Royal Olympic Reports Improved First Quarter Results

Royal Olympic Cruise Lines Inc. reported improved overall results for the three months ended February 28, 2002. The improvement was achieved in spite of the difficulties experienced, along with all the other cruise companies, due to the terrorist attacks in September 2001, which led to a substantial drop in its revenues. Total revenues for the quarter under review fell by 33.2 percent, from $14.2 million in the corresponding period of the previous year to $9.5 million. However, as a result of reduced interest rate payments and an improvement in non-operational items, the net loss for the quarter decreased by 18.2 percent or $2.2 million, from $12.4 million to $10.2 million. Passenger cruise days (p.c.d.) sold in the first quarter of 2002 were 75,319, a 21.05 percent drop from 95,402 p.c.d in the same period last year. Occupancy showed an increase of 2.1percent for the first quarter this year, to 72.2 percent from 70.1 percent for the same time period in 2001. Because the Royal Olympic Cruise Lines' Eastern Mediterranean cruise season historically runs from Mid-March through November, the company operated only two of its vessels during the winter season of 2001/02. As a result, operations of the company are seasonal and losses are traditionally incurred during the winter months. First quarter operating expenses decreased by 17.1 percent or $2.3 million, from $13.2 million in 2001 to $10.95 million this year. The newest addition to the Royal Olympic Cruise fleet, Olympia Explorer, was christened in Piraeus on June 11, 2002 and began her summer series of exotic, seven-day sailings to nine ports of call in Greece, Croatia, Italy, and Turkey.