For Immediate Release                             

                                 15 April 2003                                 

                           P&O Princess Cruises plc                            

                   Release of Carnival Corporation Form 10-Q                   

Carnival Corporation ("Carnival") has informed P&O Princess Cruises plc ("P&O
Princess") that, following the close of business yesterday in the UK, Carnival
filed with the US Securities and Exchange Commission ("SEC") its quarterly
report on Form 10-Q (the "10-Q") for the quarter ended 28 February 2003. The
schedule to this announcement contains Part I of the 10-Q.

P&O Princess is issuing this notice of the filing in accordance with the
requirements of the UK Listing Authority, following P&O Princess'
recommendation of the proposed dual listed company combination with Carnival.

The full 10-Q (including the portion extracted for this announcement) is
available for viewing on the SEC website at www.sec.gov and on the Carnival
website at www.carnivalcorp.com. In addition, a full copy of the 10-Q will be
available for inspection at the Document Viewing Facility at the Financial
Services Authority, 25 The North Colonnade, London E14 5HS.

                                   - Ends -                                    

Following the announcements of 8 January 2003 concerning the agreed DLC
transaction between P&O Princess and Carnival, Carnival is now acting as if it
is subject to the continuing obligation rules of the UK Listing Authority. As
such, P&O Princess is required by the UK Listing Authority to notify the
Company Announcements Office of all announcements and filings made by Carnival
prior to completion of the DLC transaction.

The directors of Carnival accept responsibility for the information contained
in this announcement. To the best of the knowledge and belief of the directors
of Carnival (who have taken all reasonable care to ensure such is the case),
the information contained within this announcement for which they accept
responsibility is in accordance with the facts and does not omit anything
likely to affect the import of such information.

Merrill Lynch International and UBS Limited, a subsidiary of UBS AG, are acting
as joint financial advisors and joint corporate brokers exclusively to Carnival
and no-one else in connection with the Carnival DLC transaction and the Partial
Share Offer and will not be responsible to anyone other than Carnival for
providing the protections afforded to clients respectively of Merrill Lynch
International and UBS Limited. as the case may be or for providing advice in
relation to the Carnival DLC transaction and the Partial Share Offer.

Citigroup Global Markets Limited ("Citigroup") and Credit Suisse First Boston
(Europe) Limited are acting for P&O Princess and no one else in connection with
the matters referred to herein and will not be responsible to any other person
for providing the protections afforded to clients of Citigroup or Credit Suisse
First Boston (Europe) Limited or for providing advice in relation to the
matters referred to herein.

                                   SCHEDULE                                    

Set out below is the text of Part I of the 10-Q filed by Carnival yesterday
(which has been extracted from the 10-Q as filed with the SEC):

                         PART I FINANCIAL INFORMATION                          

Item 1. Financial Statements.

                             CARNIVAL CORPORATION                              

                     CONSOLIDATED STATEMENTS OF OPERATIONS                     

                                  (UNAUDITED)                                  

                   (in thousands, except earnings per share)                   

                                               Three Months Ended
                                                      February 28
                                                                 
                                                 2003        2002
                                                                 
Revenues                                   $1,031,105    $906,531
                                                                 
                                           __________  __________
                                                                 
Costs and Expenses                                               
                                                                 
Operating                                     615,194     519,562
                                                                 
Selling and administrative                    177,118     151,403
                                                                 
Depreciation and amortization                 106,483      89,754
                                                                 
                                           __________  __________
                                                                 
                                              898,795     760,719
                                                                 
                                           __________  __________
                                                                 
Operating Income                              132,310     145,812
                                                                 
                                           __________  __________
                                                                 
Nonoperating (Expense) Income                                    
                                                                 
Interest income                                 4,229       6,663
                                                                 
Interest expense, net of capitalized         (29,392)    (29,455)
interest                                                         
                                                                 
Other income, net                              14,729       4,959
                                                                 
                                           __________  __________
                                                                 
                                             (10,434)    (17,833)
                                                                 
                                           __________  __________
                                                                 
Income Before Income Taxes                    121,876     127,979
                                                                 
Income Tax Benefit, Net                         5,003       1,661
                                                                 
                                           ==========  ==========
                                                                 
Net Income                                  $ 126,879   $ 129,640
                                                                 
Earnings Per Share                                               
                                                                 
Basic                                           $0.22       $0.22
                                                                 
                                           ==========  ==========
                                                                 
Diluted                                         $0.22       $0.22
                                                                 
                                           ==========  ==========

The accompanying notes are an integral part of these consolidated financial
statements.

                                                                               
                             CARNIVAL CORPORATION                              

                          CONSOLIDATED BALANCE SHEETS                          

                                  (UNAUDITED)                                  

                       (in thousands, except par value)                        

                                          February 28 November 30
                                                                 
                                                 2003        2002
                                                                 
ASSETS                                                           
                                                                 
Current Assets                          $             $          
                                                                 
Cash and cash equivalents                     732,919     666,700
                                                                 
Short-term investments                         37,575      39,005
                                                                 
Accounts receivable, net                      110,132     108,327
                                                                 
Inventories                                    95,410      91,310
                                                                 
Prepaid expenses and other                    178,675     148,420
                                                                 
Fair value of derivative contracts             58,324            
                                                                 
Fair value of hedged firm commitments           9,702      78,390
                                                                 
                                           __________  __________
                                                                 
Total current assets                        1,222,737   1,132,152
                                                                 
                                           __________  __________
                                                                 
Property and Equipment, Net                10,238,832  10,115,404
                                                                 
Goodwill                                      706,490     681,056
                                                                 
Other Assets                                  314,775     297,175
                                                                 
Fair Value of Hedged Firm Commitments          10,284     109,061
                                                                 
                                           __________  __________
                                                                 
                                          $12,493,118 $12,334,848
                                                                 
                                           ==========  ==========
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY                             
                                                                 
Current Liabilities                     $             $          
                                                                 
Short-term borrowings                          70,000            
                                                                 
Current portion of long-term debt             156,744     154,633
                                                                 
Accounts payable                              304,938     268,687
                                                                 
Accrued liabilities                           277,444     290,391
                                                                 
Customer deposits                             728,998     770,637
                                                                 
Dividends payable                              61,632      61,612
                                                                 
Fair value of derivative contracts             10,944      73,846
                                                                 
Fair value of hedged firm commitments          52,549            
                                                                 
                                           __________  __________
                                                                 
Total current liabilities                   1,663,249   1,619,806
                                                                 
                                           __________  __________
                                                                 
Long-Term Debt                              3,083,621   3,013,758
                                                                 
Deferred Income and Other Long-Term           190,003     170,814
Liabilities                                                      
                                                                 
Fair Value of Derivative Contracts             19,213     112,567
                                                                 
Commitments and Contingencies (Notes 4                           
and 5)                                                           
                                                                 
Shareholders' Equity                                             
                                                                 
Common stock; $.01 par value; 960,000                            
shares                                                           
                                                                 
authorized; 586,973 shares at 2003 and                           
                                                                 
586,788 shares at 2002 issued and               5,870       5,868
outstanding                                                      
                                                                 
Additional paid-in capital                  1,093,230   1,089,125
                                                                 
Retained earnings                           6,391,097   6,325,850
                                                                 
Unearned stock compensation                  (12,733)    (11,181)
                                                                 
Accumulated other comprehensive income         59,568       8,241
                                                                 
                                           __________  __________
                                                                 
Total shareholders' equity                  7,537,032   7,417,903
                                                                 
                                           __________  __________
                                                                 
                                          $12,493,118 $12,334,848

The accompanying notes are an integral part of these consolidated financial
statements.

                                                                               
                             CARNIVAL CORPORATION                              

                     CONSOLIDATED STATEMENTS OF CASH FLOWS                     

                                  (UNAUDITED)                                  

                                (in thousands)                                 

                                      Three Months Ended February
                                                               28
                                                                 
                                                 2003        2002
                                                                 
OPERATING ACTIVITIES                 $                $          
                                                                 
Net income                                    126,879     129,640
                                                                 
Adjustments to reconcile net income                              
to                                                               
                                                                 
net cash provided by operating                                   
activities                                                       
                                                                 
Depreciation and amortization                 106,483      89,754
                                                                 
Accretion of original issue discount            5,009       4,822
                                                                 
Other                                         (3,505)         911
                                                                 
Changes in operating assets and                                  
liabilities                                                      
                                                                 
Decrease (increase) in                                           
                                                                 
Receivables                                     1,512    (17,593)
                                                                 
Inventories                                   (2,988)       1,627
                                                                 
Prepaid expenses and other                   (26,427)    (31,280)
                                                                 
Increase (decrease) in                                           
                                                                 
Accounts payable                               27,193       1,817
                                                                 
Accrued and other liabilities                (19,379)    (25,082)
                                                                 
Customer deposits                            (43,966)      60,287
                                                                 
                                           __________  __________
                                                                 
Net cash provided by operating                170,811     214,903
activities                                                       
                                                                 
                                           __________  __________
                                                                 
INVESTING ACTIVITIES                                             
                                                                 
Additions to property and equipment,        (112,137)   (443,393)
net                                                              
                                                                 
Proceeds from retirement of property           30,919       1,632
and equipment                                                    
                                                                 
Other, net                                    (4,484)     (4,802)
                                                                 
                                           __________  __________
                                                                 
Net cash used in investing                   (85,702)   (446,563)
activities                                                       
                                                                 
                                           __________  __________
                                                                 
FINANCING ACTIVITIES                                             
                                                                 
Proceeds from issuance of debt                148,238      37,560
                                                                 
Principal repayments of debt                (109,485)     (9,729)
                                                                 
Dividends paid                               (61,613)    (61,548)
                                                                 
Proceeds from issuance of common                1,267       1,556
stock, net                                                       
                                                                 
Other                                             (1)       (173)
                                                                 
                                           __________  __________
                                                                 
Net cash used in financing                   (21,594)    (32,334)
activities                                                       
                                                                 
                                           __________  __________
                                                                 
Effect of exchange rate changes on                               
cash                                                             
                                                                 
and cash equivalents                            2,704       4,340
                                                                 
                                           __________  __________
                                                                 
Net increase (decrease) in cash and                              
                                                                 
cash equivalents                               66,219   (259,654)
                                                                 
Cash and cash equivalents at                                     
beginning                                                        
                                                                 
of period                                     666,700   1,421,300
                                                                 
                                           __________  __________
                                                                 
Cash and cash equivalents at end of         $ 732,919  $1,161,646
period                                                           
                                                                 
                                           ==========   =========

The accompanying notes are an integral part of these consolidated financial
statements.


                             CARNIVAL CORPORATION                              

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                   

                                  (UNAUDITED)                                  

NOTE 1 - Basis of Presentation

The accompanying financial statements have been prepared, without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Carnival Corporation, together with its consolidated subsidiaries,
is referred to collectively in these consolidated financial statements and
elsewhere in this Form 10-Q as "our," "us" and "we."

The accompanying consolidated balance sheet at February 28, 2003 and the
consolidated statements of operations and cash flows for the three months ended
February 28, 2003 and 2002 are unaudited and, in the opinion of our management,
contain all adjustments, consisting of only normal recurring adjustments,
necessary for a fair presentation. These interim consolidated financial
statements should be read in conjunction with the audited consolidated
financial statements and the related notes included in our 2002 Annual Report
on Form 10-K.

Our operations are seasonal and results for interim periods are not necessarily
indicative of the results for the entire year. Reclassifications have been made
to prior period amounts to conform to the current period presentation.

NOTE 2 - Property and Equipment

Property and equipment consisted of the following (in thousands):

                                          February 28 November 30
                                                                 
                                                 2003        2002
                                                                 
                                     $                $          
                                                                 
Ships                                      10,799,551  10,665,958
                                                                 
Ships under construction                      788,886     712,447
                                                                 
                                           __________  __________
                                                                 
                                           11,588,437  11,378,405
                                                                 
Land, buildings and improvements,                                
                                                                 
and port facilities                           328,061     314,448
                                                                 
Transportation equipment and other            418,231     409,310
                                                                 
                                           __________  __________
                                                                 
Total property and equipment               12,334,729  12,102,163
                                                                 
Less accumulated depreciation and                                
                                                                 
amortization                              (2,095,897) (1,986,759)
                                                                 
                                          $10,238,832 $10,115,404
                                                                 
                                            =========  ==========

Capitalized interest, primarily on our ships under construction, amounted to $9
million and $8 million for the three months ended February 28, 2003 and 2002,
respectively.

NOTE 3 - Debt

Short-term borrowings consisted of unsecured fixed rate notes, bearing interest
at libor plus 0.15% (1.5% weighted-average interest rate at February 28, 2003),
payable to a bank through May 2003.


Long-term debt consisted of the following (in thousands):

                                          February 28 November 30
                                                                 
                                              2003(a)     2002(a)
                                                                 
Euro floating rate note,                                         
collateralized by                                                
                                                                 
one Costa Cruises ("Costa")ship,                                 
bearing                                                          
                                                                 
interest at euribor plus 0.5% (4.0%                              
at February                                                      
                                                                 
28, 2003 and November 30, 2002), due $                $          
through                                                          
                                                                 
2008                                          117,664     118,727
                                                                 
Unsecured fixed rate notes, bearing                              
interest                                                         
                                                                 
at stated rates ranging from 6.15%                               
to 7.7%,                                                         
                                                                 
due through 2028(b)                           856,309     856,680
                                                                 
Unsecured floating rate euro notes,                              
bearing                                                          
                                                                 
interest at rates ranging from                                   
euribor plus                                                     
                                                                 
0.35% to euribor plus 0.53% (3.1% to                             
3.4% and                                                         
                                                                 
3.6% to 4.0% at February 28, 2003                                
and November                                                     
                                                                 
30, 2002, respectively), due 2005             772,021     680,377
and 2006                                                         
                                                                 
Unsecured fixed rate euro notes,                                 
bearing                                                          
                                                                 
interest at 5.57%, due in 2006                324,040     297,195
                                                                 
Unsecured $1.4 billion revolving                                 
credit facility,                                                 
                                                                 
bearing interest at libor plus 0.17%                             
(1.6% at                                                         
                                                                 
November 30, 2002), due in 2006                            50,000
                                                                 
Other                                          44,457      44,468
                                                                 
Unsecured 2% convertible notes, due           600,000     600,000
in 2021                                                          
                                                                 
Unsecured zero-coupon convertible                                
notes, net of                                                    
                                                                 
discount, with a face value of $1.05                             
billion,                                                         
                                                                 
due in 2021                                   525,874     520,944
                                                                 
                                           __________  __________
                                                                 
                                            3,240,365   3,168,391
                                                                 
Less portion due within one year            (156,744)   (154,633)
                                                                 
                                           __________  __________
                                                                 
                                           $3,083,621  $3,013,758
                                                                 
                                           ==========  ==========
                                                                 

(a)   All borrowings are in U.S. dollars unless otherwise noted. 
      Euro denominated notes have been translated to U.S. dollars
      at the period end exchange rates.                          
                                                                 
(b)   These notes are not redeemable prior to maturity. We have  
      entered into two interest rate swap agreements, which      
      mature in 2003 and 2004, and effectively convert $225      
      million of this fixed rate debt to variable rate debt.     
                                                                 
      At February 28, 2003, we were in compliance with all of our
      debt covenants.                                            

NOTE 4 - Commitments

Ship Commitments

A description of our ships under contract for construction at February 28, 2003
was as follows (in millions, except passenger capacity data):

Ship              Expected      Shipyard     Passenger       Estimated
                                                                      
                   Service                  Cpacity(2)           Total
                                                                      
                   Date(1)                                     Cost(3)
                                                                      
Carnival Cruise                                        $              
Lines                                                                 
                                                                      
("CCL")                                                               
                                                                      
Carnival Glory        7/03   Fincantieri         2,974             510
                                                                      
Carnival Miracle      3/04    Masa-Yards         2,124             375
                                     (4)                              
                                                                      
Carnival Valor       11/04   Fincantieri         2,974             510
                                     (4)                              
                                                                      
Carnival Liberty      8/05   Fincantieri         2,974             460
                                                                      
                                            __________      __________
                                                                      
Total CCL                                       11,046           1,855
                                                                      
                                            __________      __________
                                                                      
Holland America                                                       
Line                                                                  
                                                                      
("HAL")                                                               
                                                                      
Oosterdam             8/03   Fincantieri         1,848             410
                                     (4)                              
                                                                      
Westerdam             5/04   Fincantieri         1,848             410
                                     (4)                              
                                                                      
Newbuild             11/05   Fincantieri         1,848             410
                                     (4)                              
                                                                      
Newbuild              6/06   Fincantieri         1,848             390
                                                                      
                                            __________      __________
                                                                      
Total Holland                                    7,392           1,620
America                                                               
                                                                      
                                            __________      __________
                                                                      
Costa                                                                 
                                                                      
Costa                 6/03    Masa-Yards         2,114             390
Mediterranea                         (5)                              
                                                                      
Costa Fortuna        12/03   Fincantieri         2,720             480
                                     (5)                              
                                                                      
Costa Magica         11/04   Fincantieri         2,720             500
                                     (5)                              
                                                                      
                                            __________      __________
                                                                      
Total Costa                                      7,554           1,370
                                                                      
                                            __________      __________
                                                                      
Cunard Line                                                           
("Cunard")                                                            
                                                                      
Queen Mary 2          1/04  Chantiers de         2,620             780
                                                                      
                            l'Atlantique                              
                                     (4)                              
                                                                      
Queen Victoria        2/05   Fincantieri         1,968             410
                                     (4)                              
                                                                      
                                            __________      __________
                                                                      
Total Cunard                                     4,588           1,190
                                                                      
                                            __________      __________
                                                                      
Total                                           30,580          $6,035
                                                                      
                                            ==========      ==========


(1)   The expected service date is the date the ship is currently     
      expected to begin its first revenue generating cruise.          
                                                                      
(2)   In accordance with cruise industry practice, passenger capacity 
      is calculated based on two passengers per cabin even though some
      cabins can accommodate three or more passengers.                
                                                                      
(3)   Estimated total cost of the completed ship includes the contract
      price with the shipyard, design and engineering fees,           
      capitalized interest, construction oversight costs and various  
      owner supplied items.                                           
                                                                      
(4)   These construction contracts are denominated in euros and have  
      been fixed into U.S. dollars through the utilization of forward 
      foreign currency contracts.                                     
                                                                      
(5)   These construction contracts are denominated in euros, which is 
      Costa's functional currency. The estimated total costs have been
      translated into U.S. dollars using the February 28, 2003        
      exchange rate.                                                  

In connection with our ships under contract for construction, we have paid $789
million through February 28, 2003 and anticipate paying $2.5 billion during the
twelve months ending February 28, 2004 and $2.7 billion thereafter.

Proposed Dual-Listed Company Transaction with P&O Princess Cruises plc ("P&O
Princess")

After a series of preconditional offers made to the shareholders of P&O
Princess by us, commencing in December 2001, on January 8, 2003 we entered into
an agreement with P&O Princess, the world's third largest cruise company,
providing for a combination of both companies (the "Combined Group") under a
dual-listed company ("DLC") structure.

If the DLC transaction is completed, it would create a combination of the two
companies through a number of contracts and certain amendments to our Articles
of Incorporation and By-Laws and to P&O Princess' Memorandum and Articles of
Association. The two companies would retain their separate legal identities,
and each company's shares would continue to be publicly traded on the New York
Stock Exchange for us and the London Stock Exchange for P&O Princess. However,
both companies would operate as if they were a single economic enterprise. The
contracts governing the DLC structure would provide that the boards of
directors of the two companies would be identical, the companies would be
managed by a unified senior management team and that, as far as possible, P&O
Princess' and our shareholders would be placed in substantially the same
economic position as if they held shares in a single enterprise which owned all
of the assets of both companies. The net effect of the DLC transaction would be
that our existing shareholders would own an economic interest equal to
approximately 74% of the Combined Group and the existing shareholders of P&O
Princess would own an economic interest equal to approximately 26% of the
Combined Group. Also in connection with the DLC transaction, we will be making
a Partial Share Offer ("PSO") for 20% of P&O Princess' shares, which will
enable P&O Princess shareholders to exchange P&O Princess shares for our shares
on the basis of 0.3004 of our shares for each P&O Princess share up to, in
aggregate, a maximum of 20% of P&O Princess issued share capital. If the
maximum number of P&O Princess' shares are exchanged under the PSO, holders of
our shares, including our new shareholders who exchanged their P&O Princess
shares for our shares under the PSO, would own an economic interest equal to
approximately 79% of the Combined Group and holders of P&O Princess shares
would own an economic interest equal to approximately 21% of the Combined
Group. The PSO is conditional on, among other things, the closing of the DLC
transaction. Upon completion of the DLC transaction, P&O Princess will
reorganize and consolidate its share capital so that one share of P&O Princess
will have the same economic and voting interest as one of our shares. In
addition, P&O Princess and we expect to execute deeds of guarantee under which
each company would guarantee all of the indebtedness and similar obligations of
the other company incurred after the closing date of the DLC transaction.

The completion of the DLC transaction between P&O Princess and us is subject to
approval by P&O Princess' shareholders, who are currently expected to meet on
April 16, 2003 to vote on the approval of the DLC transaction. Our shareholders
met on April 14, 2003 and voted to approve the DLC transaction. If approved by
P&O Princess shareholders, we expect the closing of the DLC transaction to
occur on April 17, 2003. No assurance can be given that the DLC transaction
will be completed and, if it is completed, when completion will take place. If
the DLC transaction is not completed by September 30, 2003, either party can
terminate the agreement if it is not in material breach of its obligations. We
have incurred $34 million of transaction costs as of February 28, 2003, and
continue to incur costs, which have been or will be deferred in connection with
the DLC transaction. In the event a transaction with P&O Princess is not
consummated, we would be required to write off the above $34 million plus all
costs incurred and deferred subsequent to February 28, 2003. If the DLC
transaction or another business combination transaction with P&O Princess is
completed by us, these deferred costs, which are estimated to total
approximately $60 million upon completion, would be capitalized as part of the
transaction.

If our agreement with P&O Princess is terminated under certain circumstances, P
&O Princess would be required to pay us a break fee of $49 million. These
circumstances include, among other things, their Board of Directors withdrawing
or adversely modifying its recommendation to shareholders to approve the DLC
transaction, their Board of Directors recommending an alternative acquisition
proposal to shareholders, or their shareholders failing to approve the DLC
transaction if a third-party acquisition proposal exists at the time of their
meeting or if they breach their exclusivity covenant and a third party
acquisition proposal with respect to them is completed prior to July 2004.

If the DLC transaction is completed, we will account for it as an acquisition
of P&O Princess by us, using the purchase method.

Travel Vouchers

Pursuant to CCL's and Holland America's settlement of litigation, travel
vouchers with face values of $10 to $55 were required to be issued to qualified
past passengers. As of February 28, 2003, approximately $123 million of these
travel vouchers are available to be used for future travel prior to their
expiration, principally in fiscal 2005.

NOTE 5 - Contingencies

Litigation

Three actions (collectively, the "Facsimile Complaints") were filed against us
on behalf of purported classes of persons who received unsolicited
advertisements via facsimile, alleging that we and other defendants distributed
unsolicited advertisements via facsimile in contravention of the U.S. Telephone
Consumer Protection Act. The plaintiffs seek to enjoin the sending of
unsolicited facsimile advertisements and statutory damages. The advertisements
referred to in the Facsimile Complaints were not sent by us, but rather were
distributed by a professional faxing company at the behest of travel agencies
that referenced a CCL product. We do not advertise directly to the traveling
public through the use of facsimile transmission. The ultimate outcome of the
Facsimile Complaints cannot be determined at this time. We believe that we have
meritorious defenses to these claims and, accordingly, we intend to vigorously
defend against these actions.

Several actions filed in the U.S. District Court for the Southern District of
Florida against us and four of our executive officers on behalf of a purported
class of persons who purchased our common stock were consolidated into one
action in Florida (the "Stock Purchaser Complaint"). The plaintiffs have
claimed that statements we made in public filings violated federal securities
laws and seek unspecified compensatory damages and attorney and expert fees and
costs. A magistrate judge recommended that our motion to dismiss the Stock
Purchaser Complaint be granted and that the plaintiffs' amended complaint be
dismissed without prejudice. However, because it was dismissed without
prejudice, the plaintiffs may file a new amended complaint. Nevertheless, in
January 2003 the parties entered into a memorandum of understanding settling
the case pending confirmatory discovery and judicial approval. A substantial
portion of the $3.4 million settlement amount, which includes plaintiffs' legal
fees, will be covered by insurance.

In February 2001, Holland America Line-USA, Inc. ("HAL-USA"), our wholly-owned
subsidiary, received a grand jury subpoena requesting that it produce documents
and records relating to the air emissions from Holland America ships in Alaska.
HAL-USA responded to the subpoena. The ultimate outcome of this matter cannot
be determined at this time.

On August 17, 2002, an incident occurred in Juneau, Alaska onboard Holland
America's Ryndam involving a wastewater discharge from the ship. As a result of
this incident, various Ryndam ship officers have received grand jury subpoenas
from the Office of the U.S. Attorney in Anchorage, Alaska requesting that they
appear before a grand jury. One of the subpoenas also requests the production
of Holland America documents, which Holland America is producing. If the
investigation results in charges being filed, a judgment could include, among
other forms of relief, fines and debarment from federal contracting, which
would prohibit operations in Glacier Bay National Park and Preserve during the
period of debarment. The State of Alaska is separately investigating this
incident. The ultimate outcome of these matters cannot be determined at this
time. However, if Holland America were to lose its Glacier Bay permits we would
not expect the impact on our financial statements to be material to us since we
believe there are additional attractive alternative destinations in Alaska that
can be substituted for Glacier Bay.

Costa has instituted arbitration proceedings in Italy to confirm the validity
of its decision not to deliver its ship, the Costa Classica, to the shipyard of
Cammell Laird Holdings PLC ("Cammell Laird") under a 79 million euro
denominated contract for the conversion and lengthening of the ship. Costa has
also given notice of termination of the contract. It is now expected that the
arbitration tribunal's decision will be made in

mid-2004 at the earliest. In the event that an award is given in favor of
Cammell Laird, the amount of damages, which Costa will have to pay, if any, is
not currently determinable. The ultimate outcome of this matter cannot be
determined at this time.

In the normal course of our business, various other claims and lawsuits have
been filed or are pending against us. Most of these claims and lawsuits are
covered by insurance and, accordingly, the maximum amount of our liability is
typically limited to our self-insurance retention levels. However, the ultimate
outcome of these claims and lawsuits which are not covered by insurance cannot
be determined at this time.

Contingent Obligations

At February 28, 2003, we had contingent obligations totaling $1.06 billion to
participants in lease out and lease back type transactions for three of our
ships. At the inception of the leases, the entire amount of the contingent
obligations was paid by us to major financial institutions to enable them to
directly pay these obligations. Accordingly, these obligations were considered
extinguished, and neither funds nor the contingent obligations have been
included on our balance sheets. We would only be required to make any payments
under these lease contingent obligations in the remote event of nonperformance
by these financial institutions, all of which have long-term credit ratings of
AAA or AA. In addition, we obtained a direct guarantee from another AAA rated
financial institution for $287 million of the above noted contingent
obligations, thereby further reducing the already remote exposure to this
portion of the contingent obligations. If the major financial institutions'
credit ratings fall below AA-, we would be required to move a majority of the
funds from these financial institutions to other highly-rated financial
institutions. If our credit rating falls below BBB, we would be required to
provide a standby letter of credit for $86 million, or alternatively provide
mortgages in the aggregate amount of $86 million on two of our ships.

In the unlikely event that we were to terminate the three lease agreements
early or default on our obligations, we would, as of February 28, 2003 have to
pay a total of $168 million in stipulated damages. As of February 28, 2003,
$132 million of standby letters of credit have been issued by a major financial
institution in order to provide further security for the payment of these
contingent stipulated damages. An additional standby letter of credit of $45
million will be required to be issued if both Moody's Investors Service and
Standard and Poor's credit ratings of our debt fall to A3 and A-, respectively.
Between 2017 and 2022, we have the right to exercise options that would
terminate these transactions at no cost to us. As a result of entering into
these three transactions we received $67 million, which was recorded as
deferred income on our balance sheets and is being amortized to nonoperating
income through 2022. In the event we were to default under our $1.4 billion
revolving credit facility, we would be required to post cash collateral to
support the stipulated damages standby letters of credit.

NOTE 6 - Shareholders' Equity

Our Articles of Incorporation authorize our Board of Directors, at their
discretion, to issue up to 40 million shares of our preferred stock. At
February 28, 2003 and November 30, 2002, no preferred stock had been issued.

During the three months ended February 28, 2003 and 2002, we declared cash
dividends of $.105 per share each period, or an aggregate of $62 million in
each period.

NOTE 7 - Comprehensive Income

Comprehensive income was as follows (in thousands):

                                      Three Months Ended February
                                                              28,
                                                                 
                                                 2003        2002
                                                                 
                                     $                $          
                                                                 
Net income                                    126,879     129,640
                                                                 
Foreign currency translation                                     
                                                                 
adjustment, net                                54,558     (8,156)
                                                                 
Unrealized (losses) gains on                                     
                                                                 
marketable securities, net                    (1,137)       2,433
                                                                 
Changes related to cash flow                                     
                                                                 
derivative hedges                             (2,094)       4,579
                                                                 
                                           __________  __________
                                                                 
Total comprehensive income                   $178,206    $128,496
                                                                 
                                           ==========  ==========


NOTE 8 - Segment Information

Our cruise segment included six cruise brands, which have been aggregated as a
single reportable segment based on the similarity of their economic and other
characteristics. Cruise revenues are comprised of sales of passenger cruise
tickets, which includes accommodations, meals and most onboard activities, in
some cases the sale of air transportation to and from our cruise ships, and the
sale of certain onboard activities and other services. The tour segment
represents the transportation, hotel and tour operations of Holland America
Tours ("Tours").

Selected segment information was as follows (in thousands):

                            Three Months Ended February 28,           
                                                                      
                           2003(a)                  2002(a)(b)        
                                                                      
                       Revenues    Operating     Revenues    Operating
                                                                      
                                      Income                    Income
                                                                      
                                      (loss)                    (loss)
                                                                      
                  $             $            $            $           
                                                                      
Cruise                1,027,475      143,557      901,263     $156,983
                                                                      
Tour                      5,519     (11,247)        5,706     (11,171)
                                                                      
Intersegment            (1,889)                     (438)             
elimination                                                           
                                                                      
                     __________   __________   __________   __________
                                                                      
                     $1,031,105     $132,310     $906,531     $145,812
                                                                      
                     ==========   ==========   ==========   ==========


(a)   Tour revenues included intersegment revenues, which primarily   
      represent billings by the tour segment to the cruise segment for
      providing port hospitality services to cruise passengers.       
                                                                      
(b)   Revenue amounts in 2002 have been reclassified to conform to the
      2003 presentation. In addition, in 2003 we commenced allocating 
      all corporate expenses to our cruise segment. Accordingly, the  
      2002 presentation has been restated to allocate, the previously 
      unallocated, 2002 corporate expenses to our cruise segment.     

NOTE 9 - Earnings Per Share

Our basic and diluted earnings per share were computed as follows (in
thousands, except per share data):

                                      Three Months Ended February
                                                               28
                                                                 
                                                 2003        2002
                                                                 
                                     $                $          
                                                                 
Net income                                    126,879     129,640
                                                                 
Weighted-average common shares                                   
                                                                 
outstanding                                   586,895     586,268
                                                                 
Dilutive effect of stock plans                    885       1,471
                                                                 
                                           __________  __________
                                                                 
Dilutive weighted-average shares                                 
                                                                 
Outstanding                                   587,780     587,739
                                                                 
                                           ==========  ==========
                                                                 
Basic earnings per share                        $0.22       $0.22
                                                                 
                                                 ====        ====
                                                                 
Diluted earnings per share                      $0.22       $0.22
                                                                 
                                                 ====        ====

Our diluted earnings per share computation for the three months ended February
28, 2003 and 2002 did not include 32.7 million shares of our common stock
issuable upon conversion of our 2% Notes and Zero-Coupon Notes, as this common
stock was not issuable under the contingent conversion provisions of these debt
instruments.

NOTE 10 - Recent Accounting Pronouncements

In November 2002, Financial Accounting Standards Board Interpretation ("FIN")
No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantors,
Including Indirect Guarantees of Indebtedness of Others" was issued. FIN No. 45
requires that upon issuance of a guarantee, the guarantor must recognize a
liability for the fair value of the obligation it assumes under the guarantee.
Guarantors will also be required to meet expanded disclosure obligations. The
initial recognition and measurement provisions of FIN No. 45 are effective for
guarantees issued or modified after December 31, 2002. The disclosure
requirements are effective for annual and interim financial statements that end
after December 15, 2002. We have adopted FIN No. 45 in the first quarter of
2003 and such adoption did not materially affect our financial statement
disclosures.

In December 2002, Statement of Financial Accounting Standards ("SFAS") No. 148,
"Accounting for Stock-Based Compensation-Transition and Disclosure-an amendment
of SFAS No. 123" was issued. SFAS No. 148 amends SFAS No. 123, "Accounting for
Stock-Based Compensation," to provide alternative methods of transition for a
voluntary change to the fair value based method of accounting for stock-based
employee and director compensation. In addition, this statement amends the
disclosure requirements of SFAS No. 123 to require prominent disclosures in
both annual and interim financial statements about the method of accounting for
stock-based employee compensation and the effect of the method used on reported
results. SFAS No. 148 is effective for annual financial statements for fiscal
years ending after December 15, 2002 and for interim financial statements
commencing after such date. We will adopt SFAS No. 148 in our Quarterly Report
on Form 10-Q for the quarter ending May 31, 2003.


Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

Cautionary Note Concerning Factors That May Affect Future Results

Certain statements contained in this "Management's Discussion and Analysis of
Financial Condition and Results of Operations," and elsewhere in this Form 10-Q
are "forward-looking statements" that involve risks, uncertainties and
assumptions with respect to us, including certain statements concerning future
results, plans and goals and other events which have not yet occurred. These
statements are intended to qualify for the safe harbors from liability provided
by Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934. You can find many (but not all) of these
statements by looking for words like "will," "may," "believes," "expects,"
"anticipates," "forecast," "future," "intends," "plans," and "estimates" and
for similar expressions.

Because forward-looking statements, including those which may impact the
forecasting of our net revenue yields, booking levels, pricing, occupancy,
operating, financing and tax costs, estimates of ship depreciable lives and
residual values or business prospects, involve risks and uncertainties, there
are many factors that could cause our actual results, performance or
achievements to differ materially from those expressed or implied in this
Quarterly Report on Form 10-Q. These factors include, but are not limited to,
the following:

-     general economic and business conditions, which may impact      
      levels of disposable income of consumers and the net revenue    
      yields for our cruise brands;                                   
                                                                      
-     conditions in the cruise and land-based vacation industries,    
      including competition from other cruise ship operators and      
      providers of other vacation alternatives and increases in       
      capacity offered by cruise ship and land-based vacation         
      alternatives;                                                   
                                                                      
-     the impact of operating internationally;                        
                                                                      
-     the international political and economic climate, armed         
      conflict, terrorist attacks, availability of air service and    
      other world events and adverse publicity and their impact on the
      demand for cruises;                                             
                                                                      
-     ccidents and other incidents at sea affecting the health,       
      safety, security and vacation satisfaction of passengers;       
                                                                      
-     our ability to implement our shipbuilding programs and brand    
      strategies and to continue to expand our businesses worldwide;  
                                                                      
-     our ability to attract and retain shipboard crew and maintain   
      good relations with employee unions;                            
                                                                      
-     our ability to obtain financing on terms that are favorable or  
      consistent with our expectations;                               
                                                                      
-     the impact of changes in operating and financing costs,         
      including changes in foreign currency and interest rates and    
      fuel, food, insurance and security costs;                       
                                                                      
-     changes in the tax, environmental, health, safety, security and 
      other regulatory regimes under which we operate;                
                                                                      
-     continued availability of attractive port destinations;         
                                                                      
-     our ability to successfully implement cost improvement plans and
      to integrate business acquisitions;                             
                                                                      
-     continuing financial viability of our travel agent distribution 
      system;                                                         
                                                                      
-     weather patterns or natural disasters; and                      
                                                                      
-     the ability of a small group of shareholders effectively to     
      control the outcome of shareholder voting.                      

Forward-looking statements should not be relied upon as a prediction of actual
results. Subject to any continuing obligations under applicable law, we
expressly disclaim any obligation to disseminate any updates or revisions to
any such forward-looking statements to reflect any change in expectations or
events, conditions or circumstances on which any such statements are based.

Results of Operations

We earn our cruise revenues primarily from the following:

-     the sale of passenger cruise tickets, which includes            
      accommodations, meals, and most onboard activities,             
                                                                      
-     in some cases the sale of air transportation to and from our    
      cruise ships, and                                               
                                                                      
-     the sale of goods and services on board our cruise ships, such  
      as casino gaming, bar sales, gift shop and photo sales, shore   
      excursions and spa services.                                    

We also derive revenues from the tour and related operations of Tours.

For segment information related to our revenues and operating income see Note 8
in the accompanying financial statements. Operations data expressed as a
percentage of total revenues and selected statistical information were as
follows:

                                      Three Months Ended February
                                                               28
                                                                 
                                                 2003        2002
                                                                 
Revenues                                         100%        100%
                                                                 
                                           __________  __________
                                                                 
Costs and Expenses                                               
                                                                 
Operating                                          60          57
                                                                 
Selling and administrative                         17          17
                                                                 
Depreciation and amortization                      10          10
                                                                 
                                           __________   _________
                                                                 
Operating Income                                   13          16
                                                                 
Nonoperating Expense                              (1)         (2)
                                                                 
                                           __________  __________
                                                                 
Net Income                                        12%         14%
                                                                 
                                            =========  ==========
                                                                 
Statistical Information (in                                      
thousands, except occupancy)                                     
                                                                 
Passengers carried                                923         772
                                                                 
Available lower berth days (a)                  5,805       5,060
                                                                 
Occupancy percentage (b)                       102.8%      102.8%


(a)   Represents the total passenger capacity for the period, assuming
      two passengers per cabin, that we offered for sale, which is    
      computed by multiplying passenger capacity by revenue-producing 
      ship operating days in the period.                              
                                                                      
(b)   In accordance with cruise industry practice, occupancy          
      percentage is calculated using a denominator of two passengers  
      per cabin even though some cabins can accommodate three or more 
      passengers. The percentages in excess of 100% indicate that more
      than two passengers occupied some cabins.                       

General

Our cruise and tour operations experience varying degrees of seasonality. Our
revenue from the sale of passenger tickets for our cruise operations is
moderately seasonal. Historically, demand for cruises has been greatest during
the summer months. Tour's revenues are highly seasonal, with a vast majority of
its revenues generated during the late spring and summer months in conjunction
with the Alaska cruise season.

We currently do not accumulate and report all costs separately for our onboard
and other revenue producing activities because we view these costs principally
as part of the overall cruise services provided to our passengers. We primarily
use, and intend to continue to use, other metrics to measure our cruise segment
performance and help manage this business. However, we intend to commence
segregating these revenues and their related costs and expenses within our
consolidated statements of operations to be included in our Quarterly Report on
Form 10-Q for the quarter ending August 31, 2003.

Our available lower berth day capacity is currently expected to increase by
16.6%, 19.6% and 18.4% in the second, third and fourth quarters of fiscal 2003,
as compared to the same periods of fiscal 2002, excluding any impact from the
proposed P&O Princess DLC transaction.

The year over year percentage increase in our available lower berth day
capacity, resulting primarily from new ships entering service, for fiscal 2004,
2005 and 2006 is currently expected to be 16.2%, 11.1% and 5.8%, respectively,
excluding any impact from the proposed P&O Princess DLC transaction.

As discussed in Note 4 in the accompanying financial statements, we have a
proposed DLC transaction with P&O Princess, which is subject to the approval of
P&O Princess' shareholders. If the DLC transaction is completed, the Combined
Group will be the largest cruise vacation group in the world, based on
revenues, passengers carried and available capacity. As of April 9, 2003, the
Combined Group would have had a fleet of 66 cruise ships offering 101,252 lower
berths, with 17 additional cruise ships having 40,990 lower berths scheduled to
be added through June 2006.

See the Liquidity and Capital Resources section below for additional discussion
of the proposed DLC transaction.

For a discussion of our critical accounting estimates, see "Management's
Discussion and Analysis of Financial Condition and Results of Operations,"
which is included in our 2002 Annual Report on Form 10-K.

Outlook For Remainder of Fiscal 2003 ("2003")

Looking to the remainder of 2003, the factors which affected our first quarter,
such as concerns about the war with Iraq and the uncertain worldwide economy,
are also impacting the balance of the year, particularly the second quarter.

With the start of the Iraqi war, we have seen a further impact on our booking
trends for the second quarter. Occupancy for the second quarter is behind where
we were at this time last year at prices that are well below that of the prior
year. Given the current circumstances, it is difficult to provide specific
revenue yield guidance for the second quarter, except that we expect revenue
yields to be significantly below that of the prior year.

Assuming air transportation costs are the same as in the second quarter 2002,
gross cruise operating and selling and administrative expenses per available
lower berth day are expected to rise approximately 7 to 9 percent in the second
quarter compared to last year's levels, due primarily to increased fuel costs,
front-loading of advertising expenses in the first half of 2003, increased
insurance, environmental and security expenses. Our fuel cost expectations are
based on our fuel prices during the week of March 10, 2003.

For the second half of 2003, bookings have also been impacted by the close-in
booking curve and the commencement of the war with Iraq. Occupancy for the
second half of 2003 is significantly behind that of the prior year at prices
that are slightly below that of the prior year. Given the current environment
and the close-in booking pattern, we are unable to provide revenue yield
guidance for the second half of 2003, except that it is likely that revenue
yields will be below that of the prior year.

Gross cruise operating and selling, general and administrative expenses per
available lower berth day for the second half of 2003 are expected to be down
slightly, compared to the same period in 2002, assuming no change in air
transportation costs and fuel prices from the levels experienced in the second
half of 2002.

Our previous guidance on costs per available lower berth day for the second
quarter and second half of 2003 that was given in our press release dated March
21, 2003 was based on "net" cruise costs (costs excluding the cost of air
transportation and travel agent commissions), while the cost guidance given
above is based on "gross" cruise costs, which includes air transportation and
travel agent commissions. We have made this change in our disclosure because of
the issuance of Regulation G by the Securities and Exchange Commission. Because
of this change in the basis of the computation, the percentage increase in
gross cost per available lower berth day disclosed above for the second quarter
is different from that included in our press release dated March 21, 2003,
although there has been no change in our cost guidance for either the second
quarter or second half of 2003.

This outlook does not take into consideration any impact from the completion of
the proposed P&O Princess DLC transaction.

Three Months Ended February 28, 2003 ("2003") Compared To Three Months Ended
February 28, 2002 ("2002")

Revenues

Revenues increased $125 million, or 13.7%, in 2003 compared to 2002. Cruise
revenues increased $126 million, or 14%, to $1.03 billion in 2003 from $901
million in 2002. Our cruise revenue change resulted primarily from a 14.7%
increase in our available lower berth day capacity. Our gross revenues per
available berth day were negatively impacted by the concerns about a war with
Iraq and the uncertain world economy, which resulted in slightly lower gross
cruise ticket prices.

Our cruise revenues discussed above included onboard and other revenues such as
bar sales, casino gaming, shore excursions, gift shop and spa sales, photo
sales and pre-and post-cruise land packages. These activities are either
performed directly by us or by independent concessionaires, from which we
collect a percentage of their revenues. In 2003 and 2002, onboard and other
revenues represented 22.2% and 21.8%, respectively, of cruise revenues.

Costs and Expenses

Operating expenses increased $96 million, or 18.4%, in 2003 compared to 2002.
Cruise operating expenses increased $97 million, or 19%, to $609 million in
2003 from $512 million in 2002. This increase was primarily a result of the
impact of the 14.7% increase in our available lower berth day capacity and the
$20 million increase in fuel prices, which resulted from a 51% increase in fuel
prices per metric ton, coupled with the increase in insurance, environmental
and security costs.

Selling and administrative expenses increased $26 million, or 17.0%, to $177
million in 2003 from $151 million in 2002. Cruise selling and administrative
expenses increased $26 million, or 17.9%, to $170 million in 2003 from $144
million in 2002. This increase was primarily due to the 14.7% increase in
available lower berth day capacity and the front-loading of advertising
expenses into the first half of 2003.

Depreciation and amortization increased by $17 million, or 18.6%, to $106
million in 2003 from $90 million in 2002. This increase was primarily as a
result of the expansion of our fleet and ship improvement expenditures.

Nonoperating (Expense) Income

Other income was $15 million in 2003 comprised of $19 million from net
insurance proceeds, $10 million as a result of Windstar Cruises' Wind Song's
casualty loss and $9 million as a reimbursement of expenses incurred in prior
years, less certain other nonoperating expenses.

Liquidity and Capital Resources

Sources and Uses of Cash

Our business provided $171 million of net cash from operations during the three
months ended February 28, 2003, a decrease of $44 million, or 20.5%, compared
to the three months ended February 28, 2002, due primarily to a decrease in
customers' advance ticket deposits. This decrease was principally a result of
the slowdown in bookings as concerns over the war with Iraq heightened, causing
a closer-in booking pattern.

During the three months ended February 28, 2003, our net expenditures for
capital projects were $112 million, of which $74 million was spent for our
ongoing shipbuilding program. The $38 million of nonshipbuilding capital
expenditures consisted primarily of ship refurbishments, Alaska tour assets,
cruise port facility developments and information technology assets. In
addition, we received an insurance reimbursement of $31 million related to the
Wind Song casualty loss.

During the three months ended February 28, 2003, we borrowed $148 million,
which included $90 million under short-term loan agreements and $58 million
under Costa's euro denominated revolving credit facility. In addition, we made
principal repayments of $109 million, which included $20 million under our
short-term loan agreements, a $50 million repayment under our $1.4 billion
revolver and $39 million on Costa's revolving credit facility and Costa's
collaterized debt. We also paid cash dividends of $62 million in the first
three months of fiscal 2003.

Future Commitments and Funding Sources

Our contractual cash obligations, with initial or remaining terms in excess of
one year, and contingent liabilities remained generally unchanged at February
28, 2003 compared to November 30, 2002, except for changes in our shipbuilding
and debt commitments discussed above and in Notes 3, 4 and 5 in the
accompanying financial statements.

As of February 28, 2003, we had noncancelable contracts for the delivery of
thirteen new ships over the next three years. Our remaining obligations related
to these ships under contract for construction is to pay $2.5 billion during
the twelve months ending February 28, 2004 and $2.7 billion thereafter.

At February 28, 2003, we had $3.3 billion of debt, of which $221 million is due
during the twelve months ending February 28, 2004. See Notes 3 and 4 in the
accompanying financial statements for more information regarding our debt and
commitments.

At February 28, 2003, we had liquidity of $2.3 billion, which consisted of $770
million of cash, cash equivalents and short-term investments, and $1.5 billion
available for borrowing under our revolving credit facilities obtained through
a group of banks, which have strong credit ratings. Our revolving credit
facilities mature in 2006. A key to our access to liquidity is the maintenance
of our strong long-term credit ratings. On April 14, 2003, Moody's Investors
Service, one of three debt rating agencies that rate our debt, announced that
they had lowered our senior unsecured debt rating from A2 to A3 in anticipation
of, among other things, the DLC transaction with P&O Princess. The other two
rating agencies have not yet issued a revised debt rating reflecting the DLC
transaction with P&O Princess. A reduction in Standard and Poor's credit rating
of our debt would require us to issue a $45 million standby letter of credit
(see Note 5 in the accompanying financial statements). We continue to believe
our senior unsecured debt will retain a strong investment grade rating.

We believe that our existing liquidity, together with our forecasted cash flow
from future operations, will be sufficient to fund most of our capital
projects, debt service requirements, dividend payments and working capital
needs. Our forecasted cash flow from future operations, as well as our credit
ratings, may be adversely affected by various factors, including, but not
limited to, those noted under "Cautionary Note Concerning Factors That May
Affect Future Results." To the extent that we are required, or choose, to fund
future cash requirements, including our future shipbuilding commitments, from
sources other than as discussed above, we believe that we will be able to
secure financing from banks or through the offering of debt and/or equity
securities in the public or private markets. No assurance can be given that our
future operating cash flow will be sufficient to fund future obligations or
that we will be able to obtain additional financing, if necessary.

Although no assurance can be given, we expect to complete our DLC transaction
with P&O Princess on April 17, 2003. As a result of the DLC transaction, the
Combined Group's outstanding long-term debt will be approximately $6.0 billion
and its shipbuilding commitments for 17 new cruise ships and one river boat
will be approximately $6.8 billion, which is a substantial increase over our
existing obligations and commitments. However, we believe that the Combined
Group's liquidity, including cash and committed financings, and cash flows from
future operations will be sufficient to fund the expected capital projects,
debt service requirements, dividend payments, working capital and other firm
commitments through at least the next twelve months.

Off-Balance Sheet Arrangements

We are not a party to any off-balance sheet arrangements, including guarantee
contracts, retained or contingent interests, certain derivative instruments and
variable interest entities, that either have, or are reasonably likely to have,
a current or future material effect on our financial statements.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information
required to be disclosed by us in the reports that we file or submit, is
recorded, processed, summarized and reported, within the time periods specified
in the Securities and Exchange Commission's rules and forms.

Our Chief Executive Officer, Chief Operating Officer and Chief Financial and
Accounting Officer have evaluated our disclosure controls and procedures as of
April 9, 2003 and believe that they are effective.

Changes in Internal Controls

There were no significant changes in our internal controls or other factors
that could significantly affect these controls subsequent to the date of their
evaluation and there were no corrective actions with regard to significant
deficiencies and material weaknesses.

It should be noted that any system of controls, however well designed and
operated, can provide only reasonable, and not absolute, assurance that the
objectives of the system will be met. In addition, the design of any control
system is based in part upon certain assumptions about the likelihood of future
events. Because of these and other inherent limitations of control systems,
there can be no assurance that our controls will succeed in achieving their
stated goals under all potential future conditions, regardless of how remote.



END