THE PRINCESS DIARIES star Anne Hathaway has embarked on a new romance with a real estate developer.

The 23-year-old actress arrived at the 6 December (05) New York City premiere of her acclaimed movie Brokeback Mountain with RAFFAELLO FOLLIERI on her arm

And the beauty admits she's thrilled with their life together.

She says, "We're pretty laid back people. We love to travel and eat and spend time with our dogs."

Next month (JAN06), the couple will travel to Ethiopia, where Hathaway will carry out charity work.