Port Security Conference

April 16 2003

Carnival-Princess DLC deal set to close
P&O Princess Cruises plc and Carnival Corporation have announced that today's P&O Princess EGM passed the resolution relating to the DLC (dual listed company)transaction with Carnival.

The DLC transaction has now received all necessary shareholder and regulatory approvals and is expected to close tomorrow--creating the world's largest cruise vacation group.

The combined group will have 66 ships with a further 17 on order equating to 100,000 berths and 42,300 berths respectively. Combined revenue for the group for the year ended November 2002 was $6,891 million with net income of $1,333 million. In total 4.7 million passengers were carried during this period.

Lord Sterling of Plaistow, who is to retire as Chairman of P&O Princess on completion of the DLC Transaction, said:

"I am pleased that the shareholders of P&O Princess and Carnival have decided to combine their two great companies. As I retire as Chairman of P&O Princess, I have the pleasure of knowing that our people, both at sea and on shore, will have a tremendous future working together with their Carnival colleagues in this new global cruising enterprise"

Micky Arison, who will become Chairman and CEO said the overwhelming vote in favor of the DLC transaction "demonstrates the logic of combining our two companies. Our primary focus will now be on organic growth and extracting the benefits of the combination for shareholders and customers alike. Carnival and P&O together are in the best position to ride the current geo-political uncertainties and benefit from the positive long term prospects for the cruising industry."

"In virtually every market in the world where cruise vacations have established a foothold in the overall leisure travel business, Carnival Corporation & P&O Princess are leaders. In addition these brands offer very different experiences allowing us to cater to virtually every lifestyle and budget. We offer, quite literally, something for everyone."

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