Carnival Corporation & plc`s first quarter 2005 earnings press release dated March 21, 2005 stated that the company expected a court decision on March 22, 2005 on how to allocate a fund deficit in the British Merchant Navy Officers Pension Fund (MNOPF) among participating employers in the fund. The court announced its decision on March 22. Notwithstanding the court`s decision, there are a number of uncertainties remaining as to the company`s portion of the fund`s ultimate deficit. Therefore, under U.S. GAAP, any deficit will be recorded by the company as amounts are invoiced by the fund`s trustee, which is currently expected to be over a period of at least 10 years. The company expects the full year 2005 diluted earnings per share impact for the company`s portion of this deficit will be less than $0.01.

Carnival Corporation & plc became a participating employer in the MNOPF multiemployer pension plan primarily as a result of its merger with P&O Princess and thereby, assumed the P&O Princess MNOPF obligation. In accordance with the court`s March 22 ruling and other factors, and assuming all the other participating employers are able to pay their share of the MNOPF deficit, the company believes its share of the ultimate deficit could be in the range of $25 million to $90 million. The MNOPF deficit is more fully discussed in note 13 to the company`s 2004 annual financial statements.

The company has also been advised by its P&O Cruises Australia unit that its 46,000-ton, 1,200-passenger Pacific Sky has experienced a technical problem with a gearbox that will require dry-docking to complete the repair. The ship is expected to be out of service for approximately two months and will impact second quarter 2005 diluted earnings per share by approximately $0.02. The Pacific Sky is expected to re-enter service on June 4, 2005.