Welcome to the Expedia, Inc. fourth quarter 2006 conference call. During today’s presentation all parties will be on a listen only mode. Following the presentation the conference will be opened for questions. If you have a question please press the * key followed by the number 1 on your touch tone phone. If you would like to withdraw your question, press the * key followed by the 2. We do ask that if you’re on a speaker phone that you lift up the handset before making your selection. This conference call is correct to today, February 15, 2007. I would like to turn the conference over now to Stu Haas, VP of investor relations. Please go ahead, Sir.Stu Haas: Good morning and welcome to Expedia Inc.’s financial results conference call for the fourth quarter and year ended December 31, 2006. Joining me on today’s call are Barry Diller, Expedia’s chairman and senior executive, Dara Khosrowshahi, our CEO, and Michael Adler, our CFO. The following discussion including responses to your questions reflects management’s views as of today February 15, 2007 only. As always, some of the statements made on today’s call are forward looking including our comments on financial expectations, operational performance and margins, planned investments and spending, platform improvements, systems upgrades, growth of business lines, financial performance and dilution. Actual results may differ materially. We do not undertake any obligation to update or revise this information to reflect future events or circumstances. Please refer to today’s press release and the company’s filings with the SEC, including our form 10K for the year ended December 31 2005, and our subsequent 10Q filings for additional information about factors that could potentially affect our financial and operational results. During this call we will discuss certain non-GAAP financial measures including OIBA, operating expenses excluding…

Great. Thanks, Dara. Good morning everyone. I’d like to provide you with a review of our results and close with our financial expectations for 2007. Let me begin with gross bookings. Worldwide gross bookings were up 9% for the quarter on 3% transaction growth. Our domestic gross bookings growth of 1% continue to lag mainly due to continued weakness at Expedia.com and the deceleration at Hotels.com as they anniversaried a high growth quarter. We also experienced slower domestic growth at ECT due to soft client additions in early ‘06 on top of tighter travel spend on US corporate clients toward the end of the year. Our international businesses continue to accelerate in Q4, posting 34% growth in gross bookings, or 27% - excluding the impact of foreign exchange. Europe was particularly strong in both leisure and corporate representing over 70% of the international bookings growth. From a product standpoint, we were happy to see worldwide airline ticket growth return to positive levels in the quarter, including a five percent increase in agency tickets sold as we benefited from increased content and less rapid growth in airfares. Our merchant hotel business continues to be a significant driver of overall revenue growth, more than off-setting the declines we’ve seen in air revenues. While (inaudible) might grow slow in Q4, total merchant hotel revenue growth accelerated to 15% on the strength of higher ADRs. On the packages front, we saw some slight improvement in Q4 with revenue up 1%. As we mentioned in our last call, we did make some pricing changes that reduced the negative impact on profitability without degrading the top line. Despite these efforts, we were not able to off-set the industry wide pressure on domestic package volumes resulting from diminished availability of merchant air. While packages were soft throughout…

Thank you, and good morning to everybody. I think you all know that companies have cycles. Thankfully we’ve passed through the third cycle in Expedia’s relatively short history. The first, was the takeoff, and for Expedia, was explosive, great growth for its businesses, and of course in its evaluations. The second was the result of having built up the business very quickly, with this tremendous work output by everybody, which is impossible to sustain of course. And of course then with thoughts of turning the results into equity gains from selling the business added to that. Invariably, what this does is take the focus off the business at exactly the time competition grows, and unfortunately for Expedia, this resulted in a lack of investment in both infrastructure and technology. The third phase, which we’ve been experiencing over the last year and a half, has been forthrightly and often painfully dealing with all these issues. These issues required investment retooling and a reinvigoration of the entire enterprise. I believe that Dara and Paul Brown and Dermot Halpin in Europe and their teams have been making the difficult decisions that have been involved with this reinvention of Expedia. And I think that they’re now ready to enter Expedia’s fourth cycle, sustainable growth, over a long period of time. For me, it’s been very frustrating to watch the level of investment behind the scenes that’s going to position the company for the future. Investments can’t be seen on the outside yet, but throughout the course of ’07, we do anticipate that these will be the engine thrusts of really good performance. For now, look to our newly designed homepage, the enthusiastic response to our loyalty efforts, which we’ve just begun, and I think that these are a prelude to a lot of developments that are going to take place throughout the balance of the year. And now I think we go to questions, so Stu, do you want to prompt that?

Absolutely, thanks Barry. Let’s move on to the Q&A portion of the call with Barry, Dara, and Mike. As a reminder, please limit yourself to one or two questions, so we can fit more questioners into the call today. Operator, would you please remind our listeners how to ask a question.

Thank you, Ladies and Gentleman, at this time we will begin the question and answer session. Just a reminder, if you have a question, please press the * key followed by the 1 on your touchtone phone. If you would like to withdraw your question, press the * key followed by the 2. We do ask that if you’re on a speaker phone that you please lift up the handset before making your selection. And our first question comes from Robert Peck at Bear Stearns, please go ahead.

Hey guys, congratulations, strong quarter. I just wanted to dig to a couple of the details here. First of all, could you comment a little bit on hotels.com and it seems its growth decelerated to about 12% from sort of the 20% levels. Could you talk about what’s going on there? And sort of bigger picture, how can you accelerate domestic growth? Can you maybe provide a little more color on what’s causing some of the pressure? I just have a follow up. Dara Khosrowshahi: Sure Bob, just on hotels.com, as far as the growth goes, really, the growth that we saw this year, and it was great growth domestically, had two significant factors associated with it. One was the marketing campaign, the expert marketing campaign and the improved homepage design. And the second was the plugging in of hotels.com into the common supply infrastructure that we built, into the PFG group that we built. The plugging in into the new supply got hotels.com much better inventory, better quality inventory, some hotel chains that in the past had not done business with hotels.com. And if you look at the growth rate, and year on year growth rates, once you lap that benefit, once you lap that plugging in, into the new supply, and once you lap… call it an entirely new website, growth becomes a little more difficult to come by. If you look at last year, really the reacceleration of hotels.com started happening in Q4 of last year. We’re lapping those comps right now, so growth going forward is going to be a little harder to come by, but we think that the team over there is very much focused on it. And we think what’s important is that over the long term they can build a brand that thrives, a brand that keeps growing, a brand that amongst consumers if they’re just looking for a hotel. And we think that they’re certainly up for that.

Ok, just really quickly as a follow up, during the quarter there was some news flow as American and Delta and supply. Could you just comment a little bit on what exactly was going on there in your accessed inventory? Dara Khosrowshahi: Yea, I don’t want to comment to much on, call it individual relationships with suppliers. Those issues had more to do with connectivity, and specifically our connectivity to those suppliers through Worldspan than specific issues having to do with those suppliers. That said we are in discussion with those suppliers, with both American and Delta about a hopefully long term arrangement with them. And hopefully we can come to a solution that everyone is happy with.

Thanks Dara. Dara Khosrowshahi: You bet.

Thank you. Our next comes from Doug Anmuth with Lehman Brothers, please go ahead.

Thank you. Michael you mentioned a couple of things that are going to weigh on free cash flow a little bit in 2007 in terms of CapEx and the changes in working capital and the taxes. Could you just provide a little more detail on those? And I’m specifically focused on the changes in working capital with suppliers, and how we should think about that, not just in ’07, but a little bit further, going out a few years. And sort of beyond that, is it generally fair to think that free cash should sort of trend with OBIA? Do you expect to have sort-of further pressures there on working capital? Thank you. Dara Khosrowshahi: Yeah, I think over the long run we would absently expect our free cash flow to, you know, trend with OBIA and the earnings of the business. What we experienced in '06 was a compression in the amount of time that we take to pay our suppliers. We've made significant investments in '06 in improving our infrastructure and taking costs out on the payment-transaction side. That is allowing us, really, to pay our suppliers at the terms which we've agreed to. We're certainly not paying anyone faster than we have to, but we have ended up with lower costs and really better supplier relationships by the investments that we have made. On the cash taxes side, we were a partial cash taxpayer in '06, and expect to be a full cash taxpayer in '07, absent the discrete items which always occur. And so with that expectation, we do expect to see some pressure next year. We also have a payment that we'll be making to Microsoft next year under an historical tax-sharing agreement of approximately $30 million, and that will certainly weigh on free cash flow next year, but will not have any impact on go-forward rates. With respect to CapEx, we expect in '07 to see a much smaller increase than what we experienced in '06. We are investing in our infrastructure. At the same time, we're working as hard as we can to make sure that we don't spend $1 that we don't need to spend. And over time, that CapEx growth rate will return to be much more consistent with earnings.

And Doug, just to clarify, this is Stu, that $30 million will be in 2007.

And how does that $30 million... Is that showing up on the income statement? Dara Khosrowshahi: That will not show up on the income statement, but it will be a cash outflow on the cash flow, and it will occur at the end of '07.

Okay, thank you.

And, Doug, just on the working-capital side, it's Dara, I just want to stress that the working-capital cycles to some extent have compressed. It is because of our activity and very specific work that we've done, and really upgrading the table of operations of the company. It's work that has taken place over the past two years. It is great work, done by the executive team here, and it's part of our overall efforts at the partner-services group, which just work much more closely with our suppliers, and make sure that we take great care of them.

Okay, great, thank you.

Thank you. Your next question comes from Paul King with the CIBC World Markets. Please go ahead. Paul King – CIBC World Markets: Hey, good morning. Thanks for taking my question. So I have a couple of clarification questions on two things that I think Dara and Mike mentioned in their prepared remarks. You'd mentioned that, on the booking fee, you're confident in achieving comparisons in '08 on a non-booking fee portion. So you noticed you left out the booking portion. I was curious how you feel about that long-term? And then the other comment was that the lower margin you mentioned in degradation would likely be second half, not the first half, and does that suggest that there's still hotel contracts out there that above market as you enter the second half of '07?

Yeah, I think on the fee, Paul, we don't anticipate the fee changing significantly over the short term or the long term. That said we are experimenting with it. And one of the real benefits for us as a company is that we're on different platforms, but Expedia especially is on one global platform. And we can experiment with these kinds of aspects of our business, and really test consumer sensitivity to pricing, to fees, etc. And to the extent that we're going to test that, we're not going to do it in the US, where the consequences of testing are much more public, and also, we're talking with bigger dollars. We have in smaller countries. And typically we're doing a lot of our testing in Europe right now. So, we have been doing some experimenting in Europe on booking fees. The results have been very interesting, and in some cases our tests with booking fees have resulted in pretty good volumes in Europe, in certain countries. So, we don't want to. We're not sure where we're going to go long-term as a company. But it's just a real advantage for us to be able to work this way, and experiment across the company, and ultimately to share best practices. Something else, for example, that I didn't mention, on the new home pages on Expedia.com, is that the three-column layout that you see on Expedia.com was actually a layout that was originally introduced in the UK. We introduced that layout, it was very new, other travel websites just don't look like that, and it worked well in the UK. We're rolling it across Europe. The Expedia.com guys in the US decided to use that layout, and early indications are positive. So it's a great strength of the company to be able to experiment there. Mike, you want to talk on raw margin? Michael Adler : Yeah. On raw margin, as Dara indicated, we are in the process of re-negotiating a number of hotel contracts. That will potentially impact '07 results. But we think that the value proposition that we are offering and delivering to our hotel partners is sort-of set at the right economics at this time. However, we can't predict the outcome of the negotiations. So the point is, if there is any impact on raw margin, we would expect to see it later in the year versus the first half.

That said, we feel pretty good about where our negotiations, how they're going with our hotel partners. Paul King – CIBC World Markets: Okay, great, thank you. Helpful.

You bet.

Thanks. Your next question comes from Anthony Noto with Goldman Sachs. Please go ahead.

Thank you very much. Dara, I was wondering if you could you give us a sense, or Mike, what the net revenue rate would have been relative to a year ago without any change in advertising revenue? And then, I'm not sure if you'll share this with us, but what percentage of your hotel contracts have been renewed in the last 12 months, to give us a sense for how much more there is to go there? And I think that you mentioned that Hotwire's air revenue increased by 1%? I didn't know if you had a perspective on the hotel business there. Thanks. Michael Adler : Anthony, on the raw margins for the media side, it is helping us. I think that it's...my guess is around 20 basis points delta, maybe a little bit less than that, as far as the fact of that business. And it's pretty simple, which is that the advertising business in general is growing faster, call it, than the transactional business. It is close to 100%, call it revenue margin if you want to define it as that. So, that business growing faster helps their overall revenue margins. That said, there are a lot of puts and takes here, Anthony. For example, the faster our corporate business grows, because that tends to have a lower raw margin than the rest of our business. It has a smaller merchant hotel portion. The faster our corporate business grows, the lower our raw margins go. So there are a lot of puts and takes; the media business definitely helps. What was the second question?

Hotel contracts have been renewed in the last twelve months: what percentage? Michael Adler : We have a number... I'm not going to give you a percentage, but I'll give you an idea. Which is, we do have a number of our larger hotel contracts coming up this year, the big chain contracts. And you've seen some of the results: we saw Shangri-La, etc. Hopefully we'll come up with some pretty good news in the near term on more contracts. So we feel pretty good about it. That said, our relationships with independents are, on an annual basis…we're renewing these contracts with our independents as well. So renewals are going on every day at this company. Okay?

Okay, great, thank you. Michael Adler : You bet.

And your next question comes from Chris Gutek with Morgan Stanley. Please go ahead.

Thanks good morning. A couple of questions. Given the changes in ownership among some of the competitors, specifically more private equity ownership, that would seem to imply the potential for further consolidation in the online travel business. And I’m curious, especially in the context of your last call where you suggested you didn’t have any interest in owning a GDS. If you wouldn’t mind sharing your updated thoughts for the potential for further consolidation and Expedia’s potential to participate in that?

Sure, I mean the movement that we’ve seen, at least in the travel distribution front, really don’t have much to do with consolidation they have to do more with recapitalization. We view it as a positive in that there is some very smart money that is coming in and making long term investments in the travel distribution sector, so we think that certainly is an encouraging sign with our buybacks and taking in 15% of our own equity, you can see that we share in that believe, which is long term that the travel distribution sector is going to grow and we bring a ton of value into the equation. So from that standpoint it's interesting and encouraging. I think what remains to be seen is what effect the private equity activity is going to have on the actual operations of the businesses that have gone private. You know, on the one hand it could be distraction for management. You know, not knowing whether you're public or private or who your owners are going to be. So that could be a positive relative to us. On the other hand, you have management much more focused on running the business rather than the fund that (inaudible) having on these quarterly calls. So that could be a relative negative. You know, all that said, I think we're counting on hefty competition going forward and we're very much focused on growing our business and continuing to expand globally.

And a follow up on the first question you guys had. If you look at the domestic gross booking growth trend, it's decelerated for six straight quarters. I would presume that if you strip out the corporate travel business, a quarter domestic leader businesses is actually shrinking a little bit. And I know that you don't want to give specific guidance but when you look at the next couple of quarters, is there reason to believe or be optimistic that that will actually be positive growth in the next couple of quarters in the core domestic leisure business for gross booking's growth?

Well, you know if we do our job then there is reason to be optimistic. I mean, I don't mean to be flip (inaudible) on that. I think we've demonstrated with Hotels.com that we could turn around a good brand and make it a great brand. And with Expedia.com I think that we are essentially working the same play book. It’s about improving the user experience and customer service first of all. Getting better supply, which I think we're working on. AirTran is back in our market place which is great. We just signed a deal with Frontier as well. We've always talked about loyalty as being a potentially interesting factor in these. And we've launched a thank you program which is, we think, much better than your average loyalty program. And then improvements on marketing technology we think are going to yield results. So we internally have reason to be optimistic but we know that we have a lot to prove to you guys.

Thanks, Dara.

Your next question comes from Michael Millman with Soleil Securities Group. Please go ahead.

Thank you. I guess a couple things as well as in line with your discussions about the improving of the site, can you talk about what your trip planning, trip experience initiatives have shown? Also on your Hotels.com you said 50% European growth. Can you talk about whether that's directly comparable to the kind of things that Priceline is doing or is it still with PierOne? And then I have just a quick sort of house keeping question.

Michael, what was at the end of your question on Hotels.com, you said "is it comparable" and then you said something I didn't get.

Okay, Priceline has been showing these 100% growth rates. A lot of that having to do with, as you well know, second tier hotels. So I was wondering if your Hotels.com growth is {inaudible} (3:41) in first tier, second tier...

I see, let me take your first question on the trip planning, trip experience. I think it's too soon to tell for us. If you look at the new site, it does create the impetus for our travelers to experiment, to explore a bit more which something that we're encouraging. One, because it’s a good experience for the travelers. It encourages them to come to Expedia much earlier in their planning process rather than call it when they decided whether they're going to go and buy. And in general, our investment in content, our investment in TripAdvisor, and we think our continued investment in the content and media space are going to be designed and moving upwards in the traveler consideration, so to speak. So we're optimistic about it. But I think it's too early for me to give you specific results. On Hotels.com, the business is obviously growing in the EU nicely but we are still behind the kind of growth rates that Priceline has put up there. And we don't know exactly what the distribution of their growth is as far as in, call it, primary and secondary cities. We do believe that we have a greater concentration in larger tourist destinations in the continent…The type of destinations where you got international travelers going at the percentage of our business overall. So we think that the secondary cities are a real opportunity. We obviously haven't solved that opportunity and we haven't, call it, penetrated those secondary cities the way that Priceline has. And we have the management team in Europe who is more than competent, who is very much focused on what Priceline is doing and is focused on catching up to those guys.

Okay, and a quick question. You show $46 million revenue, non-transaction. Should we assume that that's advertising and/or TripAdvisor? Or is it something else?

Sorry Michael. Can you repeat the dollar amount? Just not sure where you came up with that.

I subtracted your transaction revenue, the domestic and international revenue from your total $531 million revenue.

Those should add. Domestic revenue was $368 million for the quarter and international was $164 million. But is there something maybe at the core of your question around advertising we could perhaps address?

Well I guess I was looking for how much advertising…and what the revenues for advertising are? And what the revenue is for trip advisor work?

Now that's not something we're going to get into a tremendous amount of detail on. I would just reiterate what Dara said earlier around the year on year change in revenue margin would have been a little less than 20 basis points more had we not had the benefit of that advertising. Can we have the next question please, Operator?

And your next question comes from Scott Devitt with Stifel Nicolaus. Please go ahead. Scott Devitt – Stifel Nicolaus: Thank you. As I look at Priceline, TravelPort, and Travelocity over the past 18 months, it seems like Expedia has been losing share to competitors over that time horizon. I was wondering if you could talk about your longer term ambitions and strategy in terms of market share versus cash flow maximization in specifically 2007 and 2008? Thanks.

I think you have to balance both share and cash flow maximization. You know, in the end, and I'd say in the final say, we are focused on cash flow maximization. However we are keenly aware that that share has a ton to do with the long term prospect of the company so it's a trade off that you do look at and we're certainly not happy about losing share to our competition. You know, that said, the majority of our share loss has been domestic. I think international we certainly have Priceline that's growing very very quickly but compared to basically all the other competition out there in the international market places, we're growing very well. We're executing very well. We're starting to make significant investments in the Asian-Pacific region which aren't going to return, call it, big share dollars early on but we think are the right long-term investments to make. If you do look at the domestic business and what’s going on there, I do want to point out that part of the domestic results are as a result of capital allocation decisions that we've made. We determined around a year and a half ago that we needed to make some very fundamental platform investments in the Expedia platform in order to position us to grow for the long term. So to some extent we took capital that we might have been spending on marketing and we shifted that capital to spend in technology in infrastructure. That's the reason why you see the CapEx numbers for the company going up pretty significantly and to the extent that we were investing incremental doc (inaudible) marketing, we took most of those dollars off-shore. We took most of those dollars to the international markets. We took some of those dollars into the Asian-Pacific regions. We invested some of those dollars in the corporate business that we're very hopeful of. So we could have, if we wanted to operate Expedia.com domestically and see higher gross bookings growth and less share losses. But we thought from a capital perspective, the decisions that we make are sound decisions. What you will see in 2007 and 2008 is a shift of incremental capital back into the Expedia.com brand. You’re going to see that in Q2 especially compared to what we saw last year which is why Mike was saying that Q2 was going to be incrementally more difficult from a bottom line standpoint. So these are capital decisions that we’re making. We’re not satisfied with our share results but they are the results of capital allocation decisions that we are making. Scott Devitt – Stifel Nicolaus: And then separately, could you give us the cash tax rate of the business in 2006 and then what you expect it to be in 2007.

The cash tax rate in ’06 was in the mid to high 20’s and we expect it to approach our A&I tax rate of 36-37% on a go forward basis. Scott Devitt – Stifel Nicolaus: Thanks.

Thank you, and the next question comes from Mark Mahaney with Citigroup. Please go ahead. Mark Mahaney - Citigroup : Thank you, two questions. The transactions growth rate did moderately re-accelerate in the December quarter but I think it’s probably below where you’d like it to be. Would you want to give us a range of where you think you’d like to see sustainable transactions growth going forward? And then secondly could you give us a quick a quick update on your options in China with eLong and any thoughts on what you want to do with that over the next 12 to 24 months? Thank you. Dara Khosrowshahi : You bet, Mark. I don’t think we’re going to comment on a long term sustainable transaction growth other than saying that we’re hopeful that it gets better from here. As far as the eLong option in China, we do have an opportunity to buy in the balance of eLong. I don’t think it’s something that we’re going to do in the short term. We think that eLong is very much a local business in China and we want to make sure that we’ve got local management who is very much (inaudible) on how they build that business and what they do from a day to day stand point. We think it’s a good thing and so we expect to remain where we are for the near term. Mark Mahaney - Citigroup : Thank you. Dara Khosrowshahi : You bet.

Thank you. The next question comes from Aaron Kessler with Piper Jaffray. Please go ahead. Aaron Kessler - Piper Jaffray : Thank you. A couple of questions. Firstly, please give a sense of where your raw margins are internationally, and if you think that those are sustainable or those are going to have to come down over time similar to the U.S market? Also I know on the pricing cap, merchant load factors are becoming more favorable on the airlines for them. I’m not sure if that’s just more the naming of their own price model or if you’re seeing that as well in terms of load factors becoming more favorable to your model? Thank you. Dara Khosrowshahi : Sure. I’ll answer the second question first, as far as merchant load factors. We’re seeing similar signs at Hotwire that I think Priceline referenced. Obviously we don’t have a good view into their business but we did talk about how Q4 revenues at Hotwire improved and we’re certainly seeing early trends in ’07 at Hotwire that are encouraging. So I think you’re getting to a point right now where airlines are continuing to try to push up price. There does seem to be some resistance from consumers out there and it remains to be seen how that plays out, but in that kind of an environment the opaque channel does become an incrementally more interesting channel and we’ve seen a bit of that. So we’ll see how it goes. We’re encouraged by the early results. Mike, do you want to talk about international margins? Michael Adler : Yes. Over the long run we think that international margins at a higher level than domestic is sustainable and it’s due in large part to the increased level of fragmentation of the supply base…

Our next question comes from Imran Khan with J.P. Morgan. Imran Khan – J.P. Morgan: Hi, thank you for taking my questions. Two questions. Firstly, in terms of an international growth rate, I was wondering if you were saying a growth acceleration of every country or if any specific country is doing better than others? Second, if we exclude the Microsoft MSN traffic lost year-over-year, can you give us some sense how’s the traffic doing for Expedia and what are the conversion rates for Expedia traffic. Thank you. Dara Khosrowshahi : On international, the results that we saw, the positive results, were pretty broad. So, I’d say almost all those across Europe, we had good performance. I would single out Germany and Italy and the Hotels.com brand across Europe as being particularly strong the corporate business did quite nicely as well. But the strength was fairly broad. You should also note that FX looked pretty good and that certainly helped. On the MSN side, I don’t want to specifically comment on the size of MSN or the percentage of the whole. That said, it was material and if you look at the issues that we’re having as far as gross bookings right now, it has more to do on Expedia side with traffic more than with conversion. So conversion rates are pretty stable. We’re not having conversion problems. And with the ThankYou program and some of the other programs that we have in place, we’re actually hoping that we can move conversion up. It’s really more about investment and marketing spend to get travelers, new consumers to a site and that’s what we’re very much focused on for the balance of ’07.

Thank you. We have time for one final question and that question comes from Scott Kessler with Standard and Poor’s. Scott Kessler – Standard and Poor’s: Thanks a lot. Most of my questions have been asked and answered, but I did have two related to Europe. First of all, is there any way you could detail what percentage of your either overall revenues or your international revenues were derived from Europe? And also, relative to that geography, can you talk about what you think the major drivers of your potential share gains will be say in 2007 for example? Thanks Dara Khosrowshahi : You bet. I think that the vast majority of our international revenues were from Europe of any of our APEC businesses. I’m getting a number 75% of our international revenues roughly being from Europe. Asia Pacific revenues are obviously pretty small to start with, is half in scale, their, Australia, Japan, etc. have a fairly long way to go. As far as the drivers for Europe, it’s continued execution across the European territories. One thing that we are doing differently in Europe this year than we did last year, we are going to investing incrementally more brand money and some of the secondary territories. We're going to be spending some branding money on the Hotels.com brand. We have started on that and it's too early to tell but the results seem to be promising. We are going to be putting some more branding money against the Expedia in France, and Expedia in Germany, and to some extent in Italy as well. So, that may be part of again the bottom line pressure that you see in Q2 but we think that with the mix of, call it, tactical and more strategic branding moneys, we should be and we are investing in the Expedia and Hotels brand in the EU and we hope to see the returns of that investment in kind of quarters in years to come. Scott Kessler – Standard and Poor’s: Great. Very helpful. Thanks Dara.

You bet, Scott. I think that's it for questions. Michael Adler : Okay I just have one more clarification, Dara. Sorry, from someone who had emailed in a question on where that $30 million tax payment to Microsoft would appear in the cash flow statement? It would be in cash flow from operating activities. I just wanted to clarify that.

Okay, well thank you everyone for joining our call. I did want to say a special thank you to the employees of Expedia this year. I think that this year we made real progress during the year. I've been on my job for two and a half years and I've never seen our employee population working as hard as they are now. And the passion that they're putting into the business and the hope and the optimism that I see, really gets me excited to come to work everyday. So a special thank you to everyone who is working as hard as they are right now. And with that, thank you.

Thank you. Ladies and gentleman that will conclude today's teleconference. We thank you for your participation and at this time you may disconnect.