Caribbean Star Airlines & Caribbean Sun Airlines Initiate Cost-Cutting Measures to Optimize Future Growth; Fleet Reduced by Two Aircraft & Service Suspended to Four Destinations.

FORT LAUDERDALE, Fla. -- Caribbean Star Airlines and Caribbean Sun Airlines have initiated several cost-cutting measures to optimize efficiency in order to fast-track future growth. All changes will be effective as of September 2006 and include the following:

Caribbean Sun Fleet Reduction

In line with previously announced plans to re-fleet/upgrade both carriers' stable of Dash-8 turboprop aircraft, leases for two aging Caribbean Sun Dash-8 100 series aircraft will not be renewed and the aircraft will be removed from the fleet in September 2006.

Caribbean Sun Service Suspensions

To compensate for the loss of aircraft, Caribbean Sun will suspend service along three of its most unprofitable routes - St. Croix and St. Thomas in the U.S. Virgin Islands, and Santiago, Dominican Republic. Caribbean Sun previously operated one daily nonstop flight in either direction between its hub in San Juan, Puerto Rico, and both St. Croix and Santiago. Service to/from St. Thomas included once-daily nonstop service to/from San Juan, twice-daily nonstop service to/from St. Maarten, twice-daily one-stop service to/from Antigua, and once-daily two-stop service to/from Port-of-Spain, Trinidad & Tobago. The last Caribbean Sun flights to/from all three destinations will operate September 11, 2006.

Despite these moves, Caribbean Sun will continue to serve the Dominican Republic with the addition of new service between San Juan and Santo Domingo. The new service, which began July 19, 2006, features four daily nonstop flights in either direction, the most of any city-pair in the entire Caribbean Sun route network.

Caribbean Star Service Suspension

Additional unprofitable flying will be eliminated with the suspension of Caribbean Star service to/from Anguilla. Previously, Caribbean Star operated five weekly flights between Anguilla and its hub in Antigua, as well as five weekly flights between Anguilla and Tortola, British Virgin Islands. The last Caribbean Star flights to/from Anguilla will operate September 11, 2006.

About Caribbean Star Airlines Ltd. and Caribbean Sun Airlines Inc.

Privately held Caribbean Star Airlines Limited was incorporated in Antigua in January 2000. Its sister airline Caribbean Sun Airlines Inc., based in Fort Lauderdale, Florida, launched its maiden flight in January 2003. Caribbean Star Airlines Limited and Caribbean Sun Airlines Inc. are affiliated but separate companies. The air service provided by each carrier is operated independently of the other, and the rules applicable to travel on each airline may be different. More information about Caribbean Star Airlines and Caribbean Sun Airlines is available at their respective websites, http://www.flycaribbeanstar.com and http://www.flycsa.com.