Silversea Cruises to Manage the World's First Ocean-Going Luxury Residence 'The World' of ResidenSea

Press Release: Silversea Cruises Ltd.

October 5, 1999
FT. LAUDERDALE, FL -- William L. Smith, President and COO of Silversea Cruises Ltd., announced today that the award-winning, ultra-luxury cruise line has signed a contract with ResidenSea Ltd. to manage the world's first ocean-going luxury residence, The World of ResidenSea, scheduled for delivery in December 2001.

Silversea will have full responsibility for the maritime and hotel management of The World, a $262 million, 40,000 grt vessel comprised of 110 luxurious, privately-owned residences and 88 luxury guest suites. Silversea will be completely responsible for the sales and marketing of the guest suites. The line will also serve as a consultant during the ship's construction at Norway's Fosen Mek Verksteder A/S shipyard in Rissa, near Trondheim.

"The alliance with ResidenSea was a natural one for Silversea to consider," said Smith. "As purveyors of luxury, both companies have a clear understanding of what today's affluent traveler wants, and each approaches the market with innovation and creativity. Our shared high standards of excellence will ensure a dynamic lifestyle for the residents and a unique travel experience for the visiting guests."

Smith continued, "The strength of this alliance introduces a whole new aspect to the cruise industry. The opportunities for the cross selling and marketing of products between Silversea's ships and The World will only serve to expand awareness of the ultra-luxury cruise market."

ResidenSea's Chief Executive Officer, Fredy M. Dellis, said, "Silversea was specifically selected to manage this project because of its stellar international reputation and its commitment to excellent service and attention to detail. Silversea is recognized as an innovator in the ultra-luxury market, as is ResidenSea, and the synergies between the two companies will create a very powerful business partnership."

Conceived by cruise industry veteran Knut Kloster Jr., member of the acclaimed Kloster family that pioneered the modern cruise industry in the early 1960s, The World of ResidenSea is a unique concept that combines all the privacy and pleasantry of traditional luxury resorts with the magical experience of traveling by sea.

Forty-three residences have been sold prior to construction start. Some 50 percent of these buyers are European, approximately 40 percent are American, and the remaining 10 percent are from various parts of the world. The majority of buyers are active business people in their early fifties. The residences range in size from 1,106 to 3,242 square feet, and are priced from $2,000,000 to $6,840,000. Guest suites range in size from 258 to 920 square feet, and most have private veranda.

Designed by world-renowned cruise ship designers, Yran Storbraaten Architects, The World has 12 decks, measures 644 feet long and will offer an entirely new lifestyle -- traveling the world without leaving home. The ship will sail a continuous around-the-world itinerary focusing on extended stays -- a total of 250 days a year in various ports -- and visiting the world's most interesting destinations.

The development of The World has been enthusiastically received by the residents and the potential purchasers, as well as by the international investment community. Silversea is an equity partner in the project, which is now fully financed by prominent investors from the cruise, shipping and hospitality industries including: Mr. Knut Kloster Jr., ResidenSea's founder; Mr. Bryn Skaugen, whose family played a significant role in establishing and developing Royal Caribbean Cruise Lines; Mr. Petter C.G. Sundt, a major owner of Bergesen d.y. ASA, which is among the world's largest operators of oil tankers and gas carriers; Mr. Atle Bergshaven, former Vice President of the Norwegian Shipowner's Association, and owner of one of Norway's leading ship management companies, bearing his name; and Mr. Einar Nagell-Erichsen, a leading Norwegian hospitality and travel industry developer. Further international investment capital has been provided by Continental Casualty Company, one of America's largest insurance companies and a wholly owned subsidiary of C N A Financial Corporation, as well as an indirect subsidiary of the Loews Corporation.

The company's financial institutions and advisors, West LB and the Centre group, the latter being part of the Zurich Financial Services Group, have jointly arranged and supported the financing.

Silversea Cruises was founded in 1992 on the visionary concept of offering a truly all-inclusive, ultra-luxury cruise experience to all corners of the world. Purposefully designed ships feature all suite accommodations, most with private veranda; open, single-seating gourmet dining; and elaborate entertainment. It's first ship, the 16,800 grt, 296-guest Silver Cloud, debuted in 1994, followed by sister ship Silver Wind in 1995. In five short years, the line emerged as a leader in the ultra-luxury cruise market, and is internationally recognized as the world's best small ship cruise line. The company's strong financial performance made it possible to expand the fleet after only four years of operation. In May 1998, Silversea signed a contract for two new ships. The 25,000 grt, 388-guest Silver Shadow will be delivered in September 2000, followed by sister ship Silver Mirage in June 2001. The line also holds an option for two more ships to be delivered in 2002 and 2003.

SOURCE Silversea Cruises Ltd.