Port Security Conference

April 28 2003

Carnival extends newbuilding schedule
Carnival Corporation & plc (NYSE; LSE: CCL) announced today an agreement for Princess Cruises to construct a new 116,000-ton cruise ship, a sister to the Caribbean Princess, to be built at Fincantieri's Monfalcone yard. Built at an approximate all-in cost of $500 million (U.S.), the new vessel is expected to be delivered in May 2006. By utilizing an existing hedge against the euro, the new Princess vessel will be built at approximately 92 cents (U.S.) to the euro versus the current exchange, which is approximately $1.10 (U.S.) today.

But the company has reduced the number of Holland America's "Vista-class" vessels from five to four. Holland America's Vista-class includes the Zuiderdam, introduced last year, along with three other newbuilds scheduled to enter service through early 2006.

"The addition of four Holland America 'Vista-class' vessels will result in a 59 percent capacity increase over a three-and-a-half-year period, which is a more rational growth rate for an up-market premium brand," said Micky Arison, chairman and CEO of Carnival Corporation & plc.

The company has also stretched out the delivery of three cruise ships being constructed at Italy's Fincantieri shipyard. The vessels with adjusted deliveries include: Carnival Cruise Lines' Carnival Valor -- delivery adjusted from Sept. 2004 to Dec. 2004; Cunard Line's Queen Victoria -- delivery adjusted from Jan. 2005 to March 2005; and Holland America Line's fourth "Vista-class" vessel -- delivery adjusted from Oct. 2005 to Jan. 2006.

Carnival says the realigned newbuilding schedule demonstrates its flexibility, allowing it to maximize its newbuilding program especially when it encompasses multiple companies building ships at the same yard.

"We're less than two weeks into the new Carnival/P&O Princess combination and we are already working on optimizing asset utilization to benefit the brands and maximize returns for the group," said Arison.

"The reality is that we would have scheduled our deliveries differently had we been making decisions for this portfolio of brands two years ago. Slowing down the delivery schedule gives us a more rational and efficient timetable to absorb additional capacity. It is also a testament to our excellent relationship with Fincantieri, which has shown incredible flexibility in working with us in accommodating this new schedule. Eleven of our 17 newbuilds are under contract with Fincantieri and the level of cooperation they have demonstrated only serves to further strengthen our business partnership," Arison stated.

Commenting on the new order, Fincantieri's Chief Executive Officer Giuseppe Bono, said, "Carnival, Holland America and Princess, along with Costa Crociere and Cunard Line, are among our best customers. We are very pleased to work with Carnival Corporation & plc in adjusting its delivery schedule and look forward to continuing to deliver state-of-the-art vessels that will define the group's brands while providing excellent holidays for its guests."

Here's what the latest version of Carnival's newbuilding program looks like:

Brand Name Starts Revenue Service Passengers Yard
Costa Costa Mediterrannea 06/03 2,114 Kvaerner Masa-Yards
Princess Island Princess 07/03 1.970 Chantiers de l"Atlantique
Carnival Carnival Glory 07/03 2.974 Fincantieri
HAL Oosterdam 08/03 1,848 Fincantieri
Costa Costa Fortuna 12/03 2,720 Fincantieri
Cunard Queen Mary 2 01/04 2,620 Chantiers de l"Atlantique
Carnival Carnival Miracle 03/04 2,124 Kvaerner Masa-Yards
Princess Diamond Princess 03/04 2,670 Mitsubishi Heavy Industries
Princess Caribbean Princess 04/04 3,110 Fincantieri
HAL Westerdam 05/04 1,848 Fincantieri
Princess Sapphire Princess 06/04 2,670 Mitsubishi Heavy Industries
Costa Costa Magica 11/04 2,720 Fincantieri
Carnival Carnival Valor 12/04 2,974 Fincantieri
Cunard Queen Victoria 04/05 1,968 Fincantieri
HAL -- 02/06 1,848 Fincantieri
Princess -- 06/06 3.110 Fincantieri

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