Expedia Announces Agreement To Acquire Majority Of trivago

          Expedia Announces Agreement To Acquire Majority Of trivago

Europe's leading metasearch company joins portfolio of travel's most trusted
global brands

PR Newswire

BELLEVUE, Wash. and DUSSELDORF, Germany, Dec. 21, 2012

BELLEVUE, Wash.and DUSSELDORF, Germany, Dec. 21, 2012 /PRNewswire/
--Expedia, Inc. (NASDAQ: EXPE) today announced entry into a definitive
agreement to acquire a 61.6% equity position in trivago, a leading metasearch
company headquartered in Dusseldorf, Germany, for total consideration of €477
million (approximately US$632 million, based on current exchange rates)
including €434 million in cash as well as €43 million in Expedia, Inc. common
stock. Expedia, Inc. expects the deal to be accretive to adjusted earnings per
share in 2013.

"The trivago team built one of the largest, fastest growing and most well
known travel sites in Europe conducting more than 100 million hotel searches
annually through a culture focused on developing great products, building a
strong brand and promoting partners' businesses. These attributes closely
align with our Expedia, Inc. strategy and values and we are thrilled to have
them join our portfolio," said Dara Khosrowshahi, Expedia, Inc. President and
Chief Executive Officer.

Founded seven years ago, trivago quickly grew into a consumer champion for
hotel accommodation featuring comprehensive search results from over 600,000
hotels across over 140 booking sites in over 30 countries in 23 languages.
Through its primarily cost-per-click revenue model, trivago profitably doubled
revenue each year since 2008 and currently expects to deliver approximately
€100 million in net revenue for 2012.

"We are very excited to join the Expedia, Inc. portfolio and eager to learn
from their experience, having built-up some of the world's most trusted travel
brands," said Rolf Schromgens, trivago co-founder and Managing Director. "Our
passion and focus will remain on independently evolving our comprehensive and
individualized hotel search. We will stay committed to our mission: To empower
consumers to find their ideal hotel at the lowest possible rate," added
Schromgens.

The deal is anticipated to close during the first half of 2013 pending
approval from relevant competition authorities. Post close, the trivago
co-founders and management team will continue to operate independently based
out of trivago's headquarters in Dusseldorf, Germany.

Expedia, Inc. plans to audiocast a conference call to discuss the transaction
on Friday, December 21, 2012 at 9:00 a.m. Pacific Standard Time (PST) or 6:00
p.m. Central European Time (CET). The audiocast will be open to the public and
available via www.expediainc.com/ir. Expedia, Inc. expects to maintain access
to the audiocast on the IR website for approximately three months subsequent
to the initial broadcast.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995
This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are not
guarantees of future performance. These forward-looking statements are based
on management's expectations as of December 21, 2012 and assumptions which are
inherently subject to uncertainties, risks and changes in circumstances that
are difficult to predict. The use of words such as "intends" and "expects,"
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 and may include statements relating to future revenues, expenses,
margins, profitability, net income / (loss), earnings per share and other
measures of results of operations, the prospects for future growth of Expedia,
Inc.'s business and statements regarding expectations for trivago's 2012
revenue, evolution of trivago's search product and expansion of trivago's
global footprint.

Actual results and the timing and outcome of events may differ materially from
those expressed or implied in the forward-looking statements for a variety of
reasons, including, among others: competitive risks; declines or disruptions
in the travel industry; changes in our relationships and contractual
agreements with travel suppliers or travel distribution partners; increases in
the costs of maintaining and enhancing our brand awareness; changes in search
engine algorithms and dynamics; our inability to adapt to technological
developments or to maintain our existing technologies; our ability to expand
successfully in international markets; changes in senior management;
volatility in our stock price; changing laws, rules and regulations and legal
uncertainties relating to our business; unfavorable new, or adverse
application of or failure to comply with existing, laws, rules or regulations;
adverse outcomes in legal proceedings to which we are party; provisions in
certain credit card processing agreements that could adversely impact our
liquidity and financial positions; fluctuations in our effective tax rate;
liquidity constraints or our inability to access the capital markets when
necessary; risks related to our long term indebtedness; fluctuations in
foreign exchange rates; risks related to the failure of counterparties to
perform on financial obligations; potential liabilities resulting from our
processing, storage, use and disclosure of personal data; the integration of
current and acquired businesses; the risk that our intellectual property is
not protected from copying or use by others, including competitors; risks
related to interruption or lack of redundancy in our information systems; and
other risks detailed in our public filings with the SEC, including our annual
report on Form 10-K for the year ended December 31, 2011 and subsequent
quarterly reports on Form 10-Q, as well as the possibility that (i) we may be
unable to obtain regulatory approvals required for the proposed transaction or
may be required to accept conditions that could reduce the anticipated
benefits of the transaction, (ii) the time required to consummate the proposed
transaction may be longer than anticipated, (iii) the proposed transaction may
involve unexpected costs, (iv) the businesses may suffer as a result of
uncertainty surrounding the proposed transaction, including difficulties in
maintaining relationships with customers or retaining key employees, and (v)
the parties may be unable to meet expectations regarding the timing,
completion and accounting and tax treatments of the transaction. Except as
required by law, we undertake no obligation to update any forward-looking or
other statements in this release, whether as a result of new information,
future events or otherwise.

About the Expedia group
The Expedia group is thelargestonline travel companyin the world, with an
extensive brand portfolio that includes some of the world's leading online
travel brands, including:

  oExpedia.com^®, the world's largest full service online travel agency, with
    localized sites in 30 countries
  oHotels.com^®, the hotel specialist with sites in more than 60 countries
  oHotwire^®, a leading discount travel site that offers opaque deals in nine
    countries on its eight sites in North America and Europe
  oEgencia^®, the world's fifth largest corporate travel management company
  oeLong^™, the second largest online travel company in China
  oVenere.com^®, the online hotel reservation specialist in Europe
  oExpedia Local Expert^®, a provider of in-market concierge services,
    activities and experiences in 18 markets worldwide
  oClassic Vacations^®, a top luxury travel specialist

The company delivers consumers value in leisure and business travel,
drivesincremental demandand direct bookings totravel suppliers, and
provides advertisers theopportunityto reacha highly valuable audience
ofin-market travel consumers through Expedia^® Media Solutions. Expedia also
powers bookings for some of the world's leading airlines and hotels, top
consumer brands, high traffic websites, and thousands of active affiliates
through Expedia^® Affiliate Network.For corporate and industry news and
views, visit us at www.expediainc.com or follow us on Twitter @expediainc.

Trademarks and logos are the property of their respective owners. © 2012
Expedia, Inc. All rights reserved. CST: 2029030-50

About trivago
trivago is an online metasearch site which compares hotel rates from over
600,000 hotels on over 140 booking sites worldwide; while also offering over
34 million integrated hotel reviews, accompanied by 14 million photos. Easily
find the perfect hotel by using trivago's various filters and sorting options.
Over 18 million visitors per month use trivago – recently rated by Research
Now in the top five travel sites in the UK, Germany, France, Spain and Italy.
trivago was founded in 2005 and currently operates 32 international country
platforms in 23 languages. Headquarters are based in Dusseldorf, Germany. For
more information about trivago, please visit www.trivago.com.

SOURCE Expedia, Inc.

Website: http://www.expediainc.com
Website: http://www.trivago.com
Contact: Expedia, Investor Relations, +1-425-679-3555, ir@expedia.com, or
Communications, +1-425-679-4317, press@expedia.com; or trivago,
Communications, +1-212-208-1439, sydney.burdick@trivago.com
 
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