News from Costa Cruises

Salute e Benessere

This Fall with the start of the CostaVictoria and CostaAtlantica's Caribbean season, Costa Cruises has added a new menu -- Salute e Benessere (Health and Well Being). This new menu features a low fat, low carbohydrate, low calorie and low cholesterol courses that will be available daily in the dining rooms during lunch and dinner. Total calories, fat calories, carbohydrates and cholesterol will be listed for each selection. Additional nutritional information will be available to guests upon request.

For the guest who desires meatless selections, Costa has developed a vegetarian menu. The vegetarian menu presented upon request will be available daily for both lunch and dinner in the dining room and will offer a delectable range of vegetarian dishes that offer an alternate variation of Costa's Italian Style cuisine.


Europe's #1 Cruise Line Unveils
its 2001 European Program

Europe's number one cruise line has published its new European brochure for 2001. Costa continues to provide the ultimate European cruise experience by offering Italian Style hospitality while sailing to some of the most intriguing destinations in the world.

As the youngest and largest fleet sailing throughout Europe, Costa offers an endless variety of itineraries in 2001. From the ice-carved fjords of Scandinavia to the sun kissed ports of the Mediterranean, Costa brings its Italian way of life to the farthest reaches of Europe. With 7 ships, 35 itineraries and 75 ports of call, Costa offers its guests more of what they come to Europe for.

Costa will deploy its entire fleet -- CostaAllegra, CostaAtlantica, CostaClassica, CostaMarina, CostaRiviera, CostaRomantica and CostaVictoria -- in Europe for the summer season (May through November). Sailing from the ports of Genoa, Venice, Barcelona, Amsterdam and Copenhagen, Costa's vessels will offer 5- to 18-night cruises to the Eastern and Western Mediterranean, Canary Islands, Black Sea, Baltic & Russia, Fjords/North Cape and Transatlantic.

The CostaClassica returns to the fleet after undergoing the largest lengthening of a cruise ship-to-date. The new bigger and better 78,000-ton, 1,998 passenger CostaClassica features a new 147 foot midsection and an additional deck running the entire length of the ship allowing for more public areas and 345 additional staterooms. She will once again sail on 7-night Eastern Mediterranean cruises from Venice to the Greek Isles, beginning April 30 through November 5. The CostaClassica also offers two positioning sailings between Genoa and Venice on April 25 and November 12.

The new 85,000-ton 2,114 passenger CostaAtlantica will sail from Venice resuming its 7-night itinerary to Greece/Turkey from May 27 to October 28. On May 22 and November 4, the CostaAtlantica will also sail on 5-night repositioning cruises between Genoa and Venice.

The breathtaking 76,000-ton, 1,928 passenger, CostaVictoria will sail from Genoa to Tunisia, Spain and France beginning May 13 through October 21. On May 8 and October 28, she will conduct 5-pight mini-cruises sailing from Genoa to Genoa.

The spectacular 53,000-ton, 1,356 passenger, CostaRomantica, which joined the fleet in November 1993, will offer a variety of Northern European voyages. Sailing from Amsterdam, the ship will offer 10, 11, 12 and 14-night cruises to the Fjords/North Cape/Spitzbergen and the Baltic & Russia on selected dates beginning in June through September. In addition to these sailings, the CostaRomantica will sail four 11 -night voyages from Genoa to Egypt, Israel and Greece on September 24, October 5, 16 and 27. The CostaRomantica will also offer two 9-night positioning cruises and six 5-night mini voyages.

The beautiful 28,500-ton, 820 passenger, CostaAllegra, entered service in December 1992 and will offer 3 different itineraries sailing out of Genoa on selected dates from May through October. She will cruise on 11 -night voyages to the Canary Islands and Black Sea and 10-night voyages to Egypt/Israel/Greece.

The intimate 25,500-ton, 776 passenger, CostaMarina, which made her maiden voyage in June 1990, will offer two 7-night itineraries. Departing Sundays, June through September, she will sail from Copenhagen to the Fjords and Baltic & Russia.

Costa offers Andiamo Advanced Purchase Rates enabling passengers to save from $800 to $1,600 per couple when booking their European cruise at least 90 days in advance. Economical air add-ons are available from most U.S. and Canadian gateway cities.

For passengers who book early and wish to extend their cruise vacation, Costa offers its popular "Two-Night Free Europe" package (after most sailings) in some of Europe's most exciting cities: Amsterdam, Copenhagen, Genoa, London, Nice/Monte Carlo, Paris, Rome and Venice. These and other land packages are also available for purchase.

In addition to the above itineraries, the classic CostaRiviera will offer a series of "Best Value Collection" sailings, which will feature classic 7-night voyages to the Western Mediterranean from Barcelona departing on Wednesdays, June 13 through October 17. More information regarding rates and itineraries for the "Best Value Collection" is included in a separate brochure.


Carnival Corporation's Costa Crociere Unit
Orders Two New 105,000-Ton Vessels

Costa Crociere S.p.A., a unit of Carnival Corporation (NYSE: CCL), has announced that it has signed a letter of intent with Italian shipyard Fincantieri Cantieri Navali S.p.A. for the construction of two 105,000-ton vessels for delivery in late 2003 and late 2004.

The 2,720-passenger ships, which will be built at Fincantieri's Sestri shipyard in Genoa, will cost approximately 850 billion lira for each vessel (approximately $400 million US at current exchange rates).

"It's very exciting to be building these vessels in our hometown of Genoa where Costa Crociere is based, and furthering our contribution to its economic development," said Pier Luigi Foschi, Costa's chairman and CEO. "Carnival Corporation has enjoyed a long and productive relationship with Fincantieri throughout the years, and we're pleased to continue to work with the shipyard."

This latest agreement renews the association between Costa and Fincantieri, which began with the construction of the Costa CostaClassica and Costa CostaRomantica in 1992 and 1993, respectively.

"We are particularly pleased with this agreement with Costa Crociere which will allow Fincantieri to resume building large passenger ships at Genoa Sestri, a historic yard which built the Rex in the 1930s and the last Italian liner Michelangelo in the 1960s," said Corrado Antonini, Fincantieri's executive chairman.

"The signing of the letter of intent represents Carnival's continuing strategy of expanding its cruise business in Europe," said Micky Arison, Carnival Corporation chairman and CEO. Carnival recently completed the purchase of the remaining 50 percent of Costa that was previously owned by Airtours plc.

"Costa is the largest cruise company in the fast-growing European market and these new ship orders will further strengthen Costa's leadership position with the newest and most modern cruise fleet in Europe," Arison added.

Costa's recently delivered Costa Atlantica has received rave reviews from travel agents, guests and the European press. In July, Costa confirmed an order for the sister ship to the Costa Atlantica for delivery in early 2003 [see below]. With this new letter of intent, Costa's order book is at three vessels.


Costa Cruises Orders New Cruise Ship
86,000-Ton Vessel To Be Built at Kvaerner Masa-Yards

Costa Crociere, parent company of Costa Cruises, has signed a contract with Finland's Kvaerner Masa-Yards for an 86,000-ton cruise ship. The as-yet-unnamed vessel will cost approximately 730 billion Lira ($350 million U.S. at current exchange rate) the same approximate cost of the recently launched CostaAtlantica. This new vessel is expected to enter service in the summer of 2003. She will be the eighth and largest ship in the Costa fleet.

The sister ship to the recently launched CostaAtlantica, she will accommodate 2,154 guests. "Since its debut in July, the CostaAtlantica has been met with overwhelming response from guests, travel agents and journalists who have praised the vessel as the most beautiful ever introduced in the European market," said Pier Luigi Foschi, Costa's chairman and CEO. "We expect the new sister ship will build upon the CostaAtlantica's success while continuing our rich tradition of Italian Style cruising," he added.

Dino Schibuola, President and CEO of Costa Cruises North America, states, "As with the birth of the CostaAtlantica, the announcement of this new vessel is a momentous occasion. It demonstrates the strength of the Italian Style brand of cruising and symbolizes Costa's commitment to providing our guests with the most exciting, advanced and unique cruise experience -- Cruising Italian Style."


Carnival Corporation to Purchase
Remaining 50 Percent of Costa Crociere

Carnival Corporation (NYSE: CCL), the world's largest cruise operator, announced that it has signed an agreement to purchase the remaining 50 percent interest in Genoa, Italy-based Costa Crociere from Airtours plc, a British-based travel supplier.

Carnival and Airtours jointly acquired Costa in 1997 and with the purchase of Airtours' 50 percent interest, Carnival will own 100 percent of the Italian cruise operator. Carnival will maintain its 26 percent strategic interest in Airtours which was acquired in 1996.

The cost of the Costa transaction will be 350 million pounds sterling (approximately $525 million U.S. at current exchange rates). "The purchase of Airtours' 50 percent interest in Costa is a very important strategic move in the continued development of Carnival Corporation's European business," said Micky Arison, Carnival Corporation chairman and CEO. "Costa is the largest and most successful cruise operator in Europe and will serve as Carnival's primary platform for expanding our presence in this increasingly important market," he added.

Arison added that the purchase will also allow Carnival, the world's largest cruise line, to further explore and optimize marketing and operating synergies with Costa and to move more quickly to expand Costa's newbuilding program to take advantage of the fast-growing European market.

Carnival expects to pay cash for the transaction. Based on Costa's projected 2000 earnings, the transaction is not expected to be dilutive to Carnival's earnings per share. The transaction is subject to certain customary conditions, including Airtours' shareholder approval, as well as that of any applicable European competition authorities. No assurances can be made that the transaction will be concluded.


CostaAtlantica Debuts in Europe

Costa Cruises' new flagship, the CostaAtlantica was christened in the waters just outside Piazza San Marco in Venice, Italy. As Italian dignitaries, celebrities and international press looked on, Monsignor Francesco Gioia, Archbishop of the Holy See, gave the ship's benediction followed by the ceremonial breaking of the bottle, which was entrusted to the godmother, Claudia Cardinale. Ms. Cardinale is an internationally-renowned Italian film star who embodies the personality, culture, elegance and beauty of Italy. She is best known for her starring role in the 1963 movie "8-1/2" by Italian film director Federico Fellini, whose films inspired the names of the CostaAtlantica's 12 decks.

The ceremony culminated with a magical celebration to music inspired by the films of Fellini. Attendees enjoyed a spectacular show featuring 40 young ladies in 18th Century costumes and flourishing balloons with flower garlands. In the air, women danced suspended from flying spheres, and down the side of the ship a myriad of acrobats danced as if on stage. This awe-inspiring christening ceremony ended under a glorious shower of blue and white confetti.

The CostaAtlantica was delivered to Costa Crociere, Europe's #1 Cruise Line, by the Finnish shipyard, Kvaerner Masa on June 30. The delivery had a special significance for Costa Cruises when the Captain Garbarino, of the CostaAtlantica, was presented with the Italian merchant marine flag. The CostaAtlantica is the first ship of Costa's fleet to be adorned with the tricolor Italian flag. Costa's other vessels will be re-flagged by the end of the year.

"The birth of the CostaAtlantica is a momentous occasion," states Dino Schibuola, President & CEO of Costa Cruises. "She is our seventh and largest ship, and she symbolizes Costa's commitment to providing our guests with a unique cruise experience -- Cruising Italian Style."

At a cost of approximately $400 million, the CostaAtlantica is a floating palace with every comfort, convenience and amenity offered for the enjoyment of her guests. The finest designers and architects spared neither effort nor expense in creating Costa's newest masterpiece. She was designed in classic Italian tradition to be one of the most exciting and stunningly beautiful ships of our time.

The captivating romance and pleasures of this ship begin as soon as one steps aboard. Carrara marble, Murano glass accents, inlaid mosaic tile and a Venetian atmosphere are among the many elements that distinguish the new flagship of Costa's fleet. Each deck combines the elegance of European style with the sophistication of American comforts. Among the ship's many stunning features are:



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