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ROYAL CARIBBEAN INTERNATIONAL ORDERS 4TH and 5TH EAGLE-CLASS SHIPS
MIAMI - February 29, 2000 - Buoyed by the success of the revolutionary cruise ship Voyager of the Seas, Royal Caribbean Cruises Ltd. (NYSE & OSE: RCL) and Kvaerner Masa-Yards have reached a preliminary agreement to build the fourth and fifth Eagle-class vessels for Royal Caribbean International. The companies have signed a letter of intent which calls for two unnamed ships at a total contract price of 1.1 billion euros, which at today’s exchange rate has a value of about $1.1 billion. The ships are due for delivery in 2002 and 2003. This letter of intent is subject to the fulfillment of certain conditions, such as financing by the shipyard.Two sisters of the 3,114-passenger, 142,000-ton Voyager of the Seas are currently under construction in Turku, Finland. Explorer of the Seas and Adventure of the Seas are due in 2000 and 2001, respectively. Both ships will have many of the unique features introduced three months ago on Voyager of the Seas, such as a four-deck-high horizontal atrium Royal Promenade, atrium-view staterooms, an ice-skating rink and a rock-climbing wall. Explorer of the Seas will have the cruise industry’s first marine and atmospheric laboratories, staffed by research scientists.“We believe, and our guests and travel agents have told us, that Voyager of the Seas is a winning formula,” said Richard D. Fain, Royal Caribbean’s chairman and CEO. “We are eager to sustain the momentum of our Eagle-class series.”Kjell Almskog, president and CEO of The Kvaerner Group, said, “The Eagle-class ships are a great source of pride for us, and we look forward to the challenge of continuing to build these truly revolutionary ships.”More…Royal Caribbean Orders Two More Eagle-Class Ships
The cruise industry continues to experience dramatic growth; Royal Caribbean International and its sister brand, Celebrity Cruises, successfully launched 10 new ships in the past five years, evidencing the strong fundamentals the industry enjoys. “Even with the increased capacity,” Fain said, “we still expect to fill our ships in 2000 while improving yields over 1999. This demonstrates the continued strength of Royal Caribbean's brands and of the cruise market. While there seems to be some pressure on pricing, the fundamentals of the industry continue to be very attractive. “Further evidence of this strength and of our ability to expand the market is the fact that the percentage of first-time cruisers at Royal Caribbean International remains at roughly 50 percent. This rate has remained quite stable at this level for more than 10 years, providing additional confirmation of our success in attracting new customers from the 89 percent of Americans who have not yet cruised.”Royal Caribbean Cruises Ltd. is a global cruise company, operating two cruise brands, Royal Caribbean International and Celebrity Cruises. The brands’ combined fleet consists of 17 in service with another 10 ships under construction, excluding the fourth and fifth Eagle-class ships. For additional information about Royal Caribbean Cruises Ltd., please visit www.royalcaribbean.com or www.rclinvestor.com.
--Tim
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