Ryanair Holdings : Update on Ryanair's Offer for Aer Lingus

              UPDATE ON RYANAIR'S OFFER FOR AER LINGUS

Ryanair, today (Thursday, 22 January 2009) at a media briefing in
Dublin, confirmed that time was running out for acceptances of its
offer for Aer Lingus.  Ryanair confirmed that there is just one week
remaining (to Fri 30 Jan) for Ryanair to make any decision to amend
any of the terms of its offer (to address possible Aer Lingus
shareholder concerns) and just 3 weeks left (to Fri 13 Feb) for Aer
Lingus shareholders to accept Ryanair's offer.

Ryanair confirmed that it remains open to meeting with Aer Lingus
shareholders to discuss any areas of concern that they may have in
relation to Ryanair's offer to merge with Aer Lingus, and Ryanair's
proposals to rapidly grow and expand Aer Lingus, while at the same
time lowering its shorthaul fares and improving its service (such as
punctuality) to Ryanair levels.

Ryanair confirmed its view that the trend of EU airline consolidation
continues to accelerate, as evidenced by the EU's 12 Jan approval of
the Vueling/Clickair merger in Spain, and the EU's 19 Jan approval of
the Austrian Government's investment in Austrian to enable its sale
to Lufthansa to proceed.  The new (21 Jan) announcement by Finnair
that it is now "open to evaluating a combination with SAS", is
noteworthy, because Finnair was one of the independent airline models
previously quoted by Aer Lingus as an example of its "independence"
strategy.   Ryanair said it was interesting that while all this
merger and consolidation activity is taking place, no airline other
than Ryanair has publicly expressed any interest in Aer Lingus.

Ryanair also referred to details of the European Airline Share Index
since 26 Nov 2008 (just prior to its offer).  Over this period the
average share price of quoted European airlines has fallen by some
6%.  By contrast Aer Lingus' share price has risen 34%, thanks
largely Ryanair believes to its takeover offer.  Ryanair believes
that if its offer is unsuccessful on 13 February next, then Aer
Lingus' share price will fall substantially as the markets begin to
focus upon Aer Lingus' adverse fuel hedging position in 2009, and
what Ryanair believes will be Aer Lingus' substantial post
exceptional after tax losses in 2008 and 2009, and the impact of the
deepening Irish recession upon Aer Lingus' traffic and yields over
the coming year or two.

Ryanair's Chief Executive, Michael O'Leary said:

"Ryanair's all cash offer of ?1.40 per share values Aer Lingus at
?748m.  At yesterday's closing prices, Ryanair is offering to pay
almost as much in cash for Aer Lingus as the combined market value of
Bank of Ireland and Allied Irish Banks plc.  This is an extremely
generous all cash offer at a time of collapsing equity values in
Ireland and across Europe.

"Aer Lingus shareholders and in particular the Government and the
ESOT must decide before 13 February whether they wish to accept the
substantial cash proceeds which will accrue from Ryanair's offer and
the 1,000 jobs which has Ryanair has committed to creating in Aer
Lingus over the next 5 years, if our offer is successful.  The
Government, the ESOT and all other Aer Lingus shareholders must now
decide whether they want to accept this cash offer and see these
1,000 new jobs created or not".

Ends.
Thursday 22nd January 2009
Enquiries:


Ryanair                                   Telephone: [phone]
Howard Millar

Davy Corporate Finance                    Telephone: [phone]
(Financial Adviser to Ryanair and
Coinside)
Eugenée Mulhern
Brian Garrahy

Morgan Stanley                           Telephone: [phone]
(Financial  Adviser   to   Ryanair   and
Coinside)
Colm Donlon
Adrian Doyle

Murray Consultants                        Telephone: [phone]
(Public Relations Advisers to Ryanair)
Pauline McAlester                        Telephone:  [phone]



Notes: The  following  are  the  sources  for  specified  information
contained in this announcement:

Ryanair has committed to  doubling the size of  the Aer Lingus  short
haul fleet from 33 to 66 aircraft  over the next 5 years. Page 19  of
the Offer Document.
Ryanair has committed - backed by a ?100 million bank guarantee -  to
cut Aer Lingus' average short haul fare by 5% for 3 years. Page 19 of
the Offer Document.
An improvement in Aer Lingus' on-time performance to Ryanair's levels
is one of the stated  benefits from the Offer.  Page 19 of the  Offer
Document.
In an interview with the Irish  Times published on 12 December,  2008
Mr. Colm Barrington cited Finnair as  one of a number of  independent
airlines.
The closing share price of an  Aer Lingus share on 26 November,  2008
was ?1.03. The closing price of  an Aer Lingus share on 30  November,
2008 (the  last date  prior to  the announcement  of the  Offer)  was
?1.12. The closing share price of an Aer Lingus share on 21  January,
2009 (the last date prior to this announcement) was ?1.38.
The market capitalisation of Bank of Ireland at the start of business
on 21 January, 2009  (the last date prior  to this announcement)  was
approximately ?401.6  million. The  market capitalisation  of  Allied
Irish Banks plc on 21 January, 2009 was approximately ?396.3 million.
Share prices and  market capitalisations referred  to are taken  from
the website of the Irish Stock Exchange unless otherwise stated.
The Government would realise  ?188 million in  cash under the  Offer.
The ESOT  and employees  would receive  over ?137  million under  the
Offer. Page 19 of the Offer Document.
Aer Lingus' fuel hedging position is as contained in an  announcement
issued by Aer Lingus dated 6 January, 2009

The directors of Ryanair and  Coinside accept responsibility for  the
information contained  in  this  announcement,  save  that  the  only
responsibility accepted by the directors of Ryanair and Coinside   in
respect of  the  information in  this  announcement relating  to  Aer
Lingus and the Aer Lingus Group, which has been compiled from  public
sources, has been to ensure that such information has been  correctly
and fairly reproduced or presented (and  no steps have been taken  by
the directors of Ryanair and Coinside to verify this information). To
the best of the knowledge and belief of the directors of Ryanair  and
Coinside (who have taken all reasonable  care to ensure that such  is
the case), the information contained in this document for which  they
accept responsibility is in  accordance with the  facts and does  not
omit anything likely to affect the import of such information.

Davy Corporate Finance, which is regulated in Ireland by the
Financial Regulator, is acting exclusively for Ryanair and Coinside
and no one else in connection with the Offer, and will not be
responsible to anyone other than Ryanair and Coinside for providing
the protections afforded to clients of Davy Corporate Finance nor for
providing advice in relation to the Offer, the contents of this
announcement, the Offer Document or any transaction or arrangement
referred to in this announcement.

Morgan Stanley & Co.  Limited is acting  exclusively for Ryanair  and
Coinside and no one else in connection with the Offer and will not be
responsible to anyone other than  Ryanair and Coinside for  providing
the protections afforded to clients  of Morgan Stanley & Co.  Limited
nor for providing advice  in relation to the  Offer, the contents  of
this  announcement,  the  Offer   Document  or  any  transaction   or
arrangement referred to in this announcement. This announcement  does
not constitute an  offer or  an invitation  to offer  to purchase  or
subscribe for any securities.  Any response in relation to the  Offer
should only be made on the basis of the information contained in  the
Offer Document or any document by which the Offer is made.

Terms defined in  the Offer Document  have the same  meaning in  this
announcement unless otherwise stated.

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