July 6, 2004

NCL agrees new delivery date for Pride of America

NCL America announced Friday that it had concluded negotiations with Lloyd Werft in Germany, its insurers and banks, and agreed a new delivery date for the Pride of America of June 6, 2005.

"We are pleased and relieved that this long period of uncertainty has now ended and we can plan with confidence for the introduction of our second U.S. flagged vessel in Hawaii," said Colin Veitch, president and CEO of NCL America. "Pride of America will be the first new-built U.S. flagged cruise ship in 50 years and is going to be a fantastic addition to our fleet."

Pride of America, which is the ship towed to Germany for completion from Northrop Grumman's Pascagoula, Miss., Ingalls yard, was originally scheduled for delivery at the end of April 2004. Work was halted after an accident in the yard in January during which the ship took on water in a storm and sank up to deck three. The yard subsequently filed for receivership as a result of the accident and has been operating under the protection of a receiver since then.

Since January, the ship has been raised and salvage work on the damaged areas has been completed. Extensive discussions among NCL, Lloyd Werft, the underwriting syndicate that insured the casualty, NCL's banks and Lloyd Werft's banks have resulted in a detailed repair specification and a new work plan for completion of the vessel.

The repairs will be extensive, says NCL, and will be fully covered by the settlement reached with the insurers. The completion works represent a continuation of the contractual arrangements already in place between NCL and Lloyd Werft. NCL will fund the completion works as they are carried out and the total cost of the ship to NCL once delivered will not be materially different than if the January incident had not occurred.

Pride of America's inaugural deployment and regular seven-day inter-island Hawaii schedule will be announced this week.

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