EXPD Expeditors International of Washington Inc

Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $59,260,0001 for the first quarter of 2009, as compared with $66,472,000 for the same quarter of 2008, a decrease of 11%. Net revenues for the first quarter decreased 10% to $336,515,000 as compared with $374,328,000 reported for the first quarter of 2008. Total revenues and operating income were $912,685,000 and $91,474,000 in 2009, as compared with $1,307,321,000 and $105,564,000 for the same quarter of 2008, decreases of 30% and 13%, respectively. Diluted net earnings attributable to shareholders per share for the first quarter were $.27 as compared with $.30 for the same quarter in 2008, a decrease of 10%. The Company also reported that same store net revenues and operating income decreased 10% and 13%, respectively, during the first quarter of 2009, as compared with the same period in 2008.

"While this quarter was unusual, our people did an outstanding job capitalizing on spot market buying opportunities, particularly the airfreight group. The March quarter end rush did not materialize to the extent that we�ve experienced it in the past,� commented Peter J. Rose, Chairman and Chief Executive Officer. �We obviously would liked to have reported higher quarterly earnings. However, we saw no long-term benefit in resorting to short term measures, like employee layoffs or other actions which could severely damage the value of our network by compromising our customer service capability, just to pick up a couple of cents per share. We have not forgotten that ours is a service business. Our people are our most valuable assets. It is they who have worked diligently year-in-and-year-out to deliver the kind of customer service and operating efficiencies that created that value in the first place. There are many things that we could say about these results, but ours is not a culture of excuses and looking backwards. It is a culture of taking responsibility and moving forward. We�ve never �lived for the quarter,� and we certainly aren�t going to start doing so now. Quarters come and quarters go, but long term stability at Expeditors comes from staying true to the established and proven tenets of Expeditors� culture," Rose said.

�Like most businesses, we�ve been faced with difficult options these past several months. Fortunately our culture has always proven to be our most effective compass. The value of our most vital assets, our people, is not shown on our balance sheet. The value they create in servicing our customers, however, manifests itself daily. It would be inconsistent with our culture that those who create and sustain value bear the brunt of these times. We�ve always run lean, so our people remain busy and engaged. We continue to take market share and operate profitably. We have record cash balances, strong cash flow, and robust operating margins,� Rose continued. �One of our District Managers recently asked if I thought 2009 was going to be a �scary� year. The response was easy. �No, 1981, when we first began operations, was a scary year. It was in the middle of a very severe recession. We had no customers, we had no money, we had no global network and there were only 20 of us. By contrast, 2009 has tremendous opportunities. We have some 10,000 customers, we have nearly $900 million in cash, we have a global network of 250 offices and there are over 12,000 of us. Now is not a time to be scared, it�s time to go sell some more business�...and that is just what we intend to do,� concluded Rose.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 181 full-service offices, 68 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 These results include a $3,123,000 credit to compensation expense. This credit �trues up� the difference between the higher actual pre-vesting forfeiture experience and the pre-vesting forfeiture assumptions used to calculate stock option expense, as required by FAS 123R, related primarily to stock options granted in 2006 which begin vesting in May 2009.

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. 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, inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political 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.

Expeditors International of Washington, Inc. Financial Highlights Three months ended March 31, 2009 Unaudited

(in 000's of US dollars except share data)

� � Three Months Ended � 2009 � 2008 % Decrease Revenues $ 912,685 $ 1,307,321 30 % Net revenues $ 336,515 $ 374,328 10 % Operating income $ 91,474 $ 105,564 13 % Net earnings attributable to shareholders $ 59,260 $ 66,472 11 % Diluted earnings attributable to shareholders per share $ .27 $ .30 10 % Basic earnings attributable to shareholders per share $ .28 $ .31 10 % Diluted weighted average shares outstanding 216,319,959 220,437,979 Basic weighted average shares outstanding 212,100,504 213,062,231

During the first quarter of 2009, the Company opened one full-service office in New Orleans, Louisiana (formerly a satellite of Houston, Texas) and one satellite office in Tulsa, Oklahoma. The Company closed one full-service office in Port Louis, Mauritius.

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 May 8, 2009 will be considered in management�s 8-K �Responses to Selected Questions� expected to be filed on or about May 15, 2009.

� EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) (Unaudited) � � � March 31, December 31,

Assets

2009 2008 � Current assets: Cash and cash equivalents $ 883,679 $ 741,028 Short-term investments 598 658 Accounts receivable, net 613,283 788,176 Deferred Federal and state income taxes 8,924 7,986 Other current assets 24,788 35,511

Total current assets

1,531,272

1,573,359 � Property and equipment, net 488,804 493,129 Goodwill, net 7,927 7,927 Other intangibles, net 5,904 6,503 Other assets 20,915 19,921 $ 2,054,822 $ 2,100,839

Liabilities and Shareholders' Equity

� Current liabilities: Accounts payable 407,021 491,823 Accrued expenses, primarily salaries and related costs 148,145 150,487 Federal, state and foreign income taxes 29,465 28,039 Total current liabilities 584,631 670,349 � Deferred Federal and state income taxes 47,657 46,574 � Shareholders' equity: Preferred stock; none issued -- --

Common stock, par value $.01 per share; issued and outstanding 212,134,033 shares at March 31, 2009 and 211,973,377 shares at December 31, 2008

2,121 2,120 Additional paid-in capital 6,154 7,150 Retained earnings 1,431,616 1,372,356 Accumulated other comprehensive loss (26,704) (15,208) Total shareholders' equity 1,413,187 1,366,418 � Noncontrolling interest 9,347 17,498 Total equity 1,422,534 1,383,916 � � $ 2,054,822 $ 2,100,839 � � EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except share data) (Unaudited) � � Three months ended March 31, 2009 2008 Revenues: Airfreight services $ 374,456 $ 599,763 Ocean freight and ocean services 318,634 446,792 Customs brokerage and other services � 219,595 � � 260,766 � Total revenues � 912,685 � � 1,307,321 � � Operating expenses: Airfreight consolidation 250,369 461,099 Ocean freight consolidation 238,226 360,440 Customs brokerage and other services 87,575 111,454 Salaries and related costs 187,209 205,815 Rent and occupancy costs 18,724 19,435 Depreciation and amortization 9,958 9,772 Selling and promotion 6,222 9,504 Other � 22,928 � � 24,238 � Total operating expenses � 821,211 � � 1,201,757 � � Operating income � 91,474 � � 105,564 � � Interest income 3,606 4,964 Interest expense (15 ) (71 ) Other, net � 4,553 � � 1,274 � Other income, net � 8,144 � � 6,167 � � Earnings before income taxes 99,618 111,731 � Income tax expense 40,249 45,210 � � Net earnings � 59,369 � � 66,521 � � Net earnings attributable to noncontrolling interest (109 ) (49 ) � � Net earnings attributable to shareholders $ 59,260 � $ 66,472 � � Diluted earnings attributable to shareholders per share $ 0.27 � $ 0.30 � � Basic earnings attributable to shareholders per share $ 0.28 � $ 0.31 � � Weighted average diluted shares outstanding � 216,319,959 � � 220,437,979 � � Weighted average basic shares outstanding � 212,100,504 � � 213,062,231 � � EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) � � Three months ended March 31, � 2009 � � 2008 � Operating Activities: Net earnings attributable to shareholders $ 59,260 $ 66,472

Adjustments to reconcile net earnings to net cash provided by operating activities:

Provision for losses on accounts receivable 2,644 (177 ) Deferred income tax expense 6,451 8,826 Excess tax benefits from stock plans (3,062 ) (1,506 ) Stock compensation expense 6,900 11,280 Depreciation and amortization 9,958 9,772 Gain on sale of assets (4 ) (575 ) Net earnings attributable to noncontrolling interest 109 49 Other 362 417 Changes in operating assets and liabilities: Decrease in accounts receivable 153,964 59,754 (Increase) decrease in other current assets (15 ) 55

(Decrease) increase in accounts payable and other current liabilities

(80,170 ) 15,078 Increase in income taxes payable, net � 15,885 � � 9,260 � Net cash provided by operating activities � 172,282 � � 178,705 � � Investing Activities: Decrease in short-term investments 44 47 Purchase of property and equipment (8,656 ) (10,210 ) Proceeds from sale of property and equipment 44 42 Other � (1,482 ) � 363 � Net cash used in investing activities � (10,050 ) � (9,758 ) � Financing Activities: Borrowings of short-term debt, net - 810 Proceeds from issuance of common stock 8,536 4,614 Repurchases of common stock (19,212 ) (18,618 ) Excess tax benefits from stock plans 3,062 1,506 Distributions to noncontrolling interests - (107 ) Purchases of noncontrolling interest � (2,122 ) � - � Net cash used in financing activities � (9,736 ) � (11,795 ) � Effect of exchange rate changes on cash � (9,845 ) � 9,215 � � Increase in cash and cash equivalents 142,651 166,367 � Cash and cash equivalents at beginning of period � 741,028 � � 574,599 � � Cash and cash equivalents at end of period $ 883,679 � $ 740,966 � � Interest and taxes paid: Interest $ 15 71 Income taxes 15,364 24,272 � EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Business Segment Information (In thousands) (Unaudited) � �

United States

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Other North America

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Latin America

� Asia �

Europe and Africa

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Middle East and India

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Australasia

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Eliminations

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Consolidated

Three months ended March 31, 2009 Revenues from unaffiliated customers $ 236,328 29,767 16,131 428,282 132,865 57,112 12,200 912,685 Transfers between geographic areas � 18,508 1,882 3,441 3,732 6,773 3,567 2,302 (40,205 ) - Total revenues $ 254,836 31,649 19,572 432,014 139,638 60,679 14,502 (40,205 ) 912,685 � Net revenues $ 131,147 16,199 10,513 94,698 54,118 21,074 8,766 336,515 Operating income $ 30,636 4,339 2,365 38,227 8,771 4,339 2,797 91,474 Identifiable assets $ 1,002,406 65,796 35,452 482,508 332,538 113,795 23,232 (905 ) 2,054,822 Capital expenditures $ 6,095 149 231 543 1,086 340 212 8,656 Depreciation and amortization $ 5,310 326 238 1,933 1,406 594 151 9,958 Equity $ 1,561,104 35,135 26,686 393,599 131,539 62,567 13,689 (801,785 ) 1,422,534 � Three months ended March 31, 2008 Revenues from unaffiliated customers $ 300,072 35,069 19,734 679,850 185,564 67,193 19,839 1,307,321 Transfers between geographic areas � 24,189 2,073 3,199 5,111 10,502 3,997 2,134 (51,205 ) - Total revenues $ 324,261 37,142 22,933 684,961 196,066 71,190 21,973 (51,205 ) 1,307,321 � Net revenues $ 149,831 16,674 11,869 98,741 65,773 19,741 11,699 374,328 Operating income $ 32,690 3,131 3,112 46,021 12,437 4,701 3,472 105,564 Identifiable assets $ 1,002,929 70,349 49,176 465,475 444,133 109,713 36,072 5,396 2,183,243 Capital expenditures $ 3,638 336 269 3,303 1,610 860 194 10,210 Depreciation and amortization $ 5,364 312 297 1,254 1,768 528 249 9,772 Equity $ 1,450,614 34,711 24,673 362,378 171,294 52,381 23,068 (802,400 ) 1,316,719