Expeditors Announces 2009 Fourth Quarter Earnings Per Share of $.321

Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,246,911,000 and $110,354,000 as compared with $1,307,389,000 and $119,205,000 for the same quarter of 2008, a decrease of 5% and 7%, respectively. Net earnings attributable to shareholders were $69,135,000 for the fourth quarter of 2009, compared with $77,728,000 for the same quarter of 2008, a decrease of 11%. Net revenues for the fourth quarter of 2009 decreased 8% to $369,712,000 as compared with $402,481,000 reported for the fourth quarter of 2008. Diluted net earnings attributable to shareholders per share for the fourth quarter were $.32 as compared with $.36 for the same quarter in 2008, a decrease of 11%. The Company also reported that same store net revenues and operating income decreased 8% and 7%, respectively, for the fourth quarter of 2009 when compared with 2008.

For the year ended December 31, 2009, total revenues and operating income were $4,092,283,000 and $385,001,000 as compared with $5,633,878,000 and $473,136,000 for the same period in 2008, decreases of 27% and 19%, respectively. Net earnings attributable to shareholders fell to $240,217,000 from $301,014,000 in 2008, a decrease of 20%. Net revenues for the year decreased to $1,382,786,000 from $1,603,261,000 for 2008, down 14%. Diluted net earnings attributable to shareholders per share for the year 2009 were $1.11 as compared with $1.37 for the same period of 2008, an 19% decrease. Same store net revenues and operating income decreased 14% and 19%, respectively, for the year ended December 31, 2009, when compared with the same period of 2008.

"In a year that began amidst fears of a global financial Armageddon, these fourth quarter results were somewhat better than anticipated and we’re very encouraged by them. Against all stated odds, we actually ended up having a fourth quarter peak season in 2009,” said Peter J. Rose, Chairman and Chief Executive Officer. "Despite the capacity challenges in the airfreight markets, which resulted in rapid rate increases and associated yield declines, it was reassuring to once again experience airfreight tonnages greater than those handled during the same period the year before—up 16% for the fourth quarter and 36% for the month of December. Fourth quarter ocean freight container counts were 5% lower than 2008 levels, but that was the smallest quarterly ‘lower’ that we’ve seen all year and December was actually up 4% on a year-over-year basis—which was a first this year. In short, we were plenty busy and, as expected, our people came through with flying colors. For a while there during the fourth quarter it almost seemed like ‘old times’,” Rose went on to say.

"This fourth quarter was both a vindication and an affirmation of the correctness of strategic decisions we made nearly eighteen months ago. We started with a ‘no layoffs’ strategy to protect our most important assets…our people. Despite being chided by some, that move has been applauded by those who matter most…our employees, our customers and our shareholders. We could not have managed this recent peak season if we had over-reacted and executed whole-scale layoffs last spring and summer,” Rose commented. "Instead, we used available resources to vigorously pursue a strategy of customer retention and aggressive market share expansion. When the markets turned up during peak season, we saw just how effective those strategies were. We also reaffirmed our strong commitment to cost management. A rigid focus on all of these strategies paid off. We’re still here and we’re still standing...all of us, battered and bruised a bit, but better for the struggle. Having proven our mettle in 2009, we’re excited about 2010,” concluded Rose.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 182 full-service offices, 64 satellite locations and 4 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.

¹ Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

During the fourth quarter of 2009, the Company closed its offices in Venezuela.

Investors may submit written questions via e-mail to: investor@expeditors.com

Or by fax to: (206) 674-3459

Questions received by the end of business on February 26, 2010 will be considered in management’s 8-K "Responses to Selected Questions” expected to be filed on or about March 5, 2010.

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on future economic trends, improving business climate, positive trends in freight volumes, ability to retain customers, ability to reduce costs and ability to grow market share. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual and Quarterly Reports filed with the Securities and Exchange Commission.