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

                             E U R O P E

                 Thursday, May 15, 2003, Vol. 4, No. 95


                              Headlines

* F R A N C E *

ALCATEL: Confirms Divestment of Optical Components Business
ALSTOM SA: Three Former Executives Put in Police Custody
VIVENDI UNIVERSAL: Extends Debt Maturity, Ups Credit Facilities
VIVENDI UNIVERSAL: Announces Sale of Operations in Hungary

* G E R M A N Y *

AMB GENERALI: Head Says Positive Results Becoming Perceptible
BASLER AG: Reduced Loss Shows Positive Trend Continues in 2003
BERTELSMANN AG: Sells BertelsmannSpringer to Cinven and Candover
COMMERZBANK AG: Hostile Takeover Seen Unlikely in Medium Term
GRUNDIG: Grundig Austria, Vertriebs File for Bankruptcy
HVB GROUP: Successfully Achieved Turnaround in First Quarter
LION BIOSCIENCE: To Reduce Workforce Further to Cut Costs
LION BIOSCIENCE: Meets Revenue Aim, Cash Reserves Defy Forecast
MAN GROUP: Interim Report Shows Return to Positive Earnings
MOBILCOM AG: Unloads UMTS infrastructure to Royal KPN's Unit
NET AG: Reports Fast Growing Turnover and Improved Results
PANDATEL AG: Responds to Structural Change, Q1 Not Satisfactory
PROSIEBENSAT.1: Group Finds Advertising Market Bottoming Out
WEDECO AG: Decreases Consolidated Revenue by 11% to EUR24.8 MM

* I T A L Y *

FIAT SPA: Reports Operating Loss of EUR342 MM for the Quarter
TELECOM ITALIA: Reaches Deal for Integrating Is TIM in Turkey

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

MILLICOM INTERNATIONAL: Corporate Credit Rating Lowered to 'SD'

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

KONINKLIJKE AHOLD: Issues Address of Chairman to Shareholders
KONINKLIJKE AHOLD: U.S. Foodservice Chief Executive Resigns
KONINKLIJKE AHOLD: Extends Deadline for 2002 Annual Accounts
UNITED PAN-EUROPE: Proposes to Buy Back Part of Share Capital

* N O R W A Y *

PETROLEUM GEO-SERVICES: Announces 1st Quarter 2003 Results

* P O L A N D *

NETIA HOLDINGS: Discloses Costs of Series I, II and III Notes

* S W E D E N *

INTENTIA INTERNATIONAL: Proposes Repurchasing Convertible Notes
INTENTIA INTERNATIONAL Calls Extra General Shareholders' Meeting

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

SAS GROUP: Issues Interim Report for January to March 2003

* U N I T E D   K I N G D O M *

AMP LTD: Ratings Down, Removed From CreditWatch, Outlook Neg
AQUILA INC.: Continues to Deliver on Its Restructuring Plan
BAE SYSTEMS: Fitch Affirms Ratings, Off Rating Watch Negative
BIG FOOD: Chief Executive Dismisses Criticisms of Shareholder
BLYTH & BLYTH: Collapse of Pension Fund Scheme Under Inquiry
EMI GROUP: Appoints David J. Londoner as Non-Executive Director
GLAXOSMITHKLINE PLC: Executive Pay Policy Under Attack From TUC
HAWTIN PLC: Fitness Equipment Manufacturing Business for Sale
MACFARLANE GROUP: Issues Statement of Chairman Sir John Ward
MARCONI PLC: Confirms Currency Election on New Senior Notes
SPICES FINANCE: Fitch Downgrades Series 2 (Peas) to 'CC'


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


ALCATEL: Confirms Divestment of Optical Components Business
-----------------------------------------------------------
Alcatel announced Tuesday that it has entered into a binding
agreement to divest its optical components business to Avanex
(Nasdaq: AVNX) in a stock for stock transaction. This business
will include key operations based in Nozay, France and
Livingston, UK. As part of this transaction, Avanex is also
acquiring certain assets of Corning's (NYSE: GLW) photonics
activities. Alcatel will hold 28% of the combined entity.

"With this agreement, we are contributing Alcatel Optronics'
outstanding technical expertise to an enlarged and credible
partner that will support our optical networking activities,
which are key to Alcatel. We have secured the future for Alcatel
Optronics, in line with our strategy announced at the beginning
of the year to find an alternative solution for our optical
components business. As a result of this transaction, Avanex will
hold a leadership position, providing leading edge technologies
to a broad customer base, and will be able to achieve synergies
and economies of scale that will allow it to remain competitive
in today's landscape," said Christian Reinaudo, Executive Vice
President of Alcatel.

The combined transaction is valued at approximately $ 63.5
million based on Avanex May 9 2003 closing price of 1.12 dollar
per share. Alcatel will retain 28% of Avanex post issuance share
capital. Alcatel Optronics will bring a cash contribution of
approximately $ 110 million, the majority of which will pertain
to restructuring, to be finalized at closing. Avanex and Alcatel
have also entered into a supply agreement wherein Avanex will
provide solutions for Alcatel's optical networking products over
a three-year period. This transaction, which will be presented to
Alcatel employees' representatives, is subject to the approval of
Avanex shareholders and to customary regulatory approvals and is
expected to close by September 30, 2003.

About Alcatel
Alcatel provides end-to-end communications solutions, enabling
carriers, service providers and enterprises to deliver contents
to any type of user, anywhere in the world. Leveraging its long-
term leadership in telecommunications networks equipment as well
as its expertise in innovative applications and network services,
Alcatel enables its customers to focus on optimizing their
service offerings and revenue streams. With sales of EURO 16.5
billion in 2002, Alcatel operates in more than 130 countries.

                     *****

Alcatel recently posted a net loss of EUR1.119 billion for the
fourth quarter.  Alcatel Optronics also reported a net loss of
EUR115.5 million.


ALSTOM SA: Three Former Executives Put in Police Custody
--------------------------------------------------------
Three former executives of French engineering group Alstom SA
have been put in police custody as part of a judicial
investigation into a property deal in 1994, the U.K.'s Financial
Times said.

Former chairman Pierre Bilger and two other unnamed former
executives were put in custody at the request of investigating
judge Philippe Courroye.

Mr. Courroye, one of France's best known investigating
magistrates, is looking into allegations of illegal commissions
paid as part of the construction of a new headquarters in the
Paris suburb of Seine-Saint-Denis for Alstom's transport
division.

TCR-EU yesterday cited Dow Jones Newswires judicial sources
saying the secret commissions included in the 1994 real estate
operation were worth several million euros.

Meanwhile, Financial Times said Alstom declined to comment on the
judicial proceedings against its three former executives, but
confirmed that its headquarters were raided this week by the
French fraud squad.

The troubled company is scheduled to announce delayed full-year
results on Wednesday, which is expected to see a net loss of
EUR1.3 billion-EUR1.4 billion (US$1.5 billion-US$1.6 billion) due
to heavy restructuring charges.

It is noted that Mr Bilger, 62, stepped down early as chairman in
January to be replaced by Patrick Kron.

Alstom is currently disposing assets to offset the expected
EUR1.3 billion loss in the year to March 2003.  It was able to
secure credit lines of EUR1 billion to stave off a crisis in the
short term, but it is reliant on the capital increase working.

CONTACT:  ALSTOM S.A.
          G. Tourvieille/M. Dowd
          Phone: +33 1 47 55 23 15
          E-mail: internet.press@chq.alstom.com

          Investor relations
          E. Rocolle-Teyssier
          Phone: +33 1 47 55 25 78
          E-mail: investor.relations@chq.alstom.com


VIVENDI UNIVERSAL: Extends Debt Maturity, Ups Credit Facilities
---------------------------------------------------------------
Vivendi Universal announced that it has signed a three-year E2.5
billion bank facility, for which a Memorandum of Understanding
was signed on March 17, 2003.

The facility is comprised of two tranches:

-- Tranche A: Three-year E1.5 billion revolving credit facility
at Euribor plus an annual margin based on Vivendi Universal's
ratings. The margin over Euribor will range from 2.75% (B+/B1 our
current rating) to 1.00% (BBB/Baa2 or higher).

-- Tranche B: E1.0 billion term loan with a 2.75% margin over
Euribor.

The signature of this facility allows Vivendi Universal to make
full use of the E1.2 billion raised by the private placement of
its seven-year high-yield notes, carried out on April 3, 2003.
The release of these funds by the receiver to which they had been
assigned was subject to the final establishment of this bank
facility.

Vivendi Universal now has available additional facilities of E3.7
billion, with a maturity of three years for the bank debt and
seven years for the high-yield notes. These funds will
principally be used to reimburse or cancel E2.5 billion of
facilities with maturity dates extending to the end of 2004 at
the latest: E1.5 billion of bank debt with less than one year to
be repaid and an unused

E1 billion credit facility (E500 million due at end of 2003 due
at the end of 2003 and E500 million due at the end of 2004) to be
cancelled.

The two transactions enable the company to significantly extend
the average maturity of its economic debt and to increase its
credit facilities by E1.2 billion.

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations:
          Paris
          Daniel Scolan
          Phone: +33 (1) 71.71.3291
          Laurence Daniel
          Phone: +33 (1) 71.71.1233
          or
          New York
          Eileen McLaughlin
          Phone: 212/572-8961


VIVENDI UNIVERSAL: Announces Sale of Operations in Hungary
----------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE:V) announced the
conclusion of an agreement on the disposal of its fixed-line
telephony activities in Hungary (Vivendi Telecom Hungary) to a
consortium led by AIG Emerging Europe Infrastructure Fund and GMT
Communications Partners Ltd.

The amount of the transaction is EUR325 million in enterprise
value. It will immediately lower Vivendi Universal's debt by
EUR315 million.

                     *****

Vivendi Universal targets to dispose a large chunk of its assets
to raise EUR7 billion (US$7.8 billion) by the end of the year.
Proceeds of the sales will go down to paring the group's EUR11
billion debt.

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations
          Paris
          Daniel Scolan
          Phone: +33 (1).71.71.3291
          Laurence Daniel
          Phone: +33 (1).71.71.1233
          or
          New York
          Eileen McLaughlin
          Phone: +(1) 212.572.8961


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


AMB GENERALI: Head Says Positive Results Becoming Perceptible
-------------------------------------------------------------
-- First quarter 2003: positive pre-tax result/combined ratio
notably reduced/fitness program is showing effect

In the first quarter 2003, AMB Generali Holding AG reached a
notable upward tendency in its business operations. The pre-tax
Group result increased to euro 148 m (preceding year's quarter:
67 m). That positive result, however, is substantially strained
by extraordinarily high tax burdens currently to be expected as a
result of write-downs and realized capital losses on equities not
being tax deductible. The result after tax therefore amounts to
euro - 87 m (preceding year's quarter: euro 56 m). "AMB Generali
has overcome the bottom", stated the Group's Chief Executive Dr.
Walter ThieBen. "Our fitness program is showing effect. The first
positive results are becoming perceptible."

Among the good news is an operative improvement of the combined
ratio by close to 5 percentage points. Also the planned reduction
by 1,250 full-time job equivalents in administrative services all
over Germany by 2005 is making good headway. By the end of the
first quarter 2003 about 290 jobs had already been cut.

Issuer's information/explanatory remarks concerning this ad-hoc-
announcement:

The fitness program initiated also includes the pruning of motor
business and the withdrawal from unprofitable industrial
business. In both areas the development is proceeding as planned.
In industrial insurance more than 4,000 contracts with a premium
volume of close to euro 50 m have been cancelled since autumn
2002. Another 3,500 contracts will be cancelled by year-end. This
targeted pruning is the decisive factor for the decrease of the
total premium income of AMB Generali over all lines of business
by 0.5 percent to euro 3.5 bn in the first quarter. The premium
income in life and health insurance, on the other hand, went up.
In private old-age provision we have further stabilized our
strong market position in the field of the so-called 'Riester'
pension. Since the launch of the product a total number of more
than 630,000 policies has been sold by the life insurers of the
AMB Generali Group.

The investment result of the first quarter was severely strained
by additional price drops on capital markets. The EURO STOXX, for
instance, decreased by 12.5 percent and the DAX by 16 percent.
The AMB Generali Group went on with its strict interpretation of
IAS impairment rules and in addition it reduced its share of
equity investments to about 5 percent as at March 31, 2003.
Mainly as a result of write-downs of euro 536 m on shares,
participating interests and funds units there was a negative
investment income of euro - 259 m (preceding year: 616 m).
Despite further price drops it was possible, as a consequence of
the write-downs, to reduce unrealized losses from shares,
participating interests and investment funds to euro 918 m (Dec.
31, 2002: 1,125 m). On the other hand, interest-bearing
securities experienced a positive development with hidden
reserves amounting to euro 2.18 bn (Dec. 31, 2002: 2.05 bn) which
enabled the AMB Generali Group to increase its hidden reserves in
respect of investments available for sale to about euro 1.3 bn in
the first quarter 2003 (year-end 2002: euro 925 m). As a whole
the prudent write-down policy of the AMB Generali Group leads to
hidden reserves being built up very quickly once
stockmarkets take a positive development. This upward tendency is
already recognizable in the second quarter 2003. In fact, as at
April 30, 2003 unrealized capital losses from shares,
participating interests and fund units improved to euro 408 m.

The described decrease of premium income by 4.1 percent in
property/casualty insurance had been foreseen as a consequence of
the consistent pruning of motor business in all the
property/casualty insurers of the Group and of the withdrawal
from industrial business. A positive feature is the improvement
of the combined ratio from 99.0 percent to 92.3 percent. After
adjustment for extraordinary influences the improvement
represents close to 5 percentage points. This is in line with the
declared target of becoming more profitable in underwriting
business.

The life and health insurers of the AMB Generali Group continue
to steer a growth course. In the first quarter 2003 the total
premiums of the life sub-segment went up by 1.7 percent to euro
1.68 bn. Looking at that figure it has to  be taken into
consideration that in the preceding year's quarter a major
single-premium contract had been concluded. In the health sub-
segment gross premiums written increased by 9.9 percent to euro
337 m mainly due to the very good new business and to premium
adjustments.

Outlook for the result of the business year 2003 as a whole
For the full business year 2003 the AMB Generali Group expects a
premium growth above the market average for its life an health
segment. For the property/casualty insurers, however, the
initiated measures of reorganization will lead to a decrease of
premium income. As a consequence of the persistently pursued
measures of reorganization and cost reduction it is to be assumed
that there will be perceptible improvements in operative business
for 2003 in comparison to the preceding year. The Group result
will still very much depend on the development of capital
markets. Provided there are no extraordinary claims events and no
further capital-market turbulences, the AMB Generali Group
expects to reach a positive pre-tax result.

The complete Group Report for the first quarter 2002 is available
at our website http://www.amb.de,section: share, interim report.


BASLER AG: Reduced Loss Shows Positive Trend Continues in 2003
--------------------------------------------------------------
Basler: Positive Trend Continues in 2003

-- Sales in first quarter up 82% over prior year - 36% surge in
new orders - Net loss of Euro - 0.9 million is an improvement of
69% over the year-earlier loss - Quarterly results confirm
turnaround plans for 2003

Basler AG, a leading company for vision technology, the
technology behind machine vision, posted a significant increase
in sales and new orders in first quarter 2003 compared to the
year-earlier quarter and improved its operating results
accordingly. Individual figures for the quarter:

In Euro mill., Q1/2003, Q1/2002
Sales 6.3/3.5
Order income 8.3/6.1
Gross margin 58%/64%
Operating expenses -4.5/-5.1
Operating result -0.8/-2.9
EBITDA -0.4/-3.2
EBIT -0.7/-2.9
EBT -0.9/-2.8
Net profit/loss for the period (Net margin) -0.9 (-14%)/-2.8 (-
80%)
Loss per share (in Euro) -0,25/-0,80
Cash 1.2/2.0
Capital ratio (economic) 51%/56%
First quarter 2003 simply confirms the Managing Board's plans to
increase sales in 2003 to Euro >30 million (2002: Euro 26.7
million) and thereby post a profit for the year as a whole (2002:
Euro -3.5 million). All the corporate divisions will be
contributing to this sales growth, especially the Vision
Components business (high-performance cameras for industrial
applications). The program of strict cost management will remain
in place to support achieving the earnings objective, while
operating expenses in 2003 are reduced by another approximately
10% as in the previous fiscal year. The biggest share of savings
will be made in the other operating expenses, which will be about
20% less than last year.

The complete quarterly report is available for downloading at
http://www.baslerweb.com

Issuer's information/explanatory remarks concerning this ad-hoc-
announcement:

Basler: Positive Trend Continues in 2003

Both corporate divisions - Vision Systems and Vision Components -
contributed to the increase in sales and improved results in
first quarter 2003.

The Vision Systems division posted sales of Euro 3.8 million
(Q1/2002: Euro 1.8 million, +110%). This major rise in sales
compared to an admittedly very weak year-earlier quarter is
attributable primarily to the continuing excellent demand for DVD
inspection systems within the Optical Media Inspection unit, as
well as to an upswing in business for testing systems for sealing
rings (Sealing Inspection). Vision Systems was even able to
increase its volume of new orders.

In this first quarter Vision Systems has already received orders
valued at Euro 5.6 million, which is a plus of 25% over the
prior-year quarter (Euro 4.5 million). Optical Media Inspection
was mostly responsible for this increase.

Sealing Inspection more than doubled the number of orders thanks
to winning a major contract. And Display Inspection garnered a
number of larger orders. All together Vision Systems posted a net
loss of Euro -0.9 million (Q1/2002: Euro -2.2 million, an
improvement of +58%).

With its high-performance digital cameras, the Vision Components
division continued showing strong increases in sales. This
division generated revenues of Euro 2.5 million in the first
quarter. This is an improvement of 52% over the same quarter a
year ago (Q1/2002: Euro 1.6 million). The gain in new orders was
even bigger, climbing by more than 66% to Euro 2.7 million
(Q1/2002: Euro 1.6 million). Net results were positive for the
first time with earnings of Euro 0.2 million compared to a loss
of Euro 0.4 million in Q1/2002 (+150%). This very satisfying
performance in the components business is predominantly
attributable to Basler increasing its market share despite a
difficult operating environment.

This very favorable trend is expected to continue in light of the
numerous new products set to be introduced on the market this
fiscal year.

Liquidity improved over what was reported in the 2002 financial
statements.

During the past Q1/2003 period, cash and cash equivalents
increased by Euro 0.8 million to Euro 1.2 million (cash as of 31
December 2002: Euro 0.4 million).

Cash and cash equivalents totaled Euro 2.0 million as of the
prior year's reporting date. The economic equity totaled Euro 8.8
million (2002: Euro 9.3 million, Q1/2002: Euro 13.2 million) as
of 31 March 2003 and includes shareholders' equity of Euro 3.3
million (2002: Euro 4.1 million, Q1/2002: Euro 6.3 million),
subordinated shareholder loans (Euro 4.2 million, 2002: Euro 4.1
million, Q1/2002: Euro 4.1 million) and a dormant holding (Euro
1.0 million, 2002: Euro 1.0 million, Q1/2002: Euro 0.0 million).
This equates to an economic capital ratio of 51% (2002: 58%,
Q1/2002: 56%).

With 265 employees as of the reporting date, the staffing level
increased slightly compared to the same quarter a year ago
(Q1/2002: 251, +6%).


The complete quarterly report is available for downloading at
http://www.baslerweb.com

CONTACT: BASLER AG
         Christian Hock,
         Phone: 04102-463175,
         E-mail: christian.hoeck@baslerweb.com


BERTELSMANN AG: Sells BertelsmannSpringer to Cinven and Candover
----------------------------------------------------------------
Bertelsmann is selling the specialist publishing group
BertelsmannSpringer to the private equity firms Cinven and
Candover. Bertelsmann, Cinven and Candover signed a contract to
this effect on Monday.

The debt free purchase price is EUR1.05 billion. Through this
transaction, Candover and Cinven are acquiring one of the world's
most prestigious publishing groups for scientific and academic
literature. The 70 companies that comprise BertelsmannSpringer
publish 700 magazines and more than 4,000 new book releases in
the fields of science, medicine, economics, engineering,
architecture, construction and transport each year. In 2002,
BertelsmannSpringer generated total revenues of EUR731 million
and Operating EBITA of EUR71 million.

The group has operations in 16 countries, with over 5,000
employees. The transaction is subject to antitrust approval. It
remains to be decided whether Candover and Cinven will acquire
BertelsmannSpringer's activities in France, which account for 4.5
percent of total revenues.

Bertelsmann Chairman & CEO Gunter Thielen commented: ''The sale
of BertelsmannSpringer is a logical continuation of our strategy
of concentrating on core businesses. Although this is not an easy
parting for us, we firmly believe that the sale is the right and
necessary thing to do, both for the future of Bertelsmann and for
the future of BertelsmannSpringer. In selling the group, we made
every effort to preserve it as a whole. BertelsmannSpringer's
employees and management deserve a great deal of recognition.
Thanks to their achievements, BertelsmannSpringer commands an
excellent international position, is profitable and is considered
one of the best sources of scientific and academic literature.''

Bertelsmann CFO Siegfried Luther declared: ''This transaction
enhances our financial flexibility and creates the preconditions
for future growth in our key divisions. At the same time, we are
sure that in Cinven and Candover we have found partners who will
make the most of BertelsmannSpringer's potential while continuing
to develop the business.''

Bertelsmann's specialist publishing division was founded in 1953.
In 1999, Bertelsmann took over the majority of the international
science publisher Springer and merged it with Bertelsmann
Specialist Publishing, creating the BertelsmannSpringer division.
Today, BertelsmannSpringer includes publishing companies such as
the Springer science publishing company, Birkh"user, Arzte
Zeitung, Princeton Architectural, Key Curriculum, Platow, Gabler,
Bauverlag, Heinrich Vogel as well as a number of online services
and the electronic service SpringerLink. In 2002,
BertelsmannSpringer contributed 3.9 percent of Bertelsmann's
total revenues.

Cinven and Candover are two of Europe's leading private equity
companies. Cinven was founded in 1977 and has carried out over
EUR40 billion in corporate acquisitions to date. Candover was
founded in 1980. Its transactions to date have a total volume of
more than EUR22 billion. Candover has been traded on the London
stock exchange since 1984. In January 2003, Candover and Cinven
acquired the specialist information group Kluwer Academic
Publishers from the Dutch information group Wolters Kluwer.

About Bertelsmann AG
Bertelsmann is a media and entertainment company that commands
internationally leading positions in the relevant markets. Its
core business is the creation of first-class media content: the
group includes RTL Group, Europe's No.1 in the TV and radio
business, as well as the world's biggest book-publishing group
Random House, with its more than 100 publishers (e.g. Alfred A.
Knopf, Bantam, Siedler Verlag, Goldmann). Europe's biggest
magazine publisher Gruner + Jahr (stern, GEO, Capital, Femme
Actuelle, Family Circle, Parents) and the BMG music group with
its roughly 200 labels (RCA, Arista, Jive, J Records) and artists
including Alicia Keys, Dido and Pink, stand for creativity and
powerful brands. DirectGroup bundles Bertelsmann's direct-to-
customer business: book and music clubs with more than 40 million
members worldwide. The media services provided by the arvato
division include the rapidly growing arvato logistics services
and arvato direct services units (which include distribution,
service centers, and customer loyalty systems), as well as state-
of-the-art printing plants, storage media production and
comprehensive IT services.


COMMERZBANK AG: Hostile Takeover Seen Unlikely in Medium Term
-------------------------------------------------------------
The low share price of Commerzbank is unlikely to invite a
hostile takeover bid in the medium term, a Frankfurt banking
source said.

During the weekend Ex-CEO and head of the Commerzbank's
supervisory board Martin Kohlhaussen confirmed that the bank's
share price doesn't fully reflect Commerzbank's improved earnings
yet, making the Frankfurt-based bank an interesting takeover
target.

Mr. Kohlhaussen said Commberzbank's share price is
"very unsatisfactory" and the danger of a takeover "very big".
However, he clarified that the bank is currently not in talks
with larger rival HVB Group over a possible combination.

But the banking source does not believe Germany's third-largest
bank will attract offers until it fully recovers, according to
Dow Jones.

At 0914 GMT, Commerzbank shares were trading at EUR8.97, up 1.7%.
In March, the shares hit a low for 2003 of EUR5.22.

Commerzbank recently reversed its first annual loss in 2002 with
a net profit of EUR3 million in the first quarter.

Commerzbank declined to comment on the statement of Mr.
Kohlhaussen.

One analyst is wondering why Kohlhaussen would make such comments
since, according to him, little has changed to make Commerzbank
an attractive target.


GRUNDIG: Grundig Austria, Vertriebs File for Bankruptcy
-------------------------------------------------------
On May 2, 2003, Grundig Austria GmbH and Grundig Vertriebs GmbH
filed for insolvency. Those requests have been withdrawn on May
13, 2003. No adequate financing model to resuming production and
generate necessary liquidity for current payments was found
despite most intensive efforts.

Therefore, both companies have filed for bankruptcy. The
possibility of a continuation of activity by an investor showing
a realistic scenario for the future is not excluded thereby. At
the same time, the board of Grundig AG is intensively working on
a long term solution of the investors question and in close
cooperation with the European sales organisations the short term
resuming of production in Vienna.

For legal reasons and as a precaution, the conditions of the
working contracts of all employees have been dismissed and the
unemployment office informed. This measure does not correspond to
termination of working contracts. The aim of all those decisions
is next to satisfying requests of creditors to keep both
companies attractive for investment and secure the existence of
the Grundig corporation.


HVB GROUP: Successfully Achieved Turnaround in First Quarter
------------------------------------------------------------
In the first quarter of 2003, HVB Group succeeded in building on
the positive operational trend seen in the final quarter of 2002.
Compared with the quarterly average of the previous year, it
achieved far better results in almost all earnings components as
well as in loan-loss provisions and general administrative
expenses. The corporate group also managed to forge far ahead of
the comparable quarter of last year, enabling it to report a
positive operating result of EUR 111 million.
At EUR 24 million, net income before taxes was positive again in
the 1. quarter of 2003 after two loss-making quarters. HVB Group
new contributed income of EUR 71 million to this amount, and the
Hypo Real Estate Group to be spun off losses of EUR 45 million.
No tangible gains on disposal have been included in this total.

At EUR 2,564 million, total operating revenues in the 1. quarter
of 2003 exceeded the average quarterly total in 2002 (EUR 2,559
million). Compared with the 1. quarter of  last year, they
declined 7.8%. Within this total, net interest income fell 8.4%
to EUR 1,620 million compared with last year. The main factors
behind this development are the scheduled reduction of risk
assets as part of the transformation program coupled with the
effects of exchange rates and consolidation.

Despite the extremely weak state of the international capital
markets in the 1. quarter, fee and commission activities picked
up at a strong rate in the Germany  segment, helping net
commission income to climb ahead of the total recorded in the
final quarter of 2002. At EUR 673 million, net commission income
was 6.7% less than the equivalent amount at this point last year.
As planned, HVB again recorded a strong trading profit of EUR 241
million in the 1. quarter.

General administrative expenses declined a striking 12.2% to EUR
1,691 million compared with the 1. quarter of 2002. At the same
time, general administrative expenses were far less than the
quarterly average of EUR 1,769 million in 2002. Thus the cost-
income ratio improved to 66.0% from 69.1% at year-end 2002.

HVB expects to record risk provisions of EUR 3,046 million this
year (this already incorporates the loan-loss provisions of the
Hypo Real Estate Group, including the risk guarantee of no more
than EUR 460 million), making for EUR 762 million for the first 3
months (including EUR 115 million of prorated risk guarantee).
This corresponds to a decline of 19.7% compared with the prior
year total.

HVB Group: INCOME STATEMENT FROM JANUARY 1 TO MARCH 31, 2003

in Euro million         Jan 1-Mar 31 Jan 1-Mar 31 Change  Change
                             2003        2002  in m EUR    in %
net interest income         1,620       1,769      (149)   - 8.4
provisions for losses on loans
and advances*                 762         949      (187)  - 19.7
net interest income after provision
for losses on loans and advances
                             858         820         38   + 4.6
net commission income        673         721       (48)   - 6.7
trading profit               241         264       (23)   - 8.7
general administrativ expenses
                           1,691       1,925      (234)  - 12.2
balance of other operating income
and expenses                  30          28          2   + 7.1
operating profit (loss)      111        (92)        203
net income from investments (10)         185      (195)
amortization of goodwill      54          54         --      --
balance of other income
and expenses                 (23)        (28)          5  + 17.9
profit (loss) from ordinary
activities                    24          11         13
taxes on income*              77           9         68
net income (loss)            (53)           2       (55)
minority interest in net
income (loss)*               (24)           7       (31)
net income (loss) adjusted for
minority interest                          (77)           9
(86)
for information:
sum of operating revenues   2,564       2,782      (218)   - 7.8
*) Due to the untypical course of the previous year, we have
estimated provisions for losses on loans and advances on the pro-
rata prior-year figure and thus also adjusted income taxes and
minority interests accordingly.


LION BIOSCIENCE: To Reduce Workforce Further to Cut Costs
---------------------------------------------------------
German company Lion Bioscience AG plans to trim down its
workforce by 15% to counter decline in sales, according to a
person familiar with the matter.'

The job cuts, which will affect 60 people, will be on top of the
190 slashes done in the previous nine months.  Lion had about 400
employees at the beginning of 2003.

The drug discovery software manufacturer reported sales of EUR30
million (US$35 million) for the fiscal year through March.  The
figure is down from EUR40.4 million a year earlier.

Lion's cash in hand fell to EUR72.9 million at the end of March
from EUR74.8 million in December.

``Cash is still short,'' Stefanie Philipp, a biotechnology
analyst at HSBC Trinkaus & Burkhardt, said in a note to investors
last month.

To preserve cash, the company abandoned plans to find its own
drugs last year.  It subsequently cut its target for fiscal 2003
due to the sluggishness of demand for its software.  It also had
to account costs for restructuring and writing down assets.

Lion's stock has lost 30% of its value this year.  But its Chief
Executive Officer Friedrich von Bohlen said the company aims to
break-even in the fourth quarter ending March 2004.

Lion's net loss for the period, including discontinued
operations, was approximately EUR 20 million.


LION BIOSCIENCE: Meets Revenue Aim, Cash Reserves Defy Forecast
---------------------------------------------------------------
-- Significantly Higher-Than-Expected Liquidity Position of EUR
(euros) 72.9 Million; Clear Decline in Operating Costs in Q4
2002/2003

-- Revenue Target of EUR 30 Million Achieved; New Software
Products Contribute to Q4 Revenues

-- Restructuring Measures Accounted for in FY 02/03; Cost Basis
for FY 03/04 Markedly Reduced

-- Positive Outlook: Significant Revenue Rise in FY 03/04 and
Break Even for Q4 FY 03/04 Expected

LION bioscience AG (Nasdaq: LEON), announced its preliminary
results for the fiscal year ended March 31, 2003. The company's
cash and cash equivalent position of EUR 72.9 m significantly
surpassed analysts' expectations of up to EUR 55 m. According to
preliminary figures, the revenue target of around EUR 30 m for
the full fiscal year was reached. LION has announced that the
final phase of its restructuring and integration of the
businesses acquired in previous years will be completed by July
31, 2003. These changes will have a positive effect on the
company's cost structure for the balance of the current fiscal
year. Despite an ongoing unfavorable economic and sector climate,
LION plans to reach revenues of EUR 40 m and break even on
EBITDA-basis in the fourth quarter of the current fiscal year.

Fourth Quarter 2002/2003

In the fourth quarter of FY 2002/2003 LION exceeded expectations
with respect to its operating and financial results. According to
preliminary calculations, revenue was approximately EUR 7.7 m, of
which more than EUR 4 m consisted of new license fees for its
software products. The license fees include revenues from the
first sales of the company's new integration platform - LION
DiscoveryCenter(TM). Operating expenses for the quarter (before
one-time charges, depreciation and amortization) dropped to EUR
14.9 m. This compares favorably with an average of more than EUR
19 m for the first two quarters of FY 2002/2003.

Fourth-quarter results were negatively impacted by one-time
restructuring and business integration costs of previously
acquired businesses. These costs were approximately EUR 6.7 m.
Net loss for the period, including from discontinued operations,
was approximately EUR 20 m.

The low level of cash burn in the fourth quarter (EUR 1.9 m) was
especially encouraging; LION's cash position as of March 31,
2003, stood at EUR 72.9 m. This low cash burn, however, was
somewhat affected by one-time payments.

Fiscal Year 2002/2003

According to preliminary calculations, new licenses, support and
professional services revenue for the full year 2002/2003 was EUR
30 m including revenue from discontinued operations, and EUR 29 m
excluding revenue from discontinued operations. This represents a
decline in total revenues of approximately 25% from the previous
fiscal year. This drop was due to several factors including a
delay in delivering a large project to a customer, a planned
decrease in revenues from the discontinued research activities of
the company, the general economic environment of the life
sciences industry which has caused customers and prospects to
delay purchase decisions, and the currency impact of a weakened
U.S. dollar. New software license fees, on a comparable basis,
declined by EUR 1 m to EUR 14.1 m.

The approximate net loss for the year was EUR 153 m, including
discontinued operations, or approximately EUR 137 m, excluding
discontinued operations. These figures were strongly impacted by
one-time charges, including the write-off of impaired goodwill
from LION's acquisitions of Trega Biosciences and NetGenics,
restructuring and integration costs of these businesses,
additions to provisions and other one-time-items. Without these
one-time charges, LION's adjusted EBIT before discontinued
operations would have stood at approximately EUR -50 m compared
with EUR -48.2 m from the previous fiscal year 2001/2002.

Restructuring and Integration of Acquisitions

In the last quarter LION continued to implement its restructuring
program, primarily by streamlining the organization's various
sites. The plan includes the following steps:

--  Reduction in the number of worldwide employees (full-time
equivalent basis) to approximately 310 (as of July 31, 2003) from
360 (as of March 31, 2003)

--  Consolidation of the two sites in Cleveland and Columbus,
Ohio to Columbus, Ohio by June 30, 2003

--  San Diego, California site to lead the research and
development of LION's ADME technology (iDEA pkEXPRESS(TM))

--  Development for LION Lead Engine(TM) and LION Target
Engine(TM) to be primarily driven from Heidelberg, Germany

--  Worldwide software testing and quality assurance to be done
in new QA labs in Heidelberg, Germany

These steps were taken to ensure that the delivery timelines, key
functionality, and quality required in updated and new LION
software products would be achieved. The goal of these changes is
to streamline and optimize the operational structure, reduce
organizational complexity and concentrate development efforts for
products in individual centers of excellence dedicated to those
technologies. Upon implementation of the measures announced
today, the company expects that its restructuring and integration
process will come to a successful end.

Outlook

For fiscal year 2003/2004, LION is expecting revenue of EUR 40 m.
Sales of the recently introduced LION DiscoveryCenter(TM)
integration platform and of LION's new biology solution - LION
Target Engine(TM), as well as further penetration of the
company's existing products, and new partnerships are expected to
drive that growth. Because of a sales process for new software
products of approximately six months, LION expects revenue in the
first six months of the current fiscal year to remain in line
with the first six months of fiscal year 2002/2003. For the
second half of the fiscal year, the company expects to see a
significant increase in revenue. Revenue from LION's projects
with Bayer AG should also noticeably contribute to revenue
throughout the fiscal year and be approximately the same as in
the previous fiscal year. However Bayer revenues are anticipated
to decrease in proportion to total revenues from approximately
33% of total revenues to approximately 25% of total revenues in
line with the share of revenue derived from these projects with
Bayer. If the US dollar continues to weaken against the euro,
LION's revenue forecast of EUR 40 m could be ambitious as roughly
65% of revenues are expected to come from US dollar denominated
transactions.

In terms of quarterly developments in the current fiscal year,
the first quarter of fiscal year 2003/2004 will still be
negatively impacted by the higher operating costs until the
current restructuring and integration measures are completed at
the end of July 2003. The company expects to continue to reduce
operating expenses into the fourth quarter of the current fiscal
year. LION expects total operating costs for the fiscal year
(including depreciation and amortization expenses) to be
approximately EUR 60 m. The company still expects to break even
on an EBITDA-basis in the fourth quarter of the current fiscal
year. However, LION also anticipates reporting a net loss for the
full fiscal year which is in line with its business plan. At the
end of the current fiscal year, the company expects to have a
cash and cash equivalent position of at least EUR 30m, which is
an increase in the EUR 20 m previously anticipated by the
company.

"We have completed a transition year during which time we
solidified the organization and product strategy, and were able
to meet the revenue targets," said LION CEO Dr. Friedrich von
Bohlen. "Based on our strategy and the strength of our products,
professional services, and people, we are well positioned for the
future. Our employees have done a great job. Now we are ready to
reap the fruits of our labor, deliver new solutions to our
customers and reach profitability. We are on the right track."


Key Preliminary Figures for FY 2002/03
Ending 31 March and Comparables

In million euro                  Q4     Q4     12M      12M
                               02/03e  01/02  02/03e   01/02

Total revenues                  7.7   10.6    29.5     38.8
Total costs and expenses       21.6   24.0    84.1     75.1
Operating results (EBIT)      (16.7) (18.6) (127.2)   (48.2)
Net loss for the period from
continuing operations        (17.8) (20.8) (137.4)   (45.6)
Discontinued operations
(net of tax)                   (2.0)  (2.6)  (15.1)    (9.0)
Net loss for the period after
discontinued operations      (19.8) (23.4) (152.5)   (54.7)
Cash/cash equivalent
end period                    72.9    124.0

About LION bioscience AG

LION bioscience (ISIN: DE0005043509, Reuters: LIOG, Bloomberg:
LIO, Nasdaq: LEON) provides proven information and knowledge
management solutions to significantly improve life science R&D
performance and productivity. LION's performance software
solutions developed by its scientific and IT experts enable
researchers to simultaneously compile and analyze data across
various phases of the R&D process. Research time and costs are
reduced, as scientists are able to identify and focus on the most
promising drug candidates earlier.

LION (http://www.lionbioscience.com)sets the standard for
integration solutions with more than 280 corporate and academic
customers globally including AstraZeneca, Aventis, Bayer,
Boehringer Ingelheim, Celera, DuPont, Eli Lilly, GlaxoSmithKline,
IBM, Incyte, Johnson & Johnson, Merck Inc., Nestle, Novartis,
Schering AG and Sumitomo Pharmaceuticals. LION's solutions
include SRS for bioinformatics data access, iDEA with analysis
and prediction tools for ADME/tox, LION Target Engine(TM) for
target identification and optimization, LION Lead Engine(TM) for
lead identification and optimization, LION DiscoveryCenter(TM)
for biological and chemical data and application integration and
LION SolutionCenter(TM) for professional services.

CONTACT:  LION BIOSCIENCE AG (USA)
          Tracy Coffey
          Phone: 617/245-5433
          E-mail: tracy.coffey@lionbioscience.com
          or
          LION bioscience AG (Europe)
          Frank Lansky
          Phone: +49 (0) 6221-4038 265
          E-mail: frank.lansky@lionbioscience.com
          or
          Guenter Dielmann
          Phone: +49 (0) 6221-4038 249
          E-mail: guenter.dielmann@lionbioscience.com


MAN GROUP: Interim Report Shows Return to Positive Earnings
-----------------------------------------------------------
Return to positive earnings of EUR5 million before interest and
taxes in the first quarter, a traditionally low period for
production and sales, compared with a loss of EUR38 million over
the same period last year. Marked improvement in earnings before
taxes to -EUR31 million (-EUR75 million).

Sales increased by 5% to EUR3.3 billion. Strong rise in sales for
Industrial Services and Industrial Equipment and Facilities,
etback for Printing Machines.

New orders fell by 2% to EUR3.5 billion. Sharp decline in
Germany, currency-adjusted increase abroad. Minus mainly in the
service sector, manufacturing activities in plus.

Gloomier outlook for 2003 compared with budget premises. Demand
expectations continue to weaken in key markets, project decisions
postponed.

Target of sustained improvement in earnings remains unchanged,
but calls for intensified efforts to reduce costs and increase
efficiency.

MAN GROUP

MAN Group           2003        2002        Change
EUR million       Jan.-March   Jan.-March   in %

New Orders         3,465         3,529       -2
Sales              3,269         3,104        5
Earnings before interest
and taxes/EBIT         5           (38)       -
Earnings before
taxes/EBT            (31)          (75)       -
Net profit           (18)          (43)       -
Earnings per
share in EUR       (0.16)        (0.24)       -


Uncertainty depresses economic environment

During the first quarter, the business environment was dominated
by great uncertainty as far as on-going economic developments and
the outcome of the war in Iraq were concerned. In all major
industrial countries, including the US, the rise in production
volumes has slowed in recent months, contrary to earlier
expectations.

The economy was particularly weak in the euro zone, especially in
the capital goods sector. In their spring report, the economic
research institutes significantly reduced the growth forecast for
the gross domestic product in Germany to no more than 0.5% (after
forecasting 1.4% in their autumn report).

Expectations for world economic trends in the coming months
continue to be subdued. Although uncertainty about the
international political situation has subsided following the
quick end to the Iraq war, it is expected that the SARS virus
will noticeably dampen economic recovery, starting in Southeast
Asia, since up until now China has been the main driving force
behind economic growth. Economic development in Europe and the US
is also expected to be more restrained than previously envisaged.

The economic climate in the capital goods sector remains subdued,
with stagnation predicted for the euro zone during the current
year. We do not anticipate any signs of even a slow recovery in
the demand for capital goods until the second half of the year.

Generally stable performance

New orders decreased by 2% to EUR3,465 million. This resulted
from an 8% drop in domestic business to EUR871 million. Foreign
orders reached EUR2,594 million, equivalent to the level of 2002.
After adjustment for currency effects following conversion of
incoming orders received by foreign subsidiaries, this
represented a rise of 3%. The volume of major orders received was
low, mirroring the first quarter of 2002, with investors
postponing major projects in view of the prevailing uncertainty.

Sales of EUR3,269 million exceeded the first quarter of 2002 by
5%. Domestic sales improved by 13% to EUR864 million, while
foreign sales rose by 3% to EUR2,405 million.

Compared with 31 March 2002, order levels fell by 10% to EUR9,662
million, but were 1% higher than at the beginning of the
financial year (EUR9,597 million).

At 31 March 2003, MAN Group employees numbered 74,773, 2.2% fewer
than at 31 March 2002 and 0.4% fewer than at 31 December 2002
(75,054). This decrease was mainly the result of the
restructuring programs currently being implemented at several
locations in Germany and abroad, and will continue throughout
2003.

Marked improvement in earnings

Compared with other quarters, the results of the first quarter
are traditionally weak due to significantly lower production
output and below-average sales. Nevertheless, the MAN Group was
able to record positive earnings before interest and taxes of
EUR5 million, after a loss of EUR38 million in the first quarter
of 2002. In the case of earnings before taxes, it was possible to
considerably reduce last year's loss (EUR75 million) to EUR31
million.

The improvement in earnings was largely attributable to the
Commercial Vehicles Division, which was able to significantly
increase its gross margin as a result of cost savings and report
an overall reduction in losses, with the truck sector again
achieving a positive EBIT. In the absence of further
extraordinary expenses at MAN Technologie or losses in the SMS
Group, as in the previous year, the Industrial Equipment and
Facilities Division was able to generate a positive EBT for the
first quarter of 2003. Lower earnings levels were recorded in the
sectors of Industrial Services and Diesel Engines. Margins
deteriorated in the Printing Machines Division due to falling
volumes and prices, the MAN Roland Group incurring heavy losses.

The MAN Group recorded a net loss of EUR18 million (-EUR43
million). After deduction of minority interests, earnings per
share amounted to -EUR0.16 after -EUR0.24 for the same quarter of
2002.

Finances within target range

The cash flow (according to DVFA/SG) increased from EUR114
million in the comparable period to EUR135 million. The increase
in the amount of committed working capital normally recorded
during the first quarter was considerably lower than in the
previous year, reaching EUR205 million (EUR386 million), so that
it was possible to limit the cash outflow from operating
activities to EUR70 million (EUR272 million).

The cash used in investing activities decreased to EUR63 million
(EUR171 million). The principal reason for this was the reduced
volume of investment in fixed assets after the high level of
expenditure in recent years, and revolving refinancing for leased
equipment. Expenditure on research and development of EUR119
million was also 11% lower than over the same period last year,
but still remained high, amounting to 4.6% of sales generated by
the manufacturing units.

Financing activities resulted in a marginal outflow of EUR10
million compared with a cash inflow from borrowings and sales of
securities of EUR320 million in the previous year. Based on
approximately the same levels of cash and cash equivalents of
EUR466 million (EUR446 million), the negative cash balance of
EUR386 million recorded at 31 March 2003 represented practically
half the EUR760 million reported at 31 March 2002. Throughout the
remainder of this financial year we shall be adhering to our
policy of cautious capital expenditure and continuing our efforts
to reduce current assets.


Consolidated overview of the MAN Group

MAN Group            2003        2002      Change
EUR million       Jan.-March  Jan.-March   in %

New orders           871          946        -8
Germany            2,594        2,583         0
Foreign            3,465        3,529        -2

Sales                864          762        13
Germany            2,405        2,342         3
Foreign            3,269        3,104         5

Orders on hand*    9,662       10,705       -10

Employees
*(number)         48,680       50,051        -3
Germany           26,093       26,443        -1
Foreign           74,773       76,494        -2

Capital expenditure  163          235       -31
of which on tangible and intangible fixed assets
                      70           85       -18
of which on assets leased out
                      86          133       -35
of which on equity intrests & other financial investments
                       7           17       -59

Depreciation on
fixed assets         140          143        -2

Cash flow (according to DVFA/SG)
                     135          114        18

Cash and cash equivalents*
                     466          446         4

Cash balance*       (386)        (760)       49

Research and development
                     119          134       -11

*) Figure at closing date of 31 March 2003 compared with 31 March
2002

Outlook

Up until now, the global economy, and in particular the German
economic environment, have grown even gloomier in the course of
the 2003 financial year and we are unable to escape the impact of
this trend.

We must therefore assume that the markets for trucks and printing
systems will weaken even further in 2003. In spite of positive
steps by the European governments involved with the problems
relating to the ARIANE 5, no follow-up production orders have yet
been placed. Widespread reluctance to make decisions on projects
that have long been in the pipeline has been noted in all areas
of operation. Furthermore, we must be prepared for a decline in
the quality of our returns in view of the lower workload.

In this environment, our target of achieving a sustained
improvement in earnings remains unchanged, but calls for
intensified efforts to reduce costs and increase efficiency.
Measures that have now become indispensable in several areas of
our vehicle-construction activities, especially the bus segment,
and in the printing-press plants, the diesel-engine sector and at
MAN Technologie, will also include additional personnel
adjustments and have already been instigated. The extent to which
the additional costs related to these measures can be offset by
improved earnings in 2003 is difficult to ascertain at the
present time.

Due to this aspect, as well as the uncertainties relating to the
economy and economic policy, it is difficult to predict the level
of annual result.

Shares make strong recovery

During the first four months of the 2003 financial year, both
classes of shares rallied significantly. Over this period, MAN
shares gained over 20%, clearly outperforming the comparable DAX
30 index (2% gain). The closing prices on 30 April 2003 were
EUR16.32 (ordinary shares) and EUR14.00 (preference shares) after
registering EUR13.15 and EUR9.90 on 31 December 2002.

After repurchasing shares in 2001 and the conversion preference
into ordinary shares in 2002, no further capital measures are
currently planned. We shall however be proposing to the Annual
General Meeting on 4 June 2003 that authorisation for the company
to repurchase its own shares be renewed in order to be in a
position to act if necessary.

To see Overview of Development of the divisions and Commercial
Vehicles:
http://bankrupt.com/misc/Overview_Development_divisions.pdf
To See Financial Statements:
http://bankrupt.com/misc/Petroleum_Geo_Services.pdf

In a difficult economic environment, new orders rose by 1% to
EUR1,618 million. Truck operations were able to record a 1%
increase to EUR1,361 million in spite of a 2.7% decline in the
overall market in Western Europe. In the case of omnibuses,
incoming orders of EUR257 million were on a par with the previous
year.

Sales also registered a marginal increase to EUR1,372 million. In
the truck sector, sales improved by 3% to EUR1,151 million, while
buses recorded a 5% drop to EUR221 million.

The number of employees amounted to 34,425 at 31 March 2003, 1%
fewer than at 31 March 2002. As planned, we have substantially
increased our workforces in the companies in Turkey and Poland in
the course of relocating manufacturing capacity in the bus
sector. This has been compensated by reductions elsewhere, mainly
in other manufacturing companies. By the end of the year, a
further drop in the overall workforce is anticipated.

Higher production levels and the impact of the cost-reduction
measures started in the first quarter of 2002 have resulted in
the expected improvement in earnings, in spite of only a slight
rise in sales. Based on the EBIT, which is important for sectoral
comparison, trucks achieved a positive result of EUR2 million
(2002: -EUR22 million) and buses improved from -EUR32 million to
-EUR19 million. Earnings before taxes in the MAN Nutzfahrzeuge
Group amounted to -EUR36 million (2002: -EUR75 million).

Based on the fact that we can now offer a complete range of heavy
vehicles, we are adhering to our goal for 2003 of achieving
volume growth, in spite of the marked decline meanwhile predicted
for the truck market in Western Europe. Based on the already
effective cost-reduction measures and the continuing
restructuring measures in the bus sector, we still anticipate a
strong improvement in earnings before taxes in 2003 (2002: EUR13
million).


Industrial Services

in EURm                     2003        2002       Change in %
January to March

New orders                   431         556          -22
Sales                        559         464           20
Employees *)               6,611       6,738           -2
Earnings before interest
and taxes/EBIT               16          18          -11
Earnings before taxes/EBIT    15          20          -25

Weak domestic demand, delays in the placement of contracts for
larger projects and lower volumes of steel trading in the US, due
partially to currency fluctuations, caused new orders to fall by
22% to EUR431 million. Based on the project situation, we are
however optimistic that in the course of the year, we will
succeed in obtaining several major projects that have been in the
pipeline for some time.

Sales benefited from the good level of incoming orders in
preceding periods, increasing by 20% to EUR559 million.

Pre-tax earnings suffered from losses accruring from contracts in
the DSD Group, declining to EUR15 million. For the full year, we
expect a good result, although lower than the exceptionally high
figure (EUR85 million) recorded last year.

Printing Machines

in EURm               2003     2002    Change in %
January to March

New orders             374      362       3
Sales                  307      376     -18
Employees *)        10,194   10,603      -4
Earnings before interest
and taxes/EBIT         (24)       2       -
Earnings before
taxes/EBIT             (27)       0       -

The market situation in the graphic industry and consequently the
demand for printing systems continues to be extremely
unsatisfactory in the face of a weak economy and lower
expenditure on advertising. Although new orders of EUR374 million
were slightly higher than the previous year, the increase was due
to a few isolated larger contracts for webfed printing presses
(+10% to EUR155 million) and to the distribution and services
business unit (+8% to EUR56 million). In the sheetfed sector,
incoming orders of EUR163 million fell another 4% below the
comparative quarter.

Sales fell by 18% to EUR307 million, of which EUR117 million (-
14%) were generated in the sheetfed sector, EUR138 million (-26%)
by webfed systems and EUR52 million (-2%) by the distribution and
services unit. Overall, this was the weakest quarterly sales
result of recent years.

As a result of the persistently poor workload in the sector of
sheetfed printing presses, low levels of sales and a further
decline in the prices for new and used systems, MAN Roland
incurred heavy losses. The EBIT deteriorated in the sheetfed
sector from -EUR21 million to -EUR27 million, in the webfed
sector from EUR21 million to EUR4 million as a result of
decreasing volumes and from EUR2 million to -EUR1 million in the
distribution and services unit. The EBIT for the division as a
whole amounted to -EUR24 million and the EBT to -27 million.

The changes introduced in the autumn of 2002 aimed at regulating
capacities and bundling production facilities at the Offenbach
site, which also involves reducing personnel by 373, will not
suffice to regain profitability. Substantial additional measures
have been drawn up to reduce costs and capacities at all sites
and these are currently being negotiated with the employees'
representatives. Every effort is being made to recoup the sales
shortfall compared with budget and limit the loss for the full
year.

As already announced, a decision on the squeeze-out of minority
shareholders will be taken at the MAN Roland Druckmaschinen AG
Annual General Meeting on 22 May 2003. The relevant valuation
reports arrived at a compensation amount of EUR31.79 per share.

Diesel Engines

in EUR              2003      2002      Change in %
January to March

New orders          328        302        9
Sales               296        311       -5
Employees *)      6,853      7,477       -8
Earnings before interest
and taxes/EBIT        9         19      -53
Earnings before
taxes/EBIT            6         16      -63

*) number, figure at 31 March 2003 compared with 31 March 2002

The Diesel Engines Division was able to increase new orders by 9%
to EUR328 million. Whereas the Marine Division performed well
with its four-stroke medium-speed engines, the order intake for
power plants was rather restrained. A rise was also recorded in
incoming orders for two-stroke engines, while business in the
sector of four-stroke high-speed engines was weak. Sales fell by
5% to EUR296 million.

The EBIT amounted to EUR9 million, after EUR19 million last year.
This drop resulted from declining sales, the poorer quality of
contracts in terms of revenue, as well as restructuring costs and
losses due to overcapacity in the four-stroke, high-speed sector.
The EBT amounted to EUR6 million (EUR16 million). For the full
year, we anticipate a good result, although lower than the very
strong figure (EUR68 million) registered in 2002.

Industrial Equipment and Facilities - entire division

in EURm            2003    2002   Change in %
January to March

New orders          765     664        15
Sales               787     573        37
Employees *)     16,264  16,119         1
Earnings before interest
and taxes/EBIT      (3)    (41)         -
Earnings before
taxes/EBT             2    (43)         -

*) number, figure at 31 March 2003 compared with 31 March 2002

Compared with the weak first quarter of 2002, new orders improved
by 15% in this division to EUR765 million. Apart from RENK, which
booked two major orders in the comparable quarter, all subgroups
recorded an increase. There was a strong rise in sales of 37%,
accruing mainly from final and additional partial settlements in
the SMS Group.

After the high losses incurred last year as a result of
extraordinary costs at MAN Technologie and a deficit in the SMS
Group, this division once again reported positive pre-tax
earnings of EUR2 million. RENK, the SMS Group, Schw"bische
Hutenwerke and the other industrial equipment and facilities
operations returned positive figures, while turbomachines were
marginally negative due to lower seasonal sales. As a result of
enormous idle capacity in the space sector due to a lack of
follow-up orders for the ARIANE 5 programme, MAN Technologie
recorded a further loss of EUR7 million (-EUR22 million).

For the full year, we are expecting a strong rise in earnings
compared with the previous year's figure (EUR29 million).


MAN Group interim financial statements January - March 2003

MAN Group: Consolidated income statement

EURmillion          2003          2002
                  Jan.-March    Jan.-March

Net sales           3,269        3,104
Cost of sales      (2,705)      (2,571)

Gross margin           564         533
Selling expenses      (275)       (277)
General administrative
  expenses            (182)       (175)
Other operating income  89          96
Other operating
  expenses            (191)       (215)

Earnings before interest
and taxes/EBIT           5         (38)
Net interest result    (36)        (37)

Profit from ordinary
  operations/EBT       (31)        (75)
Income taxes            13          32

Net income for
the period             (18)         (43)

General principles

The interim report has been prepared according to IAS 34 and is
based on the accounting and valuation methods used for the
previous consolidated financial statements as at 31 December
2002. The interim financial statements have not been audited.

The scope of consolidation includes 254 companies, after 250
companies at 31 December 2002. The effect of this change in the
scope of consolidation on the Group's assets, financial position
and earnings is negligible.


MOBILCOM AG: Unloads UMTS infrastructure to Royal KPN's Unit
------------------------------------------------------------
E-Plus, KPN's fully owned mobile subsidiary from Dusseldorf, is
taking over 3,723 UMTS sites from MobilCom Multimedia GmbH. Of
these sites 931 are already equipped.
E-Plus is paying 20 million euros.

The amount reflects on the one hand Capex savings of several tens
of millions and on the other hand necessary integration and
reconstruction costs. Since both MobilCom and E-Plus have
concluded agreements with Nokia and Ericsson to supply UMTS
technology E-Plus is able to use the MobilCom infrastructure
components.

The contract is, amongst others, subject to approval from the
Bundeskartellamt (the German monopolies commission).

Uwe Bergheim, Chief Executive Officer of E-Plus; 'The purchase of
the MobilCom UMTS sites brings us many advantages. We are getting
the right UMTS infrastructure at a fair price, but mainly we save
time in the roll-out. This strengthens our position in the
market.'

E-Plus will fulfil the conditions of the regulatory authority for
telecommunication and postal services and provide UMTS network
coverage for 25 per cent of the population in Germany by the end
of the year.


NET AG: Reports Fast Growing Turnover and Improved Results
----------------------------------------------------------
-- Turnover increase 72 %
-- Results on EBITDA basis improved by TEUR 862
-- Concentration on core business continued

net AG infrastructure, software and solutions (WKN 786740)
presenting its half year results for the current business year
(October 1, 2002 till March 31, 2003).

Despite restructuring and a weak economic situation net AG
increases its turnover by 72 %. The increase in turnover is
mainly caused by the business segment "communication technology".
Whereas the business segment "information technology" shows a
slight decrease in turnover by 8.8 %.

The consolidated EBITDA increases by TEUR 862 but is still
negative. Enjoyable is, that both operative segments
"communication technology" and "information technology" together
show a positive EBITDA of TEUR 123. Due to the overhead costs the
total EBITDA of net AG group still is negative in the amount of
TEUR 1,133.

The net loss includes the negative result of the discontinued
operations in the amount of TEUR 1,849.

Business year        Jan 10 - Mar 31    Jan 10 - Mar 31
                      2002     2003    2  001     2002
Turnover                28,883 TEUR       16,733 TEUR
EBITDA                  -1,133 TEUR       -1,995 TEUR
Net loss                -6,823 TEUR       -6,198 TEUR
Result per share (DVFA)  -0.54 EUR         -0.51 EUR

The improvement of the results for this quarter in comparison to
the results of the first quarter of the business year in the
amount of TEUR 183 shows the first success of the cost reduction
and restructuring program. net AG will continue the cost cutting
and restructuring program and the concentration on the new core
businesses information technology and communication technology.

CONTACT:  NET AG
          IR Contact:
          Carsten Scharf
          Phone: + 49 (0)221 27267-17
          Fax: + 49 (0)221 27267-99
          E-mail carsten.scharf@netag.de


PANDATEL AG: Responds to Structural Change, Q1 Not Satisfactory
----------------------------------------------------------------
Pandatel AG, based in Hamburg, Germany, saw a quiet Q1 2003,
booking sales of EUR 3.8m, as against EUR 7.1m in the year-before
period. Owing to low demand, the Company reported a pre-tax loss
as at March 31, 2003 of EUR 2.0m, compared with EBT of EUR 1.1m
one year earlier. This amounts to a loss of EUR 1.3m, whereas Q1
2002 closed with a profit of EUR 0.4m.

The main reasons for the unsatisfactory business performance:
postponed investments by network operators, a weak US dollar, and
the restructuring necessary at Pandatel.

Nevertheless, the cash outflow from ongoing operating activities
improved from EUR 4.0m in the year-before quarter to only EUR
0.7m in Q1 2003. Investing activities generated a very high cash
inflow of EUR 2.4m as compared with a net outflow of EUR 0.3m in
the same period one year earlier.

As at March 31, 2003, Pandatel's freely available cash and cash
equivalents ran at just under EUR 26.5m, which translates into
liquidity (incl. securities available for sale) of EUR 4.01 per
share - which was quoted at EUR 2.50 on the same date.

Pandatel is swiftly implementing its three-prong strategy
announced in March 2003. The core elements are a more qualified,
proactive sales approach, R&D outsourcing, and strategic
acquisitions. The goals: to develop and manufacture new products
more swiftly and cost-effectively while also kindling new demand
among technology users. The Company has also responded to the
faltering propensity among clients to invest and the increasing
pressure they have brought to bear on prices: Pandatel is
consistently exploiting cost-cutting potential.

For example, sales activities in the United States are to be
bundled at the base in Miami, closing the office in New Jersey.
The swift implementation of these measures demonstrates that
Pandatel is well able to act fast, consistently and successfully
in difficult situations.

CONTACT:  PANDATEL AG
          Investor Relations
          Dietlinde Bamberger
          Fasanenweg 25 - 22145 Hamburg
          Germany
          Phone: +49-40-64414-244
          Fax: +49-40-64414-108
          E-mail: ir@pandatel.com


PROSIEBENSAT.1: Group Finds Advertising Market Bottoming Out
------------------------------------------------------------
Advertising crisis has severe impact on Q1 2003 performance

The ProSiebenSat.1 Group's business performance in the first
quarter of 2003 suffered severely from the ongoing advertising
crisis. Group revenues were down 15.9 percent from the comparable
period last year, to EUR 411.3 million. Deep cost cuts
compensated for half of the revenue decline in the year's first
three months. Though revenues were off EUR 78.0 million, net
income was down only EUR 39.3 million. The Group's pre-tax result
declined from the EUR 8.5 million of last year's Q1 to EUR -30.8
million. The ProSiebenSat.1 Group's EBITDA was EUR -4.0 million,
as against the comparable period's EUR 43.4 million. EBIT was EUR
-13.5 million, compared to EUR 29.7 million. The net loss for the
Group totaled EUR -32.8 million, compared to a profit of EUR 5.7
million on the period last year. Cash flow calculated by DVGA/SG
principles was EUR 233.5 million, EUR 61.9 million less than the
year before.

"The first quarter of 2003 was dominated by a dramatic slump in
the television advertising market, which was most severe in
March, at the outbreak of the war in Iraq," said Urs Rohner, CEO
of ProSiebenSat.1 Media AG. "As the first quarter of last year
was comparatively good, the ProSiebenSat.1 Group suffered more
than its share from these conditions in the first few months of
2003. But in April, demand for television advertising was back up
significantly, though the market on the whole remains in negative
territory. The market very likely bottomed out in March. But we
believe any real improvement in the TV advertising market is
unlikely until the second half of the year, at the very
earliest." Despite the success of the television corporation's
cost control measures, the CEO declared himself unsatisfied with
business to date. "The revenue drops are not entirely due to the
recession in the advertising market - they also come in part from
weaknesses at Sat.1 and ProSieben. We've corrected most of these
problems, but not quite all. Our most urgent task at the moment
is to optimize ProSieben's afternoon schedule and some prime-time
slots, and Sat.1's weekend and prime access schedules." At the
same time, Rohner emphasized that the ProSiebenSat.1 Group still
holds the lead in the television advertising market, with a gross
market share of 44.3 percent. "We've been especially pleased with
our news channel N24, which despite its brief history is not only
almost neck-and-neck with n-tv in audience share, but is also
gradually narrowing n-tv's lead in gross advertising market
share."

Cost base pruned sharply at Group level

In the past two years the ProSiebenSat.1 Group has responded to
the recession in the advertising market with a strict policy of
cost control. Rigorous cost management improved the expense
picture at the Group level again in the first quarter of 2003.
Programming and material costs were down EUR 30.4 million, or 8.8
percent, from the comparable period last year, to EUR 316.9
million. Other operating expenses were likewise down, from EUR
59.1 million to EUR 56.2 million. This is equivalent to savings
of around 5 percent. Other operating income was EUR 11.5 million,
off EUR 4 million from the comparable period last year. The
decline was mainly the result of lower appreciation of
programming assets.

Programming assets down slightly

As of March 31, 2003, the ProSiebenSat.1 Group had total
programming assets worth EUR 1,224.9 million, compared to EUR
1,259.0 million for the same period last year. This is equivalent
to a reduction of 2.7 percent. With a share of 63.7 percent of
total assets, programming is the ProSiebenSat.1 Group's most
important asset item. Scheduled depreciation, at EUR 246.1
million, was down 4.1 percent from last year's comparable figure.
Programming investments were up from EUR 325.5 million to EUR
434.2 million, after the Group signed several film contracts with
major Hollywood studios like Disney, Touchstone, Miramax,
Dimension, Lucasfilm and Paramount Pictures. These agreements
ensure that the ProSiebenSat.1 Group will have a long-term supply
of high-quality, attractive programming.

Substantial reduction in net financial debt

The ProSiebenSat.1 Group reduced its net financial debt from EUR
1,022.5 million to EUR 907.5 million in the first quarter of
2003. Thus the figure is 11.2 percent below the comparable figure
for last year. A high-yield bond issue in July 2002 and the
retirement of Eurobonds produced a 26.2 percent net increase in
bonds from the same quarter last year, to EUR 665.9 million. At
the same time, bank loans were reduced 35.1 percent, to EUR 330
million. Of this figure, EUR 74 million is for a mortgage loan
for Sat.1. Largely because of a reduction in tax liabilities,
other debt was down by a total of EUR 16.6 million, to EUR 23.7
million. In all, the ProSiebenSat.1 Group's liabilities, at EUR
1,241.7 million, remain at roughly the same level as the previous
year's EUR 1,229.5 million. The equity ratio was 30.4 percent.

Personnel expenses down to EUR 53.6 million

As part of its cost-cutting measures, the ProSiebenSat.1 Group
has generally foregone any salary increases for 2003. In the
first three months of this fiscal year, personnel expenses were
EUR 53.6 million, compared to EUR 55.1 million for the same
quarter last year. This is equivalent to a reduction of 2.7
percent. Setting aside the integration of SevenOne Intermedia
GmbH as of September 1, 2002, personnel expenses would in fact
have been 7.4 percent lower than in the first quarter of last
year. As of March 31, 2003, the ProSiebenSat.1 Group had 3,023
employees in all, down 1.6 percent from December 31, 2002. The
staff has contracted 0.8 percent from March 31, 2002. Again,
setting aside the reintegration of SevenOne Intermedia it would
have contracted 6 percent.

Television: Recession in the TV advertising market keeps building

The situation in the TV advertising market deteriorated further
in the first quarter of 2003. Gross expenditures on television
advertising receded faster, at 5.9 percent, than the advertising
market as a whole. The gross total losses in the TV advertising
market were roughly EUR 100 million. The low point came in March,
when the drop expanded to 8.9 percent under the influence of the
war in Iraq. The decreases in the TV advertising market had been
2.4 percent in January and 4.8 percent in February. Despite the
adverse market conditions, the ProSiebenSat.1 Group was able to
maintain its lead in the market. With a gross TV advertising
market share of 44.3 percent, the Group defended its lead
position in the German TV advertising market against the RTL
Group stations, marketed by IP Deutschland. In the commercially
decisive target audience between ages 14 and 49, the
ProSiebenSat.1 Group's stations held their own, with a share of
28.9 percent, compared to 29.0 percent in the first quarter of
2002. Among all viewers over the age of three, the Group earned a
share of 21.5 percent from January to March of this year. Figures
for station N24 have also been reported by AGF/GfK television
research since January 2003.

Group generates revenues of EUR 401 million

The ongoing advertising crisis adversely affected performance in
the Television segment. In its core business, the Group generated
revenues of EUR 401 million in the first three months of 2003,
off EUR 72 million from the comparable quarter last year. This
represents a decline of 15 percent. Because of lower revenues,
operating income amounted to EUR -32 million, following on EUR 9
million last year.

Sat.1 booked revenues of EUR 177 million, following EUR 196
million for the previous year's first quarter. This is equivalent
to a reduction of 9.7 percent. But the station was able to make
up for the lower revenues through cost cuts. Pre-tax result even
improved from EUR -40.7 million to EUR -13.1 million, a 67.8
percent gain. ProSieben was the last of the large private
stations to feel the full impact of the crisis in the advertising
market last year. The station withstood the recession into the
first quarter of 2002. So the first three months of 2003 came out
all the more disappointing for ProSieben. Against a comparatively
stable, high level of revenue in the first quarter of last year,
the station brought in revenues of 155 million, a drop of EUR 53
million. Pre-tax income declined from EUR 68.7 million to EUR
15.1 million.

Kabel 1 also suffered from the weak advertising market. The
leader among the second generation of Germany's TV stations
generated revenues of EUR 46 million in the first three months of
2003, compared to EUR 53 million for the same period last year.
Income before taxes was EUR 2.3 million, down EUR 0.2 million
from the same period last year.

News channel N24 had an encouraging first quarter in 2003. A new
line of documentaries and coverage of the war in Iraq brought N24
considerable gains in audience share during the first three
months of 2003. The station's share among viewers age 14 to 49
was 0.6 percent. In TV households that receive both N24 and its
main competitor, n-tv - in other words, where genuine competition
can exist - N24 is already neck-and-neck with n-tv among this
target audience. Revenue performance at N24, which also serves as
the Group's in-house news service provider, was dominated by
substantial cost cuts in news operations for the entire Group
during the first three months of the year. The consequence was a
drop in the news station's in-Group revenues. Consequently N24's
total revenues for the first quarter of 2003 were down EUR 10
million, to EUR 15 million. Yet in the same period, albeit at a
low level, the station's outside advertising revenues doubled.
Because of lower internal revenues and the higher expenses of
covering the war in Iraq, pre-tax result declined from EUR -6.9
million to EUR -7.7 million.

Transaction television: Euv¡a Media generates profit of EUR 6.1
million
The ProSiebenSat.1 Group's involvement in transaction television
continued to perform eminently well in the first quarter of 2003.
ProSiebenSat.1 Media AG holds 48.4 percent of Euv¡a Media AG &
Co. KG, which operates the Neun Live station and the travel
shopping channel sonnenklar TV. In the first three months of this
fiscal year, Euv¡a Media generated consolidated revenues of EUR
23.5 million, compared to EUR 9.4 million for the same quarter
last year. Pre-tax result improved from EUR -7.9 million to EUR
+6.1 million. Thus the company is far ahead of original
projections.

Merchandising: Revenues off EUR 5 million

The Merchandising segment combines the activities of MM
Merchandising M�nchen and SevenOne Club & Shop GmbH. In the first
three months of 2003, the two ProSiebenSat.1 Group subsidiaries
in this segment generated total revenues of EUR 14 million, down
EUR 5 million from the same period last year. Operating income
amounted to EUR 3 million, following on EUR 7 million last year.
Once again, the weak economy in Germany was responsible for the
Merchandising segment's drop in revenues and earnings. Amid the
adverse consumer climate, the music industry made significant
cutbacks in its cooperative media ventures with MM Merchandising
M�nchen during the first quarter. But for the year as a whole,
the ProSiebenSat.1 Group anticipates that revenues and earnings
in the Merchandising segment will grow from last year.

In the future, the ProSiebenSat.1 Group will pool its
Merchandising activities in a single company. MM Merchandising
Media GmbH will result from the merger of MM Merchandising
M�nchen GmbH and SevenOne Club & Shop GmbH. The merger has been
in planning since the end of January 2003, and is to take effect
at the beginning of June. In addition to synergies in costs, this
will also enable the ProSiebenSat.1 Group to generate additional
revenue potential in the Merchandising segment.

Services: Cost cuts to have an impact

The Services segment comprises subsidiaries SevenSenses and SZM
Studios, and the IT company ProSieben Information Service. This
segment derives 94 percent of its business from in-Group orders.
Amid such a situation, the ProSiebenSat.1 Group's extensive cost
cuts necessarily had an impact on revenues and earnings in the
Services sector. From January to March 2003, the segment
generated revenues of EUR 36 million, compared to EUR 41 million
in the same quarter last year. This represents a decline of five
percent. Operating income rose from EUR 1 million to EUR 2
million.

Outlook: 2003 to end in the black

There is still no sign of an economic turnaround in Germany in
2003. Since October 2002, gross domestic product growth
projections from economic research institutes, business
associations, and the Federal government have all been corrected
downward, time after time. Estimates of economic growth in
Germany currently fluctuate between 0.3 percent and 0.7 percent.
The ongoing weak economy will also continue to pull down the
development of the advertising market. Amid these conditions, the
ProSiebenSat.1 Group believes that though the television
advertising market bottomed out in the first quarter of 2003, the
market situation will improve much more slowly than had been
anticipated even at the beginning of the year. For 2003 as a
whole, the Group therefore expects the television advertising
market to keep contracting. Because visibility still remains
extremely low, the Group is bracing for another drop of 5 to 10
percent from the year before. "Our projections for 2003
anticipate that even in the worst case - if our television
advertising revenues contract up to 10 percent - we will still
reach an EBITDA in the triple digit millions," said CEO Rohner.
"We'll stick systematically to our course of consolidation, and
pare back our cost base still further, by more than EUR 200
million from 2002." Earnings will improve especially
significantly at Sat.1 and N24 compared to the year before,
although the present market will not allow Sat.1 to achieve an
operating profit until next year. Break-even for N24 is still
projected for 2005.

Because of the extremely seasonal nature of the television
business, the ProSiebenSat.1 Group will presumably also show a
loss for the traditionally weak third quarter. But the stronger
periods should still prevail in determining total earnings for
the year. The Group will show positive net figures for the second
and fourth quarters.

"Apart from controlling costs, we are also focusing on improving
the performance of our two stations ProSieben and Sat.1," Rohner
continued. "Our goal is for our four stations to achieve a total
share of 29.5 percent among viewers age 14 to 49 in 2003. That
will be the yardstick by which we measure our stations'
management." The Group expects to maintain its lead in the
television advertising market this year. "By the end of 2004, we
also intend to recover the lead among the 14-to-49 audience."
CONTACT:  PROSIENBENSAT1 MEDIA AG
          Medienallee 7
          D-85774 Unterfohring
          Phone: +49 [89] 95 07-11 80
          Fax: +49 [89] 95 07-11 84


WEDECO AG: Decreases Consolidated Revenue by 11% to EUR24.8 MM
--------------------------------------------------------------
Decreasing revenue and income. One-time extraordinary charges
from ended negotiations on business combination.

In the first quarter of 2003, WEDECO AG generated consolidated
revenue of Euro 24.8 million, 11,1% less than in the first three
months of the previous year (Euro 27.9 million). Adjusted for the
Solar business sold at the end of 2002, revenue declined only by
3.1%.

The UV division, including spare parts and Services, generated
Euro 16.2 million. Q1 2002 UV revenue, adjusted for the Solar
business. thus amounted to Euro 14.9 million. On a like-for-like
basis, this represents an increase of the current UV quarterly
revenue by Euro 1.3 million or 8.7%. In the first three months
the Ozone division, including Services, invoiced Euro 8.6 million
(Q1 2002: Euro 10.7 million), 19.7% less than in the previous
year. Year-on-year after Sales revenue increased by 11.8% from
Euro 6.8 million to Euro 7.6 million.

In the first quarter of 2003, EBIT was negative, at Euro -5.0
million (Q1 2002: Euro 3.3 million). This was due primarily to
the one-time extraordinary charges of approx. Euro 3.0 million
from negotiations on a potential business combination which
negatively impacted the result of the UV division. For the
reporting quarter, EBlTDA was Euro -3.1 million (Q1 2002: Euro
4.6 million).

Adjusted for one-time extraordinary charges. Euro 0.5 million
relates to the UV division (Q1 2002: Euro 2.7 million) and Euro -
0.6 million to the Ozone division (Q1 2002: Euro 1.9 million).
In total, in line with IAS accounting the group posted a loss of
Euro -3.5 million for the first quarter of 2003, against a plus
of Euro 1,6 million in the comparative period of the previous
year. The loss before one-time extraordinary charges of the first
quarter 2002 was Euro -1.7 million. For the first quarter,
earnings per share were Euro -0.32 after Euro 0.15 one year ago.
The equity ratio is 50.9% after 50.1% as of December 31, 2002. At
Euro -0.7 million cash flow from current business activity
improved considerably against the Euro -2.5 million one year ago.

The order book of Euro 51 million as of March 31, 2003 and a
current offer volume of Euro 694 million show that WEDECO with
its UV and ozone technology is operating on a growth market.

The Management Board


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


FIAT SPA: Reports Operating Loss of EUR342 MM for the Quarter
-------------------------------------------------------------
The Board of Directors of Fiat S.p.A. met in Turin under the
chairmanship of Umberto Agnelli to review the Group's
consolidated results for the first three months of 2003.

Financial Overview
As expected, the first quarter of 2003 was another difficult
period for the Fiat Group, as it continued to confront the
problems that hampered its profitability last year in a weak
global economy that continues to be characterized by a climate of
uncertainty.

The key financial data for the first quarter are reviewed below.

Revenues amounted to about 12.3 billion euros, compared with 14.1
billion euros in the first three months of 2002. The decline was
about 10% on a comparable consolidation basis. This shortfall is
largely the result of lower unit sales by Fiat Auto and CNH and
of non-operating factors, including the impact of the conversion
of CNH's dollar-denominated revenues into euros (which reduced
revenues by about 500 million euros) and, of lesser magnitude,
the divestitures of certain Group businesses in 2002 and at the
beginning of 2003 (Teksid's Aluminum Business Unit and Iveco's
Fraikin).

The operating loss for the quarter totaled 342 million euros,
compared with 299 million euros in the first three months of
2002, when the bottom line benefited from higher gains (about 50
million euros) earned on the sale of real estate assets,
especially by Toro Assicurazioni.

Overall, while Fiat Auto narrowed its loss, the Group's other
businesses saw their operating profits fall, even though, in the
aggregate, they operated close to breakeven.

The net consolidated loss for the quarter came to 699 million
euros (681 million euros attributable to the Group), compared
with 663 million euros (529 million euros attributable to the
Group) in the first three months of 2002. The main reasons for
the loss are the costs and lost profits resulting from the flood
that completely stopped production at the Termoli engine plant
this past January and two charges of a temporary nature: an entry
booked to mark to market the equity securities held by Toro
Assicurazioni and the adjustment of the total return equity swap
on General Motors shares, which was booked to reflect the fair
market value of these shares at March 31, 2003. This loss,
however, would almost totally disappear if the shares were valued
at today's market prices. There were also some positive factors,
including the extraordinary income earned on the sale of the
Brazilian automobile retail financing activities. At March 31,
2003, the net financial position showed net borrowings of 5.2
billion euros, up about 1.4 billion euros from December 31, 2002
but down from the 6.6 billion euros recorded at March 31, 2002.
The increase from the beginning of the year was due mainly to a
rise in working capital caused by higher inventories held by CNH
(due to seasonal factors) and Iveco (due to seasonal factors and
the launch of new products), a drop in the amount of trade
receivables held by Fiat Auto and a rise in receivables owed by
the tax authorities. Another factor affecting the level of
indebtedness was the negative cash flow experienced during this
period. The resources absorbed by these factors were replaced in
part by the proceeds generated by divestitures.

When the financing secured by an agreement with EDF within the
context of the Italenergia transaction (1,150 million euros) and
the expected sale of the entire capital stock of Toro
Assicurazioni, which is covered by a binding agreement and will
bring in about 1.4 billion euros, are taken into account, the
Group is fully in compliance with the requirements for reduction
of net indebtedness stipulated in the terms of the mandatory
convertible facility provided by the banks.

Fiat Auto
In Western Europe, the contraction that characterized the
automobile market in 2002 continued during the first quarter of
2003. Overall demand was down 2.7%, aided in part by an increase
of 5.8% in Italy, where motorists took advantage of environmental
incentives provided by the government during the last three
months of this program. The Polish market continued to improve,
but a credit crunch had a negative impact on demand in Brazil.

Fiat Auto had revenues of 4.9 billion euros in the first quarter
of 2003, compared with 6 billion euros in the same period last
year. Worldwide sales totaled 419,000 units (-19%). About
onethird of this decline is attributable to a drop in unit sales.
The remaining two-thirds reflect a production shortfall (about
31,000 cars) caused by a flood at the Termoli plant and the
aggressive actions taken to cut inventories in the sales network
(more than 45,000 vehicles since the end of 2002) in anticipation
of new model launches planned for later this year.

Fiat Auto reported an operating loss of 334 million euros in the
first quarter of 2003 (-429 million euros in the same period last
year). The improvement over the loss incurred in the first three
months of 2002 shows that the Sector is beginning to respond to
restructuring and costcutting efforts and reflects the benefits
of the synergies developed with General Motors and of programs
implemented to increase the quality of its sales.

At the beginning of March 2003, on the occasion of the Geneva
International Motor Show, Fiat Auto unveiled the Fiat Gingo city
car, a compact minivan called Fiat Idea, the Lancia Ypsilon and
the Alfa GT Coup,.

Planning for the medium term, we are in the process of finalizing
an agreement with General Motors to develop another common
architecture for cars, this time in the "C" segment, which is the
most important in Europe.

CNH Global
The market for agricultural equipment was stable in Europe but
contracted (-3.5%) in Latin America. In North America, overall
demand was up 5.2% thanks exclusively to higher sales of low-
horsepower tractors. The market for construction equipment was
weaker than expected. It shrank further in Europe (-5.3%) and
North America (-11.7%), but held steady in Latin America.

CNH reported revenues of 2.2 billion euros, down from 2.7 billion
euros in the first quarter of 2002. This decrease reflects the
impact of an unfavorable exchange rate for the U.S. dollar, which
weakened versus the euro. When stated in U.S. dollars ($2.4
billion) and converted into euros on a comparable foreign
exchange basis, revenues show a decline of about 5%, attributable
primarily to lower sales of construction equipment.

Sales of agricultural equipment were roughly in line with those
for the first quarter of 2002, as a positive performance in
Europe offset lower shipments of certain product lines in North
America and Latin America. On the other hand, sales of
construction equipment were affected by weak market demand and
heightened competitive pressure.

The Sector had an operating loss of 8 million euros ($9 million),
compared with operating income of 30 million euros ($26 million)
in the first three months of 2002. Price increases, better
margins on new agricultural equipment models and the benefit of
additional synergies developed by Case and New Holland were not
enough to offset the effect of lower unit sales, especially in
the area of construction equipment; a less favorable sales mix;
the impact of anticipated cost increases for medical and pension
costs (especially in the United States); and the costs incurred
to launch new products.

Iveco
In Western Europe, total demand for commercial vehicles weighing
more than 2.8 tons was weak. It increased by 2.7% compared with
the first quarter of 2002 when, however, the market had
contracted sharply. A breakdown by market segment shows a gain of
8% for heavy-range vehicles, a modest improvement of 2% for light
vehicles and a drop of 5% for intermediate vehicles.

Iveco had revenues of 2 billion euros in the first quarter of
2003, compared with 2.1 billion euros in the same period a year
ago. The deconsolidation of Fraikin accounts for this decrease.
Healthy sales gains for light vehicles (+5%), heavy-range
vehicles (+5%) and Irisbus (+24%) were offset by a drop in
shipments of intermediate vehicles (-19%). The deconsolidation of
Fraikin, heightened competitive pressures and the unfavorable
exchange rate used to translate the data of the Brazilian
operations had a negative impact on the Sector's operating
income, which totaled 2 million euros, down from 11 million euros
in the first three months of 2002.

Ferrari
Rising sales of Maserati cars helped Ferrari post higher revenues
in the first quarter of 2003.  However, it reported an operating
loss due to normal seasonal factors, higher research and
development outlays, and unfavorable foreign exchange rates.

Other Sectors
The difficulties that are affecting the performance of carmakers
had a negative impact on the components sectors. In this
environment, revenues were down at Magneti Marelli, which
suffered from lower unit sales and the impact of unfavorable
foreign exchange rates. Teksid's revenue decline was due mainly
to the sale of certain businesses in 2002.

Nevertheless, these two Sectors reported an aggregate loss of 9
million euros, an improvement from a loss of 21 million euros in
the first quarter of 2002. Comau had higher revenues, but its
operating result deteriorated. As was the case in 2002, Comau's
loss of 26 million euros (loss of 12 million euros in the first
three months of 2002) was caused exclusively by the higher costs
incurred to complete outstanding orders.

FiatAvio was affected by the crisis that is gripping the civil
aviation market and by the postponement of space launches.
Nevertheless, its return on sales held at 8%, yielding operating
income of 24 million euros (54 million euros in the first quarter
of 2002).

Toro Assicurazioni reported operating income that, net of gains
on the sale of real estate assets, was roughly the same as in the
first three months of 2002.

Business Solutions had higher revenues, but its operating income
declined due to the lower gains earned on the sale of real estate
assets.

Itedi's operating income was higher than in the first quarter of
2002, thanks to the success of cost-cutting programs and brand-
stretching initiatives.

Outlook for 2003
2003 will be a difficult and challenging transition year for the
Fiat Group, since it will be working to overcome its operational
difficulties, especially those that have been penalizing Fiat
Auto's profitability, in an economic climate characterized by low
growth and aggressive competition.

The Group's key markets are not expected to show appreciable
signs of a turnaround until later this year. In Europe, demand
for automobiles will be lower than in 2002. The market for
agricultural equipment should hold relatively steady, but sales
of construction equipment are expected to decline further. Demand
for commercial vehicles will be down across the board.

Despite such an unfavorable environment, all Group Sectors are
working hard to achieve significant improvements in operating
results and cash flow through rigorous cost-cutting programs and
other measures.

The exceptionally rapid pace at which the divestitures of Fidis,
Toro and FiatAvio were completed in recent months underscores the
Group's commitment to meet the debt-reduction requirements agreed
upon with its lending banks and to permanently strengthen its
balance sheet.

By June, the Group's management intends to present to the
financial markets the industrial and financial action guidelines
that it will implement to achieve a lasting structural turnaround
of its operations. At that time, management will also be able to
provide a better forecast of the Group's performance for all of
2003. It can already be stated that, though the operating result
is expected to remain negative, it should mark an improvement
from the full year 2002 level.

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


TELECOM ITALIA: Reaches Deal for Integrating Is TIM in Turkey
-------------------------------------------------------------
TIM (Telecom Italia Group) hereby announces that an agreement has
been reached in Turkey for the definition of the guidelines for
the integration between Is TIM (ARIA) - the mobile operator owned
by TIM (49%) and IsBank (51%) among the main Turkish banks - and
Aycell, a GSM operator wholly owned by the fixed-line company
Turk Telekom.

The agreement aims at obtaining significant operating and
financial synergies through the combination of the two companies.
The ability in innovation, the commercial results and the image
acquired by IS TIM (ARIA) in just over two years will be
appropriately enhanced with the speed in development of Turk
Telekom's subsidiary. Both the two telecoms operators, TIM and
Turk Telekom will hold 40% of shares of the new entity
respectively, the remaining 20% will be held by Is Bank.

TIM will be the industrial partner, the new entity will count on
an adequate network coverage and on the consolidation of the
Turkish market to carry out its operations.

The parties have the objective of defining details about the
operations by June 30.

Rome, May 13, 2003


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


MILLICOM INTERNATIONAL: Corporate Credit Rating Lowered to 'SD'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered the
corporate credit rating and subordinated debt rating of Betrange,
Luxembourg-based international wireless carrier Millicom
International Cellular S.A. to 'SD' (selective default) and 'D',
respectively, and removed the ratings from CreditWatch.

The rating action follows the company's recently announced
completion of its debt exchange, which Standard & Poor's has
deemed to be a distressed transaction.

Under the exchange, Millicom issued cash and notes that
collectively represent less than the full face amount of the
exchanged debt. Given these factors, this transaction is
considered to be tantamount to default under Standard & Poor's
corporate criteria. Subsequent to the downgrade, the ratings were
withdrawn.


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


KONINKLIJKE AHOLD: Issues Address of Chairman to Shareholders
-------------------------------------------------------------
General Meeting of Shareholders
The Hague, Tuesday, May 13, 2003

Ladies and Gentlemen,

I would like to begin by welcoming you to our General Meeting of
Shareholders. The fact that so many of you are here today
reflects both your strong commitment to and your sense of
solidarity with this company. I can assure you that every single
one of us here on the stage appreciates and respects those
sentiments. Especially now, when times are tough.

This meeting is very different from those to which you and we
have become accustomed. But then Ahold's situation is very
different too. Permit me to clarify our perspective on this
issue.

A well-known saying in business is: 'Investors can take a lot of
bad news... but they hate surprises!'

As shareholders, you knew Ahold as a dependable company, year in
and year out. You knew that Ahold delivered - and of course that
is how it should be. And still, as supervisors and executives of
this company, we have not been able to spare you surprises.

Unfortunately, I must add, very unpleasant surprises.

Let me tell you that everyone, including the members of the
Supervisory Board and the Corporate Executive Board, was equally
shocked.

On February 24, just over 11 weeks ago, Ahold issued an
announcement to the effect that the company would be lowering its
projected earnings and that the company's CEO and CFO had
tendered their resignations. We can well imagine the ensuing
feelings of anger, frustration and incomprehension resulting from
this painful message. (I say 'we' because I say this on behalf of
all Ahold executives.)

February 24 was an all-time low for each and every one of us, and
I offer you my sincere apologies.

We took immediate action in every area imaginable. In recent
months, we have been working diligently to solve the problems as
quickly as possible. There was no time to lose and, let me assure
you, no time was lost!

First and foremost, we ensured stabilization of Ahold's financial
base by obtaining a credit facility.

At the same time, we appointed new people to crucial positions. I
refer, of course, to the appointment of our new Acting CEO,
Anders Moberg, and our interim CFO, Dudley Eustace.

Both gentlemen are more than welcome at Ahold. Both are
executives with an outstanding track record. I am convinced that
Ahold is in safe hands with these gentlemen at the helm.

You should understand, however, that our communication with you
has been hampered by the various investigations that were
initiated. These investigations limit the information we are able
to share with you.

The purpose of our internal investigations is to enable our
accountants to resume their audit work as quickly as possible.

And then, there are also external investigations, for instance by
the SEC.

As long as the outcome of these investigations remains unclear,
we are unable to provide information. Little has changed in that
respect.

The media was not amused by what it felt was inadequate
communication and let us know in no uncertain terms. Ahold was
criticized for a lack of transparency and openness, the
foundations on which corporate governance is built.

Undoubtedly, transparency is an important aspect of corporate
governance. Full transparency, on the other hand, is impossible:
a company will always have to decide what information should be
announced and when. During a crisis, the Executive and
Supervisory Boards of a company cannot always be as transparent
as they would like to be.

And we have tried to be as transparent as possible under the
circumstances, but during the course of the investigations -
while their outcome is still unclear - it is very difficult, if
not impossible, to shed much light on the matter.

At such times, two things tend to happen: while the company is
bound hand and foot as to what it may and may not say, the media
demands content.

And more often than not, this results in unattributed comment
from people who prefer to stay anonymous. No matter how
unfortunate and regrettable, there is little we can do to correct
that.

In light of the ongoing investigations, "No comment" is about the
only thing we have been able to say so far. You can rest assured
that once the investigations are concluded, we will provide
maximum clarity.

Ladies and gentlemen,

Let me run you through the chain of events since Monday, February
24, 2003:

On February 24, we announced that Ahold's net earnings and
earnings per share would be significantly lower than previously
indicated. This was due primarily to overstatements of income
related to promotional allowance programs at U.S. Foodservice. In
addition, we announced that a number of joint ventures will no
longer be fully consolidated, commencing with fiscal year 2002,
and that we had been investigating, through forensic accountants,
our Argentine subsidiary Disco. In view of these developments,
Messrs. Van der Hoeven and Meurs tendered their resignations and
Ahold's auditors decided to suspend the fiscal year audit pending
completion of the investigations. Lastly, we announced that we
had obtained a commitment for a new credit facility, totaling EUR
3.1 billion.

On February 27, we announced that the investigation at Disco had
been completed and had shown there will be no material impact on
Ahold's financial results.

On March 5, the Supervisory Board announced that we entered into
the new credit facility, provided by ABN Amro, Goldman Sachs,
ING, JP Morgan and Rabobank.  This was an important step in
stabilizing our financial position. The facility provides for
aggregate borrowings of EUR 2.65 billion, of which USD 1.285
billion and EUR 600 million were available immediately. In
addition, banks remain committed to providing an additional EUR
450 million backup facility to support existing USD 850 million
securitization programs.

On March 11, we announced we had appointed Dudley Eustace to the
Corporate Executive Board as interim Chief Financial Officer,
effective immediately.

On March 26, we announced that, in light of the ongoing
investigations at Ahold and in keeping with our intent to
cooperate with all regulatory authorities, Ahold had decided to
undertake a further review of certain transactions and related
matters at Disco. The decision was also intended to ensure that
Disco's books and records were in compliance with all applicable
regulations.

On April 3, we announced our intention to divest our operations
in four South American countries - Brazil, Argentina, Peru and
Paraguay - in order to concentrate on our mature and most stable
markets and to generate funds to pay down debt. As earlier
announced on February 5, the company is in current negotiations
to divest its holdings in Chile.

On April 29, we announced we had reached agreement for the sale
of our Indonesian operation to PT Hero Supermarket Tbk.

On May 2, we announced we had reached agreement for the sale of
our Malaysian activities.

On the same day, we announced an extension of the U.S.
Foodservice securitization programs by another sixty days. The
securitization programs currently have USD 750 million
outstanding, of which USD 300 million matures in 2005.
Of the USD 450 million capacity, USD 200 million will amortize
over this period of 60 days. It is intended that the USD 200
million that is amortizing will be financed by the USD 450
million back-up commitment. This back-up commitment was
established to support the securitization programs and announced
as part of the Euro 3.1 billion facility in February 2003.

The remaining USD 250 million capacity under the USD 450 million
back-up commitment will remain available to Ahold as necessary
for further support of the U.S. Foodservice securitization
programs.

The last item of the announcement confirmed that our auditors
Deloitte & Touche had resumed their audit at Albert Heijn and
Stop & Shop.

The delivery of audited 2002 financial statements for Albert
Heijn and Stop & Shop by May 31, 2003 is a condition precedent
governing the availability of the second, unsecured tranche of
USD 915 million of the Euro 3.1 billion credit facility
previously announced by Ahold.

May 2 was a busy day, because we were delighted to announce our
proposal to nominate Anders Moberg as President & Chief Executive
Officer of the company.
Mr. Moberg assumed the position of Acting CEO on May 5. His
appointment to the Corporate Executive Board will be proposed at
the Annual General Meeting of Shareholders, which will be held
later this year.

On May 8, we were able to announce that the forensic accounting
work being performed by PricewaterhouseCoopers (PwC) as part of
our internal investigation of subsidiary U.S. Foodservice is now
substantially complete. For the period April 1, 2000  to December
28, 2002, we were confronted with total overstatements of pre-tax
earnings of approximately USD 880 million. Although the forensic
accounting work at U.S. Foodservice is substantially complete, a
legal internal investigation is continuing.

And finally, in the last few minutes, we have announced that the
Supervisory Board has accepted the resignation of Jim Miller,
President and Chief Executive Officer of U.S. Foodservice and a
member of the Corporate Executive Board of Ahold.

Mr. Miller has served as President and CEO of U.S. Foodservice
since 1997, and was appointed to the Ahold Corporate Executive
Board in 2001. Until a new CEO for U.S. Foodservice is named,
Robert G. Tobin will serve as interim Chief Executive Officer.
Mr. Tobin is a member of the Ahold Supervisory Board since 2001.
He is the former Chairman and CEO of Stop & Shop, which he joined
in 1960. In 1998 he was appointed President and CEO of Ahold USA
as well as to the Ahold Corporate Executive Board from which he
retired in 2001. Mr. Miller has agreed to assist Mr. Tobin in the
transition.

The Supervisory Board has taken this decision in light of the
results of the forensic accounting work conducted by
PricewaterhouseCoopers, announced by Ahold on May 8, 2003, which
had identified total overstatements of pre-tax earnings of
approximately USD 880 million for the period April 1, 2000 (the
date of the acquisition of U.S. Foodservice) to December 28, 2002
(the end of Ahold's 2002 fiscal year). The internal legal
investigation into accounting irregularities at U.S. Foodservice
and the possible involvement of U.S. Foodservice personnel
continues in close cooperation with the PricewaterhouseCoopers'
forensic accounting work.

This was a short overview of our activities over the past months.
As you can see, we have had our hands full. Thank you for your
attention.

CONTACT:  ROYAL AHOLD
          N.V. P.O. Box 3050 1500
          HB Zaandam Netherlands
          Phone: +31 (0)75 659 57 20
          Fax: +31 (0)75 659 83 02
          Home Page: http://www.ahold.com
          Corporate Communications
          Phone: +31.75.659.5720


KONINKLIJKE AHOLD: U.S. Foodservice Chief Executive Resigns
-----------------------------------------------------------
The Supervisory Board of Ahold today [Tuesday] announced that it
has accepted the resignation of Jim Miller, President and Chief
Executive Officer of U.S. Foodservice and a member of the
Corporate Executive Board of Ahold.

Mr. Miller has served as President and CEO of U.S. Foodservice
since 1997, and was appointed to the Ahold Corporate Executive
Board in 2001. Until a new CEO for U.S. Foodservice is named,
Robert G. Tobin will serve as interim Chief Executive Officer.
Mr. Tobin is a member of the Ahold Supervisory Board since 2001.
He is the former Chairman and CEO of Stop & Shop, which he joined
in 1960. In 1998 he was appointed President and CEO of Ahold USA
as well as to the Ahold Corporate Executive Board from which he
retired in 2001. Mr. Miller has agreed to assist Mr. Tobin in the
transition.

The Supervisory Board has taken this decision in light of the
results of the forensic accounting work conducted by
PricewaterhouseCoopers, announced by Ahold on May 8, 2003, which
had identified total overstatements of pre-tax earnings of
approximately USD 880 million for the period April 1, 2000 (the
date of the acquisition of U.S. Foodservice) to December 28, 2002
(the end of Ahold's 2002 fiscal year). The internal legal
investigation into accounting irregularities at U.S. Foodservice
and the possible involvement of U.S. Foodservice personnel
continues in close cooperation with the PricewaterhouseCoopers'
forensic accounting work.

CONTACT:  ROYAL AHOLD N.V.
          P.O. Box 3050 1500 HB
          Zaandam Netherlands
          Phone: +31 (0)75 659 57 20
          Fax: +31 (0)75 659 83 02
          Home Page: http://www.ahold.com

          Corporate Communications
          Phone: +31.75.659.57.20


KONINKLIJKE AHOLD: Extends Deadline for 2002 Annual Accounts
------------------------------------------------------------
-- Eustace appointed to Corporate Executive Board, Hommen to
Supervisory Board

Ahold announced that the General Meeting of Shareholders has
extended the term for preparing the annual accounts and the
management report for fiscal year 2002. This extension was
adopted on the basis of exceptional circumstances for a period of
up to six months. Ahold must present both the annual accounts and
the management report on or before November 29, 2003.

As confirmed on April 11, 2003, the company expects to complete
the audited consolidated financial statements by June 30, 2003.
Meeting this deadline is a requirement under the Ahold credit
facility announced on February 24, 2003.

The General Meeting of Shareholders also adopted the other two
proposals on the agenda: the appointments of Dudley Eustace to
the Corporate Executive Board and Jan Hommen to the Supervisory
Board. Eustace has been acting as interim Chief Financial Officer
since March 11, 2003. Ahold announced its intention to appoint
Jan Hommen, currently Finance Director of Royal Philips, on
February 27, 2003.

Henny de Ruiter, Chairman of the Ahold Supervisory Board,
announced that 361 shareholders representing approximately 235
million common shares attended the General Meeting in The Hague.

CONTACT:  AHOLD
          Corporate Communications
          Phone: +31.75.659.5720


UNITED PAN-EUROPE: Proposes to Buy Back Part of Share Capital
-------------------------------------------------------------
United Pan-Europe Communications NV wants to buy back 10% of its
outstanding share capital, and is asking shareholder to allow it
to proceed with the transaction.

Shareholders are due to meet for an annual meeting on June 26.

A preliminary proxy filed with the Securities and Exchange
Commission revealed that the share capital is for an 18-month
period ending Dec. 26, 2004.  The company is offering a price
between the value of the shares and 120% of the highest price
quoted on Euronext Amsterdam NV on any of five banking days
before the repurchase.

According to the filing, the Amsterdam-based company doesn't have
plans to repurchase any of its securities, but that the approval
gives it flexibility to make any repurchases if necessary.

United Pan-Europe Communications N.V., UGC's principal European
unit, is expected to complete a bankruptcy restructuring in the
second half of 2003.


===========
N O R W A Y
===========


PETROLEUM GEO-SERVICES: Announces 1st Quarter 2003 Results
----------------------------------------------------------
Petroleum Geo-Services ASA (`PGS`) (OSE: PGS; PINK SHEETS: PGOGY)
announced today its 1ST quarter 2003 results.

(In millions     Q1 2003   Q1 2002  % Change    2002
of dollars)

Revenues          $297.7    $227.3     31%     $994.0
Operating
profit (loss)       43.3      63.6    -31.9%   (629.5)
Net income (loss)  (13.3)   (178.3)  1240.6% (1,392.1)
EBITDA,
as defined (A)     143.5     116.3     23.4%    458.8
CAPEX (B)          (10.2)    (26.8)   -61.9%    (60.9)
Investments in
multi-client (C)   (45.4)    (72.5)   -37.2%   (190.4)
Cash flow defined
as (A+B+C)         $87.8     $17.0    416.5%   $207.5


Q1 Highlights:

-- Continued strong safety and regularity performance
-- Business restructuring and cost reduction program on track
-- Financial restructuring progressing, but no solution yet
-- Improved liquidity position
-- Atlantis sale completed in February

Q1 Operations:

-- 63 % increase in contract seismic revenue compared to Q1 2002
-- Average multi-client pre-funding increased to 64 %
-- 72 % increase in multi-client late sales compared to Q1 2002
-- Successful side-track well on Varg completed mid February
added about 12,500 barrels of oil production per day
-- Slightly lower revenues associated with Petrojarl Foinaven due
to bad weather conditions.

To See Full Earnings Release:
http://bankrupt.com/misc/Petroleum_Geo_Services.pdf

CONTACT:  PETROLEUM-GEO SERVICES
          Sverre Strandenes, SVP Corporate Communications
          Dag W. Reynolds, Director European IR
          Phone: +47 6752 6400
          Suzanne M. McLeod, U.S. IR
          Phone: +1 281-589-7935


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


NETIA HOLDINGS: Discloses Costs of Series I, II and III Notes
-------------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced that as at the
date of this report it incurred total costs of approximately PLN
73 million (the "2002/2003 Issue Costs") in connection with the
securities referred to in Netia's Polish prospectus dated April
17, 2002, published in Poland on December 2, 2002, as amended on
April 24, 2003, including the issue of series I, II and III
notes. In view of the complexity of the offering made pursuant to
the Prospectus, the 2002/2003 Issue Costs are recorded jointly
with regard to all securities offered pursuant to the Prospectus.

The 2002/2003 Issue Costs include:

-- the costs of preparing and executing the issuance of approx.
PLN 60 million;

-- the costs of drafting the Prospectus, including the advisory
fees, of approx. PLN 9 million;

-- the underwriter's fee under the service underwriting agreement
of PLN 20,000 quarterly;

-- other costs of approx. PLN 4 million.

The Company has incurred no costs in connection with promoting
the issuance. The above-mentioned amounts have been estimated
based on the received invoices and accrued expenditures related
to non-invoiced services.

Out of the total amount of the 2002/2003 Issue Costs, approx. PLN
26 million were recorded in the Company's accounting records and
financial statements as a reduction of the share premium recorded
on the issue of series H shares. The remaining costs were
recorded as the financial costs, with the exception of costs
related to the service underwriting agreement, which will be
recorded after their occurrence.

The average costs of executing the subscription for the
securities issued pursuant to the Prospectus, including series I,
II and III notes, equaled approximately the average cost of
subscription per series H, J and K share of PLN 0.18.


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


INTENTIA INTERNATIONAL: Proposes Repurchasing Convertible Notes
--------------------------------------------------------------
Intentia International AB's board of directors decided today to
make a cash offer to holders of the company's outstanding euro
convertible notes[1]. In conjunction therewith, and solely to
finance the Offer, the board of directors has also decided to
conduct a new share issue with preferential right for current
shareholders ("Rights Issue") contingent upon approval by the
shareholders at an extra general shareholders' meeting to be held
on June 11, 2003.

The purpose of the proposed transactions is to eliminate the
limiting effects on the company's business imposed by the Notes.

Intentia is offering the noteholders EUR 700 in cash (including
coupons) per Note with a face value of EUR 1,000.

The Offer represents approximately 30 percent premium relative to
current market quotations for a total of circa EUR 42 million
(circa SEK 386 million based on SEK/EUR exchange rate of
9.19[2]).

The Offer is subject to, among other things, the acceptance of
the Offer by noteholders holding Notes corresponding to at least
95 percent of the total principal amount[3].

The Rights Issue, which will contribute a maximum of SEK 421
million before transaction costs, will only be pursued if a
sufficient number of noteholders accept the Offer.

Each shareholder is entitled to subscribe for two new shares for
every share he or she currently owns, at a subscription price of
SEK 5.75 per share.

Intentia's CEO, Bj"rn Algkvist, will accept the Offer and
subscribe for shares corresponding to at least his quota in the
Rights Issue.

An extra general shareholders' meeting will be held on June 11,
2003 to approve the Rights Issue resolved by the board.
A teleconference will be held today, May 13, 2003. See details at
the end of this press release.

Background and Motive
During the 1990s, Intentia's goal was to create a strong
strategic position in a market assessed to have large potential.
Intentia succeeded in meeting this goal by creating a leading
position in its domestic market, creating a world leading product
and building a world leading product development organization, as
well as establishing 70 offices in 30 countries around the world
with some 3,500 customers. During the latter part of the 1990s,
the company completed a technology shift to Java, vital from a
competitive viewpoint. Revenues during this period increased to
more than SEK 3.6 billion. At the same time, creating this
position has had a negative impact on cash flow and earnings.

In recent years, Intentia has focused on increasing efficiency
within the organization, as well as on reducing costs in order to
increase profitability. Weakened global economic trends have made
it necessary to implement additional measures and the company has
intensified its work with reducing costs, including staff
reductions, changed compensation plan and a generally increased
cost awareness. One effect of these measures is that the break-
even point on an annual basis has been reduced by SEK 245 million
from close to SEK 3.9 billion in Q1 2002 to just over SEK 3.6
billion at the end of Q1 2003. Cash flow after investments during
the past 12 months amounted to SEK 162 million, reflecting the
positive effect of the efficiency measures. Intentia will
continue its work in this area.

Intentia's board of directors assesses that the company has
created a strong platform for future growth and improved
profitability even in a continuing weak market.

The enterprise application market is currently dominated by a
number of larger players, among which Intentia has an established
place. Investing in an enterprise application is a long-term,
strategic decision. For customers, decisive factors in their
choice of enterprise application supplier are the supplier's
product and service offering as well as its capacity to improve
and enhance these in the long run. The Notes have created
uncertainty about Intentia's direction and ability to develop its
offering in a positive direction for its customers. This
uncertainty has had an increasingly negative impact on the
company's competitive position.

For these reasons, the board of directors proposed the Offer and
Rights Issue whose purpose is to eliminate the uncertainty
created by the Notes. The board's judgment is that with a
stronger financial position, continued focus on cost
effectiveness measures and a more stable market, the company has
good prospects for reaching profitability in the short run and
for combining growth with good profitability in the longer term.

The board of directors believes that the proposed solution is
attractive to noteholders and shareholders alike. The Offer
provides a premium over the prevailing market quotations for the
Notes, while an improved financial structure will strengthen the
company's position in the long term, which in turn should be
favorable to current shareholders.

Convertible Notes Offer
Intentia's board of directors has decided to make an offer to
holders of the company's convertible notes listed on the
Luxembourg Stock Exchange. The Offer is subject to obtaining all
and any relevant regulatory approvals. In brief, the Offer means
that Intentia will pay EUR 700 in cash (including the coupon of 5
percent that is due for payment on July 15, 2003) for each
convertible note with a face value of EUR 1,000 with interest
bearing coupons corresponding to a premium of approximately 30
percent in comparison to the latest indicated market quotations
for the Notes on the Luxembourg Stock Exchange. The Offer
corresponds to 70 percent of the Notes' face value. The total
Offer corresponds to approximately EUR 42 million, or
approximately SEK 386 million calculated at a SEK/EUR exchange
rate of 9.19 SEK.[4] To the extent that all new shares are not
subscribed for, Intentia reserves the right to reduce the number
of Notes subject to the Offer pro rata.

The Offer is subject to the following principle conditions[5]:
The Offer is accepted by noteholders holding Notes corresponding
to at least 95 percent of the outstanding principal amount.
An extra general shareholders' meeting in Intentia must approve
the Rights Issue resolved by the board of directors and resolve
on other issues necessary to complete the Rights Issue, and
Intentia must complete the Rights Issue.

Intentia anticipates the Offer prospectus to be published in
Luxembourg on or about May 23, 2003 and subscriptions will be
accepted from May 26 to June 6, 2003. Assuming that a sufficient
number of noteholders accept the Offer, that Intentia's board of
directors resolves to pursue the Offer and that the Rights Issue
is completed, payment to the noteholders is expected to be made
approximately five days after the payment for the new shares has
been received by the company.

Rights Issue
In order to finance the Offer, Intentia's board of directors
decided today, contingent upon approval by an extra general
shareholders' meeting, to issue new shares with preferential
right for current shareholders. As a result, the total number of
outstanding shares in the company may increase from 36,573,200 to
a maximum of 109,719,600 shares. The Rights Issue is conditional
on that the Offer is pursued and other decisions required to
complete the Rights Issue. Since the price of SEK 5.75 per new
share is lower than the current par value per share, the
remaining funds will be transferred from the share premium
reserve. Assuming that the extra general shareholders' meeting
decides to change the share capital limitations and that the new
shares are thereafter issued and fully subscribed for, Intentia's
share capital will increase by a maximum of SEK 73,146,400 to
maximum SEK 1,097,196,000. Fully subscribed, the Rights Issue is
expected to generate SEK 421 million before deduction of costs
for the issue.

The entire Rights Issue proceeds are intended for financing the
Offer and its associated expenses.

The Rights Issue is subject to the approval by the extra general
shareholders' meeting, to be held on June 11, 2003. This meeting
will only be held if the board first decides to pursue the Offer.

Summary of Terms and Time Plan
The issue of new shares with preferential right for current
shareholders comprises a maximum of 73,146,400 shares, each at a
par value of SEK 10. The following is a summary of terms and time
plans for the Rights Issue:

Each old share entitles the owner to subscribe for two (2) new
shares at the subscription price of SEK 5.75 per share.
June 16, 2003 is the proposed record date for the subscription
rights, which means that the last trading day for the Intentia
shares including subscription rights is June 11, 2003.

Trading in subscription rights is anticipated to take place
during the period June 19-July 7, 2003.

The subscription period is expected to take place from June 19 to
July 10, 2003.

The prospectus and application form will be sent to Intentia's
shareholders beginning on approximately June 18, 2003.
The Rights Issue is subject to: approval by the extra general
shareholders' meeting, to be held on June 11, 2003; the board's
decision to pursue the Offer; and resolution and implementation
of the necessary changes to the articles of association.

Declaration of Intention
Bjorn Algkvist, Intentia's CEO, owns 5.1 percent of the company's
outstanding shares and will in conjunction with the Rights Issue
subscribe for shares at a minimum corresponding to his quota.

Intentia's profit-sharing fund, that owns15 percent of the
outstanding shares in the company, does not have the financial
resources to participate in the Rights Issue to the full extent
of its quota.

Extra General Shareholders' Meeting
The board of directors' decision on a Rights Issue and its
proposal to change the share capital limits is contingent upon
approval of the extra general shareholders' meeting to be held on
June 11, 2003. For additional information about Intentia's extra
general shareholders' meeting refer to the separate notice to
attend that will be published in a separate press release and
will then be available on Intentia's Web site: www.intentia.com.

Adviser
Carnegie serves as Intentia's adviser in connection to the Offer
and the Rights Issue.

About Intentia
Intentia is one of the world's leading suppliers of collaboration
solutions. Our vision is to become the leading global
collaboration solutions vendor by supplying our customers with
tomorrow's solutions today. Intentia offers a one-stop shop for
all collaboration needs within numerous industry segments. We
develop, implement and maintain our own solutions to produce the
highest possible level of customer satisfaction. The Intentia
Solution consists of applications covering customer relationship
management (CRM), enterprise management (ENM), supply chain
management (SCM), business performance measurement (BPM), e-
business and value chain collaboration (VCC). Intentia has more
than 3,200 employees and serves over 3,400 customers in the
manufacturing, maintenance and distribution industries via a
global network spanning some 40 countries. Intentia is a public
company traded on the Stockholm Stock Exchange (XSSE) under the
symbol INT B.

Visit Intentia's Web site at http://www.intentia.com

1 In this press release any reference thereto means the EUR
100,000,000 5 percent Subordinated Convertible Notes due 2006,
(of which EUR 60 million is outstanding).

2 SEK/EUR exchange rate was SEK 9.19 on May 12 2003. Unless
otherwise indicated herein, this exchange rate is the basis for
all SEK/EUR comparisons in this press release. The final exchange
rate at which the transaction will be implemented can vary from
the rate cited herein.

3 More precise details about the Offer and its terms and
conditions, including the rights of the company not to pursue or
to alter the terms and conditions of the Offer in accordance with
applicable law will be presented in an Offer prospectus in
accordance with applicable rules in Luxembourg.

3 In this press release any reference thereto means the EUR
100,000,000 5 percent Subordinated Convertible Notes due 2006,
(of which EUR 60 million is outstanding).

4 The Notes are only listed on the Luxembourg Stock Exchange. The
Offer to the noteholders will accordingly be conducted in
Luxembourg in accordance with applicable rules and regulations
there. There are no official reports issued on the trading and
closing prices as related to the Notes, but Datastream issues
reports on the trading prices of the Notes. Based on the
Luxembourg Stock Exchange closing rate of 54 percent (including
coupons) on May 12, 2003, the Offer corresponds to a premium of
approximately 30 percent.

5 More precise details about the Offer and its terms and
conditions, including the rights of the company not to pursue or
to alter the terms and conditions of the Offer in accordance with
applicable law will be presented in an offer prospectus in
accordance with applicable rules in Luxembourg.

CONTACT:  INTENTIA INTERNATIONAL AB
          Bjorn Algkvist, President and CEO
          Phone: +46 8 5552 5605
          Fax: +46 8 5552 5999
          Mobile: +46 733 27 5605
          E-Mail: bjorn.algkvist@intentia.se

          Hakan Gyrulf, Vice President and CFO
          Phone: +46 8 5552 5825
          Fax: +46 8 5552 5999
          Cell phone: +46 733 27 5825
          E-Mail: hakan.gyrulf@intentia.se

          Thomas Ahlerup
          Head of Corporate and Investor Relations
          Intentia International AB
          Telephone: +46 8 5552 5766
          Fax: +46 8 5552 5999
          Mobile: +46 733 27 5766
          E-Mail: thomas.ahlerup@intentia.se


INTENTIA INTERNATIONAL Calls Extra General Shareholders' Meeting
----------------------------------------------------------------
Intentia International AB (publ.) (XSSE; INT BE) will call to an
extra general shareholders' meeting to take place on Wednesday,
June 11, 2003 at 2 p.m. (CET) in the auditorium of the company's
headquarters at Vendevagen 89 in Danderyd, Sweden.

The EGM will consider the board of directors' proposal for a
Rights Issue as described in a press release published earlier
today.

The complete summons will be published on Wednesday, May 14, 2003
in Post -och Inrikes Tidningar, Svenska Dagbladet as well as on
Intentia's Web site http://www.intentia.com

About Intentia
Intentia is one of the world's leading suppliers of collaboration
solutions. Our vision is to become the leading global
collaboration solutions vendor by supplying our customers with
tomorrow's solutions today. Intentia offers a one-stop shop for
all collaboration needs within numerous industry segments. We
develop, implement and maintain our own solutions to produce the
highest possible level of customer satisfaction. The Intentia
Solution consists of applications covering customer relationship
management (CRM), enterprise management (ENM), supply chain
management (SCM), business performance measurement (BPM), e-
business and value chain collaboration (VCC). Intentia has more
than 3,200 employees and serves over 3,400 customers in the
manufacturing, maintenance and distribution industries via a
global network spanning some 40 countries. Intentia is a public
company traded on the Stockholm Stock Exchange (XSSE) under the
symbol INT B.

                     *****

In February, the company says cash flow from operating activities
was SEK -3 million for October to December due to a temporary
increase in accounts receivable at year-end.  It predicted net
revenue growth to be slow in 2003 owing to persistently weak
market.  To counter the sluggishness in the economic environment,
Intentia is cutting by at least SEK150 million for the year.

CONTACT:  INTENTIA INTERNATIONAL
          Thomas Ahlerup
          Head of Corporate and Investor Relations
          Phone: +46 8 5552 5766
          Fax: +46 8 5552 5999
          Mobile: +46 733 27 5766
          E-Mail: thomas.ahlerup@intentia.se
          Home Page: http://www.intentia.com


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


SAS GROUP: Issues Interim Report for January to March 2003
----------------------------------------------------------
First quarter in brief:

-- Operating revenue for the first quarter amounted to MSEK
13,710 (13,775), a decrease of 0.5%. For comparable units, and
adjusted for currency effects, operating revenue for the period
decreased by 4.5% or MSEK 616.

-- Operating revenue for Scandinavian Airlines amounted to MSEK
7,434 (8,576). Adjusted for currency effects, operating revenue
fell 11.2%.

-- Income before depreciation and leasing costs for aircraft
(EBITDAR) for the quarter was MSEK -398 (584).

-- Income before capital gains for the first quarter was MSEK -
1,939 (-1,313). Excluding costs for phasing out overcapacity,
income before capital gains was approximately MSEK -1,739 (-
1,313).

-- Income before tax amounted to MSEK -1,876 (-1,446).

-- CFROI for the 12-month period April 2002-March 2003 was 11%
(6%).

-- Earnings per share for the period January-March amounted to
SEK -9.72 (-8.17) for the SAS Group and equity per share was SEK
81.23 (83.80).

-- A decision has been made for additional cost reductions
amounting to MSEK 8,000, primarily within Scandinavian Airlines,
and for a further MSEK 1,000 within Subsidiary & Affiliated
Airlines. The full effect will be achieved by 2005.

-- In view of the uncertainty surrounding market development,
under present conditions the SAS Group, in line with what was
presented on February 12, 2003, is not issuing a detailed
assessment of earnings for the full year 2003.

Financial calendar
Interim Report 2, January-June 2003          August 11, 2003

Interim Report 3, January-September 2003     November 11, 2003

Year-end report 2003                         February 2004

Annual Report and Environmental Report 2003  March 2004

All reports are available in English, Danish, Norwegian and
Swedish and can be ordered from SAS, SE-195 87 Stockholm,
telephone +46 8 797 00 00, fax +46 8 797 51 10. The reports are
also available on the Internet: http://www.sasgroup.net

The SAS Group's monthly traffic and capacity statistics are
published on the sixth working day of each month.

CONTACT:  SAS GROUP
          Investor Relations
          Sture Stoelen
          Phone: +46 8 797 14 51
          E-mail: investor.relations@sas.se


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


AMP LTD: Ratings Down, Removed From CreditWatch, Outlook Neg
------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered the
insurer financial strength and counterparty credit ratings on AMP
Life Ltd. to 'A+' from 'AA-' and removed the ratings from
CreditWatch. At the same time, the counterparty credit ratings on
AMP Group Holdings Ltd. and AMP Bank Ltd. were lowered to 'BBB+'
from 'A-' and removed from CreditWatch.

The ratings outlook on AMP Life, AMP Group Holdings, and AMP Bank
is negative, given uncertainty on the demerger and capital
restructure, and the uncertain earnings outlook for the AMP
group, according to Kate Thomson, credit analyst, Financial
Services Ratings.

"The negative outlook on AMP Life, AMP Group Holdings, and AMP
Bank reflects the inherent uncertainties surrounding the
execution of AMP's plans, and the prevailing difficult operating
environment for life and funds management companies in Australia
and internationally, which is likely to constrain earnings. The
high proportion of hybrid equity makes the AMP group more
sensitive to earnings downgrades. If these risks are ameliorated,
the ratings outlook could revert to stable from negative," Ms.
Thomson said.

The insurer financial strength and counterparty credit ratings on
AMP's U.K. life entities -- Pearl Assurance PLC (Pearl), National
Provident Life Ltd. (NPL), and the NPI Ltd. (NPI) -- were also
lowered and removed from CreditWatch, with the three entities now
on negative ratings outlook. The ratings on Pearl and NPL were
lowered to 'BBB' from 'BBB+', and NPI was lowered to 'BBB+' from
'A'.

The downgrades follow an overall weakening in the AMP group's
financial strength, and encompasses AMP's May 1 announcement of
its intention to legally separate its Australian and U.K.
business into two companies, raise capital of up to A$1.5 billion
(proceeds now expected to be A$1.7 billion), pay down debt, and
sell equity investments held in its U.K. life operations.

"Although AMP's capital raising and equity sale initiatives will
improve group capitalization, the positive impact of these
initiatives only partially offsets the diminution in group
capital strength up to AMP's May 1 announcement. Furthermore, AMP
group's underlying earnings have been dampened by a difficult
operating environment, and reported profitability marred by a
material level of write-downs in the past six months," Ms.
Thomson said.


AQUILA INC.: Continues to Deliver on Its Restructuring Plan
-----------------------------------------------------------
KANSAS CITY, Mo., May 13, 2003 (BUSINESS WIRE) -- Continuing to
execute on its plan to return the company to its core utility
businesses, Aquila, Inc. (NYSE:ILA) today announced it has
terminated its 20-year tolling agreement with Acadia Power
Partners, LLC.

Under the toll, Aquila supplied the natural gas to a combined
cycle power plant in Eunice, La., and paid fixed capacity
payments for the right to sell into the wholesale market 580
megawatts of power generated by the plant. Acadia Power Partners
is a joint venture between Calpine Corporation (NYSE:CPN) and
Cleco Corporation (NYSE:CNL).

Under the termination agreement, Aquila paid Acadia $105.5
million to release Aquila from all of its obligations under the
toll. The transaction returned to Aquila $45 million in posted
collateral and eliminates $843 million in payments due to Acadia
over the remainder of the 20-year term. Aquila entered into the
contract with Acadia in 2000.

"Removing these obligations not only strengthens our balance
sheet, but, more significantly, moves us closer to completing our
exit from the energy merchant business," said Keith Stamm,
Aquila's chief operating officer.

"As we have indicated in previous filings with the Securities and
Exchange Commission, restructuring our tolling contracts is
critical to the long-term success of the company. We will
continue to work with our other major counter-parties to
implement mutually beneficial workout transactions."

Nearly a year ago Aquila announced that it would exit the energy
marketing and trading business and focus on its core natural gas
and electric utility businesses. Since then the company has
reduced its payroll by about 1,800 employees and sold assets for
more than $1.7 billion.

Based in Kansas City, Mo., Aquila operates electricity and
natural gas distribution networks serving customers in seven
states and in Canada, the United Kingdom and Australia. The
company also owns and operates power generation assets. More
information is available at www.aquila.com.

SOURCE: AQUILA, INC.
        Investor Contact:
        Neala Clark
        Phone: 816/467-3562


BAE SYSTEMS: Fitch Affirms Ratings, Off Rating Watch Negative
-------------------------------------------------------------
Fitch Ratings, the international rating agency, affirmed BAE
Systems plc's (BAE) 'BBB+' Senior Unsecured rating and 'F2'
Short-term rating. The ratings were removed from Rating Watch
Negative where they had been placed on 21 February 2003 in
connection with the downgrade to 'BBB+' from 'A-' (A minus)
following the company's preliminary results announcement on 20
February 2003. The rating Outlook is Negative. BAE is Europe's
largest defence equipment company and 20% shareholder in
aeroplane manufacturer Airbus SAS.

The ratings reflect BAE's position as one of the key
consolidators in the global defence business, its leading market
position and the substantial order book. The company continues
its expansion in North America, the single largest defence
market, where it is a tier two player. The agency's concerns
centre on BAE's performance in 2002, as a difficult trading
environment and substantial cost overruns and delays, mainly on
the Nimrod maritime patrol plane and Astute nuclear powered
submarine contracts, have put pressure on the company's cash flow
generation capability. Renegotiations of the two contracts
resulted in BAE having to make a GBP750 million provision, which
affected FY02 results. While Fitch believes the new contract
structure will benefit future contracts' performance by assigning
them a better balance of risk and reward, the agency is also
concerned that the recurring failure to meet project deadlines
could affect overall management credibility, eventually impacting
the long-term ability to win new projects.

While historically BAE's business has been strongly cash
generative, its 2002 performance put cash flow under pressure
resulting in an increase in the net debt position to GBP1.3
billion at FYE02 from GBP831m at FYE01, as the company had to
realise liquid assets to cover cash shortfalls because of lower
inflow from operating activities. Net Debt/EBITDA stood at 1.3x
at FYE02 (0.8x in FY01) when excluding the GBP750m contract
provisioning, which, although operational, is expected to be non
recurrent. Fitch anticipates that with a flat 2003 market outlook
it is unlikely that cash generation will be sufficiently strong
to allow the company to significantly reduce debt levels. The
agency believes that programme delays might lead to higher
financing needs in the short term. In addition, recent events
point out that BAE could be failing to stand by its past strategy
of balancing the above-average business risk of defence
operations with a conservative financial profile.

The Negative Outlook reflects the agency's concern about the
impact on profitability and cash flow generation capability of
the programmes division as lower export volumes are expected and
the bulk of the contracts have not reached production phase yet.
The commercial aerospace division could also impact financial
performance as market outlook is still uncertain and is not
expected to recover until the medium term.

BAE's total sales declined by 6.5% to GBP12.9bn for FYE02 because
of lower contributions in programmes, international partnerships
and commercial aerospace businesses. Operating profit before
goodwill and exceptionals decreased to GBP810m versus GBP956m in
FY01. The company reported a loss before interest of GBP410m
versus a profit of GBP617m in FY01.

CONTACT:  FITCH RATINGS
          Elisabetta Zorzi, Milan
          Phone: +39 02 87 90 87213
          Monica Klingberg Insoll, London
          Phone: +44 (0)20 7417 4281


BIG FOOD: Chief Executive Dismisses Criticisms of Shareholder
-------------------------------------------------------------
Big Food Group chief executive, Bill Grimsey, played down
criticisms lodged against its refurbishment program and move
upmarket by its biggest shareholder, Baugur.

Mr. Grimsey said: "They [Baugur] have always been supportive of
our strategy and happy with their investment."

Jon Asgeir Johannesson, the chief executive of Baugur, Iceland's
largest retailer, believes the City was too obsessed with top-
line growth, adding that he would prefer profits to revenue
growth, according to The Telegraph.

He said: "Iceland is going in the wrong direction. It will find
it hard to compete with Tesco and Sainsbury's at the higher end
of the convenience store business."

Baugur said it has regular talks with the BFG management, since
Mr. Johannesson spends three days a week in London.

But Mr. Grimsey said he had not spoken with Baugur recently
because the Big Food Group is in a closed period and expects to
report full-year results on May 29.

The report noted the absence of any reaffirmation of the support
Mr. Johannesson promised six months ago when Baugur began buying
shares.  Analysts took this as a signal that Baugur would support
a takeover for the group which endured four profits warning under
Mr. Grimsey.  The chief executive took over the helm of the
company two years ago.

Baugur owns 22.4% of Big Food, in addition to its 8% holdings in
House of Fraser, 3% of Somerfield, and 2.25% of Mothercare.

Big Food, which owns Iceland supermarkets and the Booker cash-
and-carry business, is spending GBP90 million refurbishing its
760 stores.  Shares in the company rose 6% to 83 p despite the
fall out with its shareholder.


BLYTH & BLYTH: Collapse of Pension Fund Scheme Under Inquiry
------------------------------------------------------------
An independent trustee for Edinburg engineering firm Blyth &
Blyth has ordered an investigation into the collapsed of the
company's pension fund scheme.

Around 150 former Blyth & Blyth employees stand to lose tens of
thousands of pounds of their annual pensions due to the collapse
of the fund.

Blyth & Blyth went into receivership last year with a whooping
GBP6 million deficit in its final salary pension scheme due to
falling stock markets.

The investigation being conducted is aimed at discovering whether
the fund was mismanaged.  If proven, former administrators could
possibly face charges.

David Boyd, partner at Watson Wyatt, however said: "Just because
there is a big deficit it doesn't necessarily mean there has been
any mismanagement. Most funds have remained heavily invested in
the equity market and because of the unprecedented falls that we
have seen there in the last three years it is quite conceivable
that a deficit of that order could arise."

The company was bought out this year, but the responsibility for
the old pension scheme remains with the former management.

Those who stand to get nothing out of their years of contribution
are those who had not retired by the time the company went into
receivership.  People who have paid for pension entitlements over
30 years are also affected.

"This case is particularly bad for staff and former staff because
all the money that was left has to be used for current
pensioners. That means people who might have been due to retire
even a day before the company went into receivership will lose
out," said Andy Scott, principal at Punter Southall actuaries,
who now has responsibility for the fund.

The independent actuary appointed to look into the pension scheme
is expected to report back by summer.


EMI GROUP: Appoints David J. Londoner as Non-Executive Director
---------------------------------------------------------------
EMI Group plc has appointed David J Londoner as a non-executive
director.

Mr Londoner spent most of his professional life with Schroder &
Co Inc and its predecessors, where he became a managing director
and built one of the leading media/entertainment research groups
on Wall Street. He subsequently held a similar post at ABN AMRO.
He is currently the general partner of The North River Company, a
family investment partnership.

Eric Nicoli, chairman of EMI Group, said: 'We are delighted that
David Londoner has agreed to join the Board. He has an
encyclopaedic knowledge of the global media and entertainment
industry and his vast experience in the North American investment
community will add an important dimension to the Board's
strategic deliberations.

'The Board has an on-going commitment to ensuring the highest
standards of corporate governance and David is a welcome addition
to our high quality non-executive team. His impressive powers of
analysis and his public commitment to improving accounting
standards and transparency will further strengthen our
performance in this important area of our responsibilities.'

Background

David J Londoner is the general partner of The North River
Company, a family investment partnership.

He spent the majority of his professional life at Schroder & Co
Inc, joining the predecessor firm, Wertheim & Co, in 1972 and
leaving when Schroder was sold in 2000. A managing director, he
built and managed one of the leading media/entertainment research
groups on Wall Street. Subsequently he held a similar position at
ABN AMRO, leaving in 2001.

He is recognized for calling major economic turning points in the
broadcasting and motion picture industries, and was a driving
force behind changing the accounting rules for motion picture and
television production companies.

Mr Londoner is a Chartered Financial Analyst; he holds a BA in
economics from Columbia College and a masters degree in finance
from Columbia Business School.

A native New Yorker, he is a member of the board of directors of
Meredith Corp and of the New York Futures Exchange, and he is a
Trustee of the American Museum of the Moving Image.

                     *****

EMI's shares were battered by intense competition and piracy in
the music industry.

The group was forced to restructure its recorded music arm after
worldwide music sales slumped as a result in part of Internet
piracy.

It lowered the fixed salary bill of its label managers by making
the remuneration more performance based.  It also tightened its
control of the money spend marketing new release.

CONTACT:  EMI GROUP
          Amanda Conroy, Senior VP, Corporate Communications
          Phone: +44 20 7667 3216

          Siobhan Turner, Vice President, Investor Relations
          Phone: +44 20 7667 3235

          BRUNSWICK GROUP LIMITED
          Patrick Handley
          Phone: +44 20 7404 5959


GLAXOSMITHKLINE PLC: Executive Pay Policy Under Attack From TUC
---------------------------------------------------------------
The Trades Union Congress is launching a campaign against
GlaxoSmithkline's executive pay policy which adopts the concept
of two-year rolling contracts for directors.

It is calling on institutional shareholders to vote against the
strategy at the company's annual meeting next Monday, according
to the Financial Times.

Recently, there has also been mounting speculations that the pay
package for Chief Executive Jean-Paul Garnier will be heavily
opposed a the meeting.  Under the policy, Mr. Garnier could be
given around GBP5 million in severance pay were he to leave the
company.

The unrest encouraged some shareholders to believe the pay
package could come close to being voted down, the report says.
The Trades Union Congress has already sent an alert to its 1,000-
strong network of trustees on pension funds encouraging them not
to support the scheme.

GlaxoSmithline, meanwhile, is offering a series of concession to
shareholders in a last-minute effort to have their support.  It
already has the influential US-based proxy voting ageny, ISS, on
its side, according to the report.  ISS considered the pay
policies "inexpensive" for the company.

In an attempt to allay criticisms, the drug company recently
announced plans to restructure its board and review its severance
packages.

CONTACT:  GLAXOSMITHKLINE PLC
           U.S. Analyst/ Investor inquiries
           Frank Murdolo
           Phone: (215) 751 7002

           Tom Curry
           Phone: (215) 751 5419

           European Analyst/Investor
           Duncan Learmouth
           Phone: (020) 8047 5540

           Anita Kidgell
           Phone: (020) 8047 5542

           Philip Thomson
           Phone: (020) 8047 5543


HAWTIN PLC: Fitness Equipment Manufacturing Business for Sale
-------------------------------------------------------------
Hawtin PLC announces the agreement to dispose of the business and
net operating assets of its fitness equipment manufacturing and
distribution business, Powersport International Limited
('Powersport').

Subject to shareholder approval, the disposal will
retrospectively pass ownership of Powersport to the purchaser
with effect from May 8, 2003.

Powersport, which has been loss making for a number of years, is
being sold, without its borrowings, to a company controlled by
members of its management team for a total maximum consideration
of EUR685,000 in cash. Initial consideration will be EUR575,000
at completion, the remainder of EUR110,000 being payable on a
deferred installment basis concluding at 2 years from 8 May 2003.
It is agreed there will, if necessary, be adjustments with regard
to (a) the extent to which the borrowings of Powersport as of 8
May 2003 vary from a central figure of EUR1.85 million and (b)
apportionment of accruals and prepayments of Powersport also as
of May 8, 2003. The deferred consideration may be reduced in
respect of the result of the collection of most of the ordinary
debtors of Powersport outstanding at May 8, 2003. Certain long-
standing debtors of Powersport are being retained by Hawtin.

The purchaser will also assume the obligations of Powersport
relating to the recent acquisition of the assets of the
'Powerjog' fitness business.

An impairment provision of EUR2 million was made against the
value of Powersport's assets in the year to 31 December 2002.
Consequently, at 31 December 2002, Powersport had net liabilities
of EUR900,000. In the financial year to 31 December 2002, the
business made a loss before taxation of EUR3.4 million on
turnover of EUR7.8 million. The loss before taxation included the
aforementioned impairment provision.

The Bridgend premises of Powersport are owned by Hawtin. The
purchasers have entered into a fifteen-year lease over these
premises at an annual rental of EUR145,000. At present,
Powersport pays an internal rent to Hawtin of EUR88,000 per
annum.

By selling Powersport, Hawtin will dispose of an undertaking that
has been incurring operating losses. Additionally, the initial
proceeds of the disposal will reduce group borrowings and,
therefore, group interest costs. Finally, by leasing the premises
at Bridgend to the purchaser on the agreed rental basis, the said
premises will start to yield an increased property investment
income to Hawtin.

In the Chairman's Statement included in the Preliminary
Announcement of Hawtin's results for the year ended 31 December
2002, released on 30 April 2003, it was announced that the Board
had received offers to purchase one or more subsidiaries which it
intended to pursue, this being in accordance with its policy
further to reduce the Company's borrowings. The disposal of
Powersport is consistent with this policy. Following the
completion of the disposal of Hawtin Park for EUR6.1 million, and
the recent sale of Ultrabronz, Hawtin continues to pursue
potential disposals that may lead to the reduction of borrowings.

Since the disposal of Powersport is to related parties, it is
subject to the approval of Hawtin's ordinary shareholders at an
extraordinary general meeting. A circular containing information
relating to the disposal of Powersport and an explanation as to
why the Directors of Hawtin consider it to be in the best
interests of Hawtin and its shareholders, together with the
notice of the necessary extraordinary general meeting, will be
despatched to shareholders as soon as practicable.

CONTACT:  POWERSPORT INTERNATIONAL LTD.
          Queens Road, Bridgend Industrial Estate
          Bridgend, South Wales
          CF31 3UT, Uk
          Phone: +44 (0) 1656 678910
          Fax: +44 (0) 1656 661382
          E-mail: info@powersport-int.co.uk


MACFARLANE GROUP: Issues Statement of Chairman Sir John Ward
-----------------------------------------------------------
Statement of Sir John Ward, Chairman of Macfarlane Group, to the
Annual General Meeting held on Tuesday 13 May 2003 at 12 noon.

2002 was a difficult year for the Group with disappointing
results, which were unacceptable to the Board. The problems were
primarily a result of the delays and costs associated with the
acquisition, management of change and integration of the
distribution businesses, and the absorption of losses following
the Brands acquisition. In this address, I will comment on the
results and their implications under six headings:

(1) Economic backdrop;

(2) Distribution integration;

(3) Brands;

(4) Remainder of group businesses;

(5) Governance;

(6) Property realization and dividends.

FIRST

The economic situation throughout 2002 was uncertain and weak,
particularly in the second half of the year. The continuing
contraction of manufacturing in the UK is well documented, as is
the massive erosion in stock market values both here and across
the world, which has led to a lowering of confidence. In addition
the severe downturn in electronics manufacturing in Scotland, and
the continuing weakness of this sector across the world, has led
to massive pressure on margins and volumes. Although not the
principal cause of the poor results in 2002 these trends have had
a significant impact on the Group, in particular the collapse of
electronics, which resulted in the Group losing over GBP20
million of profitable turnover between 2000 and 2002. Economic
prospects in 2003 continue to be uncertain, with the first
quarter showing weakness across all sectors and geographic areas,
compared to the same period in 2002.

SECOND

The distribution strategy is to create critical mass and be the
industry leader in providing packaging, bespoke manufacturing and
solutions in the UK. To achieve this A1 Packaging and National
Packaging were acquired, with the logical objective of
integration with the Macfarlane Merchanting and Packaging
divisions. This integrated business would require 15 Regional
Distribution Centres across the UK backed by a single advanced IT
system, and two state of the art manufacturing facilities.

The continuing erosion of the manufacturing sector in the UK has
led us to extend the strategy to offer to support those
international OEM companies, as they now have to service their
customers in the U.K., USA and Western Europe from remote
assembly locations in the Far East. The acquisition of Brands
together with our existing investment in Hungary was directed at
extending the Group's capability to offer a solution to these
international customers.

The strategic direction is clear and continues to be supported by
the Board, but the implementation schedule and management of the
change resulted in a significant range of problems, which are the
fundamental reasons for the poor results in 2002. In summary
these problems have been:

-- Delays in securing the new locations and the completion of the
IT installation.

-- High staff turnover and dislocation through the integration
process.

-- The magnitude of the change to be managed, leading to variable
service levels.

Whereas the implementation should have been substantially
completed in 2002 with benefits beginning to appear in the latter
part of that year, we will not now achieve that key objective
until the end of 2003. Currently 12 of the 15
Regional Distribution Centres are operational and we have good
teams of people ready to take advantage of the opportunity.

Our very sincere and very real thanks must go to our regional
directors and managers and their staff, some of whom are with us
today manning the displays, who have given tremendous commitment
in difficult circumstances, coping with the problems which the
management of change imposed upon them. I with the non-executives
have visited the distribution locations and can vouch for that
commitment, and the enthusiasm to get on with achieving the
strategic direction and building quality of service levels. Thank
you to them all.

THIRD

The acquisition of Brands had two objectives. One was to
strengthen our presence in the west coast of North America, by
adding a capability in Mexico to the existing investment in
California. The second was to add a capability to the group,
which would facilitate product tracking in western markets, for
manufacturing companies who had moved their assembly locations to
the Far East.

This would include unique web-based project management capability
for warranty returns, product visibility and financial
management. There are currently expressions of interest from
blue-chip global companies, which are in the process of being
quantified.

The other part of Brands, based in Scotland, has been impacted by
the global electronics slowdown and has made losses. These losses
continue into 2003, and it was this continuing situation,
together with ongoing uncertainty in world electronic markets,
that caused the board to write off the goodwill paid for Brands
in 2002 as a matter of prudence.

FOURTH

The rest of the businesses were profitable in 2002, but are
feeling the economic impacts of the general slowdown. To comment
on each:

4.1 Labels continued to perform well in 2002 and maintained its
profit levels, albeit at lower margins. Our patented product,
ReSeal-It has done well in Ireland and we are now exploring
opportunities in Australia and Europe.

4.2 Plastic moulding rebuilt its profits from the low base in
1999/2000 with supplies primarily to the pharmaceutical and oil
industries.

Volumes are dependent on the economic pressures on these two
sectors.

4.3 Internationally, our operations in East Europe and North
America, maintained profitability in 2002 the latter benefiting
from an acquisition in California. These locations primarily
supply the electronics industry, which is exerting pressure on
margins, and in some cases subcontracting manufacturing to Far
East subcontractors. The integration of Brands will be important
in continuing to offer support to these international businesses.

FIFTH

In agreement with the Board, the Group Chief Executive, Iain
Duffin, stepped down last week and is not today offering himself
for re-election to the Board.

The recent period has been difficult with disappointing results,
which were unacceptable to the Board. The Board agrees with Iain
Duffin that now is the right time to identify a new Chief
Executive to take the Group forward. As you will know from the
Results Announcement on 25th March, the Board initiated a process
earlier in the year to find a Chief Operating Officer with the
capability to become Chief Executive. This process is well
advanced and I have begun to meet potential candidates, a number
of whom clearly have the ability to be Chief Executive. Those who
may have read the advertisement, which has been supported by a
search process, will have noted the requirement for sales and
marketing capability, which is key to delivering the next phase
of the strategic direction. The exact timing of any appointment
will depend on suitability and release availability. The Board
has agreed with Iain Duffin that he will provide support in
specific areas should this be required in the short term.

During the interregnum I will act as Executive Chairman,
supported by the Corporate Team of Graham Casey, Andrew Cotton
and John Love. As Bob Speirs, the senior independent director, is
presently recuperating following an operation, Archie Hunter will
act as Senior Independent Director.

SIXTH

Property and dividend. As you will know the group is reducing
from over 45 locations to 15. This is a major management task,
which involves giving up leases and selling sites, both of which
bring challenges. For the sites being sold, they break into three
categories

-- straight sale with no change of use

-- sale with simple change of use

-- complex planning consents

Categories one and two are progressing well and broadly to plan.
Category three, which by its nature brings the greatest gain, is
a much longer and more complex process, sometimes with local
political as well as planning implications. One of the most
significant for us is at Braehead, where the Scottish Executive
are involved in the determination of the roads solution which
involves several other consents as well as our own application.
The executive team has continued to work through this process
over the last nine months, which has caused month-by-month delays
in finalising the transaction. Currently we await a final traffic
resolution from the Scottish Executive for the development of the
whole area, before any transaction can be finalized.

As we have stated before, it has been the Board's objective to
use the profits from property disposals to support both earnings
and dividends in the period of reorganization. The longer and
more difficult process of change within the business, coupled
with delays in certain property disposals, means that we will
have to consider very carefully the appropriate level of
dividends for 2003 in the light of the progress we make on
improving trading and disposing of properties.

OUTLOOK

Our outlook will be determined by three factors. The first is the
U.K. and global economic environment, which has an effect across
all our businesses. This is currently unclear and will probably
remain weak during the remainder of 2003.

This weakness is reflected across all our businesses.

The second will be the completion of the integration of the
distribution businesses during 2003, and the subsequent success
in achieving sales and financial recovery. Subject to the
economic situation, we expect that the Regional Teams will
rebuild the business through the second half of 2003, with the
first manufacturing centre of excellence established and all
Distribution Locations in place by the end of the year. The
second manufacturing centre of excellence will be complete in the
first half of 2004.

The third will be the resolution of the continuing losses in the
U.K. part of Brands, and the securing of international contracts
for the use of the Viper Software owned by Brands. At this time
there are several potential expressions of interest and a pilot
program underway for a major customer in the Americas.
This situation will resolve over the next few months.

The board believe the correct course for the group is to complete
the current investment program as quickly as possible, and to
focus our efforts on satisfying our customers and growing the
top-line revenues. The new CEO is profiled to have sales and
marketing capability, and will have the absolute objective to
support the Regional and Managing directors and their teams in
achieving this objective. Again, I would like to repeat my thanks
to our staff for their commitment through a difficult year and
for their enthusiasm to tackle the problems and deliver their
budgets and strategic objectives.

In taking on the role of Executive Chairman, I have carried out
an immediate review of expectations for 2003. Our present
expectation is that turnover in distribution will be lower in
2003 than 2002, more so in the first half rather than the second
half, with turnover in our other businesses as a whole broadly in
line with last year. At this early stage in the year it is
difficult to predict with accuracy the results for 2003, but our
immediate challenge will be to contain the losses before taxation
in the first half of this year at a level similar to the GBP6.3
million incurred in the second half of 2002. Thereafter we expect
to see a gradual improvement in the results in the second half of
this year. However this takes no account of property gains, which
we are working to achieve but the timing of which remains
uncertain for the reasons already given.


As I have said, the results in 2002 and into 2003 have been
disappointing and have not achieved the expectation set by the
Board. 2003 is proving to be a challenging year for the reasons I
have mentioned, but as the strategic platform is completed, we
expect the company to be better positioned at the end of it than
at the beginning as the disruption arising from the restructuring
reduces and the integration begins to deliver benefits.

Over the next three months, I will work with the businesses, to
review critical areas of the Groups Operation to ensure budgets
and expectations for the current year and 2004 are set at
challenging but realistic levels. This analysis and outlook will
be a central part of my report to you with the half-year results
in August and will set the basis for the performance objectives
of the new Chief Executive Officer.

Going forward, our focus must be to complete the strategic
investments and to select a new Chief Executive who will have the
ability to build on this platform and release the enormous
potential of the very committed people who work in every part of
Macfarlane Group.

With the majority of the change now behind us the focus can
switch from internal issues to external customer service and
revenue. We have enthusiastic teams in every part of the Group
eager to grasp these challenges and opportunities. They will have
the full support of the Board over the interregnum period and
beyond that the leadership of the new Chief Executive.


MARCONI PLC: Confirms Currency Election on New Senior Notes
-----------------------------------------------------------
Marconi plc announces that the new senior notes to be issued
pursuant to the Marconi Corporation plc (Corp) scheme of
arrangement will be denominated solely in US dollars.

Insufficient elections were received for new senior notes to be
issued in Euros. The aggregate amount of new senior notes to be
issued will be $717.1 million (#450 million).

Under the terms of the plc and Corp schemes of arrangement the
scheme rate has now been fixed at #1 per $1.6107 of admitted
scheme claim and #1 per 1.3949 of admitted scheme claim. The
aggregate amount of potential scheme claims (including the
reserves set for each of the schemes), calculated at the scheme
rate, are estimated to be #5.3 billion at Corp and #4.9 billion
at plc.

About Marconi plc

Marconi plc is a global telecommunications equipment and
solutions company. The company's core business is the provision
of innovative and reliable optical networks, broadband routing
and switching and broadband access technologies and services. The
company's customer base includes many of the world's largest
telecommunications operators.

The company is listed on the London Stock Exchange under the
symbol MONI.  Additional information about Marconi can be found
at http://www.marconi.com.

CONTACT:  MARCONI PLC
          David Beck, Public Relations
          Phone: +44 (0) 207 306 1771
                 +44 (0) 207 306 1490
          E-mail: joe.kelly@marconi.com
          Joe Kelly Heather Green, Investor Relations
          Phone: +44 (0) 207 306 1735
          E-mail: heather.green@marconi.com


SPICES FINANCE: Fitch Downgrades Series 2 (Peas) to 'CC'
--------------------------------------------------------
Fitch Ratings, the international rating agency, has downgraded
Spices Finance Ltd Series 2 (PEAS) notes to 'CC' from 'CCC+'.

The issuer, Spices Finance Limited, a special purpose vehicle
incorporated with limited liability in Jersey, currently provides
protection to Morgan Stanley on a USD319 million reference
portfolio of 92 reference entities with a weighted-average credit
quality equivalent to a 'BBB-' (BBB minus) rating using Fitch's
rating factors. The reference portfolio amount has decreased from
the initial USD330m to USD319m following credit events on Enron,
Railtrack and Teleglobe.

The credit events to date have eliminated essentially all the
credit enhancement protecting these notes. Any further credit
event will immediately trigger a downgrade and, in all
likelihood, a loss in principal on the notes. Severe
deterioration in the credit quality of the underlying portfolio
has significantly increased the likelihood of a further credit
event. At closing the reference portfolio featured four sub-
investment grade assets. This has now risen to 23, and the Fitch
Factor has increased from 13 at closing to 22 today, equivalent
to a rating of 'BBB-' (BBB minus). Fitch will continue to monitor
this transaction closely and will downgrade immediately upon
receipt of a further credit event notice.

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

         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.

This material is copyrighted and any commercial use, resale or
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