Celebrity Cruises is canceling its September 10 sailing on Summit to replace a radial-bearing unit that is showing premature wear in the ship`s starboard propulsion system. The replacement must be made in drydock, so the ship will enter San Francisco Drydock shipyard on September 12 to make the repairs. The canceled cruise is a seven-night, round-trip Alaska sailing departing from Vancouver. The ship is expected to resume service September 20.

I am truly sorry for the disruption this canceled cruise will cause our guests, said Jack Williams, president and chief operating officer of Celebrity Cruises. Regrettably, it is important that we replace this unit in a timely manner. We will work closely with our travel agency partners to provide our guests with the best possible alternative plans.

Guests booked on the September 10 sailing will receive a full refund for their cruise, plus a free future Celebrity cruise, in North America, of up to seven nights, departing on or before December 31, 2005, excluding holiday sailings. Travel agents will receive their full commission for the September 10 cruise, plus a $50 re-booking fee, per stateroom, when their clients reschedule their cruise.

Celebrity has established a special Help Desk to assist guests and travel agents with reaccommodations.

Summit is operating safely, merely with its speed reduced from 23 to 18 knots. Summit`s current sailing, a seven-night Alaska cruise from Vancouver to Seward, which concludes on September 3, will not be impacted by the bearing issue.

The ship`s seven-night September 3 sailing, from Seward to Vancouver, will make minor adjustments to two port calls.

Summit`s September 17 sailing, a 14-night Alaska and West Coast cruise, departing Vancouver and concluding in San Diego, will be delayed three days and depart on September 20. Celebrity will contact each guest booked on that cruise to rearrange their embarkation in Vancouver and provide further details.

The canceled cruise and modified cruise itinerary are expected to negatively impact Royal Caribbean Cruises Ltd.`s third-quarter earnings by approximately $.03 per share.