Celebrity Big Brother housemates Jade Goody and Danielle Lloyd have both apologised to Bollywood star Shilpa Shetty in a belated attempt at reconciliation.
Their move last night came as their careers appeared to be crumbling as a result of their alleged racism.
Complaints from viewers about the race row soared to more than 36,000, as Big Brother's sponsor Carphone Warehouse suspended its affiliation with the show.
Britain's Culture Secretary Tessa Jowell has branded the show "disgusting" and "racism being presented as entertainment".
But Channel 4 remained defiant about the show. Channel 4's chief executive had refused to comment on the furore, which turned into a major international incident, and when he finally did answer questions, Andy Duncan said he was "not ashamed of what was broadcast, quite the opposite".
He said the programme, which last night had 5.2 million viewers - its third highest audience this series - "has touched a real nerve". Mr Duncan said: "The debate has been heated, the viewing has at times been uncomfortable but, in my view, it is unquestionably a good thing that the programme has raised these issues and provoked such a debate."
Former Miss Great Britain Lloyd has been dumped from a lucrative modelling contract, believed to be worth six figures, as a result of the row. The girlfriend of Teddy Sheringham signed a 12-month deal at the end of last year to be the face of motorcycle insurance firm Bennetts.
The Perfume Shop also decided to withdraw Goody's best-selling perfume from its shelves because of the controversy, adding that it would review the position when Goody left the house.
Yesterday evening Shetty and Goody had a heart to heart, initiated by the London-born reality TV star. Goody said: "I know that what has happened has not been nice for you... and a lot of stuff got said the other day from you and from myself.
"I didn't say it in a racial way . . . I do not judge people by the colour of their skin."
Shetty replied: "I know that, I don't think you're racist. I really appreciate that you took the first step."
The pair then hugged and made up after giggling over how trivial the argument was. As the housemates went to bed it was Lloyd's turn to apologise, crouching beside her bed to claim she was "disgusted" by her behaviour.
She told Shetty: "I didn't agree with some of the things you said to Jade, but I especially didn't agree with some of the things that Jade said to you.
"I'm sorry. 'Cos I'm young and quite naive, I've probably took the route where I'll stick with Jade. I feel really disgusted at myself . . . I'm following the leader, following the group - when [you are] a really nice girl," Lloyd said.