NCL Signs Letter Of Intent To Build Two, 80,000-Ton Ships

Expansion Program Signals Continued Growth for NCL in the Marketplace

MIAMI, Florida, May 26, 1999 -- Norwegian Cruise Line today announced that it has signed a letter of intent with the Lloyd Werft shipyard in Bremerhaven, Germany, to build a 2,000-guest ship which will be of similar design to NCL’s M/S Norwegian Sky, now nearing completion at the same yard. The letter of intent includes an option for a second vessel of the same size and capacity. The contract price for the first newbuild, to be delivered June 1, 2001, is USD $351 million. The contract price for the second vessel, to be delivered to NCL April 1, 2002, is USD $334 million. The letter of intent is subject to final documentation and financing.

The announcement follows record first quarter results for the company and signals NCL’s continued strength and growth in the cruise marketplace.

"Delivery of Norwegian Sky this summer is the final step in a turnaround that has significantly increased the potential for Norwegian Cruise Line through a larger fleet of modern vessels and improved product quality," said Geir Aune, president and chief executive officer. "The new expansion program signals a strong commitment for this company to continue as one of the major players in the industry."

During the past 15 months, NCL has experienced record growth through the successful lengthening of three ships, M/S Norwegian Wind, M/S Norwegian Dream, and M/S Norwegian Majesty, increasing each vessel’s capacity by 40 percent and adding over 1,400 berths to the fleet; and the 100 percent acquisition of Orient Lines, a premium line offering cruises to exotic destinations.

Significantly, the number of projected capacity days will grow 37 percent from 4.1MM in 1999 to 5.6MM in 2002, with the addition of the new tonnage.

NCL will enter the new millennium with one brand new ship, two more on order, three which have been stretched and completely refurbished, and two which have undergone extensive refurbishment, S/S Norway and M/S Norwegian Sea.

The first, yet unnamed new build, will incorporate many of the hallmarks of Norwegian Sky’s contemporary design, including multiple dining choices, an Internet Cafe, Broadway entertainment, and an abundance of public spaces, inside and outside, for the enjoyment of all.

"At this stage in the process, we will have the opportunity to make some alterations to the ship’s design," said Art Sbarsky, NCL executive vice president, "so we can keep what we consider to be the very best features of Norwegian Sky and make evolutionary improvements as we go along. All three signify a new generation of NCL vessels dedicated to the quality and comfort of a sophisticated cruise ship environment."

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