For immediate release
                P&O Princess Cruises plc
            Response to Carnival Corporation

                      31 July 2002

P&O  Princess  Cruises  plc ("P&O  Princess")  notes  the
publication today by Carnival Corporation ("Carnival") of
a  letter received from Carnival dated 24 July 2002.  P&O
Princess  wrote to Carnival in response on 26 July  2002.
The full text of that reply is set out below:

"The Board of Directors
Carnival Corporation
Carnival Place
3655 N.W. 87 Avenue
Miami, Florida 33178-2428
United States

For the attention of Micky Arison

26 July 2002

Dear Micky,

Thank you for your letter of 24 July.

We  are  mindful of the rights and obligations  of  Royal
Caribbean  and P&O Princess under our agreement,  and  of
the  interests of P&O Princess shareholders.  Under  the
terms  of our agreement with Royal Caribbean, we are  not
in a position to meet with you.

Yours sincerely

Peter Ratcliffe
Chief Executive Officer"


P&O Princess
+44 (0) 20 7805 1200
Caroline Keppel-Palmer
+44 (0) 7730 732015

+44(0) 20 7404 5959
John Sunnucks

The  directors of P&O Princess accept responsibility  for
the  information contained in this announcement.  To  the
best of the knowledge and belief of the directors of  P&O
Princess  (who have taken all reasonable care  to  ensure
that  such is the case), the information contained herein
for  which  they accept responsibility is  in  accordance
with  the  facts  and  does not omit anything  likely  to
affect the import of such information.