45)&nbsp;day period commencing on the date that the Claimant is
notified that the requested additional information must be provided.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If notice of the decision upon review is not furnished within the
required time period described herein, the claim on review shall be deemed denied as
of the last day of such period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Committee, in its sole discretion, may hold a hearing regarding the
claim and request that the Claimant attend. If a hearing is held, the Claimant
shall be entitled to be represented by counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Committee&#146;s decision upon review of the Claimant&#146;s claim shall be
communicated to the Claimant in writing. If the claim upon review is denied, the
notice to the Claimant shall set forth:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The specific reason or reasons for the decision, with
references to the specific Plan provisions on which the determination
is based;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) A statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the claim; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) A statement of the Claimant&#146;s right to bring a civil action
under Section 502(a) of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Relevant Documents</U>. A document, record or other information is considered
&#147;relevant&#148; to a claim for this purpose if it (i)&nbsp;was relied upon in making the benefit
determination, (ii)&nbsp;was submitted, considered or generated in the course of making the benefit
determination, without regard to whether such document, record or other information was relied upon
in making the benefit determination, or (iii)&nbsp;demonstrates compliance with the administrative
process and safeguards required by law when making the benefit determination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Binding Interpretation</U>. All interpretations, determinations and decisions of the
Committee with respect to any claim, including, without limitation, the appeal of any claim, or any
matter relating to the Plan, shall be made by the Committee, in its sole discretion, based on the
Plan and comments, documents, records and other information presented to it, and shall be final,
conclusive and binding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Compliance With Regulation</U>. The claims procedures set forth in this Section&nbsp;12.20
are intended to comply with United States Department of Labor Regulation&nbsp;Section&nbsp;2560.503-1 and
should be construed in accordance with such regulation. In no event shall they be interpreted as
expanding the rights of Claimants beyond what is required by United States Department of Labor
Regulation Section <font style="white-space: nowrap">2560.503-1.</font>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.21. <U><B>Benefits</B></U>. Benefits under the Plan will be paid only if the Plan Administrator
decides in its sole discretion that the applicant is entitled to them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.22. <U><B>Electronic Administration</B></U>. For purposes of the Plan, any forms, elections,
loans, regulations, rules, notices and disclosure of information may, to the extent permitted by
the Company or the Committee and by applicable law, be made or provided by paper, telephonic or
electronic means.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XIII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FUNDING OF THE PLAN</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. <U><B>Media of Funding</B></U>. A Trustee has been appointed to hold the assets of the Trust
Fund. The Plan shall be funded through one or more funds and invested in stocks, securities,
bonds, mortgages, insurance or annuity contracts, real estate or any other legal investment;
provided that all such investments shall be the property of the Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. <U><B>Trust Fund to Be for the Exclusive Benefit of Members</B></U>. The contributions of the
Employer to the Trust Fund shall be for the exclusive benefit of Members, and no part of the assets
of such Trust Fund shall revert to the Employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. <U><B>Interests of Members in Trust Fund</B></U>. No Member shall have any right, title or
interest in any part of the assets of any Trust Fund except as and to the extent expressly provided
in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. <U><B>Payment Instructions From Committee</B></U>. The Trustee shall make payments from the
Trust Fund upon the receipt of written instructions from the Committee to the person or persons
designated by the Committee as entitled under the terms of the Plan to such payment. Any payment
instructions from the Committee to the Trustee shall warrant that such payment is being made either
to a person entitled to benefits or payments under the Plan or to pay the expenses of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. <U><B>Investment and Control of Trust Fund</B></U>. The investment of the assets comprising
the Trust Fund shall be the responsibility of the Trustee, subject to, and except as otherwise
provided by the terms and provisions of Section&nbsp;6.9 and of the Trust Agreement (including any
provision for appointment of an investment manager, as defined in Section&nbsp;3(38) of ERISA, for all
or any portion of the Trust Fund). The Company shall have no responsibility with respect to
control and management of the Trust Fund except to the extent expressly provided in the Trust
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. <U><B>Limitation of Liability</B></U>. The Trust Fund established under the Plan shall be the
sole source of the payments or distributions to be made in accordance with the Plan. Each Member
and Beneficiary and any other person who shall claim any right to payment under the Plan shall be
entitled to look only to the Trust Fund, and shall not have right, claim or demand therefor against
the Employer, the Committee (or any member thereof), the Trustee, or any officer, partner or
director of the Employer.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XIV</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDMENT OF THE PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. <U><B>Company May Amend Plan</B></U>. Subject to the provisions of this Article&nbsp;XIV, the
Company (on behalf of itself and any Adopting Employer) by action of the Board, in accordance with
the by-laws of the Company, reserves the right at any time, and from time to time, to modify and
amend any or all of the provisions of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. <U><B>Retroactive Amendments</B></U>. Except as otherwise provided herein, no modification or
amendment may be made which shall have any retroactive effect so as to deprive any Member or other
person of any vested benefits under the Plan. A modification or amendment may retroactively reduce
benefits if expressly permitted by any applicable law or if such modification or amendment is
necessary to bring the Plan into conformity with the requirements of Code Section 401(a) or other
applicable provisions of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. <U><B>Amendment Affecting Vesting Provisions</B></U>. No amendment shall reduce the extent to
which a Member would be vested in his retirement income if his employment were to terminate as of
the date of the amendment. No amendment which modifies the method or criteria used to determine to
what extent a Member would be vested in accruals after the amendment date if his employment were to
terminate shall become effective with respect to a Participant with at least three (3)&nbsp;Years of
Service (as defined under a Historic Plan) unless the Member is permitted to elect to have the
extent of his vesting in future accruals determined without regard to such amendment. The
Committee shall offer the election referred to in the preceding sentence no later than sixty (60)
days after the latest of the adoption of the amendment, the amendment&#146;s effective date or the date
the Participant is notified of the amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. <U><B>No Diversion of Trust Fund</B></U>. No modification or amendment of the Plan shall
cause or permit any part of the assets comprising the Trust Fund to be diverted to purposes other
than for the exclusive benefit of Members and others entitled to benefits under the Plan or for the
payment of expenses of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. <U><B>Reversion to Employer</B></U>. No modification or amendment shall cause or permit any
part of the assets comprising the Trust Fund to revert to or become the property of the Employer
prior to the satisfaction of all liabilities under the Plan to Members and others entitled to
benefits hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6. <U><B>Mergers, Consolidations and Transfers</B></U>. The Plan shall not be merged or
consolidated, in whole or in part, with any other plan, nor shall any assets or liabilities of the
Plan be transferred to any other plan, unless the benefit that would be payable to any affected
Member under such plan if it terminated immediately after the merger, consolidation or transfer is
equal to or greater than the benefit that would be payable to the affected Member under the Plan if
it had terminated immediately before the merger, consolidation or transfer.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XV</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TERMINATION OF THE PLAN</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. <U><B>Right to Terminate</B></U>. The Company (on behalf of itself and any Adopting Employer)
by action of the Board, on behalf of the Company and the Employer, shall have the right in
accordance with the by-laws of the Company, anything herein to the contrary notwithstanding, to
terminate, or completely discontinue contributions under, the Plan at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. <U><B>Termination of Plan</B></U>. In the event that the Plan is terminated for any reason,
or contributions are completely discontinued, the rights of all Members to benefits accrued under
the Plan as of the date of such termination or complete discontinuance, to the extent then funded,
shall be nonforfeitable; and the assets of the Plan shall be allocated by the Committee. After
providing for the expenses of the Plan, the assets remaining in the Trust shall in the discretion
of the Committee be either continued in the Trust until paid out in accordance with the provisions
of the Plan or distributed to the Members and Beneficiaries (unless the Plan is continued by a
successor to the Employer).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. <U><B>Partial Termination</B></U>. The Plan may be partially terminated by the Employer, or
by operation of law, with respect to a group of Members without causing the termination of the Plan
as a whole. In the event of such a partial termination, the Accounts of the Members involved in
the partial termination shall, to the extent then funded, be fully vested and nonforfeitable.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XVI</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROVISIONS RELATING TO TOP-HEAVY PLAN</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. <U><B>Applicability</B></U>. The provisions of this Article&nbsp;XVI shall apply to any Plan Year
if, as of the applicable Determination Date, the Plan constitutes a Top-Heavy Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. <U><B>Definitions</B></U>. The definitions apply to this Article&nbsp;XVI and unless otherwise
specifically stated in another section hereof do not apply to any other section of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Determination Date</U>. With respect to each Plan Year, the Determination Date shall
be the final day of the immediately preceding Plan Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Key Employee</U>. &#147;Key Employee&#148; shall mean any Employee or former Employee
(including any deceased employee) who at any time during the Plan Year that includes the
Determination Date was:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an officer of the Employer or an Affiliate having annual compensation
greater than one hundred thirty thousand dollars ($130,000) (as adjusted under Code
Section&nbsp;416(i)(1)), provided that no more than fifty (50)&nbsp;employees (or, if fewer,
the greater of three percent (3%) or ten percent (10%) of the employees) shall be
treated as officers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an Employee who owns (or is considered as owning within the meaning of
Code Section&nbsp;318) more than five percent (5%) of the outstanding stock of the
Employer or stock possessing more than five percent (5%) of the total combined
voting power of all stock of the Employer; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an Employee who (A)&nbsp;owns (or is considered as owning within the meaning
of Code Section&nbsp;318) more than one percent (1%) of the outstanding stock of the
Employer or more than one percent (1%) of the total combined voting power of all
stock of the Employer and (B)&nbsp;who receives annual compensation from the Employer or
any Affiliate in excess of one hundred fifty thousand dollars ($150,000).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">For purposes of this Section&nbsp;16.2(b), annual compensation means compensation within
the meaning of Code Section&nbsp;415(c)(3). The determination of who is a Key Employee
will be made in accordance with Code Section&nbsp;416(i)(1) and the applicable
regulations and other guidance of general applicability issued thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Aggregated Plans</U>. &#147;Aggregated Plans&#148; shall mean (i)&nbsp;all plans of the Employer or
any Affiliate that are qualified under Code Section 401(a) and in which a Key Employee participates
or participated at any time during the Plan Year containing the Determination Date or any of the
four preceding Plan Years and (ii)&nbsp;all other qualified plans of the Employer or any Affiliate that
enable any plan described in Section&nbsp;16.2(c)(i) to meet the requirements of Code Section&nbsp;401(a)(4)
or 410 (the &#147;Required Aggregation Group&#148;). The
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Required Aggregation Group shall include each plan which satisfies the requirements of the
preceding sentence, whether or not any such plan is terminated. In addition, the term &#147;Aggregated
Plans&#148; shall include any plan of the Employer or any Affiliate which is not required to be included
in the Required Aggregation Group, provided that the resulting group, taken as a whole, continues
to meet the requirements of Code Sections&nbsp;401(a)(4) and 410 (the &#147;Permissive Aggregation Group&#148;).
The Committee may elect to exclude as an Aggregated Plan any plan in the Permissive Aggregation
Group that is a collectively bargained plan, if the necessary information as to participants and
benefits with respect to such plan is not available.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Top-Heavy Plan</U>. The Plan shall constitute a &#147;Top-Heavy Plan&#148; for any Plan Year
if, as of the applicable Determination Date, the sum of (i)&nbsp;the accounts of Key Employees under any
Aggregated Plan that is of a defined contribution type and (ii)&nbsp;the present value of the cumulative
accrued benefits of Key Employees under any Aggregated Plan that is of a defined benefit type
exceeds sixty percent (60%) of the sum of (A)&nbsp;the accounts of all Employees under any Aggregated
Plan that is of a defined contribution type and (B)&nbsp;the present value of the cumulative accrued
benefits of all Employees under any Aggregated Plan that is of a defined benefit type. The above
determinations shall be made in accordance with Code Section&nbsp;416(g). Notwithstanding the foregoing
provisions of this Section&nbsp;16.2(d), &#147;Top-Heavy Plan&#148; shall not include a plan that consists solely
of a cash or deferred arrangement which meets the requirements of Code Section&nbsp;401(k)(12) and
matching contributions with respect to which the requirements of Code Section&nbsp;401(m)(11) are met.
If, but for the preceding sentence, a plan would be treated as a Top-Heavy Plan because it is a
member of an Aggregated Plan, of Top-Heavy Plans, contributions under the Plan may be taken into
account in determining whether any other plan meets the requirements of Section&nbsp;16.3.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Rules for Determining Accrued Benefits and Accounts</U>. In determining the present
value of accrued benefits for Aggregated Plans of the defined benefit variety and accounts for
Aggregated Plans of the defined contribution variety, the following rules shall prevail:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The accrued benefit for each current Employee shall be computed as if the
Employee voluntarily terminated service as of the Determination Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The interest rate to be used shall be the interest rate in the defined
benefit plan maintained by the Company, if any, and post-retirement mortality shall
be determined based on the mortality table used by such defined benefit plan for
post-retirement mortality assumptions. There shall be no assumption as to
pre-retirement mortality or future increases in cost of living.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a qualified joint and survivor annuity within the meaning of Code
Section&nbsp;401(a)(11) is the normal form of benefit, for purposes of determining the
present value of the accrued benefit, the Member&#146;s Spouse shall be assumed to be the
same age as the Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The present value shall reflect a benefit payable commencing at Normal
Retirement Age (or attained age, if later), provided that if the Plan
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">provides for a nonproportional subsidy, the benefit shall be assumed to
commence at the age at which the benefit is most valuable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Matching Contribution Account, Profit Sharing Account and the QNEC
Account shall be determined as of the most recent valuation occurring within the
twelve (12)&nbsp;month period ending on the Determination Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) An adjustment shall be made for any contributions due as of the
Determination Date. Such adjustment shall be the amount of any contributions
actually made after the Valuation Date but before the Determination Date, except
that for the first Plan Year such adjustment shall also reflect the amount of any
contributions made after the Determination Date that are allocated as of a date in
the first Plan Year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The accrued benefit or account balance with respect to any Employee shall
be increased by the aggregate distributions made to such Employee from any
Aggregated Plan during the one (1)&nbsp;year period ending on the Determination Date
including distributions under a terminated plan which, had it not been terminated,
would have been aggregated with the plan under Code Section&nbsp;416(g)(2)(A)(i);
provided, however, that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Any distribution made after a Valuation Date but prior to the
Determination Date shall not be counted as a distribution to the extent
already included as of the Valuation Date; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In the case of a distribution made for a reason other than
separation from service, death or Disability, this provision shall be
applied by substituting five (5)&nbsp;year period for one (1)&nbsp;year period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Notwithstanding the previous sentence, the accrued benefits and accounts of
any individual who has not performed services for the Employer during the
one (1)&nbsp;year period ending on the Determination Date shall not be taken into
account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Any Employee contributions, whether voluntary or mandatory, shall be
included. However, amounts attributable to tax deductible qualified employee
contributions shall not be considered to be a part of the account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) With respect to unrelated rollovers and plan-to-plan transfers (ones which
are both initiated by the Employee and made from a plan maintained by one employer
to a plan maintained by another employer), if the Plan provides for rollovers or
plan-to-plan transfers, it shall always consider such rollovers or plan-to-plan
transfers as a distribution for the purpose of this Article&nbsp;XVI. If the Plan is the
plan accepting such rollovers or plan-to-plan transfers, it shall not consider such
rollovers or plan-to-plan transfers as part of the account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) With respect to related rollovers and plan-to-plan transfers (ones either
not initiated by the Employee or made to a plan maintained by the same
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">employer), if the Plan provides the rollover or plan-to-plan transfer, it shall
not be counted as a distribution for purposes of this Article&nbsp;XVI. If the Plan is
the plan accepting such rollover or plan-to-plan transfer, it shall consider such
rollover or plan-to-plan transfer as part of the Employee&#146;s account, irrespective of
the date on which such rollover or plan-to-plan transfer is accepted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) For purposes of this Article&nbsp;XVI, a Beneficiary of any deceased Employee
shall be considered a Participant hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Notwithstanding anything herein to the contrary, no individual shall be
counted as an Employee or Participant for purposes of this Article&nbsp;XVI if such
individual has not performed services for the Employer or an Affiliate at any time
during the one (1)&nbsp;year period ending on the Determination Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Top-Heavy Participant</U>. &#147;Top-Heavy Participant&#148; shall mean each Participant and
any Employee who is excluded from being a Participant (or who accrued no benefit) because his
compensation was less than a stated amount or any Employee who is excluded from being a Participant
because of a failure to make mandatory employee contributions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Top-Heavy Compensation</U>. &#147;Top-Heavy Compensation&#148; shall mean compensation as
defined in Treasury Regulation&nbsp;Section&nbsp;1.415-2(d), as limited by Code Section&nbsp;401(a)(17).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3. <U><B>Minimum Contribution</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to Sections&nbsp;16.3(c) and (d), for each Plan Year during which the Plan constitutes
a Top-Heavy Plan, any Employer contributions made under the Plan shall be allocated to ensure that
each Top-Heavy Participant, other than a Key Employee, who is employed on the last day of the Plan
Year (and without regard to whether such Participant was credited with a one (1)&nbsp;year Period of
Service for such Plan Year) is credited with a benefit for such Plan Year under the Plan and any
other defined contribution plan of the Employer no less than the lesser of (i)&nbsp;three percent (3%)
of such Top-Heavy Participant&#146;s Top-Heavy Compensation for such Plan Year or (ii)&nbsp;if the greatest
percentage of Top-Heavy Compensation contributed by the Employer on behalf of a Key Employee during
such Plan Year is less than three percent (3%), the greatest percentage of such Top-Heavy
Participant&#146;s Top-Heavy Compensation contributed for a Key Employee. In determining the benefit
credited to any Participant during any Plan Year, all Employer contributions made hereto shall be
included.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The minimum contribution referred to in Section&nbsp;16.3(a) (except with regard to Key
Employees) shall not include any Employee contributions, or amounts treated as Employer
contributions pursuant to a salary reduction arrangement permitted by Code Section&nbsp;401(k), except
for purposes of determining the greatest percentage of Top-Heavy Compensation allocated on behalf
of Key Employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the Top-Heavy Participant (other than a Key Employee) is also a participant in a
qualified defined benefit plan or any other defined contribution plan of the Employer, the
additional contribution due under Section&nbsp;16.3(a) shall be reduced by the actuarial
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">equivalent of the benefits derived by the Top-Heavy Participant under such defined benefit
plan calculated on the basis of the actuarial assumptions of the Plan, or by the amount of the
contributions under the defined contribution plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If the Top-Heavy Participant (other than a Key Employee) is also a participant in a
qualified defined benefit plan or any other defined contribution plan that constitutes a Top-Heavy
Plan, no minimum contribution under this Section&nbsp;16.3 shall be required, unless otherwise required
by Treasury Regulation&nbsp;Section&nbsp;1.416-1.
</DIV>



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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XVII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MISCELLANEOUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. <U><B>Rights of Employees</B></U>. Nothing herein contained shall be deemed to give any
Employee the right to be retained in the service of the Employer or to interfere with the right of
the Employer to discharge such Employee at any time, nor shall it be deemed to give the Employer
the right to require the Employee to remain in its service, nor shall it interfere with the
Employee&#146;s right to terminate his service at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. <U><B>Deductibility</B></U>. All contributions under the Plan are expressly conditioned upon
the deductibility of such contributions under Code Section&nbsp;404 and to the extent the deduction is
disallowed, shall be returned to the Employer within one (1)&nbsp;year after the disallowance of the
deduction. A contribution which is not deductible in the current taxable year of the Employer but
may be deducted in the taxable years of the Employer subsequent to the year in respect of which it
is made shall not be considered to be disallowed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. <U><B>Mistake in Fact</B></U>. In the case of a contribution which is made by the Employer
under mistake of fact, such contribution may be returned to the Employer within one (1)&nbsp;year after
the payment of the contribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4. <U><B>Plan Qualification</B></U>. Contributions to the Plan are conditioned on the initial
qualification of the Plan under Code Sections 401(a) and 401(k), and if the Plan is found not to so
qualify, contributions made in respect of any period subsequent to the effective date of the
disqualification shall be returned to the contributor within one (1)&nbsp;year after the denial of such
qualification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5. <U><B>Provisions Inconsistent With Qualified Status</B></U>. The Plan is intended to be a
qualified plan under the Code. Any provision of the Plan that would cause the Plan to fail to
comply with the requirements for qualified plans under the Code shall, to the extent necessary to
maintain the qualified status of the Plan, be null and void ab initio, and of no force and effect,
and the Plan shall be construed as if the provision had never been inserted in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6. <U><B>Headings</B></U>. The headings of the Plan are inserted for convenience of reference
only and shall have no effect upon the meaning of the provisions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7. <U><B>Use of Words</B></U>. Whenever used in this instrument, a masculine pronoun shall be
deemed to include the masculine and feminine gender, and a singular word shall be deemed to include
the singular and plural, in all cases where the context so requires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8. <U><B>Applicability of State Law</B></U>. If any determination is to be made with respect to
the Plan under applicable state law, the laws of the State of Washington shall apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9. <U><B>Adjustments for Changes in Capital Structure</B></U>. The existence of the Plan shall
not affect in any way the right or power of the Board or the stockholders of the Company to make or
authorize any adjustment, recapitalization, reorganization or other change in the Company&#146;s capital
structure or its business, any merger, consolidation or separation, including a
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">spin-off, or other distribution of stock or property of the Company or Affiliates, any issue
of bonds, debentures, preferred or prior preference stock ahead of or affecting Expedia Stock, the
authorization or issuance of additional shares of common stock, the dissolution or liquidation of
the Company or Affiliates, any sale or transfer of all or part of its assets or business or any
other corporate act or proceeding. In the event of any change in the capital structure or business
of the Company by reason of any stock dividend or extraordinary dividend, stock split or reverse
stock split, recapitalization, reorganization, merger, consolidation, spin-off or exchange of
shares, distribution with respect to its outstanding Expedia Stock or capital stock other than
Expedia Stock, reclassification of its capital stock, any sale or transfer of all or part of the
Company&#146;s assets or business, or any similar change affecting the Company&#146;s capital structure or
business and the Committee determines an adjustment is appropriate under the Plan, then the
aggregate number and kind of shares which thereafter may be issued under the Plan and the number
and kind of shares or other property (including cash) held under the Plan shall be appropriately
adjusted consistent with such change in such manner as the Committee may deem equitable to prevent
substantial dilution or enlargement of the rights granted to, or available for, Members under the
Plan or as otherwise necessary to reflect the change, and any such adjustment determined by the
Committee in good faith shall be binding and conclusive on the Company and all Members,
Beneficiaries and employees and their respective heirs, executors, administrators, successors and
assigns.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE XVIII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ADOPTION OF THE PLAN BY AFFILIATE</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1. <U><B>Purpose of Article</B></U>. The purpose of this Article&nbsp;XVIII is to describe the terms
and conditions under which an Affiliate or Eligible Company may adopt and become an Adopting
Employer under the Plan and the Trust for the benefit of its Eligible Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2. <U><B>Execution of Adoption Agreement by an Affiliate</B></U>. Any Affiliate or Eligible
Company may, subject to consent of the Company, become an Adopting Employer under the Plan and the
Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Adopting Employer shall be bound by all the provisions of the Plan and the Trust in
the manner set forth herein and any amendments thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Adopting Employer shall pay its share of the contributions to and expenses of the Plan
and the Trust as the Company may determine from time to time in the manner specified herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Adopting Employer shall provide the Company, the Committee and the Trustee with full,
complete and timely information on all matters necessary to them relating to or in connection with
the administration or operation of the Plan and the Trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3. <U><B>Participation in the Plan</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event of the adoption of the Plan and the Trust by an Affiliate or an Eligible
Company, the Affiliate or Eligible Company shall become an Adopting Employer and all the terms and
conditions of the Plan and the Trust as set forth hereunder shall apply to the participation under
the Plan of such Affiliate or Eligible Company and its Employees in the manner as set forth herein
for an Adopting Employer and its Employees; notwithstanding the above, the following rights are
specifically reserved to the Company:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The right to designate an Adopting Employer as set forth herein;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The right to appoint the members of the Committee, as set forth herein, is
specifically reserved to the Company so long as the Company participates under the
Plan; provided that an Adopting Employer may appoint an Advisory Committee of such
composition and size as it may determine to advise the Committee on any matters
affecting such Adopting Employer or its Employees who are Participants under the
Plan. The Committee shall be entitled to rely upon any information furnished it by
the Adopting Employer or its Employees who are Participants under the Plan. The
Committee shall be entitled to rely upon any information furnished it by the
Adopting Employer appointing such Advisory Committee, but in no event shall the
existence of such Advisory Committee modify or otherwise limit any of the powers or
duties of the Committee under the Plan;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The right to direct, appoint, remove, approve the accounts of or
otherwise deal with the Trustee, as set forth herein, is specifically reserved to
the Company so long as the Company participates under the Plan; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The right to amend the Plan and the Trust, as set forth herein, is
specifically reserved to the Company so long as the Company participates under the
Plan; and any such amendment, unless otherwise specified herein, shall be fully
binding with respect to such participation by any Adopting Employer; provided that
this reservation shall in no event be construed to prevent any Adopting Employer
from terminating at any time, in the manner set forth herein, its participation as
an Adopting Employer under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the operation of the Plan with respect to an Adopting Employer, the term &#147;Effective
Date&#148; shall mean such date specified in such Adopting Employer&#146;s Adoption Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Unless otherwise provided in the Adoption Agreement of an Adopting Employer, service for
an Employee of such Adopting Employer for eligibility, vesting and benefit purposes shall be
determined from the Employee&#146;s Employment Commencement Date with the Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Adopting Employer, in accordance with its by-laws (or similar governing documents) and
applicable law, may at any time elect to terminate its participation under the Plan in the manner
set forth herein, or any Adopting Employer may elect at any time by executing a transfer agreement
affecting only its own status hereunder to disassociate itself from the Plan and the Trust but to
continue the Plan and the portion of the Trust as it pertains to itself and its Employees as an
entity separate and distinct from the Plan and the Trust. Termination of the participation of any
Adopting Employer, or disassociation, shall not affect the participation in the Plan of any other
Adopting Employer or terminate the Plan or the Trust with respect to them and their Employees;
provided that, if the Company shall terminate its participation in the Plan, or disassociate
itself, then each remaining Adopting Employer shall make such arrangements and take such action as
may be necessary to assume the duties of the Company in providing for the operation and continued
administration of the Plan and the Trust as the same pertains to the Adopting Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4. <U><B>Adopting Employer Plan Expenses</B></U>. Each Adopting Employer shall be liable for and
shall pay at least annually to the Company its fair share of the expenses of operating the Plan and
the Trust, including its share of any Trustee&#146;s fees. The amount of such charges to each Adopting
Employer shall be determined by the Company, in its sole discretion, or pursuant to an agreement
between the Company and the Adopting Employer.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Company has caused the Plan to be executed by its officer thereunto
duly authorized, as of the 27th&nbsp;day of December 2006.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>EXPEDIA, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Kathy Dellplain</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EVP, Human Resources</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX A</b></div>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>ADOPTING EMPLOYERS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Expedia, Inc. (WA), Hotels.com (DE), Hotwire, Inc. (DE)&nbsp;and TripAdvisor, Inc. (DE)&nbsp;and
each of their Affiliates on the Effective Date except Expedia, Inc., a Delaware
Corporation, and Premier Getaways, Inc.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding the foregoing, effective January&nbsp;1, 2006, Premier Getaways, Inc. shall
become an Adopting Employer.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective January&nbsp;1, 2007, Activity Hut LLC shall become an Adopting Employer.</TD>
</TR>

</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX B</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SPECIAL VESTING PROVISIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
Section&nbsp;5.1(b), but subject to Section&nbsp;5.1(c), this Appendix&nbsp;B
applies to Transferred Participants who were participants in a Historic Plan as set forth below and
who became Members in the Plan or Prior Plan pursuant to the merger of such Historic Plan into the
Plan or Prior Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U><B>TripAdvisor, Inc. </B><B>401(k)</B><B> Profit Sharing Plan &#038; Trust</B></U>. With respect to each
Transferred Participant who was a Participant in the TripAdvisor, Inc. 401(k) Profit Sharing Plan &#038;
Trust on September&nbsp;30, 2004 and who is credited with an Hour of Service on or after October&nbsp;1,
2004, the portion of such Transferred Participant&#146;s Accrued Benefit in his Matching Contribution
Account and Profit Sharing Account which shall become vested and nonforfeitable shall be based on
the number of years in his Period of Service according to the following schedule:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="60%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Number of Years</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">in Period of Service</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Nonforfeitable Percentage</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:30px; text-indent:-15px">1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">2 or more</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100%</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(D)(24)
<SEQUENCE>13
<FILENAME>v31477orexv99wxdyx24y.htm
<DESCRIPTION>EXHIBIT 99.(D)(24)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxdyx24y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (d)(24)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FIRST AMENDMENT TO THE EXPEDIA RETIREMENT SAVINGS PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This First Amendment is made to the Expedia Retirement Savings Plan (the &#147;Plan&#148;), effective
January&nbsp;1, 2007. All terms defined in the Plan shall have the same meanings when used herein. All
provisions of the Plan not amended by this First Amendment shall remain in full force and effect.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;18.3(c) is hereby amended in its entirety to read as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise provided in the Adoption Agreement of an Adopting Employer, service for an
Employee of such Adopting Employer for eligibility, vesting and
benefit purposes shall be
determined from the Employee&#146;s Employment Commencement Date with the Adopting Employer.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appendix&nbsp;C is hereby amended to read as set forth in the attached <B>Appendix&nbsp;C.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia, Inc. has caused this First Amendment to be executed on the date indicated below.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" valign="top" align="left">EXPEDIA, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6/14/2007&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Kathy Dellplain</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EVP, Human Resources</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX C<BR>
 EMPLOYERS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Expedia, Inc. (WA), Hotels.com (DE), Hotwire, Inc. (DE)&nbsp;and TripAdvisor, Inc. (DE)
and each of their Affiliates on the Effective Date, except Expedia, Inc., a Delaware
Corporation, and Premier Getaways, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding the foregoing, effective January&nbsp;1, 2006, Premier Getaways, Inc.
shall become an Employer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective January&nbsp;1, 2007, Activity Hut LLC shall become an Employer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective April&nbsp;1, 2007, Smarter Travel Media LLC shall become an Employer.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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