Norwegian Cruise Line announces major expansion plans including a 2,000-passenger new build and addition in 1997 of the M/S Royal Majesty and M/S Crown Majesty

Business Wire, March 5, 1997

MIAMI--(BUSINESS WIRE)--March 5, 1997--Norwegian Cruise Line Wednesday announced plans for major expansion of the NCL fleet including the purchase of the 1,050-passenger M/S Royal Majesty (built in 1992) from Kvaerner ASA, owner of Majesty Cruise Line; a contract to take over operation of the 800-passenger M/S Crown Dynasty (built in 1993) currently on charter to Cunard Line from Silja Line; and the intention to enter into a new building contract for a 2,000-passenger, upscale ship to be built at Kvaerner Masa Yard in Turku, Finland.

"Once again NCL is on the move in a major way," said Hans Golteus, president and chief operating officer of Norwegian Cruise Line. "These actions verify our long-standing strategic plans for aggressive expansion of the NCL fleet. They further substantiate the improved financial picture at Norwegian Cruise Line and greatly enhance our competitive position as a leader in the cruise industry."

M/S Royal Majesty

The purchase price for the ship, including business on the books and the right to call on Bermuda is USD $110 million plus a minority interest in Norwegian Cruise Line's parent company, NCL Cruises Limited.

The delivery of the M/S Royal Majesty to NCL will take place in April, 1997.

For the balance of 1997, Majesty/NCL will continue to operate the vessel on its 1997 seasonal schedules of seven-day cruises from Boston to Bermuda and three- and four-day cruises from Miami to the Bahamas. Bookings for 1997 will continue to be handled by Majesty Cruise Line.

"We are committed to making the operational transition between Majesty and NCL a seamless process to avoid any inconveniences to travel agents or the passengers," said Bruce Nierenberg, executive vice president of NCL. "There will be no disruption of service whatsoever."

M/S Crown Dynasty

NCL will take over the day-to-day operation of the three year-old M/S Crown Dynasty following final negotiations. The ship is expected to join the NCL fleet during the fourth quarter of 1997 and will continuing operating on seven-day cruises to Alaska during the summer and transcanal cruises in the Caribbean during the fall/winter.

New Build Project

The new and upscale 2,000-passenger vessel, to be built at Kvaerner Masa Yard, is expected to be delivered not later than June 1999.

"We have been very up front about our intent to build and/or acquire additional tonnage well before the end of the decade," said Nierenberg. "Now, we are in the fortunate position to be adding not one but two high quality vessels to the NCL fleet in a matter of months, thus increasing our overall capacity by more than 20 per cent. These two ships are quite compatible with our existing fleet and are consistent with our philosophy of providing a more intimate and personal cruise experience not found on the mega ships of today. Further, the two ships can be deployed virtually anywhere in the world."

Added Golteus: "We are extremely excited by the opportunity of an upscale new build for NCL. It will give us the flexibility to incorporate the best of the NCL innovations, such as our Sports Bar & Grill and Le Bistro restaurants, with some new and non-traditional onboard amenities and programs currently under development at NCL. Even with the large size of this vessel, we will be able to maintain an intimate and personal service environment.

"NCL built its 30-year reputation on product innovation and a new ship is a golden opportunity to add more creative industry firsts to our growing list," Golteus said.

The agreement between NCL and Kvaerner is subject to financing.

CONTACT: Norwegian Cruise Line, Miami

Fran Sevcik, 305/436-4762

Stacy Moyer, 305/436-4799