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

                           E U R O P E

             Friday, July 18, 2003, Vol. 4, No. 141


                            Headlines


A U S T R I A

WOLFORD AG: FY2002 Sales Slip 30% Due to Store Closures


F R A N C E

ALSTOM SA: Bags Strasbourg's EUR100 Million Supply Contract
FRANCE TELECOM: E.U. Commission Fines Unit for Predatory Pricing
SUEZ SA: Unit Ups Stake in Nation's No. 2 Power Firm


G E R M A N Y

DEUTSCHE TELEKOM: Prices US$2 Billion Bond Offering
DEUTSCHE TELEKOM: Sells Entire Stake in Kabel Baden-Wurttemberg
INTERSHOP COMMUNICATIONS: Board Member Werner Fuhrmann Resigns
NETLIFE AG: Boasts of Steady Improvement in Group Performance
THYSSENKRUPP AG: Restructuring to Cost 30,000 Jobs in 33 Units


H U N G A R Y

KERESKEDELMI ES HITELBANK: Fitch Changes Outlook to Negative
KERESKEDELMI ES HITELBANK: Deals Involving Public Funds Probed


I R E L A N D

VOLEX EUROPE: To Close Factory, Axe Jobs in Castlebar Plant
WATERFORD CRYSTAL: Plans to Trim Down Workforce Further


I T A L Y

FIAT SPA: Adjusts Exercise Price of Ordinary Share Warrants


N E T H E R L A N D S

ASML HOLDING: Reports EUR64 Million Net Loss for Second Quarter
KONINKLIJKE AHOLD: Close to Selling Santa Isabel Stores in Chile


P O L A N D

BANK MILLENNIUM: Discloses Resolutions Approved at AGM
KOMPANIA WEGLOWA: Losses Now Amount PLN575 Million
LOT AIRLINES: Reduces Commission Paid to IATA Agents
UPC POLSKA: Files Prepackaged Plan in Delaware Bankruptcy Court
UPC POLSKA: Signs Up BSI as Court Claims and Noticing Agent


S W E D E N

OM AB: Announces Interim Report for January to June 2003
SONY ERICSSON: Reports Improvement in Two Core Business Areas


S W I T Z E R L A N D

SWISS INTERNATIONAL: Reaches Crucial Deal with Pilots


U N I T E D   K I N G D O M

ABERDEEN ASSET: Misses Target to Divest Property Business
ACCIDENT GROUP: Insurers Mull Legal Action Versus Directors
CORDIANT COMMUNICATIONS: Board Nominees Reject Offer
CORUS GROUP: To Buy, Sell 50% Stake of Arcelor in Joint Venture
EINSTEIN GROUP: Hearing on Appointment of Administrator Moved

HAMLEYS PLC: Waterstone Expected to Bow Out of Bidding Process
LE MERIDIEN: Due Date Expires as Rescue Talks Continue to Wallow
MARCONI CORPORATION: To Pay Interest on Junior Notes in Cash
NETWORK RAIL: Losses Leave Huge Hole on Rail Authority's Pocket
ROYAL & SUNALLIANCE: Outlook of U.S. Units Revised to Negative
SILENTNIGHT HOLDINGS: Receives 140p/share Indicative Offer
TELEWEST COMMUNICATIONS: To Publish Interim Results End of July


                            *********


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A U S T R I A
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WOLFORD AG: FY2002 Sales Slip 30% Due to Store Closures
-------------------------------------------------------
Wolford AG, which is listed on the Vienna Stock Exchange, dealt relatively
well with the demanding economic and industry climate in the year to the end
of April 2003.  Consolidated sales in the past fiscal year reached EUR128.8
million compared to EUR137.6 million one year earlier.

Despite this decrease, Wolford clearly achieved the turnaround.  Net income
was EUR2.5 million, up from a net loss of EUR4.6 million in the previous
fiscal year.  A full 30% of the decrease in sales revenue was attributable
to the closing of unprofitable boutiques with associated loss of business.
The newly opened stores were not yet able to make up for the loss of
business from the closings.  Only in the quarters to come will they unfold
their high potential to drive up sales.  The total number of boutiques
remained constant at 248.

Almost one-third of the revenue decline was caused by exchange rate
fluctuations.  Over the fiscal year the U.S. dollar, in which 14.2% of Group
sales were billed, lost 23.6% of its value against the euro.  The British
pound fell by 12.8% and the Swiss franc by 3.4% as measured against the
euro.  EBITDA rose by a substantial 56.4% from EUR7.7 million to EUR12.1
million last year, resulting in EBITDA margin growth to a new margin of 9.4
percent.  The operating result after all restructuring costs improved from
(EUR 2.5 million) to EUR3.4 million, making the EBIT margin 2.6%.

Earnings before taxes improved by EUR7.2 million to EUR1.4 million.  Net
income was EUR2.5 million, an increase of EUR7.1 million from one year
earlier.  Earnings per share were EUR0.52, up from a loss of EUR0.97 in the
previous year.

Wolford's management aims for a significant improvement in profit margins in
the medium and long term.  Restructuring has optimized the internal factors
at Wolford to such an extent that it will only take moderate growth in sales
to achieve disproportionately high profit growth.  Ultimately, however, the
recovery in consumer confidence and improved economic conditions will be the
crucial factor for Wolford's business success.

CONTACT:  WOLFORD AG
          Fritz Humer, CEO
          Phone: +43 (0) 5574/690 ext. 1250
          Peter Simma, CFO,
          Phone: +43 (0) 5574/690 ext. 1213
          E-mail: investor@wolford.com
          Homepage: http://www.wolford.com


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F R A N C E
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ALSTOM SA: Bags Strasbourg's EUR100 Million Supply Contract
-----------------------------------------------------------
The Compagnie des Transports Strasbourgeois, the public-transport operator
of Strasbourg, France, has awarded ALSTOM a contract worth about EUR100
million for the supply of 35 CITADIS trams.  The contract includes an option
for up to 12 additional trams, an option for spare parts management and an
option for rolling-stock maintenance.

These trams are part of the CITADIS range and have been adapted to the
specific requirements of the Strasbourg environment.  The full low floor
trams are fitted with a small bogie at either end in order to follow the
network's curves more smoothly and provide harmonious movement.  They are
2.4 meters wide and can carry 288 passengers.  They will serve the entire
tramway network of the Strasbourg area.  This third batch of trams will
serve to increase the transport offering of the Strasbourg urban community
by 60% by 2006-2008

"I'm delighted that the Compagnie des Transports Strasbourgeois has shown
its confidence by choosing ALSTOM for its tram-fleet expansion in this
international invitation to tender," said Patrick Kron, President & CEO of
ALSTOM.  "The choice demonstrates the competitiveness of our CITADIS family
nationally and internationally."

ALSTOM will build the trams at its plants in France, in particular La
Rochelle and Reichshoffen and the first deliveries are scheduled for mid
2005.  The CITADIS family of trams offers flexible, modular solutions for
rapidly growing cities.  The CITADIS concept combines standardization of
components with customization of interior and exterior design in order to
meet the individual requirements of each city in terms of aesthetics,
comfort and accessibility.

ALSTOM trams have been sold in more than 25 cities around the world.  Paris,
Barcelona, Rotterdam, Dublin and Melbourne have chosen CITADIS.  Among the
440 CITADIS trams already sold, the 140 already in service have carried more
than 150 million passengers over some 10 million kilometers.

ALSTOM is a global leader in energy and transport infrastructure.  The
Company serves the energy market through its activities in the fields of
power generation and power transmission and distribution, and the transport
market through its activities in rail and marine.  In fiscal year 2002/03,
ALSTOM had annual sales in excess of EUR20 billion and employed around
100,000 people in over 70 countries worldwide.

                     *****

Alstom is currently disposing assets to offset an expected EUR1.3 billion
loss in the year to March 2003.  The transmission and distribution unit sale
is part of a drastic restructuring plan aimed at reducing its debt load from
EUR5 billion to between EUR2 billion and EUR2.5 billion by March 2005.
Earlier this year, it sold its turbines business to Siemens for EUR1
billion.

CONTACT:  ALSTOM SA
          Investor relations
          E. Chatelain
          Phone: +33 1 47 55 25 33
          E-mail: investor.relations@chq.alstom.com


FRANCE TELECOM: E.U. Commission Fines Unit for Predatory Pricing
----------------------------------------------------------------
The Commission has adopted a decision against Wanadoo Interactive, a
subsidiary of France Telecom, for abuse of a dominant position in the form
of predatory pricing in ADSL-based Internet access services for the general
public.  The Commission found that, up to October 2002, the retail prices
charged by Wanadoo were below cost.  This practice restricted market entry
and development potential for competitors, to the detriment of consumers, on
a market, which is key to the development of the information society.  In
view of the gravity of the abuse and the length of the period over which it
was committed, the Commission is imposing a fine of EUR10.35 million.

From the end of 1999 to October 2002, Wanadoo, a 72% owned subsidiary of
France Telecom, marketed its ADSL services known as Wanadoo ADSL and eXtense
at prices that were below their average costs.  It emerged from the
Commission's investigations that the prices charged by Wanadoo were well
below variable costs until August 2001 and that in the subsequent period
they were approximately equivalent to variable costs, but significantly
below total costs.  Since the mass marketing of Wanadoo's ADSL services
began only in March 2001, the Commission considers that the abuse started
only on that date.

Wanadoo suffered substantial losses up to the end of 2002 as a result of
this practice.  The practice coincided with a company plan to pre-empt the
strategic market for high-speed Internet access.  While Wanadoo was
suffering large-scale losses on the relevant service, France Telecom, which
at that time held almost 100% of the market for wholesale ADSL services for
Internet service providers (including Wanadoo), was anticipating
considerable profits in the near future on its own wholesale ADSL products.

Wanadoo's policy was deliberate, since the company was fully aware of the
level of losses that it was suffering and of the legal risks associated with
the launch of its eXtense service.  According to in-house company documents,
the company was still expecting at the beginning of 2002 to continue selling
at a loss in 2003 and 2004.

The abuse on which the Commission has taken action was designed to take the
lion's share of a booming market, at the expense of other competitors.  From
January 2001 to September 2002, Wanadoo's market share rose from 46% to 72%,
on a market that saw more than a five-fold increase in its size over the
same period.  This level of market penetration by Wanadoo is roughly what
Wanadoo was expecting by 2004.  The level of losses required in order to
compete with Wanadoo had a dissuasive effect on competitors.  At the end of
the period during which the abuse was committed, no competitor held more
than 10% of the market, and Wanadoo's main competitor had seen its market
share tumble.

One ADSL service provider, Mangoosta, went out of business in August 2001.
The effects of Wanadoo's conduct were not confined to competitors on the
ADSL segment, but extended to cable operators offering high-speed Internet
access.

The abuse came to an end in October 2002, with the entry into force of new
wholesale prices charged by France Telecom, more than 30% down on the
previous prices charged.  Since then, the French high-speed Internet access
market has been growing much more rapidly and in a more balanced way as far
as the various competitors are concerned.  Between December 2000 and
September 2002, the market had seen a five-fold increase in size.  Market
growth picked up strongly subsequently, with the ending of the abuse, and
the number of Internet subscribers grew more between September 2002 and
March 2003 (seven months) than between March 2001 and August 2002 (seventeen
months).

The Commission's decision marks the end of an investigation initiated in
September 2001 on the basis of information obtained as part of the sector
enquiry into local loop unbundling.  Although the abuse has been
discontinued, the Commission felt it important to adopt a decision because
of the risk of the abuse being repeated.

The Commission considers that practices designed to capture strategic
markets such as the high-speed Internet access market call for particular
vigilance.

The decision follows the decision on May 21 in which the Commission fined
Deutsche Telekom for the prices it charged for access to the local loop.
The two decisions reflect the Commission's determination to prevent
exclusionary practices by incumbent operators on strategic markets.

The Commission may undertake investigations in other Member States of the
same type as that carried out in the Wanadoo case.

Background

High-speed Internet access allows download speeds ten times faster than
those possible with low-speed Internet access.  The ease of Internet use and
the volumes of data exchange it allows mean that it is a strategic market
key to the development of the information society. A DSL (asymmetric digital
subscriber line) provides high-speed Internet access using a telephone line.
Cable modem technology, which uses cable television networks, is an
alternative to ADSL technology in areas served by cable networks.

The decision relates to two ADSL services provided by Wanadoo, both allowing
download speeds of 128 kbit/s and upload speeds of 512 kbit/s: the first is
the Wanadoo ADSL service, launched in November 1999, while the other is the
eXtense service, launched in January 2001.  The two services are very
comparable. However, in the case of the ADSL service, the subscriber
concludes two separate contracts, one with France Telecom for the supply of
the ADSL access service known as Netissimo, the other with Wanadoo for the
supply of the Internet access service proper.  In the case of the eXtense
service, the subscriber concludes a single contract, with Wanadoo, which
provides the whole of the service (ADSL access + Internet access) The
inception of the abuse coincided with the deployment of the eXtense
facility, which came at the same time as the stepping-up of Wanadoo's
commercial efforts.

Community case law (1) applies two tests to establish whether an abuse in
the form of predatory pricing has been committed: where variable costs are
not covered, an abuse is automatically presumed; where variable costs are
covered, but total costs are not, the pricing is deemed to constitute an
abuse if it forms part of a plan to eliminate competitors.  The two tests
have been applied in the Commission's decision, for the periods before and
after August 2001.

In this instance, the Commission carried out adjustments to costs and
revenue so as to take account of the characteristics of a strongly growing
market.  In particular, customer acquisition costs were spread and written
off over a number of years.

The investigations began in September 2001.  An initial statement of
objections was sent to Wanadoo in December 2001.  Following an inspection on
the company's premises carried out in April 2002, a further statement of
objections was sent to Wanadoo in August 2002.


SUEZ SA: Unit Ups Stake in Nation's No. 2 Power Firm
----------------------------------------------------
Electricite de France and Electrabel, a subsidiary of the SUEZ Group, have
reached an agreement on the sale of Electricite de France's 22.22% stake in
the capital of Compagnie Nationale du Rhone.  The sale will boost
Electrabel's shareholding to 47.82% by the end of 2003, respecting the
public majority required by law.

Compagnie Nationale du Rhone is France's second biggest producer of
electricity and has been an independent power producer since April 2001.
The transaction proves Electricite de France's willingness to participate in
opening up the French electricity market, and enables the SUEZ Group to
continue developing on the French market.  The financial conditions in which
the deal was transacted highlight the historical role played by Electricite
de France in the context of the general operating contract.

                     *****

Suez is currently reaching for a EUR500 million cost-saving target as a key
part of its sweeping restructuring launched in January to reduce its
burgeoning EUR26 billion debt.


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G E R M A N Y
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DEUTSCHE TELEKOM: Prices US$2 Billion Bond Offering
---------------------------------------------------
Deutsche Telekom AG announced on Tuesday the pricing for a US$2 billion
offering of bonds to be issued by Deutsche Telekom International Finance
N.V. and guaranteed as to principal and interest by Deutsche Telekom AG.

The bonds are to be issued in two tranches.  There is to be a ten-year
tranche in the aggregate principal amount of US$1.25 billion and a five-year
tranche in the aggregate principal amount of US$750 million.

The ten-year bonds due July 22, 2013 have been offered to investors at the
price of US$99.233 per US$100 principal amount of bonds.  They are to have a
stated coupon of 5.25% and an effective re-offered yield to maturity of
5.35%.   The five-year bonds due July 22, 2008 have been offered to
investors at the price of US$99.753 per US$100 principal amount of bonds.
They are to have a stated coupon of 3.875% and an effective re-offered yield
to maturity of 3.93%.

The offering represents a new financing.

The lead managers for the offering are Bank of America, CSFB and Lehman
Brothers.  The co-lead managers are ABN Amro, Barclays, BNP Paribas,
Dresdner Bank, HSBC, UBS Warburg and WestLB.

When available, a copy of a written prospectus meeting the requirements of
Section 10 of the U.S. Securities Act of 1933, as amended, may be obtained
from Lehman Brothers Inc., 745 Seventh Avenue, New York, NY, 10019, USA,
Attn: Fixed Income Syndicate, subject to applicable law.


DEUTSCHE TELEKOM: Sells Entire Stake in Kabel Baden-Wurttemberg
---------------------------------------------------------------
Deutsche Telekom AG has sold its remaining 40% minority stake in the cable
TV business in Baden-Wurttemberg.  Now that the remaining shares held by
Deutsche Telekom in Kabel Baden-Wurttemberg GmbH & Co. KG have been sold,
this company is wholly owned by a consortium consisting of several private
equity companies led by The Blackstone Group, New York.

                     *****

Kabel Deutschland GmbH is Europe's largest cable operator and one of the
largest cable assets in the world with 15.2 million homes passed and 10.2
million subscribers.  The business covers the northern, southern and eastern
regions of Germany, including the major cities of Berlin, Hamburg, Munich,
Bremen, Hannover, Nuremberg, Dresden and Leipzig.


INTERSHOP COMMUNICATIONS: Board Member Werner Fuhrmann Resigns
--------------------------------------------------------------
Intershop Communications AG (Prime Standard: ISH1; Nasdaq: ISHP) announced
that, for personal reasons, Werner Fuhrmann has asked the Supervisory Board
to be immediately released of his duties as a Member of the Management Board
and as President for Europe, Middle East, and Africa.  The company's
Supervisory Board regrets, but accepts Mr. Fuhrmann's decision.

Since joining Intershop in July 2002, Mr. Fuhrmann served as a Member of the
Management Board and President for Middle East, and Africa, in which role he
was responsible for sales in the region of Europe, Middle East, and Africa.
For the time being, Mr. Fuhrmann's position will not be filled.  Intershops
sales management will report directly to Dr. Juergen Schoettler, Chairman of
the Management Board and Chief Executive Officer.
Mr. Fuhrmann will advise Intershop on a number of important projects and
will thus stay in touch with the Company.

About Intershop

Intershop Communications (Nasdaq: ISHP; Prime Standard: ISH1) is the market
leader in Unified Commerce Management, which can create strategic
differentiation for companies by integrating online commerce processes
across the extended enterprise.  Intershop Enfinity, based on the best
practices of Unified Commerce Management, enables companies to manage
multiple business units from a single commerce platform, optimize their
business relationships, improve business efficiencies and cut costs to
increase profit margins.  By streamlining business processes, companies can
achieve a higher return on investment at a lower total cost of ownership,
increasing the lifetime value of customers and partners.  Intershop has more
than 300 enterprise customers worldwide in a broad range of industries,
including multichannel retail and high technology.  Customers including
Hewlett-Packard, Bosch, BMW, TRW, Bertelsmann, Otto and Homebase have
selected Intershop's Enfinity as the cornerstone of their global online
commerce strategies.  More information about Intershop can be found on the
Web at http://www.intershop.com

                     *****

Due to weaker than expected revenue in the first half of 2003 (approximately
EUR12.4 million), lower expectations for the
remainder of the fiscal year 2003, and an available cash balance
of approximately EUR3 million as of June 30, 2003, Intershop is
implementing several significant restructuring.

CONTACT:  INTERSHOP COMMUNICATIONS
          Investor Relations:
          Klaus F. Gruendel
          Phone: +49-3641-50-1307
          Fax: +49-3641-50-1002
          E-mail: k.gruendel@intershop.com
          Home Page: http://www.intershop.de


NETLIFE AG: Boasts of Steady Improvement in Group Performance
-------------------------------------------------------------
For the second quarter of 2003, group performance of Netlife AG, Hamburg
(ISIN DE0006763907), stood at (EUR83,000) on a turnover of EUR2.69 million
(previous year: EUR4.06 million).  The drop in turnover as compared to the
previous year reflects the continued restraint towards IT investment on the
part of the banking sector.  The results show a clear improvement on those
for the same quarter of last year [(EUR0.45 million)].  The deficit for the
first half-year [(EUR0.58 million)] has been practically halved in
comparison to the previous year [previous year:(EUR0.94 million)].  EBIT for
the quarter under review stood at (EUR37,000) compared with (EUR0.49
million) in last year's second quarter.

Above all, cost reduction measures implemented in Q1 have contributed to the
positive development of results, whereby operating expenditure has been
reduced by approximately 40% against the period for the previous year.
Turnover and results are running in line with planning.  Consequently, the
company is confident of achieving positive results in the second half-year.

The Management Board

CONTACT:  NETLIFE AG
          Investor Relations
          Carmen Bakovic
          Phone: +49 40 28415 500,
          Email: ir@netlife.de
          Home Page: http://www.netlife.de


THYSSENKRUPP AG: Restructuring to Cost 30,000 Jobs in 33 Units
--------------------------------------------------------------
German technology group, ThyssenKrupp AG, is reportedly planning to sell 33
of its businesses, which employ a total of round 30,000 staff.  AFX News
cited company sources saying ThyssenKrupp intends to sell the businesses as
part of a divestment program announced in May, which could generate a total
sales volume of EUR7 billion.

In May, Moody's Investors Service placed the rating of Thyssenkupp on review
for possible downgrade on concerns that continued market weakness in Germany
and in the automotive and steel sectors could slow down an improvement in
operating cash flow generation and debt protection measures.

ThyssenKrupp AG is a diversified industrial conglomerate headquartered in
Dusseldorf, Germany.  It is active in carbon and stainless steel, automotive
parts and capital goods as well as materials management and services with
annual sales of approximately EUR36.7 billion in financial year 2001/02.

CONTACT:  THYSSENKRUPP AG
          Dr. Jurgen Claassen
          Corporate Communications and Central Bureau
          Phone: +49 211 824-36002
          Fax: +49 211 824-36005
          E-mail: presse@tk.thyssenkrupp.com
          Home Page: http://www.thyssenkrupp.com


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H U N G A R Y
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KERESKEDELMI ES HITELBANK: Fitch Changes Outlook to Negative
------------------------------------------------------------
Fitch Ratings, the international rating agency, has changed the Outlook on
the Long-term 'A-' ratings of two Hungarian banks, Kereskedelmi es Hitelbank
and Central European International Bank, to Negative from Stable.

The rating action follows the change in Outlook on Fitch's sovereign rating
to Negative from Stable on Tuesday and does not reflect analysis of the
banks' own intrinsic strength.  In Hungary the only banks assigned Long-term
ratings by Fitch are Kereskedelmi es Hitelbank and Central European
International.  These ratings are based on support available from the banks'
parents in case of need and are capped at the level of the sovereign foreign
currency rating.  The banks' Short-term and Support ratings have been
affirmed at 'F2' and '3', respectively.

Central European International's Individual 'D' rating was placed on Rating
Watch Negative last week pending the outcome of an investigation into
fraudulent activities at its affiliate, Central European International
Equities.

Central European International is 59.09%-held by the Belgian bancassurance
group, KBC (rated 'AA-' (AA minus)), and 40.23%-held by the Dutch bank ABN
AMRO (rated 'AA-' (AA minus)).  Its Long-term and Short-term ratings are
based on the extremely high probability that support would be provided by
KBC and/or ABN AMRO should this be required.  Kereskedelmi es Hitelbank is
the second largest bank in Hungary, with c. 15% share of the sector's
assets.  Its track record, in terms of capitalization, revenue generation,
asset quality and cost efficiency had been poor but has been improving,
particularly since the entrance of KBC as majority shareholder.  The bank's
competitive position has also improved from the merger with ABN AMRO Magyar
Bank in 2001.

Central European International is not affected by events at Kereskedelmi es
Hitelbank, and its Individual rating has been affirmed at 'C'.  Central
European International's Long-term and Short-term ratings are based on the
extremely high probability that support would be provided by its owner, the
largest Italian banking group, Banca Intesa (rated 'A+').  Central European
International is Hungary's fourth largest bank.  Originally a consortium
bank, its traditional strength lies in corporate lending, where it has a
c.12% market share.  More recently, it has diversified into the retail
sector, where it has achieved a market share of c.2%, which it plans to
increase substantially over the medium-term.  Central European
International's adequate performance may be challenged by competitive
pressure on margin, but its strong risk management systems should stand it
in good stead.


KERESKEDELMI ES HITELBANK: Deals Involving Public Funds Probed
--------------------------------------------------------------
The State Audit Office will conduct an extraordinary investigation at the
State Motorway Management Company in relation to the use of state funds in
transactions carried out through Kereskedelmi es Hitelbank Equities.

The State Audit Office will delve into issues other than that already under
examination by the police or the national security service, according to
Intefax-Europe.  ASZ director Arpad Kovacs expects the investigation will be
completed by October.

Kereskedelmi es Hitelbank Equities, which contacted clients to reconcile
records, said in a statement the State Motorway Management Company never
incurred any losses in its dealing with the group.  The two started their
business link when the bank won a public tender for the company's business
in 1996.

Hungarian bank Kereskedelmi es Hitelbank is also currently the subject of
investigation for engaging in fraudulent activities involving as much as
EUR76 million in investments.  Chief Executive Tibor Rejto, which admitted
the fraud before resigning, said the bank's brokers indeed knowingly
promised high returns on as much as EUR76 million in investments from high
net-worth and institutional investors.  The government's National Highway
Authority is one of the bank's big clients.


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I R E L A N D
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VOLEX EUROPE: To Close Factory, Axe Jobs in Castlebar Plant
-----------------------------------------------------------
Telecom equipment firm Volex Europe will close factory in Castlebar, Co Mayo
and dismiss 170 workers.  The company will only retain its European
headquarters in Castlebar, where 70 people are employed.

Steve Cowman, managing director of Volex Europe blamed the continued slump
in the worldwide telecommunications industry for the decision, according to
Business Plus Online.  Commenting on the job losses, he said the company's
troubles were not a secret to its employees.

Tanaiste Mary Harney, meanwhile, said: "This is traumatic news for the
workforce and for their families."   According to her, Volex was considered
an important employer in Castlebar for the past 16 years and as such "...
the loss [of these] jobs will be keenly felt by the whole community."


WATERFORD CRYSTAL: Plans to Trim Down Workforce Further
-------------------------------------------------------
Waterford Crystal will put the fate of up to 200 workers in doubt under its
rationalization plan, Business Plus Online said.
The company is already warning union leaders of its plan to make 100
redundancies, and to further lay off 100 people under contract on top of the
94 job-cuts it made in April.  Last month the company suspended production
at plants in Waterford and Dungarvan for a week, retaining only 100
employees.  The move was aimed at restoring balance between supply and
demand.

Waterford also plans to freeze salaries under its EUR18 million cost-cutting
package, the report said.  Accordingly, it is no longer able to pay the
increases provided for in the national agreement, Sustaining Progress.

In March, Waterford Wedgwood blamed the war in Iraq, which affected luxury
goods market particularly in the U.S. where the Waterford brand is strong,
as the reason for its difficulties.


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


FIAT SPA: Adjusts Exercise Price of Ordinary Share Warrants
-----------------------------------------------------------
Notice is hereby given that, pursuant to the Regulation of Fiat Ordinary
Share Warrants 2007, the exercise price shall be adjusted as a result of the
detachment of the option right connected with the capital increase currently
under way.

More specifically, the exercise price of EUR30 will be reduced by an amount
equal to the difference between the arithmetical average of the last five
official prices "cum right" and the arithmetical average of the first five
official prices "ex right" of Fiat Ordinary Shares rounded down to the next
lowest thousandth of a euro.  Adjusted in this way, the exercise price will
be equal to EUR29.448.

                     *****

Under its relaunch plan to rescue Fiat Auto, Fiat aims to break even on an
operating profit level in FY04 and return to profitability and positive cash
flow generation in FY05.  It is currently launching an equity increase,
which is expected to result in a cash inflow of EUR1.8 billion by end of
July 2003.


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


ASML HOLDING: Reports EUR64 Million Net Loss for Second Quarter
---------------------------------------------------------------
ASML Holding N.V. announced its second quarter 2003 results recently.  These
are the highlights:

(a) Sales of 41 lithography systems -- 28 new and 13 refurbished
    systems -- valued at EUR329 million, up from Q1 03 sales of
    33 lithography systems, including 6 refurbished systems,
    valued at EUR318 million;

(b) Net loss of EUR64 million or EUR0.13 per ordinary share,
    compared with a Q1 03 net loss of EUR82 million or EUR0.17
    per ordinary share;

    Net loss of EUR45 million or EUR0.09 per ordinary share for
    Q2 03, excludes restructuring charges net of tax of EUR19
    million or EUR0.04 per ordinary share;

(c) Average selling price of new machines was EUR8.3 million,
    down 10% from a Q1 03 average selling price of EUR9.2
    million due to a Q2 03 product mix that included more 200 mm
    systems in comparison with Q1 03;

(d) Gross margin increased to 22% in Q2 03 from 17% in Q1 03 due
    to a product mix that included sales of more 200 mm systems.
    Excluding restructuring charges, the gross margin was 23% in
    Q2 03.  The company expects gross margin to continue to
    increase through reduced cost of goods and enhanced
    operational efficiencies;

(e) Order backlog of 62 lithography systems with a value of
    EUR678 million as of June 30, 2003, compared with a backlog
    of 87 lithography systems with a value of EUR889 million as
    of March 31, 2003.  Over 90% of the backlog is scheduled for
    delivery in 2003;

(f) Net cash from operating and investing activities of EUR213
    million, up from EUR40 million in Q1 03.

Restructuring and Reduction in Work Force

"In 2003, there is a consensus that the global semiconductor industry
appears to have reached the bottom of its cycle.  However, the timing of the
upturn remains uncertain.  Although there are signs of semiconductor unit
sales growth, many chipmakers who have continued to increase their
productivity are still utilizing fabrication capacity at rates below levels
needed to justify large capital investments," said Doug Dunn, president and
CEO, ASML.

"Since the last peak in 2000, semiconductor capital equipment investments
have declined by more than 50%.  Worldwide demand for lithography systems
has reduced year on year for the past two years," Mr. Dunn continued. "We're
facing cautious semiconductor investment sentiment, competitive pressure and
a smaller market for lithography products.  Our goal - to be profitable on
unit shipments -- reflects this new market reality.  We will continue to
structure our size and adjust our cost base to achieve this goal."

In this respect, ASML plans to further reduce costs company-wide while
lowering the break-even point and increasing flexibility.

In addition to its previously announced work force goal of employing 5,200
people in continuing operations by July 2003, the company intends to further
reduce approximately 550 positions worldwide.  This approximate 11%
reduction includes around 400 positions in Europe.  ASML's current work
force target is approximately 4,650 positions in continuing operations.
ASML will commence notifying employees and interacting with works councils
and labor unions as required and in accordance with local labor laws and
practices.

Financial Position

Lithography operations provided EUR213 million in cash from operating and
investing activities while Track and Thermal activity provided EUR2 million
in Q2 03.  This compares with Q2 02 totals of EUR71 million in cash used by
Lithography operations and EUR50 million used by Track and Thermal activity.
In May 2003, the company issued a EUR380 million of 5.5% convertible notes,
due 2010, convertible into an aggregate of 26.6 million ordinary shares of
ASML stock at a price of EUR14.30 per share.  This offering generated net
proceeds of EUR371 million in cash.  ASML ended the quarter with a cash
balance of EUR1.25 billion.

"We will use our current cash balance to finance the future needs of the
company, which may include the buyback of our convertible notes due in
November 2004," said Peter Wennink, executive vice president and chief
financial officer, ASML.  This may include the repurchase of these notes in
open market transaction or in privately negotiated transactions, from time
to time and as market and business conditions warrant.

ASML continued to implement measures to improve its working capital
management by improving on the collection of accounts receivable, reducing
inventory and managing accounts payable.

Lithography - Continuing Operations

Total net sales from continuing operations in lithography in Q2 03 were
EUR329 million as compared with total net sales of EUR 609 million for Q2
02.  This reflects a net decrease of EUR280 million or 46%, due to both a
lower number of shipments and a 4% decrease in average selling price for new
systems in Q2 03.  The average selling price of a new system decreased to
EUR8.3 million in Q2 03 from EUR8.6 million in Q2 02 due to a product mix
that included more 200 mm systems and increased price pressure.

ASML's gross margin was 22% in Q2 03, compared with 35% in Q2 02.  Excluding
restructuring charges of EUR3 million, the gross margin was 23% in Q2 03.
The decrease can be attributed to under-utilization of manufacturing
capacity and facilities and competitive price pressure.

Selling, general and administrative expenses have decreased to EUR55 million
in Q2 03, compared with EUR72 million in Q2 02.  This 23% decrease
represents the effects of previous and continuing cost cutting measures.

Lithography - Continuing Operations generated a net loss of EUR54 million in
Q2 03.  Excluding restructuring charges of approximately EUR14 million net
of tax, the net loss amounts to EUR40 million compared with a Q2 02 net
income of EUR40 million.

ASML continues to refrain from issuing guidance or forecasts due to
uncertain market conditions.

Track and Thermal - Discontinued Operations

ASML is in negotiations with a potential buyer of its Thermal operations.
Based on current estimates, the company recorded a non-cash charge for the
impairment of the Thermal assets of approximately EUR6 million net of tax.

Conference Call

A conference call hosted by CEO Doug Dunn and CFO Peter Wennink to discuss
the Q2 03 results of ASML will commence will be Web cast on
http://www.asml.com. Additionally, the call will be available for replay
until July 23, 2003 by dialing +1 303 590 3060, with a pass code of
21006746#.


KONINKLIJKE AHOLD: Close to Selling Santa Isabel Stores in Chile
----------------------------------------------------------------
Troubled Dutch retailer Royal Ahold N.V. will sell its Chilean supermarket
operation Santa Isabel SA to closely held Chilean peer Cencosud SA once the
path is cleared of hurdles.

Dow Jones Newswires, citing Cencosud and Chilean Securities Regulator SVS,
said legal issues delaying completion of the deal between Cencosud and Royal
Ahold are now nearing resolution.  This means the troubled retailer is close
to taking the first step in its retreat from Latin America.

Back in February, Ahold and Cencosud announced they were close to a US$150
million deal for Santa Isabel's Chilean stores.  The deal was delayed after
the Dutch company revealed accounting irregularities of some US$500 million
at its U.S. Foodservice unit.  Cencosud subsequently tied the deal to an
SVS-approved Santa Isabel earnings statement for 2002, which wasn't ready
until June 30.  It also sought to avoid a drawn-out bid to outstanding
shareholders holding a fraction of Santa Isabel's shares, 99.62% of which
were in Ahold's hands since taking them on from Argentine unit Disco late
last year.

Delisting procedures are presently ongoing to clear that obstacle.  A
Cencosud source told Dow Jones: "We've started the de-listing procedure in
the U.S. and once that's also completed in Chile, the conditions to finalize
the operation will be ready."

SVS spokeswoman Amelia Miranda further noted that the SVS would allow Santa
Isabel to de-list within two weeks, if not earlier, once it's certain Santa
Isabel has fewer than 500 shareholders.

Santa Isabel's 77 stores, which hold a 9.5% market share, could make
Cencosud the second-biggest player in the domestic market behind D&S, which
holds 30%.  Buyers are still sought for Ahold's Santa Isabel stores in
Paraguay and Peru, as well as for larger units in other countries of the
region, including Argentine Disco.


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


BANK MILLENNIUM: Discloses Resolutions Approved at AGM
------------------------------------------------------
The Management Board of Bank Millennium SA hereby informs that on July 16,
2003 on the General Shareholders' Meeting of Bank Millennium SA these
shareholders held at least 5% of votes in the total number of votes:

Shareholder                       Number of votes

Banco Comercial Portugues SA     424 624 072
EUREKO B.V.                      169 921 267

Simultaneously the Bank informs that the Extraordinary Shareholders' Meeting
of Bank Millennium SA passed these resolutions:

RESOLUTION

Adopted by the Extraordinary Meeting of Shareholders of Bank Millennium S.A.
dated July 16, 2003 in the matter of determination of the number of the
Supervisory Board members.

Pursuant to art. 385 (S) 1 of the Code of Commercial Companies the
Extraordinary Meeting of Shareholders decides:

(a) To determine the number of the Bank's Supervisory Board
    members from 9 to 10 persons,

(b) The resolution comes into force on the day of its adoption.

With reference to these decisions, the Extraordinary Meeting of Shareholders
elected and appointed Mr. Francisco de Lacerda to the Supervisory Board of
the Bank.

Mr. Francisco de Lacerda is 42.  He graduated from the Management Faculty of
Universidade Catolica Portuguesa in Lisbon, where from 1984 until 1985 he
was also Assistant Professor.  Between 1982 and 1984 he was a credit analyst
with LOCAPOR (leasing) and from 1984 to 1986 he was Advisor to the General
Manager of UNICRE (credit card issuer and acquirer).  From 1985 to 1987 he
was first Manager and then Co-Head of Corporate Finance and Capital Markets
at the CISF (investment bank).  Between 1987 and 1990 he was Head of
Corporate Finance and Capital Markets at Hispano Americano Sociedade de
Investimentos SA Between 1990 and 2000 he was Director of UIF SGPS.  Since
1991 he was Managing Director of Banco Mello Investimentos SA, becoming its
CEO in 1993-1995, and CEO of Banco Mello SA from 1995 to 2000 (from 1997
also Vice Chairman).  He was also Director of Companhia de Seguros Imperio
and Chairman or Director of several Banks and Financial Companies
subsidiaries of Banco Mello, in Portugal and abroad.

Since 2000 he has been Member of the Board of Directors of Banco Comercial
Portugues SA Since May 7, 2001 to April 31st, 2003 Mr. de Lacerda has been
1st Vice Chairman of Management Board of Bank Millennium SA and Vice
Chairman of the Supervisory Board of Millennium Dom Maklerski SA, Forin Sp.
z o.o. and Bel Leasing Sp. z o.o.  Since April 2003 he is a Member of the
Management Board of NovaBank SA, Greece and Vice-President of the Management
Board of BankEuropa Bankasi, A,S., Turquey.  He is also a Member of the
Boards of Directors of Servibanca - Empresa de Prestacao de Servicos, A.C.E.
and Fundacao Banco Comercial Portugues.

Mr. Francisco de Lacerda has not been entered in the Register of Insolvent
Debtors kept pursuant to the National Court Registry Act.  None of his
current duties are competitive to the activities of Bank Millennium SA.

                     *****

Bank Millennium, formerly BIG Bank Gdanski, completed a restructuring
program, which includes job cuts, improvements in risk management
procedures, capital injection, and new product launches.  However, Fitch
says, "overall profitability at Bank Millennium remains fragile, distorted
in 2001 and 2002 by large one-off items."


KOMPANIA WEGLOWA: Losses Now Amount PLN575 Million
--------------------------------------------------
Kompania Weglowa incurred greater-than-expected losses of PLN575 million at
the end of May, according to Warsaw Business Journal.  The negative result
is due to decreasing demand for coal, falling prices, and delay of the
decision on mine liquidation, the report said.

The nation's largest coal producer reported a net loss of PLN389.7 million
in the first four months of 2003 and a PLN201.9 million loss on sales.
Kompania Weglowa stands to receive a capital increase of PLN400 million from
the Polish government, but the transaction is tied to the agreement that it
liquidates some of its 24 mines.

"[W]ith fewer mines, financial backing could go a lot further," said Deputy
Finance Minister Andrzej Szarawarski.  The cash injection could come by the
end of July if the company concedes, he said.

Kompania Weglowa President Maksymilian Klank declined to disclose any
details of its plan, according to the report.


LOT AIRLINES: Reduces Commission Paid to IATA Agents
----------------------------------------------------
Troubled Polish national carrier LOT Airlines is likely to face a difficult
few months with its hasty reduction of the commission paid to International
Air Transport Association, according to Warsaw Business Journal.  The fee
was immediately trimmed down from 7% to 5% starting July 1.

LOT will implement new commissions in April, not in July as is now the case,
with a 5% reduction instead of the 4% it proposed to the International Air
Transport Association.  The move contrasts the strategy adopted by rivals,
Lufthansa and British Airways, which are currently remunerating the agents
as they have previously done, and will lower the commissions later --
Lufthansa in August and British Airways sometime later.

The period during which LOT pays Air Transport Association agents, who sell
85% of their tickets in Poland, may turn out to be extremely unfavorable for
the troubled domestic carrier, the report said.  One does not have to be an
economist to realize whose tickets the agents are likely to sell, Warsaw
Business Journal further commented.

LOT is a member of the bankrupt SAirgroup and it has not seen any profit on
its operations since 1997.  It got into a heated debate with International
Air Transport Association agents for half a year before both sides came to
an understanding regarding remuneration.  Under the agreement, new
commissions were to be implemented in April, not in July as is now the case,
and were to be lowered, not by 4% as was the original intention, but by 5%.

The airline posted a net profit for the airlines in 2002, but this is
because some of its aircraft were resold to their leasing companies.  The
carrier still needs to undergo deep restructuring, TCR-Europe said.

CONTACT:  LOT POLISH AIRLINES
          Al. Jerozolimskie 65/79, 00-697 Warszawa
          ul. Krolewska 11 Hotel Victoria,
          00-065 Warszawa
          Phone: (22) 827 52 86


UPC POLSKA: Files Prepackaged Plan in Delaware Bankruptcy Court
---------------------------------------------------------------
UPC Polska, Inc., formerly known as @Entertainment, Inc., a
Delaware corporation together with UPC Polska Finance, Inc., a
newly formed company incorporated under the laws of the State of
Delaware that will become a wholly owned subsidiary of UPC Telecom B.V. upon
consummation of the Restructuring, jointly submit Chapter 11 Plan of
Reorganization with the U.S. Bankruptcy Court for the Southern District of
New York.  The Debtor's Plan is available for a fee at:

http://www.researcharchives.com/bin/download?id=030709224855

The Plan designates 6 classes of claims and 1 class of interests
classifying all Claims against and Interests in the Debtor:

Class     Description                 Impaired/   Voting Status
                                     Unimpaired
-----     -----------                -----------  -------------
None     Administrative Claims          N/A            N/A
         and Priority Tax Claims

1        Priority Claims             Unimpaired   Not entitled
                                                  to vote

2        Critical Creditor Claims    Unimpaired   Not entitled
                                                  to vote

3        UPC Polska Note Claims      Impaired     Entitled to
         (excluding Telecom Owned                 vote
         UPC Polska Note Claims)

4        Telecom Owned UPC Polska    Impaired     Entitled to
         Note Claims, Belmarken Note              vote
         Claims, Telecom Pari Passu
         Note Claims and Affiliate
         Indebtedness Claims

5        General Unsecured Claims    Impaired     Entitled to
                                                  vote

6        Telecom Junior Note Claims  Impaired     Not entitled
                                                  to vote

7        UPC Polska Equity           Impaired     Not entitled
                                                  to Vote
         Interests

The Debtor anticipates that the Company may convert into a limited liability
company after the restructuring.

UPC Polska, Inc., who holds headquarters in Denver, Colorado, is
an affiliate of United Pan-Europe Communications N.V.  The Debtors is a
holding company, which owns various direct and indirect subsidiaries
operating the largest cable television systems in Poland.  The Company filed
for chapter 11 protection in July 7, 2003 (Bankr. S.D.N.Y. Case No.
03-14358).  Ali M.M. Mojdehi, Esq., and Ira A. Reid, Esq., at Baker &
McKenzie represent the Debtor in its restructuring efforts.  As of March 31,
2003, the Debtor listed $704,000,000 in total assets and $940,000,000 in
total debts.


UPC POLSKA: Signs Up BSI as Court Claims and Noticing Agent
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York gave its
stamp of approval to UPC Polska, Inc.'s application to employ Bankruptcy
Services LLC as claims and solicitation agent.

The Debtor tells the Court that it conducts business with many creditors and
other parties in interest.  These parties in interest may file proofs of
claim in this case.  The Debtor foresees that such noticing, receiving and
docketing of proofs of claim could be time consuming and burdensome upon the
Clerk's Office. Similarly, the process of transmitting the Plan, disclosure
statement, ballots, related notices and other solicitation materials is a
time-consuming, specialized, administrative task that is most efficiently
outsourced by the Debtor.

The Debtor believes that the retention of BSI as the Court's outside agent
is in the best interests of its estate and parties in interest, as well as
helping the Clerk's Office a load off its shoulders.

In this retention, BSI will:

    (a) Notify all potential creditors of the filing of the
        bankruptcy petition as well as the setting of the first
        meeting of creditors pursuant to Section 341 of the
        Bankruptcy Code;

    (b) Maintain an official copy of the Debtor's schedules of
        assets and liabilities and statement of financial
        affairs, and listing all known creditors and the amounts
        owed;

    (c) Notify creditors of the bar date to be established in
        this Chapter 11 Case pursuant to Bankruptcy Rule
        3003(c)(3), mailing a proof of claim form to all
        potential claimants and providing a certificate of
        mailing;

    (d) Coordinate receipt of filed claims with the Court and
        providing secure storage for all original proofs of
        claim;

    (e) Enter filed claims into BSI's database;

    (f) Work directly with the Debtor to facilitate the claims
        reconciliation process, including:

          (i) Matching scheduled liabilities to filed claims,

         (ii) Identifying duplicate and amended claims,

        (iii) Categorizing claims within "plan classes" and

         (iv) Coding claims and preparing exhibits for omnibus
              claims motions;

    (g) Maintain the official claims register and providing the
        Clerk with copies thereof as well as making changes, as
        required by the Court;

    (h) Maintain the official mailing list of all entities that
        have filed a proof of claim, which list shall be made
        available upon request by a party in interest or the
        Clerk;

    (i) Print and coordinate the mailing of ballots, disclosure
        statement and plan to all voting and non-voting parties;
        and

    (j) Assist with, among other things, the soliciting of votes
        on the plan and the tabulation and certification of
        results.

Kathy Gerber, a Senior Vice President of BSI, discloses that the firm will
charge the Debtors in exchange for its services, with its current
professional hourly fees:

          Kathy Gerber                 $210 per hour
          Senior Consultant            $185 per hour
          Programmer                   $130 - $160 per hour
          Associate                    $135 per hour
          Data Entry/Clerical          $40 - $60 per hour
          Schedules Preparation        $225 per hour

UPC Polska, Inc., headquartered in Denver, Colorado, is an affiliate of
United Pan-Europe Communications N.V.  The Debtors is a holding company,
which owns various direct and indirect subsidiaries operating the largest
cable television systems in Poland. The Company filed for chapter 11
protection in July 7, 2003 (Bankr. S.D.N.Y. Case No. 03-14358).  Ali M.M.
Mojdehi, Esq., and Ira A. Reid, Esq., at Baker & McKenzie represent the
Debtor in its restructuring efforts.  As of March 31, 2003, the Debtor
listed $704,000,000 in total assets and $940,000,000 in total debts.


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


OM AB: Announces Interim Report for January to June 2003
--------------------------------------------------------Highlights of OM
Interim Report -- January to June 2003:

(a) Revenue totaled SEK1,207 million (1,416)

(b) Loss after financial items amounted to SEK521 million (+58)

(c) Operating loss amounted to SEK513 million (+65)

(d) Loss after tax was SEK457 million (+45)

(e) Earnings per share at (SEK5.44) (+ 0.54)

(f) Merger with HEX; completion expected in early September

(g) Focus and streamlining program; restructuring costs of
    SEK624 million

(h) EDX London starts trading; SEK100 million in capital gains

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

CONTACT:  Magnus Bocker, acting CEO
          Phone: +46 8 405 66 44
          Per Nordberg, CFO
          Phone: +46 8 405 77 22
          Jakob Hakanson, VP Investor Relations
          Phone: +46 8 405 60 42
          Anna Eriksson, VP Marketing & Communications
          Phone: +46 8 405 66 12


SONY ERICSSON: Reports Improvement in Two Core Business Areas
-------------------------------------------------------------
Sony and Ericsson announced the financial summary for the second quarter,
ended June 30, 2003, of Sony Ericsson Mobile Communications AB, the 50:50
joint venture of Sony and Ericsson.

The company reported improved operating results and a strong increase in
sales and shipments for its two core business areas; GSM and Japanese
standards.

Units shipped in the quarter reached 6.7 million, which is 34% higher
year-on-year and 23% higher compared to the first quarter 2003.  Net sales
for the quarter were EUR1.125 million, representing year-on-year and
sequential increases of 18% and 40%, respectively.

In the areas of strategic focus and in the wake of successful product
launches, the GSM business posted 84% year-on-year growth in shipments and
Japanese standards shipments increased 45% year-on-year.  This business
growth is attributable to a strengthened product offering coupled with
strongly improved supply and logistics performance.

Income before taxes excluding restructuring charges was (EUR45 million) and
Net Income (excluding restructuring charges) was (EUR33 million), which
represents year-on-year improvements of EUR53 million and EUR50 million,
respectively.  Income before taxes including restructuring was (EUR102)
million and net income was (EUR88) million.


                                                  Q2    Q1   Q2
                                                2002  2003 2003
---------------------------------------------------------------
Numbers of units shipped (million)              5.0  5.4   6.7
---------------------------------------------------------------
Sales (EURO m.)                                 950  806 1.125
---------------------------------------------------------------
Income before taxes excl. restructuring costs (EURO m.)
                                                -98 -113   -45
---------------------------------------------------------------
Income before taxes incl. restructuring costs (EURO m.)
                                                -98 -113  -102
----------------------------------------------------------------
Net income incl restructuring costs (EURO m.)     -83 -104   -88
----------------------------------------------------------------

Sony Ericsson has earlier announced (June 24, 2003) the decision to increase
its focus on GSM/EDGE/UMTS and Japanese standards.  Further to the phase-out
of Sony Ericsson's American CDMA business and GSM R&D activities in Munich,
total restructuring costs are estimated to approximately EUR70 million of
which EUR 58 million has been recognized in the second quarter.  The
restructuring activities are well underway and are projected to generate
yearly run-rate savings of approximately EUR 120 million when completed,
with some benefit in the second half of 2003.

Sony Ericsson is expected to be profitable in the second half of 2003 as a
result of the increasing momentum in the company's new GSM and Japanese
product portfolio.  However, Sony Ericsson will not be profitable for the
full year 2003 due to restructuring costs and losses incurred in the first
half of the year.

CONTACT:  ERICSSON
          Investor Relations
          Gary Pinkham
          Phone: +46 8 719 0000
          Glenn Sapadin
          Phone: +1 212 685 4030
          E-mail: investor.relations@ericsson.com
          External Relations
          Pia Gideon
          Phone: +46 8 719 2864


          SONY
          Investor Relations
          Yukio Ozawa, (Tokyo)
          Phone: +81 3 5448 2180
          Chris Hohman,(London)
          Phone: +44 20 7444 9711
          Corporate Communications
          Kei Sakaguchi, (Tokyo)
          Phone: +81 3 5448 2200
          Gerald Cavanagh, (Tokyo)
          Phone: +81 3 5448 2200
          Georges Gerard, (London)
          Phone: +44 207 444 9722
          or

          SONY ERICSSON
          Corporate Communications
          Nina Eldh
          Phone: +44 (0) 7774 125 638
          Corporate Communications Dept.,
          Phone: +44 208 762 5858
          E-mail: info@SonyEricsson.com


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


SWISS INTERNATIONAL: Reaches Crucial Deal with Pilots
-----------------------------------------------------
SWISS and the SWISS Pilots union have set aside their differences.  In an
agreement signed by both sides, the SWISS Pilots union waives rights to the
implementation of the Arbitration Court ruling and withdraws from all
outstanding legal proceedings.  In addition, the SWISS Pilots union accepts
the dismissal of 559 of its pilots.  In return, SWISS agrees to make a
one-time payment to all pilots declared redundant. The three-charter
aircraft will in future, be operated by the former Crossair pilots (OC 1).
SWISS also withdraws its plans for the legal establishment of its subsidiary
SWISS Express.

In a constructive atmosphere, Aeropers and SWISS agreed on the measures and
the implementation of the restructuring program.  The union, which was not
involved in the Arbitration Court proceedings, was able to reconcile itself
with the effects of the SWISS Pilots union agreement.

Agreement with the two pilots' unions is an exceptionally important
prerequisite if the previously announced SWISS restructuring program is to
be achieved.

After long and intensive negotiations, Swiss and the SWISS Pilots union
agreed on an amiable out of Court settlement.

The agreement is an essential condition that will enable the company to
successfully carry out the restructuring.  It brings advantages both for the
departing SPA pilots and those who will remain.

The compensation for the 559 pilots in the regional fleet who will be
obliged to leave will amount to CHF85,000 for a co-pilot and CHF140,000 for
a Captain.

The charter flights were originally operated by the former Crossair pilots
(OC 1).  Following the changeover from Boeing MD-83s to Airbus A320s, these
flights were integrated into the Airbus Operation (OC 2).  The charter
operation, with its three SWISS SUN A320s, now return to the OC 1 pilots
corps.

SWISS is withdrawing its plans for the legal establishment of a subsidiary
SWISS Express.  The commercial objectives of the regional fleet, higher
productivity and the cost structure will, however, be rigidly adhered to.
They form an important component of the regional section of the Business
Plan.

Agreement was reached with Aeropers, the former Swissair pilots' union, on
the implementation of the measures contained in of the Business Plan.  These
include, amongst others, an innovative part-time model as well as a
contribution to the Turnaround from the planned fleet reduction.  With
Aeropers, the union that was not involved in the Arbitration Court
proceedings, it was possible to reconcile the effects of the SWISS Pilots
union agreement on the medium- and long-haul pilots.

SWISS is convinced that agreement after this lengthy industrial dispute will
have an significant effect on other partners.  The negotiations with Kapers,
the cabin personnel union, are close to being finalized.  The discussions
with the ground staff (Gata, KV, VPOD, Push) on the contribution of the
personnel to the new Business Plan are being intensively pursued.  SWISS is
optimistic that agreement can be reached with all social partners in the
very near future.

Restructuring

The cornerstones of the new Business Plan and details of the planned
restructuring were presented on June 24.  The "Foundation for Winning"
Project Group is working flat out on the implementation.  The new route
network was announced on Friday, July 11.  Information was also given on the
elaboration of the new European Business Concept.  What SWISS will in future
be offering on board its European flights is currently being worked on.

The sweeping reduction in costs, which is linked with the suppression of
about 3,000 jobs, is currently being discussed with the unions.  Discussions
have taken place with the five largest suppliers on questions of volume and
cost reductions and are continuing in a promising manner.  In the workshops
the new contractual conditions are being negotiated.

SWISS support package for redundant employees

SWISS is facing decisive measures.  3,000 jobs must be suppressed in order
to ensure survival of the necessary Turnaround.  This is necessary to ensure
the remaining 6,300 work places.  In order to alleviate the effects of the
dismissals and, in order to support the employees in this difficult
situation, SWISS has prepared a package of measures, designed to meet the
needs of the personnel categories concerned.

All employees are being offered a social plan that provides substantial
support.  To ensure work places, the possibility of setting up part-time
posts is being examined.  Special training is being offered to section
leaders to enable them to conduct dismissal discussions and to provide
after-support in a professional manner.  For those dismissed, an internal
"Career Guidance", definition of position and support for new career paths
is being offered.  In addition, a Hotline has been set up which those
dismissed may use as required, whilst the employee care activities (HR
Employee Counselling) has been strengthened. In Basel and Zurich Helpdesks
has been set up, in collaboration with the regional employment exchanges.
On the internal Intranet system SWISS employees can consult the job market
offers.

MBA courses for pilots, organized in conjunction with the European
Aeronautical Institute, provide new career opportunities and permit the
attainment of academic qualifications.  In a similar manner, a continuation
training course in marketing, finance and management has been prepared for
cabin personnel and ground staff.  This will be offered out in collaboration
with the regional employment exchanges and will be granted official
recognition on completion of the course.

CONTACT:  SWISS
          Corporate Communications
          P.O. Box. CH-4002 Basel
          Phone: +41 (0) 848 773 773
          Fax: +41 612 582 35 54
          E-mail: Communications@swiss.com
          Homepage: http://www.swiss.com


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


ABERDEEN ASSET: Misses Target to Divest Property Business
---------------------------------------------------------
Aberdeen Asset Management said the sale of its property business, Aberdeen
Property Investors, to British Land could come within "a few weeks yet,"
according to The Scotsman.

The report quoted a spokesman for Aberdeen saying: "It will be a few weeks
yet before a deal is concluded, but exclusive negotiations continue and
there's no reason to think that this will come off the rails."

The fund manager, which is selling the asset to trim down debts, was
previously expecting to complete the sale by the end of June.  It was hoping
to raise between GBP70 million to GBP90 million from the spin-off.  The
division had a projected value of GBP130 million towards the end of last
year.

The spokesman also said: "There's a lot of parties involved - Aberdeen,
British Land, the management team themselves - and it's quite a complex
transaction.  It's as straightforward as that."

The report quoted one analyst saying: "The due diligence process on a
property business can prove quite complex. If you've got a share portfolio,
you can see what that's worth almost overnight. With illiquid assets its
much more difficult."

Aberdeen, which is at the center the split-capital investment trust debacle,
reported that its first-half profits went down 75% to GBP5.6 million two and
a half months ago.  It plans to return to its original head office in
Aberdeen's Queen's Terrace in an effort to cut costs.  It was not specified,
however, how much would the company saved by the move.


ACCIDENT GROUP: Insurers Mull Legal Action Versus Directors
-----------------------------------------------------------
Directors of the Accident Group could face legal action from a consortium of
five insurance companies for failing to prevent the company's near collapse
in May, according to The Times.

The consortium, which includes Allianz Cornhill, NIG and Goshawk, alleges
that the firm took on cases that were not likely to succeed, and is seeking
to recover millions of pounds in losses.

The group's plan to launch a legal case comes as the Peter Kilfoyle, former
Labor minister, raises "huge questions" on the company's activities in the
House of Commons.  It was found out that the firm's management has been
living luxuriously on the way to the company's near collapse in May --
flying off to Barcelona to see Manchester United play in March, and spending
GBP70,000 on new PA system to pipe soft music around the buildings in April.

The company's founder, Mark Langford, is reported to have built up a GBP40
million fortune through the group, including a GBP3 million Spanish home.
For the 2002 financial year, the directors received GBP2.8 million.


CORDIANT COMMUNICATIONS: Board Nominees Reject Offer
----------------------------------------------------
On July 16, Messrs Wheatly and Davidson notified Cordiant that they do not
intend to stand for election as Cordiant Directors at the Extraordinary
General Meeting requisitioned by a nominee for funds advised by Active
Value.

The resolutions proposed by Active Value for consideration at the
Requisitioned Meeting to be held on July 23, included Resolutions Nos. 4 and
5 to elect Richard Wheatly and Stephen Davidson, respectively, to the
Cordiant Board, as Chairman and Finance Director and Resolution No. 6, to
establish a committee of the Board comprising Messrs Wheatly and Davidson
and authorize them to appoint a new Chief Executive.

As a result of the withdrawal of Messrs Wheatly and Davidson it will not be
possible for any of Resolutions 4, 5 and 6 to be passed at the Requisitioned
Meeting and they have now been removed from the agenda.

The remaining requisitioned resolutions are still capable of being proposed
at the Requisitioned Meeting.  However, the withdrawal of the management
team recommended by Active Value confirms the view of the Cordiant Board
that none of the resolutions proposed by Active Value represent a viable
alternative to the existing strategy that has been recommended by the Board
to shareholders, namely the proposed acquisition of Cordiant by WPP Group
plc by means of a statutory scheme of arrangement.

Accordingly, the Cordiant Board continues to recommend Shareholders to vote
against all of the surviving Active Value requisitioned resolutions, and in
favor of the WPP Offer.

CONTACT:  COLLEGE HILL
          Phone: +44 (0) 20 7457 2020
          Alex Sandberg
          Adrian Duffield


CORUS GROUP: To Buy, Sell 50% Stake of Arcelor in Joint Venture
---------------------------------------------------------------
Corus Group plc has agreed with Arcelor S.A. to purchase their 50% share in
Segal SCRL, a Belgian joint venture between Corus and Arcelor, for EUR25
million (approximately GBP17.5 million) in cash.

Corus has also agreed with MetalInvest, a Dutch investment fund, to sell to
them this 50% share in Segal for the same consideration.  Corus will retain
its current 50% holding.  Completion of Corus' purchase from Arcelor is
subject to agreement by the European Commission.  The sale to MetalInvest is
subject to regulatory consent.  The purchase and sale are expected to be
simultaneous.

Segal is a galvanizing operation that toll-processes the material of its
shareholders.  In future it is intended that Corus will utilize 100% of the
production capacity.  Historically, costs and revenues were allocated to
each shareholder and, therefore, Segal's accounting net result in each
period, including 2002, was zero.  Net assets at end-December, 2002 were
EUR25.5 million.

                     *****

Segal's head office and production facilities are located in Yvoz-Ramet near
Liege, Belgium.  It employed 155 people as at end-December, 2002.  In 2002,
Segal toll-processed over 500 thousand tons of hot dipped galvanized sheet
steel for the automotive industry.

Following the merger of Usinor, Arbed and Aceralia in February 2002 to form
Arcelor, the European Commission required Arcelor to divest a number of its
assets.  On July 3, 2003, Corus agreed to purchase 16.7% of Arcelor's
original 66.7% share in Segal.

The exchange rate used is EUR1.43 per GBP1.

CONTACT:  CORUS
          Investor Relations
          Anthony Hamilton
          Phone: +44 (0)20 7717 4503


EINSTEIN GROUP: Hearing on Appointment of Administrator Moved
-------------------------------------------------------------
On July 1, 2003 Einstein Group plc filed a petition in the High Court
seeking the appointment of administrators.  On the application of the
company, the proceedings have been adjourned until July 30, 2003.

The company will make a further announcement as soon as appropriate.

                     *****

Einstein Group called in administrators this month as shares in the company
were suspended on failure to publish accounts for 2002 within the six months
provided by the AIM rules.

In a statement the company said the application only relates to the affairs
of Einstein Group plc, and other companies within the group continue to
trade.

Einstein Group, on its interim statement to June 30, 2002, said trading
conditions remained difficult for the first half of 2002.  Its operation in
Europe suffered from the worldwide slump in technology, media and telecom
sector, and "the patchy movement from analog to digital delivery of
televisions signals."

After identifying a cash shortage in March last year, the company negotiated
two loans, totaling GBP425,000.


HAMLEYS PLC: Waterstone Expected to Bow Out of Bidding Process
--------------------------------------------------------------
Tim Waterstone is understood to be waiting for just the right time to
withdraw his bid for toy retailer Hamleys after refusing to follow his bid
up with a higher offer.

The retail entrepreneur and his backers Rhone Capital, the private equity
group, offered 230p a share offer but refused to increase this up to 268p to
beat a rival offer from Baugur, the Icelandic retailer.  According to the
Financial Times, one observer said Mr. Waterstone is only waiting for Baugur
to present official papers before officially withdrawing from the bidding
process.

Baugur's bid vehicle, Soldier, which offered 254 a share for Hamleys, could
publish its document on Thursday or Friday, according to the report.  Baugur
already controls 26% of the toy store.  Its offer values the company at
GBP58.7 million, or twice the value of the company in March, when the board
announced a possible management buyout.


LE MERIDIEN: Due Date Expires as Rescue Talks Continue to Wallow
----------------------------------------------------------------
The GBP4 million that Le Meridien lenders paid Royal Bank of Scotland early
in July was for rent up to Wednesday, Dow Jones citing sources close to the
situation said on Tuesday.

Senior debt-holders Merrill Lynch, Canadian Imperial Bank of Commerce and
mezzanine debt-holder Lehman Brothers, paid Royal Bank the lease for the
group's 11 hotels on July 4.  The amount enabled the creditors to continue
negotiations for the rescue of the troubled hotel chain.

According to the report, several proposals have been presented to Royal Bank
of Scotland, though the bank itself has not made any proposals of its own, a
source was quoted saying.  Reports indicate interests in taking over the
whole group or individual hotels within Le Meridien have been expressed by
international hoteliers Hilton Group PLC, Marriott International Inc. and
Accor SA.

Lehman, the largest mezzanine debt-holder in Le Meridien, is also reportedly
talking to a number of possible partners including the U.S.' Hyatt Financial
Corporation Ltd. with a view to managing the hotels owned by Royal Bank of
Scotland under sale and leaseback arrangements.  The deal would exclude the
Royal Bank of Scotland hotels, which would revert to Royal Bank of
Scotland's control.

Royal Bank of Scotland and Lehman Brothers declined to comment on the
report, while Hyatt couldn't immediately be reached for comment.  Le
Meridien's fate became uncertain after reports surfaced it would not be able
to pay some GBP20 million in rents owed to Royal Bank of Scotland that came
due at the end of June.
The hotel has debt of about GBP1 billion and all equity owners, including
previous owner Terra Firma, have written down their equity in the chain to
zero, the source said.

Another industry source said Guy Hands' private equity firm Terra Firma,
which bought Le Meridien for GBP1.9 billion in 2001, put a rescue package
together with Lehman Brothers two months ago but withdrew talks after Lehman
teamed up with Merrill Lynch and Canadian Imperial Bank of Commerce.


MARCONI CORPORATION: To Pay Interest on Junior Notes in Cash
------------------------------------------------------------
Marconi Corporation plc (MONI) announced its decision to pay the first
quarterly coupon due on its new Junior Secured Notes (XS0166109768, due
2008) in cash.  The payment of US$12.2 million (approximately GBP7.5
million) interest accrued since 1 May 2003 at the rate of 10% per annum,
will be made on July 31, 2003.

Under the terms of Marconi Corporation plc's Junior Notes, interest can be
paid either in cash at the rate of 10% per annum or in kind (PIK) at 12% per
annum, at the Group's option. The decision to pay in cash or in kind will be
made each quarter and notified to holders of the Junior Notes through a
Regulatory Information Service announcement no later than 15 calendar days
ahead of the quarterly coupon date.  Interest on the Junior Notes becomes
due on July 31, October 31, January 31, and April 30.

About Marconi Corporation plc

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

The company is listed on the London Stock Exchange under the symbol MONI.

Additional information about Marconi Corporation can be found at
http://www.marconi.com.

CONTACT:  MARCONI CORPORATION
          Investor enquiries
          Heather Green
          Phone: 0207 306 1735
          E-mail: heather.green@marconi.com


NETWORK RAIL: Losses Leave Huge Hole on Rail Authority's Pocket
---------------------------------------------------------------
Losses at Network Rail helped forced Strategic Rail Authority into a GBP545
million loss for the financial year 2002 to 2003, according to The Times.
Network Rail made a GBP116 million loss in October 3 to March 31.  The
figure was consolidated on Strategic Rail Authority's balance sheet for the
first time, as the loss-making rail operator was considered subsidiary of
the government rail authority.

The National Audit Office approved the inclusion of Network Rail's business
activities in the rail authorities accounts after the Government accounting
watchdog succeeded in convincing the Office for National Statistics to treat
the firm as a subsidiary.

Sir John Bourn, Comptroller and Auditor-General insisted on the arrangement
as the authority is acting as lender of last resort in the event of
financial difficulties at the infrastructure group.  He said the Strategic
Rail Authority bears the risk on Network Rail's financing that would usually
be borne by equity capital.


ROYAL & SUNALLIANCE: Outlook of U.S. Units Revised to Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services commented on the members of the Royal
SunAlliance USA group: Royal Insurance Corporation of America, Royal
Indemnity Corporation, Connecticut Indemnity Corporation, Security Insurance
Corporation of Hartford, American & Foreign Insurance Corporation, Guaranty
National Insurance Corporation, Fire & Casualty Insurance Corporation of
Connecticut, Viking Insurance Corporation of WI, Safeguard Insurance
Corporation, Globe Indemnity Corporation, Viking County Mutual Insurance
Corporation, Peak Property & Casualty Insurance Corp., and Guaranty National
Insurance Corporation Connecticut.

On July 8, 2003, Standard & Poor's revised its outlook on Royal SunAlliance
USA group to negative from developing.  At the same time, Standard & Poor's
affirmed its 'BBB+' counterparty and financial strength ratings on these
companies.

On July 8, 2003, Standard & Poor's also withdrew its 'BBB+' counterparty and
financial strength ratings on Royal SunAlliance USA group subsidiary
Landmark American Insurance Corporation at Royal SunAlliance USA group's
request.  This non-admitted shell company is expected to be sold by October
2003 to Allegheny Insurance Holdings LLC in conjunction with the group's
recent disposal of ex-managing general agent, Royal Specialty Underwriting
Inc.  Regulatory approval of the sale is pending.

"The outlook revision reflected Standard & Poor's concerns that Royal & Sun
Alliance Insurance Group PLC (R&SA), the ultimate parent, might not achieve
the necessary recovery in operating performance or fully deliver on the
group's restructuring and capital-release program," explained Standard &
Poor's credit analyst Frederick Loeloff. "These concerns relate primarily to
Royal SunAlliance USA group's operations."

Standard & Poor's is concerned about Royal SunAlliance USA group's
continuous weak operating performance, near-term deficiencies in its capital
position, concerns over loss reserve adequacy, and execution risk associated
with implementing its business strategy over the next two years. Offsetting
these issues are the group's good market position within the U.S. insurance
sector, Royal & Sun Alliance Insurance PLC's (RSA&IP; RS&A's main operating
company) support of and historical capital contributions to Royal
SunAlliance USA group, and the expectations of improved capital adequacy and
managerial interaction with its U.S. affiliate.

Major Rating Factors

(a) Strategic importance to parent.  Royal SunAlliance USA group
    is considered strategically important to RSA&IP's business
    model and global spread of business.  Although stand-alone
    operations have weakened considerably over the last two
    years, Royal SunAlliance USA group benefits from ratings
    enhancement as a strategically important member of a higher
    rated group.  As of Dec. 31, 2002, Royal SunAlliance USA
    group contributed about 22% of its parent's net premium
    volume and continues to be a modest earnings contributor.

(b) Restructured operations.  Royal SunAlliance USA group's
    continuing efforts to restructure and consolidate its
    business model should free trapped operating capital while
    reducing market risk, aggregate exposures, and writings of
    non-core business lines.  Combined with improving pricing
    discipline and expenditure management, expectations are that
    underwriting profits and earnings stability will emerge in
    two to three years.

(c) Uncertain loss-reserve adequacy.  Since 1998, Royal
    SunAlliance USA group's net loss and loss adjustment expense
    reserves have increased 40% because of increased writings,
    reserves strengthening for asbestos liabilities, and
    discontinued business lines.  Historically, reserves have
    been deficient and prone to reserve creep.  Although
    management has taken proactive steps to improve the U.S.
    group's overall reserve position during the past two years,
    Standard & Poor's remains concerned that Royal SunAlliance
    USA group's loss reserves might be deficient and could take
    additional strengthening in 2003 or 2004.

(d) Weak capitalization.  Royal SunAlliance USA group's capital
    adequacy ratio -- as measured by Standard & Poor's model --
    was 70% at year-end 2002 and remains well below what is
    typically required for the rating.  Continuous adverse loss-
    reserve development, historical susceptibility to market
    risk, and asbestos reserve strengthening have caused
    unassigned surplus to be negative 74.4% of policyholders'
    surplus for 2002.  They also caused Royal SunAlliance USA
    group's total surplus to decline $1.58 billion since 1998.
    To benefit from the ratings enhancement as a strategically
    important member of a higher-rated group, Standard & Poor's
    expects the level of capitalization to improve substantially
    over the next 18 months.

(e) Material leverage.  Royal SunAlliance USA group's capital
    structure remains highly leveraged and susceptible to both
    credit and underwriting risks, as the group's net loss and
    loss adjustment expense reserves are 3.6x surplus,
    reinsurance utilization is 41.9%, and net writings are 2.3x
    the group's surplus base for 2002.  In addition, risk-
    portfolio concentration exists with workers' compensation
    (25.0%), and two other business lines (private passenger
    auto and other liability) combined constitute 52.2% of Royal
    SunAlliance USA group's net premium writings for 2002.

(f) Weak operating cash flow.  For 2002, Royal SunAlliance USA
    group's underwriting and operating cash flow ratios were
    79.4% and 91.2%, respectively, which are below the group's
    80.2% and 93.3% five-year averages.  Increased loss costs
    and high expenses, offset by flat premium collections and
    investment income, have strained the group's operating cash
    flow and diminished its invested asset base over the last
    four years.

(g) Parent's restricted financial flexibility.  The current
    capital market environment restricts Royal & SunAlliance's
    ability to secure external capital on favorable terms
    relative to its needs for capital to fund ongoing
    requirements. The group has also fully utilized its hybrid
    debt-issuance capacity according to Standard & Poor's
    criteria.

Outlook

Standard & Poor's believes that both Royal SunAlliance USA group and its
parent have refocused their efforts to improve Royal SunAlliance USA group's
operating performance, capitalization, and business-model execution.
Nevertheless, continued adverse development, large loss events, and
loss-cost inflation have all stalled the U.S. group's ability to improve and
stabilize its operating performance and remain as near-term concerns for the
ratings on RSA&IP. For 2003, Standard & Poor's believes Royal SunAlliance
USA group will post modest underwriting and earnings improvement, with a
combined ratio of about 108% and an ROR of about 8.0%.

CONTACT:  STANDARD & POOR'S
          New York
          Frederick Loeloff
          Phone: 212-438-7215
          John Iten
          Phone: 212-438-1757


SILENTNIGHT HOLDINGS: Receives 140p/share Indicative Offer
----------------------------------------------------------
The Company has noted the recent rise in its share price and announces that
it has received an indicative offer at 140p per share from Soundersleep
Limited, which owns 50.8% of the issued share capital of the company.  This
may or may not lead to an offer for all of the shares that Soundersleep does
not already own.

The indicative offer is subject to a number of conditions, including
obtaining funding support and satisfactory due diligence.  Any offer by
Soundersleep, if made, will be in cash at not less than 140p per share,
unless otherwise agreed by the Independent Directors.

On its trading statement last month, the company said: "As reported within
the preliminary announcement, on May 1, 2003, trading conditions in our bed
division continue to be difficult.  In line with a declining market our
first half order book is down year on year, although we remain hopeful of a
slight pick up for the second half of our financial year.  On top of this,
we are experiencing an unprecedented level of margin pressure from our key
customers that is exacerbating the effects of an already difficult trading
climate."


TELEWEST COMMUNICATIONS: To Publish Interim Results End of July
---------------------------------------------------------------
Telewest Communications plc confirms it will announce the Interim Results
for the period ended June 30, 2003 on Thursday, July 31.

                     *****

On September 30, 2002, Telewest Communications plc announced that it had
reached a preliminary agreement relating to its balance sheet restructuring
with an ad hoc committee of bondholders.  The company said last month it has
since made significant progress towards implementing the Preliminary
Restructuring Agreement and, as a result, is close to publicly filing the
documentation necessary to effect the Restructuring.

CONTACT:  Telewest Communications plc
          Phone: 020 7299 5888
          Sue Pemberton

          Citigate
          Dewe Rogerson
          Phone: 020 7638 9571


                            *********


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

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