The Board of Directors of AirAsia Berhad (“AirAsia” or “the Company”) is pleased to announce that the Company had on 29 March 2011 entered into a joint venture agreement (“JV Agreement”) with Expedia Inc (“Expedia”) for the purpose of establishing an Online Travel Agency with three main brands namely, AirAsiaGo, GoRooms and Expedia (the “JV”).

The JV shall be operated through a joint venture company (“JV Company”) to be equally owned by AirAsia and Expedia. The number of shares, type and par value of such shares shall be announced upon the incorporation of the JV Company.

Further details are set out in the attachment below.

This announcement is dated 29 March, 2011.