STAR CRUISES GROUP ANNOUNCES FULL YEAR RESULTS FOR 2008

The below commentary is prepared based on the comparison of the results for 2008 and 2007 of Star Cruises Group (excluding NCL Corporation Ltd. and its subsidiaries (“NCLC Group”)). NCLC ceased to be a subsidiary of Star Cruises Limited (the “Company”) and became a 50% jointly controlled entity on 7 January 2008 following the completion of the deemed disposal arising from the US$1 billion subscription of new shares in NCLC by Apollo Management, L.P. (“Apollo”) and its affiliates.

Key points for the year in comparison with year 2007:

• Capacity increased by 10.0% from 2.3 million to 2.5 million capacity days
• Net revenue decreased by 0.8%, net revenue yield decreased by 7.8%
• Ship operating expenses per capacity day increased by 8.4%. Ship operating expenses excluding fuel costs per capacity day increased by 3.1%
• Selling, general and administrative expenses (“SG&A”) per capacity day increased by 12.5%. SG&A per capacity day excluding one-off payment to a former director of the Company decreased by 1.6%
• Operating loss before impairment loss was US$15.6 million, versus an operating profit before impairment loss of US$35.2 million

Star Cruises Group (excluding NCLC Group)

Net revenue for 2008 decreased 0.8% from 2007 primarily due to lower net revenue yield and occupancy level of 7.8% and 3.2 percentage points, respectively, partially offset by an increase in capacity of 10.0%. The decrease in net revenue yield was mainly a result of lower gaming hold percentage onboard the ships. The increase in capacity in 2008 was primarily due to the addition of m.v. SuperStar Aquarius which commenced operations in June 2007 partially offset by the non-operation of m.v. Wasa Queen and m.v. MegaStar Taurus since October and November 2008, respectively. The occupancy was at 84.5% in 2008 compared with 87.7% in 2007.

Ship operating expenses per capacity day for 2008 increased 8.4% compared with 2007 primarily due to higher fuel costs and the ensuing costs of operating and maintaining the ships out of service, partially offset by the lower charter hire fees incurred for certain ships. Charter hire fees was lower year-on-year due to the redelivery of m.v. Norwegian Crown and m.v. Marco Polo to their new owners in November 2007 and March 2008, respectively, partially offset by the charter hire fees for m.v. SuperStar Gemini and m.v. Norwegian Majesty. In 2008, fuel costs increased approximately US$18.9 million compared to 2007 with the average fuel price increasing approximately 35%. Fuel costs accounted for approximately 24.7% of ship operating expenses in 2008 compared to 20.9% in 2007.

SG&A expenses per capacity day for 2008 increased 12.5% compared with 2007 primarily due to the consideration of US$10.0 million paid to a former director of the Company in accordance with the terms of the Non-Competitive Agreement.

Depreciation and amortisation expenses per capacity day in 2008 decreased 20.8% compared to 2007 primarily due to the cessation of depreciation for vessels classified as non-current assets held for sale in 2008 as well as the disposal of m.v. Marco Polo and m.v. SuperStar Gemini in July and October 2007, respectively.

A net impairment loss of US$99.9 million in respect of the ships and equipment as well as leasehold land and buildings was recorded in 2008 following the completion of the annual impairment assessment performed by the Group. In 2007, a net impairment loss of US$2.6 million was recorded.

On 31 March 2009, the Group entered into an agreement with a financial institution for a facility of up to US$25 million to finance a certain portion of land premium and as working capital of a subsidiary.

Prospects

The collaborative arrangements with Alliance Global Group, Inc. on the development and operation of hotel and casino complexes in the Philippines is a key strategic move made by the Group in transforming into a land-based leisure and entertainment operator. Capitalising on the success of the existing cruise business, the Group is on target in offering the customers leisure varieties across the region and thus enhancing customer satisfaction.

With the worsening global economic situation, the Group has taken various steps in consolidating its resources and improving efficiency to maintain its competitive edge, including seeking opportunities to divest the non-core assets as well as organisational rationalisation, and will continue to work on improving the quality of earnings to further enhance shareholders’ value.

NCLC Group

The commentary below is prepared based on NCLC Group’s US GAAP financial statements. Net revenue increased 2.9% in 2008 compared to 2007 primarily due to a 6.9% increase in net revenue yield partially offset by a 3.7% decrease in capacity days. The increase in net revenue yield in 2008 was primarily the result of higher passenger ticket pricing and onboard and other revenues. The decrease in capacity days was the result of the departure of m.v. Norwegian Wind, m.v. Norwegian Crown, m.v. Marco Polo and m.v. Norwegian Dream which left the fleet upon expiration of the relevant charter agreements in April 2007, November 2007, March 2008 and November 2008, respectively, as well as the re-flagging of m.v. Pride of Aloha which was withdrawn from the fleet in May 2008 and launched as m.v. Norwegian Sky in July 2008. This decline in capacity was partially offset by the addition of m.v. Norwegian Gem which entered the fleet in October 2007. The increase in onboard and other revenues was primarily due to increased revenues from the gaming operations and art concessionaire. Press Release: Star Cruises Group Announces Full Year Results for 2008 Page 4 of 6 Ship operating expenses per capacity day for 2008 increased 3.5% compared with 2007. This increase was mainly due to higher fuel expenses partially offset by lower payroll and related expenses. Average fuel prices, including the impact of fuel swaps, increased 41.5% to US$561 per metric ton in 2008 from US$396 per metric ton in 2007. Lower payroll and related expenses resulted from the re-flagging and redeployment of m.v. Pride of Hawai’i and m.v. Pride of Aloha from the Hawaii market to international fleet.

SG&A expenses per capacity day for 2008 increased 8.5% compared with 2007 mainly due to additional professional fees incurred primarily in connection with legal costs and management consulting projects.

Depreciation and amortisation expenses increased 9.8%, compared to 2007. The increase was primarily due to the addition of m.v. Norwegian Gem which entered service in October 2007.

In 2008, an impairment loss was recorded in NCLC Group’s consolidated income statement as a result of the cancellation of a contract to build a ship in the amount of US$128.8 million. These costs include payments to the shipyard, loan and deferred financing fees and capitalised interest. In 2007, NCLC finalised the sale of Oceanic, formerly known as Independence and in order to reflect the asset at its net realisable value, NCLC Group recorded an impairment loss of US$2.6 million in its consolidated income statement.

Terminology

• Net revenue yield represents total revenues less commissions, transportation and other expenses and onboard and other expenses per Capacity Day.
• Ship operating expenses represent operating expenses excluding commissions, transportation and other expenses and onboard and other expenses. NCLC Group, reporting under US GAAP, accounts for dry-docking costs under the direct expense method and these costs are classified as ship operating expenses. Under HKFRS, the dry-docking costs are included as a separate component of the ship costs to be amortised to the subsequent dry-docking generally every 2 to 3 years in the depreciation and amortisation.
• Capacity Days represent double occupancy per cabin multiplied by the number of cruise days for the period.
• Passenger Cruise Days represent the number of passengers carried for the period, multiplied by the number of days in their respective cruises.
• 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.

ABOUT STAR CRUISES GROUP
Star Cruises, the leading cruise liner in Asia-Pacific and together with its jointly controlled entities, NCLC, is the third largest cruise operator in the world, currently having a combined fleet of 16 ships offering close to 30,000 lower berths. NCLC is presently building Norwegian Epic, a new third generation Freestyle Cruising ship, for delivery in 2010. The fleet cruises to over 200 destinations and islands in Asia-Pacific, North and South America, Hawaii, Caribbean, Alaska, Europe, Mediterranean and Bermuda under Star Cruises and Norwegian Cruise Line. Headquartered in Hong Kong, Star Cruises is represented in more than 20 locations worldwide with offices and representatives in Australia, China, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Sweden, Taiwan, Thailand, United Arab Emirates, United Kingdom and the United States of America.

Star Cruises