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CARNIVAL CORPORATION REACHES AGREEMENT WITH GERMAN GROUP FOR CRYSTAL PALACE SALE

 MIAMI, Oct. 28 /PRNewswire/ -- Carnival Corporation (NYSE: CCL) announced today that it has signed an agreement in principle to sell 81 percent of its Crystal Palace hotel and casino complex in Nassau, Bahamas, to a German group of investors for $65 million in cash and senior secured notes. Under this agreement, Carnival will use $25 million of the proceeds from the transaction to pay off existing Crystal Palace indebtedness.
 The German investment group is headed by Frank Thelen, a principal in five German casino partnerships which together form the German Casino Management Group headquartered in Berlin, Germany. The casinos are located in Berlin, Baden-Baden, Constance, Bad Durkheim, Bad Neuenahr and Westerland. The investment group will include several of Thelen's partners in the German casinos.
 According to Thelen, the new majority owners intend to reorient the marketing of the Crystal Palace to the European holiday market and have initiated discussions with LTU/LTI, one of the largest air charter operators in Europe, to establish direct flights from Europe to the Bahamas. "We also intend to invest additional capital in the Crystal Palace to further establish it as a high end destination and add a range of services and amenities especially appreciated by the up-market European tourist," Thelen said.
 Carnival Corporation will retain a 19 percent minority shareholder position in the Crystal Palace and will enter in a cooperation agreement which will provide for Carnival Cruise Lines to continue its existing business relationships with the Crystal Palace.
 The agreement in principle is subject to a number of conditions, including completion of due diligence by the German investment group, approvals of various Bahamas governmental agencies, and the finalization of definitive agreements between the two parties. Accordingly, no assurance can be given that the transaction will be consummated.
 Negotiations with the German investment group have been underway for several months, according to Carnival Corporation Chairman and CEO, Micky Arison, who said that Carnival was delighted to team up with a group that can provide an additional revenue source to the Crystal Palace. "During the past two years, we have been successful in reducing the operating losses at the property, but further work is still necessary to increase hotel revenues and reduce operating costs. This is essential, as a property of this magnitude requires considerable capital investment to maintain its high operating standards," Arison said.
 Carnival Cruise Lines, Inc., to be renamed Carnival Corporation, comprises the world's largest cruise line based on number of passengers carried. In addition to Carnival Cruise Lines, its other units include Holland America Line, Windstar Cruises, FiestaMarina Cruises and Seabourn Cruise Line, which combined operate 18 ships in the Caribbean, Alaska and other worldwide destinations. Carnival Cruise Lines' new 70,000-gross-registered-ton SuperLiner the Sensation will enter service in late November. It has contracted for the construction of two more 70,000-gross-registered-ton, 2,600-passenger ships, the Fascination and Imagination, which are scheduled for delivery in 1994 and 1995, respectively, as well as a 95,000-ton ship which will be the largest cruise ship ever built, scheduled for delivery in 1996. Holland America Line's 1,266-passenger Maasdam will begin service in early December and the line has another vessel under construction, the 1,266-passenger Ryndam scheduled to be delivered in late 1994.
 -0- 10/28/93
 /CONTACT: Tim Gallagher of Carnival Corporation, 305-599-2600, ext. 776/
 (CCL)


CO: Carnival Corporation; Crystal Palace ST: Florida IN: LEI SU:

AW -- FL005 -- 7749 10/28/93 09:19 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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