Revenues for the second quarter of 2007 increased 10.0% on a 13.6% increase in Capacity Days partially offset by a 2.5% decrease in Net Yields. The decrease in Net Yields continues to be primarily driven by weakness in ticket pricing for the Company's Hawaii business, as well as lower onboard revenues. Gross Yields decreased 3.1% from the second quarter of 2006. Occupancy for the second quarter of 2007 was 107.5% compared to 107.3% in the same quarter of 2006.

Net Cruise Costs per Capacity Day for the second quarter of 2007 decreased 6.5% compared to the same period in the prior year. The decrease in these costs was primarily attributable to lower payroll and related costs, particularly related to the Company's Hawaii operations, lower fuel costs, and the timing of dry-docks. Also recorded in the second quarter of 2007 was $3.5 million of insurance proceeds related to a previous year's claim. During the quarter, average fuel prices, including the impact of fuel hedges, decreased 2.4% to $362 per metric ton from $371 per metric ton in the second quarter of 2006. Gross Cruise Costs per Capacity Day decreased 5.9% compared to the second quarter of 2006.

The Company continues to feel the effect of rising interest rates and the weakening of the US Dollar versus the Euro. As a result of an increase in average outstanding borrowings following the deliveries of Pride of Hawai'i and Norwegian Pearl, interest expense (net of interest income) increased approximately 25% to $40.8 million in the second quarter of 2007 from $32.5 million in the second quarter of 2006. With the Dollar/Euro exchange rate weakening to 1.3542 as of June 30, 2007, the Company reported a non-cash foreign exchange translation loss primarily related to marking-to-market of the Company's Euro-denominated debt of $12.5 million. During the second quarter of 2006, the Company reported non-cash foreign exchange losses of $22.3 million.

In the second half of the year the Company continues to experience pricing pressure in its Hawaii trade but the Caribbean trade has stabilized. Demand for the summer has been strong, particularly in Europe.

"Our second quarter results reflect the challenges we continue to face in Hawaii," said Colin Veitch, president and chief executive officer of NCL Corporation Ltd. "However, as we look out to 2008 we have positive indications that the measures we have implemented thus far are beginning to work. These indications, the success of our newbuilding program and our new shareholder and related equity investment makes it a very exciting time at NCL Corporation."