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Presidential Approval Clears Way For Norwegian Cruise Line To Offer New Inter-Island Hawaii Cruise Service

New service will create first U.S.- flag cruise ship in nearly 50 years and revive Project America

Miami, February 24, 2003 -Norwegian Cruise Line (NCL) will revive Project America as a U.S. flagged and U.S. manned operation for inter-island Hawaii cruise service with President Bush's approval Friday of the Omnibus Appropriations Act for Fiscal Year 2003. The Act contains a cruise ship provision championed by Senator Daniel K. Inouye that will create thousands of jobs for U.S. and Hawaii residents and provide a significant boost to the Hawaii economy.

This measure will allow NCL to use the Project America vessels and one existing cruise ship to serve the Hawaii Islands with inter-island cruise service. The vessels will be U.S.-flagged, and 100 percent U.S. crewed, generating more than $800 million in economic benefits for Hawaii and the U.S., and 20,000 jobs including 10,000 plus jobs for Hawaii residents of which some will be 3,000 U.S. seafaring jobs, according to a recent PriceWaterhouse Coopers report.

"This is an exciting and innovative new product for NCL and we look forward to providing high-quality U.S.-flag cruise service in the Hawaii islands," said Colin Veitch, NCL's president and CEO. "We applaud Senator Daniel Inouye and Representative Neil Abercrombie for their support for the legislation, which will create thousands of American jobs and hundreds of millions of dollars in economic benefits to Hawaii and the United States."

NCL recently reached an agreement with Lloyd Werft of Bremerhaven, Germany, to complete work on the first ship. The design of the vessel has been modified for Freestyle Cruising as well as to upgrade its original safety and environmental specification. After a series of cruises and introductory activities on her way from the shipyard to her homeport of Honolulu, the new ship will begin offering regular service in Hawaii by early summer 2004.

In August 2002, NCL purchased from Northrop Grumman Ship Systems (NGSS) the partially completed hull of the first Project America ship plus all the materials and equipment and the work performed to date on both Project America vessels under construction at NGSS's Ingalls Shipyard in Mississippi. The hull and the associated equipment and materials were towed to Europe under Lloyd's Werft's supervision in November last year.

"Friday's approval of Senator Inouye's Hawaii cruise ship initiative is a great opportunity for us to achieve three goals in one," Veitch said. "1) We are able to expand our Hawaii operations, offering cruise customers an ever broader array of options; 2) we remain on track with our goal of adding one new ship per year since 2000; and 3) most satisfying of all, we will have the honor of being the first company in nearly 50 years to hoist the Stars and Stripes above a new ocean-going passenger ship.

"The Project America ship will be a great addition to our fleet and another outstanding example of our innovative Freestyle Cruising concept, with open-seating main dining rooms, multiple dining choices (nine restaurants), over 700 private balcony staterooms, state-of-the-art entertainment venues, three pools, extensive children's facilities and an abundance of spacious public rooms."

Miami-based Norwegian Cruise Line is an international cruise company and industry innovator that operates a fleet of nine ships sailing to more than 140 ports around the world. For further information on NCL, contact a travel agent or NCL in the US and Canada at (800) 327-7030; in Miami-Dade County, Florida, (305) 436-0866. To download high resolution photography visit www.ncl.com/hires.

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