Environmental protection is among NCL Corporation's ("NCL") highest priorities. The protection of the oceans on which NCL makes its living is of paramount importance to the company.

NCL has invested heavily not just on new environmental protection technology but also on a shore side department devoted to environmental protection and has placed trained environmental officers onboard every NCL ship. NCL has also undertaken environmental training for all of crew members.

NCL's environmental policies and technologies onboard its ships are among the most stringent in the industry and exceed existing laws and international conventions.

The company meets or exceeds all international, US, state and local port regulations such as the international MARPOL regulations, United States Coast Guard (USCG) and United States Environmental Protection Agency (USEPA). MARPOL is the international framework of environmental regulation for ships as found in the International Convention for the Prevention of Pollution from Ships.

All NCL crew receive training on environmental procedures prior to assuming shipboard duties as well as specialized environmental training appropriate to their individual job and responsibility. Each NCL ship has a designated environmental officer onboard at all times to oversee environmental training and compliance.

NCL ships are fitted with incinerators that burn oil, paper, cardboard, some plastics, and on some ships, bio sludge and dried food waste. What cannot be burned, or where incineration is not permitted, solid wastes including other plastics, aluminum, glass, wood and other material, is brought ashore for recycling or disposal by licensed disposal companies. Recently, several ships also gained the capability to dry, sterilize, and off-load inert sewage for recycling where it is feasible.

Food waste is disposed of according to the MARPOL and USCG regulations. Food waste is not considered damaging to the environment because it is consumed by animals or is broken down by natural elements in the water. Food waste is the only solid waste discharged to the sea by NCL ships. Additionally, NCL is off-loading cooking oil for use in bio diesel installations ashore.

All of NCL's ship's except one, which is currently being equipped, have state-of the-art advanced wastewater treatment systems that treat black water and gray water to near drinking water standards. All new ships will be launched with the state-of-the-art advanced wastewater treatment systems. Several of NCL's ships have been approved in ports and countries around the world for continuous discharge in port because the water is so clean and the quality assurance procedures are so rigorous.

Black water is either treated to advanced standards, disposed of shore side or discharged at sea more than 12 miles from land. Gray water from sinks and drains also receives advanced treatment or is discharged at sea more than four miles from land.

NCL's patented Ecoballast System was the first ballast treatment system approved by the State of Washington for use in the pristine waters of Puget Sound.

All of NCL's ships are equipped with the latest emulsion-breaking oily water separators, which are used in a three-step process that ensures that only clean water far exceeding regulatory requirements is discharged to the sea.

NCL uses low sulfur fuels in environmentally sensitive areas throughout the world to prevent acid rain. The company is also installing fuel-water emulsion systems, "cold iron" port electrical plug in capability, electronic fuel injection, and multi-fuel capabilities on its newer ships to ensure minimal air emissions wherever it sails.

NCL ships recycle whenever and wherever it is feasible. NCL has pioneered recycling of used lube oil, and routinely recycles plastics, aluminum, steel, batteries, oil sludge, and a wide variety of consumer products.

NCL has several positions committed to environmental safety, including Vice President of Environmental and Regulatory Affairs, Director of Environmental Operations, Director of Regulatory Compliance, Manager of Environmental and Regulatory Compliance, Manager of Environmental Management Systems and Manager of Environmental and SEMS Training.

NCL also has a Risk Management Committee that oversees environmental management policies. The committee consists of executives from legal, technical, marine, environmental, hotel and internal audit areas, as well as an outside environmental and risk management consultant.

Each year, every NCL ship is audited by an audit team to ensure compliance of all US and international environmental regulations and to ensure that NCL engages in the best possible practices and procedures to protect the environment. The audit includes a week long, thorough examination of each ship, and concludes with a report to the Risk Management Committee for review.

Further, the company has created a Safety, Health and Environmental Protection Policy, which among other things, establishes several objectives relating to the environment, including:

The prevention of accidents and incidents involving pollution of the environment;

The use or application of environmentally friendly materials and technology;

The disposal of garbage and waste materials in accordance with national and international rules and regulations;

The recycling and re-use of materials;

The establishment of objectives and targets for the continual enhancement of environmental management and pollution prevention programs;

The investigation and analysis of hazardous occurrences and taking the necessary corrective actions in order to prevent reoccurrence.

Finally, NCL has developed and implemented a Corporate Code of Business Ethics to ensure that all NCL team members, shipboard and ashore, rigidly adhere to NCL's environmental policies and stewardship.