Kloster Cruise Limited signs agreement to sell M S Starward; also announces hiring of Smith Barney to raise equity to build new ships.

CORAL GABLES, Fla.--(BUSINESS WIRE)--Feb. 15, 1995-- Kloster Cruise Limited announced today that it has signed a letter of agreement for the sale of the last of its older vessels currently in service at Norwegian Cruise Line.

The M/S Starward has been purchased by the Greek ship owning company Festival Shipping and Tourist Enterprises Ltd. for $25.3 million.

Simultaneously, Kloster Cruise Limited announced that it has engaged Smith Barney to raise substantial equity for the company in order to build new ships for its Norwegian Cruise Line and Royal Cruise Line divisions.

Kloster Cruise Limited will realize a net profit from the sale of approximately $14.1 million.

"In selling the Starward, Kloster Cruise Limited has taken another important step in our bold plan to transform Norwegian Cruise Line from a fleet of older vessels into a fleet comprised of modern, contemporary ships," said Adam Aron, president and chief executive officer of Kloster Cruise Limited.

"The Dreamward, Windward, Seaward, the recently refurbished Norway, and the new Leeward joining the NCL fleet this summer, combined with a whole array of service enhancements and product innovations, make Norwegian Cruise Line an attractive choice for consumers and for travel agents."

Aron further commented, "As important, in engaging Smith Barney to raise equity for Kloster Cruise Limited, we are taking an important step to position the company to order new vessels. Kloster intends to expand our position as a major player in the U.S. cruise industry. New ships are in our future."

For perspective on Kloster's progress in its fleet modernization, of the nine ships that will be in the Norwegian Cruise Line and Royal Cruise Line fleets at year end 1995, four will have been constructured since 1992 (Dreamward 1992, Windward 1993, Leeward 1993, Queen Odyssey 1992).

Two were built in 1988, are quite modern and are highly competitive in the marketplace (Seaward and Crown Odyssey). The three additional vessels have been beautifully renovated and substantially refurbished with some $48 million of investment within the past 18 months (Norway, Sept. 1993; Star Odyssey, April 1994; Royal Odyssey, Nov. 1994).

By contrast, the 754-passenger Starward entered service in December, 1968.

The Starward will remain in the NCL fleet until the end of September 1955, and will be delivered to the buyers in Greece in October 1995. Until then, the 16,107 grt Starward will continue on its current seven-day NCL cruise itineraries to the southern Caribbean from San Juan.

By deferring delivery of the Starward to its new owners until October, Kloster has taken great care to prevent disruption to passengers or travel agents who might otherwise be inconvenienced by a more immediate sale of the vessel.

The Starward will leave the NCL fleet just shortly after the arrival to NCL of the new 950-passenger Leeward this summer.

CONTACT: Kloster Cruise Limited

Fran Sevcik, 305/460-4762