P&O Princess Cruises
Statement on Diamond Princess - fire in shipyard

1 October 2002


The Diamond Princess is currently under construction at
the Mitsubishi Heavy Industries shipyard in Nagasaki,
Japan and is scheduled for delivery on May 31, 2003.
The ship is due to commence service on June 19, 2003
and be deployed in Alaska for the 2003 summer season.

We are advised that the ship has suffered a major fire in
the shipyard.  We understand that there are no casualties
and everyone at the yard is accounted for. The extent of
the damage is not as yet known, but appears to be
significant.

It will take sometime to assess the extent of the damage
and any consequent delay to the scheduled delivery.
However, it should be noted that the company has in
place contractual arrangements with the yard and
insurance policies that it believes, irrespective of the
extent of the damage and any consequent delay, will be
sufficient to ensure that there will be no significant
economic impact on the Group nor any adverse impact
on its 2003 earnings.


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

Brunswick

     Sophie Fitton
	+44 20 7404 5959


Websitewww.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 A'ROSA 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").