TripAdvisor Spin-Off FAQs

Immediately prior to the spin-off, Expedia, Inc. effected a one-for-two reverse stock split.  Therefore, as a result of the stock split and the spin-off, for every two shares of Expedia common stock owned on December 20, 2011, shareholders received one share of new Expedia common stock (EXPE) and one share of TripAdvisor common stock (TRIP).

Following the close of trading on December 20, 2011, 100% of the outstanding shares of TripAdvisor, Inc. was spun off to Expedia shareholders of record as of December 20, 2011, ending Expedia’s ownership of TripAdvisor.

For general information about the allocation of cost basis for U.S. income tax purposes between Expedia and TripAdvisor stock following the stock split and spin-off, please see this memorandum: Expedia, Inc. and TripAdvisor, Inc. Shareholder Tax Basis Information.

No.  Expedia effected the spin-off by means of a reclassification of its capital stock.

Immediately prior to the spin-off, Expedia, Inc. effected a one-for-two reverse stock split.  As a result, holders of Expedia common stock as of immediately prior to the effective time of the spin-off became entitled to receive one share of TripAdvisor common stock and one share of Expedia common stock for every two shares of Expedia common stock held immediately prior to the completion of the spin-off.

Expedia’s spin-off of TripAdvisor was generally treated as a non-taxable event in the United States for federal tax purposes to holders of Expedia common stock.  Expedia did not pursue a determination of eligibility for tax status in Canada or any other jurisdiction outside of the United States.  Accordingly, each non-U.S. shareholder should consult his or her tax adviser to seek non-taxable status on an individual basis.  For more information about the tax consequences of the spin-off, see the Expedia/TripAdvisor prospectus dated October 31, 2011 (included as part of the registration statement on Form S-4, most recently filed with the SEC on 11/1/11).

You can visit the Investor Relations page on http://www.tripadvisor.com or use the following contact information:

TripAdvisor, Inc. Contacts

Investor Relations
(617) 795.7848
ir@tripadvisor.com

Communications
uspr@tripadvisor.com