Communication with Stelios

easyJet PLC
19 November 2004

easyJet plc



Friday 19 November 2004



RNS Announcement





The Board of easyJet plc has received this communication from Stelios
Haji-Ioannou which is attached below together with Sir Colin Chandler's response
on behalf of the board.



'Sir Colin,

            this is a short note to let you know about my meeting with Hannes
Smarasen, the Chairman of the Board of Icelandair which took place at the
easyGroup office in London on the 17th of November at his request.



             He explained to me that their investment in easyJet PLC, which I
estimated to have cost them around GBP50m, was financed by some of the GBP60m in
cash Icelandair had on its last published  balance sheet dated 30/6/06 plus a
capital increase since that date and some leverage, both of unspecified amounts.



Then I explained to him that I am an insider to easyJet and that I would not be
able to discuss matters which are not already in public domain. The rest of the
discussion centered around my already published views on matters like going
private and/or selling down/out, neither of which is an option I am considering
at the moment.

I also explained that because I own the 'easy' brand privately and license it to
the airline, I would not exit from easyJet PLC, as the brand is a key component
of my overall easyGroup expansion plans. I also reminded him that for as long as
I own 10% of the stock I have the right to be chairman.



We also exchanged views on how to improve the profit margin and the return on
capital employed (ROCE) of easyJet PLC which we both agreed are the key
performance indicators of any business. Since both of us are knowledgeable
airline investors, we touched on the usual subjects of aircraft utilization and
airport costs but we both agreed there are no paradigm shifts in the cost base
one could anticipate in the near future. However we both agreed more can be done
on both costs and yield improvement.



We agreed to stay in touch, from time to time, as I would be happy to do with
anyone who has invested such a large amount of cash in any of the companies that
I have an interest in.  I thanked him for the confidence in easyJet PLC and
congratulated him on the timing of his investment.'




'Dear Stelios

Thank you for your letter and my colleagues and I are grateful for the record of
your meeting. Like you, we are pleased with the investment by Icelandair as a
statement of confidence in the easyJet business model. We intend to release your
letter and this reply to the market this evening and on our website

with best regards
yours sincerely

Colin
Sir Colin Chandler
Chairman
easyJet plc'





Enquiries:  Toby Nicol, easyJet 01582 525339








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