Expeditors International of Washington (EXPD) 8-K Expeditors Announces 2009 Fourth Quarter Earnings Per Share of $.321

Exhibit 99.1

EARNINGS RELEASE

  By:   Expeditors International of Washington, Inc.
1015 Third Avenue, Suite 1200 Seattle, Washington 98104

CONTACTS:	R. Jordan Gates	Bradley S. Powell
	President and Chief Operating Officer	Chief Financial Officer
	(206) 674-3427	(206) 674-3412

FOR IMMEDIATE RELEASE

EXPEDITORS ANNOUNCES 2009 FOURTH QUARTER EARNINGS PER SHARE OF $.32¹

SEATTLE, WASHINGTON—February 23, 2010, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,246,911,000 and $110,354,000 as compared with $1,307,389,000 and $119,205,000 for the same quarter of 2008, a decrease of 5% and 7%, respectively. Net earnings attributable to shareholders were $69,135,000 for the fourth quarter of 2009, compared with $77,728,000 for the same quarter of 2008, a decrease of 11%. Net revenues for the fourth quarter of 2009 decreased 8% to $369,712,000 as compared with $402,481,000 reported for the fourth quarter of 2008. Diluted net earnings attributable to shareholders per share for the fourth quarter were $.32 as compared with $.36 for the same quarter in 2008, a decrease of 11%. The Company also reported that same store net revenues and operating income decreased 8% and 7%, respectively, for the fourth quarter of 2009 when compared with 2008.

For the year ended December 31, 2009, total revenues and operating income were $4,092,283,000 and $385,001,000 as compared with $5,633,878,000 and $473,136,000 for the same period in 2008, decreases of 27% and 19%, respectively. Net earnings attributable to shareholders fell to $240,217,000 from $301,014,000 in 2008, a decrease of 20%. Net revenues for the year decreased to $1,382,786,000 from $1,603,261,000 for 2008, down 14%. Diluted net earnings attributable to shareholders per share for the year 2009 were $1.11 as compared with $1.37 for the same period of 2008, an 19% decrease. Same store net revenues and operating income decreased 14% and 19%, respectively, for the year ended December 31, 2009, when compared with the same period of 2008.

“In a year that began amidst fears of a global financial Armageddon, these fourth quarter results were somewhat better than anticipated and we’re very encouraged by them. Against all stated odds, we actually ended up having a fourth quarter peak season in 2009,” said Peter J. Rose, Chairman and Chief Executive Officer. “Despite the capacity challenges in the airfreight markets, which resulted in rapid rate increases and associated yield declines, it was reassuring to once again experience airfreight tonnages greater than those handled during the same period the year before—up 16% for the fourth quarter and 36% for the month of December. Fourth quarter ocean freight container counts were 5% lower than 2008 levels, but that was the smallest quarterly ‘lower’ that we’ve seen all year and December was actually up 4% on a year-over-year basis—which was a first this year. In short, we were plenty busy and, as expected, our people came through with flying colors. For a while there during the fourth quarter it almost seemed like ‘old times’,” Rose went on to say.

“This fourth quarter was both a vindication and an affirmation of the correctness of strategic decisions we made nearly eighteen months ago. We started with a ‘no layoffs’ strategy to protect our most important assets…our people. Despite being chided by some, that move has been applauded by those who matter most…our employees, our customers and our shareholders. We could not have managed this recent peak season if we had over-reacted and executed whole-scale layoffs last spring and summer,” Rose commented. “Instead, we used available resources to vigorously pursue a strategy of customer retention and aggressive market share expansion. When the markets turned up during peak season, we saw just how effective those strategies were. We also reaffirmed our strong commitment to cost management. A rigid focus on all of these strategies paid off. We’re still here and we’re still standing...all of us, battered and bruised a bit, but better for the struggle. Having proven ourmettle in 2009, we’re excited about 2010,” concluded Rose.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 182 full-service offices, 64 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.

¹ Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

Fourth Quarter 2009 Earnings Release

February 23, 2010

Expeditors International of Washington, Inc.

Financial Highlights

Three months and Year ended

December 31, 2009 and 2008

(Unaudited)

(in 000’s except share data)

	Three months ended December 31,				% Decrease		Year ended December 31,				% Decrease
	2009		2008				2009		2008
Revenues	$	1,246,911	$	1,307,389	5	%	$	4,092,283	$	5,633,878	27	%
Net revenues	$	369,712	$	402,481	8	%	$	1,382,786	$	1,603,261	14	%
Operating income	$	110,354	$	119,205	7	%	$	385,001	$	473,136	19	%
Net earnings attributable to shareholders	$	69,135	$	77,728	11	%	$	240,217	$	301,014	20	%
Diluted earnings attributable to shareholders per share	$	.32	$	.36	11	%	$	1.11	$	1.37	19	%
Basic earnings attributable to shareholders per share	$	.33	$	.37	11	%	$	1.13	$	1.41	20	%
Weighted average diluted shares outstanding		216,378,536		216,925,452				216,533,240		219,170,003
Weighted average basic shares outstanding		211,992,092		211,952,384				212,112,744		212,755,946

During the fourth quarter of 2009, the Company closed its offices in Venezuela.

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 26, 2010 will be considered in management’s

8-K “Responses to Selected Questions” expected to be filed on or about March 5, 2010.

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on future economic trends, improving business climate, positive trends in freight volumes, ability to retain customers, ability to reduce costs and ability to grow market share. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual and Quarterly Reports filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

	December 31, 2009		December 31, 2008
Assets
Current assets:
Cash and cash equivalents	$	925,929	$	741,028
Short-term investments		655		658
Accounts receivable, net		810,369		788,176
Deferred Federal and state income taxes		8,338		7,986
Other current assets		42,539		35,511
Total current assets		1,787,830		1,573,359
Property and equipment, net		495,701		493,129
Goodwill, net		7,927		7,927
Other intangibles, net		4,938		6,503
Other assets, net		27,326		19,921
	$	2,323,722	$	2,100,839
Liabilities and Equity
Current liabilities:
Accounts payable		546,675		491,823
Accrued expenses, primarily salaries and related costs		145,545		150,487
Federal, state and foreign income taxes		16,166		28,039
Total current liabilities		708,386		670,349
Deferred Federal and state income taxes		53,989		46,574
Shareholders’ equity:
Preferred stock; none issued		—		—
Common stock, par value $.01 per share; issued and outstanding 212,025,494 shares at December 31, 2009 and 211,973,377 shares at December 31, 2008		2,120		2,120
Additional paid-in capital		18,265		7,150
Retained earnings		1,532,018		1,372,356
Accumulated other comprehensive income (loss)		604		(15,208	)
Total shareholders’ equity		1,553,007		1,366,418
Noncontrolling interest		8,340		17,498
Total equity		1,561,347		1,383,916
	$	2,323,722	$	2,100,839

23-February-2010 Expeditors International of Washington, Inc. Page 3 of 6

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except share data)

(Unaudited)

	Three months ended December 31,						Twelve months ended December 31,
	2009			2008			2009			2008
Revenues:
Airfreight services	$	628,097		$	579,580		$	1,831,317		$	2,541,377
Ocean freight and ocean services		348,305			460,563			1,297,685			1,990,983
Customs brokerage and other services		270,509			267,246			963,281			1,101,518
Total revenues		1,246,911			1,307,389			4,092,283			5,633,878
Operating expenses:
Airfreight consolidation		493,711			430,167			1,341,842			1,962,621
Ocean freight consolidation		268,612			361,517			973,462			1,596,346
Customs brokerage and other services		114,876			113,224			394,193			471,650
Salaries and related costs		202,697			217,687			774,214			863,846
Rent and occupancy costs		19,463			18,446			74,324			76,984
Depreciation and amortization		9,910			9,953			40,035			40,003
Selling and promotion		7,985			9,649			26,295			37,778
Other		19,303			27,541			82,917			111,514
Total operating expenses		1,136,557			1,188,184			3,707,282			5,160,742
Operating income		110,354			119,205			385,001			473,136
Interest income		1,924			6,193			10,177			21,077
Interest expense		(95	)		(14	)		(499	)		(183	)
Other, net		367			2,205			8,193			5,542
Other income, net		2,196			8,384			17,871			26,436
Earnings before income taxes		112,550			127,589			402,872			499,572
Income tax expense		42,900			48,883			162,475			196,593
Net earnings		69,650			78,706			240,397			302,979
Less: net earnings attributable to noncontrolling interest		515			978			180			1,965
Net earnings attributable to shareholders	$	69,135		$	77,728		$	240,217		$	301,014
Diluted earnings attributable to shareholders per share	$	0.32		$	0.36		$	1.11		$	1.37
Basic earnings attributable to shareholders per share	$	0.33		$	0.37		$	1.13		$	1.41
			��
Dividends declared and paid per common share	$	0.19		$	0.16		$	0.38		$	0.32
Weighted average diluted shares outstanding		216,378,536			216,925,452			216,533,240			219,170,003
Weighted average basic shares outstanding		211,992,092			211,952,384			212,112,744			212,755,946

23-February-2010 Expeditors International of Washington, Inc. Page 4 of 6

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three months ended December 31,						Twelve months ended December 31,
	2009			2008			2009			2008
Operating Activities:
Net earnings	$	69,650		$	78,706		$	240,397		$	302,979
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for losses on accounts receivable		13			1,046			804			1,976
Deferred income tax expense (benefit)		11,336			(1,240	)		(1,609	)		16,350
Excess tax benefits from stock plans		(345	)		(1,074	)		(5,726	)		(10,954	)
Stock compensation expense		10,070			10,763			39,135			44,879
Depreciation and amortization		9,910			9,953			40,035			40,003
Gain on sale of assets		(40	)		(48	)		(42	)		(699	)
Other		878			698			1,970			2,026
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(121,395	)		169,287			(1,077	)		85,841
Decrease (increase) in other current assets		1,835			454			(291	)		(1,413	)
Increase (decrease) in accounts payable and accrued expenses		58,698			(162,368	)		29,910			(66,470	)
Decrease in income taxes payable, net		(9,640	)		(3,597	)		(12,706	)		(5,552	)
Net cash provided by operating activities		30,970			102,580			330,800			408,966
Investing Activities:
(Increase) decrease in short-term investments		(22	)		(282	)		26			(72	)
Purchase of property and equipment		(9,364	)		(10,569	)		(34,700	)		(59,726	)
Proceeds from sale of property and equipment		151			82			276			369
Prepayment on long-term land lease, net		4,193			—			(5,049	)		—
Other		(748	)		(486	)		(1,901	)		204
Net cash used in investing activities		(5,790	)		(11,255	)		(41,348	)		(59,225	)
Financing Activities:
Proceeds from issuance of common stock		4,414			4,572			46,925			51,460
Repurchases of common stock		(7,434	)		(9,258	)		(84,509	)		(154,178	)
Excess tax benefits from stock plans		345			1,074			5,726			10,954
Dividends paid		(40,279	)		(33,942	)		(80,555	)		(68,103	)
Distributions to noncontrolling interest		(75	)		—			(1,084	)		(879	)
Purchase of noncontrolling interest		(1,729	)		—			(3,851	)		—
Net cash used in financing activities		(44,758	)		(37,554	)		(117,348	)		(160,746	)
Effect of exchange rate changes on cash and cash equivalents		(1,762	)		(9,092	)		12,797			(22,566	)
(Decrease) increase in cash and cash equivalents		(21,340	)		44,679			184,901			166,429
Cash and cash equivalents at beginning of period		947,269			696,349			741,028			574,599
Cash and cash equivalents at end of period	$	925,929		$	741,028		$	925,929		$	741,028
Interest and taxes paid:
Interest	$	100			7		$	497			173
Income taxes		37,028			48,147			158,745			172,146

23-February-2010 Expeditors International of Washington, Inc. Page 5 of 6

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

	United States		Other North America	Latin America	Asia	Europe and Africa	Middle East and India		Austral- asia	Elimi- nations		Consoli- dated
Three months endedDecember 31, 2009
Revenues from unaffiliated customers	$	277,141	37,790	16,574	662,475	167,280	64,918		20,733			1,246,911
Transfers between geographic areas		21,117	2,004	3,548	4,761	8,613	3,597		2,699	(46,339	)	—
Total revenues	$	298,258	39,794	20,122	667,236	175,893	68,515		23,432	(46,339	)	1,246,911
Net revenues	$	148,265	17,613	11,537	96,353	63,809	21,106	��	11,029			369,712
Operating income	$	22,426	8,741	3,847	47,733	17,536	7,688		2,383			110,354
Identifiable assets	$	1,188,111	82,166	42,478	454,023	387,494	128,690		39,315	1,445		2,323,722
Capital expenditures	$	5,639	247	107	760	1,560	714		337			9,364
Depreciation and amortization	$	5,181	360	358	1,732	1,478	613		188			9,910
Equity	$	965,620	40,421	17,809	338,208	148,592	77,566		24,796	(51,665	)	1,561,347
Three months endedDecember 31, 2008
Revenues from unaffiliated customers	$	308,481	43,039	18,317	674,137	179,563	66,833		17,019			1,307,389
Transfers between geographic areas		26,911	2,626	4,682	4,792	10,996	4,305		2,289	(56,601	)	—
Total revenues	$	335,392	45,665	22,999	678,929	190,559	71,138		19,308	(56,601	)	1,307,389
Net revenues	$	151,794	21,494	13,088	113,312	68,081	22,489		12,223			402,481
Operating income	$	16,861	8,315	4,560	60,677	16,556	8,215		4,021			119,205
Identifiable assets	$	978,189	64,652	44,377	469,819	392,820	116,167		30,364	4,451		2,100,839
Capital expenditures	$	5,618	301	218	3,988	32	304		108			10,569
Depreciation and amortization	$	5,336	336	258	1,855	1,410	591		167			9,953
Equity	$	773,565	32,530	26,030	357,855	138,710	60,504		18,593	(23,871	)	1,383,916
Twelve months endedDecember 31, 2009
Revenues from unaffiliated customers	$	982,103	129,272	64,060	2,035,568	582,759	232,766		65,755			4,092,283
Transfers between geographic areas		75,964	7,344	13,520	16,624	27,699	14,602		10,147	(165,900	)	—
Total revenues	$	1,058,067	136,616	77,580	2,052,192	610,458	247,368		75,902	(165,900	)	4,092,283
Net revenues	$	547,879	65,331	44,182	372,033	229,432	82,335		41,594			1,382,786
Operating income	$	117,908	20,253	12,538	155,158	43,953	23,050		12,141			385,001
Identifiable assets	$	1,188,111	82,166	42,478	454,023	387,494	128,690		39,315	1,445		2,323,722
Capital expenditures	$	24,908	724	688	2,018	3,407	2,201		754			34,700
Depreciation and amortization	$	21,010	1,391	1,087	7,446	5,968	2,473		660			40,035
Equity	$	965,620	40,421	17,809	338,208	148,592	77,566		24,796	(51,665	)	1,561,347
Twelve months endedDecember 31, 2008
Revenues from unaffiliated customers	$	1,269,858	162,730	81,586	2,974,328	789,442	274,094		81,840			5,633,878
Transfers between geographic areas		108,864	10,205	15,742	21,156	44,721	17,598		8,888	(227,174	)	—
Total revenues	$	1,378,722	172,935	97,328	2,995,484	834,163	291,692		90,728	(227,174	)	5,633,878
Net revenues	$	622,367	75,376	52,334	436,050	280,229	86,712		50,193			1,603,261
Operating income	$	119,115	20,094	15,059	213,555	63,156	25,795		16,362			473,136
Identifiable assets	$	978,189	64,652	44,377	469,819	392,820	116,167		30,364	4,451		2,100,839
Capital expenditures	$	25,640	2,149	1,158	20,359	7,074	2,836		510			59,726
Depreciation and amortization	$	21,558	1,347	1,177	6,294	6,470	2,274		883			40,003
Equity	$	773,565	32,530	26,030	357,855	138,710	60,504		18,593	(23,871	)	1,383,916

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