MIAMI, Feb. 7 -- Carnival Corporation (NYSE: CCL) today
announced that it has entered into a working partnership with the Finnish
engine manufacturer, Wartsila NSD, to develop a smokeless diesel-electric
propulsion system for cruise ships.

Code-named "project enviroengine," prototypes of the new engine are expected
to be available later this year for laboratory testing and are expected to be
available commercially in 2001. Following successful completion of testing,
Carnival plans to utilize those engines on its future newbuilds.

According to Captain Jim Drager, Carnival's vice president of corporate
shipbuilding, when complete, the enviroengine, installed in a diesel-electric
propulsion system, will be one of the most environmentally friendly power
plants available for ships. "We have studied the attributes of gas turbines,
which we are considering installing on several Carnival Corporation newbuilds
now under contract, but still believe that eventually our current diesel-
electric systems can be as environmentally friendly as gas turbine
alternatives," he said.

Drager pointed out that because of efficiency, diesel-electric systems are
far less taxing on precious fossil fuel assets and also emit substantially
less carbon dioxide to the atmosphere which is the number one contributor to
global warming.

According to Daniel Paro, Wartsila's group vice president - technology, the
enviroengine is being created by combining "common rail technology" with a
direct water injection system. Common rail technology uses an electronically
controlled method to inject the precise amount of fuel at exactly the right
time, resulting in greater engine operating efficiency and virtually
eliminating smoke emissions.

Direct water injection reduces nitrous oxide emissions by spraying water
into the combustion chamber to cool it down immediately prior to injecting the
fuel. Cooling down the chamber reduces nitrous oxide formation, which occurs
at high temperatures. This method reduces nitrous oxide emission value to the
same level as gas turbine engines.

Paro said, "The cruise industry has made its desire to have the most
environmentally friendly ships sailing the seas well-known to its suppliers,
and we are happy to have Carnival working with us on this exciting
development. Since the mid-1980s, Wartsila NSD has spent more than $100
million (U.S.) on emission reduction research." He added that Wartsila will
have spent more than $10 million (U.S.) on the enviroengine development before
the prototype testing models are even built.

Drager said that in addition to being utilized on future newbuild orders,
power plants on several vessels currently under construction, including
Carnival Cruise Lines' "Spirit-class" ships and the Costa Atlantica, could be
converted to the enviroengines. Additionally, Carnival plans environmental
conversions on several of its existing vessels, including Holland America's
Alaska-based ships.

"Direct water injection technology, and the smokeless feature of the new
enviroengine once perfected, will provide substantial environmental
advantages," Drager said.

Carnival Corporation is comprised of Carnival Cruise Lines, the world's
largest cruise line based on passengers carried, Holland America Line,
Windstar Cruises, Cunard Line Limited, which operates the Cunard and Seabourn
cruise brands, and interests in Costa Cruises and Airtours plc. Combined,
Carnival Corporation's various brands operate 45 ships in the Caribbean,
Alaska, Europe and other worldwide destinations.

Wartsila NSD Corporation, the world's leading supplier of cruise ship
propulsion machinery, is a Finnish engineering group with global operations.
It is a leading provider of ship propulsion systems and equipment, as well as
of high efficiency, fuel-flexible power solutions on land. In both areas it
places a strong emphasis on environmental compatibility.

The core activities of Wartsila NSD are the design, manufacture, licensing
and sales and service of Wartsila and Sulzer engines in marine propulsion and
power generation.

Wartsila NSD supplies total engine room solutions, integrated propulsion
systems, main engines and auxiliary generating sets together with global
maintenance and operational service for all types of marine vessels and
offshore applications.

Net sales of Wartsila NSD were euro 1.8 billion in 1998, and it employs
9,500 people. Wartsila NSD is the core division of the Finnish Metra
Corporation.