I guess I should comment on these events. The problem is that I dont like to make statements where I am "guessing" and then people taking those opinions as fact. In a privately held corporation there is much gossip and conjecture and yet no one knows what the situation really is, you cannot see the "books" like you can in a publicly traded company. So below is simply "my take" on things and that could be quite wrong. I dont have insider information, this is purely my opinion.

There were layoffs in the corporate office a week ago. Two VP level people in Sales and Marketing and then some others in middle management level. These were not unexpected everyone knew that they were coming. In fact they seemed to take longer than many would have anticipated. While it is very sad to see some friends leave it is probably the best move for the company. They have two less ships now, The Song is gone and the Diamond is gone. They were a little top heavy to begin with - this was inevitable.

The Song and the Diamond as much as people loved the ships were expensive to operate and not really profitable for the company. They really did need to go. Although the Diamond cost the company a lot of money when the lease was pulled. There is no doubt they would have highly preferred to run it though at least this years European season.

It has been tough in the cruise industry for the last 3 years. This year it is my understanding that RSSC will make a profit in 2005 and will probably do well in 2006 as well.

As to the rumor they will get down to three ships in my opinion that has already happened. The Navigator, the Mariner and the Voyager. The PG is just managed by RSSC so although everyone sees it as a RSSC ship it is in a different category.

The next RSSC ship to go will be the Navigator, but in my opinion that wont happen anytime in the near future - probably not until they have a new ship. That is ONLY my opinion based on my logical assessment of the situation. My GUESS and this is ONLY a guess a new build will be announced in about a year after a profitable 2005 and a profitable 2006 on the books. Hopefully by then the exchange rate will have improved also.

The last year has been difficult with the introduction of a new software program for the company that was full of bugs and problems. We are now coming out the other side and while not perfect by any means it is improving and there are many features that are so much better now. The system allows their Omaha reservation office to have more control once again reducing the need for so many people in Fort Lauderdale.

As to Carlson's committment to the cruise line it has always appeared to me that the family really seems to value the cruise line. I personally would be completely shocked if the line was merged or sold. I dont see that happening based on the observations I have made over the last five years. Once again I DONT know I am just stating an opinion.

I think RSSC is handling things well, tough times do require tough measures to ensure the success and future of a company. The problem is the perception of events can be viewed so many different ways - this of course is nothing new.

The conjecture and rumors will fly around as they always do with any major changes. Dont take anyones opinion including mine as fact. Just keep in mind that only time will tell.