NEW YORK, June 30, 1994 -- Cunard Line Limited, a subsidiary of Trafalgar House plc, announced today that it has purchased the cruise liner Royal Viking Sun from Kloster Cruise Limited for $170 million.

The acquisition, which includes the franchise of the Royal Viking Line, will be financed from Trafalgar House's own resources. The purchase consideration may increase by up to a further $5 million depending on the financial performance of the vessel over the next two years. During the past 12 months the vessel generated sales amounting to some $75 million.

The 758-passenger, 37,845-ton Royal Viking Sun was built in Helsinki, Finland. Since the vessel entered service in December, 1988, it has been annually recognized by the Berlitz Complete Guide to Cruising and Cruise Ships as the highest rated luxury cruise ship in the world. With this purchase Cunard operates six of the eleven five-star-plus-rated ships in the world.

The acquisition of the Royal Viking Sun will make an immediate contribution to Cunard Line's operating profit. It complements the $45 million comprehensive refurbishment of Cunard Line's flagship, Queen Elizabeth 2, and the $15 million refit of the Vistafjord, which were announced recently. The Sagafjord will be refurbished in 1996.

Allan Gormly, Group Chief Executive, Trafalgar House, said: "This acquisition reinforces Cunard's position as a leading participant in the luxury sector of the cruise market. It is in line with the strategy announced at the time of the Rights Issue in January 1994 of the group's intention to expand the scale of Cunard's operations in the premium and luxury markets. The purchase of the Royal Viking Sun combined with major refurbishment programs, increased investment in marketing and the development of improved booking systems, will ensure that Cunard enhances its worldwide operational and marketing presence."

A circular giving detailed information on the acquisition will be sent to shareholders in due course.