Dear Colleagues:

As you will see in the attached news release, Holland America Line has entered into an agreement to sell Windstar Cruises to Ambassadors International. 

First, let me acknowledge and thank all of you who have contributed to the success of Windstar Cruises over the years.  It is through your dedication and teamwork that Windstar Cruises, a small fleet of unique vessels, continues to make a mark on an ever-evolving industry.  With its strong management group that includes Joe Ueberroth and David Giersdorf, Ambassadors International is uniquely poised to continue this success story.

The Windstar marketing and sales team -- headed by Diane Moore -- has achieved an impressive turnaround in terms of performance.  On the ships, the officers and crew, supported by our Fleet Operations and Marine Hotel departments, have year-after-year produced some of the highest service and customer satisfaction ratings in the cruise industry.  

The sale is scheduled to be completed in early April.  In the interim, we will proceed with business as usual both onboard the ships as well as in our land-based efforts.    Following closing in April, Holland America Line will continue to operate Windstar Cruises in the short term so as to enable Ambassadors International to maintain continuity as they take over full management later this year.

All officers and crew aboard the Windstar vessels will have the opportunity to either continue in their positions with the new owners, or upon completion of their current assignment request to join the Holland America Line fleet.  Together with representatives of the new owners, Holland America Line management will be visiting each of the vessels over the next several days to introduce the new owners and discuss the service transfer plans.    

As for our land-based personnel, we never wish to see good employees leave our company so we hope many will pursue the numerous opportunities that exist within our corporate structure.  Employees are of course also free to explore the openings available with the new Seattle-based owners.   

I know all of you will demonstrate throughout this sale and transition period the same level of commitment, service and pride that you have shown over these many years in developing, selling, and delivering the Windstar Cruises 180˚ From Ordinary experience.    

Sincerely,

Stein Kruse

President and Chief Executive Officer