HAMILTON, Bermuda, July 5, 2004 – LAWFUEL – Sea Containers Ltd…

HAMILTON, Bermuda, July 5, 2004 – LAWFUEL – Sea Containers Ltd. a passenger and freight transport operator, marine container lessor and leisure industry investor,
announced that its GNER railway subsidiary has signed agreements with the U.K.
Strategic Rail Authority (SRA) to settle the SRA’s claim for participation in
the settlement between GNER and Network Rail for damages arising out of the
Hatfield rail disaster in October 2000 and its aftermath. Network Rail had
earlier paid GNER 238 million pounds sterling to cover losses. The SRA felt
that GNER should contribute to it 25 million pounds of this settlement but the
contractual obligation to do so was unclear and could only have been resolved
by arbitration.

Ultimately, GNER agreed to pay 17 million pounds to the SRA out of the
Network Rail settlement which was fully provided in the company’s 2003
financial statements. Additionally, 8 million pounds will be paid to the SRA
in monthly installments in the period April 2005 to April 2006. In return for
the additional 8 million pounds the Strategic Rail Authority has agreed to
release immediately 42 million pounds (US$76 million) of security posted by
GNER as a requirement of its franchise agreement, to remove the SRA’s right to
require GNER to increase its share capital and to indemnify GNER for the
difference between the new compensation regime stipulated by the U.K. Rail
Regulator to take effect from April 1, 2004 and the original compensation
regime in force when the franchise agreement came into effect in 1996.

The new regime is less favorable to GNER than the original one. The compensation
regimes relate to payments made by Network Rail, the infrastructure provider,
to GNER for infrastructure failings, and bonus payments from GNER to Network
Rail when infrastructure performance exceeds defined targets.

Mr. James B. Sherwood, President, said that GNER had agreed to the
settlement primarily because it is seeking to renew its franchise and is
bidding for two additional new franchises, Integrated Kent and Greater
Western, and it was not appropriate to remain in dispute with the SRA during
this process.

He indicated that the results of the U.K. Government’s railway review now
in progress are expected during July and timing of the bid for the renewed
franchise could depend on the government’s decisions arising out of that
review. It has been widely rumored that the government will abolish the SRA
and give more powers to Network Rail but the franchise system will remain

Mr. Sherwood also announced that Ian C. Durant, 45, has been appointed
Vice President and Deputy Chief Financial Officer with effect from June 1,
2004. Mr. Durant is a Chartered Accountant and has held senior financial
positions in the Jardine Matheson Group in Hong Kong, including Finance
Director of Hong Kong Land Holdings and Group Finance Director of Dairy Farm
International. He is a U.K. citizen and most recently was Group Finance
Director of Thistle Hotels plc in Britain. Mr. Durant will understudy Daniel
J O’Sullivan, the company’s Chief Financial Officer who will retire at the end
of 2004.

Mr. Sherwood said, “Ian Durant’s international and public company
experience has prepared him well for the diverse worldwide operations of Sea
Containers and we are pleased to welcome him to the company.”

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