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Carnival Corporation & plc Announces Four-Ship Deal With Italian Shipbuilder Fincantieri Worth More Than $2 Billion

MIAMI, Dec. 14, 2005 /PRNewswire-FirstCall/ -- Carnival Corporation & plc(NYSE: CCL; LSE) (NYSE: CUK) today announced it has reached an agreement withItalian shipbuilder Fincantieri for the construction of four new cruise shipsworth more than $2 billion.

The agreement calls for the construction of four new vessels, one each forHolland America Line, Carnival Cruise Lines, Princess Cruises and CostaCrociere, along with options for two additional vessels, one each for CarnivalCruise Lines and Holland America Line.

The four new ships will add a collective 11,756 lower berths to the cruiseoperator's fleet. Two of the orders have been placed in U.S. dollars and twoothers are in euros.

According to Carnival Corporation & plc Chairman and CEO Micky Arison, theagreement extends Carnival Corporation & plc's newbuilding program through2009 while enabling the company to execute its strategy of expanding its NorthAmerican and European brands.

"Fincantieri constructs some of the world's most beautiful and technicallyadvanced ships and this agreement enables us to expand our core North Americanand European brands at very competitive prices considering today's unfavorableU.S. dollar/euro ratio," he said.

The new ships and options include:

* A 2,044-passenger ship which will be the largest ever constructed forNorth American premium operator Holland America Line. With an estimated all-incost of $450 million, the 86,000-ton Panamax vessel will be built atFincantieri's Marghera shipyard. The ship is expected to enter service insummer 2008. There is also an option for a sister ship scheduled to debut inspring 2010.

* A 3,100-passenger ship for North American premium brand Princess Cruisesset to debut in fall 2008. A sister to the Emerald Princess, the 116,000-tonvessel will be built at Fincantieri's Monfalcone shipyard at an approximateall-in cost of $570 million.

* A 3,608-passenger cruise ship for Carnival Cruise Lines representing thelargest vessel ever constructed for the contemporary North American operator.The 130,000-ton vessel, to be built at Fincantieri's Monfalcone shipyard at anestimated all-in cost of 560 million euro, is expected to enter service infall 2009. There is also an option for a sister ship scheduled to enterservice in summer 2010.

* A 3,004-passenger ship for Genoa, Italy-based Costa Crociere expected todebut in summer 2009. A sister ship to the Costa Concordia, the 112,000-tonvessel will have an estimated all-in cost of 485 million euro and will bebuilt at Fincantieri's Sestri shipyard.

Including the four new vessels, Carnival Corporation & plc's capacitygrowth for 2008 and 2009 is now expected to be 8.2 percent and 6.4 percent,respectively. The company's order book now includes 16 new ships, 13 of whichare being constructed by Fincantieri.

Commented Fincantieri Chief Executive Officer Giuseppe Bono, "Thisagreement further demonstrates the excellent working relationship that existsbetween industry leaders Carnival Corporation & plc and Fincantieri. CarnivalCorporation & plc operates some of the world's most successful andrecognizable cruise brands and we are delighted that the company has entrustedFincantieri with nearly all of its newbuilding projects."

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 79 ships totaling more than 137,000 lowerberths with 16 new ships scheduled to enter service between February 2006 andfall 2009. Carnival Corporation & plc also operates the leading tour companiesin Alaska and the Canadian Yukon, Holland America Tours and Princess Tours.Traded on both the New York and London Stock Exchanges, Carnival Corporation &plc is the only group in the world to be included in both the S&P 500 and theFTSE 100 indices.

Consummation of the transaction is subject to the negotiation andexecution of definitive documentation, the approval of the boards of directorsof Carnival Corporation & plc and other customary conditions.

Additional information on Carnival Corporation & plc is available at# and # .

SOURCE Carnival Corporation

CONTACT: Media, U.S., Tim Gallagher, Carnival, +1-305-599-2600,
ext. 16000, or UK, Sophie Fitton or Sarah Lindgreen, both of Brunswick group,
+011-44-20-7404-5959, for Carnival; or Investor Relations, U.S. and UK, Beth
Roberts, Carnival, +1-305-406-4832

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