Norwegian Cruise Line Reports Record Results and Net Yield Growth in 2008

2008 Pro forma EBITDA up 55%, 2009 year-to-date bookings up 15%

Under New Leadership and Focused Structure, Company Well Positioned for Earnings
Growth in 2009

MIAMI--(Business Wire)--
Norwegian Cruise Line (the "Company") completed a strategic repositioning in
2008, implementing a number of initiatives that have led to record results and
improved financial performance even within a challenging economic environment.
Highlights from 2008 included the augmentation of its senior management team
with both seasoned managers and industry veterans; enhancement of its onboard
product with the full implementation of Freestyle 2.0; significant improvement
in the way it conducts business with its travel partners through Partnership
2.0; realignment of its Hawaii operations; restructuring of its new build
program; and a keen focus on managing and streamlining its cost structure.

"The Company achieved record improvements in both EBITDA and Net Yields in 2008
despite an extremely challenging economy," said Kevin Sheehan, Norwegian Cruise
Line`s Chief Executive Officer. "We worked diligently in 2008 to transform the
Company with the successful implementation of a variety of measures and
initiatives. The result is a new Company, one that is extremely focused on
customer service, financial performance and is well poised to come through this
difficult period."

Full Year Results

Norwegian Cruise Line reported a record setting 18.2% increase in EBITDA1,2 in
2008 of $228.1 million versus $192.9 million in 2007. On a pro forma basis,
EBITDA1,2 increased 55.7% to $300.1 million versus the prior year after
including the impact of restructuring initiatives such as the re-flagging and
redeployment of Pride of Hawaii and Pride of Aloha from the Company`s
U.S.-flagged fleet to its international fleet as Norwegian Jade and Norwegian
Sky, respectively, as well as other cost saving initiatives.

In 2008, net revenues increased 2.9% despite a 3.7% decrease in capacity. Total
revenues for 2008 were $2.1 billion versus $2.2 billion in 2007, a 3.2%
decrease. Net Yields1 for 2008 increased 6.9% from the prior year while Gross
Yields1 were modestly higher. Operating income for the Company increased by
46.3% to $65.5 million in 2008 from $44.8 million in 2007, excluding impairment
charges in 2008 of $128.8 million related to the cancellation of a contract to
build a ship and $2.6 million in 2007 related to the sale of Oceanic. Excluding
these one-time charges, the Company reported a net loss of $83.0 million for its
year ended December 31, 2008, as compared to a net loss of $224.4 million for
the prior year. Results for the year ended December 31, 2008 include a non-cash
foreign exchange translation gain of $101.8 million primarily related to
marking-to-market the Company`s Euro denominated debt, offset by $99.9 million
of losses due to the change in fair value of our derivative contracts. The
Company reported a non-cash foreign exchange translation loss of $94.5 million
for the same period in 2007. Interest expense (net of capitalized interest),
decreased by $23.0 million year-over-year as a result of lower average
outstanding debt balances for the year.

Outlook

In the first few months of 2009, the Company experienced strong bookings with a
rise of 15% year-over-year through March 15, 2009. In addition, the new Groups
2.0 program, launched in December, saw a threefold increase in group staterooms
blocked compared to the same time last year. In 2009, the Company will return
the last of its older chartered ships (Norwegian Majesty) to Star Cruises,
completing the transformation of its fleet to 100% modern ships purpose-built
for Freestyle Cruising. The Company is eagerly anticipating the arrival of its
next generation of Freestyle Cruising ship, Norwegian Epic, scheduled for
delivery in May 2010. The arrival of Norwegian Epic represents the next step in
this exciting evolution of the Company`s fleet. The Company announced further
details about the ship`s wide range of accommodations on March 18, 2009, the
innovative dining and amenities on April 3, 2009 and will reveal information
about the entertainment on May 20, 2009. The Company will also open Norwegian
Epic`s 2010 itineraries for sale to the public on May 20, 2009.

In recent months, the Company had been exploring alternatives to optimize its
capital structure. In conjunction with an equity investment by its shareholders
of $100 million, the Company has refinanced approximately $800 million of debt
that it had coming due in 2009 and 2010.

"This is an extremely exciting time for Norwegian Cruise Line. We`ve transformed
the Company, improved our financial performance, negotiated new lender terms and
received additional financial support from our shareholders," added Sheehan. "In
addition, we`ve just received in depth broadcast coverage with the premiere of
the much anticipated CNBC/Peter Greenberg documentary which showcases Norwegian
Cruise Line to a large, international viewing audience. All of these elements
are helping us to weather this challenging climate."

1 A Non-GAAP measure. Included in this press release under "Non-GAAP Reconciling
Information" is a detailed reconciliation of the above Non-GAAP measures to GAAP
balances.

2 Excluding the impact of a one-time impairment loss in 2008 of $128.8 million
related to the cancellation of a contract to build a ship and a $2.6 million
loss in 2007 related to the sale of Oceanic.

Terminology and Non-GAAP Financial Measures

Non-GAAP Information

To supplement the Company`s condensed consolidated financial statements
presented on a U.S. Generally Accepted Accounting Principles (GAAP) basis, the
Company also provides certain non-GAAP financial measures, including EBITDA, pro
forma EBITDA, and adjusted operating income.

EBITDA is defined as earnings (net income) before interest, taxes, depreciation
and amortization, and is used by management to measure operating performance of
the business. Management believes EBITDA is a useful measure as it reflects
certain operating drivers of the Company`s business, such as sales growth,
operating costs, selling, general and administrative expenses and other
operating income and expense. EBITDA is also one of the measures used by the
Company to calculate incentive compensation for management-level employees. Pro
forma EBITDA excludes the impact of a one-time impairment loss in 2008 of $128.8
million related to the cancellation of a contract to build a ship and a $2.6
million loss in 2007 related to the sale of Oceanic, and also excludes certain
restructuring charges. While EBITDA and pro forma EBITDA are not recognized
measures under GAAP, management uses these financial measures to evaluate and
forecast the Company`s business performance. These non-GAAP financial measures
have certain material limitations, including:

* they do not include net interest expense. As the Company has borrowed money
for general corporate purposes, interest expense is a necessary element of its
costs and ability to generate profits and cash flows; and

* they do not include depreciation and amortization expenses. As the Company
uses capital assets, depreciation and amortization are necessary elements of its
costs and ability to generate profits.

Management compensates for these limitations by using EBITDA and pro forma
EBITDA as only two of several measures for evaluating the Company`s business
performance. In addition, capital expenditures, which impact depreciation and
amortization, interest expense and income tax expense, are reviewed separately
by management. Management believes these non-GAAP financial measures can provide
a more complete understanding of the underlying operating results and trends and
an enhanced overall understanding of the Company`s financial performance and
prospects for the future. EBITDA and pro forma EBITDA are not intended to be
measures of liquidity or cash flows from operations or measures comparable to
net income as they do not take into account certain requirements such as capital
expenditures and related depreciation, principal and interest payments and tax
payments. A reconciliation of these items can be found attached hereto.

Passenger Cruise Days

Passenger Cruise Days represents the number of passengers carried for the period
multiplied by the number of days in their respective cruises.

Capacity Days

Capacity Days represents double occupancy per cabin multiplied by the number of
cruise days for the period.

Occupancy Percentage

Occupancy Percentage, in accordance with cruise industry practice, represents
the ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of
100% indicates that three or more passengers occupied some cabins.

Net Revenues

Net Revenues represents total revenues less commissions, transportation and
other expenses, and onboard and other expenses.

Gross Yields

Gross Yields represents total revenues per Capacity Day.

Net Yields

Net Yields represents total revenues less commissions, transportation and other
expenses, and onboard and other expenses per Capacity Day. The Company utilizes
Net Yields to manage its business on a day-to-day basis and believes that it is
the most relevant measure of its performance and is commonly used in the cruise
industry to measure performance. The Company has not provided a quantitative
reconciliation of projected Gross Yields to projected Net Yields due to the
significant uncertainty in projecting the costs deducted to arrive at this
measure. Accordingly, the Company does not believe that reconciling information
for such projected figures would be meaningful.

Gross Cruise Costs

Gross Cruise Costs represents the sum of total cruise operating expenses and
marketing, general and administrative expenses.

Net Cruise Costs

Net Cruise Costs represents Gross Cruise Costs excluding commissions,
transportation and other expenses and onboard and other expenses. In measuring
the Company`s ability to control costs in a manner that positively impacts
operating income, the Company believes changes in Net Cruise Costs and Net
Cruise Costs Excluding Fuel to be the most relevant indicators of its
performance and are commonly used in the cruise industry as a measurement of
costs.

About Norwegian Cruise Line

Norwegian Cruise Line (NCL) is the innovator in cruise travel with a 42-year
history of breaking the boundaries of traditional cruising, most notably with
the introduction of Freestyle Cruising which has revolutionized the industry by
allowing guests more freedom and flexibility.

Today, NCL has the youngest fleet in the industry with 11 purpose-built
Freestyle Cruising ships, providing guests the opportunity to enjoy a relaxed
cruise vacation on the newest, most contemporary ships at sea.

NCL is presently building Norwegian Epic, a new third generation Freestyle
Cruising vessel, for delivery in May 2010.

High resolution, downloadable images are available at www.ncl.com/pressroom. For
further information on NCL, visit www.ncl.comor contact NCL in the U.S. and
Canada at (866) 234-0292.

Forward-Looking Statements

This release may contain statements, estimates or projections that constitute
"forward-looking statements" as defined under U.S. federal securities laws
including the statements made under the "Outlook" section of this release.
Generally, the words "expect," "anticipate," "goal," "project," "plan,"
"believe," "seek," "will," "may," "forecast," "estimate," "intend," "future,"
and similar expressions are intended to identify forward-looking statements,
which are not historical in nature. Although management believes that the
expectations reflected in these forward-looking statements are reasonable, it
can give no assurance that these expectations will prove to have been correct.
These risks include, but are not limited to, the impact of changes in the global
credit markets on the Company`s ability to borrow and counterparty credit risks,
including those under the Company`s credit facilities, derivative instruments,
contingent obligations, insurance contracts and new ship progress payment
guarantees; the Company's ability to finalize amendments to its credit
facilities and obtain additional equity investments from its shareholders in
accordance with the Company's expectations; changes in cruise capacity, as well
as capacity changes in the overall vacation industry; introduction of competing
itineraries and other products by other companies; changes in general economic,
business and geo-political conditions; adverse economic conditions that may
affect consumer demand for cruises such as higher unemployment rates, fuel price
increases, declines in the securities and real estate markets, and declines in
disposable income and consumer confidence; adverse events impacting the security
of travel that may affect consumer demand for cruises such as terrorist acts,
acts of piracy, armed conflict and other international events; lack of
acceptance of new itineraries, products or services by the Company`s targeted
customers; the Company`s ability to implement brand strategies and its
shipbuilding programs, and to continue to expand its business worldwide; costs
of new initiatives; changes in interest rates, fuel costs or foreign currency
rates; delivery schedules and estimated costs of new ships on terms that are
favorable or consistent with the Company`s expectations; risks associated with
operating internationally; impact of the spread of contagious diseases;
accidents and other incidents affecting the health, safety, security and
vacation satisfaction of passengers and causing damage to ships, which could
cause the modification of itineraries or cancellation of a cruise or series of
cruises; the Company`s ability to attract and retain qualified shipboard crew,
maintain good relations with employee unions and maintain or renegotiate the
Company`s collective bargaining agreements on favorable terms; changes in other
operating costs such as crew, insurance and security costs; continued
availability of attractive port destinations; the impact of pending or
threatened litigation and investigations; the ability to obtain financing and/or
insurance coverage on terms that are favorable or consistent with the Company`s
expectations; continued availability under the Company`s credit facilities and
compliance with the Company`s covenants; the impact of changes in the Company`s
credit ratings; changes involving the corporate, tax, environmental, health,
safety, security and other regulatory regimes in which the Company operates; the
impact of any future changes relating to how travel agents sell and market the
Company`s cruises; the impact on the Company`s business of any future increases
in the price of, or major changes or reduction in commercial airline services;
the impact of delays, costs and other factors resulting from emergency ship
repairs as well as scheduled maintenance, repairs and refurbishment of the
Company`s ships; disruptions to the Company`s software and other information
technology systems; the implementation of regulations in the United States
requiring United States citizens to obtain passports for travel to additional
foreign destinations; weather and natural disasters; and other risks discussed
in NCL`s filings with the Securities and Exchange Commission. You should not
place undue reliance on forward-looking statements as a prediction of actual
results. NCL expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements to reflect
any change in expectations or events, conditions or circumstances on which any
such statements are based. In addition, certain financial measures in this
release constitute non-GAAP financial measures as defined by Regulation G. A
reconciliation of these items can be found attached hereto and on the Company`s
web site at www.ncl.com/investors.

NORWEGIAN CRUISE LINE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands)

Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007

Revenues
Passenger ticket revenues $ 300,847 $ 355,457 $ 1,501,646 $ 1,575,851
Onboard and other revenues 130,003 143,079 604,755 601,043
Total revenues 430,850 498,536 2,106,401 2,176,894
Cruise operating expenses
Commissions, transportation and other 66,749 94,725 341,936 434,749
Onboard and other 33,208 48,697 182,817 204,768
Payroll and related 86,372 109,776 377,208 436,843
Fuel 46,485 60,725 258,262 193,173
Food 29,743 31,826 126,736 120,633
Other operating 73,833 76,631 291,522 306,853
Total cruise operating expenses 336,390 422,380 1,578,481 1,697,019
Marketing, general and administrative expenses 87,813 86,823 299,827 287,093
Depreciation and amortization expenses 41,522 41,005 162,565 148,003
Impairment loss 128,775 - 128,775 2,565
Total operating expenses 594,500 550,208 2,169,648 2,134,680
Operating (loss) income (163,650 ) (51,672 ) (63,247 ) 42,214
Non-operating income (expenses)
Interest income 831 262 2,796 1,384
Interest expense, net of capitalized interest (35,089 ) (50,926 ) (152,364 ) (175,409 )
Other income (expenses), net (13,078 ) (30,670 ) 1,012 (95,151 )
Total non-operating expenses (47,336 ) (81,334 ) (148,556 ) (269,176 )
Net loss $ (210,986 ) $ (133,006 ) $ (211,803 ) $ (226,962 )

NORWEGIAN CRUISE LINE
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share data)

December 31,
2008 2007

Assets
Current assets:
Cash and cash equivalents $ 185,717 $ 40,291
Restricted cash 4,004 1,375
Accounts receivable, net 6,047 8,173
Due from Affiliate - 235
Inventories 29,494 41,997
Prepaid expenses and other 24,460 27,353
Total current assets 249,722 119,424
Property and equipment, net 4,119,222 4,243,872
Restricted cash 1,682 1,682
Goodwill 400,254 400,254
Tradenames 202,538 202,538
Other assets 73,723 65,928
Total assets $ 5,047,141 $ 5,033,698
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt $ 182,487 $ 191,172
Accounts payable 70,412 88,715
Accrued expenses and other liabilities 278,213 202,794
Due to Affiliate, net 210,058 -
Advance ticket sales 250,638 332,802
Total current liabilities 991,808 815,483
Long-term debt 2,474,014 2,977,888
Other long-term liabilities 31,520 4,801
Total liabilities 3,497,342 3,798,172
Commitments and contingencies
Shareholders' equity:
Ordinary shares, $.0012 par value; 25,000,000 shares authorized; 24 12

20,000,000 shares and 10,000,000 shares issued and outstanding,

respectively
Additional paid-in capital 2,242,946 1,715,718
Accumulated other comprehensive income 137 1,301
Accumulated deficit (693,308 ) (481,505 )
Total shareholders' equity 1,549,799 1,235,526
Total liabilities and shareholders' equity $ 5,047,141 $ 5,033,698

NORWEGIAN CRUISE LINE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

Twelve Months Ended
December 31,
2008 2007

Cash flows from operating activities
Net loss $ (211,803 ) $ (226,962 )
Adjustments to reconcile net loss to
net cash (used in) provided by operating activities:
Depreciation and amortization expenses 162,565 148,003
Impairment Loss 128,775 2,565
(Gain) loss on translation of debt (111,464 ) 92,024
Loss (gain) on derivatives 101,511 (4,568 )
Write-off of unamortized loan fees 6,788 -
Other 865 843
Changes in operating assets and liabilities:
Decrease in accounts receivable, net 2,126 2,071
Decrease (increase) in inventories 12,503 (8,605 )
(Increase) decrease in prepaid expenses and other assets (15,323 ) 8,013
Decrease in accounts payable (18,303 ) (28,232 )
Increase in accrued expenses and other liabilities 627 32,427
(Decrease) increase in advance ticket sales (82,164 ) 18,752
Net cash (used in) provided by operating activities (23,297 ) 36,331
Cash flows from investing activities
Additions to property and equipment, net (163,607 ) (582,837 )
Increase in restricted cash (2,629 ) (181 )
Proceeds from sale of asset - 1,440
Net cash used in investing activities (166,236 ) (581,578 )
Cash flows from financing activities
Repayments on long-term debt (1,524,095 ) (323,464 )
Proceeds from debt 1,123,000 839,925
Transactions with Affiliate, net (211,267 ) 8,454
Contribution from Affiliate, net 948,111 -
Payment of loan arrangement fees (626 ) (2,907 )
Other (164 ) -
Net cash provided by financing activities 334,959 522,008
Net increase (decrease) in cash and cash equivalents 145,426 (23,239 )
Cash and cash equivalents at beginning of period 40,291 63,530
Cash and cash equivalents at end of period $ 185,717 $ 40,291

NORWEGIAN CRUISE LINE
NON-GAAP RECONCILING INFORMATION
(unaudited)

The following table sets forth selected statistical information for the periods presented:

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Passenger Cruise Days 2,182,349 2,466,674 9,503,839 9,857,946
Capacity Days 2,155,454 2,372,204 8,900,816 9,246,715
Occupancy Percentage 101.2 % 104.0 % 106.8 % 106.6 %

Gross Yields and Net Yields were calculated as follows (in thousands, except Capacity Days and Yields):

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Passenger ticket revenues $ 300,847 $ 355,457 $ 1,501,646 $ 1,575,851
Onboard and other revenues 130,003 143,079 604,755 601,043
Total revenues 430,850 498,536 2,106,401 2,176,894
Less:
Commissions, transportation
and other 66,749 94,725 341,936 434,749
Onboard and other 33,208 48,697 182,817 204,768
Net revenues $ 330,893 $ 355,114 $ 1,581,648 $ 1,537,377

Capacity Days 2,155,454 2,372,204 8,900,816 9,246,715
Gross Yields $ 199.89 $ 210.16 $ 236.65 $ 235.42
Net Yields $ 153.51 $ 149.70 $ 177.70 $ 166.26

Gross Cruise Costs and Net Cruise Costs were calculated as follows (in thousands, except Capacity
Days and per Capacity Day data):

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Total cruise operating expenses $ 336,390 $ 422,380 $ 1,578,481 $ 1,697,019
Marketing, general and
administrative expenses 87,813 86,823 299,827 287,093
Gross Cruise Costs 424,203 509,203 1,878,308 1,984,112
Less:
Commissions, transportation
and other 66,749 94,725 341,936 434,749
Onboard and other 33,208 48,697 182,817 204,768
Net Cruise Costs $ 324,246 $ 365,781 $ 1,353,555 $ 1,344,595

Capacity Days 2,155,454 2,372,204 8,900,816 9,246,715
Gross Cruise Costs per Capacity Day $ 196.80 $ 214.65 $ 211.03 $ 214.57
Net Cruise Costs per Capacity Day $ 150.43 $ 154.19 $ 152.07 $ 145.41

NORWEGIAN CRUISE LINE
NON-GAAP RECONCILING INFORMATION
(unaudited)

Operating income excluding impairment losses was calculated as follows (in thousands):

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Operating (loss) income $ (163,650 ) $ (51,672 ) $ (63,247 ) $ 42,214
Impairment loss 128,775 - 128,775 2,565
Operating (loss) income, excluding impairment losses $ (34,875 ) $ (51,672 ) $ 65,528 $ 44,779

Net loss excluding impairment losses was calculated as follows (in thousands):

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Net loss $ (210,986 ) $ (133,006 ) $ (211,803 ) $ (226,962 )
Impairment loss 128,775 - 128,775 2,565
Net loss, excluding impairment losses $ (82,211 ) $ (133,006 ) $ (83,028 ) $ (224,397 )

EBITDA and Pro Forma EBITDA were calculated as follows (in thousands):

Three months ended Years ended
December 31, December 31,
2008 2007 2008 2007

Net Loss $ (210,986 ) $ (133,006 ) $ (211,803 ) $ (226,962 )
Less:
Interest income (831 ) (262 ) (2,796 ) (1,384 )
Plus:
Interest expense, net of capitalized interest 35,089 50,926 152,364 175,409
Depreciation and amortization expenses 41,522 41,005 162,565 148,003
Other expenses (income), net 13,041 30,553 (1,024 ) 95,256
Impairment loss 128,775 - 128,775 2,565
EBITDA 6,610 (10,784 ) 228,081 192,887

Restructuring Charges and Pro Forma Adjustments 28,796 - 72,007 -

Pro Forma EBITDA $ 35,406 $ (10,784 ) $ 300,088 $ 192,887

Norwegian Cruise Line, Miami
Media Relations:
AnneMarie Mathews, 305-436-4713
PublicRelations@ncl.com
or
Investor Relations:
Mark A. Kempa, 305-436-4932

Copyright Business Wire 2009