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Carnival Corporation And Abb Reach Settlement On Azipod® Propulsion System
WICKLIFFE, Ohio - January 2001 - Carnival Corporation (NYSE: CCL) and ABB Industry Oy, Marine Group a unit of the ABB Process Industries, reached a settlement in December regarding a malfunction in the propeller bearing system of one of the Azipod propulsion units that occurred last July on Carnival Cruise Lines' cruise ship Paradise.

"Carnival Corporation very much appreciates ABB standing behind its products and working diligently to quickly address our concerns and resolve matters important to us," said Stein Kruse, senior vice president, head of fleet operations for Carnival Corporation's Holland America Line unit who negotiated the settlement on behalf of the corporation. "ABB is a major player in marine propulsion, and we feel we have a good customer-supplier relationship with them."

Carnival Cruise Lines currently has Azipod propulsion installed on three of its cruise ships with similar systems ordered for three additional vessels. Holland America Line has also ordered Azipod systems for five new cruise vessels. Carnival Corporation's European cruise operator, Costa Cruises, also has Azipod units on the Costa Atlantica with plans for a unit on another vessel, as well. Kruse said that the company believes that the system represents a technological breakthrough in marine propulsion.

"ABB looks forward to continuing its 15-year long relationship with Carnival and helping it to maintain its well deserved reputation for quality in the cruise industry," noted Andreas Fokkens, Senior Vice President and Head of Business Area Marine and Turbochargers.

ABB was the first to commercially develop electric azimuthing pod propulsion in cooperation with Kvaerner Masa-Yards of Finland, and currently has the most extensive experience (over 200, 000 operating hours) in the world with this technology. It has become a standard in the cruise industry and is increasingly being adopted by the marine industry in general. Since its introduction in 1990, more than 70 Azipod units have been ordered by various cruise and shipping operators.

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, Seabourn Cruise Line and Costa Cruises. Carnival Corporation's various brands operate 44 ships in the Caribbean, Alaska, Europe, Mexican Riviera, South America and other worldwide destinations.

ABB Process Industries is a global electrotechnical partner to the marine industry and supplies power plants, electric propulsion systems, total automation systems and a wide range of other electrotechnical products, drive and turbocharger systems for ships.

The ABB Group serves customers in automation, power transmission and distribution; oil, gas, and petrochemicals; building technologies; and in financial services. With novel IT applications, tailored software solutions, growing eBusiness and a fast expanding knowledge and service base, ABB is building links to the new economy. The ABB Group employs about 160,000 people in more than 100 countries.

Further information:

Jukka Kuuskoski
Sales Director
ABB Industry Oy
Marine Group
P.O.Box 185
00381 Helsinki, Finland
Tel. +358 10 22 26022
Fax +358 10 22 22350

Robert Loeffler
Public Relations Manager
ABB Automation Inc.
29801 Euclid Avenue
Wickliffe, Ohio 44118 USA
Phone: 1-440-585-6826
Fax: 1-440-585-7944

Tim Gallagher
Vice President - Public Relations
Carnival Corporation
3655 NW 87th Avenue
Miami, FL 33178
Phone: 305/599-2600, ext. 16000