LONDON, Jan. 29, 2002 -- P&O Princess Cruises plc ("P&O Princess")
notes today's announcement by the Secretary of State for Trade and Industry
concerning her reference of the agreed combination with Royal Caribbean
Cruises Ltd. ("Royal Caribbean") to the Competition Commission.

The substantive facts and competition issues relating to the combination
will now be reviewed by the Competition Commission, with their review due to
be completed by 20th May, 2002. P&O Princess remains confident that the
combination with Royal Caribbean will receive clearance following the
Competition Commission's review.

The timetable for approval by P&O Princess shareholders of the proposed
transaction with Royal Caribbean remains unchanged with the EGM due to be held
on 14 February 2002.

Peter Ratcliffe, Chief Executive Officer of P&O Princess said:

"Notwithstanding this reference, we are confident that we will receive
clearance once the Competition Commission has fully reviewed the substantive
facts and issues surrounding our combination with Royal Caribbean."

Schroder Salomon Smith Barney and Credit Suisse First Boston (Europe)
Limited, which are regulated in the United Kingdom by the Financial Services
Authority, are acting for P&O Princess Cruises plc and no one else in
connection with the proposed combination with Royal Caribbean and the proposal
from Carnival and will not be responsible to anyone other than P&O Princess
Cruises plc for providing the protections afforded to customers of Schroder
Salomon Smith Barney and Credit Suisse First Boston (Europe) Limited or for
providing advice in relation to the proposed combination or the proposal.

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.

Salomon Brothers International Limited (trading as Schroder Salomon Smith
Barney) is regulated in the United Kingdom by the Financial Services
Authority. Salomon Smith Barney is a service mark of Salomon Smith Barney
Inc. Schroders is a trademark of Schroders Holdings PLC and is used under
licence.