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Expedia Announces Partnership With BedandBreakfast.com

BELLEVUE, Wash., April 3, 2006 -- Expedia, Inc. (NASDAQ: EXPE) today announced an exclusive and long-term relationship with BedandBreakfast.com. The deal will bring a wide range of quality B&B offerings to Expedia travelers, something no other online travel agency has provided.

This relationship will make BedandBreakfast.com the exclusive B&B aggregator for Expedia, Inc. and Expedia will be the B&B provider's exclusive online travel agent. Expedia will begin featuring BedandBreakfast.com's inventory across the Expedia and Hotels.com Web sites, delivering unprecedented traveler access to B&Bs, as well as unmatched exposure for these smaller properties.

"We are very excited about this partnership," said Paul Brown, president, Partner Services Group, Expedia, Inc. "BedandBreakfast.com is an excellent channel of distribution for B&Bs, and we are thrilled to provide our customers these additional lodging offerings."

"This deal brings an expanded selection of unique lodgings in destinations such as Napa Valley, Cape Cod and Newport, RI, that are primarily served by B&Bs, which were previously unavailable on any other large online travel site," said Dan Proctor, vice president, specialty lodging, Expedia, Inc. "And, it further solidifies Expedia's position as the leading online traveler resource for specialty lodging, which also includes condominiums, vacation rentals, and villas.

Expedia and BedandBreakfast.com will be seamlessly linked for rates, availability and bookings. Now, small properties will be able to easily sell through the Expedia Web sites and gain access to a large audience of consumers without adding a lot of work at the property level. Properties will be able to manage content, rates and availability for all of Expedia's Web sites in one place on BedandBreakfast.com. Unlike programs offered by other online travel companies, BedandBreakfast.com's Online Reservation Manager was designed specifically to meet the needs of small properties.

Added Eric Goldreyer, founder and president of BedandBreakfast.com: "Expedia has always been the leader in bringing the most diverse lodging choices to consumers. B&Bs provide a unique lodging experience with incredible service in some of the most desirable locations in the world. With this partnership, travelers will find it easier than ever to book the perfect bed-and-breakfast getaway, and B&Bs will find it easier than ever to market their outstanding properties to a wide base of travelers who may never have enjoyed the B&B experience."

About Expedia Partner Services Group

Expedia's Partner Services Group offers its supplier partners choice, seamless coordination and complete access to our vast traveler base. The formation of the Partner Services Group is a testament to Expedia's commitment to continually refine the way we conduct business by seeking our suppliers' input and customizing our services to meet their needs.

About Expedia, Inc.

Expedia, Inc. is the world's leading travel services company. With its portfolio of leading travel brands, Expedia, Inc. empowers business and leisure travelers with the tools and information they need to easily research, plan, book and experience travel. The company also provides wholesale travel to offline retail travel agents. Expedia, Inc.'s main businesses and brands include: Expedia.comR, hotels.comR, HotwireR, ExpediaR Corporate Travel, TripAdvisorT and Classic VacationsR. Expedia, Inc.'s companies also operate internationally with sites in Canada, the United Kingdom, Germany, France, Italy, the Netherlands, Australia, and China, through its investment in eLongT. For more information, visit http://www.expediainc.com/.

About BedandBreakfast.com

Founded in 1994, BedandBreakfast.com is the leading online bed and breakfast Internet directory and reservation network, with detailed information on 6,000 B&Bs and inns throughout the United States and internationally.

NOTE: Expedia, Expedia.com, the airplane logo and Classic Vacations are either registered trademarks or trademarks of Expedia, Inc. in the United States and/or other countries. Hotels.com is a trademark of Hotels.com, L.P. in the United States and other countries. Hotwire is either a registered trademark or trademark of Hotwire, Inc. in the United States and/or other countries. TripAdvisor is a trademark of TripAdvisor, Inc. in the United States and other countries. BedandBreakfast.com is a trademark of Goldreyer, Inc. in the United States and other countries. Other product and company names mentioned herein may be trademarks of their respective owners.

SOURCE: Expedia, Inc.

CONTACT: Katie Deines of Expedia, Inc., +1-425-679-4317, orpress@expedia.com

CONTACT: Sandy Soule of BedandBreakfast.com, Inc., at 512-322-2706, or sandy.soule@BedandBreakfast.com.


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