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Carnival Corporation & plc Launches Asian Cruise Initiative

Costa Cruises' Costa Allegra to Operate Five-Day Cruises from Shanghai Beginning in July 2006; First Large International Cruise Company Licensed by Chinese Government to Embark Its Citizens From Chinese Ports

Mar 06, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Costa Cruises, an Italian-basedsubsidiary of Carnival Corporation & plc, (NYSE: CCL; LSE) (NYSE: CUK), todayannounced that it will enter the Asian market in July 2006 with the CostaAllegra operating round-trip voyages from Shanghai.

The 1,000-passenger (total capacity), 28,500-ton vessel will be marketedexclusively to Chinese clientele, initially operating a series of 24 five-daycruises from Shanghai to Nagasaki, Japan, and Cheju, Korea, beginning July 3,2006.

"We have been exploring a strategy for entering the Asian marketplace forsome time and have indicated that our entrance into this hugely populatedmarket would be through one of our existing brands. These cruises represent afirst step in this initiative and will serve as a platform for futureexpansion into other areas of Asia. Although all of our brands are virtuallyunknown in China, we chose Costa because it is already very international innature, serving guests of many different nationalities, languages andcultures," said Micky Arison, Carnival Corporation & plc chairman and CEO. Henoted that most of Carnival's other brands cater to specific nationalities.

Costa Cruises Chairman and CEO Pier Luigi Foschi's extensive experienceworking in Asia was another factor in selecting Costa, according to Arison.Prior to being recruited by Carnival Corporation in 1997, Foschi spent sevenyears in Hong Kong and Singapore overseeing the Pacific Asia operations forthe Otis Elevator Company.

During this time, he managed an organization consisting of 22 separateoperations, employing nearly 18,000 people, with sales of approximately$1.8 billion. "Pier is a highly talented international executive and hisyears in Asia, combined with his vast experience overseeing Europe's leadingcruise company, bring a unique insight and perspective into our new Asiancruise initiative," Arison said.

Arison noted that China is one of the world's fastest growing travelmarkets, with more than 31 million Chinese traveling abroad last year. Thatnumber is expected to grow to 50 million by 2010. "Asia is a vastlyunderserved market and although these cruises on the Costa Allegra may be justa small step, if it proves as successful as we anticipate, this region couldbe the next great growth area for cruising," he said.

To oversee its entry into Asia, Costa has created a new division, CostaAsia, with an office in Hong Kong and an office in Shanghai scheduled to openin April of this year. This marks the first time that a large internationalcruise company has been granted a license by the People's Republic of China toembark its citizens from Chinese ports. In May, Costa plans to open a callcenter in mainland China.

According to Foschi, "This project, together with our previously announcednew itineraries in the Far East and UAE, is part of Costa's strategy ofbusiness development and expansion in what we believe are emerging, high-growth markets. It will be a great thrill to see a Costa Cruises' ship in theports of the People's Republic of China and other Asian countries."

Prior to the launch of service from Shanghai, Costa Allegra will undergo amulti-million-dollar renovation to create an on-board product specificallytailored to the preferences of Chinese vacationers but with a European flair.Following the refurbishment, the Costa Allegra will offer a variety of diningoptions, including a "fusion" (Asian/Italian) restaurant, a sushi/noodles bar,an Italian restaurant, a wellness center, and a shopping area. Entertainmentwill be geared toward Asian tastes, as well.

While Costa Allegra's deck and engine officers, along with keydepartmental management, will be Italian, they will be assisted by more than230 Chinese professionals who will be hired from local hotels and resorts

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 80 ships totaling more than 139,000 lowerberths with 15 new ships scheduled to enter service between May 2006 and fall2009. Carnival Corporation & plc also operates the leading tour companies inAlaska 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.

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SOURCE Carnival Corporation

Media, in U.S., Tim Gallagher, Carnival Corporation & plc, +1-305-599-2600, ext.
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