/raid1/www/Hosts/bankrupt/TCREUR_Public/030324.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, March 24, 2003, Vol. 4, No. 58


                              Headlines

* F R A N C E *

AIR LIB: Virgin Express Confirms Intention to Offer Bid
VIVENDI UNIVERSAL: Stake in Maroc Telcom Up for Grabs

* G E R M A N Y *

ALLIANZ GROUP: Closes Financial Year With EUR1.2 Billion Loss
ALLIANZ GROUP: Announces Measures to Strengthen Capital Base
ALLIANZ AG: Ratings Lowered to 'AA-', Outlook Negative
DRESDNER BANK: Long-Term Ratings Lowered, Outlook Negative
EUROBIKE AG: Posts Group Net Loss of EUR 1,339k in Report
KIRCHMEDIA GMBH: Wyser Exhorts Saban to Adhere to German Laws
MOBILCOM AG: Market Capitalization Fell Further by EUR374.5 MM
MOBILCOM AG: Board Approves Annual Financial Statement
MOBILCOM AG: Sale of Fixed Line Activities to Freenet Approved

* I T A L Y *

FIAT SPA: Snecma's Acquisition of Fiat Avio to Face Glitch

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

GETRONICS N.V.: Group of Shareholders Requests Investigation
GETRONICS N.V.: Appoints Schisano Chairman of Getronics Italy
KLM ROYAL: Suspends Services to Certain Destinations
KONINKLIJKE AHOLD: Watchdog Suspends Inquiry Into Auditor
KONINKLIJKE AHOLD: Supplier Contracts Have Negligible Changes

* S W I T Z E R L A N D *

CENTERPULSE LTD.: Plans to Combine With Smith & Nephew
CENTERPULSE LTD.: Ratings on Watch Positive After Take Over Deal
CREDIT SUISSE: SWX Decides to Halt Preliminary Enquiries
ZURICH FINANCIAL: Informs Public of Exit From Baltic Countries

* U N I T E D   K I N G D O M *

AMP LTD.: Investors Warned to Decline Unsolicited Offers
AVIONIC SERVICES: Posts GBP1.05 Million Loss for 2002
CORUS GROUP: Bondholders and Unions React to Dutch Decision
CORUS GROUP: British Unions to Lobby for Chairman's Resignation
L.GARDNER: Bankers Appoint Administrative Receivers
GLAXOSMITHKLINE PLC: Appoints Russell Greig as President
LONDON PACIFIC: Reports Consolidated Net Loss of US$205.5 MM
MYTRAVEL GROUP: Issues Annual General Meeting Statement
ROYAL MAIL: Agrees to Revised Proposal of Mail Regulator
SRS TECHNOLOGY: Increases Losses to GBP776,000, to Raise Funds
ZYZYGY PLC: Resumes Trading Following Nomination of Adviser


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


AIR LIB: Virgin Express Confirms Intention to Offer Bid
-------------------------------------------------------
Virgin Express has confirmed that it is bidding together with
French shipping company CMA-CGM for the assets of failed French
carrier Air Lib.

The airline said it had filed its offer with the French receiver
on Tuesday, but declined to comment on the details of the bid.

The Brussels-based low-case airline will compete with strong
European rivals, including EasyJet of the UK, Aeris of France and
domestic market leader, Air France.

It will have to thwart the bid of Toulouse-based low-cost
operator Aeris, which promised to add an extra 10 flights a day
between Paris and Toulouse, four more domestic routes and two to
Italy, and hire 3,200 Air Lib employees.  Aeris is interested in
taking over half of Air Lib's 44,000 take-off and landing slots
at Orly airport in Paris.

Aeris prided itself with a unique proposal that is "in line with
the government proposition to link the attribution of slots to
the employment of staff".

Air Lib, which flew to the French Antilles, Algeria, Cuba and a
number of European and French destinations, was forced to ground
its fleet earlier this month after loosing its operating license.

Founded in 2001 out of the ashes of Swissair's insolvent French
operations, Air Lib struggled to stay afloat after the government
made clear it would no longer subsidize the debt-laden company.

CONTACT:  AIR LIB
          42 Rue F. Forest
          Imm. Le Sommet
          97122 Jarry-Baie Mahault
          Phone: +590-(0)5.90.32.56.00
          Fax: +590-(0)5.90.26.64.02
          Home Page: http://www.air-liberte.fr/


VIVENDI UNIVERSAL: Stake in Maroc Telcom Up for Grabs
-----------------------------------------------------
Vivendi Universal will sell its stake in Maroc Telecom, contrary
to earlier reports by daily Le Figaro that the French company
plans to hold on to the holdings.

The media giant has hired Credit Agricole to find a buyer for its
35% stake, which has an estimated value of EUR1.6 billion (US$1.7
billion).

The group, which is currently pursuing an asset disposal program,
also made notice of an initial sale of its US entertainment
assets, including Universal Studios, theme parks and cable TV
channels.

The decision to unload the stake in Maroc is aimed at avoiding
tax payments and other liabilities associated with the sale of
entertainment assets, according to one person familiar with the
situation.

"This is why Maroc Telecom is now on the block and they are only
now seeking preliminary expressions of interest in VUE," the
source said.

People close to the company believed that the planned sales,
together with new credit facilities--expected to be around EUR3.5
billion to EUR 4 billion--will help the company avoid a short-
term credit crunch.

This is despite general liquidity fears and continued uncertainty
following the departure of Barry Diller, chairman and chief
executive of Vivendi Universal Entertainment.


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


ALLIANZ GROUP: Closes Financial Year With EUR1.2 Billion Loss
-------------------------------------------------------------
Operative improvements insufficient to achieve a positive result
- Almost 10 percent premium growth
- 1.2 billion euro loss

Weak capital markets, natural catastrophes, the increase in
reserves for asbestos claims in the USA and earnings problems at
Dresdner Bank have led the Allianz Group to close the fiscal year
2002 with a loss. Significant improvements in operating insurance
business - a strong rise in premium income and a consistent
reduction in the combined ratio - were unable to compensate for
the loss. During the course of 2003, the Allianz Group will
continue to focus rigorously on its core businesses, extend its
independence from capital markets and concentrate on developing
organic growth and a stable capital structure.

Despite sustained and significant improvements in operating
insurance business during the fiscal year 2002, the Allianz Group
recorded a loss amounting to nearly 1.2 billion euros. The
negative factors exerting an influence included income problems
at Dresdner Bank, partly a result of the extraordinarily
difficult economic and capital-market environment. Difficulties
were compounded by write-downs on investments amounting to 5.5
billion euros as a result of conditions on the stock markets.
"The fiscal year 2002 was a bad year for us, but by no means a
wasted year: in recent months we have succeeded in making some
decisive moves for increasing the value of the company,"
commented Dr. Henning Schulte-Noelle, Chairman of the Board of
Management.

The chain of negative influences is offset by improvements,
particularly in the operating insurance business. Total premium
income for insurance business rose by 9.9 percent to 82.6 billion
euros. The combined ratio in property and casualty insurance
business was reduced to 101.7 percent - adjusted by the special
factors of the flooding catastrophe and provision for asbestos
claims. Administrative expenses of Dresdner Bank were reduced by
12.3 percent. "We will continue what we started in 2002 and we
will bring our strategy to a consistent conclusion. We have the
right strategy and we intend to focus fully on implementing our
corporate decisions," explained Member of the Board of Management
Michael Diekmann, the designated successor to Schulte-Noelle.

Balance sheet figures for the fiscal year 2002

Gross premium income for insurance business at Allianz increased
by 9.9 percent in the fiscal year 2002 by comparison with 2001,
rising from 75.1 to 82.6 billion euros. This figure amounted to
more than double the growth of 4 percent that was originally
planned. The growth spurt mainly originated from life insurance
business. "Particularly in uncertain times, customers are seeking
refuge in companies with a strong financial base - and for many
people that continues to mean Allianz," commented Schulte-Noelle.

Nevertheless Allianz reported a loss amounting to nearly 1.2
billion euros. The loss was due to the exceptionally difficult
economic environment and the situation in the capital market.
Write-downs on investments over the year amounted to 5.5 billion
euros. A series of severe natural catastrophes - including the
flood of the century in Central and Eastern Europe - impacted on
earnings. The result was further affected by increasing the
reserve for asbestosis and environmental liability claims at US
Group member Fireman's Fund Insurance Company and raising loan
loss provisions in the banking segment.

The Board of Management proposes to the Annual General Meeting to
pay a dividend of 1,50 euros, the same amount as distributed in
the previous year.

In property and casualty insurance, premium income rose by 2.7
percent from 42.1 to 43.3 billion euros. This development was
primarily due to rate increases. At the same time the Allianz
Group withdrew from unprofitable customer segments and partly
refrained from renewing contracts, particularly in the area of
international industrial insurance business and in business
contacts in the USA.

The loss ratio fell from 81.1 to 78.2 percent. Adjusted by 4
percentage points for the special factors arising from the
flooding catastrophe in Central and Eastern Europe and the
reserve for asbestosis and environmental liability risks in the
USA, the loss ratio is 74.2 percent. The expense ratio improved
slightly to 27.5 percent. Net income for the year grew to 3.4
billion euros in the segment, adjusted by internal Group
transactions. The combined ratio - i.e. the ratio of claims
expenses and costs to premiums earned - fell by 3.1 percentage
points to 105.7 percent and came out at 101.7 percent following
adjustment for the special factors referred to above.

Total sales in life and health insurance increased by 18.9
percent from 33.7 to 40.1 billion euros. Despite poor sentiment
in the capital markets, an increase of 43.3 percent to 19.4
billion euros was achieved for investment-oriented products -
primarily variable annuity insurance.

Allianz Lebensversicherung achieved a record result in Germany
with a 30 percent growth in premium income for new contracts,
significantly outperforming the market. Its market share in new
business rose by 3.2 percentage points to 18.3 percent. A
significant increase was also reported in the USA: U.S. Group
company Allianz Life of North America achieved growth in premium
income of 91.3 percent to 9.5 billion euros.

The expense ratio improved overall from 12.1 to 10.0 percent.
Weak capital markets reduced earnings on investments by 1.1 to
7.4 billion euros. Earnings before taxes and amortization of
goodwill fell back from 558 to 83 million euros and net income
fell from 229 to 19 million euros.

Banking business trailed significantly behind expectations in a
year of exceptionally unfavorable market and economic
developments.

The segment concluded the 2002 fiscal year with a loss of 1.4
billion euros. The first fiscal year in which Dresdner Bank was
fully consolidated saw net interest income amounting to 3.8
billion euros, with net commission income totaling 2.7 billion
euros. Loan loss provisions were increased to 2.2 billion euros,
primarily to guard against the number of insolvencies in
corporate customer business, the anticipated defaults in Latin
America, and provisions against bad debt in credit business with
private customers. Calculated on a comparable basis,
administrative expenses at Dresdner Bank were reduced by 12.3
percent to 7.3 billion euros and risk assets were reduced
significantly from 189.8 to 142.7 billion euros. "This has taken
us forward in two key areas in the turnaround program at Dresdner
Bank," said Dr. Helmut Perlet, member of the Board of Management.
"As far as the current year is concerned, we are planning a
further significant reduction in administrative expenses to 6.2
billion euros. We will continue to make significant progress in
reducing risk assets by recovering and winding-up non-strategic
and unprofitable loans in the Institutional Restructuring Unit."

Asset management at the Allianz Group is being operated under the
roof of Allianz Dresdner Asset Management (ADAM). The year-end
figure for assets under management was 989 billion euros, of
which 561 billion euros, i.e. around 57 percent, were managed for
third parties. Net cash inflows of 43 billion euros in this area
contrast with exchange-rate losses and the loss in value of the
U.S. dollar, so that funds invested for third parties fell by 59
billion euros. Around 70 percent of ADAM customers come from the
USA and around 19 percent from Germany. Although the operating
result in the asset management segment went up from 313 to 495
million euros, an expected loss of 405 million euros resulted
after deduction of expenses related to acquisitions, taxes and
minority interests.

Net cash inflows of 56 billion euros for business with bond funds
achieved a high level of growth. The PIMCO Total Return Fund
increased investment volume to 68 billion US dollars by the close
of the year, making it the biggest investment fund in the world.
PIMCO's European counterpart also took up a strong position with
the dit Euro Bond Total Return Fund "powered by PIMCO": cash
inflows in excess of 1.5 billion euros recorded in the period
between the start of sales in May to the close of 2002 made it
one of the best sold mutual funds in Germany. A strong growth
market for fund providers in China provided an opportunity for
joint venture Guotai Junan Allianz Fund Management to be the
first fund manager with a foreign holding to obtain a license to
carry out business.

The number of employees in the Allianz Group rose slightly by
1,705 to 181,651 worldwide as of December 31, 2002. This growth
was primarily due to sales expansion in Germany and first-time
consolidations.

Outlook for the 2003 fiscal year

As far as the current 2003 fiscal year is concerned, Allianz is
anticipating significant improvements in earnings from operating
business. A further reduction in the combined ratio for insurance
business and in the cost income ratio in asset management are
planned, as is ongoing implementation of the "Turnaround 2003"
Program at Dresdner Bank. However, if the uncertainties in the
financial markets continue and the economy fails to recover
significantly, write-downs on investment and loan loss provisions
will continue to exert a strong negative influence.

CONTACT:  ALLIANZ GROUP
          Investor Relations
          Phone: +49.1802.2554269


ALLIANZ GROUP: Announces Measures to Strengthen Capital Base
------------------------------------------------------------
The board of management of Allianz has announced its decision to
launch a capital increase in order to enhance the capital base of
the Group. In addition, the Company intends to issue hybrid
capital in the form of a subordinated bond. Allianz has decided
to secure its capital base, which is already strong by
international standards, in order to capitalize on the Group's
competitive advantages and growth opportunities. "We want to
improve our ability to compete from a position of strength. Our
success with clients is based on our financial strength, among
other factors, because this strength conveys security and
solidity. The record growth in new business of Allianz Leben last
year clearly demonstrates this. We intend to achieve further
profitable growth on the basis of this strengthened capital base
and to do so organically", said Henning Schulte-Noelle, Chief
Executive Officer of Allianz.

This set of capital measures is intended to raise a total volume
of up to 5 billion Euros. The rights offering is expected to
amount to 3.5 to 4 billion Euros. In light of the geopolitical
environment, the offering will be launched very shortly. The
details of the transaction will be announced shortly before the
commencement of the rights trading and the final terms will
depend on market conditions at that time. In a second step - also
planned for this year - Allianz will issue hybrid capital of
approximately 1.5 billion Euros. The proposed capital measures
secure the sufficient capital base of the Group and create the
necessary flexibility to take advantage of future growth
opportunities. After the capital raising, Allianz expects to have
a credit rating within the AA/Aa band.

Allianz has appointed an international bank syndicate which has
agreed to fully underwrite a rights issue of approximately 3.5
billion Euros, subject to customary terms and conditions, at a
subscription price of at least 30 Euros per share.

In addition to the proposed capital measures, the stake in Munich
Re will be reduced to about 15 percent. In the course of this
year, the MILES securities - issued in 2000 - will be partly
repaid in Munich Re shares which will contribute to reducing
Allianz' stake in Munich Re to between 16 and 18 percent. Munich
Re will partially participate in the planned rights issue of
Allianz and thereby reduce its stake in Allianz to about 15
percent. The existing long-term partnership of the two groups
will continue on this basis. "We will each be less dependent on
the respective earnings development of the other group. This will
reduce the volatility of each of the shares in the interest of
our shareholders. This will not change the strategic importance
of the relationship between the groups" explained Michael
Diekmann, the designated successor of Henning Schulte-Noelle.


ALLIANZ AG: Ratings Lowered to 'AA-', Outlook Negative
------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
insurer financial strength and counterparty credit ratings on
Munich-based Allianz AG (AZAG) and  various core operating
entities to 'AA-' from 'AA' based on the Allianz group's
(Allianz) disappointing earnings performance, weakened
capitalization and financial flexibility. The outlook is
negative.

As a consequence of the downgrade on AZAG, Standard & Poor's
lowered to 'A+' the ratings on all AZAG's strategically important
subsidiaries, which were previously rated 'AA-' (see ratings list
below). The outlook on these subsidiaries is negative, with the
exception of the Euler Hermes group, the outlooks on which were
revised to stable from negative (see separate media release
entitled "Long-Term and Financial Strength Ratings on Euler
Hermes Group Entities Cut to 'A+'; Outlook Stable", published on
March 20, 2003, on RatingsDirect, Standard & Poor's Web-based
credit analysis system).

At the same time, Standard & Poor's affirmed its 'A-1+' short-
term ratings on AZAG and its core operating subsidiaries (see
also separate media release on entitled "Dresdner Bank Long-Term
Ratings Lowered to 'A'; 'A-1' Short-term Ratings Affirmed;
Outlook Neg", published on March 20, 2003, on RatingsDirect on
RatingsDirect).

"Allianz's operating performance, although historically very
strong, has deteriorated significantly over the past two years,"
said Standard & Poor's credit analyst Wolfgang Rief. Earnings
performance in 2002 was poor, with the group posting a bottom-
line loss of EUR1.2 billion, weighed down by operating losses at
Dresdner Bank AG of EUR2.0 billion; significant reserve
strengthening at the U.S.-based Fireman's Fund group of EUR762
million; claims arising from floods in Central Europe amounting
to EUR710 million; and poor earnings in its industrial risk
division, Allianz Global Risks, and at its France-based
property/casualty operation, AGF - Assurances Generales de France
Incendie Accidents Reassurances Transport.

The net effect of impairments on investments available for sale
alone was a substantial EUR2.7 billion. Results at the group's
sizable life and health insurance operations were also
disappointing, having fallen to a meager EUR83 million for 2002,
compared with EUR306 million at the end of the third quarter of
2003 and EUR558 million for 2001.

"Although better results are expected for 2003, Standard & Poor's
believes that if the current challenging operating environment
persists, it is likely that the group will take longer than
originally expected to bring profitability in line with the
previous rating level, thereby also delaying the group's progress
in rebuilding its capital base through retained earnings," said
Mr. Rief.

Capitalization at Allianz's insurance operations is still
satisfactory but has weakened substantially and is no longer the
strength that it had been historically. The acquisition of
Dresdner Bank, combined with the collapse of the equity markets
and high claims experience in 2001 and 2002, have diluted
Allianz's capital base.

Shareholders' equity fell to EUR21.8 billion at year-end 2002
from EUR31.7 billion in 2001. "Standard & Poor's acknowledges
that management is now determined to restore the group's
capitalization by a series of measures--including a capital
increase, the divestment of certain equity holdings, and the re-
allocation of its capital by business lines--to bring
capitalization back to a level that is supportive of a 'AA' range
rating," said Mr. Rief.

Although the group's financial flexibility--the ability to source
capital relative to capital requirements--has recently decreased
in line with that of the insurance industry as a whole, Standard
& Poor's believes that Allianz retains some substantial internal
resources that management is expected to use extensively over the
next few months to rebuild capital.

Allianz continues to demonstrate a superior business position in
the premier league of international financial services groups.
Although Allianz continues to write specialty lines such as
credit insurance, industrial business, and marine and aviation
business, the group's focus is now deemed to be in retail
financial services, including services through Dresdner Bank's
branches in Germany. Therefore, the ratings on Dresdner Bank,
also lowered on March 20, 2003, continue to benefit from the
bank's ownership by Allianz and its strategic importance to the
group.

In addition, the rating action reflects Dresdner Bank's financial
profile, which weakened further in 2002 despite considerable cost
reductions and has led to shrinking revenues, a strong rise in
loan-loss provisions, and persisting operating losses.

"The negative outlook reflects the magnitude of the challenges
that the management at Allianz/Dresdner has to face over the next
few months to secure full operational control over its empire to
restore operating performance and, subsequently, its
capitalization through retained earnings in an adverse economic
and financial environment," said Mr. Rief.

Specifically, Standard & Poor's expects key operating performance
indicators to rebound significantly in 2003, with a combined
ratio of less than 100% and improved underlying operating
profitability.

Capitalization should be managed in the low 'AA' range over the
next 12-18 months through a mix of long-term funding,
divestments, and capital re-allocation. Standard & Poor's views
the determination of management and its operational skills as a
key element in meeting these targets.

RATINGS LIST

                   To                 From
Allianz AG
Counterparty credit rating
                   AA-/Negative/A-1+  AA/Negative/A-1+
Insurer financial strength rating
                   AA-                AA
Commercial paper
                   A-1+               A-1+

AGF - Assurances Generales de France
Counterparty credit rating
                   A+/Negative/A-1    AA-/Negative/A-1+
Junior subordinated debt
                   A-                 A

AGF - Assurances Generales de France Incendie Accidents
Reassurances
Transport
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Marine & Aviation (France) S.A. - Formerly AGF -
Assurance
Generale France Marine Aviation Transport (AGF-MAT)
Counterparty credit rating
                   A+/Negative/--    A+/Stable/--
Insurer financial strength rating
                   A+                A+

Allianz Marine & Aviation Versicherungs AG
Counterparty credit rating
                   A+/Negative/--    A+/Stable/--
Insurer financial strength rating
                   A+                A+

AGF - Assurances Generales de France Vie
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Cornhill Insurance PLC
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

Allianz Elementar Lebensversicherungs AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Elementar Versicherungs - AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Ins. Co. Of Canada
Counterparty credit rating
                   A+/Negative/--    A+/Stable/--
Insurer financial strength rating
                   A+                A+

Allianz Lebensversicherungs AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Suisse Versicherungs - Gesellschaft
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Financial strength rating
                   A+                AA-

Allianz Suisse Lebensversicherungs - Gesellschaft
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Financial strength rating
                   A+                AA-

Allianz Versicherungs AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Insurance Co.
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Allianz Life Insurance Co. of North America
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Preferred Life Insurance Co. of NY
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

American Automobile Insurance Co./American Insurance
Co./Associated
Indemnity Corp./Fireman's Fund Insurance Co./Chicago Insurance
Co./Fireman's Fund Indemnity Corp./Interstate Fire & Casualty
Co./Interstate Indemnity Co./Jefferson Insurance Co. of NY/Midway
Insurance Co. of IL/Monticello Insurance Co./Fireman's Fund
Insurance Co. of Ohio/Fireman's Fund Insurance Co. of
Wisconsin/National Surety Corp./Counterparty credit rating
                   A+/Negative/--    A+/Stable/--
Insurer financial strength rating
                   A+                A+

Allianz Underwriters Insurance Co.
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Bayerische Versicherungsbank AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Dresdner Bank AG
Counterparty credit rating
                   A/Negative/A-1    A+/Negative/A-1
Senior unsecured debt
                   A                 A+
Senior subordinated debt
                   A-                A
Certificate of deposit
                   A/A-1             A+/A-1
Commercial paper
                   A-1               A-1
Dresdner Finance B.V.
Senior unsecured debt*
                   A                 A+

Dresdner Capital LLC I/Dresdner Capital LLC II/Dresdner Capital
LLC
III/Dresdner Capital LLC IV/Dresdner Funding Trust I/Dresdner
Funding
Trust II/Dresdner Funding Trust III/Dresdner Funding Trust IV
Junior subordinated debt
                   BBB+              A-

EULER-SFAC
Counterparty credit rating
                   A+/Stable/--      AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

EULER American Credit Indemnity Co.
Counterparty credit rating
                   A+/Stable/--      AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

EULER SIAC SpA
Counterparty credit rating
                   A+/Stable/--      AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

EULER Trade Indemnity PLC
Counterparty credit rating
                   NR/--/--          AA-/Negative/--
Insurer financial strength rating**
                   A+                AA-

EULER-COBAC Belgium S.A.
Counterparty credit rating
                   A+/Stable/--      AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

EULER-COBAC Nederland N.V.
Insurer financial strength rating***
                   A+                AA-

Hermes Kreditversicherungs-AG
Counterparty credit rating
                   A+/Stable/A-1     AA-/Negative/A-1+
Insurer financial strength rating
                   A+                AA-

Frankfurter Vers. AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Lloyd Adriatico SpA
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

London Verzekeringen N.V.
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

R.A.S. Riunione Adriatica di Sicurta SpA
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

Royal Nederland Levensverzekering N.V.
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

Royal Nederland Schadeverzekering N.V.
Counterparty credit rating
                   A+/Negative/--    AA-/Negative/--
Insurer financial strength rating
                   A+                AA-

Trafalgar Insurance Co. of Canada
Counterparty credit rating
                   A+/Negative/--    A+/Stable/--
Insurer financial strength rating
                   A+                A+

Vereinte Krankenversicherung AG
Counterparty credit rating
                   AA-/Negative/--   AA/Negative/--
Insurer financial strength rating
                   AA-               AA

*Guaranteed by Dresdner Bank AG.
**Obligations guaranteed by EULER-SFAC
***Obligations guaranteed by EULER-COBAC Belgium S.A.


DRESDNER BANK: Long-Term Ratings Lowered, Outlook Negative
----------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit and senior unsecured debt ratings on Dresdner
Bank AG and related entities to  'A' from 'A+'. At the same time,
the 'A-1' short-term counterparty credit and commercial paper
ratings were affirmed. The outlook is negative.

The rating actions follow the release of Dresdner Bank's full-
year 2002 results, and those of its parent Allianz AG (Allianz).
The rating actions are also in response to today's downgrade of
Allianz to 'AA-' from 'AA'.

The outlook on Allianz is negative (see separate media release
entitled  "Allianz AG and Core Subsidiaries Ratings Lowered to
'AA-'; Outlook Negative", published on March 20, 2003, on
RatingsDirect, Standard & Poor's Web-based credit analysis
system).

"The rating actions reflect Dresdner Bank's further weakened
financial profile, which, in 2002, led to shrinking revenues, a
strong rise in loan-loss provisions (LLPs), and persisting
operating losses," said Michael Zlotnik, managing director at
Standard & Poor's Financial Services Group in Frankfurt. "In
addition, Dresdner Bank's financial flexibility has been
significantly reduced following the realization of substantial
gains from financial investments and the decline in equity
markets," added Mr. Zlotnik. Furthermore, in light of the
continuing difficult economic and operating environment, Standard
& Poor's believes that the bank's initial target to achieve a
break-even result in 2003 can no longer be achieved. Although
Standard & Poor's now expects a more determined and further
intensified restructuring and integration of Dresdner Bank, exact
details have yet to be announced.

The ratings on Dresdner Bank, however, continue to be supported
by Standard & Poor's view of the bank as a strategically
important subsidiary for Allianz--notably because of Dresdner
Bank's domestic distribution channels and retail customer base of
about 6.5 million customers, and the expected stronger
integration within the enlarged Allianz group. At the same time,
uncertainties remain regarding the strategic importance and
long-term future of--at least sizable parts of--Dresdner Bank's
Corporate Markets division (C&M), which houses the bank's
corporate and investment banking activities, and which has
suffered badly from the weak capital markets and high LLPs in
Dresdner Bank's domestic and international corporate loan books.

"Dresdner Bank's current stand-alone profile is very weak, even
compared with other German banks," said Mr. Zlotnik. Regardless
of the early success of several cost-cutting initiatives,
Dresdner Bank posted a net loss of EUR935 million in 2002,
despite net gains of EUR2.8 billion from the sale of financial
investments, including the transfer of most of Dresdner Bank's
asset management operations to Allianz.
Standard & Poor's will closely monitor the further integration
and restructuring process of Dresdner Bank and any respective
strategic shift under the designated new CEO of Allianz.

The negative outlook reflects uncertainties regarding what
additional strategic measures Allianz and Dresdner Bank will take
to stabilize and restore the bank's weak stand-alone profile;
and, how quickly, and how successfully such measures will be
implemented. The negative outlook also reflects uncertainties
concerning the effect of the qroups' stronger focus on retail
banking and in turn on Dresdner Bank's corporate and investment
banking activities. In this context, Standard & Poor's will
closely monitor the implications of a potential spin-off of
certain activities of Dresdner Bank into separate legal entities
on debt rated by Standard & Poor's.


EUROBIKE AG: Posts Group Net Loss of EUR 1,339k in Report
---------------------------------------------------------
Sales increase at EUROBIKE in the past year and positive results
achieved

EUROBIKE Aktiengesellschaft has published its annual financial
statements for the year ending September 30, 2002. Despite the
difficult economic climate and the reduction of its domestic
wholesale activities, the company managed to achieve a marginal
increase in its sales up to EUR 277,043k during the 2001/2002
fiscal year (previous year EUR 276,021k). In view of the markedly
weak market conditions, the retail business reported a 2% drop in
sales down to EUR 195,278k.

The domestic wholesale activities fell according to plan by 75%
down to EUR 6,883k (previous year: EUR 26,358k). Intersport
Fashions West, Inc., the Group's American subsidiary, achieved
sales growth of 50% up to EUR 72,882k as a result of the one-off
sales attributable to the 100th anniversary of Harley-Davidson,
thus making a pleasing contribution to the Group's consolidated
sales (previous year EUR 49,825k). Permanent improvements were
made to the earnings structure of EUROBIKE Aktiengesellschaft by
optimizing the core retail businesses and the activities in the
USA, reducing personnel expenses and adhering to strict cost
management. The continuation of restructuring measures initiated
two years ago led to unavoidable one-off expenses. Prior to these
restructuring expenses and the amortization of goodwill, EUROBIKE
Aktiengesellschaft reported a positive result of EUR 16,228k
(previous year: EUR 2,134k). Operating earnings improved
to EUR 8,529k (previous year: EUR -50,721k). Excluding minority
shareholders, the Group net loss for the year was reported at EUR
-1,339k (previous year:EUR - 67,696k). The number of employees
fell to 398 (previous year: 530), with the wholesale division
seeing 89 job cuts.

Given the difficult economic climate and the progress made in
reorganizing the Group, the Executive Board of EUROBIKE AG is
satisfied with the course of business. Due to the normalization
of business at Intersport Fashions West, Inc., the tense economic
situation and the ongoing reduction of the Group's domestic
wholesale activities, the Executive Board expects sales to
decline in the current 2002/2003 fiscal year.

The primary aim of the Group in the current fiscal year is to
make permanent improvements to its equity structure and reduce
its credit liabilities. The successful execution of the capital
increase in the first quarter of 2002/2003 constituted an
important initial step in this direction.


KIRCHMEDIA GMBH: Wyser Exhorts Saban to Adhere to German Laws
-------------------------------------------------------------
Wyser-Pratte sent the following letter to Haim Saban Thursday.

Mr. Haim Saban
Saban Capital Group
10100 Santa Monica Boulevard
Suite 2600
Los Angeles, CA 90067

Dear Mr. Saban,

As a substantial holder of ProSiebenSat.1 Media's (ProSieben)
preferred shares - the only listed shares - I was gratified to
learn of your having entered into a definitive agreement to
purchase 72% of the voting rights of ProSieben from KirchMedia.
So, we can find some comfort in that the identity of the
purchaser is finally known.Much to my dismay however, I read in
the March 18th edition of the Financial Times and various other
publications, that you were contemplating seeking an exemption
from the Bafin (the German SEC) regarding your legal requirement
to make a full bid for the ProSieben listed shares.

Presumably, this would be based on the assumption that ProSieben
is the subject of a reorganization. Based upon my review of the
finances of the company however, the only reorganization which is
occurring is that of KirchMedia, the defunct holding company, and
not ProSieben, which happens to be financially sound and
according to your remarks in the New York Times, is "...(in) the
second biggest media market in the world. You have this most
incredible bouquet of networks and there is a lot of room for
improvement in the way the channels are managed."

ProSieben is profitable this year and is going to be so next year
as well so, what reorganization are you referring to?In addition,
you will recall that Heinrich Bauer Verlag GMBH, your former
competitor for the ProSieben assets, said in a Reuters dispatch
on December 20, 2002, that Bauer would be "legally required to
make a takeover bid..." if they acquired control of ProSieben.
That, per chance, is the way that our attorneys also interpret
Chapter 4 (Paragraphs 29-31) of the newly revised German
investment code.Please consider that there is a considerable U.S.
ownership of the preferred shares of ProSieben. You have a legal
and ethical responsibility to follow the law as far as these
shareholders are concerned. Of course, the German authorities, as
so often in the past, have failed to protect shareholders despite
their legal responsibility to do so. I simply don't have much
faith in the German authorities.

Nonetheless, you will note that Proctor and Gamble, in its
proposed acquisition of Wella AG announced yesterday, has
recognized its legal obligation by making a simultaneous offer
for Wella's preferred shares.  Mr. Saban, I truly hope that your
search for an exemption is not a disingenuous attempt to
manipulate the shares in your favor in case the average price is
to be determined 3 months prospectively rather than 3 months
retroactively. We are aware that you are teaming up with a French
partner, TF1, and between the latter and the German authorities,
you have all the ingredients for the well-known "Axis of Weasel".
I implore you to do what is right by these preferred
shareholders. Remember that you are going to be a major media
company and you wouldn't want to start with the "gods of war" on
your heels.

Looking forward to hearing from you on this matter.

I am,

Yours sincerely,
Guy Wyser-Pratte

WPM is a Manhattan based investment manager.

CONTACTS:  WYSER-PRATTE
           Eric Longmire
           Phone: 212/495-5350


MOBILCOM AG: Market Capitalization Fell Further by EUR374.5 MM
--------------------------------------------------------------
Chief Executive's statement

The imminent threat to the very existence of our company has been
averted. Thanks and appreciation are due to all those who worked
for weeks with great commitment on saving the company. We wish to
express our special gratitude to the Federal Government as well
as the government of the State of Schleswig-Holstein, who were
instrumental in helping to save MobilCom by acting swiftly and
providing guarantees.

Dr. Dieter Vogel, who led the negotiations with France Telecom on
behalf of MobilCom, deserves thanks for his untiring, successful
commitment. Respect and appreciation are also due France T,l,com
for assuming all debts from the UMTS project.

MobilCom can now focus exclusively on restructuring the company.
The financial reconstruction is already underway with full force,
and we have begun to implement a comprehensive, painful process
of layoffs. Just in time for the Christmas business, MobilCom
will again be fully present on the market. Our goal of being back
in the black in our core business during the first six-month
period 2003 has not changed.

In the area of UMTS we have faced the new realities. MobilCom
lacks the financial means of actively continuing the UMTS
project. Consequently, we have put these activities on hold and
rigorously written down to zero all assets. The writedown amounts
to a total of 9.9 billion euros. Since at the same time an
agreement was reached for France T,l,com to assume all UMTS debts
and the UMTS activities have been put on hold, all risks
concerning the area of UMTS have thus been accounted for on the
company balance sheet. The ,new" MobilCom is lining up without
any debts from the UMTS project.

We thank you for the confidence you have placed in us.

Investor Relations report

Now that the UMTS liabilities have been assumed by France
Telecom, effective investors relations activities can be started
once again. The restructuring program begun by MobilCom AG's
management offers the ideal starting point for future work with
shareholders, analysts and investors. In the third quarter we
have already improved the results of the core cellular business
by means of effective cost management. The implementation of the
restructuring program will be advanced in the next few months
with the help of a second loan of EUR112 million from the leader
of the consortium, the German reconstruction loan bank (KfW),
along with Landesbank Schleswig-Holstein, Deutsche Bank and
Dresdner Bank (the first loan was for EUR50 million). Our
operational goal is to lead the core cellular business back to
profitability in the first half of 2003.

Share price volatile in third quarter of 2002 France Telecom's
withdrawal in September this year had extremely negative
consequences for the price of the MobilCom share in the third
quarter.

The share reached a new low for the year at EUR0.73. The
continued skepticism on the stock markets, and in particular
towards the telecommunications industry, created additional
pressure. After the severe losses in value already sustained in
the previous quarter, the market capitalization of MobilCom AG
fell by a further EUR374.5 million to EUR141.3 million. At the
end of the third quarter of 2002, the share was listed at
EUR2.15. After the reporting date the upward trend in the price
continued, and by November 25 it had reached EUR5.60.

Comprehensive investor relations service
Investor relations at MobilCom will continue to mean open and
transparent communication in the future, too. In the next few
months the Investor Relations department, along with the
Management Board, will again actively seek contacts with analysts
and investors. In addition to direct personal contacts,
prospective investors have access to a comprehensive range of
information about the MobilCom share on the Internet by visiting
http://www.mobilcom.deand clicking on the Investor Relations
button. The menu item ,Investor Info" offers current IR topics
such as notifiable securities and the latest analysts' reports on
MobilCom.

Prospective investors can contact us by e-mail at ir@mobilcom.de
to request background information, or they can download it from
the website. Despite our reduced staff, MobilCom will continue to
offer the full service for all shareholders into the future.

After the third quarter, the discussions with France Telecom
intensified dramatically and at times severely threatened
MobilCom AG's survival. Following France Telecom's termination on
11 June of the cooperation framework agreement between the two
companies, on September MobilCom 13 was brought to the verge of
insolvency by the announcement that France Telecom's Board of
Directors had resolved to abandon all financial support.

Through the resolute and practical support of the German federal
government and the Schleswig-Holstein state government,
insolvency was averted and MobilCom's existence was safeguarded.
At extremely short notice, the German reconstruction loan bank
(KfW) provided a guaranteed bridging loan of EUR50 million. This
cash injection enabled the company to maintain its business
activities.

After the reporting date, September 30, 2002, we made an
agreement facilitating the restructuring of the cellular service
provider business and releasing the company from its UMTS
liabilities.

Specifically, France Telecom is releasing MobilCom AG from
liabilities totaling EUR7.1 billion. This includes EUR4.7 billion
in bank borrowings to finance the UMTS licence and EUR1.4 billion
in supplier loans from Nokia and Ericsson, which are being
assumed by France Telecom, as well as shareholders' loans
amounting to EUR1.0 billion. MobilCom is being released from the
full debt. For its part, France Telecom is in the process of
reaching a final settlement with the UMTS banking consortium and
the network suppliers. In addition to assuming Mobil-
Com's debt, France Telecom is also assuming the costs involved in
,freezing" the UMTS project. Payments up to a total of EUR580
million will be made in line with financial requirements. This
will cover all costs including the cancellation of all long-term
contracts. The agreement also states that 90 percent of any
proceeds from the sale of UMTS assets will go to France Telecom.
In exchange, MobilCom will abandon any claims arising from the
cooperation framework agreement with France Telecom, which
governs the financing of the construction of a UMTS network at
France Telecom's expense.

Major shareholder Gerhard Schmid has approved this agreement and
has also abandoned any claims arising from the agreement with
France Telecom. The agreement between MobilCom and France T,l,com
is subject to the approval of the extraordinary general meetings
of the two companies, which are expected to take place in January
2003, and to a final agreement being concluded between France
Telecom and the UMTS banks and network suppliers.

At the same time, MobilCom has signed a loan agreement for EUR112
million with a banking consortium consisting of consortium leader
KfW and Deutsche Bank, Dresdner Bank and Landesbank Schleswig-
Holstein. With the bridging loan of EUR50 million, therefore,
MobilCom now has a total of EUR162 million in new funds to
restructure its core cellular service provider and fixed
network/Internet businesses.

Business development
The asset, liability, financial and profit situation in the third
quarter is dominated by the effects of write-downs on the UMTS
project, which eclipse the operational developments.

Write-downs on the UMTS project Now that financial support for
the construction of the UMTS network has been withdrawn by France
Telecom, MobilCom no longer has any funding at its disposal for
the UMTS project. Nor are there any alternative financial sources
available. From the current viewpoint, the UMTS project can thus
no longer be actively carried on - and this has resulted in the
decision to ,freeze" the project. In the fundamentally changed
circumstances, write-downs cannot be avoided. MobilCom has
resolved to write off fully the UMTS licence and all other assets
connected with the UMTS project (in particular the cellular
network).

The amount to be written off is EUR9.9 billion, of which the UMTS
licence accounts for EUR8.4 billion, capitalised UMTS interest
EUR0.9 billion, base stations and cellular network equipment
EUR0.5 billion and miscellaneous items EUR0.1 billion. In return,
we have capitalised a claim for adjustment against France Telecom
of EUR7.1 billion. In line with the amicable solution we seek
with France Telecom, and on the basis of the state of
negotiations as assessed on 30 September 2002, MobilCom is
expecting France Telecom to pay its UMTS bank loans, its supplier
loans from Nokia and Ericsson and its shareholders' loans. The
claim for adjustment has been valued and shown on the balance
sheet at the total amount of EUR7.1 billion. The settlement
reached with France Telecom in the meantime confirms the
appropriateness of this accounting approach.

Operational performance
At EUR518.8 million, MobilCom AG's consolidated sales in the
third quarter remained at the level of the two previous quarters.
Cumulative sales up to September amounted to EUR1.55 billion. The
Cellular segment recorded a slight seasonal rise to EUR386.3
million. However, sales in the fixed Network segment fell
slightly to EUR130.7 million. This is the consequence of a
changed sales mix, with an increasing proportion of low-priced
Internet minutes. In the ,Other" segment, sales fell to EUR1.8
million as a result of the closure and subsequent sale of
the unprofitable computer chain Comtech on July 31, 2002. No
significant sales will be made in the ,Other" segment in future
because of our increasing focus on our core cellular and fixed
network/ Internet businesses.

The Group made an EBIT (i.e. before interest and tax) loss of
EUR2.85 billion in the third quarter. This includes the EUR2.8
billion balance of the unscheduled write-offs on the UMTS
business (write-off of EUR9.9 billion; capitalization of EUR7.1
billion claim for adjustment). Net of these items, EBIT earnings
improved in comparison with the previous quarter. The loss for
the period amounts to EUR2.86 billion.

This includes negative interest of EUR3.7 million and deferred
taxes.

Outlook
For the remainder of the financial year we expect an operating
result similar to that of the third quarter. The first structural
result improvements will be offset by the higher costs of
customer acquisition over the Christmas period, in which sales
are traditionally high in the sector. The extraordinary
expenditure as a consequence of the restructuring process will
have a considerable negative effect on results in the fourth
quarter, but this will form the basis for a sustained improvement
in earning power in the future.

In the Cellular segment MobilCom succeeded in minimizing the
operating losses despite the unfavorable general conditions.
Immediate measures aimed at consistent profit orientation instead
of indiscriminate growth of margins are beginning to show signs
of success. Sales in the segment rose to EUR386.3 million. This
figure, which is also boosted by seasonal factors, is the highest
quarterly sales figure achieved in the current financial year.
Losses were noticeably reduced. The segment made an EBITDA loss
of EUR10.8 million, in comparison with an EBITDA loss of EUR21.5
million in the previous two quarters. The EBIT loss was EUR40.6
million, in comparison with EUR135.7 million in the last quarter.

The figure for the current quarter includes extraordinary
expenditure of EUR18.4 million for the revaluation of intangible
assets. In the last quarter there was an extraordinary item of
expenditure of EUR96.6 million. The number of customers has
stabilised at 4.9 million. Of these, 3.4 million are contract
customers. The proportion of contract customers in the cellular
customer base is thus 68 per cent, still well above the market
average of 46 per cent. Our share of the cellular market as a
whole is 8.7 per cent, and in the contract customer segment 12.8
per cent. In the third quarter, 282,000 new customers were
acquired. This sales performance is especially noteworthy in view
of the extremely low availability of mobile phones in the third
quarter because of the acute cash shortage.

Average revenue per customer (ARPU) has stabilised at EUR22.

Customer acquisition costs were reduced significantly in the
third quarter, due in substantial part to the discontinuation of
highly-subsidised rental offers on mobile phones. These measures
underline the effect of the first attempts at consistent profit
orientation.

Cellular
MobilCom contract customers compared with market average MobilCom
Market average The fixed Network segment made sales of EUR130.7
million in the third quarter. This represents a slight decline in
comparison with the second quarter, when sales amounted to
EUR143.7 million. The decline is attributable to an altered sales
mix, with an increasing proportion of low-priced Internet
minutes. This and two extraordinary items of expenditure
amounting to EUR23.0 million were the main factors causing a fall
in EBIT earnings, resulting in a loss of EUR18.5 million compared
with positive EBIT earnings of EUR8.9 million in the previous
quarter.

A total of 7.9 million customers used MobilCom's fixed network in
the third quarter. Of these, 0.9 million contract customers used
the pre-selection function, by which all phone calls are
automatically routed via the MobilCom fixed network service. The
call-by-call service, with which MobilCom customers can make
cheap calls using the fixed network prefixes 01019 and 01024, was
used by 3.6 million customers. The customer base for fixed
network voice telephony has thus shrunk slightly. However, there
was a gratifying development in customer numbers in the Internet
business: within a year, the number of Internet households using
freenet.de, the number two German online service, has risen from
2.5 million to 3.4 million.

This represents customer growth of 36 per cent. A total of 6.4
billion fixed network minutes were sold via the fixed network in
the third quarter, of which 5.5 billion are attributable to
Internet. Sales of fixed network minutes are at the same level as
in the second quarter. In the third quarter the fixed Network
segment was dominated by the consolidation of voice telephony and
a further shift in sales towards data services. The shift in the
customer base away from higher-margin voice call rates to lower-
margin Internet rates is also reflected in the result of the
fixed Network segment. As mentioned in the last quarterly report,
this development has been intensified by the increasingly
aggressive pricing of Internet rates, combined with a less than
ideal cost situation in the Internet access business. In future,
the cost situation in the Internet business is to be improved by
further expansion of access points, and gross earnings thus
increased. In order to reverse the decline in customer numbers in
voice telephony, sales activities have been increased.

Both these measures will improve the results of the segment
within a few months. A further negative impact on the results
came from two additional extraordinary items: MobilCom
discontinued the operation of direct local connections in the
third quarter, since this cannot be offered competitively in the
current regulatory environment. A provision of EUR10 million has
been made to cover the costs of the discontinuation. Up to now,
MobilCom's fixed network has been planned to be a part of the
UMTS backbone. Freezing our UMTS activities reduces the need for
this backbone capacity. Since the capacity cannot be used for any
other purpose, a provision is accordingly being made in this
quarter for a write-down of EUR13.0 million.

Minutes sold via fixed network, including Internet, in billion
Development of Internet dial-up households, in million Investor
Relations report Now that the UMTS liabilities have been assumed
by France Telecom, effective investors relations activities can
be started once again. The restructuring program begun by
MobilCom AG's management offers the ideal starting point for
future work with shareholders, analysts and investors. In the
third quarter we have already improved the results of the core
cellular business by means of effective cost management. The
implementation of the restructuring program will be advanced in
the next few months with the help of a second loan of EUR112
million from the leader of the consortium, the German
reconstruction loan bank (KfW), along with Landesbank Schleswig-
Holstein, Deutsche Bank and Dresdner Bank (the first loan was for
EUR50 million). Our operational goal is to lead the core cellular
business back to profitability in the first half of 2003. severe
losses in value already sustained in the previous
quarter, the market capitalisation of MobilCom AG fell by a
further EUR374.5 million to EUR141.3 million. At the end of the
third quarter of 2002, the share was listed at EUR2.15. After the
reporting date the upward trend in the price continued, and by
November 25 it had reached EUR5.60.

To see financials: http://bankrupt.com/misc/MobilcomAg.pdf

CONTACT:  MOBILCOM AG
          Patrick Moller
          Phone: +49 (0)4331 69 1173
          Fax: +49 (0)4331 69 2888
          E-mail: ir@mobilcom.de


MOBILCOM AG: Board Approves Annual Financial Statement
------------------------------------------------------
Mobilcom AG's supervisory board approved the annual financial
statement on its meeting [Thursday}.

Mobilcom realized revenues of 2.053 billion Euro in 2002 and a
loss for the period of 3.4 billion Euro. The result is mainly
influenced by write-offs in the UMTS segment.

Without these write offs the loss for the period amounts to 504
million Euro. This amount includes significant restructuring
expenditures as well as one-time expenditures.

The operating loss of the period 2002 amounts to 146 million
Euro.

The annual financial statement, the ongoing business and a
preview for the business year 2003 will be presented by
Mobilcom's management board at a press conference in Hamburg,
March 27, 2003.


MOBILCOM AG: Sale of Fixed Line Activities to Freenet Approved
---------------------------------------------------------------
Freenet.de AG takes over Mobilcoms fixed line activities on April
1, 2003. The contract which still needs the approval by the
credit grantors has been approved by Mobilcom's supervisory board
on its meeting today. The supervisory board of freenet.de AG has
already approved this contract.

                     *****
Last month MobilCom AG said it a statement it signed a
preliminary contract to sell its fixed line business, including
customers and infrastructure, for EUR 35 million to freenet.de
AG.

The statement said:

MobilCom has a 76% holding in freenet.de. The main reason for the
sale is the exploitation of synergies between fixed line and
Internet business.

Improved integration of these two fields will increase efficiency
and thus reduce costs. In addition, infrastructure investments
planned by freneet.de mean guaranteed competitiveness in the long
term.

With this sale, MobilCom increases the value of its freenet.de
holding at the same time as putting itself in a position to
reduce its current debts sooner than planned if necessary.

The sale price will be paid in four installments, two of EUR7.5
million and two of EUR 10 million, during this and next year.

The contract has yet to be approved by the supervisory board, the
warrantors and the lending banks.


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


FIAT SPA: Snecma's Acquisition of Fiat Avio to Face Glitch
----------------------------------------------------------
The plans of state-owned aerospace company Snecma to acquire a
controlling stake in Italian Fiat Avio could be blocked by the
troubled trade relations of Paris and Rome.

It is noted that French and Italian authorities are engaged in
bilateral talks to settle a separate dispute related to the
purchase by French state-owned utility Electricite de France
(EdF) of an 18% stake in Italian energy holding company
Italenergia Bis.

Sources familiar with the bilateral talks say authorities would
like the separate dispute settled before clearing Snecma's bid
for Fiat Avio.

One person said: "The combination of the two dossiers creates a
complicated situation.  It makes it difficult to predict the
outcome of current talks."

The dispute started when Rome passed an emergency decree to cap
EdF's voting rights in Italenergia at 2% right after EdF and
automotive group Fiat SpA wrestled control of Italenergia from
Mediobanca SpA.

Fiat SpA is Fiat Avio's current owner, who is selling the
avionics unit to raise cash needed to recapitalize its loss-
making auto unit, Fiat Auto.

According to the Italian government, they were shocked to see a
French state-owned monopoly investing in Italy at a time when the
French electricity market wasn't fully liberalized.

Meanwhile, Snecma announced it would be interested in bidding for
Fiat Avio if it can get a stake of at least 50% in the Fiat unit.

With the French company's interest in Fiat Avio remaining intact,
talks will still be pursued, said a spokeswoman at Snecma.

Moreover, the aerospace company has said it was aware of likely
opposition from the Italian government to the acquisition by a
foreign investor.  It has also been made known that the company
might team up with Italian conglomerate Finmeccanica SpA to ease
any problems.

CONTACT:  FIAT SPA
          250 Via Nizza
          10126 Turin, Italy
          Phone: +39-011-686-1111
          Fax: +39-011-686-3798
          Toll Free: 800-804027
          Home Page: http://www.fiatgroup.com/e-index.htm
          Contact:
          Giovanni Maggiora, Vice President - Investor Relations
          Phone: +39-011-686-3290
          Fax: +39-011-686-3796
          E-mail: Investor.relations@geva.flatgroup.com


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


GETRONICS N.V.: Group of Shareholders Requests Investigation
------------------------------------------------------------
Getronics N.V. announces that a group of shareholders have
requested the "Ondernemingskamer" ("Enterprise Division") of the
Amsterdam Court of Appeal to order an investigation into the
affairs of the company.

In relation to this, request has also been made to order
provisional measures. The requested measures aim to cancel the
Extra-Ordinary General Meeting of Shareholders, scheduled to be
held on March 27, 2003, or at least to postpone the adoption of
any resolutions at such a meeting (including resolutions to
facilitate the Revised Invitation to Tender).

Whether such a request will be granted has to be decided by the
Court of Appeal after a hearing is held.

                       *****
Earlier, TCR-Europe reported that bondholders who claimed they
represent 20% of total outstanding bond capital of the company
are demanding that they be provided with detailed information on
Getronic's plans to save the business.

They were asking the court to fine Getronics EUR1 million a day
on failure to provide the information.

CONTACT:  GETRONICS N.V.
          Getronics Investor Relations
          Phone: +31 20 586 1964
          Fax: +31 20 586 1455
          E-mail: investor.relations@getronics.com


GETRONICS N.V.: Appoints Schisano Chairman of Getronics Italy
-------------------------------------------------------------
Getronics is pleased to announce that it has appointed Roberto
Schisano as Chairman of Getronics Italy following the resignation
of the current General Manager, Paolo Ruzzini.

Mr Schisano started his career in 1971 at Texas Instruments. He
spent the next 23 years with that company in roles including
Managing Director of its Italian subsidiary, where he was
responsible for the largest-ever foreign ICT investment in Italy.
In 1991, Mr Schisano was appointed President of Texas Instruments
Europe. Three years later, he joined Italy's state airline
Alitalia as its Managing Director and Chief Executive Officer.
There, Mr Schisano led a large restructuring process and
introduced Alitalia's new strategy in the light of market
liberalisation. From 1997 until 1999, Mr Schisano was Group Chief
Executive of Piedmont International and led further
restructurings in the area of technology and telecoms.

Mr Schisano has an outstanding track record in the European ICT
industry. He has an in-depth knowledge of the value chain in the
ICT business and is familiar with many of the Company's current
clients. He will use his substantial network of contacts to
introduce Getronics Italy's skills and capabilities to new
clients.

Statement from the Board of Management of Getronics:
"Despite the tough economic conditions, we are convinced that the
Italian market has huge potential for our ICT capabilities.
Roberto will lead our efforts in rethinking our strategy and
service delivery so that we reinforce a profitable and successful
position in Italy that benefits our clients, our Italian
employees, and our company as a whole. We are confident that
Roberto is the right man for this challenging task."


KLM ROYAL: Suspends Services to Certain Destinations
----------------------------------------------------
KLM Royal Dutch Airlines will temporarily suspend services to a
number of its destinations in the Middle East. Flight frequency
to destinations in other regions will also be temporarily reduced
or smaller aircraft will be deployed.

In so doing, KLM is responding to diminishing demand arising as a
consequence of the war in Iraq. For the time being, these measure
will apply until April 13, 2003, but KLM will additionally adapt
its schedule temporarily if fluctuations in demand make this
necessary.

It goes without saying that KLM will only operate services to
destinations where the authorities can guarantee that the safety
of its passengers or crews will in no way be jeopardized.

Middle East

Between March 24 and April 13, 2003 KLM will suspend all flights
to Amman, Beirut, Damascus, Abu Dhabi, Bahrain, Dammam, Doha and
Kuwait. For the time being, services to Tel Aviv will be
suspended from March 24 through April 6. Services to Dubai and
Tehran remain unchanged as yet.

Africa

Flight frequency to Cairo and Casablanca will be reduced from
seven to five roundtrip services a week. Flight frequency to
Tripoli will be reduced from three to two services a week.

North America

KLM and Northwest Airlines consider to decrease flight frequency
between Amsterdam and Detroit from four to three roundtrip
services a day. The number of roundtrip services operated to John
F. Kennedy Airport in New York will be temporarily reduced from
eleven to seven a week.

Northwest will reduce flight frequency on a number of routes
between the United States and Europe within the joint venture
over the next three weeks, along with utilizing different
aircraft types.

Europe

Within its European network, KLM will reduce flight frequency
and/or operate smaller aircraft types to a large number of
destinations over the period from March 24 through April 13,
2003.

Information

Effective March 21, 2003 all temporary adjustments to the
schedule will be indicated at www.klm.com and in the reservations
systems.


KONINKLIJKE AHOLD: Watchdog Suspends Inquiry Into Auditor
---------------------------------------------------------
The Dutch accounting watchdog suspended an immediate inquiry into
the auditor of Ahold, the Dutch retailer involved in a US$500
million accounting irregularity, pending results of
investigations in the company.

The Royal Netherlands Institute of Registered Accountants will
take up the probe into Deloitte & Touche after the inquiry of the
financial regulators in the Netherlands and the US are completed.

Piet Hoogendoorn--the institute's president and global chairman
of Deloitte & Touche Tohmatsu, the parent organization of
Deloitte & Touche--said he had no part in the deliberations about
the auditing firm.

He insisted there would be no conflict of interest between his
positions at both institutions since he had not done any work for
Ahold.

Deloitte personnel with major roles on the audit were not
available for comment on Thursday, according to the Financial
Times.

But the global chief executive of Deloitte Touche Tohmatsu, Jim
Copeland, is regarded to have strong ties with Ahold by virtue of
his role as advisory partner in the retailer during 2001 and
2002.  He was not, though, suspected of any wrongdoing in the
accounting errors under investigation.

Ahold admitted earlier it failed to provide Deloitte with crucial
information about certain joint ventures--a matter that secretly
angered the personnel of the firm, according to the report.

Proving that it had done its work well, Deloitte said it informed
Ahold's management about irregularities during 2002.

But since Ahold's accounting troubles extend toward 2001,
Deloitte could still face inquiries if a big proportion of the
errors are made during 2001.


KONINKLIJKE AHOLD: Supplier Contracts Have Negligible Changes
-------------------------------------------------------------
The head of Ahold's U.S. supermarkets division assured there is
no worry regarding its relationship with suppliers after the
discovery of the overstatement in its profits.

William Grize said: "If you ask me where on the worry chart (the
suppliers are), it's way down on the list."

Mr. Grize told The Wall Street Journal that only two of its
40,000 suppliers have tightened payment terms after Ahold
disclosed that U.S. Foodservice overstated its profits by at
least US$500 million.  The disclosure led to the resignation of
Chief Executive Cees Van der Hoeven and Chief Financial Officer
Michiel Meurs, and the lost of two-thirds of Ahold's share value.

Ahold disclosed the accounting irregularity after it has obtained
agreement for a EUR3.1-billion credit facility with banks.  The
credit line included 60 to 70 new replacement stores in 2003,
according to Mr. Grize.

Mr. Grize is also confident Ahold does not have to sell any of
its U.S. supermarkets in the near term to cut down its EUR12.3
billion debt.

The U.S. supermarket division of Ahold can proceed with a capital
spending plan following approval from creditor banks.


=====================
S W I T Z E R L A N D
=====================


CENTERPULSE LTD.: Plans to Combine With Smith & Nephew
------------------------------------------------------
GBP1.5 Billion Recommended Offer By Smith & Nephew For
Centerpulse

The Boards of Smith & Nephew plc and Centerpulse AG announce that
they have agreed to combine their businesses to create a leading
global orthopaedics company.

The Transaction will be effected by Smith & Nephew Group plc
(which will be the new holding company of Smith & Nephew) making
a recommended offer for Centerpulse and, in parallel, a
recommended offer for InCentive Capital AG, a listed investment
company which holds, or has the right to hold, 19% of the issued
share capital of Centerpulse.

Smith & Nephew Group will offer 25.15 New Smith & Nephew Group
Shares and CHF 73.42 in cash in respect of each Centerpulse
Share, valuing each Centerpulse Share at CHF 282.  The offers for
Centerpulse and InCentive will together result in the issue of
298 million New Smith & Nephew Group Shares and the payment of a
net GBP400 million (CHF 870 million) in cash, after taking
account of InCentive's expected cash balances.  On this basis,
the Combined Group will have a pro forma market capitalisation of
GBP4.7 billion.

Shareholders of both companies will benefit from the expected
cost and revenue synergies arising from greater scale, and the
opportunity to enhance the Combined Group's performance over the
medium and long term.  The Transaction transforms the scale of
the Combined Group's orthopaedics business and in particular
will:

-- Give the Combined Group the No 3 global position (up from No 7
and No 8 for Smith & Nephew and Centerpulse respectively) in the
$14 billion orthopaedics market, one of the fastest growing
medical technology sectors, which grew at an estimated 15% in
2002.  The Combined Group will derive approximately 74% of sales
from the orthopaedics sector (joint implants, trauma,
arthroscopy, spine and dental implants)

-- Strongly position the Combined Group in reconstructive
implants as the market leader in Europe with approximately a 26%
market share.  With 18% of the global reconstructive implant
market, the Combined Group will have the No 3 position worldwide
in hips and No 4 in knees

-- Enhance earnings per share of the Combined Group by mid single
digits in 2004 (before amortisation of goodwill and exceptional
integration costs) and approaching double digits in 2005 when the
post-tax return on investment is expected to meet Smith &
Nephew's weighted average cost of capital

-- Generate significant long-term value through the combined
product base, customer network and scale-related benefits.  More
immediately, integration cost savings are expected to amount to
GBP45 million per annum by 2005, requiring exceptional cash costs
of GBP130 million to implement

-- Position the Combined Group to target a pre-goodwill operating
margin of 23% by 2005/6, up from Smith & Nephew's previous
guidance of 21%.  The Combined Group's Orthopaedics Division is
targeting pre-goodwill operating margin improvement to 27% by
that time

-- Bring together the complementary product ranges and develop
more rapidly the technological capabilities of the two
businesses.  The Combined Group will possess one of the most
innovative product line-ups in the global orthopaedics sector

-- Build on the geographical strengths of each business:
Centerpulse's leading market presence in Europe complements Smith
& Nephew's position as the fastest growing orthopaedic implant
company, having particularly strong growth in the US

-- Provide an enhanced platform for growth in the spine market,
the fastest growing segment of the orthopaedics sector, as well
as bring a strong dental implant business

-- Bring longer term scale benefits in terms of research and
development and access to key orthopaedic surgeon opinion leaders

Summary of the Transaction

-- Smith & Nephew Shareholders will exchange their Smith & Nephew
Shares for shares in a new holding company, Smith & Nephew Group,
on a one-for-one basis by means of a Court Scheme.  Smith &
Nephew Group will be the holding company of the Combined Group

-- The share and cash offers for Centerpulse and InCentive will
be made by Smith & Nephew Group.  It will offer 25.15 New Smith &
Nephew Group Shares and CHF 73.42 in respect of each Centerpulse
Share so that Centerpulse and InCentive shareholders will
collectively own 24% of the Combined Group.
Centerpulse and InCentive shareholders (the latter in respect of
InCentive's holding in Centerpulse) will also be offered a
Collective Mix and Match Facility whereby they may elect to
receive more or less cash to the extent that other Centerpulse or
InCentive shareholders have elected to receive more or fewer New
Smith & Nephew Group Shares

-- On the basis of Smith & Nephew's closing price of 381.25p on
March 19, 2003, the Centerpulse Offer values each Centerpulse
Share at CHF 282 and the total issued share capital of
Centerpulse at CHF 3.3 billion (GBP1.5 billion).  The Centerpulse
and InCentive Offers will together result in the issue of 298
million New Smith & Nephew Group Shares and a net payment of CHF
870 million (GBP400 million) in cash, after taking account of
InCentive's expected cash balances

-- The Centerpulse Offer, together with assumed debt, represents
a multiple of 12.6 times Centerpulse's continuing EBITDA before
exceptional items for the year ended 31 December 2002, the
results of which are being released today.  In these results
Centerpulse reports sales of CHF 1,241 million and operating
profit before goodwill amortisation and exceptional items of CHF
228 million for continuing operations

-- Smith & Nephew Group will assume Centerpulse's outstanding net
debt which stood at CHF 358 million (o165 million) as at 31
December 2002.

Smith & Nephew Group has entered into a new underwritten bank
debt facility of $2.1 billion, inter alia to refinance the
existing net debt of both Smith & Nephew and Centerpulse, to
finance the cash element of the Offers and to provide working
capital headroom

-- Shareholders representing 77% of InCentive's issued share
capital have undertaken irrevocably to accept the InCentive
Offer.  Furthermore, Smith & Nephew has been granted a right of
first refusal over their shares in the event of a third party
making a higher offer for Centerpulse and the third party offer
becoming unconditional as to acceptances.  InCentive's portfolio
is currently being rationalised so as eventually to comprise only
Centerpulse shares and cash, and the terms of the InCentive Offer
will be such that in respect of its holding in Centerpulse they
will precisely reflect the terms of the Centerpulse Offer


-- The primary listing of the Combined Group will be in London.
Smith & Nephew Group will seek a secondary listing of its shares
on the SWX Swiss Exchange as of the Settlement Date or as soon
thereafter as is practicable.  Smith & Nephew Group intends to
replicate Smith & Nephew's current ADS listing in the United
States

-- The Centerpulse Offer has been unanimously recommended by the
Board of Centerpulse.  The Centerpulse Offer is conditional,
inter alia on the approval of Smith & Nephew's shareholders, on
regulatory clearances and on the Court Scheme having become
effective

-- The InCentive Offer has been unanimously recommended by the
Board of InCentive and is conditional, inter alia, on the
Centerulse Offer having been declared wholly unconditional and on
the Court Scheme having become effective

-- The Transaction is expected to be completed towards the middle
of 2003

-- Smith & Nephew is being advised by Lazard.  Centerpulse is
being advised by Lehman Brothers and UBS Warburg.  InCentive is
being advised by Lombard Odier Darier Hentsch & Cie

Commenting on today's announcement, Chris O'Donnell, Chief
Executive of Smith & Nephew, said:

'This transaction is an important strategic step for both
companies.  It brings together two highly complementary
businesses, transforming the scale of both of our orthopaedics
businesses, as well as providing an enhanced position in the
rapidly growing spine segment.  The common technology focus and
excellent product and geographic fit between the two businesses
will be a strong platform for value creation.

'Given the cultural similarities of our two organisations, we are
confident we can achieve a smooth and rapid integration of the
two businesses.  We expect the resulting combination to deliver
significant synergies and returns for shareholders, and the
quality and breadth of the combined product range will enable us
to serve better the needs of patients, surgeons and hospitals.'

Dr. Max Link, Chairman and Chief Executive of Centerpulse, added:

'We are delighted to be creating, with Smith & Nephew, one of the
world's leading orthopaedics companies which will have increased
strength and the resources to prosper as a global player in its
sector.  We believe that a combination with Smith & Nephew
represents an attractive opportunity for shareholders and
strongly recommend Centerpulse shareholders to accept the offer.'

This summary should be read in conjunction with the full text of
the following announcement.  Appendix I contains the conditions
to the Centerpulse Offer. Appendix II contains the conditions to
the InCentive Offer.  Appendix III contains the definitions of
terms used in this announcement.

Exchange rates of CHF 2.1756: GBP1 and CHF 1.3915 : US$1 have
been used throughout this announcement.

                      *****

Lazard is acting for Smith & Nephew in connection with the
Transaction and no-one else and will not be responsible to anyone
other than Smith & Nephew for providing the protections offered
to clients of Lazard nor for providing advice in relation to the
Transaction.

Lehman Brothers is acting for Centerpulse in connection with the
Transaction and no-one else and will not be responsible to anyone
other than Centerpulse for providing the protections offered to
clients of Lehman Brothers nor for providing advice in relation
to the Transaction.

UBS Warburg is acting for Centerpulse in connection with the
Transaction and no-one else and will not be responsible to anyone
other than Centerpulse for providing the protections offered to
clients of UBS Warburg nor for providing advice in relation to
the Transaction.

Lombard Odier Darier Hentsch & Cie is acting as financial adviser
for InCentive in connection with the Transaction and no-one else
and will not be responsible to anyone other than InCentive for
providing the protections offered to clients of Lombard Odier
Darier Hentsch & Cie nor for providing advice in relation to the
Transaction.  In addition, Smith & Nephew has entrusted Lombard
Odier Darier Hentsch & Cie with the technical execution of the
InCentive Offer.

CONTACT:  SMITH & NEPHEW
          Phone:  +44 (0) 20 7401 7646
          Chris O'Donnell, Chief Executive
          Peter Hooley, Finance Director
          Angie Craig, Corporate Affairs Director

          CENTERPULSE
          Max Link, Chairman and Chief Executive
          Urs Kamber, Chief Financial Officer
          Beatrice Tschanz, Corporate Communications
          Phone:  +41 (0) 1 306 9646
          Suha Demokan, Investor Relations
          Phone:  +41 (0) 1 306 9825

          INCENTIVE
          Phone:  +41 (0) 1 205 9300
          Rene Braginsky, CEO & Delegate of the Board
          Raoul Bloch

          LAZARD
          Phone:  +44 (0) 20 7588 2721
          (Financial Advisers to Smith & Nephew)
          Nicholas Shott

          CAZENOVE
          Phone:  +44 (0) 20 7588 2828
          (Brokers to Smith & Nephew)
          Duncan Hunter
          Tony Brampton

          DRESDNER KLEINWORT WASSERSTEIN
          Phone:  +44 (0) 20 7623 8000
         (Brokers to Smith & Nephew)
          Jim Hamilton
          Angus Kerr

          LEHMAN BROTHERS
         (Financial Advisers to Centerpulse)
          Kenneth Siegel
          Phone: +1 212 526 7000
          Henry Phillips
          Phone:  +44 (0) 20 7601 0011
          Joseph Kohls
          Phone:  +1 212 526 7000

          UBS WARBURG
          (Financial Advisers to Centerpulse)
           Karl Schmidt
           Phone:  +44 (0) 20 7568 5959
           Liam Beere
           Phone: +44 (0) 20 7568 2286

           LOMBARD ODIER DARIER HENTSCH & CIE
           (Financial Advisers to InCentive)
           Romeo Cerutti
           Phone:  +41 (0) 1 214 1330
           Marc Klingelfuss
           Phone:  +41 (0) 1 214 1332

           FINANCIAL DYNAMICS
           (PR for Smith & Nephew)
           London:  David Yates/Jonathan Birt
           Phone:  +44 (0) 20 7831 3113
           New York: Anton Nicholas/Deborah Ardern-Jones
           Phone:  +1 212 850 5626


CENTERPULSE LTD.: Ratings on Watch Positive After Take Over Deal
----------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB' long-
term corporate credit ratings on Centerpulse Ltd., Europe's
number-one manufacturer of orthopedic products, and its 'BB' bank
loan rating on Centerpulse Orthopedics Inc. on CreditWatch with
positive implications. The CreditWatch placement follows the
announcement by U.K.-based Smith & Nephew PLC, a leading
manufacturer of orthopedic, endoscopy, and advanced wound
management products, of an agreed GBP1.5 billion ($2.3 billion)
recommended offer for Centerpulse, subject to shareholder and
regulatory approval.

The GBP1.5 billion recommended offer is likely to be funded by
GBP400 million in cash and the remainder in the form of new Smith
& Nephew shares. At Dec. 31, 2002, Centerpulse's total net debt
was about GBP165 million.

"From a business perspective, the combination of Centerpulse and
Smith & Nephew would further strengthen the combined group's
leading position and increase its European market share to about
26%," said Standard & Poor's credit analyst Omar Saeed. "This
would, therefore, give the combined group a clear advantage in
Europe over its key competitors, such as Johnson & Johnson
(AAA/Stable/A-1+) and Stryker Corp. (A-/Stable/A-2).

Furthermore, the combined entity's leading position in Europe
would be underpinned by Centerpulse's stable sales force and its
ability to maintain longstanding relationships with clients and
clinical partners."

In the U.S., the biggest reconstructive implants market in the
world, the combined entity would maintain an overall number-four
market position and also be able to benefit from a relatively
larger and more geographically dispersed sales force. Moreover,
the combined entity would enjoy a further diversification of
revenue sources. Standard & Poor's, therefore, believes the
combination of the two companies will have a positive effect on
the overall business profile of the combined entity.

From a financial perspective, based on the announcement by Smith
& Nephew on March 20, 2003, Standard & Poor's estimates that, on
a pro forma basis, the combined entity's debt protection measures
in financial 2003 will be commensurate with a weak investment-
grade financial profile.

Standard & Poor's will meet with the enlarged group's management
in the coming weeks to resolve the CreditWatch status.


CREDIT SUISSE: SWX Decides to Halt Preliminary Enquiries
--------------------------------------------------------
On November 15, 2002, the SWX Swiss Exchange announced that it
had instituted preliminary enquiries against Credit Suisse Group
with regard to a possible breach of Art. 72 of the Listing Rules
(ad hoc-publicity). These enquiries found no grounds for a breach
of the regulations on ad hoc-publicity by Credit Suisse Group.
SWX has thus halted proceedings.

SWX investigated whether or not Credit Suisse Group had
selectively passed information to analysts in the days preceding
the publication of its third-quarter figures for 2002. According
to rumors appearing in the "NZZ am Sonntag" newspaper of November
10, 2002, Credit Suisse Group had had to book a CHF 350 million
charge for tax items to its financial statements. The
consolidated quarterly statements for Q3/2002, published on 14
November 2002, carried a CHF 410 million charge in the "Taxes"
item of the Credit Suisse Group income statement. Credit Suisse
Group itself stated that it had contacted only one analyst in
advance of publication of the quarterly figures, in order to draw
his attention to an obvious error in the calculation of the tax
item. In doing so, Credit Suisse Group had referred exclusively
to information already in the public domain. Credit Suisse Group
disputes the representation of events as published by the "NZZ am
Sonntag".

The newspaper article on November 10, 2002 claimed that several
analysts had received tips - relevant to ad hoc-publicity
regulations - from Credit Suisse Group so that they could adjust
their profit forecasts with regard to taxes. These claims could
not be substantiated with the information available to SWX, and
the enquiries found no grounds for an improper conduct on the
part of Credit Suisse Group. SWX has consequently halted
proceedings.


ZURICH FINANCIAL: Informs Public of Exit From Baltic Countries
--------------------------------------------------------------
Zurich Financial Services (Zurich) and If P&C Insurance,
Helsinki, have reached a preliminary agreement for the transfer
of Zurich's insurance portfolios in Latvia and Lithuania to If
P&C Insurance. The transfer is subject to approval by the
authorities in the respective countries. In Estonia, Zurich's
businesses will be put in run-off as of April 1, 2003 and Zurich
will cease to write business in all segments. In addition, Zurich
and If P&C Insurance intend to collaborate in these three
countries in order to serve international corporate clients. If
P&C insurance is the largest property and casualty insurance
company in the Nordic region and already has a presence in the
Baltic countries.

Axel Lehmann, Chief Executive Officer of the Continental Europe
Business Division, said, "This agreement is a further step in the
implementation of our strategy to focus on core markets and core
activities that maximize the value of our businesses."

In 2002, Zurich's businesses in the three countries had a gross
written premium volume of approximately EUR 6 million.

A collaboration between Zurich and If P&C Insurance is an
important part of the agreement, which foresees that If P&C
Insurance will service Zurich's international corporate clients
in all three Baltic countries. Zurich can thereby ensure
continuity of local service in the Baltic countries to its
international corporate clients.

Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs about 68,000 people.

CONTACT:  ZURICH FINANCIAL SERVICES
          Public Relations
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax: +41 (0)1 625 26 41
          Home Page: http://www.zurich.com


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


AMP LTD.: Investors Warned to Decline Unsolicited Offers
--------------------------------------------------------
AMP Reset Preferred Securities and AMP Income Securities holders
have now been targeted by David Tweed's National Exchange
Proprietary Ltd., which is offering to buy their securities at
prices significantly below their market price.

The new unsolicited offers to securities holders follow previous
offers by National Exchange Proprietary Ltd to AMP retail
shareholders to buy their AMP ordinary shares.

National Exchange Proprietary Ltd is offering AMP Reset Preferred
Securities and Income Securities holders a mere AU$10 per
security.  Yesterday, these securities closed on the Australian
Stock Exchange at AU$96.85 and AU$77.05, respectively.  They
should not be confused with AMP ordinary shares.

AMP Chief Executive Officer, Andrew Mohl, said: "AMP Reset
Preferred Securities and Income Securities holders should
exercise extreme caution before acting on such unsolicited offers
in light of their low offer price.

He said AMP welcomed proposed Commonwealth legislation making it
compulsory for any share dealer offering to buy shares and other
securities to state the current market price.

National Exchange Proprietary Ltd has accessed the personal
information of AMP Reset Preferred Securities and Income
Securities holders from AMP under Chapter 2C of the Corporations
Act.

Under the Act, National Exchange Proprietary Ltd can obtain
security holder details from any publicly listed company.  These
details include: security holders' names, addresses, number of
securities held and date on register.

Mr. Mohl said it was important that AMP Reset Preferred
Securities, Income Securities holders and shareholders always
check the current trading price of AMP securities as well as
consult an independent financial adviser before accepting any
unsolicited offer.

CONTACT:  AMP LIMITED
          Level 24, 33 Alfred Street
          Sydney NSW 2000 Australia
          ABN 49 079 354 519
          Contact: Mark O'Brien
          Phone: 9257 7053


AVIONIC SERVICES: Posts GBP1.05 Million Loss for 2002
-----------------------------------------------------
Chairman's Statement

For the six months ended 31 December 2002

The last six months have proved even more difficult than the
previous year in terms of moving the business forward. Despite a
strong pipeline of sales prospects very few new orders were
signed.  A careful analysis of prospective orders has confirmed
that no orders have been lost but that, as previously, everything
is taking much longer to bring to fruition. Avionics continues to
be well placed as preferred supplier in over o6million worth of
contracts all of which are moving towards signature. The short-
term problem is that costs in preparation for these contracts
(e.g. bid costs, pre-production preparatory purchasing and, of
course, infrastructure costs) continue to be incurred, with no
offsetting revenue streams and cash continues to be consumed.

The interim results therefore make extremely poor reading, with
revenues being depressed by changes in the application of
existing accounting policies to a more conservative approach.
Thus some GBP500,000 of potentially recognizable accrued income
has been omitted but the associated costs remain in the Profit
and Loss Account. As a result the group has recorded a negative
gross margin. In addition, overheads have increased, in part due
to sharp increases in categories such as insurance, and in part
due to deliberate strengthening of the senior management team as
part of moving to AIM and in preparation for growth of the
business.

Once it became clear that orders continued to be delayed,
management took significant action in terms of cost reduction
resulting in some GBP400,000 of savings on an annualized basis
but although this action was taken in December 2002, the savings
will not begin to kick in until March 2003. However this has not
solved the company's working capital needs, which have been
severely impacted by the abnormal order receipt pattern and the
significant losses.

There is strong evidence that the market for the company's
offerings continues to exist as does the sales pipeline, albeit
that the pattern has been disrupted and is currently subject to
major geo-political uncertainties beyond the control of all of
us.  The company is aware of, and/or working on some GBP21
million of potential business for which it has been, and
continues to be very strongly placed. The opportunities
recognized at the time of moving to AIM remain available and
achievable, subject to the availability of additional funding.

The Company is actively in discussions with its key institutional
shareholders in order to raise the additional capital which it
urgently requires.  The Company will make a further announcement
as these discussions progress.

Importantly, too, in spite of the recent buffetings, I am glad to
report a good level of morale among the management team and a
determination to retrieve the situation and then to take the
business forward.

Tom Glucklich
Chairman

19 March 2003

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2002

               6 months to 31 December   6 months to 31 December
                        2002                      2001

                         Unaudited          Unaudited
                           GBP                 GBP

Turnover                   670,566         1,251,644

Cost of sales           (1,010,450)         (751,211)

Gross Profit/(Loss)       (339,884)          500,433

Administrative expenses   (682,178)        (469,712)

Operating Profit/( Loss) (1,022,062)         30,721

Interest receivable             -               129

Interest payable                            (31,948)

Loss on Ordinary Activities before
                        (1,053,752)          (1,098)
Taxation

Tax on loss on ordinary activities
                           -                (18,264)

Loss for the Financial Year (1,053,752)     (19,362)

Dividends                  -                   -

Retained Loss for the Financial Year
                           (1,053,752)      (19,362)

Loss per share (pence)          (5.10)        (0.23)

Diluted loss per share (pence)  (5.10)        (0.21)



CONSOLIDATED BALANCE SHEET

AT 31ST DECEMBER 2002

                          At 31 December    At 31 December
                             2002               2001

                           Unaudited          Unaudited

                             GBP                 GBP
Fixed Assets
Intangible assets          1,525,651          1,113,653
Tangible assets              195,536            137,332
                           1,721,187          1,250,985


Current Assets
Stocks                       858,875            614,178
Debtors
- Due within one year      1,330,690          1,362,777
- Due after more than one year36,000             44,777
Cash at bank and in hand         740             11,984
                           2,226,305          2,033,716

Creditors: Amounts Falling Due Within
                          (1,452,802)        (1,513,457)
One Year

Net Current Assets            773,503           520,259

Total Assets Less Current Liabilities
                            2,494,690         1,771,244

Creditors: Amounts Falling Due After
                            (120,925)          (236,699)
More Than One Year

Provision for Liabilities and Charges
Deferred Taxation           (138,302)          (174,427)

                           2,235,463          1,360,118

Capital and Reserves         206,765             83,333
Share premium account      2,895,805            966,171
Profit and loss account     (867,107)           310,614

Shareholders' Funds- All Equity
Interests                  2,235,463          1,360,118


The interim report was agreed by the Board of Directors on 19
March 2003

CONTACT:  AVIONICS SERVICES
          Tom Glucklich, Chairman
          Phone: 020 8974 5225
          Gareth Rowe, Chief Executive Officer
          Phone: 020 8974 5225
          James Bendall, River Roman Communications
          Phone: 01206 729 921
         NOBLE & COMPANY LIMITED
         Joe Philipsz
         Phone: 0131 225 9677


CORUS GROUP: Bondholders and Unions React to Dutch Decision
-----------------------------------------------------------
The decision of Corus Group's Dutch supervisory board to block
the GBP543 sale of its aluminum subsidiary to Pechiney of France
has generated spontaneous reactions among bondholders and unions
of the beleaguered company.

Bondholders hired US turnaround specialist and a law firm to
defend their interests, while unions are planning a national
protest campaign outside the group's UK plants to oust Corus
chairman Sir Brian Moffat.  The bondholders have appointed
Houlihan Lokey Howard & Zukin, the U.S. corporate restructuring
specialist, and law firm Cadwalader Wickersham & Taft.

The proceeds of the aluminum sale would have provided the company
funds to finance the measures needed to reduce capacity in the
U.K. As a result of the blocking of the sale, Corus has been
forced to hold urgent talks with its banks to raise the finances
needed to restructure its U.K.-based steel making operations.

According to reports, concerns over the group's financial
situation have prompted bondholders to arrange a conference call
on Tuesday to discuss concerns that Corus's lending banks will
make claims on the company's most valuable assets.  Such a move
would leave creditors with little chance of recovering any value
if the company is broken up.

If a sufficient number of bondholders register their interest
during the conference, a committee will then be formed to
represent the creditors in any negotiations with Corus and its
bank.

Meanwhile, unions' concern over the developments is that as many
as 4,500 jobs would be cut in U.K. operations in order to save
costs.  Workers are due to stage protests against planned job
losses at all of Corus's U.K. plants, although a date has not yet
been set.

Unions have reportedly insisted that performance at the loss-
making U.K. plants is improving and that there is no need to shut
any of them, as Sir Brian has indicated may happen.

Chairman of the National Trade Union Steel Coordinating Committee
Michael Leahy has said the unions had agreed at a meeting that
"Moffat must go".  He blamed Sir Brian's "lack of consultation"
with workers for many of Corus's problems and warned against
"panic changes that will harm the business".

However, some debt analysts think Corus's balance sheet is
unsustainable.  It was suggested that the company should follow
Marconi and British Energy and undertake a debt restructuring.


CORUS GROUP: British Unions to Lobby for Chairman's Resignation
---------------------------------------------------------------
A nationwide protest for the resignation of Corus Group chairman
Sir Brian Moffat is being mulled over by five British unions who
are against Sir Brian's plans to cut thousands more jobs and
possibly close a UK plant.

According to The Times, ISTC, Amicus, the T&G, the GMB, and Ucatt
have sketched out plans for a worldwide day of action, which will
be coordinated with colleagues in the Netherlands and Germany.

According to general secretary of the ISTC union and chairman of
the steel committee of unions Michael Leahy: "The company needs
to improve its performance. For that to happen employees and
management have to be pulling in the same direction Sir Brian
Moffat has been an obstacle to achieving this in the past . . .
It is the employees' view that Sir Brian will continue to be an
obstacle."

The action, which is expected to be one of the biggest
demonstrations against a single executive by unions, will target
more than 100 centers in the UK.

In another report, it is known that workers have agreed in a
meeting held in London that "Moffat must go".

Sir Brian was supposed to retire last week.  However, it was
postponed when Tony Pedder quit his post as chief executive after
Corus's plans to raise vital cash through a sale of its aluminum
business collapsed.


L.GARDNER: Bankers Appoint Administrative Receivers
---------------------------------------------------
The bankers of L.Gardner Group Plc had appointed administrative
receivers both for the group and its aerospace unit, Gardner
Aerospace Ltd.

In a statement, the company said it "regrets to announce that its
bankers have today [Thursday] appointed Myles Antony Halley,
Michael Vincent McLoughlin and Richard James Philpott of KPMG 2
Cornwall Street Birmingham B3 2DL as Joint Administrative
Receivers to L."

In January, the group requested that its bankers appoint
administrative receivers to the Group's 5 trading non-aerospace
subsidiaries, namely Sloman Engineering Limited, ADA
Manufacturing Services Limited, Gardner Avon Limited, Gardner
Parts Limited and Bentall Rowlands Limited.

Afterwards it was reported that the London Stock Exchange is
launching a probe into statements made by L Gardner's former
directors.  The shareholders, who lodged the complaints,
criticized the directors for overseeing the company's downfall
and at the same time offering to buy the remaining profitable
aerospace operation.


GLAXOSMITHKLINE PLC: Appoints Russell Greig as President
--------------------------------------------------------
GlaxoSmithKline announced Thursday that Howard Pien, President,
Pharmaceuticals International, has decided to leave GSK to become
Chief Executive Officer and President of Chiron Corporation, a
global pharmaceutical company based in California, USA.

"I want to thank Howard for his outstanding contribution to GSK
in the many roles he has held over the years," said JP Garnier,
Chief Executive Officer of GSK. "He has been a personal friend as
well as a business colleague, and I wish him great success."

Russell Greig, currently Senior Vice President, Worldwide
Business Development for R&D at GSK, will assume the position of
President, Pharmaceuticals International, reporting to David
Stout, President, Pharmaceutical Operations. Greig will be based
in London, and will become a member of the company's Corporate
Executive Team.

Before assuming the role as head of Worldwide Business
Development in R&D for GlaxoSmithKline in January 2000, Greig was
a member of the merger Integration Team. He had been General
Manager and Managing Director, Pharmaceuticals UK, for SmithKline
Beecham since December 1998, following a long-standing career in
R&D. Greig joined the company in 1980, and holds a B.Sc. and
Ph.D. in biochemistry from the University of Manchester,

"I am excited about Russell's appointment as President,
Pharmaceuticals International," Garnier said. "He is an
outstanding executive who holds a first class track record in
various positions in R&D, Commercial Operations, and Business
Development, all of which have given him a broad and diverse set
of skills."

In recognition of the increasing importance to GSK of the
Japanese market, Marc Dunoyer, currently Senior Vice President
and Regional Director, Japan, has been named President,
Pharmaceuticals, Japan, also reporting to David Stout. Dunoyer
will also join the Corporate Executive Team, and will continue to
be based in Japan.

Marc Dunoyer joined Glaxo Wellcome in October 1999 as Senior Vice
President, Glaxo Wellcome K.K. and was appointed to President &
Regional Director, Japan, in March 2000. He previously worked for
Hoechst Marion Roussel as President, Asia Pacific. Dunoyer has a
Bachelor of Law degree from Paris University, and an MBA from the
Hautes Etudes Commerciales.

"I am thrilled to welcome Marc as a newly appointed member of the
Corporate Executive Team," Garnier said.

These appointments will be effective March 31, 2003.

CONTACT:  GLAXOSMITHKLINE
          European Analyst/Investor
          Duncan Learmouth
          Philip Thomson
          Anita Kidgell
          Phone: 020 8047 5540
                 020 8047 5543
                 020 8047 5542

          US Analyst/Investor Frank Murdolo
          Tom Curry
          Phone: (215) 751 7002
                 (215) 751 5419


LONDON PACIFIC: Reports Consolidated Net Loss of US$205.5 MM
------------------------------------------------------------
London Pacific Group Limited reported a consolidated net loss for
the 12 months ended December 31, 2002 of $205.5 million, or $4.05
per diluted share and $40.49 per diluted ADR, compared with a net
loss of $344.8 million, or $6.76 per diluted share and $67.62 per
diluted ADR, for the same period in 2001.  The consolidated net
loss from continuing operations for 2002 was $62.2 million, or
$1.23 per diluted share and $12.26 per diluted ADR, compared with
a net loss from continuing operations of $224.0 million, or $4.39
per diluted share and $43.94 per diluted ADR, for 2001.  ADR
amounts have been restated to reflect the one-for-ten reverse
split in June 2002.  No dividends will be paid on the outstanding
shares and ADRs for 2002.

The Group recognized a $38.5 million loss in 2002 resulting from
the impairment of its investment in U.S. based London Pacific
Life & Annuity Company ('LPLA').

The loss was due to the decline in the level of LPLA's capital
after continuing bond and equity losses in poor market
conditions, which resulted in the North Carolina Department of
Insurance taking control of LPLA in early August.  The Group no
longer includes LPLA's financial results in its consolidated
financial statements and prior year results have been
deconsolidated. LPLA's after-tax loss for the first half of 2002
was $104.8 million and has been included in the Group's loss on
discontinued operations for the year.

The Group recognized other realized and unrealized investment
losses of $44.0 million for 2002 due primarily to a continued
decline in the value of the Group's investments in listed and
private technology companies.

As of December 31, 2002, the book value per share and book value
per ADR were $0.42 and $4.23, respectively.  These book value per
share and ADR computations exclude the number of shares held by
the employee benefit trusts and the related cost of those shares.

Assets under management, consulting or administration totaled
approximately $3.2 billion at December 31, 2002.  After excluding
LPLA's assets at December 31, 2001, assets under management,
consulting or administration fell by approximately $0.5 billion
between December 31, 2001 and December 31, 2002, due primarily to
the impact of falling stock prices on asset values.

London Pacific Assurance Limited ('LPAL'), the Group's Jersey,
Channel Islands based insurance company, continued to serve its
policyholders.  Poor market conditions resulted in aggregate
realized and unrealized losses of $16.6 million for LPAL during
2002.  LPAL discontinued the issuance of new policies during the
summer to preserve capital.  The impact of the problems at LPLA
resulted in a substantial increase in surrender activity, which
reduced the level of capital required to support the remaining
liabilities.  To date, the capital base is sufficient to support
liabilities.  Policyholder liabilities amounted to $35.4 million
at December 31, 2002, compared to $131.8 million at the end of
the prior year.  At December 31, 2002, LPAL's corporate bonds,
cash, accrued interest and amounts due from brokers amounted to
$35.4 million, quoted equities were $8.9 million and the book
value of private equities was $7.2 million.

London Pacific Advisors ('LPA') provides an extensive range of
online investment services to financial institutions and
investment advisors in the U.S.  LPA's pre-tax loss increased to
$4.2 million during the year ended December 31, 2002 compared to
$3.6 million for the same period in 2001.  Net revenues decreased
during the year due to a fall in assets under management or
administration in declining stock markets. Market declines were
partially offset by the addition of assets from new institutional
clients.  LPA has partnerships with or provides services to a
number of major U.S. institutions including First Mercantile
Trust Co., H&R Block Financial Advisors, Harris Investor
Services, ORBA(R) Financial Management, SunGard Wealth Management
Services, Union Planters Investment Advisors and Wells Fargo &
Co.  LPA has also developed a relationship with and is in the
process of rolling out a platform to Lincoln Financial Advisors.

Berkeley Capital Management ('BCM') is the Group's U.S. asset
management subsidiary. BCM's pre-tax income fell to $0.3 million
during the year ended December 31, 2002 compared to $0.5 million
for the same period in 2001.  BCM's principal business is the
management of wrap program assets for the clients of major
brokerage firms.  The number of customer wrap accounts increased
by 3% in 2002, but revenues fell due to market declines as well
as the impact of the loss of the management contract of LPLA's
bond portfolio.  BCM's core investment style, Dividend Equity
(formerly named Income Equity), focuses on companies in the S&P
universe with high relative yields and is designed to produce
superior returns with below average volatility.  The growth in
customer accounts in a difficult environment has been due to
BCM's long-term track record in the wrap market and the demand
for this investment style in current market conditions.

On March 10, 2003, the Group announced that it had entered into a
definitive agreement to sell substantially all of the business
and operations of BCM to a company majority-owned by funds under
the management of Putnam Lovell NBF Private Equity.  The
agreement is subject to certain conditions, including receipt of
sufficient consents from clients of BCM to the assignment of
their investment management contracts to the acquiror.  The
purchase price consists of $7.75 million in cash to be paid at
closing subject to certain adjustments; and a further $1.0
million cash installment to be paid on December 31, 2003 subject
to certain adjustments.  In addition, up to $1.25 million of
earn-out payments will be paid by the buyer to the Group ratably
over the four quarters of 2004 if revenues received in 2003 from
a new product planned for launch by BCM in 2003 exceed certain
defined targets.  The definitive agreement is binding on both
companies and is subject to regulatory approvals and other
conditions.  As of December 31, 2002, BCM's assets under
management were approximately $1.2 billion.

Berkeley International Capital Corporation ('BICC') arranges
private equity placements into rapidly growing technology
companies.  Placement and management activity fell significantly
in 2002 due to depressed conditions and the loss of management
control at LPLA.  The most significant public technology stocks
held by Group operating companies at the end of the year were
Packeteer (1,662,069 shares valued at $11.4 million) and New
Focus (650,000 shares valued at $2.5 million).  Some of these
equity positions were sold after the end of the year to reduce
the Group's bank loan and to reduce the equity risk in LPAL.  The
remaining significant equity holding in the Group at February 28,
2003 was Packeteer (1,362,069 shares valued at $12.3 million).

The Group entered into a revised bank facility with Bank of
Scotland in December 2002 following the breach of certain
financial covenants at the end of the second and third quarters
of 2002.  The revised bank facility requires the Group to repay
all outstanding amounts under the facility during 2003.  In 2002,
the Group repaid $30.0 million to the bank in permanent reduction
of the facility down to $20.0 million, which includes $10.6
million in the form of guarantees provided on behalf of former
investee companies.  These guarantees are reflected in the
liabilities of the Group and other-than-temporary impairments on
the investments are reflected against the potential amounts
recoverable from the investee companies.  The Group is
considering various strategic options to raise cash to repay the
loan as well as utilizing its liquid resources.  Subsequent to
December 31, 2002, the bank facility has been reduced to $15.2
million by applying proceeds from sales of listed equities.  The
net proceeds from the sale of BCM will be used to reduce the
facility further.

Venture capital is the foundation of the company.  Over the past
23 years, BICC arranged over $1.9 billion of placements in the
private capital markets on behalf of Group companies and clients.
These placements included investments in America Online, Oracle
Corporation, Cadence Design Systems, Inc., Cypress Semiconductor,
Inc. and Packeteer, Inc.  The market environment for venture
capital has been very weak but there will be opportunities in
future.  The Group will be seeking shareholder approval to change
its name back to Berkeley Technology Limited, which was the name
of the Group in 1985 when it first became a public company on the
London Stock Exchange.

The Group's 2002 annual report will be sent to shareholders
during April.  Copies of this report may be obtained from the
Company Secretary at the registered office in Jersey, Channel
Islands.

Form 10-K for the year ended December 31, 2002

A copy of the above document will be submitted to the U.K.
Listing Authority by March 21, 2003, and will be available for
inspection at the U.K. Listing Authority's Document Viewing
Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Phone: 020 7676 1000

To See Financial Statements:
http://bankrupt.com/misc/London_Pacific.htm

CONTACT:  LONDON PACIFIC GROUP LIMITED
          Minden House
          6 Minden Place, St Helier
          Jersey
          JE2 4WQ
          Channel Islands
          Phone: (01534) 607700
          Fax: (01534) 607799
          E-mail : ir@londonpacific.com
          Ian Whitehead, Chief Financial Officer
          Phone: (0)1534 607700


MYTRAVEL GROUP: Issues Annual General Meeting Statement
-------------------------------------------------------
-- 500,000 fewer UK summer holidays left to sell than at same
point last year.

-- Group winter bookings 4% behind last year, in line with
capacity reduction.

-- Group summer bookings 3% ahead of prior year on an 8%
reduction in capacity.

          Bookings        Capacity           Price
Group
Winter      -4%             -4%              +3%
Summer      +3%             -8%              +1%

UK
Winter     -7%              -7%             -2%
Summer     +7%              -11%             -

Northern Europe
Winter    -10%              -10%            +2%
Summer    -11%               -8%            +4%

Germany
Winter     +3%                -             -1%
Summer     +2%               +21%           +3%

North America
Charter - Winter
          +17%              +19%           +15%
Charter - Summer
          -1%               +2%             +8%
Cruise distribution
          +3%               n/a             -9%
Auto distribution
         +38%                    n/a                 -25%


At the Annual General Meeting in Manchester on Thursday, Peter
McHugh, Chief Executive of MyTravel Group plc, said:

"With the Iraq crisis developing on a daily basis, this is
clearly a very difficult time for the industry.  However, the
Board of MyTravel are taking the necessary actions to respond to
the situation.  It is encouraging that despite current market
conditions, the Group's cumulative summer 2003 bookings are still
3% ahead of last year and in the UK, 7% ahead of last year.  We
have reduced our summer 2003 charter capacity by 8% on a Group
basis and by 11% in the UK and as previously announced,
implemented a number of significant cost saving measures.

"Since our preliminary announcement in November, trading has been
difficult and in recent weeks bookings have deteriorated.
Current conditions make it difficult to comment with any
certainty on the outlook for the rest of the year."

Eric Sanderson, Chairman of MyTravel Group plc, said

"We recognise that the Group's performance last year was
unacceptable.  We have taken and will continue to take the steps
necessary to return the company to financial health."

STRATEGIC REVIEW UPDATE

When we announced in November we would undertake a full review of
the business we had two goals:  first, to enable the new
management team to understand completely the risks and the
opportunities within the Group, and second, to establish a
strengthened business structure with a sound rationale for the
refinancing of the Group.

The leisure travel industry has had tremendous growth in the last
decade, however, the growth in our own business, which has been
achieved largely through acquisitions, has had a high cost: it
has exposed the Group to increased risks and has resulted in
poorer returns, particularly within our UK operations.  The
vertical integration that our business model required has left us
with relatively inflexible assets-planes, cruise ships, hotels
and retail stores.  As a consequence, we have an increased fixed
cost base - which reduces our flexibility to respond in a fragile
economic environment.

Our growth has been primarily supply driven as we sought to fill
the assets we had secured, rather than demand led by customer
desires.  Too often, this left us exposed to the pricing in the
lates market which diminished our margins.

The rapid growth that we experienced had additional undesirable
side effects - overheads grew too far and too fast, the increased
complexity of the business strained our organisational and
management capabilities and exposed inadequacies.  Strategic
decisions were taken that, with hindsight, have drained both cash
and profits and left the Group with an unacceptable level of
gearing.

While these factors are the primary cause of our current
situation, the poor economic and trading environment post
September 11 have magnified our weaknesses.

The turnaround of this business will be driven by significantly
reducing the risk we are exposed to and by generating better
returns from our assets.  The actions we must take to achieve
this fall under three principal strategic directives.

First, we must reduce the proportion of our costs that are fixed.
This will come from reducing our commitments to guaranteed
accommodation and by targeting and achieving significant
reductions in our administrative and other overhead costs.  We
have already taken steps to reduce our administrative and
overhead costs in this financial year in an effort to protect our
profit position and we are targeting a further significant
reduction in 2004.  Unfortunately, after reviewing all the
alternatives, some of these savings, necessarily, result from
redundancies.  We are well aware that our most important assets
are our people, that they deserve our loyalty and support, that
they are the foundation of our past success and the hope for our
future accomplishments.

There have been reports that we are planning to dramatically
reduce the size of our retail portfolio in the UK and close up to
260 Going Places stores.  For the record, this is not true, we
have no plans for significant retail store closures.  The size of
our retail estate is not static, we do however recognize that our
retail outlets are the route to our customers.

Second, we must improve the utilisation of our assets.  By
focusing our business on making our own assets work harder and by
reducing our use of certain third party assets, we will improve
the returns we generate.  For example, we need to increase the
number of flying hours of our own planes, and achieve greater
utilization of guaranteed beds. Detailed plans, in all pertinent
areas, are being formulated to achieve this.

The third effort is to restructure our UK charter and
distribution businesses to maximise their profit potential.  This
will involve changing the product offering to match demand more
closely and ensuring that the business is managed for margin and
profit, rather than for volume or market share. We are also
upgrading the management information systems and improving the
management skill set.

We will refocus our energies on the core principle that was the
cornerstone of David Crossland's original success:  Operate the
business every day with a strong, clear trading mentality.
Somehow, in the expansion and development of new business lines,
this critical directive was lost.  It has now been found.

In addition to these changes, we will eliminate, or sell, non-
core and loss making operations.  The sale of the Leger coach
business took place in December and we have since disposed of two
small city break operations.  After receiving unsolicited
inquiries about Cresta, we explored the possibility of selling
that business.  However, while we received several offers, we did
not feel that the price offered justified selling this profitable
business.  Even in this difficult economic climate, we are not
prepared to sell any assets at less than fair value.  For the
time being, we have taken Cresta off the market.

While we continue to explore the possibility of selling some
small, non-core assets, we are not planning further disposals of
major assets in the near term.

Unsolicited offers do come to us, and when they are serious and
substantive, it is only prudent that we consider them.

As we announced in November, we are working towards longer term
refinancing of the business to establish a more secure future.
We are confident that the outcome of the strategic review will
provide a sound basis for the refinancing.

Our strategic review is on track and its completion will be an
important milestone in this process.

SETTLEMENTS TO FORMER BOARD MEMBERS

Following the recent changes to the Board it is appropriate to
report the value of settlements that were agreed with the
departing management.

Tim Byrne, formerly Chief Executive, will receive a settlement
worth approximately GBP1.2 million.  David Jardine, formerly
Finance Director, will receive a settlement worth approximately
GBP840,000.  Richard Carrick, formerly Chief Executive of our
Development Division will receive a settlement worth
approximately GBP630,000.  These amounts were agreed in the light
of the very clear legal advice that these negotiated settlements
resulted in a better outcome for the Company than was likely to
be achieved through a process of protracted litigation.  In the
future, contracts for Executive Board Members will be entered
into on notice terms of no longer than twelve months.  This isthe
basis upon which Kazia Kantor has assumed her role as Finance
Director and Peter McHugh's contract will reduce to a 12 month
notice period from October 2004.

For the avoidance of doubt David Crossland received no
compensation on his retirement.

NON-EXECUTIVE DIRECTORS

We place great importance on good governance procedures and it is
our intention to increase the number of Non-Executive Directors,
to improve the balance of the Board.  We have instituted a
thorough process through consultants to find two
new Non-Executive Directors, one of whom will be appointed
Chairman of the Audit Committee.  The process is well advanced
and announcements will be made once it is concluded.  Over the
course of the next few months we will carefully review our
governance procedures and expect to nominate one of the Non-
Executive Directors as the senior independent director.

CLAIM FOR DAMAGES AGAINST EUROPEAN COMMISSION

We are announcing today that we intend to make a claim to the
Court of First Instance for an award of damages against the
European Commission for the unlawful prohibition of our bid, in
1999, to acquire First Choice Holidays PLC.

The amount of any damages awarded will be for the European Court
to decide.  The figure we will claim will be substantial but the
European Court proceedings are likely to take several years
before any judgment is given or damages awarded.
The Court papers will be filed within the next few weeks.

TRADING UPDATE

The uncertainty over the conflict in Iraq, together with fears of
terrorist attacks within our departure countries, have
significantly affected our customer bookings during what is
normally, particularly for the U.K., a peak booking period.  Our
Group winter 2002/3 charter bookings are 4% behind the prior year
level on a capacity reduction of 4%, while our Group summer 2003
charter bookings are 3% ahead of prior year on a capacity
reduction of 8% with average selling prices ahead for both
seasons.  The strength in the summer numbers is due, in large
part, to the high level of forward bookings that were taken in
the U.K during August and September of last year.

In the U.K., cumulative winter bookings are 7% behind the prior
year with capacity also down 7%.  Prices are down 2%.  Even
though our summer U.K. charter capacity is down by 11%, bookings
are 7% ahead of last year with prices in line.  As a result of
these bookings and the reduction in capacity we have already
made, there are half a million fewer summer holidays in the U.K.
left to sell than at this time last year.

In Northern Europe, for both winter and summer, the lower
bookings reflect the reduced capacity on sale in these markets
with prices ahead of the prior year.

In Germany, bookings for winter are 3% ahead on the same capacity
as last year, with prices slightly down.  For the summer season
bookings in this market are 2% ahead on capacity that has been
increased by 21%.  Selling prices are up 3%.

In North America, the winter charter market has been positive
with bookings up 17% and selling prices 15% ahead.  Early
bookings for summer are 1% behind the prior year with selling
prices up 8%.  Our principal distribution businesses in the US
are also holding their own with cruise bookings 3% ahead and car
rental bookings 38% ahead.  The volume growth within car rental
is being driven by the successful implementation of the Auto
Europe business model in the U.K.

Since our preliminary announcement in November, trading has been
difficult and in recent weeks bookings have deteriorated.
Current conditions make it difficult to comment with any
certainty on the outlook for the rest of the year.

CONTACT:  MYTRAVEL GROUP  PLC
          Phone: 0161 232 6523
          Contact: Peter McHugh, Chief Executive

          BRUNSWICK
          Phone: 020 7404 5959
          Fiona Antcliffe
          Sophie Fitton


MYTRAVEL GROUP: General Meeting Approves Management Changes
-----------------------------------------------------------
The Board of MyTravel Group plc announces that at the Annual
General Meeting held Thursday at 11.00hrs, each of the
resolutions contained in the Notice of Annual General Meeting
dated February 17, 2003 was passed by the appropriate majority.

Accordingly, the Report and Accounts were received, each of the
directors submitted for reelection was reappointed, Deloitte &
Touche were re-appointed as auditors, the directors were
authorized to allot relevant securities, the limited
disapplication of statutory pre-emption rights was approved and
the amendments to the Company's Articles of Association referred
to in the Notice of Annual General Meeting were approved.

As previously announced, Mr Mike Lee stepped down from the Board.

CONTACT:  MyTravel Group plc
          Greg McMahon
          Phone: 0161 232 6515


ROYAL MAIL: Agrees to Revised Proposal of Mail Regulator
--------------------------------------------------------
Royal Mail agreed to Postcomm's revised proposal that will give
the courier the ability to raise prices by a penny on both first
and second-class postage.

Yesterday, a spokesman that confirmed Royal Mail's acceptance of
the plan said: "We now believe we have got a price control that
works."

With the development, the management now hopes that it could
finally exercise its recovery plan.

The firm is currently cutting jobs and trying to make its system
more efficient to prepare for the entrance of competitors Hays
Business Post and TPG in the monopoly market.

Royal Mail still has to reach agreement with the regulator on the
price at which rival firms could access the courier's "final
mile" delivery network, as required by its license.

The spokesman considers this step more crucial than the price
control.

The acceptance of the terms of the plan coincided with the
Department of Trade's move to look for a replacement for Graham
Corbett as the head of Postcomm.

Mr. Corbett was the author of the opposed original proposal to
cap Royal Mail's prices in return for a penny increase on both
first and second-class stamps.

Denying any relation to the department's move, the spokesman
said: "It's a coincidence that they were announced on the same
day. We've said a few things that were critical of Postcomm but
that was about policy and input, not about the individual per se.

Mr. Corbett will remain in his post for up to a year until a
replacement is found.



SRS TECHNOLOGY: Increases Losses to GBP776,000, to Raise Funds
--------------------------------------------------------------
SRS Technology Group Plc, which develops, markets and sells a
range of personal electronic environmental control devices to the
disabled and elderly markets, is pleased to announce its Interim
Results for the period ended December 31, 2002.

Business Review:

-- Sales growing; Current quarter sales expected to exceed
GBP200,000 (2002: GBP107,000)
-- Approximately 190 SRS 100 systems sold to date
-- Accepted on contract by NHS Wales
-- Pride Mobility launched SRS 100 in February 2003; initial
orders worth $80,000 (USD) supplied; reported first in-market
sale.
-- Reached agreement with Tunstall to resell each others'
products and commence market test
-- Collaborating with Motorola on developing the SRS Mobile Phone
kit
-- Successful collaboration with Patientline
-- Reseller agreement signed with Picomed in Norway

Financial Review:

-- Turnover increased to GBP238,000 (2001: GBP86,000)
-- Cash position of GBP1m as at 31st December 2002
-- Losses contained at GBP776,000 (2001: GBP678,000)
-- Cost re-structure program implemented
-- Company raising funds to provide on going working capital

Chief Executive, Jurek Sikorski, said:

'Despite the difficult market conditions, sales are growing
throughout the UK and are starting both in Europe and the US. We
have several exciting collaborations with major international
corporations to accelerate sales growth.

2003 has started with record sales, on which we are determined to
build in the coming period.'

Chairman's Statement

There has been demonstrable progress at SRS over the past six
months. Sales are growing strongly, and our channels to market
are increasing. Order levels continue to rise and turnover for
the period has increased by 280% over the same period last year.

Sales of the SRS 100, our environmental control system for the
physically disabled, are now achieving fast growth to the NHS in
England and Scotland, where we have been on contract for the last
18 months. We have achieved contract status with the NHS in
Wales, commencing next month. We are in talks to agree an annual
purchase volume, and expect further commitments going forward.

Our sales strategy is to sell directly to the NHS in the UK and
through distributors to the elderly and private markets in the UK
and all sectors overseas.

An exciting development to this end includes the signing of an
initial agreement with Tunstall, Europe's leading manufacturer
and provider of personal and home reassurance solutions and
response centre systems. SRS will sell Tunstall products to the
NHS/Social Services for the disabled and Tunstall will target the
market for the elderly through local authorities and housing
associations with the SRS 100 and later the SRS Lite. We believe
that there is potentially a very large market available to us
through this agreement.

We are also collaborating with Motorola for the development of a
mobile telephone for the elderly and disabled that can be
operated using the SRS 100.

We expect to launch the SRS Mobile Phone Kit by the middle of
this year. The kit comprises the popular 280i handset with a
cable connection.  A wireless version will be available at a
later date. SRS and its distributors will be marketing these
products to the elderly and disabled with Motorola promoting the
solution to its customers.

SRS has successfully completed a collaboration with Patientline,
a leading supplier of bedside communication and entertainment
systems to the NHS to enable the SRS 100 to operate the
Patientline T2 entertainment and communication system, which is
now being promoted by SRS to spinal injury centres and hospital
departments throughout the UK.

Last year, we announced the appointment of Pride Mobility in the
US, to target the US market, the largest in the world. Sales to
Pride to date have been $80k and since the launch in February
Pride have already made sales to several of its customers.  While
sales have been slower than anticipated, the ground work has now
been laid, with a successful market preview and the establishment
of Q controls, a new division of Pride set up to sell SRS
products.  Strong sales can be expected in this market in the
coming year. In addition to selling through dealers, Pride will
also be targeting the SRS100 system direct to rehabilitation
centres, acute care hospitals, and especially the Veteran
Association Hospitals, where market research has determined the
greatest sales opportunities.

Sales in the European market have also been slower to materialise
than anticipated, due to the requirement to agree tariff rates
with insurance companies. However, many of our reseller
agreements are now seeing orders coming through including Otto
Bock in Italy which has now placed the first stock in order, rdg
Kompagne in Holland and Incap in Germany. We have also signed a
new reseller agreement with Picomed in Norway.

Sales growth over the coming six months will be driven primarily
by the UK, first volume sales in North America and Europe and the
agreements with Tunstall and Motorola.

Development of key products, the SRS Lite and SRS Intellec is
progressing to plan. The SRS Lite is to be previewed at the major
trade show, the Naidex Exhibition at the NEC, Birmingham in May
2003.

At the end of the period, we commenced fundraising activities for
our future working capital needs. These are proceeding. At the
same time, we are reducing our operating costs significantly, in
particular employee related and external advisors' costs to
ensure our cash reserves are sufficient through 2003.

David W Gration
Chairman
20 March 2003

To See Financial Statements:
http://bankrupt.com/misc/SRSTechnology.htm

CONTACT:  SRS TEHCNOLOGY
          Head & Registered Office
          Unit 105
          Brickyard Road
          Aldridge, West Midlands
          WS9 8SX
          United Kingdom
          Phone: (01922) 456 882
          Fax: (01922) 456 883
          E-mail : enquiries@srstechnology.co.uk
          Contact:
          Jurek Sikorski, Chief Executive Officer

          Tim Anderson / Rebecca Skye Dietrich
          Buchanan Communications
          Phone: 020 7466 5000


ZYZYGY PLC: Resumes Trading Following Nomination of Adviser
-----------------------------------------------------------
Trading in the shares of cable and satellite company, Zyzygy Plc,
continued Thursday on AIM following the appointment of John East
& Partners Ltd. as the company's nominated adviser.

In February Zyzygy's trading was temporarily suspended after the
resignation of the company's adviser, Deloitte & Touche.

During that time, Zyzygy said it was in advanced negotiations
with a third party to recapitalize and refinance the company,
which has extremely limited cash reserves and is seeking further
investment to meet current and ongoing liabilities.

The appointment of the new nominated adviser was part of the
negotiations.

CONTACT:  ZYZYGY PLC
          Swiss Centre 6th Floor,
          10 Wardour St,
          London,
          W1D 6QF,
          United Kingdom
          Phone: (020) 7758 3200.
          Fax: (020) 7758 3240

          JOHN EAST & PARTNERS LIMITED
          Crystal Gate, 28-30 Worship Street
          London EC2A 2AH
          Contact:
          John East
          Phone: 020 -628 2200


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

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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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