Priceline.com and Virgin America Sign New Multi-Year Partnership Agreement

Business Wire, April 15, 2008

NORWALK, Conn. & SAN FRANCISCO -- Priceline.com (Nasdaq: PCLN) and Virgin America, the new California-based carrier aimed at making flying good again, today announced a new multi-year distribution partnership agreement. Under the partnership agreement, Priceline.com will have access to all of Virgin America's published fares, schedules and inventory.

"With attractive fares and upscale in-flight amenities, Virgin America is becoming one of the nation's most popular and fastest-growing airlines," said Chris Soder, President, North American Travel, for Priceline.com. "We believe Virgin America's unique travel experience is an excellent fit for Priceline.com's smart customer base, and we are pleased to add their flights and fares to our program."

Virgin America's brand new planes feature a host of innovative guest features, including 25 on-demand movies, live TV, videogames, 3,000 MP3 tracks, on-board seat-to-seat chat and even the ability to order food and drink right from the video touch-screen at every seatback. Full terms of the agreement between Priceline.com and Virgin America were not disclosed.

"Priceline.com customers are savvy travelers who demand the best value when making their trip choices," said David Cush, President and CEO of Virgin America. "Virgin America's mission is to make flying good again by bringing consumers attractive fares and a unique, top-of-the-line flying experience. We're thrilled to be partnering with such an important distribution channel and we think that Priceline.com's customers will respond positively to the high value proposition we're bringing to the market."

Launched in August 2007, Virgin America currently flies to seven cities with daily flights from: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, LAX to JFK, LAX to IAD, SFO to SEA and LAX to SEA. In addition to these non-stop markets, Virgin America also offers convenient connecting flights from Las Vegas, San Diego, and Seattle to New York and Washington.

About Priceline.com[R] Incorporated

Priceline.com Incorporated (Nasdaq: PCLN) www.priceline.com provides online travel services in 23 languages in over 60 countries in Europe, North America, Asia, the Middle East and Africa. Priceline.com operates Booking.com, a leading international online hotel reservation service, priceline.com, a leading U.S. online travel service for value-conscious leisure travelers, and Agoda.com, an Asian online hotel reservation service. Priceline.com believes that Booking.com is Europe's largest and fastest growing hotel reservation service, with a network of affiliated Web sites. Booking.com operates in over 60 countries in 18 languages and offers its customers access to over 41,000 participating hotels worldwide. In the U.S., priceline.com gives customers more ways to save on their airline tickets, hotel rooms, rental cars, vacation packages and cruises than any other Internet travel service. In addition to getting great published prices, leisure travelers can narrow their searches using priceline.com's TripFilter advanced search technology, create packages to save even more money, and take advantage of priceline.com's famous Name Your Own Price[R] service, which can deliver the lowest prices available. Priceline.com also operates the following travel websites: Travelweb.com, Lowestfare.com, RentalCars.com and BreezeNet.com. Priceline.com also has a personal finance service that offers home mortgages, refinancing and home equity loans through an independent licensee. Priceline.com licenses its business model to independent licensees, including priceline mortgage and certain international licensees.

About Virgin America:

As San Francisco's hometown airline, Virgin America will serve as many as 10 cities within a year of operation, and up to 30 cities within five years. Virgin America's base of operations is San Francisco International Airport's ultra-modern, spacious and convenient International Terminal. The airline's brand-new Airbus A320-family aircraft offer guests their own interactive in-flight entertainment systems, plugs for laptops and other electronic devices and a host of other innovative features aimed at making flying good again. In Zagat's 2007 Global Airlines Survey of frequent fliers, the airline was ranked #1 among domestic carriers for quality in First Class and #2 for quality in Main Cabin. To learn more: www.virginamerica.com