Re Contract

easyJet PLC
1 February 2001

Thursday, 01 February 2001

easyJet agrees interim passenger charging arrangement with Luton Airport

easyJet has agreed to the terms of a six-month interim charging structure that
will apply to its operations at Luton Airport. This will be applicable from 02
February 2001 to 01 August 2001.

The easyJet prospectus, at the time of flotation in November 2000, said (page
26): '....the Company received an offer from London Luton Airport at a price
per departing passenger which represented a discount to the tariff of £7.89
proposed by the airport, but nevertheless a significant increase over the
current price. The Company rejected this offer and proposed an alternative
framework for negotiation.'

Yesterday, the company had no alternative but to take the prudent approach and
pay the discounted per-passenger charge proposed by Luton Airport for a period
of six months. This will give both parties the opportunity to agree a new
long-term contract.

It will also provide easyJet with the time to assess whether the rate of
return on investment in Luton Airport can be proved to be excessive and
whether steps can be taken by an appropriate authority to modify the charges.

In light of the new arrangement, easyJet will now pursue more rigorously its
expansion plan out of its other operating bases in Amsterdam, Geneva and
Liverpool.

The three new routes started in January (Amsterdam to Belfast, Edinburgh and
Nice) are showing encouraging signs.

Ray Webster, Chief Executive of easyJet, said:

        'We had tried for something better for both our customers and
        shareholders, but at the end of the day we had to accept the interim
        per-passenger charge proposed to us before flotation and hope that a
        longer-term agreement can be reached.'