Termination of DBA option

easyJet PLC
18 March 2003

Embargoed until 07:00, 18 March 2003





                     easyJet Terminates Deutsche BA Option



easyJet today announced that it has terminated its option to acquire Deutsche BA
(dba) from British Airways.



Ray Webster, easyJet Chief Executive, said:



When we acquired the option last year, we believed that it represented the most
attractive way of securing a substantial presence in the German market. In early
December 2002 we said that, although the option to acquire dba runs until early
August, we intended to make the decision by the end of March in order to reduce
the uncertainty that surrounds this decision.



Despite months of exceptionally hard work by staff at dba, British Airways and
easyJet, there have been two insurmountable hurdles:



Firstly, the rigidity of German labour laws has made it impossible to get
acceptance of easyJet conditions of employment from key staff groups, despite
numerous attempts and different approaches.



Secondly, since we negotiated the option there has been a substantial
deterioration in the financial performance of all airlines in the German market
including dba. This is in large part due to the specific characteristics of the
German market and in particular the highly aggressive pricing policies of
Lufthansa.



It is disappointing that we have had to make this decision. However, we always
made it clear that we would not compromise the easyJet business model.



We reaffirm that the order for 120 Airbus A319 aircraft has always excluded any
aircraft needed in relation to the dba option and we remain committed to organic
growth of 25 percent per annum. Germany remains the largest economy in the
European Union and we are currently examining the best way to develop our German
operation and the numerous other growth opportunities across Europe.





Notes



easyJet announced on 8 May 2002 that it had reached agreement with British
Airways for an exclusive option to purchase dba. That option was formally
acquired on 14 August 2002. As consideration for the option, easyJet contributed
Euros 5 million for capital expenditure to assist dba's transition towards a
low-cost airline model and agreed to pay an additional 600,000 Euros per month
until exercise or termination of the option.



ENDS



Contacts



easyJet plc

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Derek Livingstone, Investor Relations Manager [phone]



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