Work has begun on creating the new-look Silky Oaks Lodge, a project which promises guests the opportunity to enjoy the comforts of contemporary styled accommodation while exploring the ancient natural beauty of the world�s oldest living rainforest.

In an exciting two-phase refurbishment program, 25 of the resort�s Treehouse accommodations will be totally recreated with spacious bathrooms, stylish interiors and large verandahs some of the new features. Accommodation at the Lodge will also be reduced to 50 Treehouses and the main lodge will undergo refurbishment. A retreat spa - to be known as the Healing Waters Spa � will also be created with the complete project to be finalised by 16 September 2001.

�The brief for the refurbishment project is for the new Treehouse accommodations at Silky Oaks Lodge to be more in-tune with the resort�s rainforest location and to convey a sense of nature in all design elements,� explained Mr James Baillie, Managing Director of P&O Australian Resorts.

�For centuries the surrounding landscape has been celebrated for its restorative qualities, with the rainforest itself seemingly holding a spiritual charge. Allowing guests to benefit from the mineral filled waters of the Mossman River and the oxygen-rich air were two of the elements which inspired the project design.�

P&O Australian Resorts, in conjunction with project architects, have developed a design scheme for the accommodations that will open the interior to more natural light as well as the sights and sounds of the rainforest and river.

�The guiding aesthetic principles are modern with comfort as a key element. High quality fixtures and furnishings will be used in the design and a few statement pieces have been incorporated into the interior elements to lend a signature style.�

During the first stage of the program, 16 Treehouses will be remodelled and the development of the Healing Waters Spa will begin.

The second and final stage of the refurbishment program will focus on upgrading the remaining accommodations and the project will be finalised by 16 September 2001.

One of the building projects central to the refurbishment of Silky Oaks Lodge is the creation of the Healing Waters Spa. Spas represent a new signature experience offered by P&O Australian Resorts, the new Healing Waters Spa will be the third of P&O Australian Resorts� spas, all introduced during extensive upgrade programs.

Each spa offers unique products and treatments and is created in an individual style reflecting the character and location of each resort. The new Healing Waters Spa at Silky Oaks Lodge will join the Pavilion Spa on Lizard Island and Dunk Island�s Spa of Peace and Plenty.

On completion of the multi million dollar program, the resort will be known as �Silky Oaks Lodge & Healing Waters Spa�.

TRAVEL DETAILS: Silky Oaks Lodge & Healing Waters Spa, in Tropical North Queensland, is surrounded by one of the world�s few remaining pristine rainforests - the World Heritage-Listed Daintree National Park.

Overlooking the Mossman River, Silky Oaks Lodge blends the soothing qualities of the ancient rainforest with the stylish indulgences of a contemporary retreat. Here guests can enjoy the wonders of nature and the comfort of their own private Treehouse, delight in fine foods and enjoy relaxing spa treatments.

Silky Oaks Lodge is accessed via Cairns and is only 20 minutes from Port Douglas.

Three-night Silky Oaks Lodge packages including: private car transfers from Cairns; luxury spa Treehouse accommodation, Australian sparkling wine on arrival, tropical breakfast daily; one a la carte dinner for two; a spa treatment to the value of $80 per person; start from AUS$980 per person twin share.

The package also includes a day trip - a choice of a Great Barrier Reef cruise or an Australian Wilderness Experience Daintree and Cape Tribulation tour. (Valid 31 March 2002)

For bookings and further information on Silky Oaks Lodge & Healing Waters Spa, contact P&O Australian Resorts on 1800 737678 (freecall Australia only) or 61 2 9277 5050 or via the web www.poresorts.com or email resorts.reservations@poresorts.com

P&O Australian Resorts offer premium nature-based holiday experiences in some of Australia�s most spectacular locations. Each property within the Australia�s Natural Treasures portfolio is a unique window to one of Australia�s World Heritage Listed areas. P&O Australian Resorts properties include: Brampton Island; Bedarra Island; Cradle Mountain Lodge; Dunk Island; Heron Island; Lizard Island & Silky Oaks Lodge.

Media Contacts: (not for publication)

Julia Gauci Marketing Communcations Manager P&O Australian Resorts GPO Box 478 Sydney NSW 2001 Australia Phone: +61 2 9364 8350 Fax: +61 2 9364 8937 Email: julia.gauci@poresorts.com

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Susie Barry McCluskey & Associates 50 Sulivan Road London SW6 3DX United Kingdom Phone: (020) 7371 8900 Fax: (020) 7371 8116 Email: susie@mccluskey.co.uk United States of America

Timothy Fox Fox Global Communications 2021 Business Centre Drive #103 Irvine CA 92612 United States of America Phone: (949) 851 3144 Fax: (949) 851 2239 Email: foxglobal@earthlink.net