Note 1. General DESCRIPTION OF BUSINESS Royal Caribbean Cruises Ltd., a Liberian corporation, and its subsidiaries (the "Company") operate eleven cruise ships (one of which has been sold and will operate under a charter agreement until March 1997) serving the Caribbean, Bahamas, Mexico, Alaska, Europe, Bermuda, Panama Canal, Hawaii, New England, the Far East and Southeast Asia. BASIS FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles and are presented in U.S. dollars. Management estimates are required for the preparation of financial statements in accordance with generally accepted accounting principles. Actual results could differ from these estimates. All significant intercompany accounts and transactions are eliminated in consolidation.

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