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Carnival Corporation & plc Realigns and Expands Its Capacity in the British Cruise Market

* Cunard Orders New Enhanced Version of Queen Victoria for Early 2007 Service

* P&O Cruises to Take Delivery of a New Ship, the Arcadia, Originally Scheduled to be the Queen Victoria, in 2005

* P&O Cruises and Princess Cruises Realign Their Fleets

MIAMI, April 5, 2004 /PRNewswire-FirstCall/ -- Carnival Corporation & plc(NYSE/LSE: CCL; NYSE: CUK) announced today that it is proceeding with asignificant restructuring of its capacity in the British market. CunardLine's Queen Victoria, a ship under construction in the Fincantieri MargheraYard, will be transferred to P&O Cruises and renamed the Arcadia. The newArcadia is scheduled to enter service in April 2005.

Cunard Line also announced that it has ordered an enhanced Queen Victoria,also to be built by Fincantieri Cantieri Navali Italiani S.p.A, which is nowscheduled to enter service in January 2007. The new Queen Victoria willaccommodate some 1,850 passengers and is expected to have an all-in cost ofapproximately euro 390 million. The new Queen Victoria will be moreconsistent with the grand ocean liner style of the Queen Mary 2 and QueenElizabeth 2, and will include more luxury suites and mini-suites, and moreclassic culinary experiences including Queens and Princess Grills, and anupscale Todd English alternative restaurant.

Like the Queen Mary 2 and Queen Elizabeth 2, the new Queen Victoria willbe marketed to passengers in both the United States and United Kingdom, aswell as to passengers in Australasia and Asia.

P&O Cruises, the leading cruise brand in the United Kingdom, will takedelivery of the new 1,968-bed Arcadia in April 2005. At 85,000 tons, with anall-in cost of approximately #225 million she will be the largest cruise shipbuilt exclusively for the British market. The ship, with 677 balcony cabinsand alternative dining venues, will raise the quality of the P&O fleet stillfurther. Arcadia, which was ordered prior to the combination of P&O PrincessCruises plc and Carnival Corporation, was originally designed to provide apremium British cruise experience and is well suited to delivering the P&OCruises product to its British customers.

To provide an alternative cruise product for the British market and tosatisfy the growing consumer demand for a more informal, upscale cruiseexperience, the Princess Cruises brand, renowned for its state of the artships, informality, anytime dining and excellent American-style service, willallocate more of its capacity to the UK market. The 77,000-ton, 1,950-lowerberth Adonia, currently sailing as part of the four ship P&O Cruises fleet,will be transferred to Princess Cruises in May 2005. This ship will reclaimthe name Sea Princess, which she was originally given at the time of herdelivery by Fincantieri to Princess Cruises in 1998, prior to her subsequenttransfer to P&O Cruises.

As the first Princess Cruises ship with itineraries tailored specificallyto meet the preferences of British passengers, Sea Princess will spearhead anincrease in Princess Cruises' capacity dedicated to the UK market. She willoperate cruises from the UK in the summer and 14-day Caribbean cruises in thewinter. These itineraries will also be attractive to North Americancustomers.

In May 2005, the Royal Princess, which currently sails for PrincessCruises, will be renamed the Artemis and join the P&O Cruises fleet, whichwill bring the number of vessels in the P&O Cruises fleet to five. Already aclassic medium-sized ship with all outside staterooms, the 45,000-ton, 1,200-bed Artemis will be converted to a British-style vessel prior to enteringservice for P&O Cruises.

The transfers of Adonia to Princess Cruises and the Royal Princess to P&OCruises will further increase the capacity growth of the successful Princessbrand to approximately 16 percent in 2005. The average age of the Princessfleet will be reduced to approximately four years, the percentage of thefleet's total number of cabins with balconies will increase to 54 percent andthe greater consistency of the Princess fleet achieved with these transferswill further improve its ability to provide personal choice cruising andanytime dining.

For P&O Cruises, the net effect of the transfer of ships will result in a2005 capacity increase of approximately 8 percent and almost 40 percent of thefleet's cabins will then have balconies, a feature which has become so highlydesirable by today's cruisers.

"The tremendous success of the Queen Mary 2, and the potential to grow andoffer further choice for UK cruise passengers, prompted these changes. Wewill now have brands and ships that cater to all the differing needs of thegrowing and diversifying United Kingdom passenger base," said Peter Ratcliffe,chief executive officer of P&O Princess Cruises International and an executivedirector of Carnival Corporation & plc. "Cunard Line, P&O Cruises and PrincessCruises will all benefit from these moves and the changes are a furtherfulfillment of the fleet optimization opportunities offered by the recentcombination of P&O Princess Cruises plc and Carnival Corporation."

Carnival Corporation & plc is the only company in the world to be includedin both the S&P 500 and the FTSE 100 indices and most recently was added tothe NYSE U.S. 100 Index.

Traded on both the New York and London Stock Exchanges, CarnivalCorporation & plc is the largest cruise vacation group in the world, with aportfolio of 12 cruise brands in North America, Europe and Australia,comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises,Seabourn Cruise Line, Windstar Cruises, AIDA, Costa Cruises, Cunard Line,Ocean Village, P&O Cruises, Swan Hellenic, and P&O Cruises Australia.

Together, these brands operate 75 ships totaling more than 123,000 lowerberths with nine new ships scheduled for delivery between April 2004 and mid-2006. Carnival Corporation & plc also operates the leading tour companies inAlaska and the Canadian Yukon, Holland America Tours and Princess Tours.Additional information on Carnival Corporation & plc is available atwww.carnivalcorp.com and www.carnivalplc.com.

SOURCE Carnival Corporation & plc

CONTACT:
Media, US -
Tim Gallagher of Carnival Corporation & plc
+1-305-599-2600, ext. 16000
or
UK -
Sophie Fitton or Sarah Tovey
both ofBrunswick
+44-20-7404-5959
both for Carnival Corporation & plc
or
Investors, US -
Beth Roberts
+1-305-406-4832
or
UK -
Bronwen Griffiths
+44-23-8052-5231
both of Carnival Corporation & plc
Web site: # #
(CCL CUK)

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