Extension of options for new ships

Further  to  the position outlined in its second quarter  results
announcement last week, P&O Princess today confirmed that it  has
reached  agreement  with  Chantiers d Atlantique  to  extend  the
options  for  the  ordering  of two additional  new  ships.   P&O
Princess now has until a date in late September to declare  these

The  options  are  for two sister ships to the Coral  and  Island
Princesses  which are currently under construction at the  French
yard,  with  delivery scheduled for November 2002 and  May  2003.
The  prices for the two ships under option are fixed in Euros and
have  not  changed as a result of this extension.  The  scheduled
delivery dates for the ships, if ordered, remain the same,  being
in 2005 and 2006.

For further information contact:
P&O Princess Cruises plc
Caroline Keppel-Palmer                           +44 20 7805 1214
                                                     07730 732015

John Sunnucks
+44 20 7404 5959

Website                                 www.poprincesscruises.com

P&O Princess
P&O  Princess  Cruises  plc  is  a leading  international  cruise
company with some of the strongest cruising brand names: Princess
Cruises  in North America; P&O Cruises, Swan Hellenic  and  Ocean
Village in the UK; AIDA and AROSA in Germany; and P&O Cruises in
Australia.   It is a leading provider of cruises to  Alaska,  the
Caribbean,   Europe,   the   Panama  Canal   and   other   Exotic
destinations.  The current complement of 19 ships and  two  river
boats offering 31,130 berths is set to grow in the next two years
with six new ocean cruise ships and one river boat on order.

P&O Princess Cruises has approximately 20,000 employees worldwide
and  carried  over one million passengers in 2001,  generating  a
revenue   of  approximately  $2.5  billion  (approximately   GBP1.7
billion). Headquartered in London, P&O Princess Cruises' ordinary
shares are quoted on the London Stock Exchange and as ADSs on the
New York Stock Exchange (under the symbol "POC").