Mr James Baillie, Managing Director of P&O Australian Resorts (POAR) has announced he will be leaving the company and that Mr Mark Campbell (currently General Manager Marketing and Business Development) will take on the key management role. Highly respected for his marketing and financial acumen, Mark will be formally appointed as Managing Director of POAR in September 2001 when James is scheduled to make the move to Dick Smith Foods to take up a newly-created position as Managing Director. The two have worked closely together over the past four years, each playing an instrumental role in the strategic development of the company which, under their joint stewardship, has seen dramatic expansion and rising profitability.

In 1997, James Balllie and Mark Campbell brokered an AU$25 million deal, the most significant initiative in POAR�s recent history. The deal saw the acquisition of three island properties from Australian Resorts, a fully owned subsidiary of Qantas Airways. POAR�s portfolio literally doubled overnight with P&O Resorts gaining ownership of three island resorts - Bedarra Island and Dunk Island (located off Cairns in Tropical North Queensland) as well as the Whitsunday Island resort, Brampton Island.

The acquisitions were to be the platform on which the P&O Australian Resorts vision was founded. In 1999 Lizard Island (another resort formerly held by Qantas) was also added to the POAR portfolio.

In 2001 the Australia�s Natural Treasures portfolio is firmly established as a unique collection of boutique resorts world-renowned for offering premium nature-based holiday experiences in some of Australia�s most spectacular locations.

Following Mark�s promotion to the position of Managing Director of P&O Australian Resorts, Suzie Drinkwater has been appointed to the newly created position of General Manager, Marketing and Sales. Suzie has spent the past 10 years with P&O�s cruising operations and currently holds the position of General Manager Marketing and Sales for P&O Cruises. Her experience in marketing, sales and business development will be well utilised in the Resorts� management team as the company continues its consolidation.

Editor�s Notes:

P&O Australian Resorts (POAR) is the largest owner and operator of nature-based holiday destinations in Australasia.

A dynamic and uniquely Australian company, POAR currently generates revenue of over $AUS100million a year � annually providing more than 100,000 guests with premium nature-based holiday experiences in some of the world�s most spectacular locations.

Each property within POAR�s Australia�s Natural Treasures portfolio is a unique window to one of Australia�s World Heritage Listed areas and offers a range of quality soft adventure experiences in an individual, relaxed and professional style.

There are currently seven properties within the POAR portfolio. Five islands located on Queensland�s Great Barrier Reef (Brampton, Bedarra, Dunk, Heron and Lizard) and two eco lodges: Silky Oaks Lodge set on the edge of Queensland�s Daintree National Park and Cradle Mountain Lodge located in Tasmania�s Cradle Mountain and Lake St Clair National Park.

Media Contact: (not for publication)

Julia Gauci P&O Australian Resorts (02) 9364 8350 or 0401 713 890 julia.gauci@poresorts.com