Royal Olympic Reports Bookings Up for 2002

Royal Olympic Cruise Lines Inc. has been advised by Louis Cruise Lines Ltd (LCL) that agreement has been reached for the shares held by LCL in ROC Holdings Inc. (ROCH), the majority shareholder in Royal Olympic Cruise Lines (ROCL), to be exchanged for a number of shares held by Louis Tourist Agency Ltd (LTA) in Cyprus Tourist Development Company (CTD), the owners of the Hilton Hotel in Nicosia. Acquisition of the $20 million subordinated bond by LTA and the Guarantee of Liabilities amounting to $6.0 million. As part of the acquisition of LCL’s investment in ROCL, LTA will guarantee the $6.0 million loan made by LCL to ROCL and will acquire $20.0 million subordinated convertible bond issued by ROCL to LCL in 2001.

LCL has the option to buy back all the ROC Holdings shares transferred to LTA within a period of 12 months from the completion date. The implementation of the transaction is subject to necessary approvals from the Central Bank of Cyprus as well as from the lenders of LCL and LTA. It is expected that all the legal formalities regarding the exchange will be completed by the end of February 2002. The Board of Directors of Royal Olympic Cruise Lines does not consider that the exchange represents a material change in ownership of the Company.

Royal Olympic Cruise Lines has announced its intention to change its year end date to December 31 to fall into line with that of Louis Cruise Lines. Given the transfer of LCL’s interest to LTA, Royal Olympic Cruise Lines will now continue to report its year end as at November 30, which is a natural break between the Company’s summer and winter seasons.