Carnival and Fairfield Announce Comprehensive Strategic Marketing Alliance; Extensive Cross-Marketing Efforts Planned.

Business & Travel Editors

MIAMI & ORLANDO, Fla.--(BUSINESS WIRE)--July 11, 2000

Carnival Cruise Lines (NYSE: CCL), the world's leading provider of cruise vacations, and Fairfield Communities (NYSE: FFD), one of the nation's leading vacation ownership companies, have launched an extensive strategic marketing alliance touching nearly every facet of Fairfield's business model, including guest generation, sales and product development.

Carnival Discovery Vacations Announced

The new alliance introduces Carnival Discovery Vacations, which allow prospective owners to 'test drive' Fairfield's vacation ownership program for a year before becoming lifetime FairShare Plus members. With Carnival Discovery Vacations, customers can use points for a weeklong Cruise & Condo Vacation product that combines a four-night stay in a Fairfield resort condominium with a three-day Carnival cruise. However, Fairfield guests who do purchase FairShare Plus vacation ownership points above a certain threshold level will be awarded a free Carnival cruise.

Cruises Create New Guest Generation Opportunities

In addition to Carnival Discovery Vacations and the reward for first-time purchasers, cruises are integrated into the entire spectrum of Fairfield's guest generation programs. These include two night pre- and post-cruise resort preview mini-vacations and "Land & Sea" discount vacation packages that combine three-night hotel stays in Ft. Lauderdale, Orlando or Daytona Beach, and a three-, four- or five-day Carnival "Fun Ship" cruise from Miami, Port Canaveral or Tampa.

"Fairfield has the most sophisticated tour and travel operation in the vacation ownership business," said Bob Dickinson, president of Carnival Cruise Lines. "With eight Fairfield resorts in Florida and eight Carnival ships sailing from Florida ports, bringing these two brands together is a natural strategic fit," he added.

"There is a natural affinity among our vacation ownership for cruising," said Jim Berk, president and CEO of Fairfield Communities, who added that Fairfield has been selling Carnival cruise vacations since 1994. "More than half our vacation owners have taken a cruise, and fully three-fourths of them intend to. Through this partnership, both companies can leverage their expertise and infrastructure to cross-promote their products. We are very pleased to have added further strength to our relationship with Carnival, one of the most respected leaders of the travel and leisure industry."

Companies Plan Further Alliance

Both Dickinson and Berk said their companies are developing additional promotions that will provide Carnival's cruise guests with value added booking incentives, including getaways to more than 15 Fairfield resort destinations.

"We have more opportunities together than we can possibly convert on right now. We will continue to add new dimensions that will benefit both companies, as well as our millions of loyal customers," Dickinson said.

Carnival Cruise Lines, is the world's largest cruise line based on passengers and is the largest unit of Carnival Corporation (NYSE:CCL) which also includes Holland America Line, Windstar Cruises, Cunard Line Limited, which operates the Cunard and Seabourn cruise brands, and interests in Costa Cruises and Airtours plc. Combined, Carnival Corporation's various brands operate 47 ships in the Caribbean, Alaska, Europe and other worldwide destinations.

Fairfield is one of the largest vacation ownership companies in North America. The Company markets vacation products and manages resort properties that provide quality vacation experiences at 28 locations in 11 states and the Bahamas, to more than 278,000 vacation-owning households. For 1999, Fairfield Communities, Inc. reported record earnings and revenues of $1.25 per fully diluted share and $492 million, an increase of 34% and 21%, respectively.

Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, general industry and economic conditions; interest rate trends; regulatory changes; availability of real estate properties; competition from national hospitality companies and other competitive factors and pricing pressures; shifts in customer demands; the continued availability of financing in the amounts and at the terms necessary to support the Company's future business as well as other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the Annual Report and report on Form 10-K for the year ended December 31, 1999.