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Carnival Corporation & plc Comments on Potential Impact of Recently Passed Alaska Cruise Tax Initiative

MIAMI, Aug. 24, 2006 /PRNewswire-FirstCall/ -- Carnival Corporation & plc(NYSE/LSE: CCL) (NYSE: CUK) today commented on the potential impact ofAlaska's Ballot Initiative 2 which has been approved by the state's voters andis expected to be implemented in 2007.

Although still subject to final certification by the state, the new taxesinclude a $50 per passenger head tax which will increase the government taxesand fees paid by passengers embarking on Alaskan cruises. At this time, thecompany cannot estimate the impact these additional passenger taxes may haveon its Alaskan cruise business.

In addition to the head tax, the initiative includes a gaming tax on anygambling conducted within state waters as well as a state corporate income taxfor cruise lines operating ships in Alaska. Carnival estimates that thegaming and income taxes may reduce 2007 earnings per share by approximately$0.03.

The initiative also calls for cruise lines to reveal profits on shoreexcursions and any advertising revenues earned from shoreside businesses.

Carnival Corporation & plc brands currently carry approximately 560,000passengers annually in Alaska aboard 16 cruise ships - eight from HollandAmerica Line, seven from Princess Cruises and one from Carnival Cruise Lines.

"We are disappointed that the Ballot Initiative 2 has passed as we believethis will inhibit the future growth and expansion of Alaska's tourismbusiness," said Micky Arison, Carnival Corporation & plc chairman and CEO."The estimates of the impact of these taxes are being made prior to ourfinalizing deployment, legal and other business decisions that will need to beconsidered as a result of this initiative," he added.

Carnival Corporation & plc is the largest cruise vacation group in theworld, with a portfolio of 12 cruise brands in North America, Europe andAustralia, comprised of Carnival Cruise Lines, Holland America Line, PrincessCruises, Seabourn Cruise Line, Windstar Cruises, AIDA Cruises, Costa Cruises,Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic and P&O CruisesAustralia.

Together, these brands operate 81 ships totaling approximately 144,000lower berths with 15 new ships scheduled to enter service between March 2007and spring 2010. Carnival Corporation & plc also operates the leading tourcompanies in Alaska and the Canadian Yukon, Holland America Tours and PrincessTours. Traded on both the New York and London Stock Exchanges, CarnivalCorporation & plc is the only group in the world to be included in both theS&P 500 and the FTSE 100 indices.

Additional information is available on line via carnivalcorp.com andcarnivalplc.com.

SOURCE Carnival Corporation & plc

CONTACT: U.S. Media, Tim Gallagher, Carnival Corporation & plc,
+1-305-599-2600, ext. 16000; or UK Media, Ruban Yogarajah of Brunswick Group,
+011-44(0)20-7404-5959; or Investor Relations (U.S. and UK), Beth Roberts,
Carnival Corporation & plc, +1-305-406-4832

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