Hong Kong, August 18, 2002 - Asia-Pacific leading cruise ship operator Star Cruises Limited (SEHK: 678) today announced that in the first six months of 2002, the Group's revenue was US$757.8 million, up 14.4% from the corresponding period last year. During the period, operating profit increased 47.7% to US$82.1 million, net profit attributable to shareholders rose 36 times to US$23.0 million. The first-half results were achieved on the back of a year-on-year 15.7% higher capacity whilst occupancy remained at 96%. Net revenue yield deterioration of 3.4% for the first six months following the September 11 incident was less than previously expected. The directors of the Company recommended that no interim dividend be paid.

Improvements in the operating margin were also a result of the 15.7% lower selling, general and administrative expenses per capacity day, achieved through greater economies of scale from increased capacity and stringent cost measures. Net interest expenses for the last six months also reduced as the Group benefited from the lower interest rates.

During the first six months, the Group's total capacity increased 15.7% with the addition in late 2001 of two new ships - Norwegian Star and Norwegian Sun - in Norwegian Cruise Line ("NCL"), which resulted in an increase in capacity days of 35.5% for NCL. Net revenue yield of NCL was down marginally by 1.4%, which was better than expected in light of the impact of the September 11 events.

Star Cruises Asia Pacific ("SCA") operated with 13.3% less capacity days in the six months to June 30, 2002, primarily due to the early redelivery of the two chartered ships, SuperStar Taurus and Norwegian Star 1, and partly to the disposal of Star Aquarius, MegaStar Sagittarius and MegaStar Capricorn in the first quarter last year. This was partially offset by the introduction of Wasa Queen in September 2001 and the rejoining of SuperStar Capricorn into the fleet in January this year. SCA's net revenue yield was essentially unchanged.

Tan Sri Lim Kok Thay, Chairman, President and Chief Executive Officer of Star Cruises said: "NCL continues to strengthen its position as one of the leading cruise lines in the US. In the second quarter, it announced the 2003 deployment of Norwegian Sun to become the third ship in our Alaska fleet. All of our three Alaska ships will have weekend departure days, enabling NCL to become the leading line by capacity in the more popular of the two Alaska cruise itineraries. NCL has also recently been successful in securing a second license to sail to Bermuda which, limited by its own cruise tourism policy, permits only five such licenses. With two of the largest ships in the Bermuda market, NCL will be the brand with the leading capacity in this important summer market in the northeast."

With the addition of Norwegian Dawn next summer, NCL will carry more passengers on cruises out of northeastern US departure points (Boston, New York and Philadelphia) in 2003 than any other brand.

In Asia-Pacific, Star Cruises will continue to develop the largely untapped Chinese market. The rapidly growing number of outbound passengers from China which registered a 128% year-on-year increase for the first half, augurs well for the two ships which were recently deployed to penetrate the China market. Wasa Queen is currently providing a cruise ferry service between Xiamen and Hong Kong and SuperStar Gemini services the North China-South Korea cruise sector.

The Group maintained a healthy financial position. For the first six months, cash and cash equivalents increased to US$334.2 million from US$171.6 million as at December 31, 2001. In June 2002, the Group issued 189 million new shares at the price of HK$3.30 (US$0.42) per new share to raise net proceeds of US$77.3 million.

More on Star Cruises
Star Cruises is the fourth largest cruise line in the world presently operating a combined fleet of 19 ships with over 24,000 lower berths, with cruises to destinations and islands in Asia-Pacific, North and South America, Hawaii, Caribbean, Alaska, Europe, Mediterranean, Bermuda and Antarctica under the Star Cruises, Norwegian Cruise Line, Orient Lines and Cruise Ferries brands. By end 2002, with one ship currently on order, Star Cruises will have over 26,000 lower berths. 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, Thailand, United Kingdom and the Untied States of America.

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