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 NET EARNINGS INCREASE OF 12%

SEATTLE, WASHINGTON – May 7, 2008, Expeditors International of Washington, Inc. (NASDAQ: EXPD) today announced net earnings of $66,472,000 for the first quarter of 2008, as compared with $59,288,000for the same quarter of 2007, an increase of 12%.  Net revenues for the first quarter increased 12% to $374,328,000 as compared with $334,136,000 reported for the first quarter of 2007.  Total revenues and operating income were $1,307,321,000 and $105,564,000 in 2008, as compared with $1,118,946,000 and $94,525,000 for the same quarter of 2007, increases of 17% and 12%, respectively.  Diluted net earnings per share for the first quarter were $.30 as compared with $.27 for the same quarter in 2007, an increase of 11%.  The Company also reported that same store net revenues and operating income both increased 12%, respectively, during the first quarter of 2008, as compared with the same period in 2007.

“We feel very good about these first quarter 2008 results. They are balanced from a global contribution perspective and they reinforce our long-held premise that Expeditors’ core growth potential comes from taking market share” said Peter J. Rose, Chairman and Chief Executive Officer. “Despite having spent a good part of each day side stepping ‘chicken little’ and the associated pieces of ‘falling sky’ that follow him about, our employees actively sought out new business opportunities this quarter.  This allowed us to expand market share by fulfilling our customer’s increasingly complex supply-chain requirements.” Rose explained.

“Typically every year this business presents some kind of unique challenge. Apart from the ongoing Department of Justice investigation of our industry (which cost us over $1.6 million in legal fees alone during the first quarter), in 2008 we’ve had to endure the ‘non-stop’ 24-hour media sound bite harangue about the economy.  We understand that while the general public’s perception of the state of the economy can’t be totally ignored, neither can it be accepted as a justification for lowering our standards or diminishing our intensity.” Rose continued.  “So much of this is about maintaining confidence through keeping things in proper perspective. For instance, one needs to remember that even by the reckoning of the most pessimistic pundits, the economy in 2008 is pretty much the same size as it was last year in 2007.  Given that we all felt pretty good about prospects last year, we don’t believe there is any good reason why we can’t generate market share gains in 2008. We’re grateful that our customers, our employees and our key service providers all share this same vision—one that has been a cornerstone of our philosophy since our inception” Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 179 full-service offices, 69 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.

Expeditors International of Washington, Inc.

1^st Quarter 2008 Earnings Release

May 7, 2008

Expeditors International of Washington, Inc.

Financial Highlights

Three months ended

March 31, 2008

Unaudited

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

	Three Months Ended
	2008		2007		% Increase
Revenues	$	1,307,321	$	1,118,946	17	%
Net revenues	$	374,328	$	334,136	12	%
Operating income	$	105,564	$	94,525	12	%
Net earnings	$	66,472	$	59,288	12	%
Diluted earnings per share	$	.30	$	.27	11	%
Basic earnings per share	$	.31	$	.28	11	%
Diluted weighted average shares outstanding	220,437,979		222,842,546
Basic weighted average shares outstanding	213,062,231		213,428,221

Offices opened during the First Quarter of 2008 (· = Full Service, + = Satellite)
ASIA	NEAR/MIDDLE EAST	NORTH AMERICA
Fuzhou, People’s Republic of China·	Damman, Kingdom of Saudi Arabia·	Raleigh, Durham·
	Coimbatore, India+
	Kolkata, India+
	Manama, Kingdom of Bahrain·

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 9, 2008 will be considered in management’s 8-K “Responses to Selected Questions” expected to be filed on or about May 16, 2008.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

	March 31,		December 31,
	2008		2007
Assets
Current assets:
Cash and cash equivalents	$	740,966	$	574,599
Short-term investments	606		674
Accounts receivable, net	878,191		933,519
Deferred Federal and state income taxes	7,185		8,278
Other current assets	19,117		17,627
Total current assets	1,646,065		1,534,697
Property and equipment, net	500,845		497,892
Goodwill, net	7,927		7,927
Other intangibles, net	7,710		7,832
Other assets	21,156		20,717
	$	2,183,703	$	2,069,065
Liabilities and Shareholders’ Equity
Current liabilities:
Short term debt	748		—
Accounts payable	615,800		613,108
Accrued expenses, primarily salaries and related costs	145,598		129,669
Federal, state and foreign income taxes	36,812		26,976
Total current liabilities	$	798,958	$	769,753
Deferred Federal and state income taxes	$	67,566	$	55,533
Minority interest	$	17,367	$	17,208
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 212,995,326 shares at March 31, 2008 and 212,996,776 shares at December 31, 2007	2,130		2,130
Additional paid-in capital	48,788		50,006
Retained earnings	1,209,937		1,143,464
Accumulated other comprehensive income	38,957		30,971
Total shareholders’ equity	1,299,812		1,226,571
	$	2,183,703	$	2,069,065

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except share data)

(Unaudited)

	Three months ended
	March 31,
	2008			2007
Revenues:
Airfreight	$	599,763		$	517,205
Ocean freight and ocean services	446,792			375,202
Customs brokerage and other services	260,766			226,539
Total revenues	1,307,321			1,118,946
Operating expenses:
Airfreight consolidation	461,099			389,644
Ocean freight consolidation	360,440			298,891
Customs brokerage and other services	111,454			96,275
Salaries and related costs	205,815			182,761
Rent and occupancy costs	19,435			16,667
Depreciation and amortization	9,772			9,575
Selling and promotion	9,504			9,096
Other	24,238			21,512
Total operating expenses	1,201,757			1,024,421
Operating income	105,564			94,525
Interest expense	(71		)	(14		)
Interest income	4,964			5,219
Other, net	1,274			755
Other income, net	6,167			5,960
Earnings before income taxes and minority interest	111,731			100,485
Income tax expense	45,210			41,160
Net earnings before minority interest	66,521			59,325
Minority interest	(49		)	(37		)
Net earnings	$	66,472		$	59,288
Diluted earnings per share	$	0.30		$	0.27
Basic earnings per share	$	0.31		$	0.28
Weighted average diluted shares outstanding	220,437,979			222,842,546
Weighted average basic shares outstanding	213,062,231			213,428,221

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three months ended
	March 31,
	2008			2007
Operating Activities:
Net earnings	$	66,472		$	59,288
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for losses on accounts receivable	(177		)	514
Deferred income tax expense	8,826			5,468
Excess tax benefits from stock plans	(1,506		)	(16,332		)
Stock compensation expense	11,280			11,460
Depreciation and amortization	9,772			9,575
Gain on sale of assets	(575		)	(123		)
Minority interest in earnings of consolidated entities	49			37
Other	417			334
Changes in operating assets and liabilities:
Decrease in accounts receivable	59,754			57,701
Decrease (increase) in other current assets	55			(677		)
Increase (decrease) in accounts payable and other current liabilities	15,078			(13,635		)
Increase in taxes payable, net	9,260			2,469
Net cash provided by operating activities	178,705			116,079
Investing Activities:
Decrease in short-term investments	47			86
Purchase of property and equipment	(10,210		)	(13,438		)
Proceeds from sale of property and equipment	42			379
Other	363			(340		)
Net cash used in investing activities	(9,758		)	(13,313		)
Financing Activities:
Net distributions to minority interests	(107		)	—
Borrowings of short-term debt, net	810			220
Proceeds from issuance of common stock	4,614			15,266
Repurchases of common stock	(18,618		)	(72,398		)
Excess tax benefits from stock plans	1,506			16,332
Net cash used in financing activities	(11,795		)	(40,580		)
Effect of exchange rate changes on cash	9,215			3,272
Increase in cash and cash equivalents	166,367			65,458
Cash and cash equivalents at beginning of period	574,599			511,358
Cash and cash equivalents at end of period	740,966			576,816
Interest and taxes paid:
Interest	71			11
Income tax	24,272			33,033

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 March 31, 2008
Revenues from unaffiliated customers	$	297,946	35,069	679,850	185,564	19,839	21,860	67,193			1,307,321
Transfers between geographic areas	$	24,081	2,073	5,111	10,502	2,134	3,307	3,997	(51,205	)	—
Total revenues	$	322,027	37,142	684,961	196,066	21,973	25,167	71,190	(51,205	)	1,307,321
Net revenues	$	149,055	16,674	98,741	65,773	11,699	12,645	19,741			374,328
Operating income	$	32,539	3,131	46,021	12,437	3,472	3,263	4,701			105,564
Identifiable assets at quarter end	$	999,281	70,349	465,935	444,133	36,072	52,824	109,713	5,396		2,183,703
Capital expenditures	$	3,636	336	3,303	1,610	194	271	860			10,210
Depreciation and amortization	$	5,346	312	1,254	1,768	249	315	528			9,772
Equity	$	1,437,355	34,711	355,801	171,294	23,068	27,142	52,381	(801,940	)	1,299,812
Three months ended March 31, 2007
Revenues from unaffiliated customers	$	245,725	28,086	602,031	156,379	14,783	19,371	52,571			1,118,946
Transfers between geographic areas	$	22,498	1,978	3,980	7,761	1,697	2,506	3,423	(43,843	)	—
Total revenues	$	268,223	30,064	606,011	164,140	16,480	21,877	55,994	(43,843	)	1,118,946
Net revenues	$	135,467	14,700	93,153	56,027	8,927	9,795	16,067			334,136
Operating income	$	28,063	2,729	44,884	10,151	2,404	2,052	4,242			94,525
Identifiable assets at quarter end	$	878,559	62,270	395,634	361,557	27,678	38,209	75,262	(2,370	)	1,836,799
Capital expenditures	$	8,705	324	1,333	1,385	694	495	502			13,438
Depreciation and amortization	$	5,169	331	1,375	1,737	200	400	363			9,575
Equity	$	1,239,866	29,120	285,593	126,658	17,169	17,481	36,299	(650,659	)	1,101,527