Caribbean Star Airlines Postpones Curacao Launch; Full Refunds Provided to Passengers Ticketed on Flights Originally Scheduled to Begin July 13.

ST. JOHN'S, Antigua -- Caribbean Star Airlines announced today that it has postponed plans to offer new service to/from Curacao. The move comes as the carrier re-focuses and expands its efforts toward achieving Category One status under the Eastern Caribbean Civil Aviation Authority (ECCAA).

William E. "Skip" Barnette, president and CEO of Caribbean Star and its sister airline, Caribbean Sun, commented on the postponement, stating: "Cat One is our top priority right now. We've made tremendous strides throughout the year in elevating our customer care to world-class standards, but before we can offer our steadily improving product to a broader cross-section of the Caribbean, we must achieve Category One certification. Our operations staff and key executives are working closely with ECCAA officials to ensure the successful completion of the Category One recertification process."

Barnette went on to reinforce Caribbean Star's commitment to the Curacao market.

"Caribbean Star is 100% committed to offering service to Curacao. Again, with our emphasis on customer care, we're being proactive and offering customers already ticketed on the postponed service full refunds. It's our way of apologizing and showing good faith that we will be back before you know it."

All Caribbean Star passengers ticketed and confirmed for postponed travel to/from Curacao are eligible for full refunds of all ticket charges. To claim compensation, Caribbean Star customers must send their tickets via regular mail to the following address:

Caribbean Star Airlines

Attn: Revenue Accounts/Refund Department

PO Box 1628 W

Powells

St. Johns, Antigua

Caribbean Star's new Curacao service was originally scheduled to begin July 13, 2006, providing a new air link between Antigua in the northeast Caribbean and Curacao in south by way of Trinidad.

The ECCAA, which regulates the aviation industry in Organization of Eastern Caribbean States (OECS) countries, was awarded Category One status by the U.S. Federal Aviation Administration (FAA) in March 2006, requiring OECS-based carriers like Caribbean Star to be certified under the new guidelines in order to gain clearance to expand operations. Such provisions are required under the FAA's International Aviation Safety Assessments (IASA) program. Established in August 1992, the IASA program focuses on a country's ability, not an individual carrier's, to adhere to international standards and recommended practices for aircraft operations and maintenance established by the United Nations' technical agency for aviation, the International Civil Aviation Organization (ICAO).

About Caribbean Star Airlines and Caribbean Sun Airlines

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. With a total of 19 Dash-8 aircraft, the most recent of which was commissioned into service in January 2006, the combined Caribbean Star/Caribbean Sun fleet is the largest and most modern in the Caribbean. A total of 19 Caribbean destinations are served by the two airlines, which transport some 80,000 people each month. More information about Caribbean Sun Airlines and Caribbean Star Airlines is available at their respective Web sites, www.flycsa.com and www.flycaribbeanstar.com.

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.