---

         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 22, 2003, Vol. 4, No. 100


                             Headlines


B E L G I U M

LERNOUT & HAUSPIE: Committee's Supplement to First Amended Plan


F I N L A N D

FINNAIR PLC: Q1 Result in Red; Same Color Seen for Annual Figures


F R A N C E

RHODIA S.A.: Moody's Assigns, Confirms Ratings of Notes, Debts


G E R M A N Y

BERTELSMANN AG: EUR650 Million Eurobond Issue Oversubscribed
BERTELSMANN AG: Outlook Still Dim After Successful Asset Sale
DEUTSCHE TELEKOM: Unveils New Course at Shareholders' Meeting
DEUTSCHE TELEKOM: Shareholders Confirm Board Appointments
DEUTSCHE TELEKOM: Faces EUR12.5 Million Fine for Unfair Practices

EASY SOFTWARE: Credits Restructuring, Cost Cuts for Narrow Losses
PLENUM AG: Returns to Profit, But Revenue Still Weak
RSE AG: Records EUR88 Million Loss for Fiscal Year 2002
VIVANCO GRUPPE: Works Council Accepts Management Offer


I R E L A N D

ELAN CORP: Reaches Settlement with King Pharmaceuticals


L U X E M B O U R G

MILLICOM INTERNATIONAL: Overseas Subscribers Now Number 3 Million


N E T H E R L A N D S

KONINKLIJKE AHOLD: Expected to Writedown Foodservice Goodwill
KONINKLIJKE AHOLD: Corrects Sales Figures for 2002 and 2001


P O L A N D

BANK MILLENNIUM: Financial Strength Rating Downgraded to D-


S W E D E N

SKANDIA: Issues Interim Report for January - March Period


S W I T Z E R L A N D

SWISS: Appointment of Svensson Completes Corporate Restructuring


U N I T E D   K I N G D O M

AVIONIC SERVICES: To Raise Fund Via Loan Note, Share Issuance
CORUS GROUP: New CEO Considers Selling Teesside Steel Plant
EMI GROUP: Posts Preliminary Results for Fiscal Year 2002
GALLAHER GROUP: Announces Plans to Restructure European Operation
INFINEON TECHNOLOGIES: Wants to Take Over Norwegian SensoNor

INDIGOVISION GROUP: Court OKs Plan to Return Cash to Shareholders
JOHN PARTRIDGE: Joint Administrators Seek Investors
MARCONI PLC: Moody's Investors Service Withdraws Debt Ratings
PARKINSON ENGINEERING: Administrators Offer Business for Sale
ROYAL & SUNALLINCE: Lender's Mortgage Insurance Rating Withdrawn

ROYAL & SUNALLIANCE: RMBS With R&SA Mortgage Insurance Affirmed
SHETLAND NORSE: Receivers Offer Assets, Business for Sale
SPIRENT PLC: Chairman Says Trading Performance Expected
WUNDERCARS LIMITED: Receivers Offer Business for Sale


                             *********


=============
B E L G I U M
=============


LERNOUT & HAUSPIE: Committee's Supplement to First Amended Plan
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Lernout & Hauspie Speech Products N.V. and Dictaphone
Corp., and its debtor-affiliates, represented by Joseph J.
Bodnar, Esq., at Monzack & Monaco PA, provides a supplement to
their First Amended Plan to incorporate:

        (1) the Assumption and Assignment Schedule;

        (2) the Plan Administration Agreement;

        (3) the Litigation Trust Agreement;

        (4) the Mutual Release Agreement among L&H NV and
            L&H Holdings dated June 26, 2002; and

        (5) the Litigation Monitoring Committee Members.

The Committee reserves the right to modify or amend the Plan
Supplement in any manner.

                Assumption and Assignment Schedule

The Committee states that the Amended Plan provides that all
executory contracts and unexpired leases not specifically listed
on their Schedule are to be deemed automatically rejected as of
the Confirmation Date.

At present, the Committee believes that L&H NV does not intend
to assume any executory contract or unexpired lease in
accordance with the Plan and, therefore, includes no listing for
this Schedule.  However, the Committee expressly reserves the
right at any time on or before the Confirmation Date to amend
their Schedule to delete or add any executory contract or
unexpired lease."

This may well mean that the non-debtor party to any lease or
contract not already assumed or rejected must wait until the
Confirmation Date to determine the legal status of their
contract or lease.

                Plan Administration Agreement

L&H NV and Scott L. Baena, Esq., will enter into the Plan
Administrator Agreement.  Since this is a liquidating Plan, Mr.
Baena will be the sole officer and director of Post-Effective
Date L&H.  His duty will be to administer the Plan according to
its terms and the Administration Agreement.  The Plan
Administrator may also serve concurrently as the Litigation
Trustee.

Title to the Chapter 11 Assets are vested in Post-Effective Date
L&H as of the Effective Date of the Plan.  After that date,
Post-Effective Date L&H may use, acquire and dispose of property
free of any restrictions imposed under the Bankruptcy Code or
Rules, and the Bankruptcy Court.  As of the Effective Date, all
of the Chapter 11 Assets are to be owned free and clear of all
liens, claims or encumbrances or interests, except as
specifically provided in the Plan, by Post-Effective Date L&H.

The liabilities and obligations to make the Distributions
required by the Plan are to be assumed by Post-Effective Date
L&H.  Otherwise, the Post-Effective Date L&H exists only to
liquidate the L&H NV estate's remaining assets, obtain insurance
and prepare and file all tax returns, prosecute all causes of
action pending or to be filed in the future, reconcile claims,
pay administration expenses, and carry out the provisions of the
Plan as confirmed.

The Plan Administrator is to prepare, as soon as reasonably
practicable, a register of the holders of Litigation Trust
Beneficial Interests and deliver that to himself as Litigation
Trustee. Thereafter, the Plan Administrator is to promptly
notify himself of any disputed claims that become allowed,
specifying the extent to which the holder of the claim is
eligible to receive Litigation Trust Beneficial Interests.

                Litigation Trust Agreement

The Litigation Trust Agreement creates a liquidating trust for
federal income tax purposes, and is between L&H NV and Mr. Baena
in his alternate position as Litigation Trustee.  The Plan
provides for the establishment of a Litigation Trust to initiate
and prosecute all pending and future causes of action on behalf
of the creditors of the L&H NV estate holding Claims in Classes
3 and 4.  The proceeds of that litigation form a large part of
the distribution, after payment of the costs of litigation and
administration of the Trust.

As of the Effective Date, the Lernout & Hauspie Speech Products
N.V. Litigation Trust will receive the transfer and assignment
of all of the estate's right, title and interest in all assigned
causes of action and any proceeds received by the Debtor or
Post-Effective Date L&H, together with all documents connected
with those actions, free and clear of all liens, claims or other
interests in the trust assets, except as provided in the Plan.

Mr. Baena will be assisted and advised in the Trust's operations
and functions by the Litigation Monitoring Committee.

           Mutual Release Agreement among L&H NV and
              L&H Holdings dated June 26, 2002

The Mutual Release Agreement between Holdings and L&H NV was
included in the First Amended Plan of Liquidation by L&H
Holdings (USA), Inc., and is part of that confirmation process.
Further, the release was included in a separate motion filed
jointly by these Debtors and previously approved by the Court.

           Litigation Monitoring Committee Members

The members of the Litigation Monitoring Committee are:

        (1) Michael Curran of KBC Bank;
        (2) A. Edwin Matthews of Fortis Financial Services; and
        (3) Albert V. DeLeon of Dexia. (L&H/Dictaphone
        Bankruptcy News, Issue No. 42; Bankruptcy Creditors'
        Service, Inc., 609/392-0900)


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


FINNAIR PLC: Q1 Result in Red; Same Color Seen for Annual Figures
-----------------------------------------------------------------
Finnair's turnover in the first quarter of the year grew by 2.4 percent to
400 million euros.  Due to increased costs, low demand and the ongoing price
competition, the result after financial items was -14 million euros.

"The airline industry, which had not yet fully recovered after the events of
September 2001, has been hit hard by the tensions of the global situation.
Demand made a downward turn at the same time as heated competition quickly
crumbled airlines' profitability," says President and CEO Keijo Suila.

Despite the initiated savings measures, the result for the entire year is
expected to be negative.

"The SARS epidemic caused demand, which was already low, to plummet and is
quickly clouding development in the second quarter. We have already stated
that the result for the entire year will be in the red. The depth of the
loss depends on the development of the SARS situation. The foreseeable
impact on the result is already tens of millions of euros," he said.

The operating loss, excluding capital gains, weakened to 27 million euros.
Capital gains resulted mainly from the sale of one MD-11 aircraft. The
airline continues to have almost no net debt and cash reserves of 317
million euros. The gearing ratio is still above 40 percent.

"Our basic economic health is still among the best in the industry, which
gives us endurance. We will implement the savings and necessary structural
changes in order to safeguard our competitiveness in the future as well,"
Mr. Suila said.

Finnair's scheduled passenger traffic demand rose by 3.5 percent and
capacity by 9 percent, which led to a fall in passenger load factor by 3.2
percentage points to a little under 60 percent. Unit revenues for passenger
traffic decreased by almost eight percent in the first quarter. Development
was weakest in European and North Atlantic traffic.

The number of business class passengers on Finnair's international scheduled
flights fell by 4.3 percent in the first quarter. The proportion of business
class travel in international scheduled traffic is 22.3 percent.

Unit costs for flight operations decreased by 3.1 percent, but the Group's
operating expenses increased by 8.0 percent. Despite the 2.6 percent
decrease in the number of personnel, personnel expenses increased by almost
eight per cent due mostly to an increase in pension costs.

Savings ensure economic health

Lay-offs of up to six weeks and cuts in capacity will be implemented with
the aim of achieving short-term reductions in costs. Fixed-term employment
contracts will not be renewed and recruitment will be frozen, while only
essential investments will be made.

Capacity in terms of available seat kilometers will be reduced by one
percent during April-September, but the number of flights will decline
around seven percent. The level of available seat kilometers will be
affected by flights to Osaka, which begin in June, the additional Tokyo
flights during the summer season, and by the service to Shanghai, which
starts in September.

"At Finnair we have been able to make corrective maneuvers thanks to
adjustments and vigorous savings measures begun in time. Beijing operations,
which are most affected by SARS, have been cut back and capacity has been
added in the Japanese market," President and CEO Suila says.

The company has also initiated a 160 million euro cost-cutting program, with
the aim of achieving permanent changes in cost and operating structures. The
full financial impact of the cost-cutting measures will begin in 2005. The
measures will focus particularly on lowering fixed costs, but variable
operating costs, such as travel agency sales commissions, will also be cut.

Personnel costs will be cut by around 60 million euros, which corresponds to
a reduction of 1,200 employees over a two-year period. Of this number, more
than 200 jobs will go in travel agencies belonging to the Finnair Group.
Relative to Finnair's capacity plans in the next few years, the 160 million
euro savings target means an improvement in unit costs of around 15 per
cent.

CONTACT:  FINNAIR PLC
          Petri Pentti, CFO
          Phone: +358 9 818 4950
          Christer Haglund, VP Corporate Communications
          Phone: +358 9 818 4007


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


RHODIA S.A.: Moody's Assigns, Confirms Ratings of Notes, Debts
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the 7-year 144A Senior
Notes issuance by Rhodia S.A. to reflect the full pari-passu status of the
notes with existing senior unsecured debt of the French company.

The rating agency also confirmed the current senior unsecured debt ratings
of Rhodia S.A. at Ba2/NP and the rating for the senior subordinated notes to
be issued by Rhodia S.A. at Ba3. The outlook for the ratings is stable.

The Ba2/NP rating is for the EUR1.8 billion MTN program of Rhodia S.A.

Rhodia is one of the world's leading manufacturers of specialty chemicals.
Providing a wide range of innovative products and services to the consumer
care, food, industrial care, pharmaceuticals, agrochemicals, automotive,
electronics and fibers markets, Rhodia offers its customers tailor-made
solutions based on the cross-fertilization of technologies, people and
expertise. Rhodia subscribes to the principles of Sustainable Development
communicating its commitments and performance openly with stakeholders.
Rhodia generated net sales of EUR6.6 billion in 2002 and employs 24,500
people worldwide. Rhodia is listed on the Paris and New York stock
exchanges.

CONTACT:  RHODIA SA
          Investor Relations
          Marie-Christine Aulagnon
          Phone: 33-1 55 38 43 01
          Fabrizio Olivare
          Phone: 33-1 55 38 41 26


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


BERTELSMANN AG: EUR650 Million Eurobond Issue Oversubscribed
------------------------------------------------------------
Bertelsmann has successfully placed a 650-million Euro- bond in the market.
The Eurobond, issued by Bertelsmann U.S. Finance, Inc., has a term of seven
years and pays a coupon of 4.625 percent. The reoffer price is 99.663
percent.

Bertelsmann had announced the Eurobond on Monday, and projected a volume of
EUR500 million. The issue was well oversubscribed, with bids from more than
130 investors. Bertelsmann took this strong investor interest as an
opportunity to increase the bond to EUR650 million. The bookbuilding was
already closed on Tuesday.

The Eurobond is issued under Bertelsmann's existing Euro Medium Term Note
(EMTN) program, which has a volume of EUR3 billion and is rated BBB+
(Standard & Poor's) and Baa1 (Moody's). The bond will be traded on the
Luxembourg stock exchange. Citigroup, Deutsche Bank, Dresdner Kleinwort
Wasserstein and JP Morgan were the bookrunners for the transaction.

Bertelsmann CFO Siegfried Luther commented: "The successful placement of the
Euro- bond gives our company's financing a solid grounding for the long
term. It improves the maturity structure of our credit lines, and continues
the transfer of our financing from bank loans to the capital market. The
investor's attention has underscored the great interest that the market has
in Bertelsmann. By placing the Eurobond, we sharpen our image among
investors and strengthen our approach to the capital market."

CONTACT:  BERTELSMANN AG
          Analysts and investors contact:
          Verena Volpert, Corporate Finance/Treasury
          Phone: +49-5241-80-2342


BERTELSMANN AG: Outlook Still Dim After Successful Asset Sale
-------------------------------------------------------------
Moody's says trading environment for Bertelsmann's key activities "remains
tough" and its domestic market remains threatened by a further economic
downturn.

The gloomy outlook looms even after the operating media and media services
company successfully reduced debt burden incurred with the late 2002
acquisition of music company Zomba through the disposal of its scientific
publishing unit Bertelsmann Springer to financial investors for Euro 1.1
Billion.

Due to challenging market conditions, Moody's says, "the company's ability
to deliver on its commitment to exceed 2002's operating EBITA of Euro 936
(before unusual items) will depend in particular on a continuing turn-around
of the company's Direct Group (book and music clubs and e-commerce)."

The rating agency also said it expects to assign a Baa1 rating with a stable
outlook to Bertelsmann U.S. Finance, Inc.'s proposed issue of Euro 500
Million (guaranteed by Bertelsmann AG) under its Euro 3 Billion Debt
Issuance Program.  The rating is supported by "clearly defined financial
comfort targets which Bertelsmann's executive management and board are
committed to attain and defend."

According to Moody's, the rating and outlook were assigned with the
expectation that "the Springer transaction closes as currently agreed, the
de-leveraging effect of the Springer sale can essentially be retained, and
the company can continue to translate its operating profits into meaningful
amounts of free cash flow after capital expenditures."

Moody's particularly hopes the consolidation of Bertelmann's music
subsidiary BMG with another global industry player would not lead to any
material debt-funded cash outflows for the group.


DEUTSCHE TELEKOM: Unveils New Course at Shareholders' Meeting
-------------------------------------------------------------
-- Deutsche Telekom to become the leading, most innovative company in its
industry

-- Focus on debt reduction and earnings-oriented growth - The four divisions
continue development of their brands

-- Chairman Ricke declares openness for transparency

-- T-Com trims product portfolio to around 20,000 items

-- T-Mobile continues to expand multimedia services

-- New organizational structure for T-Systems increases strength and
customer orientation

-- T-Online taps existing customer base further

-- Revenue increased to EUR13.6 billion in first quarter of 2003

-- Consistent reduction of debt by around EUR8 billion

-- At least break even for the 2003 financial year

Deutsche Telekom is to become the leading innovative service provider of the
information and telecommunications industry. This was Kai-Uwe Ricke's
message at Deutsche Telekom's 2003 Shareholders' Meeting in Cologne,
underlining the Board of Management's new course. The chief objective is to
reduce the level of the Group's debt. At the same time, Mr. Ricke emphasized
the particular significance of the company's new corporate and management
culture: "It is particularly important for me to face our shareholders and
employees with openness and credibility. The only way for us to progress
successfully with the restructuring of our company is to generate the
necessary transparency."

Mr. Ricke particularly emphasized three points necessary for achieving the
Group long-term goals and for generating earnings-oriented growth: quality,
innovation and efficiency.

"Most important for me is not how we see ourselves, but how our customers
see us; how satisfied our customers are with the quality we produce. One of
our goals is to tighten production planning for new products; at the same
time, we will invest our budgets for innovation, research and development in
primary growth areas. At the center of our efforts is data communications,"
said Mr. Ricke, Chairman of the Board of Management of Deutsche Telekom in
Cologne. "In all our efforts, we must not lose sight of costs. They must not
increase in parallel with our growth - on the contrary. If we are to
increase our profitability, they must continue to fall. And we can only
achieve that by constantly improving efficiency."

These are the parameters within which the four divisions are to further
develop their product brands: T-Com is to become one of the leading
fixed-network communication providers and further expand its role as a
pioneer. T-Mobile will extend its position as one of the leading companies
in the mobile communications sector worldwide. T-Systems will make its mark
as one of the most innovative companies in the IT and telecommunications
sector, providing solutions for systems customers. T-Online will further
consolidate its role as the leading Internet Media Network and continue to
expand its customer base.

T-Com: Setting new standards in the fixed network

T-Com is to sharply increase its value created through organizational
measures, for example: This includes placing greater emphasis on the
Internet as a distribution channel. Deutsche Telekom almost doubled the
number of sales transactions made on the Internet in the first quarter of
2003. The number of product variants was cut from around 44,000 to
approximately 20,000. This portfolio streamlining leads to the
simplification of processes and represents an active contribution to the
reduction of costs and the maximization of cash flow. T-Com will strengthen
its market position with products and services, which are clearly focused on
the customer.

A prime example is T-DSL: 3.5 million Deutsche Telekom customers already use
T-DSL. New customer groups are being tapped with additional features. One
example of this is Fast Path, an application for players of online games.
Wireless LAN will become particularly important in the coming months as part
of an intense sales drive and will support T-Com's broadband campaign. The
"WIN" project was launched in order to set in motion processes designed to
improve efficiency. Approximately EUR 900 million is to be saved in the
course of the year, mainly by reducing material and personnel costs.

T-Mobile: Leading mobile communications company in the international arena

T-Mobile will continue to expand its position as a leading mobile
communications company on the international stage. The company's goal is to
achieve cash-oriented, value-based growth. Cooperation between T-Mobile's
companies in the individual countries is to be further optimized - for
example in the field of network planning. A further focal point is the
expansion of the provision of top-quality multimedia services under the
t-zones brand. As part of T-Mobile's multimedia strategy, UMTS, along with
GPRS, plays a particularly important role in the further development of the
mobile telecommunications market and the continued value-based growth of the
company. The focus also continues to be on the further development of the
business customer market. Special business solutions are to further increase
non-voice revenues.

T-Systems: Sharper focus and partnerships

With its T-Systems division, Deutsche Telekom will continue to consistently
expand its role as one of the leading providers of IT and telecommunications
solutions for systems customers. T-Systems has been reorganized with this
goal in mind. The sales and service units have been vertically structured in
line with four industry segments: telecommunications, services and finance,
public and healthcare and manufacturing. Effective cost management in all
areas of its business has been specifically designed with the aim of
improving results to the order of EUR 500 million. Measures to achieve these
goals include the consolidation of computer centers or partnerships, for
example in the field of purchasing.

T-Online: Further tapping of customer base

T-Online is to take a more rigorous approach to exploiting the potential
within its existing broad customer base in order to achieve higher revenue
and in-come. Its range of paid content in particular is to be expanded
considerably. The aim is to further reduce the company's dependency on pure
Internet access business. At the same time, growth in broadband lines is to
be increased further. T-Online will consistently build on its role as a
leading Internet Media Network.

"Innovation, quality and efficiency are the maxims for all divisions", said
Kai-Uwe Ricke, Chairman of the Board of Management of Deutsche Telekom, in
Cologne. "We deal not only with infrastructure and products, but also with
services and solutions for our customers. Our goal is to generate
value-based growth in the coming years and our focus has to be on the key
economic figures. The divisions will play a particularly important role in
this context."

Turnaround: Getting back on the road to success

At the end of the first quarter of 2003, Deutsche Telekom can look back on
the significant results generated by its chosen course of restructuring:
Revenue increased by 6.6 percent to EUR 13.6 billion. Adjusted EBITDA grew
by 18.4 percent to EUR 4.5 billion. Free cash flow rose from EUR 0.3 billion
in the first quarter of last year to EUR 2 billion. Debt amounted to EUR
56.3 billion at the end of the first quarter of 2003. This means debt was
reduced by around EUR 8 billion in the last two quarters, from the previous
level of EUR 64.3 billion.

"As a result of the strategy we have consistently applied to reorganize our
company, we are once again in the black. I would like to underline our goal
of continuing to report positive figures despite the difficult prevailing
economic conditions. We generated net income of EUR 0.1 billion from
operations", said Kai-Uwe Ricke at Deutsche Telekom's Shareholders' Meeting
in Cologne. "Taking into account asset sales and other special factors,
EBITDA was almost EUR 0.9 billion. A comparison with the figures from the
same period last year demonstrates just how important this development is
for us - in the first quarter of 2002, we recorded a loss of EUR 1.8
billion."

The trend for the remainder of the financial year is expected to be
positive. The development of the difficult economic climate must nonetheless
be taken into account. Bearing in mind various influential factors, the
EBITDA forecast for the full year is between EUR 17.2 billion and EUR 17.7
billion.

Deutsche Telekom reconfirms its target of reducing its net debt to three
times the level of its EBITDA by the end of 2003. In order to be able to
achieve this ambitious goal, Deutsche Telekom's Board of Management has
introduced numerous measures:

-- "6 plus 6": Asset sales are designed to generate EUR 6 million to go
towards debt reduction. Another EUR 6 million is to be generated from free
cash flow.

-- Cutting capital expenditure: Investments in property, plant and equipment
were reduced by around 30 percent in 2002. An investment range of between
EUR 6.7 billion and EUR 7.7 billion has been set for the current financial
year.

-- Consistent cost savings: Around EUR 700 million was already saved in the
second half of 2002. This was achieved by reducing marketing expenditure and
consulting costs, for example.


DEUTSCHE TELEKOM: Shareholders Confirm Board Appointments
---------------------------------------------------------
The Shareholders' Meeting of Deutsche Telekom elected the candidates
nominated by the Supervisory Board: Dr. Hans-Jurgen Schinzler, Dr. Klaus G.
Schlede and Dr. Wendelin Wiedeking.

Gert Becker, Prof. Dr. Helmut Sihler and Dr. Hans-Dietrich Winkhaus had
resigned from the board with effect from the end of the 2003 Shareholders'
Meeting.

Dr. Manfred Overhaus and Dr. Klaus Zumwinkel were confirmed as board
members. They had initially been appointed by the court to replace Dr. Andre
Leysen and Prof. Dr. Heribert Zitzelsberger, who had left prior to the end
of their terms. Dr. Klaus Zumwinkel has been chairman of the Supervisory
Board of Deutsche Telekom AG since March 14, 2003.


DEUTSCHE TELEKOM: Faces EUR12.5 Million Fine for Unfair Practices
-----------------------------------------------------------------
Deutsche Telekom faces fine for alleged unfair pricing practices, after
Germany's competition watchdog ruled the operator guilty of abusing its
dominant position in the market.

The European Union Commission plans to fine the telecom company EUR12.5
million for its unfair practices, a government source told Dow Jones.  The
anticompetitive practice reportedly dates back since 1982.  A European
Commission spokesman made no comment, according to the report.

The Commission investigated Deutsche Telekom after Mannesmann Arcor AG, a
unit of Vodafone Group, complained that DT was unfairly setting tariffs for
wholesale and retail connections.

"At one point we had to pay EUR12.48 per month for wholesale connections
while DT's residential customers paid EUR11.82," Mannesmann Arcor spokesman
Thomas Rompczyk told Dow Jones earlier Tuesday.

But DT officials reasoned that prices were largely set by the national
regulator.  In May the Commission said DT's rivals were being squeezed out
of the market for voice and data connections, including high-speed Internet
or broadband services.  Yet DT said it has made available more than 2
million lines to competitors, surpassing that of any other incumbent
European operator.

To promote competition and make broadband cheap and accessible, E.U. rules
provide that incumbents give rivals access to the wire running from their
central office switch to a customer's home or office.  But despite the
efforts of E.U. antitrust commissioner Mario Monti, competition is still
limited in Germany.  DT's rival still only operate about 6% of the country's
broadband lines, according to Annegret Groebel, official at the German
telecoms regulator RegTP.


EASY SOFTWARE: Credits Restructuring, Cost Cuts for Narrow Losses
-----------------------------------------------------------------
Following the great losses during 2001, we were able to clearly reduce
losses during 2002 through our restructuring and cost reducing measures.

In accordance with the German Commercial Code (HGB), our audited annual
statement shows group sales figures of EUR28.8 million (previous year:
EUR34.7  million). In spite of reduced sales, we were able to improve the
negative income before income tax figure to EUR - 10.2 million (previous
year: EUR  - 17.7 million). Annual deficit amounts to EUR  - 5.2 million
(previous year: EUR  - 29.8 million).

As of December 31, 2002, balance sheet debts amount to EUR1.25 million for
the EASY group. Since software development costs were not entered in this
annual statement in compliance with the German commercial provisions, there
is a hidden reserve, which will not lead to any actual over-indebtedness at
the balance sheet date, taking our plans into consideration, during the
current business year 2003.

Through its continual persistent cost control and introduction of new EASY
products in the mail archiving and document management sectors, EASY
SOFTWARE AG aims to return to the profit zone in 2003.

The Management Board

CONTACT:  EASY SOFTWARE AG
          Am Hauptbahnhof 4
          D-45468 Muelheim / Ruhr
          Phone: ++49(0)208-45016-0
          Fax: ++49(0)208-45016-108,
          E-mail: information@easy.de
          Home Page: http://www.easy.de


PLENUM AG: Returns to Profit, But Revenue Still Weak
----------------------------------------------------
-- Revenue stabilizes at EUR10.6 million
-- EBITDA approx. EUR0.4 million

According to its preliminary figures, plenum AG generated revenue of
approximately EUR10.6 million in the first three months of fiscal year 2003
(Q1 2002: EUR12.0 million). The company has thus stabilized its revenue as
against the previous quarter (EUR10.9 million).

After restructuring measures and value adjustments impacted the operating
result in the past fiscal year, Q1 2003 saw a return to positive territory,
with EBITDA of just under EUR0.4 million. Although the level of revenue
recorded in the first quarter was relatively weak in regard to 2003 as a
whole, the positive result underlines the appropriateness of the scope and
timing of the restructuring measures performed last year in order to ensure
profitable business development.

With net income for the period of approximately EUR0.1 million, plenum has
shown that returning to profitability is the company's top priority.
Earnings per share for the first quarter amounted to EUR0.01, for a total of
9,577,068 no-par value shares.

In view of the continuing uncertainty and muted outlook for the economy, no
reliable forecast can be given for 2003 as a whole at present. However,
assuming that plenum's business environment does not deteriorate further,
the Managing Board expects to generate revenue in line with last year's
level and positive consolidated net income.

The full quarterly report for Q1 2003 will be available at
http://www.plenum.defrom May 27, 2003 onwards


RSE AG: Records EUR88 Million Loss for Fiscal Year 2002
-------------------------------------------------------
RSE Grundbesitz und Beteiligungs-Aktiengesellschaft on Tuesday announced
that the Supervisory Board approved the annual financial statements in its
meeting Tuesday.

The result of the consolidated ordinary business activity for the 2002
financial year was minus EUR88.9 million. In the individual financial
statements, the result of ordinary business activity was minus EUR83.5
million.

The main factors here were non-scheduled depreciation, which did not impact
liquidity and risk provisioning positions.

Frankfurt am Main, May 20, 2003

The Management Board


VIVANCO GRUPPE: Works Council Accepts Management Offer
------------------------------------------------------
The works council of Vivanco Gruppe AG at the Ahrensburg site has approved
the balance of interests and social compensation plan proposed by the
management and based on the structural concept developed jointly with Roland
Berger. Prior to this, investors had declared their readiness to support
realignment with debt extinguishments totaling 23.6 million Euros.

The employees' representatives at the Trappenkamp site, however, are not
prepared to support the structural concept and the associated personnel
measures. Due to the transfer of production capacities to the Far East,
concentration on the "Vivanco" brand launched on international markets and
the discontinuation of the "Freitag" brand by October 2003 the Trappenkamp
site in particular is affected by staff reductions.

The company's factoring partner, which has been providing advance financing
for part of Vivanco's accounts receivable for several years, reacted to this
development by adjusting its factoring terms. This now places a burden on
the Group's liquidity situation. The management is currently looking into
possible ways of achieving the goals of the structural concept as planned.


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


ELAN CORP: Reaches Settlement with King Pharmaceuticals
-------------------------------------------------------
Elan Corporation, plc (NYSE: ELN) has announced it has reached an agreement
with King Pharmaceuticals, Inc. (NYSE: KG) to settle the pending lawsuit
relating to the previously announced sale of Elan's primary care franchise
(principally its rights to Sonata (TM)(zaleplon) and Skelaxin
(TM)(metaxalone), related inventory and rights to enhanced formulations of
these products) to King.  Pursuant to the settlement, Elan and King have
agreed to proceed with the primary care transaction on the terms outlined in
this news release and suspend their lawsuit pending the closing of the
transaction.  Effective on the closing, all claims under the lawsuit will be
released and the parties will dismiss the lawsuit with prejudice.

Terms of Amended Transaction

Gross consideration to be paid by King on closing of approximately $750
million, which sum includes the transfer of Sonata and Skelaxin inventory
with a value of $40 million and includes product related liabilities for
Sonata of approximately $218 million to be assumed by King at closing
(assuming a closing date of June 30, 2003).

Elan will receive an additional $25 million milestone payment on January 2,
2004, contingent on the ongoing patent exclusivity of Skelaxin.

Elan to receive payments of 5% of net sales of the current formulation of
Skelaxin through December 31, 2005 and, thereafter, beginning in 2006 and
continuing through December 3, 2021, Elan will receive payments of 10% of
net sales of the current formulation of Skelaxin in excess of $50 million
annually.

King to deposit $400 million in escrow to be released on the earlier of the
closing of the transaction, termination of the revised agreement, subject to
certain conditions, and October 24, 2003.

Elan to receive up to an additional $61 million in milestone payments
(comprising up to $86 million in clinical, regulatory and sales milestones
less up to $25 million in milestones that Elan is obligated to pay a third
party) relating to the development of enhanced formulations of Sonata,
contingent on the achievement of certain clinical and regulatory events.

King to offer employment to Elan's primary care employees (approximately 375
employees).

After giving effect to the amended terms of the transaction, the closing of
the primary care transaction will result in the following:

Cumulative consideration received by Elan from asset divestitures of
approximately $1.6 billion.

Total contractual and potential future payments reported at March 31, 2003
have been reduced from approximately $3.1 billion to approximately $2.6
billion, reflecting the elimination of approximately $443 million of
contractual and potential future payments related to Sonata and Pharma
Operating Ltd., a wholly-owned subsidiary of Pharma Marketing Ltd.

Total cash balances at March 31, 2003 increased by approximately $312
million to approximately $1.3 billion, reflecting net cash proceeds from the
primary care transaction after giving effect to the elimination of
contractual and potential future payments related to Sonata and Pharma
Operating and a final payment of $20 million in respect of Sonata payable by
Elan to Wyeth.

Transaction expected to result in a pre-tax gain of approximately $35
million, after taking account of a $200 million charge related to the
purchase of royalty rights attaching to Sonata from Pharma Operating, the
transfer of related inventory to King and transaction costs.

Kelly Martin, President and Chief Executive Officer said, "The agreement to
settle this lawsuit clears the way for us to close the sale of our primary
care franchise to King.  Moreover, the new, amended agreements enable us to
participate in future revenue streams on sales of Skelaxin.  The successful
resolution of this matter will represent an excellent outcome for Elan and
our shareholders."

Mr. Martin concluded, "Upon closing, Elan will have exceeded its target of
raising $1.5 billion from asset divestitures.  We continue to move forward
on multiple aspects of our recovery plan, including the advancement or our
science and product development, the simplification of our balance sheet and
the further adjustment of our operating construct in terms of costs,
locations, personnel and strategic focus."

Pharma Marketing

As previously announced on January 30, 2003, Elan and Pharma Operating have
agreed that, contingent on closing of the sale of Sonata, Elan expects, on
the closing date, to pay Pharma Operating an estimated $200 million ($225
million less royalty payments on all related products paid or due to Pharma
Operating from January 1, 2003 to the closing of the sale estimated at $25
million based on a closing date of June 30, 2003) to acquire the Pharma
Operating royalty rights with respect to Sonata and the Prialt? product.

In addition, Elan will have an option to purchase Pharma Operating's royalty
rights on the Zonegran (TM), Frova (TM) and Zanaflex (TM) products until
January 3, 2005, an extension from the earlier option termination date of
June 30, 2003.  The current purchase option price has been reduced to $110
million plus 15% per annum from the earlier date of the Sonata sale closing
or July 1, 2003, less royalty payments made for periods after the Sonata
sale closing.

Shareholder Approval and Closing Contingencies

Elan has decided to seek shareholder approval for the amended primary care
transaction at a special meeting to be held as soon as practicable.  The
transaction, which is expected to be completed prior to June 30, 2003, is
subject to certain contingencies and other customary closing conditions,
including the receipt by Elan of shareholder approval.  If the transaction
fails to close, except in the event that Elan does not receive shareholder
approval, the pending litigation may be reinstated.

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

CONTACT:  ELAN CORPORATION
          Emer Reynolds, Investor Relations (Europe)
          Phone: 353-1-709-4000
          00800 28352600


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


MILLICOM INTERNATIONAL: Overseas Subscribers Now Number 3 Million
-----------------------------------------------------------------
Millicom International Cellular S.A. (Millicom or MIC) (Nasdaq: MICC), the
global telecommunications investor, recently confirmed that at the end of
April 2003, its operations in Asia, Africa and Latin America (excluding El
Salvador) had exceeded 3 million subscribers on a proportional basis.

Marc Beuls, President and CEO of MIC stated: "Reaching this milestone in
proportional subscriber numbers reflects the continued strong underlying
growth occurring in emerging markets and particularly in Asia and Africa."

Millicom International Cellular S.A. is a global telecommunications investor
with cellular operations in Asia, Latin America and Africa.  It currently
has a total of 16 cellular operations and licenses in 15 countries.  The
Group's cellular operations have a combined population under license
(excluding Tele2) of approximately 382 million people.  In addition, MIC
provides high-speed wireless data services in five countries. MIC also has a
6.4% interest in Tele2 AB, the leading alternative pan-European
telecommunications company offering fixed and mobile telephony, data network
and Internet services to 17.7 million customers in 22 countries.  The
Company's shares are traded on the Luxembourg Bourse and the Nasdaq Stock
Market under the symbol MICC.

CONTACTS:  MILLICOM INTERNATIONAL
           Marc Beuls, President and Chief Executive Officer
           Phone: +352 27 759 101
           Home Page: http://www.millicom.com

           SHARED VALUE LTD, LONDON
           Andrew Best
           Phone: +44 20 7321 5022


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


KONINKLIJKE AHOLD: Expected to Writedown Foodservice Goodwill
-------------------------------------------------------------
Analysts are expecting Dutch retailer Ahold to write down up to EUR2 billion
in goodwill on its U.S. Foodservice to reflect a decrease in value of the
unit after it overstated profits by US$880 million.

Alban Eyssette at Dexia Securities in Paris estimates the figure at EUR1.5
billion, while an analyst at a big French bank expects a EUR2 billion
charge, which Ahold has to take because the unit's value was based on
inflated earnings.

A writedown will reduce the group's equity, which stood at EUR5.5 billion in
its latest disclosure in October.  It will also inflate the ratio of debt to
equity that was 2.24 times at the end of September.  This will dash hopes of
Interim Finance Director Dudley Eustace of bringing debt back to below
equity, or debt to equity ration below one.  Ahold, which has a market
capitalization of EUR6.4 billion on Monday, has EUR12.3 billion in debts in
October.

The analysts, though, assured Ahold can meet lending agreements for a EUR3.1
billion bank standby facility whose terms require Ahold to meet certain
reporting dates and keep its cash earnings at above 2.5 times its interest
costs.  Ahold expects to finish its 2002 accounts by the end of June.

The writedowns will also likely to force the food service company to
accelerate asset sales, according to Reuters.  New Chief Executive Anders
Moberg is currently reviewing the business of the unit with a view towards
disposing non-core assets.  Results of the review are expected to come out
in October.  Ahold plans to quit Latin America, Indonesia and Malaysia.


KONINKLIJKE AHOLD: Corrects Sales Figures for 2002 and 2001
-----------------------------------------------------------
Ahold, the international food retail and foodservice company, wishes to
correct restated unaudited historical sales numbers for 2002 and 2001, as
included in its May 16, 2003 trading statement. Ahold apologizes for
inadvertently including the incorrect numbers in the prior release.

Changes are in bold and show slightly higher 2001 total sales than reported
on May 16, 2003.

Ahold restated unaudited sales for 2002 and 2001

                 1st      2nd      3rd       4th      Full year
              quarter   quarter   quarter   quarter     2002
                2002      2002     2002      2002

x 1 million Euro
(unless otherwise indicated)

Sales to third parties

- U.S. Retail
(in dollars)   7,904.3  6,162.5  5,974.5   6,214.4     26,255.7
- U.S. Foodservice
(in dollars)   5,381.6  4,114.9  4,021.1   3,918.6     17,436.2
- Europe       3,955.7  3,286.4  3,232.3   3,461.0     13,935.4
- South America  406.9    503.9    586.0     646.5      2,143.3
- Asia           120.5    109.6    109.2     118.4        457.7
Total sales   19,614.8 14,834.7 14,093.2  14,343.2     62,885.9

                 1st      2nd      3rd       4th      Full year
              quarter   quarter   quarter   quarter     2001
                2001      2001     2001      2001

x 1 million Euro
(unless otherwise indicated)

Sales to third parties

- U.S. Retail
(in dollars)   6,804.4  5,402.7   5,357.4   5,647.2    23,211.7
- U.S. Foodservice
(in dollars)   3,433.3  2,756.8   2,806.1   3,137.6    12,133.8
- Europe       3,700.8  3,114.4   3,065.2   3,358.4    13,238.8
- South America  340.3    323.3     279.7     330.2     1,273.5
- Asia           101.3     96.7      93.5     108.0       399.5
Total sales   15,305.7 12,969.5  12,495.4  13,627.6    54,398.2

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


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


BANK MILLENNIUM: Financial Strength Rating Downgraded to D-
-----------------------------------------------------------
Moody's downgraded to D- from D Bank Millennium's financial strength rating
that had been under review since February.  The rating agency, meanwhile,
affirmed the Polish bank's A3/P-1 deposit ratings with a stable outlook
based on its 50% ownership by Banco Comercial Portugues (rated A1/P-1/B-
with stable rating outlooks).

After the review, Moody's found out that Bank Millennium still has very low
recurring income generation capacity in comparison with its peers.  It made
a profit due to non-recurring items in 2002. Benefits from new product
development and cross-selling initiatives are yet to be seen.

As for the bank's restructuring program completed in 2002, the rating agency
expects this to result to reduced costs, improved productivity, and much
lower provision charges than those seen in recent years in the
short-to-medium-term.

The rating agency also expects the bank's earnings generation capacity and
financial fundamentals to likely remain constrained this year by the
slow-growing economy and the bank's modest competitive position.

Bank Millennium reported 2002 PAS audited consolidated assets of PLN 18.7
billion (Euro 4.7 billion) and net profit of PLN 183.9 million (Euro 45.7
million).  Non-recurring revenues are over PLN 200 million (Euro 50
million).  First quarter 2003 consolidated net profits were down by 37% to
PLN 30 million (Euro 6.8 million).


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


SKANDIA: Issues Interim Report for January - March Period
---------------------------------------------------------
On 1 May 2003 it was announced that the agreement with Prudential Financial,
Inc. (USA), under which Prudential Financial is acquiring American Skandia,
has now been completed. To maintain comparability, all information in this
interim report pertains to operations excluding the USA, unless otherwise
indicated.

A. BUSINESS DEVELOPMENT

-- Sales amounted to SEK 17,693 million (19,036). The sales decline is
mainly attributable to currency movements

-- Sales in local currency decreased by only 1%, and new sales of unit
linked assurance decreased by 11%

-- The net inflow in funds under management was SEK 10.0 billion (10.7)

B. OPERATING RESULT (according to the embedded value method)

-- The group's operating result according to the embedded value method was
SEK 123 million (560). Negative financial effects increased to SEK -283
million (-120)

-- The profit margin for new business for the year for unit linked assurance
increased to 13.5% (13.1%)

C. PROFIT AND LOSS ACCOUNT (according to Swedish GAAP)

-- The result before tax was SEK 164 million (474)

-- Earnings per share were SEK 0.12 (0.29)

-- The return on shareholders' equity was 17% (-2%). Excluding items
affecting comparability, the return was 9% (-2%)

D. CASH FLOW AND BALANCE SHEET

--  Cash flow from operating activities was SEK -0.3 billion (0.4)

--  Borrowings including the USA decreased by SEK 0.3 billion, to SEK 9.3
billion

-- Net asset value amounted to SEK 26,654 million (27,033 at year-end 2002)

-- Shareholders' equity amounted to SEK 15,216 million (15,238 at year-end
2002)

Comments by Leif Victorin, President and CEO:

-- The first quarter was characterized by apprehension and uncertainty in
the shadow of dramatic world events such as the war in Iraq and the SARS
epidemic. This has contributed to continued weak markets.

-- The sluggish market has had an adverse effect on sales, especially in the
UK and Sweden. However, the group's combined sales were essentially
unchanged in local currency. We can also note a slight increase in the
calculated profit margin for new unit linked assurance business.

-- In Continental Europe our sales are up sharply compared with the
corresponding period in 2002. Key success factors have been Skandia's
ability to offer active management concepts and innovative product solutions
offering guaranteed returns. Our distribution strength in these markets
continues to develop well. Germany, in particular, has had a strong start to
the year, and our market share there now exceeds 6%, compared with 4.4% at
year-end 2002. We are capturing market shares in all of our unit linked
markets on the Continent. In Austria we are the market leader with over 18%
of the market.

-- In Italy, our sales success through the Financial Adviser channel
continues, and in Spain the business we conduct with our bank partners is
developing well, especially in the pension funds segment and in the
administration of traditional life contracts.

-- The work on increasing our earnings ability and cash flow continues.
Sustainable cost reductions and profitability are in constant focus in our
day-to-day work.

-- As previously announced, Skandia's new board is currently leading an
intensive work process together with the company's management on reviewing
strategies, plans and essential policies. The intention is that these will
either be confirmed or adjusted in relevant respects following this review.
This work has got off to a fine start, and as new CEO I am very pleased to
report a highly productive work climate at Skandia.

One of the areas that the Board is evaluating is the way in which Skandia
reports on and describes its operations. This work is currently in progress.
However, in this report we have chosen to follow the previous model in all
essential respects.

The interim report is presented in five parts. The section on Business
Development (A) contains an account of sales during the quarter and funds
under management, among other things. The operating result for unit linked
assurance according to the embedded value method and the result for the
other business areas are presented in section B.

The Profit and Loss Account section (C) includes a discussion of the result
before tax in accordance with Swedish GAAP as set out in the Swedish Annual
Accounts Act for Insurance Companies. Cash flow and the balance sheet are
discussed in section D. Section E describes events after the end of the
first quarter.

A. BUSINESS DEVELOPMENT

Sales and Funds Under Management (tables on pp. 10-12)

The continued decline in the world's stock markets had a negative impact on
demand for long-term savings also in the first quarter of 2003. Combined
sales in local currency decreased by 1%, to SEK 17,693 million (19,036). The
decrease in Swedish kronor is mainly due to currency movements.

Sales, Unit Linked Assurance

Sales of unit linked assurance decreased by 4% in local currency, to SEK
12,571 million (13,753). New sales decreased by 11% in local currency (new
sales defined by the industry-wide definition as periodic premiums
recalculated to full-year figures plus 1/10 of single premiums during the
period).

In the British market, sales were hurt by continued weak market conditions.
Sales in the UK therefore fell by 24% in local currency, to SEK 3,518
million (5,071). However, sales for the Offshore operation rose by 24% in
local currency, to SEK 3,049 million (2,629). New sales decreased on the
whole by 18% in local currency.

Sales in Sweden fell by 14%, to SEK 2,588 million (3,020). New sales
decreased by 20% due to lower sales of single-premium products in the
private market and to a generally weak market.

Sales in Germany rose 22% in local currency, to SEK 559 million (454). New
sales increased by 41% in local currency.

Italy is showing continued sales success through the launch of new products,
and sales rose to SEK 1,284 million (308). Sales in the other European
markets increased to SEK 1,009 million (895).

Sales in Japan decreased to SEK 490 million (1,162) due to a change in the
sales focus of the single-largest distributor of Skandia's products.

Sales, Mutual Fund Savings Products (Including Direct Sales)
Compared with the same period a year ago, total sales were unchanged in
local currency and amounted to SEK 4,700 million (4,910).

This includes direct sales in Sweden, such as over the Internet and through
the Premium Pension Authority, totalling SEK 1,377 million (1,064). Sales in
the UK decreased by 26% in local currency, to SEK 1,386 million (2,053). On
the other hand, sales have developed well in Australia, in particular, as
well as in Spain.

Sales, Life Assurance

Sales of traditional life assurance, mainly pertaining to the Spanish
operation, rose by 13% in local currency, to SEK 276 million (247).

Funds Under Management

Due to a continued positive net flow of SEK 10.0 billion (10.7) in funds
under management, fund values increased by 4%. Fund values decreased by 4%
as a result of the stock market decline and by 3% due to lower exchange
rates. The MSCI World Index showed a decline of 6% for the period.  Fund
values decreased by 3%, net, compared with the start of the year, to SEK
247,915 million.

Payments to unit linked policyholders amounted to 7.5% of assets under
management (8.1% at year-end 2002). Of this amount, surrenders accounted for
5.9 percentage points, compared with 6.4 percentage points at year-end 2002.

B. RESULT AND PROFITABILITY (according to the embedded value method) (tables
on pp. 10-11, 13-14 and 21-22)

The result of operations for the group (operating result excluding financial
effects and items affecting comparability) decreased to SEK 406 million
(680). The operational return on net asset value was 7% (11%).

The operating result after financial effects (result before tax including
the change in surplus value of unit linked business) was SEK 123 million
(560). Financial effects pertain to the change in the present value of
future revenues caused by developments in the capital markets. Financial
effects had a negative impact on the operating result in the amount of
SEK -283 million (-120).

Exchange Rate Effects

Sales were negatively affected by SEK 1,150 million and the operating result
negatively by SEK 27 million. Total assets including the USA decreased by
SEK 28 billion compared with the start of the year as a result of currency
movements.

Cost Reductions

The decision was made in 2002 on a programme designed to cut costs by SEK 1
billion on a yearly basis. The cost of this programme amounted to SEK 360
million, which resulted in a provision for restructuring costs during the
fourth quarter of 2002.

During the first quarter of 2003, SEK 84 million of this provision was
utilized. Through the first quarter of 2003, cost reductions have been
carried out according to plan, entailing that cost-savings of SEK 1 billion
will have been realized by year-end.

Operating Result, Unit Linked Assurance

The result of operations decreased to SEK 634 million (775).

The decline and uncertainty in the financial markets have had a negative
impact on new sales and thus also on the present value of new business for
the year, which amounted to SEK 280 million (318).

However, the estimated profit margin for newly written business increased on
the whole to 13.5% (13.1%). The change in the geographic composition of
business made a positive contribution to the margin development.

In Sweden the profit margin was essentially unchanged at 16.9%. Cost-savings
offset the effect of lower sales volumes. In the UK the profit margin fell
to 7.2% (11.2%). Lower sales resulted in poorer cost coverage. In addition,
the stock market decline resulted in a change in the tax position, which
also had a negative impact on the profit margin. Measures have been taken to
further adjust the cost level to the prevailing market conditions.

In other markets, the profit margin increased on the whole to 18.6% (10.5%).
Greater sales have contributed to improved cost coverage.

The return on the value of contracts entered into in previous years
decreased somewhat due to lower exchange rates and amounted to SEK 434
million (466).

The actual outcome compared with operative assumptions and the change in
operative assumptions together totalled SEK -43 million (18) due to minor
changes in assumptions.

Result, Mutual Fund Savings Products

The result was SEK -68 million (-58). Revenues from funds under management
have been hurt for some time by the prolonged stock market decline.

Result, Life Assurance

The result for life assurance, mainly pertaining to Spain, was SEK 32
million (59).

Result, Other Businesses

The result of operations for SkandiaBanken was SEK 27 million (8). The
earnings improvement is attributable to improved net interest income and
lower costs. However, commission income decreased due to lower sales by the
Advisory Bank.

Deposits amounted to SEK 37.0 billion (35.6). SkandiaBanken increased its
customer base during the period by 23,000, to 1,287,000.

Investment income amounted to SEK 3 million (30). The change is attributable
to a positive foreign exchange result that was included in the result for
the first quarter of 2002. The result for "other businesses" was charged
with costs for the group's Global Business Development unit and a negative
result for the banking business in Switzerland, which is currently in a
build-up phase.

The continuing result for Bankhall, Skandia's distribution network in the
UK, amounted to SEK 21 million (16) excluding goodwill amortization of SEK
35 million (25). This operation has developed well. Since Skandia's
acquisition of Bankhall, the number of affiliated IFAs has increased by over
30%, to 7,000. During the first quarter, the shareholder base in Bankhall
was broadened through the sale of a 5% stake to Norwich Union. Following
this, at the end of the first quarter of 2003 Skandia owned 81% of Bankhall.
Norwich Union has an option to acquire an additional 4.99% of the share
capital in Bankhall between 2005 and 2009.

Group Expenses

Group expenses, which include management costs for joint-group functions,
increased to SEK 135 million (109).

C. PROFIT AND LOSS ACCOUNT (according to Swedish GAAP) (tables on pp. 14 and
16-18)

The result before tax decreased by SEK 310 million to SEK 164 million. This
is attributable in part to a one-time effect of SEK 274 million on the
deferral of acquisition costs for unit linked assurance (see below) compared
with the same period a year ago.

Cost-cutting has had a positive impact on the result, at the same time that
the stock market decline has had a negative impact on the value of funds
under management. Fees on funds under management, and thus revenues, were
affected to a corresponding degree. The negative result effect is estimated
at SEK 125 million.

The result for the period after tax amounted to SEK 127 million (295).
Earnings per share were SEK 0.12 (0.29). The return on shareholders' equity,
excluding items affecting comparability (capital gain on the sale of the
asset management business and costs in connection with restructuring of
operations) was 9% (-2%) on a moving 12-month basis. The return on
shareholders' equity including items affecting comparability was 17% (-2%).

Unit Linked Assurance (Income and Expense Analysis Table, p. 14)
The result after tax was SEK 392 million (569). In the unit linked assurance
operations, continuing revenues - consisting mainly of fees on funds under
management and paid-in premiums (gross contribution) - amounted to SEK 1,676
million (1,697). Acquisition costs amounted to SEK 1,260 million (1,282).
Acquisition costs include all costs, both internal and external, that arise
in connection with the sale of unit linked assurance products. Acquisition
costs are to be deferred (deferred acquisition costs) and amortized
according to a schedule that corresponds to the estimated economic life,
normally 10 years.

Of the acquisition costs for unit linked assurance that were paid out during
the first quarter, approximately 60% - or SEK 0.7 billion - were deferred.
Amortization of deferred acquisition costs amounted to SEK 0.5 billion. The
change in deferred acquisition costs thus amounted to SEK 243 million (439).
The decrease is attributable to an alignment to uniform accounting
principles for the deferral of these costs, which had a favourable effect on
the result during the first quarter of 2002. Administrative expenses for
unit linked assurance amounted to SEK -305 million (-339).

D. CASH FLOW AND BALANCE SHEET

Cash flow from operating activities decreased compared with the same period
a year earlier and amounted to SEK -0.3 billion (0.4). Settlement during the
period of SEK 0.5 billion in nonrecurring accrued expenses had a negative
impact on cash flow from operating activities.

Borrowings including the USA decreased by SEK 0.3 billion compared with the
start of the year through the repayment of SEK 0.1 billion in loans and due
to exchange rate effects of SEK 0.2 billion. Cash flow from currency hedges
made a positive contribution of SEK 0.3 billion.

The group's borrowings amounted to SEK 9.3 billion, compared with SEK 9.6
billion at the start of the year. Liquid assets including the USA amounted
to SEK 4.0 billion. Unconditional, unutilized credit facilities amounted to
SEK 10.2 billion, compared with SEK 10.4 billion at the start of the year.
The level of credit facilities will be decreased and adjusted to the changed
need for borrowing.

Net asset value was SEK 26,654 million (SEK 27,033 million at the start of
the year), corresponding to SEK 26 per share (26). Shareholders' equity was
essentially unchanged compared with the start of the year and amounted to
SEK 15,216 million, or SEK 15 per share (15).

Skandia owns 19.36% of If P&C Insurance and makes continuous market
valuations of this holding, which forms the base for the book value. The
book value was unchanged compared with year-end 2002, at SEK 3.0 billion. If
reported a result before tax of SEK 284 million (-458) for the first quarter
of 2003. If's net asset value amounted to SEK 17.9 billion, compared with
SEK 18.0 billion at the start of the year.

E. EVENTS AFTER THE END OF THE FIRST QUARTER

E.1 American Skandia

On 20 December 2002 it was announced that Prudential Financial, Inc. (USA)
is acquiring American Skandia. The transaction was completed on 1 May at the
agreed-upon terms after all necessary regulatory approvals had been
received.

In connection with the completion of the transaction, on 2 May 2003 the
credit rating agency Standard & Poor's confirmed Skandia's long-term
counterparty credit rating of "A." At the same time, the outlook was changed
from negative to stable.

The Transaction

The transaction values American Skandia at USD 1,150 million, including
internal and external borrowing in the US operation. Of the proceeds, USD
800 million was deducted on 1 May 2003, and USD 200 million is expected to
be received in early autumn 2003, net after deduction for costs. Most of the
proceeds will be used to repay the group's external loans. The transaction
entailed a negative result impact of SEK 4.4 billion after tax for Skandia,
which was charged in its entirety against 2002 earnings. The transaction did
not have any impact on the result during the first quarter of 2003.

Guarantee Commitments

The agreement on the transaction contains customary guarantee commitments
(representations and warranties) that are limited in time and amount to a
maximum of USD 1 billion. Certain warranties pertain to litigation. With
respect to litigation, the guarantee commitment extends for four years.
American Skandia is currently party to a class action suit. In Skandia's
opinion, which is shared by external counsel, this suit is without merit. To
date, American Skandia has not been involved in any litigation whose outcome
would have entailed any guarantee claims.

E.2 Changes in Skandia's executive management

At the Board's statutory meeting following the Annual General Meeting on 15
April 2003, Bengt Braun was elected as Chairman of the Board. The Board also
decided to appoint Leif Victorin as President and CEO, with effect from 16
April 2003. He has taken over after Lars-Eric Petersson, who left the
company and the Board at the same time. The terms of employment for Leif
Victorin are described on page 22.

Stockholm, 20 May 2003
Leif Victorin
President and CEO

New dates for Skandia's financial reports will be announced at a later date.

Skandia's published financial reports are available on Skandia's Web site:
http://www.skandia.com Skandia's Web site also provides links to the
webcast of the conference call on Wednesday, 21 May 2003. In addition to the
interim report, Skandia has also published the document Financial Supplement
Q1 2003 on www.skandia.com, under Investor Relations/Reports and
Events/Interim Reports.

To See Selected Financials:
http://bankrupt.com/misc/SKANDIA_financials.htm

CONTACT:  Jan Erik Back, Chief Financial Officer
          Phone: +46-8-788 3720
          Harry Vos, Head of Investor Relations
          Phone: +46-8-788 3643


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


SWISS: Appointment of Svensson Completes Corporate Restructuring
----------------------------------------------------------------
Ulrik Svensson, SWISS' recently appointed Managing Director for Finance,
assumed his new office on Monday, May 12. Thomas Hofmann, the previous Chief
Financial Officer, will leave the company after introducing Mr. Svensson to
his duties.

The appointment of Ulrik Svensson, a Swedish national, completes SWISS' new
corporate level of three managing directors reporting directly to the CEO.
Mr. Svensson, who has extensive experience in corporate turnaround
activities, will now swiftly familiarize himself with the airline business
with the assistance of former CFO Thomas Hofmann.

SWISS and Mr. Hofmann have agreed to terminate their working relationship at
the end of May.  Mr. Hofmann will, however, remain available to the company
for special assignments for a limited period beyond this date.

The company wishes to thank Thomas Hofmann for the expertise and the
resources he has devoted to SWISS and Crossair over the past 15 years. With
his dedication and his keen collaborative spirit, Mr. Hofmann was
instrumental in developing Crossair and in ensuring SWISS' successful
launch.

CONTACT:  SWISS Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 848 773 773
          Weekend: +41 1 564 0000
          Fax: +41 61 582 3554
          E-mail: communications@swiss.com
          Homepage: http://www.swiss.com


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


AVIONIC SERVICES: To Raise Fund Via Loan Note, Share Issuance
-------------------------------------------------------------
Fundraising of up to GBP1.45m (net of expenses) via Loan Note Issue and
Share Placing and Notice of Extraordinary General Meeting Issue of Unsecured
Convertible Loan Notes and Placing of Ordinary Shares of 1p each at 2.5p per
share (Share Placing)

Attached to this announcement are extracts from a circular posted to
shareholders, which sets out the background to the Fundraising and further
details on it.  Copies of the Circular, including the Notice of EGM, have
been posted to shareholders, and are available from the Company's Nominated
Adviser and Broker, Noble & Company Limited, 76 George Street, Edinburgh,
EH2 3BU, free of charge, for a period of one month.

The following text is an extract from the circular that has been dispatched
to shareholders:

Introduction

Your Board has announced proposals for a fundraising to provide the Company
with additional capital to continue the development of its business. The
Company is seeking to raise a minimum of GBP1 million and a maximum of
GBP1.45 million (in each case, net of expenses of the Fundraising) as set
out herein. This is to be effected by means of a combination of the Loan
Note Issue and the Share Placing to new and existing institutional and
private investors, including the executive Directors. As at today's date,
placing commitments have been received from investors amounting to GBP1.0
million.

As part of their ongoing commitment to the Company, the executive Directors
have undertaken to invest an aggregate of not less than GBP80,000 in the
Fundraising by way of a subscription for Convertible Loan Notes.

The Fundraising is conditional on and subject to:

(a) The passing by the shareholders of the Company at an extraordinary
general meeting to be held on 11 June 2003 of resolutions to:

    (i) Increase the Company's authorised share capital from
        GBP300,000 to GBP1,500,000;

   (ii) Authorize the Directors of the Company to allot relevant
        securities up to an aggregate nominal amount equivalent
        to the authorized (as increased by the resolution
        referred to in paragraph (i) above) but unissued share
        capital;

  (iii) Disapply Shareholders' statutory pre-emption rights in
        relation to the Fundraising and certain future issues of
        shares and/or convertible loan notes for cash up to an
        aggregate nominal amount of GBP700,000 (together 'the
        Resolutions'); and

(b) The Company raising not less than GBP1 million (net of expenses) (the
Minimum Amount).

The purpose of this document is to provide you with information about the
Fundraising and explain why your Board considers the Fundraising to be in
the best interests of the Company. It is expected that, conditional upon the
passing of the Resolutions at the EGM, the Loan Notes will be issued and the
new ordinary shares of 1p each pursuant to the Share Placing (Placing
Shares) will be allotted and admitted to trading on AIM on 17 June 2003.

The Notice convening the EGM to be held at 12 noon on 11 June 2003 at the
offices of Memery Crystal, 31 Southampton Row, London, WC1B 5HT, at which
the Resolutions will be proposed to enable the Fundraising to take place, is
set out in the Notice of EGM on page 5 of this document.

The Directors of the Company, whose names appear above, accept
responsibility for the information contained in this document.  To the best
of the knowledge and belief of the Directors (who have taken all reasonable
care to ensure that such is the case), the information contained in this
document is in accordance with the facts and does not omit anything likely
to affect the import of such information.  Under no circumstances however
should the information contained in this document be relied upon as being
accurate at any time after the Fundraising.

Background, Current Trading and Reasons for the Fundraising

The Company provides air traffic control equipment, systems integration
services, airfield ground lighting and consultancy services in the UK and
internationally and is entering into the flight inspection services market.
The Company, which was founded in 1992 by ex-employees of Racal Avionics
Limited, is now one of the leaders in the niche market of air traffic
control technologies and systems integration for small and medium sized
airports world-wide.

Details of the Company's financial position are contained in the
announcement of interim results for the six months ended 31 December 2002,
which were released to the London Stock Exchange on 20 March 2003.  The
problem that the Company has been faced with is that while costs have been
incurred in preparation for winning new business and cash continues to be
consumed, delays in receipt of contracts have dramatically reduced ongoing
revenue streams.  The Directors therefore believe that it is essential to
raise funds from a small number of new and existing investors at the present
time.

Although the Company has agreed some additional facilities with its bankers,
your Board considers that these facilities will be inadequate to meet its
short to medium term needs.  It has therefore decided, following a limited
marketing exercise, to carry out the Fundraising by way of the Loan Note
Issue and the
Share Placing rather than offering all Shareholders the opportunity to
participate in the Fundraising or by the issue of new ordinary shares
generally.

The Board believes that the costs of such an offer (which under relevant
legislation and regulations would require the Company to publish a detailed
prospectus) and the time it would take to conduct such an offer are
prohibitive at the current time in light of the Company's limited financial
resources and urgent requirement for additional funding, without which, in
the view of the Directors, the Company would be unable to continue trading.

Use of proceeds

It is envisaged that the net proceeds of the Fundraising of not less than
GBP1 million will be used to repay or reduce existing indebtedness, to fund
the Company's working capital requirements going forward and in particular,
to enable the Company to continue to tender for and/or work on the
contracts/rojects which are currently in the pipeline.

Terms of the Fundraising

Loan Note Issue

Investors have applied for an aggregate of GBP830,000 of Loan Notes.  The
applications are conditional on the passing of the Resolutions at the EGM
and on the Minimum Amount being raised by the Company.

Share Placing

Investors have applied for Placing Shares having an aggregate value at the
placing price of 2.5p per share of GBP170,000.  The applications are
conditional on the passing of the Resolutions at the EGM and on the Minimum
Amount being raised by the Company.

The Placing Shares will be issued, credited as fully paid, at 2.5p per share
and will rank pari passu in all respects with the existing ordinary shares
of 1p.

Application will be made for the Placing Shares to be admitted to trading on
the Alternative Investment Market of the London Stock Exchange.

Terms and Conditions of the Loan Notes

The principal terms and conditions of the Loan Notes are as follows:

(a) They will carry interest at 7% per annum, which will be payable
half-yearly in arrears on 30 June and 31 December save that interest
accruing during the period from issue of the Loan Notes until 31 December
2004 shall be rolled-up and become payable in full on 31 December 2004;

(b) They will be repayable on 30 June 2008 or earlier upon the happening of
certain events of default (such as failure by the Company to make any
payment of principal or interest due or on the insolvency of the Company);

(c) They can be converted into ordinary shares of the Company at any time
prior to the repayment at the option of the noteholder at the rate of 40
ordinary shares of 1p for every GBP1.00 nominal value of Loan Note.  On
conversion, any amount of accrued interest would be payable in cash; and

(d) The obligations of the Company to repay the Loan Notes will not be
secured.

Loan Notes converted into ordinary shares will rank pari passu with all
existing shares in issue at the time of conversion.

The Company has undertaken to ensure that it maintains sufficient authorized
share capital and share authorities to accommodate the conversion rights and
that any ordinary shares arising on conversion of the Loan Notes will be
admitted to trading on AIM (or such other market as the Company's shares are
then traded on).

Terms of the Share Placing

The Placing Shares will rank pari passu in all respects with the existing
ordinary shares in the issued share capital of the Company and in particular
will rank in full for all dividends and other distributions declared, paid
or made on the ordinary share capital of the Company after the issue of the
Placing
Shares.

Extraordinary General Meeting (EGM)

Set out at the end of this document is a Notice convening an EGM of the
Company to be held at the offices of Memery Crystal, 31 Southampton Row,
London, WC1B 5HT at 12 noon on 11 June 2003, at which the Resolutions set
out in such Notice will be proposed.

Recommendation

The Directors believe the Fundraising to be in the best interests of the
Company and of Shareholders as a whole.

Your Directors unanimously recommend that you vote in favour of the
Resolutions to be proposed at the EGM (which, if passed, will enable the
Fundraising to proceed) as they intend to do in respect of the 5,304,000
ordinary shares which they beneficially own, representing approximately 25.7
per cent of the issued share capital of the Company.

Avionic Services in March reported a GBP1.05 million loss for 2002.
Chairman Tom Gluicklich had said: "The last six months have proved even more
difficult than the previous year in terms of moving the business forward."

CONTACT: AVIONICS SERVICES
         Gareth Rowe, Chief Executive Officer
         Phone: 020 8974 5225

         NOBLE & COMPANY LIMITED
         Joe Philipsz/Nick Athanas
         Phone: 0131 225 9677


CORUS GROUP: New CEO Considers Selling Teesside Steel Plant
-----------------------------------------------------------
The new chief executive of Corus, Philippe Varin, could opt to hasten the
troubled company's restructuring by selling its Teesside steel plant to
another steel-maker or a private-equity buyer.

Mr. Varin is considering the idea to unload the operation, which makes raw
steel in slab form for processing into finished products in other plants,
according to the Financial Times.

The sale of the plant is believed likely to raise up to GBP200 million if
the firm reaches a deal with its more than 2,000 workforce over job cuts and
operational changes, the report says.

It could also lighten its financing needs, and lower interest payments,
potentially easing out talks with banks regarding nearly GBP700 million of
new loans.

The transaction could also mean that the company is retracting from its
initial plan of seeing the facility operate independently inside the group
despite it being a surplus to requirement.  The Anglo-Dutch company earlier
ruled out a sale or a shut down of the plant except as a last resort.

Corus on Tuesday night said it had nothing to add to previous statements,
according to the report.

Potential buyers of the Teesside unit include LNM, a steel group run by
Indian entrepreneur Lakshmi Mittal, and CSN, Brazil's biggest steelmaker,
both already having big slab-making operations.


EMI GROUP: Posts Preliminary Results for Fiscal Year 2002
---------------------------------------------------------
EMI Group plc announces its preliminary results for the year ended 31 March
2003.

Financial overview

Year ended 31 March           2003      2002      Change
                                                     At constant
                                                       exchange
                                                         rates

Turnover                   GBP2175.4m  GBP2445.8m (11.1%) (8.4%)

Operating profit (EBITA)   GBP254.0m   GBP190.9m   33.1%   34.8%

Adjusted profit before tax1GBP177.3m   GBP153.3m   15.7%   17.9%
(PBT)

Adjusted PBT excluding HMV2GBP178.1m   GBP129.4m   37.6%   40.3%

Profit before tax    GBP319.3m  (GBP152.8m) GBP472.1m  GBP470.7m

Net profit after tax and
minority interests   GBP229.7m (GBP199.5m) GBP429.2m GBP427.2m

Adjusted diluted earnings per 15.6p   11.8p      32.2%     33.9%
share

Basic earnings per share      29.3p   (25.5p)    54.8p     54.5p

Notes:

1. Adjusted profit before tax, amortisation and exceptional items

2. HMV floated on London Stock Exchange in May 2002, at which time EMI sold
down its stake to 14.5%. The remaining holding was sold in November 2002.

EMI Group - strong recovery

  * Adjusted PBT (excluding HMV) up 38%, on turnover down 11.1%

  * Net profit after tax and minority interests increased GBP429.2m to
GBP229.7m

  * Net debt reduced by GBP198.1m to GBP859.8m, and net debt to EBITDA ratio
improved to 2.9x from 4.4x

  * Dividend maintained at 8.0p per share with dividend cover up to nearly
2.0x.

EMI Recorded Music - dramatic turnaround

  * Operating profit increased 81% to GBP150.5m on turnover down 10.2% at
constant currency

  * EBITA margins more than doubled from 4.1% to 8.5%, driven by both fixed
and variable cost savings

  * Substantial improvement in North America, returning to profitability
with 12% point margin increase

  * Progress being made against piracy

  * Flexible digital music initiatives rolled out in North America and
Europe

EMI Music Publishing - resilient

  * Turnover and operating profit held firm at constant currency with
meaningful growth in performance and synchronization revenue offsetting
decline in mechanical royalties.

  * Further 30% of Jobete acquired for $109.3m (approximately GBP68m) in
April 2003

Eric Nicoli, Chairman, said: "The year ended 31 March 2003 was one of
remarkable progress and achievement for EMI Group, all the more so in a
context of the global recorded music market declining by almost 9%. This
market movement was markedly worse than we, and others in the industry,
anticipated at the start of the year and demanded a swift and robust
response from all parts of EMI's business.

"We delivered the promised substantial improvement in profitability driven
by the turnaround of EMI Recorded Music, another solid performance from EMI
Music Publishing and tighter financial management across the group.
Furthermore, we have invested time and resources in strengthening our
culture and management capabilities to equip our businesses to compete more
effectively in tough market conditions and a rapidly changing environment.
These are the results of a company now being managed in a very different way
from the past.

"In the year ahead, while the market remains volatile and difficult to
predict, we expect it to decline further but, probably, at a slower rate
than last year.

"We have demonstrated that we have the resilience and flexibility to operate
effectively and profitably in a range of market outcomes and we aim to make
further progress in every part of our group."

Chairman's Statement

The year ended 31 March 2003 was one of remarkable progress and achievement
for EMI Group, all the more so in a context of the global recorded music
market declining by almost 9%.  This market movement was markedly worse than
we, and others in the industry, anticipated at the start of the year and
demanded a swift and robust response from all parts of EMI's business.

We delivered the promised substantial improvement in profitability driven by
the turnaround of EMI Recorded Music, another solid performance from EMI
Music Publishing and tighter financial management across the group.
Furthermore, we have invested time and resources in strengthening our
culture and management capabilities to equip our businesses to compete more
effectively in tough market conditions and a rapidly changing environment.
These are the results of a company now being managed in a very different way
from the past.

EMI Group

For the group as a whole, operating profit (EBITA) in the year improved by
33.1% to GBP254.0m on sales 11.1% lower at GBP 2,175.4m. Exchange rate
movements had a significant adverse impact; at constant currency, operating
profit was up 34.8% while sales declined by 8.4%, broadly in line with the
market.

Profit before tax, amortization and exceptional items improved by 15.7% to
GBP177.3m.   When adjusted for currency and the year on year impact of the
sale of our stake in HMV Group, the underlying improvement was 40.3%.

Under Roger Faxon's stewardship, EMI Group's balance sheet was completely
restructured with the effect of more than doubling the average maturity of
our debt. We converted our passive interest in HMV, Viva Media and other
non-core assets into active investment in our core business and, during the
course of the year, we reduced our net debt position by close to GBP200m
leaving year-end net debt at GBP859.8m, its lowest level for four years.

Our tax rate for the year was somewhat lower than in previous years at 25%,
mainly as a result of the improved North American profitability and a more
favorable business mix overall.

Net profit after tax and minority interests improved by GBP429.2m to
GBP229.7m compared with the previous year's loss of GBP199.5m. The resulting
improvement in adjusted diluted earnings per share was 32.2%, to 15.6 pence
per share.

The Board is recommending a final dividend of 6.0p per share, giving a full
year dividend of 8.0p per share, thus maintaining the previous year's level
and improving dividend cover to close to two times.

Recorded Music

In EMI Recorded Music, Alain Levy and David Munns have driven the
implementation of their far-reaching restructuring and reorientation plan
with the objective of changing completely the way we work.

The strength and professionalism of the management team at all levels is, I
believe, world class. The focus is now on sustainable, profitable sales, and
on finding, developing and effectively marketing artists who will have
long-term, successful careers.

Sales in Recorded Music fell 12.6% to GBP1,774.2m as the result of a
combination of factors including macro-economic effects in some regions, a
growing impact of music piracy in all its forms and the disruptive impact of
our restructuring activities, some of which took longer than originally
planned.

Our focus on generating profitable sales - rather than market share at any
cost - together with full delivery of the projected cost savings and
efficiency improvements from restructuring, resulted in an increase in
operating profit (EBITA) of 81% to GBP150.5m.  Our performance in North
America was particularly pleasing as we saw margin improve by over 12
percentage points.  The UK business had another year of excellent progress
and in South East Asia we moved into profit for the first time in a number
of years.

Music Publishing

EMI Music Publishing, under Martin Bandier's leadership, is, and has been
for many years, demonstrably the best in the industry.  While not immune to
the effects of a declining recorded music market from which over 50% of its
revenues derive, this business has, once again, shown great resilience and
has managed to maintain overall sales and profitability by developing and
exploiting other revenue streams.

Due entirely to currency movements, sales in the year fell marginally from
GBP416.4m to GBP401.2m and operating profit (EBITA) was 4% lower at
GBP103.5m.  At constant currency, sales were flat and operating profit was
down by just 0.5%.

Change

The extensive and challenging change program of the past year was designed
to put the group on a much sounder financial footing and to allow us to be
more flexible and responsive in the tough competitive conditions that we
expect to prevail in the future.  That objective has been achieved.

The scale of the changes implemented over the course of the year was massive
and their impact was often uncomfortable.  The improvement in the business
could not have been achieved without the extraordinarily hard work and
dedication of my colleagues across the world.  I am proud of them and the
way they have embraced the need for a different way of operating.

We have also seen change in our Board membership.  In May, Michael Jackson
stepped down after only two and a half years as the consequence of a change
of ownership of his employer resulting in a conflict of interest.  In July,
Hugh Jenkins retired after seven years of distinguished service and I thank
both Michael and Hugh for their support and wise counsel.  In September,
Peter Georgescu joined, bringing a wealth of valuable media, advertising,
consumer marketing and general management experience to bear on our
strategic deliberations.  Since the year-end, we have been joined by David
Londoner, a renowned former securities analyst with extensive knowledge of
the global media and entertainment industry and the North American
investment community.

The future

Content is at the core of EMI - developing and supplying pure music content
of the highest quality.  We are committed to providing consumers with the
music they want, in the format they want, at a value they find compelling
and we are working with a vast range of retailers, distributors, hardware
and software manufacturers to make that vision a reality.  At the same time,
EMI is at the vanguard of industry efforts to protect our content from
theft.  Music is valuable to the people who use it and to those who created
it and own it.  Stealing music is the same as stealing any other kind of
property and we will do everything within our power to prevent it.

In a world in which more music is being consumed than ever before, at EMI,
with our extremely deep and rich music content bank, we have a unique
opportunity to develop new revenue streams.

The weakness in the recorded music market is not yet over but we will be
unrelenting in our efforts to attack the root causes of decline and to find
ways to grow our business.

In the year ahead, while the market remains volatile and difficult to
predict, we expect it to decline further but, probably, at a slower rate
than last year.  We have demonstrated that we have the resilience and
flexibility to operate effectively and profitably in a range of market
outcomes and we aim to make further progress in every part of our group.

Recorded Music Operating Review
The global music market is undergoing a shift in its traditional shape and
structure that has far-reaching implications for the way the industry has
been accustomed to do business.

EMI Recorded Music entered the financial year with a commitment to changing
fundamentally the way it operates.  This initially involved reducing
overheads, including 1,900 jobs, to generate nearly GBP100m in annualized
fixed cost savings. This was a necessary process in order to create a
structure that is both scaled to the new size of the market and flexible
enough to take advantage of new opportunities that arise or are developed.

This restructuring has contributed to an operating profit (EBITA) uplift of
over 80%, while at the same time having some short-term negative impact on
revenues.  In a year where the market fell 8.7%, EMI Recorded Music's
turnover decreased 12.6% (10.2% in constant currency terms) to GBP1,774.2m.
This decrease is partly the result of general market forces, most notably a
significant increase in both digital and physical piracy.  It was also
driven by the disruption to day-to-day operations caused by the extensive
restructuring process, particularly in Continental Europe and at Virgin
America, as well as by the lower than expected performance of some local
repertoire releases in Japan.

While we recognize that, in the long term, sales growth is an important
objective, the year ended 31 March 2003 was clearly one during which we
repositioned EMI Recorded Music on profitable foundations, and its
performance did improve markedly.  Operating profit increased 81% to
GBP150.5m (GBP150.1m at constant currency), more than doubling operating
margins to 8.5% compared with 4.1% last year.

This margin increase is not simply the result of cutting the cost base.  In
the year just ended, we pursued an aggressive policy of refocusing Recorded
Music on its core business by streamlining the artist roster and exiting
unprofitable operations and costly joint ventures.

The improvement also demonstrates the importance of concentrating on
profitable, sustainable sales from artists with long-term potential.  EMI
had considerable global success with such artists, including the phenomenal
debut album from Norah Jones, Come Away With Me, which has now sold 13m
copies; the excellent second album A Rush of Blood to the Head from UK band
Coldplay and Robbie Williams' Escapology, both now nearing 6m copies; and
the definitive greatest hits from the Rolling Stones, now over 5m copies of
a double album.  We also had excellent regional successes from artists such
as Utada Hikaru, Renaud and Herbert Gronemeyer, whose album Mensch sold over
3m copies to become the highest selling album ever in Germany.

Looking at our performance on a regional basis, the turnaround in our North
American business was encouraging.  After five consecutive years of losses,
the new management team has delivered a return to profitability and a margin
increase of more than 12 percentage points.  While market share fell
significantly in the first half, there was a gradual increase over the
second half, with Norah Jones' eight Grammy awards in February a particular
highlight.

The changes made at Capitol have delivered initial successes from artists
including debut albums from The Vines and, more recently, Lisa Marie
Presley.  Virgin is now beginning to rebuild its roster and EMI is
increasingly confident of generating US-signed artists for worldwide
exploitation, while recognizing that progress will be gradual in this very
competitive market.

The UK had yet another impressive year and continues to be a major source of
repertoire both for local and international exploitation, as well as a
standard of excellence in extracting value from catalogue.

Continental Europe underwent the most comprehensive restructuring of all
territories that took longer than anticipated to complete.  Nonetheless, it
remains a highly profitable business, and had significant success with a
number of local repertoire releases, including albums from Renaud in France
and Herbert Gronemeyer in Germany.  With the restructuring now complete, we
expect to make progress at all levels.

Japan had some important successes, notably with Utada Hikaru's third album
Deep River, but nonetheless turned in a somewhat disappointing result as
certain significant local repertoire releases, particularly in the fourth
quarter, did not perform as well as expected. Despite tough market
conditions, we remain confident in the quality of our team in Japan and
their ability to deliver future successes.

Asia, outside of Japan, was another great success, turning in its first
profit in a number of years.  EMI is pursuing a very aggressive strategy to
improve both market share and profit in this region.  This includes a
significant push into China, illustrated by substantial investment in local
repertoire, which offers considerable potential despite severe piracy.

Results in Latin America were mixed.  There were significant setbacks in
Mexico resulting from piracy and poor local management performance.  This
management is in the process of being replaced. EMI also closed its
Venezuelan operations because of the severe economic problems in that
country.  At the same time, however, the region's most important market,
Brazil, returned to profitability and there was considerable progress in the
growing US Latin market.

Beyond improving immediate profitability, containing piracy has become
another major priority for EMI.  During the year, EMI Recorded Music created
a global anti-piracy team. Overall we have allocated substantial management
time to lobbying governments to enact and enforce stronger legal penalties,
and to identifying technologies and establishing procedures that protect our
music.  The group is determined to contain the sales erosion caused by
physical counterfeiting, illegal file sharing and CD burning.

In recent months we have started to see a shift in the attitudes of
governments as to the seriousness of the situation and are starting to
witness their willingness to confront the problem.

Piracy containment is one important part of the new environment. It is,
however, clear that consumers want to access music legally via the net and
we are making considerable efforts and progress in turning this into
reality.  EMI's catalogue is very widely available in digital delivery
services and the group has taken a leadership position in offering more of
our content on the net.  EMI is also actively pursuing opportunities offered
by the digital world such as ring tunes and video distribution as well as
gaining further insight into music consumers' behavior.

In the year under review, EMI Recorded Music began building the foundations
for the music company it aims to become, operating under principles that
focus on profitable sales growth and long-term artist development.  There is
more interest in, and consumption of, music than ever before, and there is a
tremendous opportunity ahead to legitimize and capitalize on this demand.

Looking ahead to the current financial year, the markets are likely to
remain challenging. However, we are confident of being able to face the
issues, both in terms of supplying high-quality music, for which there is
growing demand, and in maximizing the revenue EMI Recorded Music generates
from this music.  On this basis, we expect to improve market share.

Music Publishing Operating Review

EMI Music Publishing delivered another solid performance, despite the
challenges presented by the downturn in the global recorded music market.
For the year as a whole, operating profit (EBITA) fell from GBP107.8m in the
previous year to GBP103.5m in the year ended 31 March 2003.  This decrease
resulted from currency movements, in particular weakness in the US dollar,
and from a slight increase in corporate charges.  On a constant currency
basis and before central cost allocation, Music Publishing operating profit
(EBITA) increased marginally, from GBP110.6m in 2002 to GBP111.0m in the
year ended March 2003.

The turnover generating this margin also remained broadly flat on a constant
currency basis, at GBP416.6m compared with GBP416.4m in the previous year.
Taking into account currency effects, turnover fell 3.7% to GBP401.2m.

This resilient performance reflects the strength of EMI Music Publishing's
ability to develop new revenue sources and additional uses of music that
reduce its reliance on the recorded music industry.  Mechanical royalties,
primarily derived from the sale of music in CD format, now comprise only 53%
of our total turnover, down from 55% in the previous year, and 60% in 1998.

The 8.7% decline in the recorded music industry in the year ended 31 March
2003 did have an impact on mechanical royalties.  Nevertheless, with a fall
of only 3.5% at constant currency in mechanicals, we outperformed the global
market, demonstrating the continued success of our strategy of signing
leading writers across all genres, together with our ability to generate
repeated uses through re-recordings of songs in our existing catalogues, in
particular the great songs from the Motown era included in the Jobete
catalogue.

Performance income, derived from the public performance of songs in EMI's
catalogue, comprises 25% of EMI Music Publishing's turnover and grew 3.3% at
constant currency, representing the fifth consecutive year that this revenue
stream has increased.  Driving this growth is our strong chart share,
together with the increase in media outlets, the resolution of outstanding
cable rate disputes in the US, which increased revenues by bringing cable
royalty rates in line with other media, and increased efficiencies at the
local societies in the collection of publishing revenues.

Synchronization royalties generate 14% of Music Publishing turnover, and
also grew strongly, up 7.9% at constant currency.  This substantial increase
at a time when the global advertising market has been under pressure is a
considerable success.  It demonstrates the value in EMI's successful
exploitation of its catalogue not only in commercials but also in films, TV
programming and, increasingly, the video game market which uses music to
enhance game play.

Key elements in driving its synchronization revenues are Music Publishing's
business-to-business website and Music Spa.  The site has over 6,000 regular
users worldwide who can search our catalogues to suit a variety of music
needs.  Since its relaunch in February, daily traffic has increased by over
70%.  The Spa, housed in the company's New York office, is a creative
atmosphere with the technical capabilities that allow advertisers and their
agencies to work with EMI's Music Resources Group to sample and identify the
music that best fits the product and message of a commercial campaign.

Songs from Music Publishing's catalogues are also featured in a variety of
musicals, which EMI actively seeks to promote.  Current shows include: We
Will Rock You, based on the Queen catalogue; Mamma Mia, using the songs of
Abba; and Our House, featuring the songs of Madness.  In autumn 2003, a new
musical featuring the music of EMI-signed writer Rod Stewart is expected to
open in London's West End, and plans are underway for a Motown-based musical
to be written and produced by Motown founder Berry Gordy.

In North America, turnover fell 1.5% as gains in synchronization income were
offset by falls in mechanicals, but again by less than the overall market
decline.  EMI Music Publishing was once again named Publisher of the Year by
performance societies ASCAP and BMI and by Billboard magazine.  EMI Music
Publishing writers, artists and producers cumulatively earned 24 Grammys,
one-third of which went to Norah Jones and her debut album Come Away With
Me, which to date has sold 13m copies.

In the UK, turnover grew 3.8%, reflecting an increase in both mechanical and
performance income driven by our continued leadership position in the UK
charts.  EMI Music Publishing and its writers won numerous awards at every
major UK award ceremony, including six Brits and five Ivor Novello Music
Awards, and Music Week named us Publisher of the Year for the eighth year in
a row.

Continental European performance was mixed.  Certain markets, notably
Germany and Italy, were impacted by steep local market declines in recorded
music.  France countered that trend as the recorded music market grew 3%
year on year, while the Benelux countries also generated revenue gains.

Japan had a very strong year, increasing sales by over 5% in large part
because of the strong performance of Utada Hikaru's third album Deep River,
which sold over 4m copies in Japan alone.

Shortly after the end of the financial year, in April 2003, EMI acquired a
further 30% of the Jobete catalogue from Berry Gordy for US $109.3 m,
bringing EMI's total share in Jobete to 80%.  This gives EMI greater control
over its superb array of Motown songs, together with the financial benefit
of being able to consolidate it for tax purposes.

Successful writers contributing to this year included Norah Jones, Pink,
Enrique Iglesias, Pharrell Williams, and White Stripes, and new signings
included Dirty Vegas, Busted, Ms Dynamite and Sean Paul, to name a few.

New uses of Publishing's music contributed additional revenue streams to
income this year including ring tones and video games, as mentioned above.
The ring tone market has developed as cellular penetration has continued to
grow and users look for ways to personalize their phones.

For the current financial year, we expect to see further pressure on
mechanical royalties in the face of a continued expected decline in the
global recorded music market.  Nevertheless, we expect to continue to
exploit aggressively our impressive catalogue of songs, both current and
classic, in the synchronization market and develop new income streams, such
as ring tones, video games, and on-line uses.

Financial Review

The year ended 31 March 2003 was one of substantial challenge for EMI as its
primary market fell for the third year in a row.  However, it was also a
year of unprecedented accomplishment.

The group implemented a comprehensive reorganisation of its Recorded Music
division, reducing headcount by 1,900 and the ongoing fixed cost base by
nearly GBP100m.  Against a backdrop of lower sales, Recorded Music
substantially improved its operating margins driving its underlying profits
up 81% and, for the first time in five years, the US Recorded Music business
generated a profit.  Music Publishing yet again demonstrated its resilience
in the face of exceedingly difficult market conditions. By continuing to
diversify its income, it was able to hold firm its profits and margins.

The group also completed a sweeping balance sheet restructuring, more than
doubling average debt maturity to five years, and converted passive
interests in HMV, Viva Media and other assets into active investment in the
core business.  Joined with the improved operating performance and careful
cash management, the sale of these assets resulted in a reduction in net
debt of over GBP198m, reducing the company's leverage to below three times
EBITDA, down from 4.4 times just a year ago.

Group turnover fell by GBP270.4m (11.1%), including a decrease of GBP64.0m
from exchange on translation.  All regions had lower turnover in the year.
After excluding currency effects, the decrease was entirely in EMI Recorded
Music, reflecting both the global downturn in the recorded music market and
EMI's focus on ensuring that sales are delivered profitably.  At constant
currency, EMI Music Publishing sales remained flat.

Group operating profit (EBITA) increased 33.1%, from GBP190.9m in 2002 to
GBP254.0m in 2003, resulting from the impact of the cost savings implemented
in EMI Recorded Music over the financial year, together with additional
margin improvements in that business and a continued solid performance from
EMI Music Publishing.

Group turnover for the second half fell by GBP164.9m (12.0%) to GBP1,213.9m,
of which decrease GBP36.1m was attributable to exchange on translation.
Excluding the effects of currency, Recorded Music sales were down by
GBP120.7m or 10.4%. On a similar basis Music Publishing turnover decreased
by GBP8.1m, largely as the result of timing differences.

Group operating profit for the second half was GBP27.2m higher than last
year, at GBP175.0m.  This included a loss of GBP1.8m from exchange on
translation.  Second-half Recorded Music profits were up 33.7% to GBP121.9m
at constant exchange rates, reflecting the substantial turnaround in its
North American business and continued strong results the UK, partially
offset by decreases in other regions, particularly Continental Europe.
Timing differences resulted in Music Publishing operating profit falling
3.0% at constant exchange rates to GBP54.9m.

Following the exit in the previous year from loss-making Recorded Music
satellite operations, operating profit in associates moved from a loss of
GBP1.1m last year to a profit of GBP0.2m this year.

In May 2002, HMV Group plc listed on the London Stock Exchange, and EMI
simultaneously reduced its stake to 14.5%.  In November 2002, EMI sold this
remaining stake.  Therefore, the Group no longer consolidates HMV's
operating profit and interest charges, which last year were GBP44.6m and
GBP20.7m respectively.  For the period up to flotation, EMI's share of HMV's
operating profit was GBP0.4m, and of its finance charges, GBP1.2m.

Group finance charges of GBP76.1m were GBP15.7m higher than last year as the
result of higher interest rates following the restructuring of debt into
longer-term instruments, which more than offset the impact from the
substantial reduction in overall debt levels.  In February 2003, EMI
crystallized a reduction in the long-term cost of its US bond by unwinding
certain derivative positions.  The interest charge on these bonds will in
the future be offset by a proportion of the gain resulting from this action.

Adjusted profit before tax, amortization and exceptional items (adjusted
PBT) grew 15.7%, from GBP153.3m in 2002 to GBP177.3m in 2003.

Other items affecting earnings

The group tax rate, before amortization and exceptional items, fell to 25%
from 30% last year.  A major contributor to the reduction in the tax rate is
the return to profitability of our US business, which has brought forward
tax losses available for offset, and somewhat lower profits in Japan, the
group's highest tax-paying territory.

Amortization of copyrights acquired and goodwill on acquisition fell to
GBP42.8m from GBP51.3m in the previous year, reflecting the write-down of
investments in the year ended March 2002 in connection with the Recorded
Music restructuring and exchange.

During the period, the group incurred a non-cash charge of GBP24.9m arising
from the write-down of certain investments and other assets, including EMI
Group shares held in the Employee Benefit Trust.  This is reported as an
operating exceptional cost.  This is in contrast to the year ended 31 March
2002, in which the group incurred an operating exceptional charge of
GBP242.4m relating to restructuring and reorganization costs, mainly within
EMI Recorded Music.  In that same period, HMV Group also incurred
exceptional costs, of which EMI's share was GBP12.4m.

The group benefited from a non-operating exceptional profit of GBP209.7m,
largely arising from the disposal of its stakes in HMV and Viva Media AG,
offset by a modest loss relating to certain other disposals.

The minority interest charge has fallen from GBP8.5m to GBP6.4m, as a result
of the decrease in profitability of our Japanese Recorded Music business in
the year.

The overall group result was a profit of GBP229.7m, compared with a loss of
GBP199.5m in the previous year, an improvement of GBP429.2m.

Adjusted diluted earnings per share were 15.6p, compared with 11.8p.  The
Board is recommending a final dividend of 6.0p per share to result in a
total dividend of 8.0p per share, unchanged from last year.

Cash flow and net borrowings

The net cash inflow from operating activities was GBP117.2m.  After net
proceeds from acquisitions, disposals and financial investments of
GBP204.5m, capital expenditure of GBP59.2m, tax paid of GBP38.7m, net
interest costs of GBP4.6m (including the gain on the swap unwind discussed
above), dividends paid of GBP35.9m (including those to minorities) and
currency translation gains and other movements of GBP14.8m, net debt
decreased by GBP198.1m to GBP859.8m.

Pensions

The group continues to account under SSAP 24, but its disclosures also
include those required by FRS 17.  EMI maintains a number of defined benefit
plans around the world the largest of which is the UK pension plan.  As at
31 March 2002, that plan was in surplus by GBP68m, as calculated pursuant to
FRS 17.  With the decline in share prices to 31 March 2003, the asset value
of the fund has fallen.  Therefore, as calculated pursuant to the FRS 17
accounting standard, the fund would show a deficit as at 31 March 2003 of
GBP116m, or GBP81.2m net of deferred tax.  Under FRS 17, the calculation of
the net position of the fund is highly sensitive to several factors.  For
example, had the calculation been performed as of 15 May 2003 as opposed to
31 March 2003, the asset value of the fund would have been higher by almost
GBP40m, given the rise in share values in the intervening period.

The group is scheduled to receive the triennial actuarial valuation of the
UK fund as at 31 March 2003 in the coming months. Based upon the outcome of
that valuation, the group will review its funding policies with respect to
the fund.

Treasury policy

Treasury activities are carried out within a framework of policies and
guidelines approved by the Board, with control and monitoring delegated to
the Treasury Management Committee, chaired by the Group Chief Financial
Officer.  These policies aim to ensure that adequate, cost-effective funding
is available to the group at all times, and that exposure to financial risks
is minimized.  The existing Treasury policies were reviewed by the Board in
April 2002 and have remained substantially unchanged throughout the
financial year.

Financial instruments held by the group comprise derivatives, borrowings,
cash and liquid resources and other financial assets and liabilities.  Their
purpose is to raise finance for the group's operations.  Treasury policies
prohibit their use for speculative purposes.

Funding

During the year, EMI restructured its debt into medium and long-term
facilities.  The six-year sterling bond issued in May was increased in June
to GBP325m, and in August a further US$180m was raised from a private
placement of debt with maturities of between seven and 10 years.  Together
with net proceeds from the HMV disposal of GBP209.5m and GBP35.6m from the
sale of fixed asset investments, these funds were used to repay and cancel
part of the GBP1.3bn revolving credit facility finalized in April 2002.

The group borrows in various currencies at fixed and floating rates, and
uses swaps, caps and collars to manage interest rate exposure.  Unless
otherwise approved by the Board, Treasury policy is to keep between 25% and
75% of borrowings at fixed or capped rates.  As a result of the reduction in
borrowings during the year, and as approved by the Board, at the year end
virtually all borrowings were fixed or capped.

Foreign currency risk

The group faces currency exposure from exchange rate fluctuation against
sterling.  Balance sheet exposures are hedged to the extent that overseas
liabilities, including borrowings, provide a natural hedge.  Group policy is
not to undertake additional balance sheet hedging measures, nor to hedge
profit and loss account translation exposure.  Transaction exposures are
hedged, where there are material items that have a high probability of
occurring, with the use of forward exchange rate contracts.

To See Financial Statements:
http://bankrupt.com/misc/EMI_Group.pdf

CONTACT:  EMI GROUP PLC
          Amanda Conroy, Corporate Communications
          Phone: +44 20 7667 3216
          Siobhan Turner, Investor Relations
          Phone: +44 20 7667 3234

          BRUNSWICK
          Patrick Handley
          Phone: +44 20 7404 5959


GALLAHER GROUP: Announces Plans to Restructure European Operation
-----------------------------------------------------------------
Following a review, Gallaher has announced plans for the restructuring of
the Group's European operations. The plans take into account Gallaher's
broader international base and the synergies that can be achieved by
optimizing its European operational resources.

After careful consideration of the review, the Group is planning to cease
all manufacturing in its Dublin factory and also to reduce jobs in Austria
and the UK. Overall, around 430 operational jobs could be affected.

Commenting on the plans, Nigel Dunlop, Group Operations Director, said: "Any
proposal to reduce jobs is regrettable, particularly when our employees
contribute so much to the success of the Group. However, the restructuring
of our European operations will enable Gallaher to remain at the forefront
of operational efficiency and help to ensure the long-term success of the
Group and its employees."

The plans announced follow the closure of the Malmo factory last year, with
the incorporation of cigarette production into the Austrian factories and
handrolling tobacco production into the Lisnafillan factory, located in
Northern Ireland.

Briefings with employees are starting today [Tuesday] and there will be full
consultation concerning these plans.

Gallaher Group Plc, the international tobacco manufacturing and wholesale
company with headquarters in the UK, has leading positions in Austria,
Estonia, Germany, Greece, Kazakhstan, the Republic of Ireland, Russia,
Sweden and the UK. Gallaher's comprehensive brand portfolio includes Benson
& Hedges, Silk Cut, Mayfair, Sovereign, Sobranie, Dorchester, Prima, LD,
Memphis, Milde Sorte, Right, Blend, Hamlet, Old Holborn, Amber Leaf and
Condor.

CONTACT:  GALLAHER GROUP
          Claire Jenkins - Director, Investor Relations
          Phone: 01932 859777
          Home Page: http://www.gallaher-group.com

          Jeff Jeffery - Head of Corporate Affairs
          Phone: 01932 859777

          CARDEWCHANCERY
          Anthony Cardew
          Phone: 020 7930 0777


INFINEON TECHNOLOGIES: Wants to Take Over Norwegian SensoNor
------------------------------------------------------------
Infineon Technologies AG (FSE/NYSE: IFX), a world leading semiconductor
manufacturer, announced that it plans to acquire SensoNor ASA, headquartered
in Horten, Norway, with the aim of significantly strengthening its position
in semiconductor sensors for the automotive business. Stockholders are due
to receive a takeover bid after [Tuesday's]'s extraordinary general meeting
of shareholders of SensoNor, a leading provider of tire pressure and
acceleration sensors. A capital increase for cash is being made at the same
time. Infineon expects that it will pay around Euro 48 million to complete
the acquisition.

As part of the terms of the offer, Infineon wants to purchase 138.5 million
shares from institutional and private investors at a price of NOK 2 per
share. This corresponds to an investment of around Euro 35 million. SensoNor
will also issue 100 million new shares to Infineon for a cash contribution
of NOK 1 per share, making an equivalent total of around Euro 13 million.

The planned friendly takeover of SensoNor would make Infineon the market
leader of the tire pressure sensor segment. The advantage of this
transaction lies in combining the two companies' existing development and
production expertise. SensoNor's tire pressure sensors have already been
fully qualified by leading car manufacturers with whom long-term supply
agreements have been concluded.

"This planned takeover means we're consequently pursuing our strategy of
further strengthening our already leading position in the automotive sector,
and we're aiming to double our market share in automotive semiconductor
sensors to 15 percent," said Dr. Reinhard Ploss, head of Infineon's
Automotive & Industrial Electronics Group. "We're Europe's biggest
manufacturer of semiconductor solutions for automotive electronics and the
world's second biggest. Acquisition will allow us to significantly boost our
existing pressure sensor business; we'll also be able to ideally enlarge our
product portfolio for semiconductor sensors to include acceleration
sensors."

The market for semiconductor sensors in automotive applications will
increase by up to 20 percent per year. Sensors that check tire pressure are
the biggest growth driver for pressure sensors. Regulations in this area
mean car manufacturers will be fitting around 10 percent of new vehicles
registered in the USA with tire pressure monitoring systems by the end of
2003; in 2004 this level will increase to about 35 percent, and in 2005 to
65 percent.

Infineon's Automotive & Industrial group, headquartered in Villach, Austria,
reached in the second quarter revenues of another all-time high of Euro 354
million. The company's performance efficiency in automotive electronics is
based on the innovative strength of the more than 500 engineers working in
key technologies such as sensor technology, safety systems, engine
management, and telemetry. Infineon has more than 25 years' experience in
automotive electronics. An Infineon chip is used for engine management in
one in three cars worldwide and in every second car in Europe. Infineon
chips control the power supply systems for everything from light bulbs to
the speedometer, ignition system, and adverse weather lamps in one in two
cars.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system
solutions for the automotive and industrial sectors, for applications in the
wired communications markets, secure mobile solutions as well as memory
products. With a global presence, Infineon operates in the US from San Jose,
CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In
fiscal year 2002 (ending September), the company achieved sales of Euro 5.21
billion with about 30,400 employees worldwide. Infineon is listed on the DAX
index of the Frankfurt Stock Exchange and on the New York Stock Exchange
(ticker symbol: IFX). Further information is available at
http://www.infineon.com

About SensoNor

SensoNor was founded in 1985 in Horten, Norway, and is now a globally
leading developer and volume producer of sensors and products based on
micro-electromechanical systems. The company is quoted on the Oslo Stock
Exchange (www.oslobors.no under ticker symbol SEN) and employs 170 people.

                     *****

Infineon earlier this month announced measures to accelerate corporate
restructuring.  The company is banking on realizing massive savings,
including by the further streamlining of corporate structures as well as
through the implementation of the Agenda 5-to-1 program to restore
profitability.  The 5-to-1 program incorporates expansion of the firm's
profitable solution business.

CONTACT:  INFINEON TECHNOLOGIES
          Investor Relations
          Phone: +49-89-234-26655
          Fax: +49-89-234-26155
          E-mail: investor.relations@infineon.com


INDIGOVISION GROUP: Court OKs Plan to Return Cash to Shareholders
-----------------------------------------------------------------
IndigoVision Group plc announces that the Court of Session on Tuesday
confirmed the Company's reduction of its share premium account and share
capital (a proposal which will result in the return of 17p per share to
shareholders (in excess of GBP11.7 million in aggregate)).

As announced on 15 May 2003, the Record Date for the return of cash was
Monday 19 May 2003 and only those persons registered in the Company's
register of members as at close of business on the Record Date are entitled
to participate in the return of cash.

The Court order confirming the return of cash will be registered with the
Registrar of Companies on Wednesday 21 May 2003 (the 'Effective Date').
With effect from close of business on the Effective Date every 10 issued
ordinary shares of 0.1p resulting from the share capital reduction will be
consolidated into an ordinary share of 1p.  Application has been made to the
UK Listing Authority for the 6,919,976 ordinary shares of 1p each which will
be in issue immediately following the consolidation to be admitted to the
Official List and to the London Stock Exchange for these shares to be
admitted to trading.

Admission of and commencement of dealings in such shares is expected to
commence on Thursday 22 May 2003, being the business day immediately
following the Effective Date.

For those qualifying shareholders who hold their shares in certificated
form, cheques are expected to be posted on Wednesday 28 May 2003.  New share
certificates will also be posted at that time.

For those qualifying shareholders who hold their shares in uncertificated
form, payment is expected to be made into CREST accounts on Wednesday 28 May
2003 and the new ordinary shares are expected to be credited to such
accounts on Thursday
29 May 2003.

If any of the above dates should change, revised dates will be notified to
shareholders by an announcement on a Regulatory Information Service.

                     *****

In December, TCR-EU wrote: Technology firm IndigoVision would
like to give back GBP11 million to shareholders.

Bridgewell Securities analyst Richard Lucas said: "There's
clearly been quite a bit of shareholder pressure to release some
of the cash. This should help defend themselves against a
takeover."  The GBP11 million equates to about 16 p per share.

The struggling Edinburg technology is currently a takeover target after
being hit by the slump in the technology stock.

CONTACT:  INDIGOVISION
          Oliver Vellacott (CEO)
          Phone: + 44 (0)131 475 7200


JOHN PARTRIDGE: Joint Administrators Seek Investors
---------------------------------------------------
JOHN PARTRIDGE
PARTIDGE ENGLAND LIMITED (In Administration)

Trading as John Partridge and Montgomery by John Partridge

The Joint Administrators, Stephen Cork and Anthony Murphy, are looking at
the options for the survival of the company and seek either investors or an
outright purchases of either the whole business or its assets and brands.

The business is a modern, British clothing brand and concept with an
international distribution network and strong order book.

CONTACT:  SMITH & WILLIAMSON LIMITED
          Robyn Clayton
          No. I Riding House Street, London
          W1A 3AS
          E-mail: rmc@smith.williamson.co.uk
          Phone: 020 7637 5377
          Fax: 020 7323 5683


MARCONI PLC: Moody's Investors Service Withdraws Debt Ratings
-------------------------------------------------------------
Moody's Investors Service said Monday it withdrew the debt ratings of
Marconi plc after the company's schemes of arrangement become effective and
legally binding.

The telecom company, Marconi plc, announced last week it obtained permanent
injunctions and orders of the U.S. Bankruptcy Court in respect of the plc
and Marconi Corporation plc schemes of arrangement.

The scheme includes an exchange of debt into cash, new notes and shares.

The plc shares ceased trading at 4:30 p.m. on May 16, 2003.  Marconi's
respective scheme creditors and the new notes began trading Monday, May 19,
2003.

The ratings withdrawn were Marconi plc's senior implied rating of Caa3,
senior unsecured issuer rating of Ca, and the Ca ratings for the company's
EUR1,000 million 6.375% Guaranteed Eurobonds due 2010, EUR500 million 5.625%
Guaranteed Eurobonds due 2010, US$900 million 7.75% Guaranteed Bonds due
2010, and US$900 million 8.375% Guaranteed Bonds due 2030.


PARKINSON ENGINEERING: Administrators Offer Business for Sale
-------------------------------------------------------------
Offered for sale by Joint Administrators Julie A. Swan & Peter J. Yeldon of
Middleton Partners

-- GBP10 million turnover in y/e March 2003

-- 70 employees

-- Established for 32 years

Mechanical Engineers implementing Design, Supply and Installation of Air
Conditioning, heating and ventilation systems.

-- Potential forward order book in excess of GBP10 million

-- Assets over GBP2.5 million

CONTACT:  MIDDLETON PARTNERS
          Phone: 0207 908 6190
          Mark Smillie
          Phone: 07710 466 166


ROYAL & SUNALLINCE: Lender's Mortgage Insurance Rating Withdrawn
---------------------------------------------------------------- Fitch
Ratings, the international rating agency, has affirmed the 'A' Insurer
Financial Strength rating of Royal & Sun Alliance Lenders Mortgage Insurance
Limited ('R&SALMI') of Australia, removing it from Rating Watch Evolving. At
the same time, Fitch has withdrawn the rating. This follows the decision by
management to place R&SALMI into run-off effective 31 March 2003.

                     *****

Royal & Sun Alliance Insurance Group Plc, headquartered in London, England,
had total assets of GBP 60.0 billion at 31 December 2002.

The insurer is launching an Initial Public Offering of its Australian arm
Promina in an effort to raise cash to refurbish its finances and fund
asbestos claims in the U.S.

CONTACT:  FITCH RATINGS
          Michael Herlihy, Brisbane
          Phone: +61 7 3222 8600


ROYAL & SUNALLIANCE: RMBS With R&SA Mortgage Insurance Affirmed
---------------------------------------------------------------
Fitch Ratings, the international rating agency, affirms the 'AA-' ('AA
minus') ratings on the subordinated tranches of 28 Australian residential
mortgage backed securities (RMBS) transactions that have Royal & SunAlliance
Lenders Mortgage Insurance Ltd ("R&SALMI") as a provider of lender's
mortgage insurance (LMI). The Rating Watch Evolving put in place 12 November
2002 pending the successful initial public offering of Royal & Sun Alliance
Insurance PLC's Asia Pacific operations is removed with immediate effect.
Today [Tuesday's]'s action follows a review of the discontinued operation of
R&SALMI, a wholly-owned subsidiary of Promina Group Limited ("Promina",
formerly Royal & Sun Alliance Insurance Australia Limited).

Although R&SALMI ceased to write new business from 31 March 2003, Promina
will continue to manage the existing operation during the run-off period. In
addition, during run-off, Promina is required by the Australian Prudential
Regulatory Authority ('APRA') to maintain sufficient capital to support its
existing business. The information received during the review of the capital
position of R&SALMI is sufficient to support the current outstanding
subordinated tranches of 28 RMBS transactions at 'AA-' ('AA minus').

The 'AA-' ratings for the subordinated tranches of the following
transactions are affirmed: ARMS II Euro Fund I ARMS II Euro Fund II ARMS II
Euro Fund IV ARMS II Euro Fund V ARMS II Fund III ARMS II Fund VI ARMS II
Fund VIII ARMS II Fund XII Interstar Millennium Series 2000-2 Trust
Interstar Millennium Series 2000-3E Trust Interstar Millennium Series 2000-5
Trust Interstar Millennium Series 2001-1E Interstar Millennium Series 2001-2
Trust Interstar Millennium Series 2002-2 Trust Kingfisher Trust 2001-1G PUMA
Masterfund E-2, Series 1 PUMA Masterfund E-3, Series 1 and 2 PUMA Global
Trust No. 1 PUMA Global Trust No. 2 RAMS Mortgage Corporation Limited,
Series 5E RAMS Mortgage Corporation Limited, Series 6E RAMS Mortgage
Corporation Limited, Series 7E (I) RAMS Mortgage Corporation Limited, Series
8 RESIMAC 2001-1 Trust Series 2001-1 TORRENS Trust Series 2002-1 TORRENS
Trust Westpac Securities Administration Limited, Series 1998-1G WST Trust
Westpac Securities Administration Limited, Series 1999-1G WST Trust.

CONTACT:  FITCH RATINGS
          Huxley Somerville, Sydney
          Phone: +612 9375 2171
          Stephanie Keats, Sydney
          Phone: +612 9375 2182
          Michael Herlihy, Brisbane
          Phone: +617 3222 8613


SHETLAND NORSE: Receivers Offer Assets, Business for Sale
---------------------------------------------------------
SHETLAND NORSE PRESERVING COMPANY LIMITED (In Receivership)

The Joint Receivers, J C Reid and W K Dawson offer for sale the business and
assets of the Company.

-- Fish and Shellfish Cannery.

-- Freehold premises in Mid Yell, Shetland.

-- Broad UK and European customer base including blue chip clients.

-- State of the art fish canning line (3 years old).

-- Turnover of GBP1.9 million for the year ended 30th April 2002 and GBP1.7
million for the year ended 30th April 2003.

CONTACT:  DELOITTE & TOUCHE
          Saltire Court
          20 Castle Terrance
          Edinburgh
          EH1 0BR
          Phone: 0131 535 7426
          Fax: 0131 535 7777


SPIRENT PLC: Chairman Says Trading Performance Expected
-------------------------------------------------------
At the Annual General Meeting of Spirent plc (LSE: SPT; NYSE: SPM), a
leading international network technology company, held on Tuesday John
Weston, Chairman, made the following statement:

"Spirent's trading performance in the first quarter of 2003 has been in line
with expectations against a background of continuing tough conditions in the
telecoms sector, with all our operating groups profitable and cash
generative.

"As part of our ongoing control of costs we have implemented further cost
reductions in the Communications group which are expected to deliver
annualized savings of GBP5.0 million at an exceptional cost of GBP1.0
million in cash.  In addition we have exited from our under-performing
optical test activities at an exceptional cost of GBP3.0 million, of which
GBP2.4 million is in cash.  Optical test sales were GBP0.7 million in the
year to 31 December 2002.

"Net debt at the end of April 2003 reduced to GBP103.0 million, compared
with GBP161.8 million at 31 December 2002, following completion of the
divestment of our interests in WAGO, our interconnection joint venture.

"Difficult trading conditions continue to be experienced by our
Communications group with many of our key customers maintaining a short term
outlook in respect of the timing of capital spending and we expect this to
continue throughout 2003.  We believe that the longer term outlook for our
products and services remains positive with future opportunities being
created by the continuing strong underlying growth in data traffic and the
development of next-generation networks worldwide."

About Spirent

Spirent plc is an international network technology company providing
state-of-the-art systems and solutions for a broad range of customers
worldwide.

Our Communications group is a worldwide provider of integrated performance
analysis and service assurance systems for next-generation network
technologies.

Spirent's solutions accelerate the development and deployment of network
equipment and services by emulating real-world conditions and assuring
end-to-end performance of large-scale networks.  Our Network Products group
provides innovative solutions for fastening, identifying, insulating,
organising, routing and connectivity that add value to electrical and
communication networks in a wide range of applications.  Our Systems group
offers integrated product solutions for the aerospace and power controls
markets.  Further information about Spirent plc can be found at
http://www.spirent.com

Spirent plc is listed on the London Stock Exchange (ticker: SPT) and on the
New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209) with one
American Depositary Receipt representing four Ordinary shares.

CONTACT:  SPIRENT PLC
          Nicholas Brookes, Chief Executive
          Phone: +44 (0)1293 767676
          Eric Hutchinson, Finance Director

          Catherine Nash, Investor Relations
          Phone: +44 (0)1293 767676


WUNDERCARS LIMITED: Receivers Offer Business for Sale
-----------------------------------------------------
The Joint Administrative Receivers Offer for Sale the Business and Assets of
this Internet Car Sourcing Company

Principal Features include:

-- Turnover circa GBP6.2 million

-- Fully equipped Internet sales facility

-- 60 confirmed orders

-- Potential forward orders circa GBP2/3 million

-- Fifty new and used cars

-- Experienced staff

CONTACT:  MALCOLM GOOD, PHILIP DAVIES AND SONS
          Edward House, 133 Bramcote Avenue,
          Nottingham NG9 tBX
          Phone: 0115 943 6444
          Fax: 0115 943 6555
          E-mail: sg@pdsauctioneers.co.uk


                             *********


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 publication
in any form (including e-mail forwarding, electronic re-mailing and
photocopying) is strictly prohibited without prior written permission of the
publishers.

Information contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year, delivered via
e-mail.  Additional e-mail subscriptions for members of the same firm for
the term of the initial subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *