/raid1/www/Hosts/bankrupt/TCREUR_Public/020923.mbx             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

                 Monday, September 23, 2002, Vol. 3, No. 188


                              Headlines

* F R A N C E *

ALCATEL: Announces Further Restructuring Measures
ALCATEL: Increases Global Share in Optical Hardware for Q2 2002
ALCATEL: 1696 Metro Span Lights Chinese Cities
ALCATEL: Launches Hisposat 1D Satellite Built by Alcatel Space
ALCATEL: Sells Stake in Thales to Dassault Family Holding
NORTEL: S&P Cuts L-T Rating to B on Lower Than Expected Revenues
VIVENDI: BT Admits Talks With Vivendi and Vodafone Over Cegetel
VIVENDI: CDC & CDC Ixix Drops Publishing Assets Bid

* F I N L A N D *

SONERA CORPORATION: Develops Electronic Financial Management

* G E R M A N Y *

BABCOCK BORSIG: BBPS Workers in Danger as WestLB Refuses Support
DAIMLERCHRYSLER: Changes to Board of Management Announced
DEUTSCHE TELEKOM: Difficulties Dampens Interest in PTC
KIRCHMEDIA: Springer, Bauer, HVB Group Join Bid for Assets

* I R E L A N D *

ELAN CORPORATION: Patents for Transgenic Mice Found Valid

* I T A L Y *

FIAT SPA: Likely to Slash Workforce by 6,000 More
FIAT: Board of Directors Approves the Group's Half-Year Report
FIAT: Appoints Ferruccio Luppi as Chief Financial Officer

* L U X E M B O U R G *

VANTICO GROUP: Moody's Lowers Debt Securities Rating to Ca

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

LYCOS EUROPE: Signs Three-Year Pan-European Deal With Espotting

* P O L A N D *

NETIA HOLDINGS: Court Postpones Approval of Plan for Subsidiary

* S W E D E N *

CREDIT SUISSE: Elects Walter B. Kielholz as New Chairman
CREDIT SUISSE GROUP: Former Head Open on CSFB Future
CREDIT SUISSE: CSFB Announces Opening of Baltimore Office
LM ERICSSON: Will Deliver Dual Band GSM Network in Sudan
LM ERICSSON: Provides Network Deliveries in Iran

* U N I T E D   K I N G D O M *

BALTIMORE TECHNOLOGIES: Sells Hardware Business for GBP4 MM
CORDIANT COMMUNICATIONS: Announces Changes in Board Management
CORDIANT COMMUNICATIONS: Announces Notice on Fidelity Holdings
CORUS GROUP PLC: Completes Sale of Aluminium Smelter Stake
FILTRONIC: Buys in US$8.0 MM of Its 10% Senior Notes
GLOBAL CROSSING: Classification & Treatment of Claims Under Plan
INVENSYS: Notification of Major Interests in Shares
MARCONI: Announces Next Generation Optical Networking Development
PACE MICRO: Demonstrates European Retail Range at IBC 2002
PACE MICRO: Distributes World's First Twin Decoder in Europe
PACE MICRO: Launches First Set-Top Boxes Supporting Windows Media
RAILTRACK: Announces Return of Cash to Shareholders
SODEXHO UK: U.K. Troubles Drag Down Shares of Sodexho Alliance
SODEXHO: Board Reports Provisional Accounts for Fiscal Year
WORLDCOM INC: C&W Seeks Stay to Pursue JAMS Arbitration


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


ALCATEL: Announces Further Restructuring Measures
--------------------------------------------------
Due to further deterioration of telecom markets, Alcatel will
present to employee representatives an amplification of its
restructuring program to maintain the previously announced goal
of a profit restoration in 2003.

Even though present breakeven trends come close to anticipated Q4
sales level, Alcatel's target is to reach a quarterly sales break
even point approaching 3 BnEUR by the end of 2003, i.e,. a yearly
run rate of 12 BnEUR. This is more than 25 % below the current
level of business and way below our present estimate of next year
business.

As a consequence Alcatel expects its headcount to be around
60,000 employees at the end of 2003, including the additional
work force of Shanghai Bell now consolidated.

An additional restructuring provision of EUR500 million will be
booked over the next three quarters and will be funded by
disposal of assets.

For the second half of 2002 Alcatel expects revenues to be around
10% below the first half at constant perimeter, with a weak Q3
and a seasonally stronger Q4. Q3 should be sequentially down to
15 % in sales but with limited impact on operating income due to
a faster than anticipated reduction of fixed expenses. Alcatel
continues to increase its worldwide market share in many of its
product areas.

All Alcatel financial obligations are met without assets
divestitures. Alcatel maintains its year-end 2002 net debt target
at below the 2001 level after factoring in throughout the second
half, the worsening of the financial situation of some of its
customers.

More details will be given in our Q3 call on October 30th.

"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements relating to (i) Alcatel's guidance regarding its
performance in future periods, including, with respect to sales,
profitability and break-even cost structure for the second half
of 2002 (ii) Alcatel's ability to remain competitive in the
industry in which it operates and its future growth and (iii) the
benefits of its cost reduction program. These risks and
uncertainties include: whether Alcatel can continue to implement
its working capital reduction activities and restructuring
efforts and whether these efforts will achieve their expected
benefits, including the achievement of quarterly breakeven
targets, among other benefits; the duration of the continuing
economic slowdown, in general, and setbacks in Alcatel's
customers' businesses in particular; customer demand for
Alcatel's products and services; control of costs and expenses;
and the impact of each of these factors on sales and profits. For
a further list and description of such risks and uncertainties,
see the reports filed by Alcatel with the Securities and Exchange
Commission. Alcatel disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

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.

Contact Information:

Caroline Mille
Senior VP Corporate Communications
Alcatel Group
Tel: Tel.: +33 (1) 40761189
E-mail: caroline.mille@alcatel.


ALCATEL: Increases Global Share in Optical Hardware for Q2 2002
---------------------------------------------------------------
Alcatel led the US$2.9 billion worldwide market for intelligent
optical hardware with a 22% share in the second quarter of 2002,
according to Infonetics Research, an international telecom market
research and consulting firm. Alcatel's global share has
increased over six consecutive quarters from 2001 to 2002, despite
overall market decline.

Infonetics Research 2Q02 report indicates that Alcatel ranked
first in the following market segments: Total intelligent metro
optical, metro intelligent SDH/SONET switch, metro WDM transport,
long-haul intelligent SDH/SONET switch and long-haul WDM
transport.

"Alcatel is the clear leader in this period of telecom
difficulty, gaining market share in our overall measurement of
worldwide intelligent optical hardware", stated Michael Howard,
principal analyst and co-founder of Infonetics Research. "In the
past 6 quarters, Alcatel has moved from 9% in 1Q01 to 22% market
share in 2Q02, founded on the strength of sales in all world
regions of a broad optical product line targeted at most service
provider needs for metro and long haul, WDM and SDH/SONET."

"Although the market for optical networking systems continues to
erode, Alcatel resists better than the competition", stated
Christian Reinaudo, President of Alcatel's optics activities. "We
believe our success can be directly attributed to our
comprehensive product portfolio, strong customer relationships
and global presence."

Infonetics Research defines Intelligent optical hardware as data
aware equipment with remote configuration and remote service
provisioning that can be deployed  in  mesh, star, and ring,
allowing carriers to build out and revamp optical networks
quickly.


ALCATEL: 1696 Metro Span Lights Chinese Cities
----------------------------------------------
Alcatel (http://www.alcatel.com)announced the signature of a
contract with Heilongjiang Netcom - a subsidiary of China Netcom,
a leading telecom operator in China - to expand its metropolitan
transmission network in Harbin, as well as its high-speed
provincial infrastructure, in the Heilongjiang province, north-
eastern China. Based on Alcatel's dense wavelength division
multiplexing (DWDM) and synchronous digital hierarchy (SDH)
technologies, the project will further enhance Heilongjiang
Netcom's transport network capacity to meet the greater demand
for broadband service provisioning. The contract was won through
Alcatel Shanghai Bell.

Alcatel will implement its carrier-class 1696 Metro Span, a DWDM
system specifically designed for metropolitan and enterprise
applications, in the Heilongjiang province's major cities.  The
upgrade of the Harbin network is the first part of a larger
investment covering 13 local metro networks.

The Harbin city infrastructure will also leverage Alcatel's next-
generation SDH Optical Multi-Service Node (OMSN) systems, which
deliver data-aware functionality. The highly scalable solution
provided by Alcatel ensures higher network flexibility and
reliability enabling Heilongjiang Netcom to maximize its network
profitability.

Under the terms of the agreement, Alcatel will also supply its
Alcatel 1686 WM DWDM system for regional applications to expand
Heilongjiang Netcom's provincial network. Efficient traffic
control and routing throughout the entire transmission
infrastructure will be guaranteed by Alcatel's integrated network
management platform.

"This is another successful cooperation between Alcatel and
Heilongjiang Netcom. We really benefit from the high-speed high
efficiency and multi-service metro transmission platform with
Alcatel's advanced technology and reliable services," said Li
Jinghua, vice president of Heilongjiang Netcom.

"We are delighted that Heilongjiang Netcom has again turned to
Alcatel's technology to deploy new advanced services for its end-
users," stated Jean-Marie Vansteenkiste, president of Alcatel's
optical networks activities. "The 1696 Metro Span lightening more
and more metro networks is real proof of Alcatel's ability to
bring high-bandwidth optical capacity to every corner of cities
worldwide quickly and economically."


ALCATEL: Launches Hisposat 1D Satellite Built by Alcatel Space
--------------------------------------------------------------
The Hispasat 1D satellite, built by prime contractor Alcatel
Space  for  Spanish  telecom  operator  Hispasat, was launched
successfully  last night from Cape Canaveral in Florida by an ILS
Atlas IIAS rocket.

Hispasat 1D is co-located in geostationary orbit at 30 degrees
West with the Hispasat 1A, 1B and 1C satellites. The new
satellite will consolidate Hispasat's positions thanks to a
significant increase in the operational capacities of its fleet
(+30%) over their coverage area, spanning Europe, North and South
America, North Africa and the Middle East. Hispasat 1D also
enables Hispasat to ensure continuity of service for
telecommunications and direct digital TV services, while boosting
capacity for broadband Internet, interactive services and
multimedia services.

Built on the Alcatel Space Spacebus 3000 B2 platform, Hispasat 1D
has 28 Ku-band high-power BSS and FSS (Broadcast/Fixed Satellite
Service) transponders.  This is the largest and most powerful
3000 B2 spacecraft built by Alcatel to date. It offers beginning
of life power of 7.3 kW and a design life of 15 years; it weighed
nearly 3,300 kg at launch. It shall be noted that the Spanish
Industry has provided a large contribution to this program.

Commenting on the launch, Pascale Sourisse, Chairman and CEO of
Alcatel Space said:  "Alcatel Space today marked the 11th launch
campaign of a satellite* in seven months.  This performance
underscores our ability to quickly execute a launch, regardless
of the launch facility used. It also demonstrates the
compatibility of our satellites with all launch vehicles."

Alcatel Space ranks among the world's leading space systems prime
contractors.   Leveraging   its   dual expertise in civil and
military applications, Alcatel Space develops satellite
technology solutions for telecommunications, navigation, optical
and radar observation, meteorology, and scientific applications.
The company is also Europe's number one prime contractor for
Earth observation, meteorology and navigation ground segments, as
well as space systems operations. A fully-owned subsidiary of
Alcatel (100%), Alcatel Space generated 2001 revenues of 1.4
billion Euros and has 6,500 employees.

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.


ALCATEL: Sells Stake in Thales to Dassault Family Holding
---------------------------------------------------------
French telecommunications equipment maker, Alcatel, is selling
its 15.6% stake in Thales, a defense company, to the Dassault
family holding in a deal reportedly worth EUR800 million, AFX
reports.

A Dassault spokesman was quoted as saying the holding has been
considering acquiring an additional interest, "but for the moment it
is not on the agenda. Even though it could be on the agenda in
the coming months."

The French government, which owns 33% of Thales, is reportedly
aware of the transaction.

Thales is France's largest defense company. It sells airborne
warning and control systems, avionics, missile systems,
information systems and services, naval defense systems (radar,
tracking, and weapons), optronics (night vision, precision
guidance systems) and telecommunications services.

CONTACT:  THALES
          173, Blvd. Haussmann
          75008 Paris Cedex 08, France
          Phone: +33-1-53-77-80-00
          Fax: +33-1-53-77-86-59
          Home Page: http://www.thalesgroup.com


NORTEL: S&P Cuts L-T Rating to B on Lower Than Expected Revenues
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
telecommunications company Nortel Networks Ltd., including the
long-term corporate credit rating, which was lowered to single-
'B' from double-'B'-minus, following the company's August 27
announcement that revenues from continuing operations in the
third quarter of 2002 will be lower than previously forecast. The
outlook is negative.

The negative outlook reflects Standard & Poor's belief that plans
for Nortel to return to net profitability by mid-2003 may not be
achieved, in light of accelerating marketplace stresses. The
Brampton, Ontario-based company had US$4.4 billion of combined
lease-adjusted debt and preferred stock outstanding at June 30,
2002.

"Nortel's ratings continue to reflect very challenging market
conditions, as the company's core customer base continues to
defer purchases of new communications equipment," said John
Tysall, director of Standard & Poor's Canadian corporate ratings
group.

Nortel stated on August 27, 2002, that its expected revenues for
the September 2002 quarter would be roughly up to 10% below the
US$2.8 billion level for the quarter ended June 30.

Revenues for the past few quarters have been below the company's
expectations, challenging Nortel's ability to achieve a cost
structure that would permit a return to profitability by the
middle of 2003. Communications carriers continue to defer capital
expenditures and reconfigure their networks to use their
substantial existing equipment inventories, in light of slack
demand and the challenged financial positions of some network
operators.

Due to the continued decline in its revenues, Nortel announced an
additional restructuring on August 27 designed to reach a
quarterly break-even cost structure of below US$2.6 billion.
Earlier cost-reduction actions had been targeted to permit
breakeven on quarterly revenues below US$3.2 billion.

Standard & Poor's believes the industry decline in
telecommunications spending will continue through 2003. In this
context, should Nortel's revenues and earnings continue to
decline significantly from expected levels, ratings could be
lowered.

Nortel Networks Ltd.'s 6.125% bonds due 2006 (NT06CAN1),
DebtTraders reports, are trading at 43.5 cents-on-the-dollar. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=NT06CAN1for
real-time bond pricing.


VIVENDI: BT Admits Talks With Vivendi and Vodafone Over Cegetel
---------------------------------------------------------------
BT Group's chief executive Pierre Danon admitted its company is
in talks with both Vodafone and Vivendi Universal over the sale
of its 26% stake in French phone operator, Cegetel, CNN reports.

While Vodafone has reportedly appropriated EUR8 billion (GBP5
billion) for the interest, the French media group is expected to
tell investors it wants to maintain, or possibly increase its
exposure to its French telecoms business through buying control
in Cegetel.  Vodafone, Europe's biggest mobile phone company,
controls 32% of SFR through a 20% direct stake and a 15% share in
its parent firm Cegetel, while Vivendi owns 44% of Cegetel.

Vivendi aims to increase its stake in Cegetel to above 50% in
order to consolidate the group's strong cashflows. As for
Vodafone, the French business reamins the last asset in a major
European market, which it does not own.

Vivendi, which has a debt load of EUR20 billion, has just
obtained a EUR3 billion loan facility, replacing the EUR1 billion
short-term facility agreed in July.

According to a CNN report, in June, Danon valued the stake at
EUR5 billion, although many analysts have valued the holding at
around EUR3.7 billion.

The report also cited industry sources saying BT might reach a
preliminary deal to sell the stake before Vivendi's key board
meeting on September 25, if BT agrees to accept any of the
rivals' offer.

SBC Communications of the U.S. also holds an economic interest of
15 percent in Cegetel.


VIVENDI: CDC & CDC Ixix Drops Publishing Assets Bid
---------------------------------------------------
Charterhouse Development Capital and CDC Ixix Equity Capital have
dropped out from the bidding of Vivendi Universal's publishing
asset, according to Dow Jones.

According to people close to the companies, the consortium does
not agree to the idea that Vivendi would enter exclusive talks
with only one bidder, who will be requested to wire a deposit of
EUR2 billion.

The report cited political pressures as one of the reasons for
the back out.  French authorities has said, the sale of Vivendi
Universal Publishing, which includes brands such as Larouse and
Le Robert, to U.S. investment fund is against national interests.

The withdrawal of the companies leaves only two consortia of
investment funds interested in the entire publishing unit: one
led by BNP Paribas's investment arm PAI and U.S. fund Kohlberg
Kravis Roberts & Co. L.P.; and another group comprising French
bank Credit Agricole SA's investment fund UI, U.S. investment
fund Carlyle Group LP and Eurazeo , a listed vehicle of Lazard
bank. Another bidder, Lagardere SCA, is only interested in the
French assets.


=============
F I N L A N D
=============


SONERA CORPORATION: Develops Electronic Financial Management
-------------------------------------------------------------
Sonera and TietoEnator have concluded a co-operation agreement,
according to which they will offer their customers a
comprehensive service that comprises SonerarGateway's electronic
procurement and management service and the electronic resource
management and financial management application of TietoEnator's
Resource Management. The service entity that is provided
customer-specifically enables the dealing with the processes that
support the customer's main business electronically from the
beginning to the end.

By combining SonerarGateway's and TietoEnator's Resource
Management's services for companies, it is possible to produce
comprehensive solutions for dealing with financial management
processes, the electrifying of ordering and delivery processes,
electronic billing, bill circulation and archiving. In addition
to sales and marketing co-operation, the agreement also covers
the development co-operation of electronic financial and resource
management services.

"The now concluded agreement is a move towards Sonera's and
TietoEnator's co-operation and it supports Sonera's strategy to
expand its expertise and offering to comprehensive ICT services
with the help of partners", states Sales Director Jorma Maaninka
from Sonera. At the same time, the parties slightly open the door
together also to other providers who produce different services
or their parts for the customer's processes. "The best service is
generated in co-operation with different experts", says Director
Urpo Roti from TietoEnator.

TietoEnator Resource Management is Scandinavia's leading
competence center that focuses on the management applications of
the essential resources (finance, personnel, information,
customers) of organisations.

TietoEnator is a leading supplier of IT services with high value
added in Europe. The company's revenues are EUR 1.1 billion and
the number of personnel is almost 12,000. TietoEnator consults,
plans and deals with the core systems of its customers' business
in the networking world. The services are based on a deep
competence of customer sectors and the latest information
technology.

Sonerar Gateway is an electronic purchase and management service
to be offered to companies. The Sonerar Gateway electronic
communication center creates an online Internet co-operation
network between a company, its customers, partners and suppliers.

Sonera Corporation is a leading provider of mobile and advanced
telecommunications services. Sonera is growing as an operator, as
well as a provider of transaction and content services in Finland
and in selected international markets. The company also offers
advanced data solutions to businesses, and fixed network voice
services in Finland and neighbouring markets. In 2001, Sonera's
revenues totaled EUR 2.2 billion, and profit before extraordinary
items and taxes was EUR 0.45 billion. Sonera employs about 7,400
people.

Contact Information:

Sonera Corporation
Sales Manager Hannu M"kinen
Sales and Marketing/ Solution integration
Telephone number: 02040 64335
Email: hannu.makinen@sonera.com


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


BABCOCK BORSIG: BBPS Workers in Danger as WestLB Refuses Support
----------------------------------------------------------------
Some 3,000 workers in the lifeboat company of Babcock Borsig may
be in danger of losing jobs again after Westdeutsche Landesbank
Girozentrale refused to back the restructuring plan of the
insolvent German engineering company.

Another report, meanwhile, says that talks with WestLB, which
owns an 8% stake in the company, will continue.

Lifeboat company Babcock Borsig Power Systems, is designed take
over the core fields of technical services, power engineering and
environmental engineering on Oct 1. The operation will consist of
services, energy technology and environmental technology. Half of
the projected sales of the new company will come from
maintenance, modernization and spare parts.

According to a previous TCR-Europe report, Babcock has high hope
for the services division, as it registered global turnover of
EUR700 last year and reportedly has pending orders of EUR150
million.

All other creditor banks, on the other hand, are decided on the
plan and are prepared to provide a triple-digit million-euro
loan, according to AFX.


DAIMLERCHRYSLER: Changes to Board of Management Announced
---------------------------------------------------------
Dr. Thomas Weber (48), newly appointed Board Member for Research
& Technology, replaces Prof. Klaus-Dieter V"hringer (61)  Dr.
Wolfgang Bernhard (42) and Dr. Rdiger Grube (51) appointed
ordinary Members of the Board of Management Stuttgart / Auburn
Hills, September 19, 2002

At the meeting in Auburn Hills, the Supervisory Board of
DaimlerChrysler AG announced the following decisions with regard
to the implementation of medium and long-term personnel plans:

Dr. Thomas Weber (48), Head of the Mercedes-Benz production plant
in Rastatt and Chairman of the A-Class Management, will be
appointed Deputy Member of the Board of Management for Research
and Technology, with effect from January 1, 2003. Dr. Weber has
worked closely with Prof. Klaus-Dieter V"hringer since 1987, when
he left the Fraunhofer-Institut in Stuttgart to take up senior
management responsibilities in Research & Technology, Planning
and Production, at the former Daimler-Benz AG. From 1995 to 1999,
Dr. Weber was Head of the new Engine Production Plant in
Stuttgart-Bad Cannstatt.

Prof. V"hringer, Member of the Board of Management presently
responsible for Research and Technology, will leave the company
at the end of 2002.

Dr. Wolfgang Bernhard (42) and Dr. Rdiger Grube (51), both
Deputy Members of the Board of Management, will be appointed
ordinary Members of the Board of Management, with effect from
September 20, 2002. Dr. Bernhard will retain his position as
Chief Operating Officer of the Chrysler Group, and Dr. Grube will
remain responsible for Corporate Development within the Board of
Management.

Hilmar Kopper, Chairman of the Supervisory Board, commented on
these changes as follows: "With today's decision, the Supervisory
Board further implements its medium and long-term personnel
planning."

Mr. Kopper continued: "The Supervisory Board of DaimlerChrysler
thanks Prof. V"hringer for his extraordinary commitment during 35
years of service to the company. With his wide-range experience
in the fields of planning, development and production he has
contributed significantly to making DaimlerChrysler the world
leader in automotive industry Research and Technology.

Jrgen E. Schrempp, CEO of DaimlerChrysler AG, also paid tribute.
He said: "Prof. V"hringer has added significant impetus to
Research and Technology, especially through his vision of
accident-free driving, alternative power-systems and regenerative
energies."

Contact Information:

DaimlerChrysler
Epplestrasse 225
70546 Stuttgart, Germany
Tel: +49-711-17-0
Fax: +49-711-17-94075
Website: http://www.daimlerchrysler.com


DEUTSCHE TELEKOM: Difficulties Dampens Interest in PTC
------------------------------------------------------
Management difficulties are believed to have dampened Deutsche
Telekom's interest in acquiring majority stake at troubled Polish
operator PTC, according to reports.

Elektrim, the Polish group's major shareholder which recently
filed for bankruptcy, has offered Deutsche Telekom, which already
owns a 45% PTC, a larger stake in the mobile operator. The German
company, who has been eyeing control of PTC, however, has not yet
responded to the offer.

The Financial Times Deutschland was cited reporting Deutsche
Telekom will not decide before a new CEO is appointed to replace
Ron Sommer who left two months ago.  Helmut Sihler serves as
interim chairman until he is able to find a replacement for Mr.
Sommer by the end of the year.


KIRCHMEDIA: Springer, Bauer, HVB Group Join Bid for Assets
----------------------------------------------------------
A consortium of Axel Springer Verlag AG, Bauer Verlag KG and HVG
Group AG is joining the bid for KirchMedia GmbH's 52.5% stake in
broadcaster ProSienbenSat.1 Media AG and the film rights library.
A spokesman for Bauer told the news to Dow Jones without naming
the price offered.

The group will compete for the asset with Commerzbank AG and Sony
Corp. unit Columbia TriStar; French television group Television
Francaise 1 SA (F.TFF) and U.S. media tycoon Haim Saban.

The bids range from EUR1.6 billion to EUR2 billion according to
VWD news agency.

ProSiebenSat.1 is now being offered separately after management
of the German media firm withdrew from the idea of selling the
main business of the collapsed Kirch Group as a whole. KirchMedia
is expected to sell its sports rights trading business before
finally disposing the main parts of KirchMedia.

The spokesman expects KirchMedia to decide at the earliest on the
second half of October.


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ELAN CORPORATION: Patents for Transgenic Mice Found Valid
---------------------------------------------------------
Elan Corporation, plc announced that two of its patents covering
certain research mice used to study potential drugs for
Alzheimer's disease were found valid August 30th in an opinion
issued by the United States Court of Appeals for the Federal
Circuit ("CAFC").  The opinion concerned United States Patent
Nos. 5,612,486 and 5,850,003, which claim transgenic mice that
express the human gene known as the Swedish mutation of the
amyloid precursor protein, and process the resulting protein.
Following the CAFC's decision, Elan plans to continue its program
of licensing the technology to companies and institutions
commercially using the patented mice.

The CAFC decision reverses an earlier lower court decision, which
held that the Elan patents were anticipated by a prior patent
(United States Patent No. 5,455,169 (the "Mullan patent")).  The
disclosure in the Mullan patent, the CAFC opinion holds, was no
more than an invitation to experiment, providing only a path of
"trial and error and hope."  It therefore did not invalidate
Elan's patents.  The full CAFC opinion may be obtained from the
court's website at www.fedcir.gov/opinions/00-1467.doc.

The decision comes in Elan's litigation with the Mayo Foundation.
In that litigation Elan asserts that the Mayo Foundation owes
Elan a portion of license fees received from licensing the
patented mice to commercial pharmaceutical companies.  The CAFC
decision reverses a summary judgment earlier sought by the Mayo
Foundation, and eliminates from the parties' litigation the Mayo
Foundation's contention that the Mullan patent anticipates Elan's
transgenic mouse patents and renders them invalid.  The case will
be returned to the United States District Court for the Northern
District of California in San Francisco for trial of the
remaining issues.

Elan is focused on the discovery, development, manufacturing,
selling and marketing of novel therapeutic products in neurology,
pain management and autoimmune diseases.  Elan shares trade on
the New York, London and Dublin Stock Exchanges.

This news release may contain certain forward-looking statements
by Elan that involve risks and uncertainties and reflect the
company's judgement as of the date of this release.  Actual
events or results may differ from the company's expectations.
For example, there can be no assurance that this decision may not
be modified as a result of an appeal to the United States Supreme
Court or a rehearing sought from the CAFC; that, upon remand to
the district court, one or both of the Elan patents will not be
invalidated or found unenforceable or not infringed by the Mayo
Foundation; or that any company or institution will license the
patents.  A further list of these risks, uncertainties and other
matters can be found in Elan's Annual Report on Form 20-F for the
fiscal year ended December 31, 2001, and in its Reports of
Foreign Issuer on Form 6-K.  Elan assumes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise.


Contact Information:

Jack Howarth
Tel: 212-407-5740


=========
I T A L Y
=========


FIAT SPA: Likely to Slash Workforce by 6,000 More
--------------------------------------------------
Fiat SpA may dismiss as many as 6,000 employees in its auto unit
in the coming months in order to cut costs, reports say citing
union leaders. The slash is in addition to the 3,000 job cuts
made in July, aimed to lighten the financial baggage of the
troubled Italian industrial conglomerate.

A 20% downturn in domestic sales this year of the conglomerates's
largest unit, Fiat Auto, has dragged down Fiat's results. The
company expects to post year-end operating loss in line with
first-half group loss of EUR426 million.

Fiat may ask rescue from General Motors Corp. by selling the
remaining 80% of the auto unit to GM, but Fiat chairman and co-
CEO Pablo Fresco seemed resigned to abandon the business if it
doesn't recover before 2004.

Auto-component laborers in Tuscany from the FIOM-CGIL union,
meanwhile, are planning to stage a two-hours strike Friday to
oppose the layoffs and subsequent job losses that Fiat's cutbacks
may trigger.


FIAT: Board of Directors Approves the Group's Half-Year Report
--------------------------------------------------------------
The Board of Directors of Fiat S.p.A., under the chairmanship of
Paolo Fresco, approved the Group's half-year report, which
included the financial results already examined by the Board of
Directors' Meeting held on July 29 and disclosed on that
occasion.

KEY DEVELOPMENTS

During the first half of 2002, the Fiat Group made significant
progress in its effort to strengthen its financial and
manufacturing structure.

The most significant financial transactions completed during the
period included capital increases by Fiat S.p.A. and,
subsequently, by CNH Global; an agreement with key lending banks
that provided the support needed to implement the Group's
industrial plan; an agreement currently being finalized with the
partners in Italenergia that will give the Group access to
additional financial resources; the sale of a 34% interest in
Ferrari to Mediobanca; and the sale of some of Magneti Marelli's
operations. These transactions, which have an aggregate value of
about 7 billion euros, have strengthened the Group's balance
sheet considerably.

Initiatives in the manufacturing area included the reorganization
of Fiat Auto into independent Business Units with full
responsibility for their operating performance and the
implementation of a plan designed to re-energize the Automobile
Sector by improving efficiency and sales quality, reducing costs
and renewing the model line.

In June, the Board of Directors made new appointments to the
Group top management team.

PERFORMANCE IN THE FIRST HALF OF 2002

An analysis of market conditions during the first half of 2002
shows a further sizable contraction of the demand for
automobiles, which, compared with the same period a year ago,
shrank by 4.6% for all of Western Europe and by an even greater
amount (13.4%) in Italy. Among other countries, the demand slump
worsened in Brazil (-12.6% compared with the first six months of
2001), Poland (-18.8%) and Turkey (-54%).

The market for agricultural equipment continued to improve in
North America (+2%) and expanded even more in Europe (+7%).
However, demand for construction equipment was again down sharply
both in North America (-11%) and Europe (-14%).

In Italy, the market for commercial vehicles expanded by a
further 6.1%, as demand for light and medium-range vehicles
increased, due in part to the tax incentives provided under the
Tremonti Bis Law. In Europe, the overall market contracted by
9.1%, with a larger decline (-14.4%) in the heavy-range vehicle
segment.

From an operating standpoint, the first half was characterized by
a continuation of the challenging situation that the Group is
facing as a result of Fiat Auto's negative performance. The
Automobile Sector was affected more than had been anticipated by
the overall weakness of the markets where it operates and by the
Fiat brand's loss of market share. The sales decline was
especially pronounced in Italy, where demand was down sharply
toward the end of the period, as customers waited for the
enactment of tax incentives, which the Government approved at the
beginning of July. A positive performance by the Group's other
Industrial and Services Sectors helped offset the unfavorable
results posted by the Automobile Sector.

Consolidated Group revenues came to 28,755 million euros. The
decrease of 5.8% compared with the first six months of 2001 is
attributable to a significant decline in revenues (-13%) at Fiat
Auto.

The operating result was negative by EUR426 million (operating
income of EUR528 million in the first half of 2001), as the
income generated by the other Industrial and Services Sectors
(EUR397 million) was insufficient to offset the loss of EUR823
million uros incurred by Fiat Auto, which had operated at
breakeven in the first half of 2001.

The Group reported a loss before taxes of EUR528 million,
compared with income of EUR633 million in the first six months of
2001.

The Group's interest in the net result for the period (i.e.,
after minority interest) was a loss of EUR563 million compared
with earnings of EUR383 million in the first half of 2001. The
positive contribution of the extraordinary transactions completed
during the period (particularly a gain of EUR671 million on the
sale of a 34% interest in Ferrari) was offset primarily by the
charges incurred to mark to market the securities portfolios of
the Group's insurance companies.

At June 30, 2002, the net financial position showed net
borrowings of EUR 5,788 million, compared with EUR6,035 million
at December 31, 2001. The reduction in debt exposure in the first
half of 2002 was made possible by the capital increases of Fiat
S.p.A. and CNH, the proceeds generated by the sale of the
interest in Ferrari, the disposal of Magneti Marelli's
Aftermarket and Electronic Systems operations, and foreign
exchange gains. The net financial position was also affected by
working capital funding requirements, capital investments,
dividend distributions, CNH's acquisition of a major interest in
Kobelco, and Iveco's purchase of an additional 15% interest in
Irisbus.

PERFORMANCE OF THE PRINCIPAL SECTORS

Fiat Auto

The first half of the year was especially challenging for Fiat
Auto, which experienced a decrease in unit sales and market share
and reported an operating loss of EUR823 million.

Several factors had an impact on the Sector's financial and
operating performance. First of all, there was a decrease in unit
sales attributable to the strategic decision to improve the
quality of sales - and, consequently, their profitability - by
drastically reducing the reliance on channels that, while
significant in terms of quantity, do not generate adequate
returns. To make matters worse, demand contracted throughout
Europe. The drop was particularly significant in Italy toward the
end of the period, due to the impact that the announcement of
upcoming tax incentives had on sales during the closing months of
the period, as consumers deferred purchases, especially in the
city car and compact segments, where the Fiat brand has a
particularly strong presence. Sales were also heavily penalized
by a demand slump in Brazil, where economic conditions remain
worrisome, and in Poland.

On a more positive note, the Fiat Stilo took the leadership of
the Italian market for three- and five-door sedans and has
produced double the unit sales that the Bravo/Brava models
achieved in Europe. At the same time, the Alfa 147 is being
extremely well received and sales of light commercial vehicles
continued at a healthy level.

The success of the new Ducato has enabled the Fiat brand to
achieve a leadership position in the European market. Customer
orders for new products, particularly the Lancia Thesis and
Phedra, which had their commercial launch in Italy at the end of
the first half of the year, are running ahead of expectations.

The sharp decline in total unit sales (-17%) significantly
reduced the base available to absorb fixed production costs. This
had a negative impact on the operating result of Fiat Auto, which
was also affected by the higher provisions that had to be
recognized following the extension of the warranty period from
one to two years and a rise in research and development outlays.

Nevertheless, a comparison between the beginning and closing
months of the first half of 2002 shows that a further decline in
unit sales did not produce a deterioration in the level of
profitability. This positive development validates the strategy
of seeking to improve the quality of sales and demonstrates the
effectiveness of programs implemented to produce short-term and
structural improvements through cost reductions, which were
achieved by cutting all expense items that do not have an impact
on product quality and innovation; reducing inventories of used
cars; and maximizing the growing synergies generated by the
industrial alliance with General Motors.

The collaborative relationship established with General Motors
continued with the vigorous implementation of programs that will
lead to the design of joint platforms for the production of
common components and will further the integration of Fiat Auto
in an "industrial federation" with GM. Current programs, which
over the medium term will result in the two partners sharing 50%
of their components, are focused primarily on future products for
the small-car segment, where the combined unit sales of Fiat Auto
and General Motors are the highest in Europe, and for the premium
car market, where both manufacturers have a significant presence

The Sector made further progress in product innovation. In the
coming months, it will launch the Alfa 147 GTA and the even more
important Fiat Stilo Station Wagon, which will round out the
Fiat-brand mid-range model line.

An analysis of recent market trends shows that demand patterns
changed in July and even more in August. While demand in Italy is
falling less rapidly compared with a year ago and there are signs
that consumers are starting to respond to the government's
environmental incentives, in the rest of Europe the downward
slide has been accelerating everywhere except for the United
Kingdom. In this environment, which is characterized by diverging
trends and greater than anticipated challenges, particularly in
Europe where economic growth is low and the outlook uncertain,
Fiat Auto's market share has rebounded above 30% in Italy and
stabilized at 8.4% for all of Europe.

Other Industrial and Services Sectors

The Group's Other Industrial and Services Sectors performed in
accordance with expectations in the first half of 2002.

These Sectors had aggregate revenues of about EUR17 billion,
about the same as in the first six months of 2001. Operating
income totaled EUR397 million, compared with EUR525 million in
the same period last year.

CNH Global

In the first half of 2002, CNH benefited from higher sales of
agricultural equipment but was adversely affected by weak demand
for construction equipment both in North America and Europe. The
Sector responded to these unfavorable market conditions by
continuing to implement programs to reduce inventories.

CNH's operating result was in line with expectations, as the
Sector countered the negative impact of a drop in unit sales of
construction equipment by maximizing the synergies created
through the integration of New Holland and Case, increasing
operating efficiency through process reengineering programs and
reducing overhead.

During the second quarter of 2002, CNH launched the first
agricultural equipment models developed since the merger of New
Holland and Case. These innovative machines replace those
previously manufactured by operations that had to be divested
under the terms of the merger imposed by the antitrust
authorities and have better profit margins per unit than the pre-
merger models.

No significant new developments occurred in July and August.
Compared with the same period in 2001, CNH reported slightly
higher sales of agricultural equipment, but continued to be
penalized by a widespread slump in the demand for construction
equipment.

Iveco

During the first six months of 2002, the availability of a
largely renovated product line enabled Iveco to continue to
improve its position in a European market that, with the sole
exception of Italy, contracted across the board, but especially
in the heavy-range vehicle segment. At the European level, the
Sector retained its share of the light vehicle segment, increased
its penetration of the heavy-range vehicle market thanks to the
first registrations of the new Stralis and consolidated its
leadership of the intermediate vehicle segment.

Even though unit sales were down due to general weakness in the
European market, Iveco succeeded again in reporting a positive
operating result despite greater price competition than a year
ago in every field of activity, which was offset only in part by
the implementation of plans designed to reduce overhead.

The most significant trend during the July-August period was an
intensification of price competition, which put increased
pressure on margins. As to market trends, while there was no
change in business conditions compared with the first half of the
year, Iveco continued to post higher unit sales. Compared with
the same period in 2001, unit shipments were up for all segments,
with heavy vehicles showing the best sale performance.

Other Sectors

The Components Sectors (Teksid, Comau and Magneti Marelli) were
also affected by a decline in unit sales, which was caused mainly
by weak demand from European carmakers. Magneti Marelli was able
to report a smaller operating loss despite a reduction in
revenues that is attributable in part to the divestiture of its
Aftermarket and Electronic Systems operations earlier this year.

FiatAvio continued to post outstanding operating results even
though sales were down slightly due mainly to the postponement of
space launches under the Ariane program and, in the second
quarter, slower deliveries of commercial aircraft engines.

As for the services Sectors, Toro Assicurazioni was affected by
temporary weakness in its life insurance business and, more
importantly, by the negative impact of falling financial markets
on its securities portfolio. The Sector responded to these
unfavorable developments by cutting costs and streamlining its
customer portfolio. Business Solutions reported gains both in
revenues and profitability.

Ferrari posted positive operating results and was able to clinch
the Formula 1 Drivers' World Championship and Constructors' World
Championship well before the end of the season, winning these two
titles for the third and fourth year in a row, respectively.
These achievements confirm once again the excellence of Ferrari's
technology and the sophistication of the technical resources
provided by the Group. The great value of this asset was
underscored by the price of the recent offer made by Mediobanca
for 34% of Ferrari's capital stock.

OUTLOOK FOR THE BALANCE OF THE YEAR

Based on the result for the first half and taking into account
recent economic and market trends, the Fiat Group expects 2002 to
be another year of transition.

In terms of operating performance, the result of the full year
will be adversely affected by the performance of Fiat Auto. As a
result, the Group expects to close the year with an operating
loss in line with the loss reported in the first half of 2002.
However, given the fact that typically the third quarter is
adversely affected by unfavorable seasonal factors, the operating
result for the full year will reflect the Group's ability to
stage a turnaround in the last three months of the year.

As regards Fiat Auto, the Sector could benefit from an upturn in
unit sales made possible by the positive impact of the incentives
available in Italy for the purchase of environmentally friendly
cars. However, some important developments require that the
forecasting of future results be approached with some caution: on
the one hand, the need for the Sector to respond to the
aggressive sales promotions launched by its competitors and, on
the other, a likely continuation of the demand contraction that
is affecting most European countries.

The Group's balance sheet has been considerably strengthened
during the first half of the year, but management must remain
firmly committed to reducing working capital requirements and
applying a rigorously selective approach when making capital
investment decisions.

The Fiat Group intends to achieve the targets formally agreed
upon this past July with its lending banks, using resources
obtained through operating cash flow and, when appropriate,
through additional divestitures of nonstrategic assets, as was
the case with the agreement reached this past August for the sale
of the Teksid Aluminum Business Unit to the Questor Management
Company (this sale is subject to the approval of the antitrust
authorities). Under the agreement reached with the lending banks,
the progress made toward attaining these objectives will be
measured by taking into account the proceeds generated by the
Italenergia transactions and by all binding contracts for the
sale of assets, including those not yet finalized.

While significant obstacles remain, thanks to the transactions
completed in the first half of 2002 the Fiat Group is under
significantly less financial pressure and can pursue its
objective of a stronger industrial position with greater
confidence.

View table on financial highlights:
http://bankrupt.com/misc/fiat2.pdf

Contact Information:

Fiat Group S.p.A
250 Via Nizza
10126 Turin, Italy
Phone: +39-011-686-1111
Fax:   +39-011-686-3798
Website: www.fiatgroup.com


FIAT: Appoints Ferruccio Luppi as Chief Financial Officer
-----------------------------------------------------------
Effective October 1st, Ferruccio Luppi will be appointed Chief
Financial Officer of the Fiat Group. Ferruccio Luppi will join
Fiat from the Worms Group, where he is holding the position of
General Manager.

Damien Clermont will assume the responsibility of the new
Strategic Development Central Direction, which will become
operational as of October 1st.

About Mr. Ferruccio Luppi:

Born in Turin on 3 November 1950
Degree in Economics
From 1973 to 1983 he practiced his profession with major Italian
corporate groups.
From 1984 to 1996 he worked at the IFIL Group, where first he was
responsible for Equity Investments Control and then headed the
Group's Development and Control Department.
In 1997 he joined the Worms Group, an investment holding company
listed on the Paris Stock Exchange, as head of the Industrial
Investments Control Department.
At the beginning of 1998 he was named General Manager and joined
the Group's Board of Directors.

Contact Information:

Fiat Group S.p.A
250 Via Nizza
10126 Turin, Italy
Phone: +39-011-686-1111
Fax:   +39-011-686-3798
Website: www.fiatgroup.com


===================
L U X E M B O U R G
===================


VANTICO GROUP: Moody's Lowers Debt Securities Rating to Ca
----------------------------------------------------------
Moody's Investors Service has lowered the debt securities rating
of Luxembourg-based Vantico Group S.A. from Caa1 to Ca, and its
Senior Implied rating from B2 to Caa2.

The rating agency also lowered the ratings on the bank debt
facilities of Vantico International S.A. from B2 to Caa1.

The rating affects approximately US$690 million of debt
securities.

Ratings affected are as follows:

- Senior Implied lowered from B2 to Caa2

- Unsecured Issuer rating lowered from Caa1 to Ca

- EUR 250 million in 12% senior notes of Vantico Group S.A.
lowered from Caa1 to Ca

- Bank debt facilities for Vantico International S.A. lowered
from B2 to Caa1

The action reflects a risk for bondholders after the management
motions to restructure.  Out of the group's employment of Close
Brothers Corporate Finance to assist it in its restructuring
efforts, Moody's concludes that, "a restructuring of the balance
is highly probable." The restructuring means material losses for
par bondholders according to the rating agency.

Moody's also fears that the group will default on its Q3 bank
covenants only 6 months after it has negotiated with banks on a
new facility covenant.

The rating agency is also concerned about Vantico Group's
liquidity position, saying it might need a further capital
injection if cash inflows and market conditions do not improve.
The group's liquid assets amounting to CHF93 million in June is
expected to be further depleted by its cash utilization rate in
the coming months "due to the continued weak demand environment
and pricing pressures in particular for the basic liquid resins
and solid resins business".

Vantico's obligations include a mandatory bank debt repayment of
CHF 24 million on December 31, 2002 and a further CHF 30 million
on June 30, 2003 in addition to the high yield interest payment
of EUR 15 million (CHF 22 million) in February 2003 and
annualised CAPEX of around CHF 30 million.

The ratings remained on negative outlook.

Vantico Group is a leading global manufacturer of epoxy products
and other high-performance thermosetting materials.


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


LYCOS EUROPE: Signs Three-Year Pan-European Deal With Espotting
---------------------------------------------------------------
Espotting Sponsored Listings To Appear In Lycos' Directory And
Channel Pages

London 13th September, 2002. In a first of its kind deal,
Espotting Media, Europe's largest pay-per-click network, today
announced a three-year pan-European deal with Lycos Europe, one
of Europe's leading Internet destinations. This is the first time
a paid for listings provider is integrating their sponsored
listings in to the Directory and Channel pages of a portal on a
pan-European basis. The deal covers inter alia UK, France,
Germany, Spain and Italy. The implementation will take place in
Q3, 2002.

Espotting will display their Top 4 sponsored listings on all of
Lycos' Channel Pages and their Top 3 sponsored listings on all of
Lycos' Directory Pages. Their results will be clearly labelled as
'Sponsored Links.' These sections of the Lycos sites attract a
large amount of targeted and category specific traffic -
Espotting's 8,500 advertisers, which include eBay, Procter &
Gamble, BA, Renault, Opodo and Direct Line, will now benefit from
this traffic.

'This is a first of its kind deal and is in line with Espotting's
strategy to deliver our advertisers quality, targeted leads
through all types of distribution sources - whether that be
through channels, directories, search, email or wireless. It is
all about reaching the right people, at the right time' commented
Daniel Ishag, CEO & Founder.

Espotting is the largest pay-per-click network in Europe with
operations in the UK, France, Germany and Spain. Espotting Italia
launches in Q3 2002. As well as Lycos Europe, distribution
partnerships across Europe also include Yahoo! Europe, AltaVista,
Ask Jeeves, Tiscali Recherche and Web.de.

'We are happy at having established this partnership with
Espotting, which allows us to develop new revenue streams and
leverage our core strengths, whilst simultaneously satisfying the
needs and interests of our users' commented Michael Rohowski,
Head of Business Development/Sales Europe Lycos Europe.

'We are delighted at the expansion of our relationship with Lycos
Europe and look forward to the continued successful partnership
amongst two of Europe's leading Internet companies' commented
Ishag.


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


NETIA HOLDINGS: Court Postpones Approval of Plan for Subsidiary
---------------------------------------------------------------
Netia Holdings S.A. (Nasdaq: NTIAQ/NTIDQ, WSE: NET), Poland's
largest alternative provider of fixed-line telecommunications
services, on Thursday announced that the Polish court postponed
its decision on the approval of the arrangement plan for Netia
South Sp. z o.o. ("Netia South"), one of Netia's subsidiaries,
adopted unanimously by Netia South's creditors on August 29,
2002.

The postponement is due to the necessary completion of an appeal
filed by a minority group of Netia's claimholders comprised of
SISU, OTA and Triage funds challenging the court's decision
excluding them as parties to the Netia South's arrangement
proceeding. The lower court based its decision on the fact that
these dissenting parties were not creditors of Netia South and
were therefore not entitled to participate in Netia South's
arrangement proceedings as a party. The date of another hearing
for the approval of Netia South's arrangement plan will be set
after the completion of this appeal.

CONTACT:  Netia, Warsaw
          Anna Kuchnio (IR), +48-22-330-2061
          Jolanta Ciesielska (Media), +48-22-330-2407
                or
          Taylor Rafferty, London
          Alexandra Jones, +44-(0)20-7936-0400
               or
          Taylor Rafferty, New York
          Jeff Zelkowitz, 212/889-4350


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


CREDIT SUISSE: Elects Walter B. Kielholz as New Chairman
--------------------------------------------------------
Credit Suisse Group announced Thursday that the Board of
Directors has elected Walter B. Kielholz its new Chairman,
effective January 1, 2003. Lukas Mhlemann has decided to step
down as Chairman and Member of the Board of Directors and as
Chief Executive Officer at the end of 2002. Mr. Kielholz is
currently Chief Executive Officer of Swiss Re and Vice-Chairman
of Credit Suisse Group's Board of Directors.

The Group also announced that Oswald J. Grbel, Chief Executive
Officer of Credit Suisse Financial Services, and John J. Mack,
Chief Executive Officer of Credit Suisse First Boston, will
additionally become Co-Chief Executive Officers of the Group as
of the beginning of 2003. At the same time, Hans-Ulrich Doerig,
Vice-Chairman of Credit Suisse Group's Executive Board, will
assume responsibility for the Group's Corporate Center.

Lukas Mhlemann said: "The decision to step down as both Chairman
and CEO by the end of this year has not been an easy one for me
to make. I care deeply about Credit Suisse Group and the people
who work here. By taking this step, I hope to better position
Credit Suisse Group for future success by removing any questions
surrounding my leadership of the company."

Walter Kielholz said: "The Board of Directors is grateful to
Lukas Mhlemann for his decisive role in reshaping Credit Suisse
Group, particularly in establishing a strong presence in the
areas of asset management and investment banking. I have great
respect for his achievements, and I also respect his decision to
step down at the end of the year. The Board joins all his many
friends at Credit Suisse Group in wishing him the best for the
future."

Mr. Kielholz continued: "Credit Suisse Group has a solid
foundation of sound business fundamentals and a strong global
platform on which to build for the future. My immediate priority
will be to address the challenges created by the difficult market
environment facing the entire financial services industry, so
that we can move forward to realize the company's full
potential."

Mr. Kielholz added: "I look forward to working closely with John
Mack and Ossi Grbel. The Group is fortunate to have such widely
respected industry leaders. Together, we intend to leverage
Credit Suisse Group's strength to serve the best interests of all
our stakeholders, including employees, clients and shareholders."

In the course of its regular strategic review, the Board of
Directors also has reaffirmed Credit Suisse Group's current
strategy and its structure, comprised of the business units
Credit Suisse Financial Services, focusing on the banking and
insurance business, and Credit Suisse First Boston, the Group's
investment banking and institutional asset management arm.

CONTACT:  Inquiries:
          Credit Suisse Group
          Media Relations Telephone
          Phone: +41 1 333 8844


         Credit Suisse Group
         Investor Relations Telephone
         Phone: +41 1 333 4570


CREDIT SUISSE GROUP: Former Head Open on CSFB Future
----------------------------------------------------
Ex-CEO Lukas Muhlemann had expressed an open option for the
future of its investment bank, Credit Suisse First Boston, days
before he stepped down from office.

According to the Financial Times, Mr. Muhlemann said: "Of course,
it's our duty to review our portfolio periodically. And if
there's a better owner that can convincingly create more value
out of a particular asset, I think we then have to go over the
books."

According to the report, CSFB is one the world's largest
investment banks but it has suffered poor returns because of its
inflated cost base.  It has also been subject to several damaging
regulatory probes.

Analysts and executives at Credit Suisse Group believe Mr.
Muhlemann was considering selling CSFB when market conditions are
favorable.

Bank of America, Citigroup and Deutsche Bank are seen as
potential buyers for the business, although none of these is
known to be seeking acquisitions.

Credit Suisse Group has reported net loss of CHF579 million in
the first half of the year due to the extremely low investment
income in the insurance businesses.

The Swiss financial services group's shares have fallen nearly
50% this year, mainly as a result of poor investment returns at
Winterthur, its insurance business. Executives at the company
also believed Mr. Muhlemann was considering divesting large parts
of the business, including operations in central and eastern
Europe, and in Asia.


CREDIT SUISSE: CSFB Announces Opening of Baltimore Office
---------------------------------------------------------
Pershing, a Credit Suisse First Boston company, announced the
opening of an office in Baltimore, MD. Located near Baltimore's
Inner Harbor, employees in the office will provide relationship
management support for new and existing Pershing introducing
broker-dealer customers.

Pershing's Baltimore office will include a total of four
relationship managers by year-end. The establishment of the
office increases Pershing's regional office presence to a total
of seven locations outside of its Jersey City, NJ headquarters.
As the firm's executive officers note, this expansion highlights
Pershing's customer focus and relationship management philosophy.

"We work closely with our introducing broker-dealer customers to
provide the products, service levels, and support they need to
build their businesses," Pershing's Chief Executive Officer,
Richard F. Brueckner, explains. "Maintaining close geographic
ties to our customers is a critical component of our customer-
centric approach."

"The establishment of our Baltimore office further strengthens
our ability to provide customers with a personalized level of
service required to develop a strong strategic relationship,"
says Brian T. Shea, Chief Operating Officer, Pershing. "And that
will help our customers gain a competitive advantage by
delivering an even higher level of service to their clients."

About Pershing

Pershing is a division of Donaldson, Lufkin & Jenrette Securities
Corporation, a Credit Suisse First Boston company. Located in
eleven offices worldwide, Pershing is a leading global provider
of securities processing and investment-related products and
services to nearly 800 institutional and retail financial
organizations, registered investment advisors, and managed
account programs. Its businesses include execution, settlement,
financing, and information management services. For more
information on Pershing, refer to the company's web site at
www.pershing.com.

CONTACT:  Press Contacts:
          Barbara Gallo  Pershing
          Jersey City  Tel: (201) 413-2930
          E-maiL: bgallo@pershing.com


LM ERICSSON: Will Deliver Dual Band GSM Network in Sudan
--------------------------------------------------------
Ericsson has signed a turnkey contract for expansion of a GSM
network in Sudan with Mobitel, a company jointly owned by Sudatel
and MSI Cellular Holdings of the Netherlands.

Sudatel is the incumbent fixed network operator with over 700,000
subscribers whilst MSI has invested in 13 GSM networks in 13
African countries. The initial contract, as a part of a strategic
framework agreement, includes radio (BSS) and switching (SS)
equipment as well as installation and professional services.
Mobitel is the only operator in Sudan to offer GSM services.

With this contract, Ericsson will install over 100 BTS sites with
an overall capacity of over 400,000 subscribers. With only
170,000 users in Sudan at the present time and a population
exceeding 33 million inhabitants, there is a substantial
potential for new mobile users in the country. Ericsson's GSM
solution will enhance Mobitel's coverage and capacity to meet the
untapped demand. Implementation will begin immediately, and when
completed by the end of the year, the GSM network will allow
Mobitel to offer their customers the latest, most advanced
services and to further reinforce their leading position in the
market.

"We are delighted to have Ericsson as our partner in Sudan. With
the substantial demand for mobile services in Sudan and the
imminent arrival of competition, Mobitel is very keen to work
with a supplier who has demonstrated a track record of good
service, prices and leading edge equipment," says Dr. Abdel Aziz
Osman, Chairman of Mobitel Board.

This agreement reinforces Ericsson's position as the leading
supplier of mobile systems, and our commitment to deliver
advanced wireless services to Africa.

"We are very pleased to become Mobitel's partner and bring the
latest GSM services to the rapidly growing GSM audience in Sudan.
The contract is also an important milestone in our strong, long-
term relationship with MSI Cellular, one of the leading pan-
African operators. This also represents a considerable and
inspiring step for the Northern African market," says Mats
Dahlin, President of MA Europe, Middle East and Africa, Ericsson.

Ericsson is shaping the future of Mobile and Broadband Internet
communication 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:

Peter Olofsson
Ericsson Corporate Communications
Phone: +46 8 719 1880, +46 70 267 3445
E-mail: peter.olofsson@lme.ericsson.se


LM ERICSSON: Provides Network Deliveries in Iran
------------------------------------------------
Ericsson Enterprise has been chosen as a supplier of equipment
and solutions to Shiraz Electronic Industries (SEI) in Iran.
Ericsson will provide converged solutions for voice and data to
enterprises in Iran worth 18,3 Million USD.

The scope of the agreement is deliveries of equipment for over
100.000 users of voice and data services over an ATM backbone.
Solutions are built on a converged platform consisting of
Ericsson products such as the MD110 communications platform and
the AXD data networking family.

"We are very pleased to have been chosen by SEI," says Mats
Halvorsen, Vice President of Ericsson Enterprise. "It is living
proof that SEI appreciates and trusts the strength, security and
flexibility of our converged solutions for enterprises."

To support SEI in this nationwide, important project, Ericsson
Enterprise is working together with its partner Communication
Performer Group (CPG) in Turkey, when it comes to training and
servicing.

"Ericsson has great experience in this field, working as long
term partner in turn-key projects like this where technology
transfer, product support, training and servicing are essential
components," says Mats Halvorsen. "Our track record, combined
with Ericsson's leading global position in mobile communications,
is what gave us the competitive advantage in winning this
contract."

Ericsson (http://www.ericsson.com)isshaping 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:

Katharina Praschl
Tel.: +43 664 210 4627
Fax: +431 81100 6090
E-Mail: katharina.praschl@abg.ericsson.se

Lotta Lundin
Investor Relations
Phone: +46 8 719 0899, +46 7887 628 707
E-mail: lotta.lundin@clo.ericsson.com


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


BALTIMORE TECHNOLOGIES: Sells Hardware Business for GBP4 MM
-----------------------------------------------------------
Baltimore Technologies plc announced that it has completed an
agreement to sell its hardware operations based in the UK, for a
total consideration of GBP4 million to the Ireland based AEP
Systems Limited. The transaction consideration consists of an
initial cash payment of GBP3.0 million with retention against
warranties of GBP0.3 million. The balance of the consideration,
which is payable in cash, is contingent on AEP achieving certain
levels of sales from now until 31 December 2004 for the Baltimore
Hardware Products it has acquired. At the same time, AEP has
appointed Baltimore as a worldwide distributor of Baltimore's
former hardware products.

Bijan Khezri, Chief Executive Officer of Baltimore Technologies
plc commented:

'This transaction represents an important milestone in
strengthening our competitiveness in the marketplace. The
combination of Baltimore's hardware products together with AEP's
microprocessor-based technology represents a true gain for our
customers. AEP's outstanding chip-design capabilities will not
only substantially enhance the competitiveness of our existing
hardware products but this strong partnership will provide
Baltimore with an important platform to exploit chip-based
security technology. Indeed, this transaction reinforces the
software focus of our business around high-end authentication,
authorization and digital signing systems in finance, government
and wireless.'

AEP is a privately held company specializing in high performance
cryptographic sub-systems and appliances for the SSL, PKI, VPN
and Mobile markets. Its investors include b-Business Partners,
ACT Venture Capital, Island Capital, and Intel.

In the year ended 31 December 2001, Baltimore's hardware
operations made a net profit before tax of GBP0.3 million and had
net assets of GBP2.2 million. Proceeds from the acquisition will
be used for general corporate purposes. Baltimore's Hardware
operation comprises approximately 30 employees based in Hemel
Hempstead who are being retained by AEP. It specialises in
designing, and developing high security cryptographic hardware
products, for use, in particular, in Finance, and Government.

Pat Donnellan Chief Executive Officer of AEP Systems said:

'The acquisition is an important step towards leading AEP to
market leadership in the e-security and acceleration hardware
business.' commented Pat Donnellan, CEO, AEP Systems.
'Baltimore's hardware business is an excellent strategic and
cultural fit. Both organizations have experienced and talented
teams. By creating one cohesive unit, we can take full advantage
of these critical assets to expand the market reach of the
combined product range. With the addition of SureWare products,
AEP strengthens and broadens its product range. In turn, new
versions of SureWare products will benefit from AEP's chip
technology, providing Baltimore with improved hardware products
to underpin their software solutions.'
Baltimore Technologies' products, professional services and
solutions address the fundamental security needs of e-business.
Baltimore's e-security technology provides companies with the
necessary tools to verify the identity of transaction partners
and securely manages which resources and information users can
access on open networks. Many of the world's leading
organizations use Baltimore's e-security technology to conduct
business more efficiently and cost effectively over the Internet
and wireless networks.

Contact Information:

Edward Bridges/Alastair Hetherington
Financial Dynamics
Tel: +44 207 831 3113


CORDIANT COMMUNICATIONS: Announces Changes in Board Management
--------------------------------------------------------------
The Board of Cordiant (NYSE:CDA) announces that the Chairman,
Charlie Scott has confirmed his intention to leave the company
once a successor has been identified. Last year, Mr. Scott had
agreed with the Board that he wanted to hand over his position
during 2003, having spent 13 years working for the Group.

The Board has asked Mr. Scott to lead the search for his
replacement and that exercise is currently underway. Mr. Scott
intends to step down once the current management transition at
Cordiant is complete and a new Chairman has been appointed.

CONTACT:  College Hill
          Alex Sandberg/Dick Millard
          Tel: 44 20 7457 2020


CORDIANT COMMUNICATIONS: Announces Notice on Fidelity Holdings
--------------------------------------------------------------
Cordiant Communications Group plc ("Cordiant") (NYSE:CDA):

Cordiant was notified on September 17, 2002 that Fidelity
International Limited (FIL) and its direct and indirect
subsidiaries have a holding of 11,884,777 Ordinary shares,
representing 2.90% of the issued share capital of the Company.

CONTACT:  Cordiant
          Nathan Runnicles
          Phone: 44 207 262 4343
          College Hill
          Alex Sandberg
          Dick Millard
          Phone: 44 207 457 2020


CORUS GROUP PLC: Completes Sale of Aluminium Smelter Stake
----------------------------------------------------------
Following receipt of clearance from the Canadian competition
authorities, Corus has on Tuesday completed the sale of its
entire 20 per cent interest in the Aluminerie Alouette consortium
to Alcan Inc. for US$165m (GBP107m approx). In addition, Corus
will receive a consideration for working capital.

Alouette is an aluminium smelter located in Sept-Ales, Quebec,
Canada with an annual capacity of 243,000 tonnes.

The intention to sell its interest in Alouette as a first step in
the divestment of the group's aluminium businesses was announced
by Corus on August 16, 2002.

CONTACT: Corus,
         30 Millbank,
         London, SW1P 4WY,
         Phone: +44 (0)20 7717 4444,
         Home Page: http://www.corusgroup.com/


FILTRONIC: Buys in US$8.0 MM of Its 10% Senior Notes
----------------------------------------------------
Filtronic plc (http://www.filtronic.com),a leading global
designer and manufacturer of customised microwave electronic
subsystems, announces that it has bought in US$8.0 million of its
10% Senior Notes due 1 December 2005 at a discount to par value.
These Notes will be cancelled leaving US$119.2 million of the
Notes outstanding. Filtronic has now bought in and cancelled a
total of US$50.8 million of the Notes. Filtronic is still not
utilising any of its GBP31 million bank overdraft facility.

Contact Information:

Filtronic plc - 01274 530622
Professor David Rhodes
Executive Chairman & CEO
John Samuel
Finance Director
Binns & Co PR Ltd - 020 7786 9600


GLOBAL CROSSING: Classification & Treatment of Claims Under Plan
----------------------------------------------------------------
Global Crossing Ltd., and its debtor-affiliates' Plan of
Reorganization dated September 16, 2002 divides the claims
against and equity interests in the Debtors into separate
classes and summarizes the treatment for each class.  A summary
of the classes and treatment of claims shows:

Class  Description             Treatment
-----  ----------------------  ---------------------------------
        Administrative Expense  Payment in full.
        Claims

        Priority Tax Claims     Payment in full on the Effective
                                Date or over 6 years from date of
                                assessment of tax, with interest
                                or payment as otherwise agreed.

   A    Priority Non-Tax Claims Payment in full of the Allowed
                                amount of claim.

   B    Other Secured Claims    The Debtors reserve the right to
                                pay these secured claims in full,
                                reinstate the debt, return the
                                collateral, or provide periodic
                                cash payments having a present
                                value equal to the value of the
                                secured creditor's interest in
                                the Debtors' property.

   C    Lender Claims           Will receive pro-rata portion of:

                                * US$305,000,000;

                                * US$175,000,000 of New Senior
                                  Secured Notes;

                                * 6% of New Common Stock;

                                * 50% beneficial interest in the
                                  Liquidating Trust;

                                * any recovery on US$7,500,000
                                  reimbursement claim against the
                                  Debtors' directors;

                                * unspecified amount from Bermuda
                                  account.

                                Cash portion of distribution will
                                include US$300,000,000 plus
                                interest earned in bank account
                                where IPC sale proceeds where
                                deposited.

   D    GC Holdings Notes       Will receive pro-rata portion of:
        Claims
                                * US$18,885,000 in New Senior
                                  Secured Notes;

                                * 24.55% of New Common Stock;

                                * 37.77% of beneficial interest
                                  of Liquidating Trust; and

                                * Unspecified amount in cash from
                                  Bermuda Account.

   E    GCNA Notes Claims       Will receive pro-rata portion of:

                                * US$3,185,000 in New Senior
                                  Secured Notes;

                                * 4.14% of New Common Stock;

                                * 6.37% of beneficial interest in
                                  the Liquidating Trust;

                                * Unspecified amount in cash from
                                Bermuda Account.

   F    General Unsecured       Will receive pro-rata portion of:
        Claims
                                * US$2,930,000 in New Senior
                                  Secured Notes;

                                * 3.81% of New Common Stock;

                                * 5.86% of beneficial interest in
                                  the Liquidating Trust;

                                * Unspecified amount in cash from
                                  Bermuda Account.

  [G]   Convenience Claims      Each holder will receive cash
                                payment equal to the lesser of a
                                percentage of that claim or its
                                pro rata share of cash
                                distribution for the claim.

   H    Intercompany Claims     Eliminated by offset.

   I    GC Holdings Preferred   No distribution
        Stock

   J    GCL Preferred Stock     No distribution

   K    GCL Common Stock        No distribution

   L    Securities Litigation   No distribution
        Claims

The recoveries described represent the Debtors' best estimates
of those values given the information available at this time.
These estimates do not predict the potential trading prices for
securities issued under the Plan.  The estimation of recoveries
makes these assumptions:

-- The new debt instruments to be issued under the Plan are
    worth their face value;

-- The estimated total equity value for New Global Crossing is
    US$407,000,000; and

-- The aggregate amount of allowed General Unsecured Claims
    against the Debtors is [___] million.

The distribution of property represents a negotiated settlement
of a number of significant legal issues among the Debtors and
the holders of Claims in Class C on the one hand, and Classes D,
E, F, and [G] on the other hand, as well as the significant
legal issues among Classes D, E, F, and [G].  Among those issues
is the validity and priority of the security interests of the
holders of the Lender Claims, the enforceability of guaranties
provided by the Debtors', and to what extent a substantive
consolidation of some or all of the Debtors should occur.  The
compromise reached by the parties was after extensive analysis
and negotiations. The Debtors believe that the treatment
provisions of the Plan constitute a good faith compromise and
settlement of all those claims and are fair and reasonable to
the holders of Claims in each of those classes.  If the Plan is
not approved, all constituents retain their rights with respect
to such legal issues.  The Debtors also believe that their
creditor constituencies are likely to receive a higher
distribution under the Plan than they would after protracted
litigation regarding such legal issues. (Global Crossing
Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


INVENSYS: Notification of Major Interests in Shares
---------------------------------------------------
Name of company: Invensys plc

Name of shareholder having a major interest: Barclays PLC

Name of the registered holder(s) and, if more than one holder,
the number of shares held by each of them:

ALMIXFTTL-18408-Chase Manhattan             519,216
ASUKEXTTL-20947-Chase Manhattan          16,830,800
Bank of Ireland                             947,361
Barclays Capital Nominees Limited           233,680
Barclays Trust Co & Others                    1,241
Barclays Trust Co as Exec/Adm                 4,534
Barclays Trust Co DMC69                      42,643
Barclays Trust Co R69                        54,873
BLEEQTTTL-17011-Chase Manhattan              53,347
BLENTFUKQ-16344-Chase Manhattan               4,036
BLENTPUKQ-16345-Chase Manhattan              56,192
BLEQFDUKQ-16331-Chase Manhattan           1,097,425
BLEQPTUEA-16341-Chase Manhattan              15,919
BLEQPTUKQ-16341-Chase Manhattan           3,074,064
BLINTNUKQ-Z1AJ-dummy                        186,087
BLINTPUKQ-16342-Chase Manhattan             365,185
BLUKINTTL-16400-Chase Manhattan          38,493,061
Boston Safe Deposit & Trust                 856,319
Chase Manhattan Bank                     31,008,721
CHATRKTTL-16376-Chase Manhattan             873,911
Clydesdale Nominees HGB0125                  12,935
Investors Bank and Trust Co.              3,910,740
JP Morgan Chase Bank                      3,877,557
Mitsubishi Trust International               29,310
Northern Trust Bank - BGI SEPA              973,157
State Street                                 82,885
State Street Bank & Trust                 3,547,952
Sumitomo TB                                  11,927
Swan Nominees Limited                        34,360
Zeban Nominees Limited                      130,956

Class of security: Ordinary shares of 25p each

Date of transaction: September 16 2002

Date company informed: September 19 2002

Total holding following this notification: 107,330,394

Total percentage holding of issued class following this
notification: 3.07%

Name of contact and telephone number for queries:

Victoria Scarth
Senior Vice President
Corporate Marketing and Communications
Tel: 020 7821 3712

Name of company official responsible for making this
notification: Emma Sullivan, Assistant Secretary

Date of notification: 19 September 2002


MARCONI: Announces Next Generation Optical Networking Development
-----------------------------------------------------------------
At a briefing held for European press and industry analysts,
Marconi announced a number of developments designed to expand and
enhance its Optical Networking portfolio.

The Company announced the availability of a series of next
generation
Synchronous Digital Hierarchy (SDH) products, branded Series 4,
which are more cost effective and offer service providers greater
functionality than previous generations of the product. The range
includes the Series 4 SMA, the MSH2K and the MSH64C, which are
available immediately, and the SMA16-64, which will be available
next year.

The Company further announced details of its development plans
for a new multi-layer switch (MLS). This unique, next generation
architecture builds on Marconi's expertise in both SDH and dense
wavelength division multiplexing (DWDM) transmission
technologies. The combination of electrical and optical
switching, and the integration of optical transport capabilities,
on a single platform will allow network operators to simplify the
construction and management of their core transmission networks
in a cost-effective way.

Development work is advanced in Marconi's research and
development laboratories at Backnang in Germany and Genoa, Italy.
The new multi-layer switch will be launched next year.

All investment costs associated with these developments are in
line with the Company's Business Plan, details of which were
announced on 29 August 2002.

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.

The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on the London
Stock Exchange under the symbol MONI.

Contact Information:

Heather Green
Investor Relations
Marconi PLC
Tel: +44 (0) 207 306 1735
E-mail: heather.green@marconi.com


PACE MICRO: Demonstrates European Retail Range at IBC 2002
----------------------------------------------------------
Pace Micro Technology, a pioneer of technology for the digital
gateway market will make a number of announcements on
developments in its Internet Protocol Television (IPTV) strategy
at IBC 2002. Pace is launching an innovative range of advanced,
scalable and cost-effective IPTV home gateways (set-top boxes).
Visitors to Pace's stand 1.135 will see live demonstrations of
Pace's new IP400 family, comprising the IP420, IP440 and IP442
for telcos and broadband IP operators worldwide seeking to launch
advanced television and multimedia services.

Pace will also demonstrate the world's first Window's Media 9
capable home gateways for telecom and broadband IP network
operators. The home gateways, part of Pace's new IP400 family can
be used by operators to create an end-to-end Windows Media
solution for the delivery of high quality, low-bit rate video and
multimedia services over IP networks into consumer homes.

In another example of partnership work, Pace and TANDBERG
Television have combined their expertise to create an innovative
low-cost entry-level television system for broadband IP
operators. To build on the strength of this close working
relationship, TANDBERG Television has joined Pace's IPTV Partner
Programme.

On TANDBERG's stand (1.421) Pace will showcase its Earlybird
compatible home gateway. Earlybird, an end-to-end system for new
satellite operators created by TANDBERG Television and Irdeto
Access, can now utilise Pace's CD.410 or DTVA to complete the
solution for the delivery of television services into consumer
homes.

In addition to developments in IPTV, Pace will announce that
'Puma' 1, the world's first integrated twin decoder and twin
tuner satellite home gateway goes into European distribution this
week. 'Puma' enables viewers to have greater control over their
television viewing. Using 'Puma' viewers can access digital TV
programmes and services independently on two separate TVs. An
enhanced version of Puma -Puma 3- will be launched later in the
year. 'Puma' 3 incorporates hard disk drive technology making it
possible to record TV programmes without videotape. 'Puma' 1 will
be demonstrated live on Pace's stand.

Pace will also demonstrate leading edge technology across all
platforms including the Di300 entry-level digital cable home
gateway, with flexible, scalable design, to enable cable
operators to cost-effectively deploy a range of basic and
advanced digital services. Pace's Di300 can be used as an entry-
level gateway, as support for secondary TVs within the home or as
the basis for providing triple-play digital TV services.

Pace's expertise on the satellite platform will also be
demonstrated, including the world's first low-cost Digital TV
Adapter (DTVA) designed by Pace to widen the reach of digital TV.
The DTVA is available in satellite, cable and terrestrial
versions and the satellite product will be demonstrated at IBC
today.

Solutions for telecommunications operators including Voice Over
Internet Protocol (VoIP) gateways from Vegastream, part of Pace
will also be shown. The Pace Vega 50 Analogue VoIP Gateway is
designed to connect legacy analogue phone systems to IP networks.

Contact Information:

Pace Corporate
Helen Kettleborough
Pace Micro Technology
Tel: +44 1274 538005
E-mail: helen.kettleborough@pace.co.uk

Amanda David
Pace Micro Technology
Tel: +44 1274 537093
E-mail: amanda.david@pace.co.uk


PACE MICRO: Distributes World's First Twin Decoder in Europe
-------------------------------------------------------------
'Puma' 1, the world's first integrated twin decoder and twin
tuner satellite home gateway (set-top box) from Pace goes into
European distribution this week. 'Puma' gives viewers greater
control over their TV viewing, enabling them to access digital TV
programmes and services independently on two separate TVs or
videotape one digital programme while watching another. An
enhanced use of Puma is made possible with the launch of 'Puma' 3
later this year. 'Puma' 3 incorporates hard disk drive technology
so that TV programmes can be recorded without videotape. 'Puma' 1
will be demonstrated live on Pace's stand 135 at IBC 2002 today.

Traditionally the home gateway has only been able to serve one TV
in the home. This poses a problem as some 42% of households
across Western Europe have more than one TV1 Viewers want to
access TV content on more than one TV without paying for multiple
gateways. This is particularly important in multi-person
households where there is competition for use of the main TV.
'Puma' directly addresses these issues. The integration of a dual
decoder will enable viewers for the first time ever to watch two
different free-to-air or payTV programmes on separate TV sets
using one home gateway. Alternatively, the twin tuner technology
with a dual decoder can enable live programmes to be watched
whilst a second is recorded onto a VCR.

'Puma' 3 enhances the viewing experience further with an
integrated hard disk drive which enables TV content to be
recorded direct onto a hard disk. The hard disk introduces a
range of personal video recording (PVR) services including
pausing and recording of live TV, rewind and fast forward and
additional interactive time-shifting features. 'Puma' 3 also
enables viewers to watch one digital channel while recording
another. These features are in addition to the benefits provided
by 'Puma' 1.

Puma will create important opportunities for European retailers
and could enable European satellite operators to increase
subscriber bases and generate new cross-sale prospects. For
example, Puma requires installation within customer homes and
connection between separate TV sets via cabling or wireless video
transmitters. Retailers are well placed to take advantage of this
opportunity by supplying TV connection equipment and installation
services to Puma customers. Dedicated sales support and a
European-wide retailer roadshow have been launched to educate
retailers on the Puma product range and explore new cross-sales
opportunities.

Access to payTV satellite channels is enabled via the integration
of single or multiple conditional access (CA) technologies
tailored to each European market. 'Puma' 1 and 3 can accommodate
up to three conditional accesses. 'Puma' currently uses the
Mediaguard CA and has licences to integrate a wider range of
European operators' proprietary CAs including Mediaguard, Conax,
Irdeto NDS and Nagravision. An Electronic Programme Guide (EPG)
is also available in a choice of 12 European languages.

'Puma' will be sold across Europe. Stocks have been delivered to
distributors such as STV in Holland, Defisat in Belgium, Shark in
Scandinavia, EBS, Intelsa and Karel/SED in Spain, Augira in Italy
and Telanor and Radiomateriel in Switzerland. 'Puma' will be sold
under the established Pace retail brand name.

Jean Grindel Pace EMEA's Sales and Marketing Manager commented:
"The launch of Pace's Puma range provides viewers with greater
choice and freedom and offers an innovative solution to the
problem of competition for use of the main TV screen. We are
delighted that 'Puma' 1 has gone into European distribution and
are extremely confident that it will be met with great success.

We are looking forward to the launch of 'Puma' 3 later this year.
With its integrated hard disk drive technology, we are sure it
will be as popular as its predecessor."


PACE MICRO: Launches First Set-Top Boxes Supporting Windows Media
-----------------------------------------------------------------
At IBC 2002 (Amsterdam, 13-17 September) Pace Micro Technology is
demonstrating the world's first set-top boxes supporting Windows
Media 9 Series that serve as home gateways for telecommunications
and broadband IP network operators. These set-top boxes, part of
Pace's new innovative IP400 family which is being launched at
IBC, can be used by operators to create an end-to-end Windows
Media solution for the delivery of high quality, low-bit rate
video and multimedia services over IP networks into consumer
homes.

Windows Media 9 Series is highly attractive to broadband IP
operators as it dramatically extends their content options
through material already developed for internet and streaming
media applications. The bandwidth needed to deliver an IP-based
video and multimedia service is also critical and with the need
to balance bandwidth availability against customer reach,
operators must make the most efficient, cost-effective use of
their network resources to make residential services viable.
Consequently the ability of Windows Media 9 Series to deliver the
same quality as MPEG 2 or MPEG4 in a fraction of the bandwidth
has become increasingly important to IP operators such as telcos
who can deliver more content, to more consumers, at a higher
quality over their networks. Pace has led the market in the
development of home gateway platforms capable of managing low-bit
rate material and will ship its IP440 and IP442 to customers
later this year.

Pace's IP400 family is software driven enabling operators to
deliver content to customers in a variety of formats. As encoding
standards develop and evolve, deployed home gateways can be
upgraded remotely over the network, providing 'future-proofing'
reassurance to operators. As a result operators selecting Pace's
platform will receive more flexibility in terms of the evolution
of future codecs.

Andrew Clifforth, managing director of Pace's IPTV division,
commented: "Broadband network operators are in a stronger
position than ever before as technology advancements such as low-
bit rate encoding and flexible software reduce their risk and
make deployments easier and more cost-effective. However, to
deploy now and compete effectively a range of high-quality
content is essential. Windows Media 9 Series enables the delivery
of high quality, secure content at the lowest data rates and this
is why we are supporting it with our IP400 family of home
gateways. We believe the combination of Pace's IP home gateways
and Windows Media 9 Series will be a compelling choice for
broadband operators planning TV-based entertainment services."

"By supporting Windows Media 9 Series, Pace is helping to enable
new and exciting home-entertainment experiences for consumers,"
said Jonathan Usher , director of the Windows Digital Media
Division at Microsoft Corp. "We developed Windows Media 9 Series
to deliver the highest- quality digital media at the lowest data
rates, and Pace Micro Technology is helping to make this
breakthrough quality available to network operators as they bring
new entertainment experiences into the living room."

Contact Information:

Helen Kettleborough
Pace Micro Technology
Tel: +44 1274 538005
E-mail: helen.kettleborough@pace.co.uk

Amanda David
Pace Micro Technology
Tel:+44 1274 537093
E-mail: amanda.david@pace.co.uk


RAILTRACK: Announces Return of Cash to Shareholders
---------------------------------------------------
-Directors estimate return of 252 to 260 pence per Share
(previous estimate 245 to 255 pence)*

-First instalment of cash expected to be 200 to 220 pence per
Share by
early January 2003 (previous estimate 160 to 180 pence)*

-The balance (save for one pence per Share) expected before 31
December 2003*

-Shares remain listed until 27 December 2002

-Disposals of Railtrack PLC to Network Rail and the Group's
interests
in the CTRL to LCR expected to complete in early October 2002

-EGM to be convened for 18 October 2002 principally to consider
the
solvent Members' Voluntary Liquidation of Railtrack Group and the
appointment of partners in Deloitte & Touche as Liquidators**

*   subject to factors described in 'Return of cash' in Part I of
this announcement

** subject to completion of the Disposals of Railtrack PLC and
the Group's interests in the CRTL sufficiently in advance of the
EGM on 18 October

Commenting on the proposals, Geoffrey Howe, Chairman of Railtrack
Group PLC, said:

'We expect the sale of Railtrack PLC to Network Rail and the sale
of our interests in CTRL to LCR to complete in early October. The
Board's priority is now to return cash to shareholders in a tax-
efficient manner as quickly as possible through a solvent
liquidation of Railtrack Group.'

'Over the summer the management team has worked successfully to
maximise value for shareholders through the sale of various of
the Group's other assets.  As a result, the total cash now
expected to be returned to shareholders is between 252 to 260
pence per share which is higher than previously estimated.  In
addition, the proposed first instalment of between 200 to 220
pence per share, expected to be made by early January 2003,
represents a significant increase over our earlier expectations.'

Shareholder helpline:                            0870 702 0104

Lehman Brothers Europe Limited, which is regulated in the UK by
the Financial Services Authority, is acting for Railtrack Group
PLC and no one else in connection with the proposals described in
this press release and will not be responsible to anyone else for
providing the protections afforded to the clients of Lehman
Brothers Europe Limited nor for providing advice in relation to
such proposals.

PART I

Proposed return of cash to Shareholders by means of a solvent
Members' Voluntary Liquidation, proposed reduction in the minimum
number of directors and proposed change of name

Shareholders voted overwhelmingly in favour of the Disposals of
Railtrack PLC and the Group's interests in the Channel Tunnel
Rail Link at an extraordinary general meeting on 23 July.

The Board now expects that the Disposals will be completed in
early October. The Company will today be writing to Shareholders
to set out further details of the Board's plans for returning
cash to Shareholders through a Solvent Liquidation, to update
them on the process for disposing of the Group's remaining assets
and to give them notice of an EGM which will take place on 18
October 2002. At this meeting, Shareholders will be asked to
place the Company into solvent Members' Voluntary Liquidation, to
approve a resolution to reduce the minimum number of directors
from four to two and to approve a resolution to change the name
of the Company.

Whilst the Board is keen to facilitate a quick return of cash, it
believes that it would be inappropriate to commence the Proposed
Liquidation prior to Completion of the Disposals.  This is
because, without the proceeds of the Disposals and certain
guarantees being released, the Board may be unable to make the
declarations necessary to commence the solvent Members' Voluntary
Liquidation.  Shareholders should therefore note that the
business to be transacted by certain of the resolutions in the
notice, being to commence the Solvent Liquidation, can in the
Board's view only properly be carried out at the EGM on 18
October if the Disposals of Railtrack PLC and the Group's
interests in the CTRL have been completed sufficiently in advance
of the meeting.  Whilst the Board believes that Completion will
take place in early October, because there are a number of
parties to the agreements, it cannot guarantee that this will be
the case.

If Completion has not occurred sufficiently in advance of the
EGM, the Board believes that it may be appropriate for the EGM to
be adjourned prior to consideration of the resolutions regarding
the Proposed Liquidation.

Developments since 27 June

Disposal of the Broadgate Development

Railtrack Group has sold its interest in the Broadgate
Development, held by Railtrack Developments Limited ('RDL'), to
British Land for approximately GBP40 million in cash. British
Land has released Railtrack Group from its guarantee of
the performance of RDL's investment in the Broadgate Development
joint venture.
The net book value of Railtrack Group's interest in the Broadgate
Development as
at 31 March 2002 was GBP31 million.

Disposal of Railtrack (Spacia) Limited

Railtrack Group has sold Railtrack (Spacia) Limited, which holds
long term leases over 130 railway arches, to Railtrack PLC for
approximately GBP17 million in cash. Railtrack Group has retained
certain property interests, which were previously held through
Railtrack (Spacia) Limited.

The net book value of the properties included in the sale of
Railtrack (Spacia) Limited as at 31 March 2002 was approximately
GBP16.5 million. The net book value of the retained properties as
at 31 March 2002 was approximately GBP5.5 million.

Disposals of Railtrack PLC and the Group's interests in the CTRL

The Board expects the Disposals of Railtrack PLC and the Group's
interests in the CTRL to be completed in early October. However,
because there are a number of parties to the agreements, the
Board cannot guarantee that this will be the case. The Board
expects that the Disposals will realise net cash proceeds for the
Group of GBP854 million, after a GBP6 million adjustment for the
working capital in Railtrack UK and estimated transaction costs
of GBP15 million. This, together with the sum of approximately
GBP350 million due to be paid by Railtrack PLC to the Group,
would result in the Group's cash balance increasing by GBP1,204
million.

Completion of the Disposals is subject to the prior satisfaction
of certain conditions. The circular to Shareholders dated 27 June
2002 contained details of these conditions, all of which have
been satisfied, save for the following:

1) state aid clearance from the European Commission.  The
European
Commission announced on 17 July 2002 that the state funded
financial support measures in respect of the Railtrack PLC
Disposal had been approved by the European Commission on a 'no
aid' basis.  HM Government and Network Rail stated on 18
September 2002 that the European Commission had approved the
state funded financial support measures in respect of the CTRL
Disposal.  The Board expects LCR to confirm that the state aid
condition to the CTRL Disposal has been satisfied by 30 September
2002 once HM Government and LCR's financiers have completed their
consideration of the European Commission decision;

2) release of the CTRL Financial Guarantees.  The Board
understands from LCR that good progress has been made to date and
expects this condition to be satisfied in time to permit
Completion to take place in early October;

3) approval of the change of control of Railtrack PLC by the
Secretary of State pursuant to the network station licences
granted to Railtrack PLC. The Board expects that this approval
will be given prior to the discharge of the Administration Order;
and

4) discharge of the Administration Order. The Board expects that
this will be applied for once the conditions described above have
been satisfied.

Due to the extended state aid approval process and after
consultation with the other parties to the Disposal Agreements,
the Board now expects that the Proposed Disposals will be
completed in early October.

Remaining assets

Railtrack Developments Limited (RDL)

The Board is continuing to pursue options to maximise value from
the remaining assets of RDL and has retained Jones Lang LaSalle
Corporate Finance as property advisers to assist in this process.
Whilst this process is now well underway, with expressions of
interest received from over 40 parties to date, the Board does
not expect it to complete before the end of the year.

Railtrack Telecoms Services Limited (RTS)

The Board is continuing to pursue options to realise value from
RTS and is progressing the litigation against Marconi Corporation
plc in relation to the Ultramast joint venture and the remaining
shareholding of RTS in Easynet Group Plc.

On 25 July 2002, the High Court ordered Marconi to pay into court
GBP20 million plus interest in respect of the claim by RTS
against Marconi.  The money is currently being held by the High
Court pending the High Court's determination of certain claims
Marconi has asserted against RTS and which RTS rejects.

Return of cash

Expected distribution

On 27 June 2002 the Board estimated that, were all Railtrack
Group's assets to be realised as expected and were no further
liabilities to arise, Railtrack Group would be able to return to
Shareholders between 245 and 255 pence per Share. The Board has
made significant progress in realising various of the Group's
other assets (principally through the disposal of the Group's
interest in the Broadgate Development and Railtrack (Spacia)
Limited, both sold at prices in excess of their respective book
values) and extinguishing its liabilities (including certain
inter-company balances owed to Railtrack PLC). As a result, the
Board, in consultation with the Proposed Liquidators, now
estimates that, were the Group's remaining assets to be realised
as expected and were no further liabilities to arise, Railtrack
Group will be able to return to Shareholders between 252 and 260
pence per Share. Further details on the return of cash including
factors which could affect the amount to be returned are set out
below.

Installments

On 27 June 2002 the Board also stated that, subject to certain
guarantees having been released, it believed that a first
installment of 160 to 180 pence per Share could be returned
within four months of Completion of the Disposals of Railtrack
PLC and the Group's interests in the CTRL. The disposals of the
Group's interest in the Broadgate Development and Railtrack
(Spacia) Limited have been completed and the guarantee by
Railtrack Group of certain obligations relating to the Broadgate
Development has been released earlier than the Board previously
expected. As a result, assuming that the guarantees relating to
the CTRL are released, that the Disposals of Railtrack PLC and
the Group's interests in the CTRL are completed sufficiently
before the EGM and that the resolution to commence the Proposed
Liquidation is passed on 18 October 2002, the Board, in
consultation with the Proposed Liquidators, now believes that,
were no further liabilities to arise, the first installment could
be increased to 200 to 220 pence per Share and could be returned
by early January 2003. Further details on the return of cash
including factors, which could affect the amount to be returned,
and the timing, are set out below.

The timing of further installments of cash will depend on the
amount and timing of the realisation of value and the settlement
of liabilities relating to RTS and RDL and the timing of the
agreement of any other liabilities including tax liabilities. The
Directors, in consultation with the Proposed Liquidators, expect
that further distributions representing the remainder of the
total cash to be returned (save for the one pence per Share
referred to below) will be made before the end of 2003.  On the
basis of present indications however, this is unlikely to be
before the end of March 2003.  Further details on the return of
cash, including factors which could affect the amount to be
returned, and the timing, are set out below.

The proceeds of the Disposals and other surplus cash will be
invested by the Company in a combination of money market
deposits, money market funds and commercial paper. The Directors
have been informed by the Proposed Liquidators that they intend
to continue this policy for the first six months of the Proposed
Liquidation. Insolvency legislation requires that liquidators pay
the balance of funds under their control into the 'Insolvency
Services Account' at the Bank of England six months after the
commencement of liquidation at which point funds are placed in an
interest bearing account or invested in Government securities.

The Directors, in consultation with the Proposed Liquidators,
expect that a small amount, likely to be approximately one pence
per Share, will be retained by the Company for a period of six
years from the commencement of the Liquidation. The reason for
retaining this amount would be to defend any unexpected claims
against the Company and to cover any other miscellaneous expenses
incurred by the Proposed Liquidators in the discharge of their
duties. The reason for retaining this sum for a period of six
years is that this is the applicable statutory limitation period
for most claims. The Directors expect that this sum would
therefore be returned to Shareholders in 2008.

Factors which could affect the amount to be returned and timing

The total amount of cash which can be returned to Shareholders
remains dependent upon a number of factors including the prices
which purchasers may be prepared to pay for Railtrack Group's
remaining assets including RDL and RTS, the amounts required to
settle outstanding liabilities, transaction costs incurred by
Railtrack Group and any taxes payable on the disposal of any
assets. The Board's
estimate of the total amount to be returned, and the timing and
the amount of the first instalment of cash is subject to any
liabilities that are brought to the attention of the Liquidators
or the Board after the date of this document, the existence or
extent of which the Board is not or may not be aware as at the
date of this document (whether as a result of not having been
provided with access to information which relates to Railtrack
Group and which is in the possession or under the control of the
Administrators of Railtrack PLC or otherwise).

The Board cannot guarantee that the Liquidators will return cash
to Shareholders as described in this document because the
decision as to the amount and timing of cash instalments will be
under the control of the Liquidators and taken in view of the
circumstances at the time. In addition, the Liquidators may seek
directions from the High Court prior to returning cash to
Shareholders.

The amount and/or timing of the first instalment will depend on
the release of the CTRL Financial Guarantees. If the CTRL
Financial Guarantees are not released by Completion either:

(a)    the amount of the first instalment may be reduced unless
the CTRL Financial Guarantees are released after Completion of
the Disposals but prior to the payment of the first instalment;
or

(b)    the payment of the first instalment may be delayed until
six months (being the applicable time limit under insolvency
legislation) after the repayment of the CTRL Bank Facilities
unless the CTRL Financial Guarantees are released in the
intervening period.

Proposed Liquidation

In June, the Board stated its intention to return cash as soon as
possible by effecting a solvent liquidation of Railtrack Group.
The Board has concluded, having considered all the options, that
a solvent liquidation would indeed be the most effective
mechanism to return cash to Shareholders.

In a solvent liquidation the powers of the directors cease and
the liquidators assume responsibility for the company's affairs.
The liquidators deal with the realisation of assets, the
agreement of liabilities and the distribution of the company's
surplus funds to the shareholders as and when funds permit.

Prior to distributing cash to shareholders, liquidators must be
satisfied that either all liabilities have been settled or that
sufficient cash has been retained to discharge or provide for all
actual and contingent liabilities. This involves an initial
period of at least 21 days during which liquidators advertise for
claims against the company being liquidated, specifying a
deadline by which any claims must be notified. Cash can be
released as and when the liquidators determine that all actual
and contingent liabilities have been paid, provided for or
discharged and that there is surplus cash available for
distribution. This process can take time, particularly if there
are liabilities such as taxation to be agreed with the Inland
Revenue or other contingent liabilities that are initially
difficult to quantify or agree. It is therefore usual for cash to
be distributed to shareholders in a series of instalments, the
amount and timing of each being dependent on the cash available
and the status of known and potential liabilities.
The Board will be proposing that James Robert Drummond Smith and
Nicholas James Dargan, both of Deloitte & Touche (the Company's
auditors), be appointed as Joint Liquidators of the Company with
immediate effect upon the passing of the relevant special
resolution.

The Board recommends that partners in Deloitte & Touche be
appointed as liquidators. There are several reasons for this:

-Deloitte & Touche are familiar with the business of the Company
and
understand the nature of its assets and liabilities;

-liquidators from Deloitte & Touche would be able to consult
other
partners in the firm who have provided audit and tax services to
the Group;

-as Deloitte & Touche have been involved in the analysis of the
Company's liabilities and contingent liabilities, it is likely
that the
appointment of liquidators from a different firm would delay the
payment of the
first instalment of cash to Shareholders; and

-liquidators from a different firm may require further advice and
time
to become satisfied as to the nature and extent of the Company's
contingent
liabilities which could increase the costs of liquidation.

It is also common practice in a solvent liquidation for partners
in the same firm as the company's existing auditors to be
appointed as liquidators.

In a members' voluntary liquidation, the liquidator's
remuneration can be fixed either (a) as a percentage of the value
of the assets being realised or distributed, or (b) by reference
to the time properly given by him and his staff to matters
arising in the winding up.  If neither method is adopted, the
remuneration will be that determined in accordance with the scale
laid down for the official receiver by general regulations.  In
this case, it is considered that option (a) would be
inappropriate, as would the scale rates paid to the official
receiver.  Accordingly, it is proposed that the remuneration of
the
Liquidators should be fixed at their normal charging rates by
reference to the time properly given to matters arising in the
winding up.  In making such determination, Shareholders should
have regard to the complexity of the Proposed Liquidation, the
exceptional responsibility of such an important and high profile
appointment and the value and nature of the Railtrack Group
assets with which the Liquidators will have to deal.  The
Liquidators are to be authorized to draw sums on account of their
remuneration from time to time as the Liquidation progresses but
will in due course present their itemised bills to
the Company in general meeting for approval.

An extraordinary resolution will be proposed at the EGM to confer
appropriate powers on the Proposed Liquidators in respect of the
settlement of liabilities and the distribution of the Company's
assets amongst Shareholders.

Board changes

Once the Liquidation begins, the powers of the Directors will
cease and the Company will be under the control of the
Liquidators. For this reason, and in order to save costs, it is
proposed that the number of Directors holding office be reduced
to two (the minimum legal requirement) on the Company being
placed into Solvent Liquidation.  Therefore, Geoffrey Howe,
Jonathan Bloomer, Vic Cocker, David Jones, Steve Marshall, John
Robinson, and Gordon Sage will resign from the Board.  In order
to put these arrangements in place, it will be necessary for the
current minimum number of directors of the Company specified in
the Articles of Association to be reduced from four to two. This
change requires the approval of Shareholders and therefore an
ordinary resolution will be proposed at the EGM.

Under amendments to their service agreements, David Harding and
Simon Osborne will remain on the Board and assist the Liquidators
for a limited period. They will each receive an additional bonus
up to a maximum of six months' salary and benefits dependent in
part on the amount of cash paid to Shareholders by the end of
March 2003.

Proposed change of name

Network Rail insisted that Railtrack Group agree to change its
name to remove the word 'Railtrack' as part of the sale
agreement, which was approved by Shareholders at the
extraordinary general meeting on 23 July 2002. The Board is
therefore proposing that the name of the Company be changed to RT
Group PLC.

The change of name requires shareholder approval and therefore a
special resolution is being proposed at the EGM.

Listing and trading

Railtrack Shares will remain listed and continue to be traded on
the London Stock Exchange until 4.30 p.m. on 27 December 2002.
Subject to the commencement of the Solvent Liquidation,
cancellation of the listing of Railtrack Shares on the Official
List will take place and trading in Railtrack Shares will cease
with effect from 4.30 p.m. on 27 December 2002 (whether or not
the first instalment of cash has been returned to Shareholders by
that date) at which point the Company will no longer be obliged
to comply with 'continuing obligations' under the UKLA Listing
Rules. The Proposed Liquidators have confirmed to the Board that
Railtrack Group will retain Merrill Lynch as corporate brokers
and Ashurst Morris Crisp as legal advisers from the date on
which the Company is placed into liquidation until at least 27
December 2002 and will seek advice from them as appropriate on
the application of the UKLA Listing Rules.

Taxation

The Board has been advised that, if a solvent liquidation of
Railtrack Group is effected, the cash returned to Shareholders
will be deemed to be received by way of capital rather than
income.  Broadly, if a Shareholder paid more for his Shares than
he receives back by way of cash distribution, he should not have
any tax to pay.

Extraordinary General Meeting

The proposed reduction in the minimum number of directors, the
proposed change of the Company's name and the Proposed
Liquidation of the Company each require the approval of
Shareholders.  An Extraordinary General Meeting to seek approval
for each of these matters will therefore be convened for 11.35 am
on Friday 18 October 2002 (or, if later, immediately after the
conclusion or adjournment of the AGM convened for 11.30 am on the
same date).

The reason the Board has decided to convene the EGM ahead of
Completion of the Disposals is to facilitate the earliest
possible distribution of the first instalment of cash to
Shareholders and to save costs. Assuming Completion occurs
sufficiently in advance of the EGM on 18 October 2002, by
convening the EGM to commence the Proposed Liquidation on the
same date as the AGM, the additional cost both to the Company and
to Shareholders of holding a separate shareholders' meeting a
number of days after the AGM will be avoided. Were the Board to
wait until the Disposals had completed to call the EGM, the
notice period required for such an EGM would mean that it would
not be possible to hold the EGM until a number of days after the
AGM.  The reason for holding the AGM on 18 October is that this
is the last practicable date prior to the time by which the
Company is required by law to hold its next annual general
meeting.

Provided that Completion of the Disposals has occurred
sufficiently in advance of the EGM on 18 October 2002, the
following resolutions will be proposed: (i) a special resolution
to approve the solvent Members' Voluntary Liquidation, the
appointment of the Proposed Liquidators and the basis of their
remuneration; and (ii) an extraordinary resolution to authorise
the Liquidators to exercise certain powers under the Insolvency
Act 1986 and under the Articles of Association.

If Completion of the Disposals has not occurred sufficiently in
advance of the EGM on 18 October 2002, the Board believes that
the business proposed to be transacted by certain resolutions,
being to commence the solvent Members' Voluntary Liquidation,
could not properly be considered.  This is because without the
proceeds of the Disposals and certain guarantees being released,
the Board may be unable to make the declarations necessary to
commence the Solvent Liquidation. As a result, the Board believes
it may then be appropriate for the meeting to be adjourned to a
later date so that Shareholders are able to vote on the Proposed
Liquidation once completion of the Disposals has taken place and
the Company is sufficiently prepared for liquidation.

Shareholders should be aware that certain information, which
relates to Railtrack Group, is in the possession or under the
control of the Administrators of Railtrack PLC.  As at the date
of this document, Railtrack Group has been provided with only
limited access to such information.  If further access is not
provided sufficiently in advance of the EGM on 18 October, it is
possible that the Directors may be unable to make the
declarations necessary to commence the Solvent Liquidation, in
which case the Company could not be placed into Solvent
Liquidation at the EGM on 18 October.  The Board believes that,
in these circumstances, it would be appropriate for the meeting
to be adjourned prior to consideration of the resolutions
regarding the Solvent Liquidation.

Whether or not certain of the resolutions, being to commence the
Solvent Liquidation, are considered at the EGM on 18 October
2002, the following resolutions will be proposed at the meeting:
(i) an ordinary resolution to reduce the minimum number of
directors of the Company from four to two; and (ii) a special
resolution to change the Company's name.

For the purposes of returning Forms of Proxy and deciding whether
to attend the meeting, Shareholders should assume that each of
the resolutions contained in the EGM notice will be put to a vote
on 18 October. If the EGM is adjourned, properly completed Forms
of Proxy will remain valid for the adjourned meeting and the
time, date and venue of the adjourned meeting will be advertised
in the national press and through the Company Announcements
Office of the London Stock
Exchange not less than 7 days prior to the date of the adjourned
meeting.

Conclusion and recommendation

Shareholders have voted overwhelmingly in favour of the Disposals
of Railtrack PLC and the Group's interests in the CTRL. The Board
now believes that it is appropriate to return cash to
Shareholders as soon as possible after Completion of the
Disposals and in a tax-efficient manner. The Board believes that
a Solvent Liquidation is the most appropriate route to achieve
this and is in the best interests of Shareholders as a whole.

The Directors also consider the proposed reduction in the minimum
number of directors and the proposed change of the Company's name
to be in the best interests of Shareholders as a whole.

Accordingly, the Directors will be unanimously recommending
Shareholders to vote in favour of each of the resolutions as they
intend to do in respect of their own beneficial holdings of
Railtrack Shares.

PART II

Definitions

The following definitions apply throughout this announcement,
unless the context requires otherwise:

'Administration Order'
means the order made on 7 October 2001 pursuant to the Railways
Act 1993 to appoint Michael David Rollings, William Scott Martin,
Christopher John Williamson Hill and Alan Robert Bloom as Joint
Special Railway Administrators of Railtrack PLC with immediate
effect;

'Annual General Meeting' or 'AGM' means the Annual General
Meeting of Railtrack Group to be convened for 11.30 a.m. on
Friday 18 October 2002;

'Articles of Association'means the articles of association of
Railtrack Group;

'Board' means the board of Railtrack Group;

'British Land'means The British Land Company Plc;

'Broadgate Development' means the 50 per cent. interest in
Broadgate Phase 12 Limited, the company undertaking the proposed
development of 201 Broadgate, London, previously owned by the
Group;

'Channel Tunnel' means the existing fixed link under the English
Channel between the southern portal at the Department of Pas-de
Calais in France and the northern portal in the County of Kent;

'Completion' means completion of the Disposals in accordance with
their terms;

'CTRL' means the Channel Tunnel Rail Link currently being
constructed in two sections, Section 1 and Section 2, between the
Channel Tunnel portal and St Pancras;

'CTRL Bank Facilities' means the GBP700 million bank facilities
made available to LCR by European Investment Bank and
Kreditanstalt fur Wiederaufbau and others for the purposes of
construction of Section 1 of the CTRL;

'CTRL Disposal' means the disposal of the entire issued share
capital of Railtrack UK to LCR;

'CTRL Financial Guarantees' means the guarantees given by
Railtrack Group in respect of the CTRL Bank Facilities;

'Directors' means the directors of Railtrack Group;

'Disposals' means the disposals by the Company of Railtrack PLC
and Railtrack UK;

'Disposal Agreements' means the agreements relating to the
Disposals;

'Extraordinary General Meeting' or 'EGM' means the extraordinary
general meeting of Railtrack Group to be convened for 11.35 a.m.
(or, if later, immediately after the conclusion or adjournment of
the Annual General Meeting) on Friday 18 October 2002;

'Form of Proxy' means the yellow form of proxy for voting on the
resolutions detailed in the notice of EGM given at the back of
this document;

'the Group' or 'the Railtrack Group' means Railtrack Group and
its subsidiary undertakings;

'High Court' means the High Court of England and Wales;

'HM Government' means the Secretary of State, the DTLR and other
organs of HM Government of the United Kingdom (as the context so
requires);

'LCR' means London & Continental Railways Limited;

'Liquidators' means the persons appointed to carry out the
Liquidation;

'Optionholders' means holders of options granted under the
Railtrack Share Savings Scheme and The Railtrack Group PLC 1999
Share Option Scheme;

'Proposed Liquidators' or 'Joint Liquidators' means James Robert
Drummond Smith and Nicholas James Dargan, both of Deloitte &
Touche, 180 Strand, London WC2R 1WL;

'Proposed Liquidation' means the proposed Solvent Liquidation;

'Railtrack Developments Limited' or 'RDL' means Railtrack
Developments Limited, company number 3699545, a wholly owned
subsidiary of Railtrack Group;

'Railtrack Group' or 'the Company' means Railtrack Group PLC;

'Railtrack PLC' means Railtrack PLC, company number 2904587;

'Railtrack PLC Disposal' means the disposal of the entire issued
share capital of Railtrack PLC to Network Rail;

'Railtrack (Spacia) Limited' means Railtrack (Spacia) Limited,
company number 3881191;

'Railtrack UK' means Railtrack (UK) Limited, company number
3578740;

'RTS' or 'Railtrack Telecom Services Limited' means Railtrack
Telecom Services Limited, company number 3963596, a wholly-owned
subsidiary of Railtrack Group;

'St Pancras' means St Pancras Station;

'Section 1' means that part of the CTRL between the Channel
Tunnel portal and Fawkham Junction, via Southfleet in the County
of Kent;

'Section 2' means that part of CTRL between Southfleet in the
County of Kent and London St Pancras;

'Shareholders' means holders of Railtrack Shares;

'Shares' or 'Railtrack Shares' means shares in Railtrack Group;
and

'Solvent Liquidation', 'Liquidation' or 'Members' Voluntary
Liquidation' means the solvent members' voluntary liquidation of
Railtrack Group.

Contact Information:

Geoffrey Howe, Chairman
David Harding, Chief Executive
Sue Clark, Director of Corporate Affairs
Railtrack Group
Tel: 020 7544 8435 / 07850 285471


SODEXHO UK: U.K. Troubles Drag Down Shares of Sodexho Alliance
--------------------------------------------------------------
The shares of French catering giant Sodexho Alliance lost nearly
one-third of its stock market value on reports of accounting
irregularities and management troubles of its UK operations,
Business Scottsman reports.

The announcement that the company will cut its year profit
forecast by up to 14% sent the shares down to six-year lows
according to the report.

Sodexho attacked its UK auditor, PricewaterhouseCoopers, for not
being "sufficiently vigilant."  The company has hired another
auditor to scrutinize its UK accounts, which is reported to have
problems relating to a ground maintenance subsidiary.

The French caterer had restructured its UK management in April
this year to solve accounting problems believed to involve
aggressive revenue recognition.   The operation is also plagued
by poorly performing catering contracts and significant losses in
a hotel management business.

The catering giant said difficulties in its UK operation as well
as difficult economic conditions would set back its long-term
corporate targets by a full year.

Sodexho expects to miss its goal of 2001/02 net profit after
goodwill writedowns of 210 million (o132 million), cutting the
target to 180-190 million.

According to deputy chairman Albert George, "accounting
corrections," restructuring costs, a loss-making hotel branch,
poor performance at 20 of its business contracts and the
replacement of obsolete IT equipment would eliminate 2001/2002
profits in Britain.

The company's British division competes against Compass for
catering contracts for businesses, schools and hospitals.

According to BusinessDay, provision for the U.K. accounting
anomaly was made in Sodexho's interim financial report with an
exceptional net charge of EUR22 million.


SODEXHO: Board Reports Provisional Accounts for Fiscal Year
-----------------------------------------------------------
The Board of Directors of Sodexho Alliance met on September 17
under the chairmanship of Pierre Bellon to examine the
provisional accounts for fiscal year 2001/2002, which ended
August 31, 2002, and to finalize budget objectives for fiscal
year 2002/2003.

Revenues increased by roughly 5% in fiscal year 2001/2002, with
organic growth of less than 2% and a negative exchange rate
effect of approximately 3%. We estimate that our EBITA margin
will be slightly more than 4%, instead of the previously
announced 4.7%. Despite savings in interest expense and the
booking of net exceptional income, the objective for Group net
income after amortization of goodwill will not be met. Based on
what we know today, Group net income should total between 180 and
190 million euros. The shortfall is caused to a certain extent by
the unfavorable exchange rate effect, but primarily by a rapid
deterioration of profitability in the United Kingdom.

Sodexho in the U.K. & Ireland

After becoming aware of the problems at Sodexho Land Technology,
our grounds maintenance subsidiary, we changed the Sodexho
management team in the U.K. in April 2002. In addition, we have
continued to examine the U.K.'s accounts and have called in an
independent expert to strengthen our analysis and internal audit
process.

Albert George, Directeur General Delegue, Sian Herbert-Jones,
Chief Financial Officer of Sodexho Alliance, and Mark Shipman,
the new Chief Executive of Sodexho in the U.K. and Ireland, have
been able to get a clear understanding of the situation very
quickly. We have found serious errors of management as well as
accounting anomalies. The impact of these management errors has
been more serious and sudden because they have occurred in a
difficult economic environment. In addition, our statutory
auditors in the U.K. have not been sufficiently vigilant.

At constant exchange rates, the situation is as follows:

                         Sodexho UK & Ireland

-----------------------------------------------------------------
-----
                          Actual          Provisional
Objective
                         2000/2001         2001/2002
2002/2003
-----------------------------------------------------------------
-----
Revenues                 EUR 1,732 m      EUR 1,664 m     EUR
1,640 m
    Total growth                           - 4%              - 1%
    Organic growth                         - 1%            + 2.5%
-----------------------------------------------------------------
-----
EBITA margin               5.9%                0
2.5%
-----------------------------------------------------------------
-----

"In cooperation with Mark Shipman and his team, I have finalized
a detailed action plan for the United Kingdom and the recovery is
underway," said Albert George, Directeur General Delegue.
"Returning to a satisfactory EBITA margin is our top priority for
the next two or three fiscal years. This will involve in-depth
programs to make our contracts more profitable, to train and
motivate our teams, to tighten onsite management of food and
personnel costs, and to reduce support functions overheads. As a
result, we forecast 2.5% organic growth in revenues for fiscal
2002/2003 and an EBITA margin of 2.5% in the United Kingdom."

In fiscal 2001/2002, the remaining businesses within the Group
reported strong performances in line with previously announced
objectives:

--  EBITA levels in the United States have been maintained
despite the recession.
--  A sharp increase in earnings from Food and Management
Services in France and from Service Vouchers and Cards worldwide.

A major reduction in start-up losses in new country markets,
which will drive our future growth.

Excluding the United Kingdom, we would have exceeded our
objectives:



                                      Provisional estimates
2001/2002

                                    Group             Excluding
the U.K.
-----------------------------------------------------------------
-----
Organic growth in revenues       Less than 2%                2.4%
-----------------------------------------------------------------
-----
EBITA margin                     Greater than 4%             4.6%
-----------------------------------------------------------------
-----

Fiscal year 2001/2002 in the United Kingdom will be seen as an
accident in Sodexho's development. It has set our long-term
objectives back by one year.

Despite continuing sluggishness in the global economy, we expect
consolidated revenues to grow by an organic 5-6% in fiscal year
2002/2003, roughly three times faster than in fiscal 2001/2002.
We are therefore gradually returning to the rate of organic
revenue growth enjoyed in earlier years. We have also set targets
of 4.7% for EBITA margin and of 210 million euros for Group net
income.

In the United States, the new fiscal year is off to a good start,
with important new contracts in Business and Industry, including
MetLife ($50 million a year), and the start-up of contracts with
the US Marine Corps ($87 million a year). We forecast organic
revenue growth of over 5% and a more than 10% increase in EBITA.

In France, we expect to see organic revenue growth of around 5%,
on a par with previous years, and an increase in EBITA of more
than 10%.

In Continental Europe, organic revenue growth is expected to
reach roughly 7%, thanks to steady growth in Italy and the
Netherlands and strong development in the Scandinavian countries.
EBITA should increase by more than 10%

Our Service Vouchers and Cards business will continue to enjoy
double-digit revenue growth and, as in the past, a more than 20%
increase in EBITA.

Pierre Bellon said: "Our medium-term outlook is good:

--  The potential for growth in food services, multi-services,
and service vouchers and cards is considerable, totaling roughly
380 billion euros. Already for fiscal 2002/2003, our organic
revenue growth target is 5 to 6%, even with forecast growth of
2.5% in the United Kingdom.
--  With operations in 74 countries, our extensive global network
enables us to serve clients wherever they are located around the
world. In addition, we enjoy highly favorable procurement terms
with our suppliers, who are themselves multinational companies.
--  Our business model is excellent. It generates cash that
enables us to finance our growth and to ensure shareholders of
regular dividend increases.

Because of these three strengths, we are very confident in
Sodexho's future."

A conference call will be held on Thursday, September 19 from
8:30 a.m. to 10:00 a.m. Paris time to answer questions concerning
the information in this press release. To connect to the
conference call, dial + 33 1 72 28 08 88.

About Sodexho Alliance

Founded in Marseille in 1966 by Chairman and Chief Executive
Officer Pierre Bellon, Sodexho Alliance is the world's leading
provider of food and management services. With more than 314,000
employees on 24,300 sites in 72 countries, Sodexho Alliance
reported consolidated sales of 11.9 billion euros for the fiscal
year that ended on August 31, 2001. The Sodexho Alliance share
has been listed since 1983 on the Euronext Paris Bourse, where
its market value totals 5.5 billion euros. The Sodexho Alliance
share has been listed since April 3, 2002, on the New York Stock
Exchange.

CONTACT:  SODEXHO
          Sian Herbert-Jones
          Phone: + 33 (1) 30 85 76 54
          (Investors Relations)
          Fax: + 33 (1) 30 85 50 88
          E-mail: Sian.HERBERT-JONES@sodexhoalliance.com


WORLDCOM INC: C&W Seeks Stay to Pursue JAMS Arbitration
-------------------------------------------------------
Emily A. Miller, Esq., at Hogan & Hartson LLP, in Washington
D.C., relates that prior to the Petition Date, Cable & Wireless
Internet Holdings Inc., Cable and Wireless PLC, MCI
Communications Corporation, and WorldCom Inc., entered into a
Stock Purchase Agreement on September 3, 1998.  The Agreement
provided for the sale of MCI's Internet business to C&W for
US$1,750,000,000, subject to post-closing adjustments.  Through
the Agreement, the parties intended that C&W would acquire a
viable Internet business.

On February 29, 2000, Ms. Miller recounts that the parties
entered into a settlement agreement resolving various disputes
relating to the sale of the MCI Internet business.  As part of
that settlement agreement, the Purchase Agreement was amended to
provide that by March 15, 2000, MCI would provide C&W a circuit
list reflecting all BIPP, backhaul, local access, IDC, DSAM, and
CBL circuits as of February 23, 2000.  MCI provides and maintains
wholesale services for the WorldCom group of entities.
MCI is responsible for managing the Agreement with C&W.  MCI has
provided service to C&W under the Agreement since the closing
date.

Ms. Miller admits that certain disputes relating to the provision
of service under the Agreement arose between the parties.
Specifically, C&W has disputed various invoices from MCI for
service dating back to February 2001.  The disputes involve MCI's
failure to credit C&W for disconnected circuits and MCI's
crediting C&W incorrect amounts.  The total amount C&W has been
overcharged for International Private Line for International
Direct Connect Service circuits is US$8,500,000.

MCI also provides Dial-Up Transport Service to C&W and has
improperly billed C&W for these services.  These errors include
billing for circuits that were not part of the agreed upon
settlement inventory; billing for disconnected circuits; and
errors stemming from changes in billing methodology.  The total
amount of charges in dispute is US$5,900,000.

Consistent with Section 5(c) of the Agreement, after a
contractually required negotiation period, C&W initiated a JAMS
arbitration proceeding against MCI on December 28, 2001 by making
an arbitration demand.  MCI served a response, together with
counterclaims, on January 24, 2002.  At the time MCI filed its
Chapter 11 petition, these events had already occurred in the
JAMS Arbitration Proceeding:

-- All written discovery was completed;

-- Expert analysis was completed;

-- Several evidentiary motions were prepared and filed, and are
    currently pending before the JAMS arbitrator; and

-- The arbitration hearing was conducted over a 5-day period on
    May 13-15 and May 29-30, 2002.  The arbitrator heard 10 to 12
    hours of testimony each day.  The evidentiary hearing was
    closed, and a post-hearing briefing schedule was set.

The post-hearing briefing schedule include:

-- Exchange of initial briefs on August 5, 2002; and

-- Exchange of reply briefs on August 26, 2002.

The arbitrator planned to conduct a conference call with counsel
the first week of September to decide whether to hold oral
argument.  The arbitrator planned to rule on the JAMS Arbitration
Proceeding in September 2002.

By this motion, C&W seeks relief from the automatic stay to
continue with the JAMS Arbitration Proceeding.

The most relevant factors that weigh in favor of allowing the
JAMS Arbitration Proceeding to proceed are:

-- the arbitration would result in a complete resolution of the
    issues;

-- the arbitration would not interfere with the bankruptcy case;

-- the interests of judicial economy would be served as the JAMS
    Arbitration Proceeding is almost complete;

-- the arbitration hearing has already concluded; and

-- the stay would have a harmful impact on the parties, as the
    JAMS Arbitration Proceeding is all but complete.

Ms. Miller contends that both MCI and C&W will benefit from the
modification of the stay to permit JAMS Arbitration Proceeding
to continue.  The parties have expended significant time and
money in discovery and in the arbitration hearing.  "It would be
an unnecessary and counter-productive use of money and resources
to duplicate the JAMS Arbitration Proceeding in this Court," Ms.
Miller says. (Worldcom Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., 609/392-0900)

Worldcom Inc.'s 11.25% bonds due 2007 (WCOM07USR4), DebtTraders
reports, are trading at 23 cents-on-the-dollar. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USR4
for real-time bond pricing.

                                    ************

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

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published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso, Ma. Cristina Canson and Jean Claire Dy, Editors.

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

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