Trump says Prejean can keep Miss California crown

Carrie Prejean, the controversial beauty contestant, can keep her Miss California crown after Donald Trump - property mogul and the owner of the Miss Universe brand - decreed that a batch of semi-naked photos of her did not breach her contract.

Trump - or 'the Donald' as he is known by the millions who watch him every week on the US version of The Apprentice - made the announcement in a press conference (pictured) that aired on every American cable news channel on Tuesday.

Last month the 21-year-old beauty queen was the runner-up at the Miss USA contest, and later claimed that she lost the title after voicing her support for "opposite-sex marriage".

But her new-found role as pin-up for the American right was quickly undermined when racy pictures emerged of her on the internet. One photograph showed Prejean, then a 17-year-old model, partially nude with her back turned towards the camera.

Prejean, who appeared by Trump's side, attacked those who released the pictures, claiming she had been the victim of "hateful attacks, despicable rumours and false allegations".

"I am not an activist or anything. Nor do I have a personal agenda. I was thrown into this firestorm from the time I was asked this question on stage," she said.

Trump told journalists at New York's Trump Tower that, having reviewed Prejean's photos, the images were acceptable. "We have determined that the pictures taken are fine," he told a packed press conference. "Some were very beautiful, some were risqué, but, again, we're in the 21st century... in many cases they were actually lovely pictures."

He also noted that Prejean's response to the question from celebrity gossip blogger Perez Hilton was almost the same as one given by Barack Obama while campaigning for the presidency. "She gave an honorable answer; she gave an answer from her heart."