Expeditors International of Washington (EXPD) 8-K Results of Operations and Financial Condition

Exhibit 99.1

EARNINGS RELEASE

By:	Expeditors International of Washington, Inc.
	1015 Third Avenue, Suite 1200
	Seattle, Washington 98104
	CONTACT:	R. Jordan Gates
		President and Chief Operating Officer
		(206) 674-3427	FOR IMMEDIATE RELEASE

EXPEDITORS ANNOUNCES 14% INCREASE IN 2007 ANNUAL EARNINGS

SEATTLE, WASHINGTON – February 12, 2008, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,446,582,000 and $107,616,000 compared with $1,244,348,000 and $99,655,000 for the same quarter of 2006, increases of 16% and 8%, respectively.  Net earnings were $70,057,000 for the fourth quarter of 2007, compared with $62,610,000 for 2006, an increase of 12%.  Net revenues for the fourth quarter of 2007 increased 13% to $379,441,000 as compared with $335,855,000 reported for the fourth quarter of 2006.  Diluted net earnings per share for the fourth quarter were $.32 as compared with $.28 for the same quarter in 2006, an increase of 14%.  The Company also reported that same store net revenues and operating income increased 13% and 8%, respectively, for the fourth quarter of 2007 when compared with 2006.

For the year ended December 31, 2007, total revenues and operating income were $5,235,171,000 and $423,400,000 compared with $4,633,987,000 and $375,116,000 for the same period in 2006, increases of 13% respectively. Net earnings rose to $269,154,000 from $235,094,000 in 2006, an increase of 14%.  Net revenues for the year increased to $1,452,961,000 from $1,290,960,000 for 2006, up 13%.  Diluted net earnings per share for the year 2007 were $1.21 as compared with $1.06 for the same period of 2006, also an increase of 14%.  Same store net revenues and operating income increased 12% and 13%, respectively, for the year ended December 31, 2007, when compared with the same period of 2006.

“We had a very solid 2007 and can look back with satisfaction at what we have accomplished this year.” said Peter J. Rose, Chairman and Chief Executive Officer. “We also think we did just fine in the fourth quarter considering some of the unanticipated costs we had to absorb relative to the Department of Justice’s (DOJ) ongoing investigation of the major players in our industry.  Legal fees and record keeping requirements associated with complying with the DOJ’s subpoena cost us nearly $4 million this quarter.  We’re not making excuses, we’re just explaining,” Rose commented.

“Looking forward to 2008, as we witness the political and economic media pundit du jour doing his or her best to talk us all into participating in some kind of a celebratory recession, we’ll continue to do what we do best. We will focus on improving customer service and gaining market share.  If we’d listened to these people back in 1981, we would have never started this Company in the first place.  As is our practice whenever the economic ‘doom and gloomsayers’ show up, we’ve officially banned the use of the ‘R’ word here at Expeditors.  When others perceive things are slowing in the short term, we see opportunity for the long term,” Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 175 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.

Certain 2006 amounts have been reclassified to conform to the 2007 presentation.

Expeditors International of Washington, Inc.

4th Quarter 2007 Earnings Release

February 12, 2008

Expeditors International of Washington, Inc.

Financial Highlights

Three months and Year ended

December 31, 2007 and 2006

Unaudited

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

	Three months ended December 31,						Year ended December 31,
	2007		2006		% Inc.		2007		2006		% Inc.
Revenues	$	1,446,582	$	1,244,348	16	%	$	5,235,171	$	4,633,987	13	%
Net revenues	$	379,441	$	335,855	13	%	$	1,452,961	$	1,290,960	13	%
Operating income	$	107,616	$	99,655	8	%	$	423,400	$	375,116	13	%
Net earnings	$	70,057	$	62,610	12	%	$	269,154	$	235,094	14	%
Diluted earnings per share	$	.32	$	.28	14	%	$	1.21	$	1.06	14	%
Basic earnings per share	$	.33	$	.29	14	%	$	1.26	$	1.10	15	%
Diluted weighted average shares outstanding	221,192,441		223,282,511				221,799,868		222,223,312
Basic weighted average shares outstanding	213,095,428		213,148,011				213,314,761		213,454,579

Offices opened during the Fourth Quarter of 2007 (· = Full Service,+ = Satellite)
ASIA	SOUTH PACIFIC
Yantai, People’s Republic of China· (Converted from a Satellite to a Full Service)	Christchurch, New Zealand+ (Satellite of Auckland)

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 14, 2008 will be considered in management’s 8-K
“Responses to Selected Questions” expected to be filed on or about February 22, 2008.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

	December 31,		December 31,
	2007		2006
Assets
Current assets:
Cash and cash equivalents	$	574,599	$	511,358
Short-term investments	674		578
Accounts receivable, net	933,519		811,486
Deferred Federal and state income taxes	8,278		7,490
Other current assets	17,627		10,925
Total current assets	1,534,697		1,341,837
Property and equipment, net	497,892		449,247
Goodwill, net	7,927		7,927
Other intangibles, net	7,832		7,584
Other assets	20,717		15,743
	$	2,069,065	$	1,822,338
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	613,108		544,028
Accrued expenses, primarily salaries and related costs	129,669		122,081
Federal, state and foreign income taxes	26,976		43,036
Total current liabilities	$	769,753	$	709,145
Deferred Federal and state income taxes	$	55,533	$	26,827
Minority interest	$	17,208	$	16,275
Shareholders’ equity:
Preferred stock, par value $.01 per share.
Authorized 2,000,000 shares; none issued	—		—
Common stock, par value $.01 per share.
Authorized 320,000,000 shares; issued and outstanding 212,996,776 shares at December 31, 2007 and 213,080,466 shares at December 31, 2006	2,130		2,131
Additional paid-in capital	50,006		119,582
Retained earnings	1,143,464		934,058
Accumulated other comprehensive income	30,971		14,320
Total shareholders’ equity	1,226,571		1,070,091
	$	2,069,065	$	1,822,338

Certain 2006 amounts have been reclassified to conform to the 2007 presentation.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except share data)

(Unaudited)

	Three months ended						Twelve months ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenues:
Airfreight	$	696,835		$	617,989		$	2,407,582		$	2,229,545
Ocean freight and ocean services	474,613			394,897			1,820,558			1,553,048
Customs brokerage and other services	275,134			231,462			1,007,031			851,394
Total revenues	1,446,582			1,244,348			5,235,171			4,633,987
Operating expenses:
Airfreight consolidation	561,464			495,104			1,879,434			1,758,907
Ocean freight consolidation	385,751			314,900			1,473,942			1,230,468
Customs brokerage and other services	119,926			98,489			428,834			353,652
Salaries and related costs	206,519			184,402			791,879			701,824
Rent and occupancy costs	17,514			14,655			67,676			61,627
Depreciation and amortization	9,763			9,428			39,303			35,448
Selling and promotion	11,168			9,652			38,735			35,050
Other	26,861			18,063			91,968			81,895
Total operating expenses	1,338,966			1,144,693			4,811,771			4,258,871
Operating income	107,616			99,655			423,400			375,116
Interest expense	(37		)	(157		)	45			(198		)
Interest income	6,005			5,120			22,341			18,020
Other, net	419			(149		)	3,887			2,726
Other income, net	6,387			4,814			26,273			20,548
Earnings before income taxes and minority interest	114,003			104,469			449,673			395,664
Income tax expense	43,590			40,973			179,815			160,661
Net earnings before minority interest	70,413			63,496			269,858			235,003
Minority interest	(356		)	(886		)	(704		)	91
Net earnings	$	70,057		$	62,610		$	269,154		$	235,094
Diluted earnings per share	$	0.32		$	0.28		$	1.21		$	1.06
Basic earnings per share	$	0.33		$	0.29		$	1.26		$	1.10
Weighted average diluted shares outstanding	221,192,441			223,282,511			221,799,868			222,223,312
Weighted average basic shares outstanding	213,095,428			213,148,011			213,314,761			213,454,579

Certain 2006 amounts have been reclassified to conform to the 2007 presentation.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three months ended						Twelve months ended
	December 31,						December 31,
	2007			2006			2007			2006
Operating Activities:
Net earnings	$	70,057		$	62,610		$	269,154		$	235,094
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Provision for losses on accounts receivable	594			445			940			1,197
Deferred income tax expense (benefit)	(6,465		)	(11,795		)	18,991			4,172
Excess tax benefits from stock plans	(2,333		)	(1,204		)	(28,105		)	(23,406		)
Stock compensation expense	10,208			12,110			44,917			41,739
Depreciation and amortization	9,763			9,428			39,303			35,448
Loss (gain) on sale of assets	(49		)	32			(1,053		)	(182		)
Minority interest in earnings of consolidated entities	356			886			704			(91		)
Other	415			397			1,472			3,897
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	85,717			(657		)	(84,950		)	(96,414		)
Decrease (increase) in other current assets	1,983			2,351			(342		)	(1,571		)
Increase (decrease) in accounts payable and other current liabilities	(94,672		)	(28,294		)	46,881			85,012
Increase (decrease) in taxes payable, net	(2,514		)	8,589			4,673			48,392
Net cash provided by operating activities	73,060			54,898			312,585			333,287
Investing Activities:
Increase in short-term investments	(198		)	(166		)	(10		)	(419		)
Purchase of property and equipment	(11,953		)	(9,724		)	(82,786		)	(139,464		)
Proceeds from sale of property and equipment	90			80			504			397
Prepayment on long-term land lease	(4		)	—			(2,820		)	(1,761		)
Other	(473		)	253			(2,859		)	(1,260		)
Net cash used in investing activities	(12,538		)	(9,557		)	(87,971		)	(142,507		)
Financing Activities:
Net distributions to minority interests	—			(5,971		)	(316		)	(10,024		)
Proceeds from issuance of common stock	5,529			3,941			64,985			49,314
Repurchases of common stock	(21,467		)	(18,016		)	(207,584		)	(175,783		)
Excess tax benefits from stock plans	2,333			1,204			28,105			23,406
Dividends paid	(29,846		)	(23,444		)	(59,748		)	(47,020		)
Net cash used in financing activities	(43,451		)	(42,286		)	(174,558		)	(160,107		)
Effect of exchange rate changes on cash	346			8,774			13,185			16,791
Increase in cash and cash equivalents	17,417			11,829			63,241			47,464
Cash and cash equivalents at beginning of period	557,182			499,529			511,358			463,894
Cash and cash equivalents at end of period	574,599			511,358			574,599			511,358
Interest and taxes paid:
Interest	49			140			83			194
Income tax	47,814			42,951			146,353			103,715

Certain 2006 amounts have been reclassified to conform to the 2007 presentation.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

	United		Other	Far		Australia/	Latin	Middle	Elimi-		Consoli-
	States		N. America	East	Europe	New Zealand	America	East	nations		dated
Three months ended December 31, 2007
Revenues from unaffiliated customers	$	289,736	37,373	822,553	191,512	21,203	20,414	63,791			1,446,582
Transfers between geographic areas	$	27,880	2,616	5,066	11,068	2,376	3,226	3,519	(55,751	)	—
Total revenues	$	317,616	39,989	827,619	202,580	23,579	23,640	67,310	(55,751	)	1,446,582
Net revenues	$	155,236	18,058	96,653	68,201	12,485	11,222	17,586			379,441
Operating income	$	23,325	6,251	49,773	15,696	3,615	3,508	5,448			107,616
Identifiable assets at quarter end	$	939,203	72,150	422,038	443,758	34,174	46,492	100,934	10,316		2,069,065
Capital expenditures	$	4,392	583	3,354	2,258	281	302	783			11,953
Depreciation and amortization	$	5,347	324	1,154	1,856	255	322	505			9,763
Equity	$	1,371,296	32,309	306,115	156,349	19,410	25,341	48,477	(732,726	)	1,226,571
Three months ended December 31, 2006
Revenues from unaffiliated customers	$	244,506	31,661	721,165	161,801	14,565	17,248	53,402			1,244,348
Transfers between geographic areas	$	27,109	2,128	4,108	9,035	1,780	2,272	3,149	(49,581	)	—
Total revenues	$	271,615	33,789	725,273	170,836	16,345	19,520	56,551	(49,581	)	1,244,348
Net revenues	$	138,390	15,727	88,717	59,765	9,067	9,069	15,120			335,855
Operating income	$	21,982	4,512	45,746	15,744	2,468	3,034	6,169			99,655
Identifiable assets at quarter end	$	906,256	62,584	360,904	363,332	26,055	33,273	67,794	2,140		1,822,338
Capital expenditures	$	5,863	299	2,010	846	71	145	490			9,724
Depreciation and amortization	$	5,072	325	1,339	1,736	201	395	360			9,428
Equity	$	1,215,454	26,160	249,017	117,738	14,844	16,133	31,570	(600,825	)	1,070,091
Twelve months ended December 31, 2007
Revenues from unaffiliated customers	$	1,069,734	134,436	2,959,873	684,661	71,091	79,314	236,062			5,235,171
Transfers between geographic areas	$	105,263	9,030	18,234	36,563	7,854	11,640	13,883	(202,467	)	—
Total revenues	$	1,174,997	143,466	2,978,107	721,224	78,945	90,954	249,945	(202,467	)	5,235,171
Net revenues	$	586,938	65,534	402,613	245,761	42,044	42,920	67,151			1,452,961
Operating income	$	120,311	15,893	197,017	50,762	11,913	9,958	17,546			423,400
Identifiable assets at quarter end	$	939,203	72,150	422,038	443,758	34,174	46,492	100,934	10,316		2,069,065
Capital expenditures	$	25,437	1,899	41,773	7,879	1,420	1,259	3,119			82,786
Depreciation and amortization	$	21,204	1,321	4,917	7,759	922	1,523	1,657			39,303
Equity	$	1,371,296	32,309	306,115	156,349	19,410	25,341	48,477	(732,726	)	1,226,571
Twelve months ended December 31, 2006
Revenues from unaffiliated customers	$	940,186	120,381	2,616,098	618,999	54,948	67,463	215,912			4,633,987
Transfers between geographic areas	$	109,552	7,956	16,228	32,595	6,383	8,368	11,293	(192,375	)	—
Total revenues	$	1,049,738	128,337	2,632,326	651,594	61,331	75,831	227,205	(192,375	)	4,633,987
Net revenues	$	533,060	61,531	359,613	216,110	32,894	32,931	54,821			1,290,960
Operating income	$	102,041	15,433	178,265	48,366	8,887	7,519	14,605			375,116
Identifiable assets at quarter end	$	906,256	62,584	360,904	363,332	26,055	33,273	67,794	2,140		1,822,338
Capital expenditures	$	121,005	820	8,269	6,086	446	1,205	1,633			139,464
Depreciation and amortization	$	18,533	1,339	5,108	6,739	785	1,548	1,396			35,448
Equity	$	1,215,454	26,160	249,017	117,738	14,844	16,133	31,570	(600,825	)	1,070,091

Certain 2006 amounts have been reclassified to conform to the 2007 presentation.