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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, August 16, 2002, Vol. 3, No. 162


                            Headlines


* F R A N C E *

ALCATEL: OPT Selects Alcatel to Expand GSM Network
NORTEL NETWORKS: Bharti Telesonic Selects Nortel Solutions
VIVENDI UNIVERSAL: Plans Asset Disposal Worth at Least EUR10 BB
VIVENDI UNIVERSAL: Board of Directors Meeting on August 13, 2002
VIVENDI UNIVERSAL: CEO Fourtou's Comments on 2002 Results
VIVENDI UNIVERSAL: Issues Update on Company's Refinancing Needs
VIVENDI UNIVERSAL: Reports 2002 Half-year Results

* G E R M A N Y *

AMATECH AG: Court Transfers Powers to Administrator; CEO Resigns
BABCOCK BORSIG: Finds Employment for 650 Workers in Spain
CARGOLIFTER AG: Investor Willing to Inject EUR77MM for Takeover
PHILIPP HOLZMANN: Sells HSG, U.S. Unit to Bilfinger for EUR43 MM
RTV FAMILY: TV Producer Faces Imminent Collapse
SER SOLUTIONS: Former German Parent Announce Validation of MBO

* I R E L A N D *

ELAN CORPORATION: Plans to Buy Back 15pc Share Capital

* N E T H E R L A N D S *

PHARMING GROUP: Announces Spin-Off of ProBio Subsidiary
UNITED PAN-EUROPE: Results for Q2 Ending June 30, 2002

* P O L A N D *

NETIA HOLDINGS: Another Shareholder Challenges Resolution

* S W E D E N *

LM ERICSSON: Announce Approval of Microelectronics Transaction
LM ERICSSON: Obligation to SonyEricsson Could Cause Cash Crunch

* U N I T E D   K I N G D O M *

CENES PHARMACEUTICALS: Announces Divestment of ICT Business
FILTRONIC PLC: Issues Notice on M & G's Investment's 13.22% Stake
FILTRONIC PLC: Company Profile
LEVI STRAUSS: Moody's Cuts Debt Ratings With Negative Outlook
NTL INCORPORATED: Announces Three and Six Months 2002 Results
TELEWEST COMMUNICATIONS: Requests Sale of 16.9% SMG Stake


===========
F R A N C E
===========


ALCATEL: OPT Selects Alcatel to Expand GSM Network
--------------------------------------------------
Alcatel announces that it has signed a GSM network expansion contract with
OPT (Office des Postes et Telecommunications), the
New Caledonian fixed and mobile operator to expand the French Pacific
Islands mobile operators' capacity.

This new network expansion, will increase OPT's GSM network, which operates
under the name "Mobilis", from 75,000 subscribers to a total capacity of
more than 100,000 subscribers by year-end.

As one of the main Pacific Islands mobile operators, OPT will use the
Alcatel Evolium solution to optimize its existing infrastructures and
accelerate the deployment of new generation products and services while
increasing the coverage and capacity of the existing network. Alcatel's
Evolium end-to-end solution supports GSM, GPRS, EDGE and UMTS for 3G
technologies.

Alcatel will supply OPT with its Evolium solution comprising its radio
access network (Base Stations and Base Station
Controllers), Mobile Switching Centers, Home Location Registers, and a next
generation Intelligent Network (IN) platform for value-added services.

To carry the traffic, the network will utilize Alcatel's advanced low-medium
capacity microwave radio systems based on
Plesiocronous Digital Hierarchy (PDH) technology, which will be managed by a
unified network management platform. This platform will enable OPT to
connect both its mobile and fixed subscribers using the GSM technology.

Alcatel will also deliver a Service Node platform encompassing value added
services such as, Voice Mail Services (VMS) bringing the voice mail system
to a capacity of 100,000 mailboxes, from the current 75,000 mailboxes.
Through this new extension the network will offer value-added services and
revenue-generating applications based on the next generation IN platform
such as prepaid telephony for fixed network services for a capacity of
25,000 subscribers.

Jean-Yves Ollivaud, general manager of OPT declared: "The value added
services offered by Alcatel's Intelligent Network will help the people
throughout the Pacific Islands to gain better coverage and access to mobile
telephony services"

Remi Galasso, country senior officer for Alcatel Pacific islands, added: "
This new contract demonstrates the long-term trust that
OPT sets in Alcatel, illustrating Alcatel's commitment to ensure its
customers' full-satisfaction."

The Office des Postes et Telecommunications ¯ in New Caledonia is a
combination of various sphere of activities such as telecommunications
(landline and mobile network), Post office and Financial services (About 785
employees).

The GSM 900 network is called Mobilis. Today, more than 75
000 subscribers communicate through Mobilis. For more information visit the
OPT New Caledonia website at:
http://www.opt.nc

Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data and
multimedia, to any type of consumer, anywhere in the world.

Relying on its leading and comprehensive products and solutions portfolio,
stretching from end-to-end optical infrastructures, fixed and mobile
networks to broadband access, Alcatel's customers can focus on optimizing
their service offerings and revenue streams.

With sales of EURO 25 billion in 2001 and 99,000 employees,
Alcatel operates in more than 130 countries. For more information, visit
Alcatel on the Internet:
http://www.alcatel.com

Alcatel is now the world's fastest growing GSM/GPRS supplier.
Currently, over 110 mobile operators worldwide rely on Alcatel's
EvoliumGSM/GPRS core and radio solutions.

By creating Evolium SAS, an Alcatel-Fujitsu company, Alcatel clearly
reinforces its position in both mobile infrastructure and mobile Internet.
Evolium SAS combines Alcatel's expertise in GSM,
GPRS, and EDGE as well as in ATM and IP technologies, with the advanced
experience of Fujitsu as supplier of NTT DoCoMo.

NTT DoCoMo is the world's leading mobile communications company with more
than 40 million customers. The company provides a wide variety of
leading-edge mobile multimedia services. These include
i-mode, the world's most popular mobile Internet service, which provides
e-mail and Internet access to over 32 million subscribers, and FOMA,
launched in 2001 as the world's first 3G mobile service based on W-CDMA.

Alcatel's UMTS solutions are a reality today, with 20 UMTS field trial
networks in operation or planned to be delivered by Alcatel in Europe and in
Asia by mi-2002. Alcatel's strategy covers all aspects of UMTS deployment,
from radio access and core network to terminals.

Evolium SAS delivers a radio infrastructure that is 3GPP-compliant,
field-proven and capitalizes on Japanese 3G technical and field experience.
Alcatel, which played a vital part in developing the mobile Internet market,
in particular through the successful roll out of GPRS commercial networks
worldwide.


NORTEL NETWORKS: Bharti Telesonic Selects Nortel Solutions
----------------------------------------------------------
Bharti Telesonic Limited, a wholly owned subsidiary of India's leading
telecom conglomerate, Bharti Tele-Ventures, has deployed a high-capacity SDH
(synchronous digital hierarchy) backbone - based on OPTera* Metro 4000
Multiservice Platform from Nortel
Networks - for its national and international long distance services.

As India's first national and international long distance service provider,
Bharti Telesonic has earned consumer equity on two counts: first, by
introducing world-class voice services under its "IndiaOne" brand; and
second, by making long distance communications truly affordable for
consumers in India by effecting a 62.5 % drop in STD (subscriber trunk
dialing) rates and up to a 40 % reduction in ISD (international subscriber
dialing) rates. Deployment of Nortel Networks OPTera Metro 4000 is expected
to contribute to sustaining affordable service.

Bharti Telesonic is building India's first privately built long distance
network, with 35,000 kilometres of optic fibre cable that will ultimately
link 250 cities. To date, the network spans
16,000 kilometres, and connects Chandigarh, New Delhi, Bhopal,
Jabalpur, Mumbai, Mangalore, Bangalore, Chennai, Vijaywada and
Hyderabad.

"Bharti Telesonic's optical backbone, based on Nortel Networks
industry-leading networking technology, enables us to provide our customers
with fault-free and cost-effective high-bandwidth connectivity, and next
generation voice and data services under our 'IndiaOne' and
'hi-bandwidth-answers' brands respectively," said N. Arjun, chief executive
officer, Bharti Telesonic Ltd.

"With our massive bandwidth and high levels of network intelligence, we are
well positioned to significantly expand our customer base," Arjun said.
"With a scalable and reliable platform, we will deliver huge cost advantages
to our customers in India's growing national and international long distance
markets."

"Nortel Networks has significant, first-hand experience in helping new
operators quickly establish a strong presence in new markets, and we are
delighted to help Bharti Telesonic in rolling out their network," said
Ashoka Valia, managing director, Nortel
Networks India. "Nortel Networks solution will position Bharti
Telesonic to manage its new optical network efficiently and cost
effectively, as well as to drive optimal network service."

The Bharti Telesonic deployment builds on a growing relationship between
Nortel Networks and Bharti Tele-Venture companies.
Earlier in 2002, Nortel Networks deployed OPTera Metro 4000 systems for
Bharti Telenet's fixed-line TouchTel networks in
Haryana and New Delhi. In late 2001, Bharti group's AirTel selected Nortel
Networks to supply a nationwide customer care contact center for its GSM
wireless cellular service.

OPTera Metro 4000 is part of Nortel Networks complete, flexible metro
optical portfolio, which harnesses the power of SDH/SONET and Ethernet
technology to extend the value of optical networks, and to position service
providers to offer innovative and profitable voice, multimedia and data
services.

Deployed in more than 1,000 customer networks in 65 countries,
Nortel Networks end-to-end optical network portfolio includes next
generation SONET/SDH, optical switching products, photonics
(WDM) and Optical Ethernet products. In addition, Nortel
Networks has deployed more than 250,000 network elements globally. Nortel
Networks was the worldwide leader in optical networking for 2001 and the
first quarter of 2002 with #1 market shares in total optical transport
equipment and metropolitan DWDM, according to the Dell'Oro Group.

Bharti Tele-Ventures is India's leading private sector provider of
telecommunications services, with over 1.6 million cellular, fixed-line and
Internet customers served by four wholly owned subsidiaries: Bharti
Cellular, Bharti Telenet, Bharti Telesonic and Bharti Broadband Networks.

Nortel Networks is an industry leader and innovator focused on transforming
how the world communicates and exchanges information. The company is
supplying its service provider and enterprise customers with communications
technology and infrastructure to enable value-added IP data, voice and
multimedia services spanning Metro and Enterprise Networks,
Wireless Networks and Optical Networks.

As a global company, Nortel Networks does business in more than
150 countries. More information about Nortel Networks can be found on the
Web at http://www.nortelnetworks.com


VIVENDI UNIVERSAL: Plans Asset Disposal Worth at Least EUR10 BB
---------------------------------------------------------------
Vivendi Universal, the French media company, will dispose of assets worth at
least EUR10 billion, including EUR5 billion over the next nine months, a
report from the Dow Jones says.

Vivendi's board approved the plan, which was proposed by its new chairman
and chief executive Jean-Rene Fourtou, on Tuesday. This marks the first
stage to break up the media and entertainment conglomerate, the news outfit
says.

The asset disposals will include the sale of U.S. publishing unit
Houghton Mifflin. The disposals are part of the company's plan to decrease
its EUR19 billion debt pile. The company has also decided to cancel some
20.9 million treasury shares linked to stock option plans, the Dow Jones
reports.


VIVENDI UNIVERSAL: Board of Directors Meeting on August 13, 2002
----------------------------------------------------------------
The Board of Directors of Vivendi Universal, chaired by Chairman and CEO
Jean-Rene Fourtou, met on August 13, 2002:

(1) The Board examined the preliminary non-audited financial statements for
the first half of 2002.

(2) The Board took note of the progress made on the plan to set up a 3
billion euro credit facility with the company's banking partners.

(3) Based on the proposal by the Chairman and Chief Executive
Officer, the Board approved the initial decision taken on the plan to
dispose of at least 10 billion euros worth of assets, including 5 billion
euros in the next nine months. The Board voted to sell Houghton Mifflin and
has entrusted the Chairman to carry out this plan. On September 25, the
Board will review in detail the company's strategy to optimize all of its
assets.

(4) The Board authorized the cancellation of 20,865,167 treasury shares
linked to certain stock option plans. A call option program will be put in
place in order to cover potential option exercises.

(5) The Chairman and Chief Executive Officer presented the Board with new
management principles for the organization of the holding company, Vivendi
Universal group, and announced the appointment of a new Chief Operating
Officer, Jean-Bernard
Levy. Eric Licoys accepted to continue heading certain strategic dossiers
for the company in the position of advisor to the Chairman. The Board
thanked Mr. Licoys for the important work he has carried out.

Contact Information:

Vivendi Universal
Investor Relations

Paris
Laura Martin, 917.378.5705
Laurence Daniel
Telephone: +33 (1).71.71.1233

New York
Eileen McLaughlin
Telephone+(1) 212.572.8961


VIVENDI UNIVERSAL: CEO Fourtou's Comments on 2002 Results
---------------------------------------------------------
Vivendi Universal (www.vivendiuniversal.com) released the comments made
during an analyst conference call by the company's
Chairman and CEO Jean-Rene Fourtou regarding Vivendi Universal's unaudited
financial results for the first half of 2002:

"Good afternoon or good morning, depending on where you are in the world.

"Thank you for being with us on the 14th of August.

"I arrived at Vivendi Universal on the 3rd of July, just 6 weeks ago, with a
mandate from the Board to make a survey of the situation at Vivendi
Universal in order to:

     -- propose a strategy to enhance the value of the stock and
     -- to fix the important financial issues of the company.

"This basic work is well advanced:

-- For each business unit we have a business plan that includes its risks
and opportunities, its potential value creation, the comparison between what
we could expect from the sale of the business (each time there is a clear
buyer) compared with its net present value for Vivendi Universal. We are
preparing with the strategic committee what would be the best scenario for
the company's shareholders. We expect decisions to be made at the September
25th Board meeting.

-- We have also evaluated what the normal debt of Vivendi should be in order
to regain a triple-B rating, to evaluate the amount of excess debt at the
company. Assuming that we cannot benefit from the cash flows of Cegetel,
this excess debt is around 10 billion euros today. We must decrease debt of
at least this amount as soon as possible, by doing 3 things:

     (1) We have mainly to sell businesses;

     (2) We have to cut immediately the cash drain of the
         company... mainly the non French activities of the
         Canal+ group, the Internet activities and the huge level
         of corporate overhead.  Decisions have already been
         taken on these three issues.

     (3) We must also manage the ongoing businesses to enhance
         their cash flows, which was not the case until the last
         several months.

"In the short term, due to the structure of our debt, we are facing a
liquidity problem ... in spite of the value of our assets. That's why the
first thing I did upon my arrival was to negotiate, with the help of the
chairman of the finance committee of the Board Mr. Bebear, a new bank
facility of 1 billion euros.
This new money has not yet been used. As announced in July, we are presently
negotiating a new facility of 3 billion euros which will include the first 1
billion euros. We have reached a framework for agreement with the same seven
banks and we expect this new facility to be signed by the end of August.
This will allow Vivendi to buy the time necessary to implement the best
conditions for the necessary sale of businesses.

"We are committed to sell assets for a minimum amount of 10 billion euros in
the two years to come, 5 billion euros of which will be completed during the
next 9 months. This commitment can be achieved with the plan for Canal+
Group announced in July, the sale of the numerous non-core assets, and the
sale of Houghton Mifflin for which we have numerous potential buyers.

"The strategic plan that will be proposed to the Board in
September will include other disposals. I know that this type of
announcement creates concerns and worries within the company. I would like
to take this opportunity to tell our employees that, as I did at Rhone
Poulenc, those restructurings will be implemented taking into consideration
the future development of the concerned activities and the situation of the
personnel.

"I am announcing today a new organization of the holding company with the
arrival of a COO, Jean Bertrand Levy, who will help me implement numerous
projects we have and at the same time challenge and better monitor the
different businesses of the group.

"Concerning the figures of the first half, I want to make the following
remarks:

(1) Despite good progress in revenue and operating income growth,
Vivendi's net income before exceptional items and amortization of goodwill
is a loss of 0.06 euros per share. I would like to underscore that this
negative income is the result of a loss coming from the businesses that
Vivendi owns more than 50% of, offset in part by positive results from the
companies Vivendi owns less than 50% of. This represents a challenge, as
Vivendi can't access the cash flow generated by companies it owns less than
50% of.

(2) This economic situation can be significantly improved by the
implementation of the Canal+ plan, the decisions taken for the Internet
activities, the strong decrease in overhead expenses, the disposal of
non-core assets, and the new objectives for profitability and free cash flow
given to the business units.

(3) The impairment charges are important; they have been calculated on a
normal ongoing concern basis. I haven't understated the value of businesses
or increased the impairment provision beyond what is fair, as some CEOs
might do in my position.

(4) These accounts are presented under French GAAP without reconciliation to
US GAAP; I apologize for that. I know that the
1st quarter results were presented in U.S. GAAP and I know that this may
create some problems for you. A reconciliation to U.S.
GAAP will be given to you in September with the half year audited figures.
In the future, we shall present our figures in French
GAAP on a quarterly basis with a reconciliation into U.S. GAAP.

"Finally, I would like to tell you how much the team is dedicated to the
company. I want to thank them for their loyalty. This company has
extraordinarily strong international assets. I am totally committed to
restoring a stable financial situation and enhancing profitability. I am
confident we shall be successful."

Contact Information:

Investor Relations
Paris
Laura Martin
Telephone: 917.378.5705
Laurence Daniel
Telephone: +33 (1).71.71.1233


VIVENDI UNIVERSAL: Issues Update on Company's Refinancing Needs
---------------------------------------------------------------
Following a conference call with investors and journalists on the company's
unaudited financial results for the first half of 2002 earlier Wednesday,
Vivendi Universal issued the following update relating to its refinancing
needs:

Maturities of loans currently granted to Vivendi Universal and its
subsidiaries total approximately 5.6 billion euros through the end of March
2003.

They principally include the following maturities:

    - 0.3 billion euros end August 2002
    - 0.4 billion euros in October 2002
    - 0.1 billion euros in December 2002
    - 1.6 billion euros on VUE, November 3, 2002

   Sub-total 2.4 billion euros

    - 1.8 billion euros for early redemption of bonds
      convertible into VE shares (March 2003)

   Total 4.2 billion euros

In addition, in July 2002, 0.8 billion euros of commercial paper and 0.6
billion of diverse financial debts were repaid.

In total, refinancing from July 2002 to March 2003 is expected to amount to
5.6 billion euros.

However, from August 14 to December 31, 2002, the only amounts that are
anticipated to require refinancing total 2.4 billion euros, including 1.6
billion for VUE.

These needs will be covered by the current facility of 1 billion euros,
which is expected to be increased to 3 billion euros before the end of
September of 2002.

Additionally, the company has asked its banks to renew the 1.6 billion euro
loan to VUE.

The financing already all in place, the credit facilities under negotiation
and the asset disposals authorized by the Board of
Directors will enable the company to meet its commitments.

Contact Information:

Investor Relations

Paris
Laura Martin
Telephone: 917.378.5705

Laurence Daniel
Telephone: +33 (1).71.71.1233

New York
Eileen McLaughlin
Telephone: +(1) 212.572.8961


VIVENDI UNIVERSAL: Reports 2002 Half-year Results
--------------------------------------------------
Vivendi Universal announces unaudited preliminary financial results for the
first half of 2002. In doing so, Chairman and
Chief Executive Officer, Jean-Rene Fourtou commented as follows:

COMMENTS BY JEAN-RENE FOURTOU, CHAIRMAN AND CHIEF EXECUTIVE
OFFICER

"My primary objective is to create as much value for shareholders as
possible by focusing on three priorities. First, reducing debt. Second,
improving the profitability of the businesses.
Third, determining a long-term strategy for Vivendi Universal: this process
is well advanced and the Board will decide on the long-term strategy at the
September 25th Board meeting.

"Vivendi Universal has around 10 billion euros of debt above the comfortable
level allowed by a triple-B rating, assuming no access to the cash flow of
Cegetel. We must decrease debt by at least this amount as soon as possible,
by:

-- Selling businesses. We are committed to selling assets for a minimum
amount of 10 billion euros in the two years to come, 5 billion euros of
which will be completed during the next 9 months.

-- Cutting the cash drain of the company, mainly the non-French activities
of the Canal+ Group, the Internet activities and the huge level of corporate
overhead; and,

-- Enhancing the cash flows of the ongoing businesses.

"In the short term, due to the structure of our debt, Vivendi
Universal is facing a liquidity problem despite the value of our assets. On
July 10, Vivendi obtained a new bank facility of 1 billion euros. This new
money has not yet been used. As announced in July, we are presently
negotiating a new facility of 3 billion euros, which will include the first
1 billion euros. Vivendi
Universal reached a framework for agreement, and we expect this new facility
to be signed soon.

"We welcome today the arrival of Jean Bernard Levy as COO of
Vivendi Universal, who will help me implement numerous projects, challenge
management and better monitor the different businesses of the group. My
management principles include strong corporate governance, communications
transparency, teamwork, and challenging the operating management.

"Despite good progress in revenue and operating income growth in the first
half, Vivendi Universal's net income before exceptional items and
amortization of goodwill is a loss of 0.06 euros per share. With the
decisions already taken regarding Canal+, the
Internet businesses, overhead reductions and the disposal of non-core
assets, Vivendi Universal's EPS (earnings per share) should increase
significantly.

"This company has extraordinarily strong international assets. I am totally
committed to restoring a stable financial situation and enhancing
profitability. I am confident we shall be successful."

PRO FORMA OPERATING RESULTS

   First Half

-- Consolidated revenue grew 8% to 30.6 billion euros reflecting growth at
all businesses except Music and Internet, which were down slightly
year-on-year.

-- Consolidated operating income grew 8% to 2.4 billion euros, primarily
driven by Vivendi UNIVERSAL Entertainment (VUE) and
Cegetel, and to a lesser degree Environmental Services and
Vivendi Telecom International. Operating income from businesses owned more
than 50% declined 6% to 469 million euros.

-- The changing euro/dollar exchange rate had little impact on the company's
first half results.

   Second Quarter

-- Consolidated revenue grew 5% to 15.5 billion euros primarily driven by
VUE, Cegetel and Environmental Services.

-- Consolidated operating income grew by 5% to 1.4 billion euros.
Operating Income from businesses owned more than 50% improved by 10% to 379
million euros.

FIRST HALF PROFIT AND LOSS HIGHLIGHTS

Interest Expense, Net: In the first half, net interest expense increased 8%
to 674 million euros, driven by higher average debt levels and a higher cost
of debt.

Financial Provisions: Financial provisions of 3.4 billion euros were
recorded in the first half of 2002, compared to 128 million euros in the
same period in 2001. This considerable increase primarily reflects the
overall market decline since the beginning of the year and management's
reassessment of the growth potential and carrying values of certain publicly
traded and privately held investments. The most significant provisions
related to certain international telecoms operations, Vivendi Universal
puts, Sithe
Energies, call premiums, AOL Europe, Softbank Capital Partners and certain
quoted shares.

Other Income (Expense): In the first half of 2002, other expenses of 154
million euros were incurred, principally comprised of 68 million euros of
foreign exchange losses and a 239 million euros premium expense on the
buy-back of Vivendi Universal puts, partially offset by 194 million euros of
capital gains of the sale of portfolio investments (primarily Vinci) and 30
million euros of dividends from unconsolidated companies. In the first half
of 2001, other income of 286 million euros was earned, comprised of 154
million of foreign exchange gains, 122 million euros of capital gains of the
sale of portfolio investments, 35 million euros of dividends from
unconsolidated companies and 25 million euros of other expense.

Exceptional Items, Net: Exceptional items are primarily comprised of capital
gains (losses) on the disposal of and/or dilution of the company's interest
in other companies. In the first half of
2002, net exceptional income totaled 2.1 billion euros, reflecting a 1.6
billion euro net gain on the BSkyB transactions, a 630 million euro gain on
the Vivendi Environnement transaction and a 144 million euro gain on the
disposal of Canal Digital, partially offset by a 253 million euro loss on
the disposal of
Vivendi Universal Publishing's (VUP's) business-to-business and Health
activities and 8 million euro loss provision on the disposal of other
publishing operations. Comparable net exceptional income in 2001 totaled 1.2
billion euros, the principal components of which were gains of: 700 million
euros on
AOL France, 160 million euros on Eurosport, 125 million euros on
Havas Advertising and 121 million euros in the Dalkia/EDF transactions.

Income Tax Expense: In the first half, the company's income and deferred tax
expense decreased 34% to 365 million euros.

Equity in Losses of Unconsolidated Companies: In the first half, the equity
in losses of unconsolidated companies increased by 11% to 273 million euros,
primarily due to increased losses from
Telecoms affiliates, principally Elektrim and Xfera, and reduced equity
earnings from VUE because it is consolidated (not equity accounted)
following the May 2002 acquisition of the entertainment assets of USA
Networks. Partially offsetting these increases were reduced equity losses
from Internet and CANAL+
Group affiliates.

Goodwill Amortization: Goodwill continues to be amortized under
French GAAP. Goodwill amortization declined 17% to 642 million euros in the
first half, primarily owing to impairment charges taken at the end of 2001.

Goodwill Impairment: In light of deteriorating economic conditions since
December 2001 and the impact of higher financing costs for the company,
management has recorded a preliminary impairment charge of approximately 11
billion euros as of June 30, 2002. The 11 billion impairment is the sum of
3.8 billion euros relating to Canal+ Group, 3.5 billion relating to Music,
2.6 billion relating to VUE and 1.1 billion relating to Telecom and
Internet. This adjustment reflects management's opinion of the fair value of
the core assets on a permanent ongoing concern basis within Vivendi
Universal.

Minority Interest: In the first half, minority interest expense at 154
million euros declined by 80%, due primarily to the impact of the financial
provisions and goodwill impairment, partially offset by improved
profitability at Cegetel and VUE and the inclusion of a full six month
results of Maroc Telecom and two month results of the entertainment assets
of USA Networks.

Net Income (Loss) and Earnings (Loss) Per Share: A net loss of
12.3 billion euros or 11.32 euros per basic share incurred in the first half
of 2002, down from net income of 22 million euros or
0.02 euros per basic share earned in the comparable prior year period.
Excluding goodwill amortization and impairment, financial provisions and net
exceptional items, the net loss would be 66 million euros or 0.06 euros per
basic share in the first half of
2002, compared to net income of 295 million euros or 0.27 euros per basic
share in the comparable prior-year-period.

UPDATE ON SHORT-TERM LIQUIDITY POSITION

On July 10, 2002, the company obtained an additional 1 billion euro
unsecured credit facility from a group of seven banks. This facility has not
been used to date and will only be used in part by the end of August. As of
August 13, Vivendi Universal had cash and unused credit facilities of 1.6
billion euros. The company continues to work with its banks to put in place
additional financing to meet its long-term financing requirements. The
company expects to conclude an agreement shortly.

DEBT

At June 30, 2002 French GAAP debt (defined as gross debt minus cash & cash
equivalents), was around 35 billion euros compared with approximately 37
billion at December 31, 2001. Excluding
Vivendi Environment, debt fell to around 19 billion at June 30 from 21
billion euros at December 31, 2001.

Vivendi Universal's June 30 debt balance included around 16 billion euros
for Vivendi Environment. Vivendi Environment reported net debt of
approximately 15 billion euros. The primary differences relate to short and
long term receivables and marketable securities.

TREASURY SHARES

The board of directors has decided to cancel 20.8 million treasury shares,
as authorized at the shareholders meeting on
April 24, 2002. Because these shares were available for stock option plans,
call options may be purchased to meet potential option exercise.

BUSINESS UNIT HIGHLIGHTS

Businesses owned more than 50%

Music (92% owned):

First Half Highlights: For the first half of 2002, Universal
Music Group's (UMG's) revenues were down 4% to 2.9 billion euros.
In a weak music market, which reported declines in most major markets
worldwide, UMG increased market share. In the U.S. for example, UMG achieved
an unprecedented year-to-date current album market share of over 30%,
according to SoundScan, and a record-breaking single-week current album
market share of approximately
42%. Major album sales in the first half included those by established
artists Eminem, Nelly and Sheryl Crow, the Grammy
Award(R)-winning album of the year "O Brother Where Art Thou?" soundtrack,
the NOW 9 compilation album, as well as new and developing artists such as
Ashanti, Vanessa Carlton, Musiq and
Cam'Ron, among others. Other best sellers included Ronan
Keating's second solo album, Paulina Rubio's debut album in
English, and Japan's Fukuyama.

Operating income was 28% below last year's comparable period.
Excluding other income from the gain on the sale of UMG's interest in MTV
Asia to Viacom and the disposition of real estate in connection with office
moves, principally in Tokyo, operating income declined 45%. Lower sales of
releases carried over from
2001, and the expected lighter release schedule in the first quarter,
combined with lower margins in the product mix and increased A&R costs all
contributed to the decline.

Second Quarter Highlights: UMG's revenues of 1.5 billion euros for the
quarter were down 2%. Excluding foreign exchange fluctuations (largely the
decline of the dollar against the euro), revenues increased by 0.2%.
Operating income was 14% below last year's second quarter or 38% excluding
the other income discussed above. The decline primarily reflects lower
margins in the product mix and increased Artist and Repertoire (A&R) costs,
partially offset by lower marketing and overhead costs.

2002 Outlook: UMG's release schedule for the remainder of 2002 includes
albums from Shania Twain, U2, Bon Jovi, Eminem (8 Mile
Sound Track) and a new album from the recently signed Mariah
Carey. Local repertoire releases include albums from Johnny
Hallyday, Star Academy, Gerald de Palmas and Zazie (France); No
Angels and DJ Oetzi (Germany); Pedro Fernandez and Limite
(Mexico); Powderfinger (Australia); Jacky Cheung (Taiwan); Spitz, The High
Lows and Ego-Wrapping (Japan), and The Rolling Stones Greatest Hits
(non-U.S.).

Publishing (100% owned):

First Half Highlights: Vivendi Universal Publishing (VUP) reported first
half revenues of 2.1 billion euros, up 5%, and operating income of 95
million, down 20%.

VUP's ongoing businesses (which exclude the Business-to-Business and Health
divisions sold at the end of June) reported revenues of 1.7 billion euros in
the first half, up 9%, primarily reflecting growth at Games and Houghton
Mifflin. Operating income from ongoing businesses increased by 32 million
euros in the first half (to 43 million euros), driven by improvements at
Games and Publishing & Education.

The Games division reported revenue growth of 68% to 294 million euros, and
operating income increased more than tripled to 48 million euros, primarily
owing to the release of Blizzard's
Warcraft III in the period, which shipped almost 3 million units in June,
and approximately 4.5 million units year-to-date.

The Publishing & Education division (school, college and kids interactive)
reported 5% revenue growth to 1.1 billion and an 82% reduction in operating
losses (representing an operating income improvement of 25 million euros),
driven by Houghton Mifflin, college, adoption in California, and strength in
Spain and
France. Traditionally, the first half has slower sales in the sales cycle,
the peak being in the third and fourth quarters for back-to-school.

The Consumer division reported 15% lower revenues and 10 million euros lower
operating income in the first half, primarily owing to the soft advertising
market. However, the month of June showed a reverse of this trend.

Revenues and operating income from the Business-to-Business and
Health divisions, which were sold at the end of June, declined 8% and 53%,
respectively, in the first half.

Second Quarter Highlights: For the second quarter, VUP reported revenues of
1.2 billion euros, up 8%. VUP's ongoing businesses reported revenues of 981
million euros in the second quarter, up
13%. Strength was driven by growth at Games and Houghton Mifflin.

2002 Outlook: Typically, the second half of the year is the largest in terms
of profits and free cash flow for the Publishing division. The outlook for
2002 remains strong, with growth in
Games and Houghton Mifflin driving results, which could, however, be
impacted by exchange rates. The Games division has a strong release schedule
in the third and fourth quarters in both PCs and consoles (Lord of the
Ring/Tolkien, Malice, Scorpion King). The company expects a strong
back-to-school season in education, especially in Europe and California.

Vivendi UNIVERSAL Entertainment (VUE) (86% owned):

First Half Highlights: VUE achieved 46% actual (non-comparable) revenue
growth, principally due to the impact of the acquisition of USA Networks on
May 7, 2002. In May 2002, Universal Studios and the entertainment assets of
USA Networks, Inc. combined strengths to create Vivendi UNIVERSAL
Entertainment, with fully integrated film, television and recreation
divisions. On a pro forma basis, VUE reported 21% revenue growth in the
first half.

Universal Pictures finished the first half of the year with $759.0 million
in worldwide box office, which is consistent with its strong performance of
the last four years.

In home video, for the first six months of 2002, Universal ranked #2 among
all studios in consumer spending for DVD sell-through.
In addition, Universal ranked #2 in VHS rental revenue and #2 in DVD rental
revenue (Source: Rentrack).

USA Network has become the number one cable network in key demographics and
the number two in households; its original series, Dead Zone and Monk, have
become the two most-watched drama series on basic cable (Source: Nielsen).

In Recreation, lower revenue at Universal Studios Hollywood (higher
attendance more than offset by lower per capita spending) contributed to 7%
lower recreation revenue in the first half.

VUE operating income grew by 36% on a pro forma basis in the first half
primarily because of strength at Universal Pictures and Universal
Television, offset in part by cable advertising revenue and theme parks.

In connection with the creation of VUE, an audit of pro forma accounts is in
process, which may lead to adjustments to the US
GAAP accounts.

Second Quarter Highlights: VUE achieved 53% actual (non-comparable) revenue
growth, principally owing to the impact of the acquisition of the
entertainment assets of USA Networks on
May 7, 2002. On a pro forma basis VUE reported 18% growth in the second
quarter.

Universal Pictures reported strong revenue growth, owing to strong
theatrical performance from titles such as The Scorpion
King and The Bourne Identity. In home video, the second quarter reported
another strong slate, with Spy Game and Oscar winners A Beautiful Mind and
Gosford Park.

Universal television reported 31% higher revenue primarily owing to the
syndication of Just Shoot Me. Cable revenues and operating income fell in
the second quarter owing to lower advertising revenue than the prior year
period.

Recreation reported 20% lower revenue, as lower per capita spending more
than offset higher attendance at Universal Studios
Hollywood as well as lower management fees from Universal Studios
Japan.

VUE operating income grew 60% on a comparable (pro forma) basis in the
quarter primarily because of strength in film, home entertainment (VHS and
DVD and television), offset in part by operating income declines in cable ad
sales and theme parks.

In connection with the creation of VUE, an audit of pro forma accounts is in
process, which may lead to adjustments to the US
GAAP accounts.

2002 Outlook: VUE expects to have a strong second half, driven by
Universal Pictures and Universal Television, partially offset by
Recreation. Key upcoming film releases include Red Dragon
(October 4), and 8 Mile (November 8). Key upcoming home entertainment
releases include The Scorpion King (October 1) and
E.T. The Extra-terrestrial (October 22).

CANAL+ Group (100% owned):

First Half Highlights: CANAL+ Group reported 8% revenue growth reaching 2.3
billion euros in the first half. On a comparable basis, revenue growth was
5% in the first half, primarily driven by StudioCanal, and CanalSatellite.
Globally, subscriptions increased to 16.17 million from 15.84 million one
year ago, representing 2% growth (net subscription additions of 329,000)
over the past 12 months. Digital subscribers increased 19% year-over-year to
6.5 million. ARPU (Average Revenue Per User) was slightly ahead of year ago
levels, mainly attributable to France and Benelux. Churn was flat in France
and lower in Benelux.

At StudioCanal, revenue grew 56% or 25% excluding the impact of the
integration of Expand. Strength at StudioCanal was driven in
France by successful produced or acquired films such as L'Auberge
Espagnole (1.6 million admissions), and revenue benefited from strong
video/DVD sales with Bridget Jones's Diary (still No. 1 on its first opening
month) and Zinedine Zidane "Comme dans un
reve". For the second consecutive year, a StudioCanal co-production (The
Pianist by Roman Polanski) won Canne's most prestigious award, the Palme
d'Or.

CanalSatellite revenue grew 11% in the first half, driven by approximately
250,000 higher subscriptions year-over-year combined with flat ARPU. Canal+
France Premium Channel revenue fell 1% in the first half because of lower
advertising revenue and lower subscription revenue. Canal+ Nordic revenue
increased
20% in the first half, driven by approximately 73,000 more subscriptions
year-over-year, coupled with ARPU growth and a positive foreign exchange
impact. Tele+ revenue grew 3% in the first half, largely owing to a
successful marketing campaign in the period and the launch in Italy of "Kit
number one" product (prepaid smart cards with six months subscriptions).

Canal+ Technologies revenue grew 8% in the first half. Canal+
Technologies, which now counts 14 million digital set-top boxes worldwide
using its conditional access and interactive TV technologies, has launched a
new Mediaguard conditional access smart card, which is expected to result in
the eradication of piracy.

On a pro forma basis, operating losses increased by 31% (16 million euros
lower) owing to higher soccer rights costs at
Canal+ France, offset in part by cost savings at Canal+ France and improved
Tele+ performance.

During the period, Vivendi Universal and CANAL+ Group, shareholder of Tele+,
in Italy, signed a conditional memorandum of understanding during the
quarter to sell Tele+ to News Corp.
The companies are working on a definitive agreement, which will then be
submitted to the competent authorities. In Spain,
Sogecable, in which CANAL+ Group has a 21.3% stake, and
Telefonica agreed last May to merge Via Digital and Sogecable.
Pending regulatory approval and at the end of the operation,
Telefonica, Prisa and CANAL+ Group will own equal stakes in
Sogecable.

In the Nordic countries, CANAL+ Group and Telenor signed a definitive
agreement to complete the sale of the 50% stake held by CANAL+ Group in the
Nordic digital TV platform Canal Digital to Telenor on June 14. This
agreement also secures exclusive
Direct-To-Home (DTH) distribution of Canal+ Nordic's premium channels and
pay-per-view services on Canal Digital in the region. The final agreement
provided for a total payment of 290 million euros. In Poland, the new merged
digital TV platform Nowa
Cyfra+ was launched on March 1.

Second Quarter Highlights: CANAL+ Group reported 5% revenue growth to 1.1
billion euros in the second quarter. On a comparable basis (pro forma),
revenue growth was 1% primarily driven by StudioCanal, CanalSatellite and
Canal+ Nordic.

CANAL+ Group reported breakeven operating income in the second quarter
compared to operating losses of 15 million euros in the second quarter of
the prior year, and a loss of 4 million euros on a comparable basis. The
improvement was due to the strength at
StudioCanal, CanalSatellite, Tele+, Canal+ Nordic and Canal+
Benelux as well as cost reductions at Canal+ France Premium
Channel, offset in part by weakness at Canal+ Poland and
Universal Studios Network in the quarter.

2002 Outlook: On July 23, 2002, Vivendi Universal announced a plan to
strengthen the future and growth of Canal+ by giving the company the means
to finance its growth and foster creative production in both film and
television. The plan aims to group around Canal+ SA, a listed company that
holds a licence from the
French media authority CSA, what are essentially the core businesses of the
CANAL+ Group. At the same time, the plan will provide new resources for
Vivendi Universal.

Internet (100% owned):

First Half Highlights: On a pro forma basis, Internet revenue fell by 2% and
operating losses improved 6% in the first half of
2002 compared with the prior-year period. During the first half of 2002, the
majority of the Internet group's businesses experienced revenue growth.
Overall, however, this positive trend was negatively affected by lower
revenues from advertising based businesses, which continued to suffer from
the weakness in the online advertising market. Strong cost control
throughout the
Internet segment resulted in reduced operating losses in the first half for
every Internet business.

In the U.S., VUNet USA network reached over 18 million unique visitors a
month. EMusic acquired its 50,000th subscriber (making it the Internet's
most popular music subscription service).

Second Quarter Highlights: On a pro forma basis, Internet revenue fell 15%
in the second quarter compared with same period a year ago. This was largely
attributable to declining online advertising revenues for the U.S.
properties, offset in part by
49% higher revenue at VU Net Europe and 30% higher revenue at
EMusic. Second quarter operating losses benefited from the restructuring of
the Internet operations initiated 12 months ago, as operating losses were
flat in the second quarter of 2002, despite lower revenue.

2002 Outlook: The Internet businesses are restructuring to reduce their
operating cash use and will narrow their portfolio to focus on
self-sustaining strategic businesses.


Vivendi Telecom International (excludes Maroc Telecom) (various ownership
interests)

First Half Highlights: Vivendi Telecom International (VTI) reported first
half revenues of 233 million euros, up from 97 million euros in the prior
year comparable period and operating income of 25 million euros up from 2
million euros in the first half of 2001. These significant improvements
primarily reflect the full consolidation of Monaco Telecom in the second
half of
2001 and Kencell (Kenya) in December 2001.

Second Quarter Highlights: Revenues increased 128% to 114 million euros and
operating income more than tripled to 10 million euros, for the reasons
discussed above.

2002 Outlook: These assets will be used as a source of cash.

Businesses owned less than 50%

Cegetel (44% owned; 35% of SFR):

First Half Highlights: For the first half of 2002, Cegetel's revenues
increased 14% to 3.4 billion euros and operating income grew 30% to 747
million euros. The improved results reflect strong performances of both the
mobile and fixed telephony services divisions.

At SFR, revenues increased 12%, and operating income increased
23%. SFR's customer base (including SRR) grew by 427,000 to approximately
13.0 million customers. SFR's market share of gross additions increased 1.5
percentage points to 34.8% from 33.3% in the first half of 2001. ARPU from
prepaid customers increased 7% to 20.7 euros, and ARPU from postpaid
customers increased 1% to
58 euros, compared to the first half of last year. Additionally,
SFR was successful in reducing acquisition cost per gross addition by 11% in
the same period. The monthly churn rate rose to just over 2%. Data and
service revenue per average customer rose significantly (40%) in the first
half of 2002 compared with the prior year period.

Operating results for Cegetel's fixed telephony services division continued
to improve, resulting in 31% revenue growth mainly due to local traffic
opened to competition since January 1, 2002, and a 26% reduction in
operating losses in the first half.

Second Quarter Highlights: In the second quarter, Cegetel's revenues
increased 10% to 1.7 billion euros and operating income grew 19% to 388
million euros.

At SFR, revenues increased 9%. During the second quarter of 2002,
SFR's customer base (including SRR, its subsidiary in La Reunion, an
overseas department of France) grew by 219,000 to approximately 13 million
customers. SFR's market share of gross additions increased 1.6 percentage
points to 35.9% from 34.3% in the second quarter of 2001. ARPU from prepaid
customers increased
9% to 20.7 euros, and ARPU from postpaid customers was flat at
58.2 euros, compared to the second quarter of last year.
Additionally, SFR was successful in reducing acquisition costs per gross
addition by 11% in the same period. The monthly churn rate rose to just over
2%. Data and service revenue per average customer rose significantly (40%)
in the 2002 second-quarter compared with the prior-year period.

Operating results for Cegetel's fixed telephony services division continued
to improve during the quarter, resulting in revenue growth of 25%, mainly
due to local traffic opened to competition since January 1, 2002.

2002 Outlook: Full year 2002 results are expected to confirm the first
half-year trends.

Maroc Telecom (35% owned):

First Half Highlights: Maroc Telecom's revenue grew by 2% in the half, in
line with expectations. In the same period, Maroc
Telecom's operating income fell 7%, primarily due to increased depreciation
resulting from a reduction in the estimated useful life of certain fixed
network equipment. On a like-to-like basis, operating income would have
increased 5% in the first half.

Second Quarter Highlights: Maroc Telecom's revenue fell 1% in the quarter
due to actions taken on bad debt and the resulting cancellation of
subscriptions. Operating income fell 27% in the quarter primarily due to
increased depreciation discussed above.
On a like-to-like basis, operating income would have increased 3% in the
quarter.

2002 Outlook: Second half results are expected to improve at
Maroc Telecom.

Vivendi Environnement (41% owned):

The company's environmental services businesses are operated by
Vivendi Environnement.

First Half Highlights: Vivendi Environnement achieved revenues of
15 billion and operating income of 1 billion, representing revenue and
operating income growth of 7% and 5%, respectively, in the first half.
Excluding non-core businesses in the process of being divested, revenue
growth was 9% and operating income growth was 8%.

In the Water business, growth in France was due to the continued good
results of the water distribution business and stability in the water
engineering business. In the U.S., the solid continuation of the municipal
outsourcing businesses and new contracts in the industrial outsourcing
business contributed to growth. The outsourcing business in other countries
was also encouraging, due to start-ups or new contracts signed in 2000/2001,
notably in Central Europe, Morocco and Asia Pacific.

In a less than favorable economic environment, the Waste business also
returned positive results, driven by growth in France and abroad, largely
due to developments in Northern Europe and Asia
Pacific. The full first half-year impact of the Marius Pedersen acquisition
in 2001 also benefited Waste's results. In the Energy
Services business, results were stable in France reflecting the combination
of lower gas prices as of April 1, 2002 and the seasonality of cogeneration
activities, which are concentrated in the winter months. Outside France, new
contracts in Tallinn
(Estonia), Vilnius (Lithuania) and Pozan (Poland) came on line.

The acquisitions of Siram in Italy and Cram in France, combined with the
final integration of the former EDF business also contributed to growth. The
Transportation business benefited from contract development and extension in
France, the acquisitions of
Verney and Yellow Transportation and the impact of the BBA and the Combus
contracts as well as developments in Finland, Poland, Belgium and the Czech
Republic. FCC also turned in positive results, particularly in the cement
business due to the expansion of the Spanish construction industry.

Second Quarter Highlights: Vivendi Environnement achieved revenue of 7.5
billion and operating income of 0.5 billion, representing revenue and
operating income growth of 3% and 2%, respectively, in the second quarter.

2002 Outlook: The first half results provide confidence, within a stabilized
economic environment, for the medium-term growth objectives of Vivendi
Environnement. This has been further strengthened by the receipt of new
contracts since the beginning of the year.

For additional information and discussion of results for
Vivendi Environnement, please refer to Vivendi Environnement's press release
dated August 7, 2002.

OTHER DEVELOPMENTS

A number of related shareholder class action suits, which allege violation
of the Securities Exchange Act of 1934 by the company and certain of its
former officers, have recently been filed in the United States District
Courts in California and New York. The cases are in the early stages and the
company has no further comment on them at this time.

FINANCIAL SCHEDULES

As an integral part of this press release, Vivendi Universal has attached
important financial information, all in accordance with
French GAAP, including:

-- Preliminary first half Consolidated Statement of Income;
-- Preliminary first half business segment results (actual and
   pro forma);
-- Preliminary second quarter business segment results (actual
   and pro forma);
-- Preliminary first half supplemental financial information
   (actual and pro forma);
-- Preliminary second quarter supplemental financial information
   (actual and pro forma).

VIVENDI UNIVERSAL
PRELIMINARY CONSOLIDATED STATEMENT OF INCOME
(French GAAP, unaudited)


                    Six Months Ended June 30,
                                     2002              2001 (2)
                                       (In millions of euros,
                                     except per share amounts)

Revenues                             E 29,990          E 26,443
Cost of revenues                     (20,798)          (17,930)
Selling, general and
administrative expenses             (6,837)           (6,499)
Other operating expenses, net        (65)             (125)

Operating income                      2,290             1,889
Interest expense, net                 (674)             (625)
Financial provisions                  (3,402)             (128)
Other income (expense)                (154)              287

Income before exceptional
items, income taxes,
goodwill amortization, equity
interest and minority interest        (1,940)            1,423
Exceptional items, net                 2,068             1,237
Income tax expense                     (365)             (557)

Income before equity interest,
goodwill amortization
and minority interest                 (237)            2,103
Equity in losses of
unconsolidated companies              (273)             (245)
Goodwill amortization                  (642)             (769)
Goodwill impairment                   (11,000)             (312)

Income (loss) before
minority interest                    (12,152)              777
Minority interest                        (154)             (755)

Net income (loss)                   E (12,306)        E      22

Earnings (loss) per basic share     E  (11.32)        E    0.02

Net income (loss) before goodwill
amortization and non-recurring
items (1)                         E     (66)        E     295

Earnings (loss) per basic share
before goodwill amortization
and non-recurring items           E   (0.06)        E    0.27

Weighted average common shares
outstanding (in millions)         1,086.9           1,081.3

    (1) Net income before goodwill amortization, goodwill
impairment, financial provisions and net exceptional items, after
the tax impacts ((333) million euros in 2002 and 111 million
euros in 2001) and minority interest ((403) million euros in 2002
and 190 million euros in 2001).

    (2) Certain selling, general and administrative and
other operating expenses have been restated to give effect to
changes in accounting policies at CANAL+Group. This had no
impact on operating income.


=============
G E R M A N Y
=============


AMATECH AG: Court Transfers Powers to Administrator; CEO Resigns
----------------------------------------------------------------
The competent Insolvency Court in Kempten has issued court orders including
a general injunction for business transactions and a transfer of
administrative powers for AmaTech AG and its two
German subsidiaries AmaTech Electronic Components Manufacturing
GmbH and AmaTech and its two German subsidiaries AmaTech
Automation GmbH to the preliminary insolvency administrator,
Martin Manstein - Attorney at Law/Munich.

The CEO af AmaTech AG, Mr. Willem Haverkamp resigned on August 5, from his
office and also from his offices as director of foreign and German
subsidiaries of AmaTech AG.

AmaTech AG decided to file for insolvency in July after the company was
unable to meet current payment obligations.

Founded in 1992 and publicly traded since June 2000, AmaTech AG develops,
produces and distributes contactless RFID-systems
(Radio Frequency Identifaction) such as contactless smart cards,
smard labels, animal tags, nail tags, disc tags, RFID key fobs and gas
bottle tags.

These systems are used for access control, payment transactions, security,
logistics, transport or animal tagging.

Amatech has subsidiaries in Ireland, USA and Singapore

The group reported a net loss of EUR 3.0 million on its unaudited
inerim figures as of March 2002.  Its balance sheet revealed
EUR27.8 million in assets and EUR 14.6 million on the same
Period, the Troubled Company Reporter Europe said on July 19.


BABCOCK BORSIG: Finds Employment for 650 Workers in Spain
----------------------------------------------------------
Babcock Borsig AG, which filed for insolvency last month, secures the work
of 650 of its workforce at its Spanish subsidiary, the engineering group's
insolvency administrator Helmut Schmitz says in a report obtained from the
AFX News.

Schmitz announced earlier that Babcock Borsig has saved some 12,000 jobs for
its total workforce of 21,000 employees.

The company announced that it is currently coordinating with
Roland Berger, a consultancy firm, regarding a restructuring plan, which
will include the creation of a lifeboat company, The Troubled Company
Reporter said on August 6.

Previously, Roland Berger, together with BDO, had come up with a rescue
concept for Babcock Borsig but creditor banks refused to finance the plan.
The company had to file for insolvency thereafter, the report added.


CARGOLIFTER AG: Investor Willing to Inject EUR77MM for Takeover
---------------------------------------------------------------
A German investor is believed to be interested in taking over the technology
of the country's insolvent airship maker Cargolifter.
The entity is accordingly prepared to pay at most EUR77 million for the
deal, a report from Die Welt and Financial Times says.

The identity of the German investor will be disclosed at the end of the
week. Last weekend, Cargolifter's fate was sealed when the German government
failed to come up with a package that would help the company continue to
operate.

A previous plan, put forward by Cargolifter's administrator, provided for a
bank loan of more than 40m euros from the central government, to be used in
the development of the 'Aircrane', the papers add.

Rolf-Dieter Monning is Cargolifter's insolvency administrator.
Formal insolvency proceedings began in July 31 before the Cottbus
District Court. Cargolifter and six other subsidiaries are currently seeking
time to straighten both its operations and finances, the Troubled Company
Reporter Europe said on its August
13 issue.


PHILIPP HOLZMANN: Sells HSG, U.S. Unit to Bilfinger for EUR43 MM
----------------------------------------------------------------
Philipp Holzmann's creditors committee approves the sale of the company's
building management subsidiary, HSG Gruppe, to rival
German construction firm Bilfinger Berger AG.

According to the Associated Press, a 100-employee subsidiary that does
renovation and maintenance for the U.S. Army was also included in the
purchase that cost Bilfinger EUR43.8 million.
HSG had turnover of USUSD171 million last year and employs 1,950 workers.

HSG is considered one of the healthier parts of Holzmann.  It generated net
profits of more than EUR7 million last year, says
German daily Die Welt.

"HSG is an outstanding addition in the building up of our real-estate
service business," Bilfinger Chairman Herbert Bodner told the Associated
Press.

Last month, the company also shipped its Dubbers Malden unit to Dutch
counterpart Dura Vermeer for an undisclosed amount.  This tunnel-and-bridge
construction unit posted 2001 sales of around
EUR30 million (USUSD30.23 million) and employs 100 workers in the
Netherlands, the Troubled Company Reporter-Europe said in its
July 23 report.

Holzmann, Germany's second-largest construction group, is currently being
overseen by an insolvency administrator after filing for creditors
protection in March.  The company succumbed to bankruptcy for the second
time in three years after failing to repay USUSD1.6 billion in loans amid an
industry slump that pushed it to a loss of USUSD230 million last year.

Holzmann employs approximately 23,000 people. It owns J.A. Jones,
a profitable U.S. subsidiary based in Charlotte, North Carolina.


RTV FAMILY: TV Producer Faces Imminent Collapse
-----------------------------------------------
German TV producer RTV Family faces possible insolvency says shareholder
protection agency SdK, Die Welt and the Financial
Times report.

The papers add that the company had to call an EGM as more than half of its
share capital has frittered away.

In the first half of 2002, turnover nearly halved to EUR16.7 million, and
the company fell deep into the red. SdK accused the company of lacking
transparency, while the EGM received the suggestion that a new share issue
be planned, at a rate of 15 to
1, with a cash capital increase of 1 to 3, with the ensuing shares not being
traded on the market.

Previously In June, the Troubled Company Reporter-Europe said that RTV
Family's auditors revealed losses over 50% in Capital
Stock.

Separately, in July, the company announced that together with its former
owner and previous Managing Director of Off the Fence,
Ellen Windemuth, agreed that Ellen Windemuth takes over all shares of Off
the Fence and in return releases RTV Family
Entertainment AG from its obligations.


SER SOLUTIONS: Former German Parent Announce Validation of MBO
--------------------------------------------------------------
SER Solutions, Inc., a leading provider of innovative business software
solutions, along with their former German parent company, SER Systems AG,
announces that the MBO transaction completed on June 12, 2002 between SER
Systems AG and the U.S.
Company has been certified and is final.

The June 12, 2002 MBO agreement has been confirmed as a complete, valid and
binding transaction by the District Court of Neuwied
(Germany) court-appointed trustee assigned to oversee SER Systems AG's
insolvency proceedings.

On June 12, 2002, SER Solutions, Inc. announced the successful completion of
the company's management buyout (MBO), from its former German parent company
SER Systems AG. On July 4, 2002, SER
Systems AG filed for insolvency in Germany.

As a result of this unfortunate business action, questions surfaced as to
the completeness and validity of the MBO transaction and the related events
that led to its completion.

"SER Solutions' MBO was architected carefully and structured soundly," said
Carl E. Mergele, CEO, SER Solutions, Inc. "We are pleased that our
transaction has been fully ratified and any outstanding questions put to
rest by the German court-appointed trustee."

The MBO includes all of the U.S.-based SER operations and those of SER
Technology Deutschland GmbH, based in Germany. One hundred percent (100%) of
both organizations were acquired from the former German parent company SER
Systems AG.

"SER Solutions has a strong history of providing software solutions to our
over 3,000 valued customers for the past 15 years," added Mergele. "The MBO
completion and subsequent validation clearly portrays to our customers that
we will continue our long standing tradition of delivering unique software
solutions and quality services to their business problems."

SER Solutions, Inc., headquartered in Dulles, Virginia, is leading the world
into The Knowledge Age. The company's core learning technology,
SERbrainware(TM), analyzes, understands, and responds to information with
human-like intelligence, empowering people and businesses with the knowledge
required to make fast and informed decisions.

This unique, invented technology forms the foundation for SER's
award-winning knowledge-enabled software suite, including
SERdistiller(TM), SERiMail(TM), SERglobalBrain(TM),
SERsynergy(TM), eDM(TM), SERprocess(TM) and SER's Call Processing
System(TM) (CPS).

Over 3,000 organizations worldwide use SER's software to maximize workplace
productivity, improve business efficiency, and enhance customer service.
Additional information on SER Solutions, Inc. is available at: www.ser.com

SER is a registered trademark and SERbrainware, SERdistiller,
SERiMail, SERglobalBrain, SERsynergy, eDM, SERprocess and Call
Processing System (CPS) are trademarks of SER Solutions, Inc.

Contact Information:

SER Solutions, Inc., Dulles
Anna Van Lier
Telphone: 703/948-5643
Email: anna.vanlier@ser.com


=============
I R E L A N D
=============


ELAN CORPORATION: Plans to Buy Back 15pc Share Capital
------------------------------------------------------
Beleaguered pharmaceutical company Elan seeks to request permission from its
shareholders during next week's general meeting to purchase 15pc of the
issued share capital, said sources, a report from the Irish Independent
says.

If the total amount were bought back it would equate to USD90 million worth
of shares based on the current value of the company, the paper says.

Elan's plans to buy back shares face dissent from brokers who believe that
Elan is currently facing a cash crunch making its move questionable. The
pharmaceutical company has debts of USD1.03 billion this year. The figure is
expected to rise up to
USD1.256 billion next year and USD1.688 billion the following year,
according to recently revealed second quarter results, the paper says.

Elan's spokesman says the company's plan to buy back the shares was to keep
the company's options open. He also a points to a recent purchase by US
company Pfizer of USD10 million worth of its shares in a bid to inspire
confidence in the stock, the daily ads.

But Elan is not allowed to purchase back any of its shares until after
November under the terms of the takeover of Dura.

Previously in May, when Elan's share price faced problems, reports said that
the company is set to buy back USD500 million worth of shares in a move to
boost the share price. Brokers questioned the company's plan at the time,
the Irish Independent reports.


=====================
N E T H E R L A N D S
=====================


PHARMING GROUP: Announces Spin-Off of ProBio Subsidiary
-------------------------------------------------------
Pharming Group N.V. (http://probioinc.com)announces the spin-off of its
subsidiary, ProBio Inc. in an agreement with existing
ProBio Management.

Pharming has further strengthened its financial position and focus on its
core biopharmaceutical operations through this restructuring transaction.

With ProBio as an independent entity, Pharming will be cleared of all
liabilities related to ProBio as well as commitments to fund
ProBio operations. Pharming will retain a 20% equity holding in
ProBio with representation on the ProBio board, together with a worldwide
license for relevant ProBio intellectual property.

ProBio is able to move forward with its technology development and licensing
operations independently. Having raised funding through a private placement,
ProBio expects to settle with its creditors rapidly, resulting in a
debt-free balance sheet and return to profitability.

By virtue of its strategic alliance with Pharming and others,
ProBio will focus on the Commonwealth and Asian markets and the emerging
veterinary, nutritional, agricultural, industrial and related biotech
applications of genomics, transgenic and cloning technologies.

"This agreement allows both companies of focus on their core
strenghts in order to deliver value to their respective stakeholders," said
Francis Pinto, CEO of Pharming. "Pharming has
strenghtened its financial position as a result of this transaction."

ProBio is uniquely placed within the biotechnology industry to provide
standardized procedures for the identification, valuation, patenting and
marketing of scientific and medical intellectual property (IP).

The company develops business models/plans for IP marketing for
universities, research laboratories and commercial enterprises, enabling
researchers to better benefit their research efforts and to provide a
standardized method of licensing and managing IP on their behalf. At
present, PofBio has offices in the USA and
Australia.


UNITED PAN-EUROPE: Results for Q2 Ending June 30, 2002
------------------------------------------------------
United Pan-Europe Communications N.V. (UPC), one of the leading broadband
communications companies in Europe, announces its operating results for the
three months ended June 30, 2002.

Highlights

Quarter 2, 2002 versus Quarter 2, 2001

-- Triple play1 revenues for Q2 2002 grew 15% to EUR 319m from
   EUR277m for the second quarter 2001

-- Total consolidated revenues from continued operations grew 36%
   to EUR 359m from EUR 265m for the second quarter 2001

-- Average revenue per revenue generating unit (RGUs)2 per month
   (ARPU)3 increased by 9% during Q2 2002 to EUR 13.27 from EUR
   12.16 for the second quarter 2001

-- New Services4 RGUs increased by 30% to 1,185,000 during Q2
   2002 from 911,000 for the second quarter 2001

-- UPC consolidated Adjusted EBITDA5 improved EUR 121m to
   positive EUR 67m during Q2 2002 compared to negative EUR (54)m
   for the second quarter 2001

-- UPC consolidated Adjusted EBITDA margin of positive 19% for
   the second quarter 2002 from negative (15)% for the second
   quarter 2001 Quarter 2, 2002 versus Quarter 1, 2002

-- Triple play revenues for Q2 2002 grew 3% to EUR 319m from EUR
   310m for the first quarter 2002

-- Total consolidated revenues grew 4% to EUR 359m from 346m for
   the first quarter 2002

-- New Services RGUs increased by 3% to 1,185,000 for the first
   quarter 2002 from 1,151,000 for the first quarter 2002, with
   34,000 subscribers added during the three months to June 30,
   2002

-- UPC consolidated Adjusted EBITDA for the second quarter 2002
   reached positive EUR 67m compared to EUR 55m for the first
   quarter 2002

-- UPC consolidated Adjusted EBITDA margin of 19% for the second
   quarter 2002 from 16% for the first quarter 2002

------
Notes:

(1) Triple play services include basic cable, digital, Internet
    and telephony (excluding DTH)

(2) RGUs are the sum of basic cable, digital, Internet, telephony
    and DTH subscribers. Q1 2001 restated removing Polish DTH
    subscribers

(3) ARPU calculation excludes German revenues and is based on
    residential subscribers only

(4) New Services are the sum of digital, Internet and telephony

(5) Adjusted EBITDA represents earnings before interest, tax,
    depreciation, amortisation, stock based compensation,
    restructuring and impairment charges

------

A view of the group's Balance Sheet and Income Statement submitted to the
SEC for the second quarter ending June 30, 2002 may be viewed at:
http://bankrupt.com/misc/q2upc.pdf


Management Comments

Commenting on UPC's results, John F. Riordan, President and CEO of UPC,
said:

"I am delighted to report that in the second quarter 2002, UPC has continued
to demonstrate operational improvement and strong financial results, with
all businesses benefiting from cost controls to improve their cash flow
generation. Our reviewed strategy continues to yield results. This strategy
is focused on the delivery of profitable triple play to analogue customers,
driving up penetration of Internet, analogue television, NPV (net present
value) positive telephony and a measured digital NPV positive rollout.

"UPC is also making progress in ensuring our balance sheet works for us. Our
working capital management has reduced the cash tied up in our debtor book
and good progress was made this quarter in the normalisation of trade
payables. These actions will ensure that, over time, our working capital
contributes positively towards the funding of the company.

"At the same time, revenues from continued operations grew 36% compared to
the second quarter of 2001. Despite the seasonal nature of the quarter, UPC
added 57,000 residential RGUs during the three months to June 30, 2002. I am
pleased to say that the revenue growth we have achieved in Q2 2002 compared
with Q1 2002, is in line with that achieved by our cable peers in the United
States, despite the noise surrounding our restructuring.

"The dramatic growth in our EBITDA, an improvement of EUR 121m from our
operating performance of one year ago, means that in Q2
2002 UPC self funded all of its operating expenses and more than 95% of its
capital expenditures in the quarter. These results highlight the progress
UPC is making towards becoming free cash flow positive.

"This strong operational and financial performance has been achieved through
the focus and dedication of UPC employees, who have continued to work with
me to drive the business forward despite the challenges generated by our
balance sheet restructuring.

"Restructuring Update As I announced in November 2001 we are in the process
of restructuring UPC's balance sheet and capital structure, to financially
delever the company at the corporate level. I am pleased to say that on July
24, 2002 UGC and the
Bondholder Committee announced that they had reached an Agreement in
Principle regarding the recapitalization of UPC.

"This announcement was an important and welcome step and UPC is now
participating in the negotiations for a definitive agreement.
It is expected that the recapitalisation of UPC's balance sheet will be
completed during the first quarter of 2003.

"I am also delighted that UPC's banks continue to be supportive regarding
the restructuring of the company's balance sheet.
Following the recent announcement by UGC, which was obviously a major step
in the negotiation process, UPC was able to announce a
45 day extension to waivers granted by senior lenders and UGC."

Gene Musselman, Chief Operating Officer of UPC comments:

"The strong focus on execution in 2002 continues to produce solid results.
ARPU grew 9% during the twelve months to June 30, 2002 and we now achieve an
average ARPU of EUR 13.27 from EUR 12.16 a year ago.

"We continue to focus on improving the service we offer our customers and
have been working to launch country web sites to offer an increased level of
product information for customers as well as an online customer care
function.

"We are introducing new and more transparent billing systems in the
Netherlands so as to give our customers more detailed information. We are
preparing for fully automated online billing and are able to offer new
customers the chance to subscribe online. In addition, we are rolling out a
new self-help diagnostic tool (Quickfix) for chello subscribers, which can
be downloaded on to home computers in the Netherlands. First reactions are
that this will prove popular in quickly resolving the more basic customer
issues.

"The continued strong growth in positive Adjusted EBITDA achieved in the
second quarter again demonstrates the successful implementation of
operational improvements and efficiencies and the benefits of scale
economies available through the operation of a pan-European platform. We
continue to see opportunities for further cost savings."

Group Financial Review

UPC's core operations continue to be focused into three principal divisions
split as follows:

(1) UPC Distribution - the residential business delivering the
    triple play of television, digital, Internet and telephony
    plus DTH and Other businesses.

(2) UPC Media - comprising our chello Internet / data and
    programming businesses under a single management team.
    Products are sold to UPC and third parties.

(3) Priority Telecom- a separately listed, but majority owned
    subsidiary, targeting the business market.

The Group results are detailed below, followed by a breakdown of the
financial results of our principal divisions.

United Pan-Europe Communications N.V. is one of the leading broadband
communications and entertainment companies in Europe.
Through its broadband networks, UPC provides television, Internet access,
telephony and programming services.

UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and in the
United States on the Over The Counter Bulletin Board
(UPCOY). UPC is majority owned by UnitedGlobalCom, Inc.

Contact Information:

Claire Appleby Bert Holtkamp
Director of Investor Relations
Telephone: 0044 (0) 207 647 8233
Email: ir@upccorp.com


===========
P O L A N D
===========


NETIA HOLDINGS: Another Shareholder Challenges Resolution
---------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of fixed-line
telecommunications services, announces that it received on August 13, 2002 a
decision of the District Court (S (1) d Okregowy) dated July 1, 2002 in
which the District Court resolved to forward to the Regional Court for the
city of Warsaw (S (1) d Rejonowy dla m.st. Warszawy) for its determination a
claim filed by another minority shareholder requesting the invalidation of a
resolution adopted at Netia's April 4, 2002 General Meeting of Shareholders.

The Company has not received a copy of the claim and is not aware of its
merits. If, however, the claim is based on the grounds of the previous
minority shareholder claim received on August 1,
2002, which the Management Board believes unsubstantiated, the
Company expects that it will file for this claim's dismissal as well.

Contact Information:

Netia Holding
Anna Kuchnio
Investor Relations
Telephone: +48-22-330-2061


===========
S W E D E N
===========


LM ERICSSON: Announce Approval of Microelectronics Transaction
--------------------------------------------------------------
Following the press release dated June 12, 2002 announcing the purchase by
Infineon Technologies AG of Ericsson's
Microelectronics division, Ericsson announces that the transaction has now
been approved by all responsible anti-trust authorities. Closing is expected
to occur before the end of
September 2002.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication companies in
the world.

Contact Information:

Investors
Gary Pinkham
Vice President
Investor Relations
Telephone: +46 8 719 0858, +46 730 371 371
Email: gary.pinkham@ericsson.com


LM ERICSSON: Obligation to SonyEricsson Could Cause Cash Crunch
---------------------------------------------------------------
Swedish telecom equipment maker Ericsson could be forced to inject EUR500
million into its losing joint venture with Sony, the Financial Times says.

But Ericsson Finance Director Sten Fornell, who also seats in the
SonyEricsson board, says an infusion is not likely this year, citing the
company's shrinking coffers.  The company is planning a SEK30 billion rights
issue later this year, but even this will not help, according to the paper.

Mr. Fornell said Ericsson's rights proceeds would be used to pay off SEK22
billion of short and long-term debt while a further
SEK7 billion would be used to cover restructuring costs.

Under its agreement with Sony, the Swedish partner is obliged to inject up
to EUR500 million into SonyEricsson by October 2003 if the joint venture's
equity-to-assets ratio falls below 30% and if
Sony asks for the payment.  The venture's equity-to-asset ratio was 21% at
the end of the second quarter, says the Financial
Times.

SonyEricsson is the world's fifth largest maker of handsets, focusing on the
top end of the market.  Sales, however, have been weaker-than-expected due
to lower demand and technical problems with some SonyEricsson phones.  The
joint venture recently reported a loss in the second quarter after a small
profit in the first quarter.  It now expects to end the year in red,
contrary to its forecast early this year.

Meanwhile, analysts interviewed by the Financial Times believe
Ericsson's finances could deteriorate further this year due to the extended
market downturn, with operators continuing to delay orders and equipment
deliveries due to severe cash constraints.
They believe that should Ericsson's credit status continues to deteriorate,
it could be forced to take back vendor financing sold to banks.  Ericsson
debt has recently been downgraded by both Moody's and Standard & Poor's to
junk status.

"With USD4.6 billion of cash left at the end of 2002, and USD6 billion in
debt Ericsson must stem the crippling cash outflows quickly or risk a
serious liquidity crisis.  With no outlook for recovery this must all come
from restructuring," the Financial
Times quoted Nomura analyst Richard Windsor in his note to clients.


===========================
U N I T E D   K I N G D O M
===========================


CENES PHARMACEUTICALS: Announces Divestment of ICT Business
-----------------------------------------------------------
CeNeS Pharmaceuticals plc announces the spin-out of its ion channel
technology development business (Channelwork) as part of the ongoing
restructuring program initiated in October 2001.

CeNeS' Channelwork business has been acquired by a new company called
Xention Discovery Ltd in a transaction led by MVM, a venture capital fund
manager specialising in life sciences start-up companies.

In addition to a minority shareholding in the new company, CeNeS retains
certain option rights over clinical candidates for the treatment of pain
disorders that arise from the research undertaken by Xention.

Under the terms of the transaction, Xention has acquired the
AutoPatch(TM) technology and all related intellectual property.
The seven CeNeS employees working on the project will also transfer to
Xention.

AutoPatch is a pioneering technology that enables high-throughput functional
screening of ion channel drug targets at speeds and in volumes not possible
with conventional technology.

This enhanced throughput will be exploited by Xention to address more
targets and to create more novel chemistry than would be possible using
traditional methods.

On completion CeNeS will receive consideration of GBP750,000 made up of a
minority shareholding in Xention valued at GBP375,000, which is to be
retained by CeNeS, and a loan note of GBP375,000.
The intellectual property assets disposed of by CeNeS were not valued in the
CeNeS consolidated accounts and the Channelwork business has historically
generated losses.

Under the restructuring plan, CeNeS is focusing on its core business in the
development, marketing and sale of drugs for the treatment of disorders of
the central nervous system (CNS) and pain, which has entailed reducing or
disposing of non-core activities.

Commenting on the divestment, Neil Clark, Chief Operating Officer and
Finance Director of CeNeS, said: "This divestment is another successful step
under our restructuring program.  We are pleased to retain a stake in the
future of this leading technology and in the potential drug candidates that
may be discovered by using it."

CeNeS is a biopharmaceutical company specialising in the development and
commercialisation of drugs for CNS disorders and pain control.

The company currently markets four products, and has research and
development assets targeting pain and CNS disorders.  The company is based
in Cambridge, England.

Xention Discovery Ltd is a drug discovery company based in
Cambridge, England focussed on ion channels as drug targets.


FILTRONIC PLC: Issues Notice on M & G's Investment's 13.22% Stake
-----------------------------------------------------------------
Pursuant to Section 198 of the Companies Act (as amended) the
Company has received notification from M & G Investments Limited in respect
of Prudential plc that as of August 8, 2002, the total notification interest
of Prudential plc in the ordinary shares of the Company is 9,795,708 being
13.22% of the issued share capital.


FILTRONIC PLC: Company Profile
------------------------------
Name:              Filtronic PLC
                   The Waterfront, Salts Mill Road
                   Saltaire, Shipley
                   West Yorkshire
                   BD18 3TT

Telephone:         (01274) 530622
Facsimile:         (01274) 531561
Website:           http://www.filtronic.com/

SIC:               IT Hardware Manufacturing
Employees:         3,318
Net Loss:          GBP25.5 million /USD39.1 million (2002)
Total Assets:      GBP251.9 million /USD385.9  million (2002)
Total Liabilities: GBP146.40 million /USD224.2 million(2002)

Type of Business:

Filtronic PLC designs and manufactures microwave products and compound
semi-conductors for cellular and broadband telecommunications systems and
military applications. The company has operations in the UK (North of
England, Yorkshire, Midlands, Scotland), in the US, in Finland, in China and
in Australia.

Trigger Event:

The company posted mounting losses in three years. In 2000, the company
reported GBP3.9 million in pre tax loss and another deficit of GBP21.2
million in 2001. In the group's 2002 financial statements, Filtronics
revealed GBP25.5 million in pre-tax loss.

The group's CEO, David Rhodes, warned in July that the global market
conditions for the business remain challenging and the short-term outlook of
the company remain unclear.

However, Filtronic will continue to improve efficiency of its businesses and
reduce its debt when practical. The development of compound semiconductor
based products and investment in the related technologies will remain the
principal technical focus of its operations, The CEO said.

Chief Executive Officer: Prof J D Rhodes CBE
Managing Director:       A R Needle
Finance Director:        J W Y S Samuel

Major Shareholders:      Prudential Assur Co Ltd 13.22%
                         FMR Corp & FIL 12.24%
                         The Capital Group Companies 4.28%
                         Legal & General Inv Mgmt 3.01%
                         Prof J D Rhodes CBE OBE 5.71%

Total Shares in Issue:   74.09m 10p ordinary shares

Bankers:                 Barclays Bank PLC
Financial Advisers:      Lazard Bros
Stockbrokers:            Cazenove
Auditors:                Ernst & Young LLP
Law Firms:               Pinsent Curtis Biddle , DLA
Financial PR Advisers:   Binns & Co Public Relations Ltd


LEVI STRAUSS: Moody's Cuts Debt Ratings With Negative Outlook
-------------------------------------------------------------
Levi Strauss & C0.'s debt rating were downgraded by Moody's
Investors Service, a report from the rating agency says. The following
ratings are:

US$619 million guaranteed senior secured revolving facility due
August 29, 2003, to B1 from Ba3

US$28 million guaranteed senior secured term loan A due August 29, 2003, to
B1 from Ba3

US$125 million guaranteed senior secured term loan B due August 29, 2003, to
B1 from Ba3

US$350 million issue of 6.8% senior unsecured Eurobonds due
November 1, 2003, to Caa1 from B2

US$450 million issue of 7% senior unsecured Eurobonds due November 1, 2006,
to Caa1 to B2

US$380 million issue of 11.625% unsecured global senior notes due January
15, 2008, to Caa1 from B2

US$125 million issue of 11.625% unsecured global senior notes due January
15, 2008, to Caa1 from B2

Senior implied rating to B2 from B1

Senior unsecured issuer rating to Caa1 from B2


The negative rating outlook remains unchanged.

This concludes Moody's review for a possible downgrade that was initiated on
July 2, 2002.

Moodys says, "the downgrade reflects the negative impact on the company's
level of cash generation from a weak economy and broad global competition
focused on price and fashion; significant upcoming cash outlays related to
plant closures and systems improvements; and required refinacings of its
$619 million credit agreement in August of 2003 and the $350 million issue
of 6.8% senior notes which matures in November of 2003."

Moody's adds that, "the negative outlook reflects the company's reliance on
the successful introduction of new products, improved delivery, and channel
or market share expansion to recover gross sales and margins and to reduce
debt levels."

"The rating continues to consider LS&Co.'s significant, but weakened, market
position as one of the world's largest branded apparel companies and the
benefits from the company's cost containment program including global
sourcing and SKU reduction."
Moreover, Moody's notes that "the B1 rating on the credit facility reflects
the benefits to the lenders in a distressed scenario of the security package
and the upstream guarantees from the direct and indirect Material Domestic
Subsidiaries. The rating also reflects the current maturity status of the
facility.
As of fiscal Q2-02, the $619 million credit agreement had amortizing term
outstandings of $153 million and had $478 million available under its
revolver."

"The collateral package includes a first priority perfected security
interest in present and future assets and properties of the borrower and the
Material Domestic Subsidiaries including inventories, certain real property,
machinery, equipment, contracts, trademarks, copyrights, patents, license
rights and general intangibles, other than Principal Property and related
equipment as defined in the existing credit agreement. The lenders have a
residual interest in the accounts receivable. The collateral also includes
100% of the stock of each Material
Domestic Subsidiary (except Restricted Subsidiaries as defined) and 65% of
the stock in certain foreign subsidiaries. Excluded from the collateral are
the foreign assets, the capital stock of the German and UK subsidiaries, and
property, plant and equipment that is covered under a negative pledge under
the senior note indentures."

Moodys also says that "the company also has available a domestic
$110 million accounts receivable facility and a $43 million
European accounts receivable facility, which are on the balance sheet. These
facilities fund a portion of the company's working capital needs."

"The Caa1 rating on the senior notes reflects the effective subordination of
a large senior debt claim to the secured creditors."

Moodys ends that "going forward, it will focus on LS&Co.'s liquidity, its
ability to improve its cash generation in the U.S. and Europe, to reduce its
inventory days, and to better manage its working capital. LS&Co.'s inability
to reduce its debt levels and improve its liquidity profile, given long
declining sales and profitability margins, may result in further negative
rating action."


NTL INCORPORATED: Announces Three and Six Months 2002 Results
-------------------------------------------------------------
SECOND QUARTER

-- Steady progress despite a challenging business environment
-- Achieved substantial progress on Company's planned recapitalization

Financial Highlights (a)

(In millions of pounds)              Q2 2002             Q2 2001
--------------------------- ------------------- -----------------
REVENUE
Home                                GBP 334             GBP 337
Business                               148                 139
Broadcast                              52                  49
TV Programming                         6                   5
NTL Europe                             87                  78
                                       --                  --

Continuing Operations                GBP 627             GBP 608
Discontinued Operations                -                  26
                                       -                  --
Total Revenues                       GBP 627             GBP 634
EBITDA
Continuing Operations                GBP 174             GBP 110
Discontinued Operations              -                   5
                                     -                   -
Total EBITDA (b)                     GBP 174             GBP 115


EBITDA(a)

Total EBITDA Margin % (b)                28%                 18%
--------------------------- ------------------- -----------------

(a) Discontinued operations comprise NTL Australia, CWC Off-Net and 1G
Networks. The financial results and commentary on pages 9 to 15 are shown in
accordance with FAS 144 and therefore include only NTL Australia within
discontinued operations.

(b) The components of EBITDA as defined by the Company are set forth in the
results summarized under the heading "Financial Results for the three months
ended June 30, 2002". This definition is consistent across the periods
referred to in this release.


RECAPITALIZATION UPDATE

We announced on May 8, 2002 that we had filed in a U.S. Court our previously
announced Chapter 11 "prearranged" plan of reorganization under U.S. law.
Just prior to the filing, the
Company, a steering committee of our lending banks and an unofficial
committee of our public bondholders (holding over 50% in the aggregate of
the face value of NTL and our subsidiaries' public bonds) had reached an
agreement in principle on implementing the terms of the recapitalization
plan to strengthen our balance sheet, reduce debt and put an appropriate
capital structure in place for our business. In addition, France Telecom and
another significant holder of our preferred stock also agreed to the plan at
that time.

As previously announced, under the proposed recapitalization plan,
approximately USD10.9 billion in debt will be converted to equity in two
reorganized companies - NTL UK and Ireland and NTL
Euroco.

That agreement in principle forms the basis of the Company's
Second Amended Joint Plan of Reorganization that was filed with the Court on
July 15, 2002, and will be the basis on which the
Company intends to emerge from Chapter 11.

On July 3, 2002 we announced that NTL had obtained final approval from the
Court in which its United States Chapter 11 cases are pending for the
previously announced Debtor-in-Possession ("DIP") financing. The Court
approved the USD630 million DIP facility, which included USD500 million in
new financing provided by certain of the Company's bondholders or their
affiliates. This financing has provided the Company sufficient liquidity to
continue ordinary operations throughout the Chapter 11 process.

On July 12, 2002, the Court approved the Company's previously filed amended
disclosure statement, subsequently amended on July
15, 2002, which has been distributed to stakeholders in connection with the
Company's solicitation of votes to accept the plan of reorganization.

On the same date the Court also set September 5, 2002 as the date for the
hearing to consider confirmation of the plan. If confirmed, the Company's
recapitalization plan could be consummated shortly thereafter, subject to
satisfying certain remaining conditions as set out in the plan, at which
time the
Company would emerge from Chapter 11.

BUSINESS REVIEW

NTL continues to concentrate on delivering solid operational results against
the challenging backdrop of the recapitalization process combined with a
continued negative climate for telecoms.
During the second quarter of 2002, NTL made steady progress and maintained a
`business as usual' approach with existing and potential customers, NTL
associates and suppliers.

Revenues of GBP627 million (USD915m) and EBITDA of GBP174 million (USD254m)
from continuing operations represent a revenue increase of 3% and an EBITDA
increase of 58%, compared with revenue of GBP608 million (USD857m) and
EBITDA of GBP110 million (USD155m) in the second quarter of 2001.

Capital expenditures were GBP138 million (USD201m) in the second quarter of
2002 as compared to GBP115 million (USD164m) in the first quarter of 2002.

NTL Home

NTL Home's second quarter results from continuing operations included
revenues of GBP334 million (USD488m) and EBITDA of GBP141 million (USD206m).
Our results were in line with our stated intentions of conserving cash and
reducing costs and capital expenditures. Q2 2002 EBITDA was 45% higher than
in Q2
2001.

Monthly ARPU (average revenue per unit) was GBP40.54 for the quarter, an
increase of GBP1.18 per month as compared with Q2
2001. On an annualized basis, ARPU stands at GBP486.48.

NTL ended the quarter serving approximately 2.7 million on-net customers,
102,000 off-net customers and providing 5.5 million services to these
customers. During the recapitalization process, we are continuing to focus
on:

    (i) the provision of broadband services;
   (ii) cost reduction; and
  (iii) improving the quality of the customer experience.

NTL continues to see strong growth in the take up of its high-speed,
always-on broadband Internet products; ending the quarter with over 275,000
broadband customers. As of August 1st, NTL had over 300,000 broadband
customers in the UK which, based on ITC statistics, results in a market
share of approximately 37%.

Churn was reduced to 17.1% (on an annualized basis) in the quarter, as a
result of ongoing customer service improvements.
Total disconnects were 119,000 in Q2 2002, down from 127,000 in
Q1 2002 while gross additions in Q2 were 49,000 down from 54,000 in Q1.
Subscriber additions were in line with expectations.

NTL Business

NTL Business' second quarter results from continuing operations included
revenues of GBP148 million (USD216m), an increase of 6% over the prior year,
and EBITDA of GBP59 million (USD86m), an increase of 31% on Q2 2001.

The recapitalization process and the general climate for competitive
telecoms service providers has had a larger impact on
NTL's Business revenues than on any of the other operating divisions. P. New
business successes included signing an GBP8 million (USD12m) agreement with
Maritime and Coastguard Agency and an agreement with Freeserve to deliver
Freeserve Broadband services via NTL's next generation cable network.

NTL Broadcast

NTL Broadcast's second quarter results from continuing operations included
revenues of GBP52 million (USD76m), an increase of
6% over the prior year, and EBITDA of GBP28 million (USD41m), an EBITDA
increase of 12% over Q2 2001, excluding the Australian business.

P. New contracts within the quarter include a 10-year contract to insert and
transmit a new text service on Channel 5 and a number of contracts from
Channel 4 television, to provide a digital compression system for additional
channels on the direct to home digital satellite platform.

TV Programming

Revenue for our TV programming subsidiary in Q2 2002 of GBP6 million (USD9m)
represents a 20% increase from Q2 2001, and
EBITDA was GBP15 million (USD22m) negative.

These results reflect the fact that in June 2002 NTL's wholly owned
subsidiary, Premium TV Limited, initiated discussions with the Football
League with a view to restructuring the joint venture between the parties
for the provision of an Internet platform for the 72 soccer clubs which are
members of the
Football League.

The outcome of these discussions is still uncertain; therefore, in Q2 2002,
NTL's TV programming division recorded a non-recurring operating expense of
approximately GBP14 million
(USD20m) to reflect the write down of certain assets relating to the joint
ventures.

Shared Services

Shared services costs of GBP64 million (USD93m) in Q2 2002 declined by 14%
as compared to Q2 2001, as a result of cost reduction and efficiency
improvements in Networks, IT, Finance, HR and properties.

The focus on cost reduction will continue with additional opportunities to
reduce costs through the rationalisation of our IT assets and property
portfolio.

Capital Expenditure- UK

UK capital expenditure from continuing operations was GBP108 million
(USD158m) in the second quarter 2002. NTL's customer acquisition capital
spending is focussed upon our high value subscribers, those who are defined
as "low capex customers"
(i.e., pre-wired homes, triple play customers, on-net buildings etc).

The Company has virtually eliminated all discretionary spend and is
implementing only currently contracted spending commitments.
The above amounts reflect our capital expenditures as accounted for under
the accrual method of accounting.

This method provides a more accurate measurement of our capital expenditure
requirements during the reported quarter, as compared to the cash spend on
capital expenditures, which would differ as a result of timing between
capital commitments and disbursements of cash (actual supplier payments) for
these commitments.

NTL Europe

NTL Europe's second quarter results from continuing operations included
revenues of GBP87 million (USD127m), a 12% increase from Q2 2001, and EBITDA
of GBP25 million (USD37m), a 32% increase from Q2 2001.

P. NTL Europe currently consists of wholly owned Cablecom
(Switzerland), and NTL Ireland (Cablelink), as well as equity investments in
B2 in Sweden (34%), Noos in France (27%) and iesy (formerly known as eKabel)
in Germany (32.5%). Under the proposed terms of the recapitalization plan,
NTL's investment in Noos will be transferred to France Telecom and NTL
Ireland will become part of the new NTL UK and Ireland company.

Cablecom

Continuing focus on EBITDA growth and return on investment were the priority
throughout the European franchises for Q2 2002.
EBITDA improvement is a result of increased focus on a profitable revenue
mix, as well as the impact of process improvement in network operations and
cost reduction programs.

During the second quarter, Cablecom increased its broadband customer base to
100,000. P. In May 2002, in conjunction with
NTL's recapitalization plan, the banking syndicate for Cablecom agreed a
plan for the continued funding of Cablecom until April 30, 2003, which may
be extended by the relevant banks to December 31, 2003.

In addition, the agreement reached with the banking syndicate requires NTL
to engage UBS Warburg by August 31, 2002 to advise in connection with an
outside investment in or sale of all or part of the Cablecom group.

NTL Ireland

NTL Ireland's digital television penetration continues to grow with 22,000
digital customers at the end of the second quarter.
Following the success of the cable modem trial in Q1, a residential
broadband product was launched into a target area of
7,000 households. The business-to-business sector continues to be a growth
area for NTL Ireland with strong sales on voice, data and Internet products.

Capital Expenditure- Europe

Capital expenditure at NTL Europe from continuing operations amounted to
GBP30 million (USD44m) for Q2 2002. The Company has virtually eliminated all
discretionary spend and is implementing only currently contracted spending
commitments.

The above amounts reflect the Company's capital expenditures as accounted
for under the accrual method of accounting. This method provides a more
accurate measurement of the Company's capital expenditure requirements
during the reported quarter, as compared to the cash spend on capital
expenditures, which would differ as a result of timing between capital
commitments and disbursements of cash (actual supplier payments) for these
commitments.

Equity Investments

iesy, NTL Europe's 32.5% owned asset in Germany, has suspended its network
upgrade program (which is focussed on the expansion of its cable network in
Hessen to provide broadband cable modem services initially, and later
digital television) pending progress of a potential restructuring of iesy's
capital structure. iesy has recently retained advisors to assist it in a
restructuring of its outstanding debt.

B2, NTL Europe's 34% owned asset in Sweden ended the second quarter with
approximately 80,000 customers and with penetration of approximately 35% of
homes marketed.

Noos, NTL Europe's 27% owned asset in France, ended Q2 2002 with
127,000 cable modem subscribers and over 366,000 digital TV subscribers.
These results reflect the contribution of the NTL 1G
Networks assets to Noos in November 2001.

Other Q2 Developments

On June 28, 2002, NTL confirmed that its restructuring plan, with the
support of the Official Committee of its unsecured creditors, will provide
for the continuation of Barclay Knapp and his management team to lead the
newly formed NTL companies after emergence from the US Chapter 11 cases.

As part of the new management structure, John Gregg, currently
CFO of NTL Incorporated, will become co-Managing Director and CFO of NTL
Euroco upon emergence, and will also serve as CFO of NTL
UK and Ireland until a CFO for NTL UK and Ireland is named.

Financial Review *

NTL Incorporated announces results for three and six months ended June 30,
2002

SECOND QUARTER

PART 2

Revenue Summary (in pound sterling millions)

                    Q2-2002 Q1-2002 Q4-2001
Continuing
Operations

HOME                  pound   pound   pound
                  sterling sterling sterling

                        334     340     352

BUSINESS
Retail                   56      56      62
MNS                      74      74      72
Carrier Services         18      21      18
Total                   148     151     152

BROADCAST
Media                    42      39      41
Wireless                 10      10      11
Total                    52      49      52

TV PROGRAMMING            6       7      13

NTL EUROPE
Cablecom                 72      66      80
Cablelink                15      14      12
Total                    87      80      92

REVENUE               pound   pound   pound
                   sterling sterling sterling

                        627     627     661

Discontinued
Operations

Australia             pound   pound   pound
                  sterling sterling sterling

                          -      12      11
CWC Off-Net               -       -       4
1G Networks               -       -       2

TOTAL REVENUES        pound   pound   pound
                  sterling sterling sterling

                        627     639     678





                    Q3-2001 Q2-2001
Continuing
Operations

HOME                  pound   pound
                   sterling sterling

                        342     337

BUSINESS
Retail                   58      62
MNS                      72      57
Carrier Services         24      20
Total                   154     139

BROADCAST
Media                    40      41
Wireless                 10       8
Total                    50      49

TV PROGRAMMING            5       5

NTL EUROPE
Cablecom                 58      68
Cablelink                11      10
Total                    69      78

REVENUE               pound   pound
                  sterling sterling

                        620     608

Discontinued
Operations

Australia             pound   pound
                  sterling sterling

                         11      10
CWC Off-Net              12      14
1G Networks               2       2

TOTAL REVENUES        pound   pound
                  sterling sterling

                        645     634


* During the second half of 2001 the UK Businesses commenced a major
reorganization into the three main trading divisions, Home, Business and
Broadcast, supported by a smaller Shared Services division.  This
reorganization became fully effective from January 2002 and consequently the
Revenue and EBITDA analysis in the Financial Review is presented in the
revised structure and prior period comparatives have been restated
accordingly.

EBITDA Summary (in pound sterling millions)


                    Q2-2002 Q1-2002    Q4 -
                                       2001
Continuing
Operations

HOME                  pound   pound   pound
                  sterling sterling sterling
g
                        141     134     122

BUSINESS
Retail                   23      23      29
MNS                      23      18      21
Carrier Services         13      15      15
Total                    59      56      65

BROADCAST
Media                    23      21      19
Wireless                  5       4       4
Total                    28      25      23

SHARED SERVICES
Networks               (16)    (14)    (10)
Corporate              (48)    (48)    (40)
Support/IT
Total                  (64)    (62)    (50)

TV PROGRAMMING         (15)     (2)    (33)

NTL EUROPE
Cablecom                 21      18      24
Cablelink                 4       3       3
Total                    25      21      27

EBITDA                pound   pound   pound
                   sterling sterling sterling
                        174     172     154

Discontinued
Operations

Australia             pound   pound   pound
                  sterling sterling sterling

                          -       5       5
CWC Off-Net               -       -       1
1G Networks               -       -     (1)

TOTAL EBITDA          pound   pound   pound
                  sterling sterling sterling

                        174     177     159


                    Q3-2001 Q2-2001
Continuing
Operations

HOME                  pound   pound
                  sterling sterling

                        103      97

BUSINESS
Retail                   21      20
MNS                      18      15
Carrier Services         19      10
Total                    58      45

BROADCAST
Media                    22      23
Wireless                  4       2
Total                    26      25

SHARED SERVICES
Networks               (20)    (19)
Corporate              (57)    (55)
Support/IT
Total                  (77)    (74)

TV PROGRAMMING          (4)     (2)

NTL EUROPE
Cablecom                 18      18
Cablelink                 2       1
Total                    20      19

EBITDA                pound   pound
                  sterling sterling

                        126     110


Discontinued
Operations

Australia             pound   pound
                  sterling sterling
g
                          5       4
CWC Off-Net               4       3
1G Networks             (3)     (2)

TOTAL EBITDA          pound   pound
                   sterling sterling
                        132     115


Financial Results for the three months ended June 30,
2002 (in $ millions except per share data)

                                       Three Months Ended
                                                 June 30,
                                           2002      2001
Revenues
Consumer telecommunications and TV       $624.3    $618.4

Business telecommunications               215.6     197.6
Broadcast transmission and other           76.5      68.4
                                          916.4     884.4
Costs and expenses
Operating expenses                        413.7     435.4
Selling, general and admin expenses       248.5     290.8

                                          662.2     726.2
EBITDA                                    254.2     158.2

Other charges                              16.7      17.9
Corporate expenses                          8.0      19.3
Depreciation and amortization             419.8     801.2
Operating (loss)                        (190.3)   (680.2)

Other income (expense)
Interest income and other, net              9.7       5.2
Interest expense (contractual $405.6
in 2002)                                 (269.3)   (329.7)

Share of (losses) from equity
investments                               (37.3)    (57.6)

Foreign currency transaction              (59.3)     22.6 (losses) gains

(Loss) before recapitalization                              items, income
taxes and discontinued                     operations
(546.5) (1,039.7)

Recapitalization items, net              (37.8)         -
Income tax benefit                        26.0      12.3
(Loss) from continuing operations       (558.3) (1,027.4)

Discontinued operations:
Loss from operations of NTL
Australia                                 (0.5)     (1.8)

Gain on sale of NTL Australia, net
of income tax expense of $4.5               8.4         -

Income (loss) from discontinued
operations                                  7.9     (1.8)

Net (loss)                              (550.4) (1,029.2)
Preferred stock dividends                (43.5)    (75.8)
(contractual $93.4 in 2002)

Net (loss) available to common
shareholders                           $(593.9) $(1,105.0)

Basic and diluted net (loss) per
common share:
(Loss) from continuing operations       $(2.18)   $(3.99)
Income (loss) from discontinued
operations                                 .03      (.01)

Net (loss) per common share           $(2.15)   $(4.00)

  Weighted average shares                276.6     276.3

Financial Results for the six months ended June 30, 2002
(in $ millions except per share data)

                                         Six Months Ended
                                                 June 30,
                                           2002      2001
Revenues
Consumer telecommunications and        $1,232.7  $1,229.3
television
Business telecommunications               431.2     398.8
Broadcast transmission and other          146.5     136.5
                                        1,810.4   1,764.6
Costs and expenses
Operating expenses                        849.5     874.1
Selling, general and administrative       460.8     613.0
expenses
                                        1,310.3   1,487.1
EBITDA                                    500.1     277.5

Other charges                              19.3      25.3
Corporate expenses                         21.6      31.8
Depreciation and amortization             815.4   1,556.4
Operating (loss)                        (356.2) (1,336.0)

Other income (expense)
Interest income and other, net             24.8      14.2

Interest expense (contractual $777.5
in 2002)                                 (641.2)   (684.8)

Share of (losses) from equity
investments                               (86.2)   (100.5)

Foreign currency transaction
(losses) gains                           (64.3)       8.9

(Loss) before recapitalization
items, income taxes and discontinued  (1,123.1) (2,098.2)
operations

Recapitalization items, net              (83.6)         -
Income tax benefit                         48.0      28.4
(Loss) from continuing operations     (1,158.7) (2,069.8)
Discontinued operations:
Loss from operations of NTL               (0.3)     (2.3)
Australia
Gain on sale of NTL Australia, net
of income tax  expense of $4.5              8.4         -

Income (loss) from discontinued
operations                                  8.1     (2.3)

Net (loss)                            (1,150.6) (2,072.1)
Preferred stock dividends               (141.9)   (140.9)
(contractual $191.8 in 2002)

Net (loss) available to common
shareholders                         $(1,292.5) $(2,213.0)

Basic and diluted net (loss) per
common share:
(Loss) from continuing operations       $(4.70)   $(8.03)
Income (loss) from discontinued
operations                                  .03     (.01)

Net (loss) per common share             $(4.67)   $(8.04)

Weighted average shares                  276.6     275.4


Discussion of Second Quarter Results

We provide a broad range of communication services, including:
(i) consumer telecommunications and television, (ii) business
telecommunications and (iii) broadcast transmission and other related
services. Our consumer telecommunications and television services include
broadband services to consumer markets comprising residential telephone,
analog and digital cable television, narrowband and broadband Internet
access, and interactive services.

Business telecommunications consist of broadband services to business
markets, comprising business telecommunications, national and international
carrier telecommunications, narrowband and broadband Internet services, and
managed network services.

Our broadcast transmission and other services include digital and analog
television and radio broadcast transmission services, satellite and media
services for programmers, news agencies, sports broadcasters and production
companies, and tower site rental and associated services to a variety of
carriers operating wireless networks.

As expected, our growth in 2002 has been curtailed by funding constraints.
Although our current business plan includes a reduction in the number of new
customers and an increase in revenue from existing customers, our cash
constraints present many challenges to the successful execution of the plan.
We are conserving cash through a reduction in capital expenditures including
expenditures to connect new customers to our network.

In order to maintain revenues and cash from operations while reducing the
number of new customers, we must reduce and limit customer churn. We intend
to continue to improve our customer service and increase our service
offering to customers in an effort to curtail and reduce churn. We are in
the process of integrating our various billing systems and customer
databases in an effort to improve one of the main tools we use to provide
customer service.

This effort is beginning to achieve results as the first franchise area was
successfully migrated to the new billing platform in June 2002. We expect to
substantially complete the project by the second quarter of 2003. The total
project cost is estimated to be approximately GBP45.0 million, of which we
have incurred approximately GBP5.0 million through June 30,
2002.

Our plan to reduce churn and to increase ARPU includes an increase in
broadband services to our existing customers. We believe that our triple
play offering of telephony, broadband access to the Internet and digital
television will continue to prove attractive to our existing customer base,
which will result in higher ARPU as revenues per existing customer increase.

We may also benefit from the financial difficulties exhibited by some of the
newer companies that compete with us through churn of their customers.
However, there is still significant competition in our markets, through
digital satellite and digital terrestrial television and through alternative
Internet access media, such as
DSL offered by BT.

If we are unable to charge the prices for these services in the future that
we anticipate in our business plan in response to competition or if our
competition is able to attract our customers, our results of operations will
be adversely affected.

Media speculation regarding our financial condition and potential outcomes
of the recapitalization process could have an adverse effect on parts of our
business. Similarly, negative press about the financial condition of
alternative telecom carriers in general may effect our reputation.

One of the key strategies in our business plan is to increase our
penetration of higher value small to medium size enterprises (or
SMEs) and provide increased retail services of bundled voice, data and
Internet services for SMEs.

However, due to the negative publicity surrounding our financial condition
and the effect of that publicity on our brand name, we have found it
difficult to convince SMEs to become our customers.
We believe our recapitalization process and the general climate for
alternative telecom carriers effected our revenues in the first half of 2002
as prospective customers began deferring orders beginning in the fourth
quarter of 2001.

Even if we successfully complete the recapitalization process, there is no
assurance that the negative publicity will not adversely impact our results
of operations or have a long-term negative effect on our brand.

In addition, this uncertainty may adversely affect our relationships with
suppliers. If suppliers become increasingly concerned about our financial
condition, they may demand faster payments or not extend normal trade
credit, both of which could further adversely affect our cash conservation
measures and our results of operations. However, this did not have any
significant effect on our results of operations or cash flows in the first
half of 2002.

There can be no assurance that we will successfully complete the proposed
recapitalization plan in a timely manner in order to sustain our operations.

On April 2, 2002, we announced the completion of the sale of our Australian
broadcast business. NTL Australia is accounted for as a discontinued
operation, and accordingly, NTL Australia is excluded from the results of
continuing operations for the three and six months ended June 30, 2002 and
2001.

The results of continuing operations on pages 9-10 for the three and six
months ended June 30, 2001 include CWC Off-Net and 1G networks, both of
which were sold in the fourth quarter of 2001.

Consolidated revenues increased by 3.6% to USD916.4 million in three months
ended June 30, 2002, as compared to USD884.4 million in the three months
ended June 30, 2001. Revenue growth was achieved by improving our product
offers, increasing our broadband and digital TV customer base, raising
prices and by serving new customers and signing new contracts in our
Broadcast and Business telecoms divisions. Revenue growth in the Business
telecoms division was also the result of the acquisition of
Viatel UK in the third quarter of 2001.

In the three months ended June 30, 2002 and 2001, the United
Kingdom accounted for 86.0% and 87.1%, respectively, Switzerland accounted
for 11.5% and 10.8%, respectively, and other geographic regions accounted
for 2.5% and 2.1%, respectively of total consolidated revenues.

In the three months ended June 30, 2002 and 2001, consumer
telecommunications and television revenues were 68.1% and 69.9%,
respectively, business telecommunications revenues were 23.5% and
22.4%, respectively and broadcast transmission and other revenues were 8.4%
and 7.7%, respectively of total consolidated revenues.

Consumer telecommunications and television revenues increased to
USD624.3 million from USD618.4 million primarily as a result of changes in
foreign currency exchange rates. These revenues in UK pounds decreased to
GBP427.0 million from GBP435.8 million. The decrease in revenues was
primarily due to the sale of part of our indirect access telephony business
in October 2001 that accounted for GBP13.8 million of consolidated revenues
in the three months ended June 30, 2001. Consumer telecommunications and
television revenues have also been affected by a reduction in the customer
base due to disconnects, lower telephony usage and fewer premium package
television customers. This decrease was partially offset by price increases
and upselling new services to customers.

Business telecommunications revenues increased to USD215.6 million from
USD197.6 million. The acquisition of the assets and contracts of Viatel UK
in the third quarter of 2001 accounted for
USD32.1 million of the revenue in the three months ended June 30,
2002. The reduction in revenue after excluding the Viatel revenue primarily
results from a lack of major installations and orders and a decline in
carrier revenues.

Broadcast transmission and other revenues increased to USD76.5 million from
USD68.4 million. The increase reflects increases in the number of broadcast
television and FM radio customers and accounts, which exceeded price cap
reductions in our regulated services, and increases in satellite and media
services used by broadcast and media customers.

We expect growth in broadcast services to be driven primarily by contracts
related to the increased demand for tower infrastructure by wireless
services operators expanding and upgrading their networks for wireless
broadband, the digitalization of analog television and radio signals and the
further development of programming for the European markets requiring
satellite and terrestrial distribution services.

Operating expenses (including network expenses) decreased to
USD413.7 million from USD435.4 million primarily as a result of decreases in
telephony interconnection and television programming costs. The acquisition
of the assets and contracts of Viatel UK in the third quarter of 2001
accounted for USD29.2 million of the operating expenses in the three months
ended June 30, 2002.
Operating expenses as a percentage of revenues declined to 45.1% in 2002
from 49.2% in 2001.

Selling, general and administrative expenses decreased to
USD248.5 million from USD290.8 million, which reflects various cost savings
efforts including restructurings announced in the fourth quarter of 2001.
Selling, general and administrative expenses in the three months ended June
30, 2002 include a non-cash reserve of USD19.6 million for certain assets of
Premium TV
Limited (our television programming subsidiary) that reduced their carrying
value to USD3.2 million. Selling, general and administrative expenses as a
percentage of revenues decreased to
27.1% in 2002 from 32.9% in 2001.

Other charges of USD16.7 million in the three months ended June
30, 2002 include asset impairment charges of USD12.9 million, restructuring
charges of USD2.1 million and costs incurred for information technology
integration and for business rationalization consulting of USD1.7 million.

Other charges of USD17.9 million in the three months ended June
30, 2001 were for information technology integration and for business
rationalization consulting incurred by NTL UK. Asset impairment charges of
USD12.9 million in 2002 are non-cash charges to write-down certain
long-lived assets to their estimated fair values based on our assessment
that their carrying value was not recoverable. This charge includes fixed
assets of
USD1.0 million and other assets of USD11.9 million, all of which relates to
our consumer segment.

Restructuring charges of USD2.1 million in 2002 include severance and
related expenses of USD1.0 million and costs of USD1.1 million to shutdown a
non-critical operation in the UK. The information technology integration and
business rationalization consulting costs of USD1.7 million were incurred by
Cablecom in
2002.

Corporate expenses decreased to USD8.0 million from USD19.3 million due to a
decrease in legal, accounting, other professional and employee related
costs. In addition, corporate expenses in the three months ended June 30,
2001 included a write-down of certain investments of USD5.9 million.

Depreciation and amortization decreased to USD419.8 million from
USD801.2 million. Depreciation expense increased to USD385.4 million from
USD359.2 million primarily due to an increase in depreciation of
telecommunications and cable television equipment.

Amortization expense decreased to USD34.4 million from USD442.0 million due
to the adoption of SFAS No. 142 on January 1, 2002, which ended the
amortization of goodwill and other indefinite lived intangible assets.

Amortization expense in the three months ended June 30, 2001, after
deducting the amortization of goodwill and other indefinite lived intangible
assets of USD406.1 million, would have been
USD35.9 million.

Interest income and other, net increased to USD9.7 million from
USD5.2 million primarily as a result of an increase in cash available for
investment.

Interest expense decreased to USD269.3 million from USD329.7 million as a
result of our application of AICPA Statement of Position 90-7, Financial
Reporting by Entities in Reorganization Under the Bankruptcy Code (SOP
90-7).

Pursuant to SOP 90-7, interest expense is included in the results of
operations only to the extent that it will be paid during the proceeding or
that it is probable that it will be an allowed priority, secured or
unsecured claim.

In accordance with the proposed recapitalization plan, we do not plan to
make future interest payments on our outstanding publicly traded notes,
except notes issued by NTL Triangle (a non-debtor) and, upon emergence from
the Chapter 11 proceedings, Diamond
Holdings Limited. Our contractual interest for the three months ended June
30, 2002 was USD405.6 million.

The increase in contractual interest expense in 2002 as compared to 2001 is
primarily due to additional borrowings under credit facilities subsequent to
June 30, 2001 and the issuance of additional notes in May and June 2001.
Interest of USD59.7 million and USD243.7 million was paid in cash in the
three months ended June 30, 2002 and 2001, respectively.

Share of losses from equity investments decreased to USD37.3 million from
USD57.6 million primarily due to a reduction in the net loss of B2 (due to
an adjustment to our estimate of B2's loss in the three months ended June
30, 2001) offset by an increase in share of loss of Noos. We acquired our
interest in Noos in May
2001.

Foreign currency transaction (losses) gains were losses of
USD59.3 million in the three months ended June 30, 2002 and gains of USD22.6
million in the three months ended June 30, 2001. The change is primarily due
to the effect of changes in exchange rates.

We and certain of our subsidiaries have cash, cash equivalents and debt
denominated in non-U.S. dollar currencies that are affected by changes in
exchange rates. In addition, certain of our foreign subsidiaries whose
functional currency is not the
U.S. dollar have cash, cash equivalents and debt denominated in
U.S. dollars, which are affected by changes in exchange rates.

Recapitalization items, net was USD37.8 million in the three months ended
June 30, 2002 including USD10.2 million for employee retention related to
substantially all of our UK employees and
USD29.6 million for financial advisor, legal, accounting and consulting
costs. These costs are net of USD2.0 million of interest earned on
accumulated cash since the Chapter 11 filing on May 8, 2002. We expect to
incur approximately USD50.0 million in additional recapitalization costs
until we complete the process.

Gain on sale of NTL Australia of USD8.4 million, net of income tax expense
of USD4.5 million, is the result of the April 2, 2002 sale of our Australian
broadcast business to Macquarie
Communications Infrastructure Holding Pty Limited for AUSD850.0 million
(USUSD451.3 million). The net proceeds from the sale after the repayment of
the outstanding bank credit facility and transaction related costs were
AUSD575.3 million (USUSD304.5 million).

Net loss was USD550.4 million and USD1,029.2 million in the three months
ended June 30, 2002 and 2001, respectively. This change was the result of
the factors discussed above, particularly the USD407.6 million reduction in
amortization expense.


TELEWEST COMMUNICATIONS: Requests Sale of 16.9% SMG Stake
----------------------------------------------------------
A circular has been sent to the shareholders of Telewest seeking their
approval for the Disposal of the Group's 16.9 % stake in
SMG, the company announces. There will be an extraordinary general meeting
of Telewest, to be held on September 4, 2002, for shareholders to vote on
this proposal.

In order to preserve its flexibility at a time of constrained capital
markets, in the next twelve months the Group may wish to effect the Disposal
as part of its efforts to address the Group's funding requirements and to
make its financial position more secure.

Tuesday's circular seeks shareholders' approval in advance for the Disposal,
and the actual sale of the shareholding will take place if and when the
Group considers it appropriate to make such disposal.

Charles Burdick, managing director of Telewest, said:

"We continue to progress the available options to strengthen our financial
position, and today's circular seeks our shareholders' permission to divest
our stake in SMG over the next twelve months. We remain committed to finding
an outcome to our balance sheet concerns that is fair and equitable to all
our stakeholders."

A copy of the Circular has been submitted to the UK Listing
Authority, and will shortly be available for inspection at the UK
Listing Authority's Document Viewing Facility which is situated at Financial
Services Authority, 25 North Colonnade, Canary
Wharf, London E14 5HS.

This authority, if granted, would continue until September 4,
2003 which would be twelve months after the date on which
Telewest shareholder approval for the Disposal is received.

The value of the Company's shareholding in SMG, based on the closing price
of SMG shares on August 12, 2002 of 98p per SMG share, was GBP52.0 million.
The shareholding is secured against a loan of GBP33 million made by The
Toronto-Dominion Bank to the
Group.

SMG owns assets including Virgin Radio and Pearl & Dean advertising and
other Scottish and Grampian ITV franchises. It also has debts of almost
GBP400 million, which are due to be paid back in June next year, the
Guardian reports.






S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-published by
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso, Maria Lourdes Reyes and Jean Claire Dy,
Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

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