20 June 2002

P&O Princess Cruises plc
Deferred Bonus and Co-Investment Matching Plan (the "Plan")
Extension of Retention Periods

P&O   Princess   Cruises  announces  today  that,   on   the
recommendation of the Remuneration Committee, the Board  has
decided to extend by one year the required retention  period
for  new  and  existing awards made to directors  under  the
Plan.   The  retention period for awards will now  be  three
years, as recommended by the Combined Code.

ENQUIRIES

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

Brunswick (London)
+44(0) 20 7404 5959
Sophie Fitton

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.   The   current
complement of 19 ships offering 30,730 berths is set to grow
in  the next three years with six new ocean cruise ships  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").