Sea Containers reports second best earnings in its 30 year history: 1995 net income of $107 million ($8.27 per common share); new ferry division and hotel division investments will double group annual revenue.

HAMILTON, Bermuda--(BUSINESS WIRE)--April 1, 1996--Sea Containers Ltd., marine container asset lessor and manufacturer, and ferries, train, port and hotel operator, today confirmed its earlier forecast of 1995 results by reporting net income for the year ended December 31, 1995 of $107.4 million ($8.27 per common share) on revenue of $497.4 million.

In 1994 net income was $31.8 million ($1.50 per common share) on revenue of $489.2 million. For the fourth quarter of 1995 net income was $1.7 million (loss after payment of preferred share dividends of $0.20 per common share) compared with net income of $7.8 million ($0.35 per common share) in the fourth quarter of 1994 (which included a $7.5 million foreign exchange gain). The fourth quarter and first quarter are poor earnings periods because ferry and some hotel revenues are low, due to seasonality of demand and rates.

The company's Container Division increased its operating profits 16% from $73.9 million in 1994 to $85.9 million in 1995, despite a 3% increase in the idle rate of its equipment from the beginning of 1995 to the end of the year. This idle rate increase largely arises from the voluntary liquidation of a South American state owned shipping company. Sea Containers expects to turn around the equipment and have it back on lease to new customers within a few months.

Mr. James B. Sherwood, President, said that the decline in U.S. dollar interest rates was improving margins on the company's container leasing business since most underlying debt is floating interest rate. The company's "SeaWorthy" and "SeaCover" programs, designed to reduce repair costs for both lessees and lessors, are beginning to "bite". New container prices have dropped due to lower materials costs but there is currently no sign of excess purchasing on the part of competitors. Sea Containers acquired $66 million of container assets in 1995. Demand for 40' refrigerated containers is strong but weak for 20' such units. Sea Containers is having to move excess 20' refrigerated containers from Australasia to other markets. Mr. Sherwood said that 3 of the company's container and ro-ro cargo ships and a laid-up passenger ferry had been sold in recent months, although at a combined loss. The company's cargo ship fleet is now down to 4 container vessels (including two in the Maersk West Australia Line Ltd. joint venture) and 3 ro-ro ships (including 2 owned by the Isle of Man Steam Packet company).

The company's Ferries and Ports Division is in the midst of a major transition. Operating profits in 1995 were $107.1 million compared with $23.4 million in 1994. The large increase is due to the gain on the sale of the Wightlink ferry unit early in 1995. Hoverspeed Ltd., the company's English Channel ferry business, faced the full force of Eurotunnel competition for the first time in 1995 and came through with "flying colors". Profits were down but carryings were not. Operating profits were approx. $5 million, down $3 million from 1994. Mr. Sherwood said that the market was clearly following speed and Hoverspeed's reduced profits were due to ferry competitors cutting rates and not from the Eurotunnel competition.

Sea Containers enlarged its Scandinavian fast ferry operations by striking a joint venture with Norway's largest ferry operator, Color Line and extending the service to Norway. The new two ship ColorSeaCat service has just started and the outlook is promising.

The company announced last week that it had acquired a controlling interest in the Isle of Man Steam Packet Company and the board of that company had recommended to its shareholders acceptance of Sea Containers' offer for the remaining outstanding shares. Sea Containers' plan is to consolidate all its Irish Sea interests into the Steam Packet Company. Those interests include the profitable SeaCat Scotland ferry service and the equally profitable port of Heysham. The Steam Packet Company had poor results in 1995 but these were exaggerated by a large severance bill, wind-up of a loss-making freight service and failure to retire an unneeded passenger vessel. Mr. Sherwood predicted that earnings would rebound in 1996.

Sea Containers also announced last week that it had been awarded the franchise to operate the East Coast Main Line of British Rail. Many people feel this is the "jewel in the crown" of British Rail. It consists of an electrified high speed route from London's Kings Cross Station to Scotland, stopping at the large industrial and population centers of Peterborough, Doncaster, York, Newcastle, Leeds, Edinburgh, Glasgow and cities to the north. Sea Containers will seek to change the trade name of the service from the current rather pedestrian "Intercity East Coast" to "The Great Northern Railway" and to introduce touches of comfort related to its famous Venice Simplon-Orient-Express and Eastern & Oriental Express trains which it operates in Europe and Asia.

Mr. Sherwood said that Sea Containers would take over Intercity East Coast on April 28 and annual revenue in the first 12 months of operation is forecast to be $450 million, rising to $570 million in the last year of the initial 7 year franchise period. He said that provided the company's assumptions are correct, profits from this business should surpass those of Wightlink and he believed it would still be possible to reduce government subsidy to zero in the 7th year of the franchise. He stressed that capital investment would be spread over the life of the franchise and be funded from cash flow, meaning that no new debt will be taken on by Sea Containers as a result of this franchise.

Sea Containers placed an order for 6 new high speed ferries in 1995, the first two to be delivered early in 1997. Mr. Sherwood indicated that demand for the new ships was coming from many directions and the ships were having to be "rationed" to the various attractive employments which were being offered.

Mr. Sherwood said that these developments are transforming the company's Ferry and Ports Division into the largest source of revenue for the group and an increasing portion of this revenue should fall to the bottom line.

The company's Leisure Division is also expanding rapidly, Mr. Sherwood said. Operating profit increased 14% in 1995 over 1994, to $17 million from $15 million. Three major acquisitions or start-ups took place in 1995, all in the latter part of the year. The company acquired an equity interest in, and management of, the largest hotel in Charleston, South Carolina, Charleston Place, a 440 room property which now becomes the largest hotel in the division. This was followed by purchase of '21' Club in New York which is performing well ahead of forecast. Then came the commencement of the "Road to Mandalay" cruise vessel service in Burma, operating between the historic cities of Ava (outskirts of Mandalay) to Pagan on the Irrawaddy River. This new business has got off to a good start and should be profitable in its first year of operation.

Mr. Sherwood indicated that 3 further hotel acquisitions were "in the pipeline". The first, the purchase of the Westcliff property in Johannesburg, South Africa, was accomplished last month. This is a residential development for which zoning has been obtained for conversion into a 120 suite and room garden hotel closer to the business center than other popular hotels. The second is a European hotel and the third is a hotel in the West Indies, both of which are expected to be acquired shortly. He said that profits of this Division for 1996 are forecast to be substantially up on 1995.

Mr. Sherwood said that he felt the combination of the changes described above is creating a transformation of Sea Containers from primary reliance on container asset leasing for its profits to those from rapidly growing transportation and leisure businesses. "We have celebrated our 30th year with excellent profits and have made major new investments to assure future profits and enhance shareholder value", he concluded. -0-

                   SEA CONTAINERS LTD. AND SUBSIDIARIES
                       SUMMARY OF OPERATING RESULTS

                              Three months ended December 31,

                                       1995        1994

Container asset rental
 and sales revenue                $ 54,447,000   $47,307,000

Ferry and Port operations
 revenue                            33,842,000    39,299,000

Leisure operations revenue          32,509,000    22,797,000

Other revenue                        2,464,000     3,243,000

Total revenue                     $123,262,000  $112,646,000

Earnings/(losses) before finance costs
 and income taxes:

  Container asset rental and sales   $ 21,862,000$ 20,234,000

  Ferry and Port operations            (1,038,000)   (833,000)

  Leisure operations                    4,225,000   4,108,000

  Other                                  (433,000)     71,000

                                       24,616,000  23,580,000

Corporate costs                        (3,100,000) (2,896,000)

Net finance costs                     (19,827,000)(13,366,000)

Earnings before income taxes            1,689,000   7,318,000

Provision for income taxes                (18,000)   (496,000)

Net earnings                            1,707,000   7,814,000

Preferred share dividends              (3,932,000) (3,968,000)

Net (losses)/earnings on class A and
 class B common shares               $ (2,225,000)$  3,846,000

Net (losses)/earnings per class A
 and class B common shares:

Primary                              $      (0.20)$       0.35

Fully diluted                        $          - $         -

Weighted average number of class A and
 class B common shares:

Primary                                11,174,257  11,057,990
Fully diluted                                   -           -

                   SEA CONTAINERS LTD. AND SUBSIDIARIES
                       SUMMARY OF OPERATING RESULTS

                              Twelve months ended December 31,

                                          1995        1994

Container asset rental and sales
revenue                              $217,088,000 $191,560,000

Ferry and Port operations revenue     147,579,000  183,773,000

Leisure operations revenue            121,386,000  102,538,000(a)

Other revenue                          11,367,000   11,296,000

Total revenue                        $497,420,000 $489,167,000

Earnings before finance costs and income taxes:

  Container asset rental and sales   $ 85,874,000 $ 73,856,000

  Ferry and Port operations (including gain
   on sale of ferry asset)            107,143,000  23,443,000

  Leisure operations                   17,033,000  14,956,000

  Other                                   212,000     186,000

                                      210,262,000 112,441,000

Corporate costs                       (13,691,000)(12,558,000)

Net finance costs                     (87,847,000)(67,393,000)

Earnings before income taxes          108,724,000  32,490,000

Provision for income taxes              1,337,000     686,000

Net earnings                          107,387,000  31,804,000

Preferred share dividends             (15,728,000)(15,874,000)

Net earnings on class A and class B
 common shares                       $ 91,659,000$ 15,930,000

Net earnings per class A and class B
 common share:

Primary                              $       8.27  $     1.50
Fully diluted                        $       6.54  $        -

Weighted average number of class A and
 class B common shares:

Primary                                11,089,406  10,586,165
Fully diluted                          15,394,024           -

(a) Leisure operations revenue for 1994 has been restated to include
100% of Orient-Express Hotels Inc.  revenues for the six months ended
June 30, 1994 (an increase of $21,914,000) although only 42% of the
company was owned until June 30, 1994 when Sea Containers Ltd.
acquired the remaining 58%.

              SEA CONTAINERS LTD. AND SUBSIDIARIES

            CONSOLIDATED AND CONDENSED BALANCE SHEETS

                                     December 31,December 31,
                                          1995        1994

Containers, Cranes, Chassis
  and Ships, net book value        $  879,149,000$ 872,605,000

Real estate and other fixed assets, net
  book value                          414,382,000  417,229,000

Assets under capital leases, net
  book value                           33,073,000   63,019,000

Cash                                   63,567,000   63,216,000

Receivables                           193,550,000  176,597,000

Inventories                            23,898,000   23,197,000

Investments                            48,320,000   28,287,000

Other assets                           55,421,000   45,159,000

                                   $1,711,360,000 $1,689,309,000

Liabilities with respect to Containers,
 Chassis and Ships                 $  641,053,000 $ 622,699,000

Bank loans with respect to real estate and
  other fixed assets                  181,608,000   258,852,000

Obligations under capital leases       29,320,000    57,609,000

Other liabilities                     223,373,000   191,983,000

9+% senior notes                      100,000,000   100,000,000

12+% senior subordinated debentures   123,161,000   122,952,000

10,% subordinated debentures           16,000,000    17,876,000

Redeemable preferred shares            55,224,000    56,724,000

Shareholders' equity                  732,882,000   651,875,000

Class B common shares with voting
 rights owned by subsidiaries        (391,261,000) (391,261,000)

                                   $1,711,360,000  $1,689,309,000

CONTACT: Sea Containers America Inc., New York

Jennifer Hawkins, 212/302-5066

William W. Galvin, 212/838-5454