Virgin America And Expedia Announce Multi-year Partnership

San Francisco — Sep. 8, 2008 —Virgin America, the airline that is reinventing domestic air travel, and global online travel leader Expedia, Inc. (NASDAQ: EXPE), today announced a new multi-year strategic partnership, under which Expedia® (www.expedia.com) is now offering all of Virgin America's published fares, schedules, and inventory to leisure and unmanaged business travelers in the U.S. In addition, beginning in mid-September, Virgin America flights will be available to managed business travel clients of Egencia™ (formerly Expedia Corporate Travel), the fifth largest travel management company in the world

"Expedia and Virgin America are both known for providing high value to smart travelers, so we are thrilled to announce this partnership and to give Expedia customers the chance to experience our approach to making air travel a little more fun, stylish and entertaining at an attractive price," said Virgin America President and CEO David Cush. "Expedia is a trusted and important distribution channel that will help us reach new customers as we continue to grow to new destinations."

"Virgin America is one of the most innovative airlines in the industry and its addition to the Expedia marketplace only enhances our continued efforts to offer travelers the best selection at the best value," said Paul Brown, President, Expedia North America and Expedia, Inc. Partner Services Group. "We're pleased that this partnership will help Virgin America extend its reach to the millions of people who visit Expedia every month."

Virgin America has also partnered with Expedia® Media Solutions Group to launch an advertising campaign that will extend the exposure of the Virgin America brand in Expedia's marketplace. With targeted display ads running throughout the site, Virgin America is leveraging the unique media value of Expedia as the most highly trafficked travel site on the Web.

The agreement also provides for Hotwire to begin offering Virgin America flights

Virgin America has one of the newest fleets in the U.S. with upscale, tech-savvy amenities that are reinventing domestic flying. Virgin America offers topnotch service and a host of innovative amenities for less, including power outlets at every seat and the carrier's RED In-flight Entertainment system which features over 25 films, 3,000 MP3s, live TV, videogames, seat-to-seat chat, and the first on-demand in-flight menu system. In July 2008, Virgin America was named "Best Domestic Airline" in Travel + Leisure World's Best Awards.

Virgin America flies to seven cities, including: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, SFO to SEA, LAX to JFK, LAX to IAD, LAX to SEA, and now non-stop flights from JFK to LAS.

About Expedia, Inc. and Expedia Partner Services Group: Expedia, Inc. is the world's leading online travel company. With 70 global points of sale in more than 40 countries, its portfolio of brands includes: Expedia.com®, hotels.com®, Hotwire®, Egencia™ (formerly Expedia Corporate Travel), TripAdvisor®, Expedia Local Expert®, Classic Vacations® and eLong™. Expedia Partner Services Group (PSG) is the central point of contact for travel suppliers to access the global Expedia marketplace. With hundreds of employees in local markets throughout the world, Expedia® PSG makes it easy for suppliers to meet their global distribution objectives, and delivers a portfolio of innovative connectivity solutions, rate and inventory management tools, business intelligence reports, and online marketing expertise.

About Egencia, an Expedia, Inc. Company: Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., (NASDAQ: EXPE), the world's largest travel marketplace, Egencia helps business get ahead by offering the only truly integrated corporate travel service. Egencia's industry expertise and the partnerships the company has built help drive results that matter, delivering meaningful advancements that have a real impact. By combining a powerful offline and online service, Egencia delivers a complete corporate travel offering supported by global market expertise and a best-in-class technology platform. For more information, go to Egencia.com.

About Virgin America: Launched in August 2007, Virgin America is a California-based airline that offers guests attractive fares and a host of innovative features aimed at reinventing air travel. Virgin America's base of operations is San Francisco International Airport's ultra-modern and convenient International Terminal. The airline's new Airbus A320-family aircraft offer interactive in-flight entertainment systems and power outlets for laptops and other electronic gear. In July 2008, Virgin America was named "Best Domestic Airline" in Travel + Leisure World's Best Awards. In Zagat's 2007 Global Airlines Survey, the airline was ranked #1 among U.S. carriers for quality in First/Business Class and #2 in Main Cabin. To learn more: www.virginamerica.com

Expedia and the Airplane logo are trademarks of Expedia, Inc. in the U.S. and/or other countries. Egencia and Expedia Corporate Travel are trademarks of Egencia, LLC. Other logos or product and company names mentioned herein may be the property of their respective owners.

© 2008 Expedia, Inc. All rights reserved. CST: 2029030-40

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Media Contact:

Expedia, Inc: Katie Deines (425) 679-4317 / press@expedia.com

Virgin America: Abby Lunardini (650) 533-7576 / abby.lunardini@virginamerica.com