Hong Kong, Feburary 24, 2002 - Hong Kong, February 24, 2002 - Asia Pacific leading cruise ship operator Star Cruises Limited (SEHK: 678) today announced Group results for the year ended December 31, 2001. During the year 2001, the Group's total revenues increased by 4.1% to US$1,381.6 million against a backdrop of competitive trading conditions as a result of a significant increase in capacity for the industry, and softer demand in particular following the tragic events of September 11, 2001.

The Group posted an operating profit excluding non-recurring expenses, start up expenses and fixed assets impairment loss of US$139.5 million for the year. Loss for the year was significantly reduced from US$44 million in 2000 to US$16 million in 2001 as a result of reduced interest cost due to lower average outstanding debts and interest rates.

Non-recurring expenses of US$30.8 million were recorded due to the rationalization of the North Asia operations, including the cessation of cruise operations in Taiwan and Japan, in the face of a steeper than expected economic downturn exacerbated by the September 11 attacks. Depreciation and amortization expenses also increased US$14.5 million to US$154.4 million in 2001 because of the addition of ships.

Star Cruises pioneered cruising in Asia Pacific through the introduction of a new freestyle cruising concept that is customized to the vacation pattern of customers in the region. Last year Asia Pacific remained the Group's core profit centre, contributing 37% of Group revenues and an operating profit of US$94.2 million.

Dato' Lim Kok Thay, Chairman, President and Chief Executive Officer of Star Cruises noted: "The Group will continue to capitalize on its first-mover advantage to expand its lead in Asia Pacific and to tap into new markets in North Asia. We are delighted and support the Hong Kong Government's initiatives to build the city into a cruise ship hub of the region. Hong Kong enjoys natural advantages and is on the right track to build supplementary infrastructure to support it to become the 'Miami of the East'. Being the largest cruise ship operator in Asia Pacific, we are committed to tap further into this market."

As at the end of 2001, the Group had aggregate capital expenditure commitments of approximately US$330.7 million relating to the construction of m.v. Norwegian Dawn with approximately 2,300 lower berths.

"m.v. Norwegian Dawn is expected to be delivered in the fourth quarter of this year to serve the US market. We will continue to look out for opportunities to invest in megaships which are custom designed for freestyle cruising, a concept we innovated in contemporary cruising," continued Dato' Lim Kok Thay.

The Group secured a seven-year syndicated refinancing facility of US$450 million which strengthens its financial position through the take out of shorter term loans and on more preferential terms.

The Group will continue to dedicate management's attention in improving the financial performance of the newly acquired Norwegian Cruise Line. The Group has started to rationalize its fleet deployment among the three cruise lines it operates worldwide and the synergies gained from the re-deployment of ships is expected to bring significant operations efficiency and cost savings to the Group.

Dato' Lim Kok Thay concluded: "The strategic investments we had made in the previous years will provide impetus for our future growth. We see tremendous upside to be gained from cross-selling opportunities on our global marketing network and the enhancement of yields by increasing on-board revenues."

About Star Cruises Limited Star Cruises Limited (SEHK: 678) is the world's fourth largest cruise ship operator. It pioneered cruising in Asia Pacific and is currently the largest operator in the region. The Group presently operates a combined fleet of 19 ships offering over 24,000 lower berths under the Star Cruises, Norwegian Cruise Line and Orient Lines brands. With over 17,000 employees worldwide, the Group carried an estimated 2.2 million passengers on its fleet in 2001. Together, the ships call at over 200 destinations and islands in Asia Pacific, North and South America, Europe, Bermuda, Mediterranean, Alaska and Antartica. Star Cruises is represented in more than 20 locations worldwide with offices in Australia, New Zealand, China, Germany, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Norway, Philippines, Singapore, Sweden, Switzerland, Taiwan, United Kingdom and the United States of America.

Operating Data

Passenger cruise days	7,133,949	6,735,894
Capacity days	7,523,849	6,949,853
Occupancy as a percentage of capacity days	95%	97%

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Star Cruises Limited

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