/raid1/www/Hosts/bankrupt/TCREUR_Public/030908.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Monday, September 8, 2003, Vol. 4, No. 177


                            Headlines


F R A N C E

ALSTOM SA: Cauley Geller Lodges Securities Fraud Suit in S.D. NY
ALSTOM SA: Labor Union Stages Rally in Support of U.K. Workers
SUEZ SA: Cuts Debt by One-third in First-half
SUEZ SA: Sells Water Treatment Unit for US$4.3 Billion
VIVENDI UNIVERSAL: Has No Obligation to Buy Ymer Shares
YOPLAIT: To Axe Jobs to Survive Competition


I R E L A N D

TELETECH HOLDINGS: Low Demand for Service Endangers Belfast Jobs


I T A L Y

CIRIO FINANZIARIA: Recalls Contaminated Pasta Sauce


N E T H E R L A N D S

KONINKLIJKE AHOLD: U.S. Unit Not for Sale Just Yet, Says CEO
KONINKLIJKE AHOLD: Transparency Top Priority, Says Chairman
KONINKLIJKE AHOLD: Bares Figures for Albert Heijn, Stop & Shop
KONINKLIJKE AHOLD: Names Moberg, Ryopponen to Executive Board
VERSATEL TELECOM: To Expand DSL Coverage in Netherlands to 65%


N O R W A Y

PETROLEUM GEO-SERVICES: Fitch Withdraws 'D' Rating


R U S S I A

OAO MAGNITOGORSK: 'B' Ratings Affirmed on Strong First-half


S W E D E N

OMHEX: Magnus Bocker Appointed Chief Executive
OMHEX: OM Trades for First Time after HEX Merger
SCANDINAVIAN AIRLINES: Rejects Union's Offer to Work Half Time


S W I T Z E R L A N D

ABB LIMITED: Corners US$59 Million Contract in UAE
ZURICH FINANCIAL: Completes Sale of Zurich Life to Bank One


U N I T E D   K I N G D O M

BAE SYSTEMS: Fitch Affirms BBB+ Rating; Outlook Remains Negative
COLLINS STEWART: Police Frees Analyst Accused of Blackmail
KENT PLASTICS: Closure Inevitable if Major Customer Walks Out
MARCONI CORPORATION: Gets GBP56.7 Million for Easynet Shares
NORTHERN FOODS: CEO Resigns as Firm Issues Profit Warning

POWERHOUSE: Pacific Retail Buys Firm Out of Receivership
ROYAL & SUNALLINCE: Rights Issue to Raise GBP960 Million
ROYAL & SUNALLIANCE: Ratings of U.S. Operations Under Review
ROYAL & SUNALLIANCE: U.S. Units Slide to 'BB-'
ROYAL & SUNALLIANCE: Group Operating Result Up Year-on-year

ROYAL & SUNALLIANCE: To Pay Preferential Dividend October 1
ROYAL & SUNALLIANCE: Sells Renewal Rights to Travelers Property
ROYAL & SUNALLIANCE: Fitch Ratings Down; Firm on Watch Negative
SOMERFIELD PLC: Kwik Save Underperformance Drags Down Results
STEANS PRINTERS: Bank Appoints Joint Administrative Receivers
UNCHAINED GROWTH: Sets Unsecured Creditors' Meeting Sept. 16
WESTPOINT STEVENS: Court Fixes De Minimis Asset Sale Procedures


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F R A N C E
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ALSTOM SA: Cauley Geller Lodges Securities Fraud Suit in S.D. NY
----------------------------------------------------------------
The Law Firm of Cauley Geller Bowman & Rudman, LLP initiated a securities
class action in the United States District Court for the Southern District
of New York on behalf of purchasers of Alstom SA (NYSE: ALS) publicly traded
securities during the period between May 26, 1999 and June 29, 2003,
inclusive.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
Throughout the Class Period, as alleged in the complaint, defendants issued
numerous positive statements concerning the growth and financial performance
of its transportation subsidiary.

The complaint alleges that these statements were materially false and
misleading because they failed to disclose and/or misrepresented the
following adverse facts, among others:

     (1) That the Company had failed to recognize costs incurred
         in a rolling-stock supply railcar contract at its
         transportation unit in anticipation of shifting the
         costs to other contracts;

     (2) that the Company lacked adequate internal controls and
         was therefore unable to ascertain the true financial
         condition of the Company; and

     (3) as a result of the foregoing, the value of the
         Company's losses was materially understated at all
         relevant times and the value of the Company's margins
         was materially overstated at all relevant times.

On June 30, 2003, before the U.S. market opened for trading, Alstom
announced that it is "conducting an internal review assisted by external
accountants and lawyers following receipt of letters earlier this month
alleging accounting improprieties on a railcar contract being executed at
the Hornell, New York facility of ALSTOM Transportation Inc. (ATI), a US
subsidiary of the Company."

As part of the review, the Company "identified that losses have been
significantly understated in ATI's accounts, in substantial part due to
accounting improprieties by the understatement of actual costs incurred,
including by the non-recognition of costs incurred in anticipation of
shifting them to other contracts, and by the understatement of forecast
costs to completion."

As a result, the Company announced that it would record an additional net
after tax charge of 51 million euros ($58 million) for the year ended 31
March 2003.

For more details, contact Samuel H. Rudman, David A. Rosenfeld,
Jackie Addison or Heather Gann by Mail: P.O. Box 25438, Little Rock, AR
72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail:
info@cauleygeller.com


ALSTOM SA: Labor Union Stages Rally in Support of U.K. Workers
--------------------------------------------------------------
Over 200 Amicus members from the Alstom site in Washwood Heath held a rally
Friday outside Birmingham City Council Offices.  To dramatize their protest,
workers brought a six-foot Perspex coffin with a model of a London
Underground Jubilee line train that was designed and built at the plant.
The coffin symbolizes the death of train manufacture in the Midlands.

A delegation from Alstom Washwood Heath also met with Albert Bore, Leader of
the Labour Group on the council to discuss what support is available from
the council.  Alstom had previously announced it will shut down the plant
despite recently winning a GBP100 million contract to build carriages for
London Underground.  The work is likely to be transferred to France or
Spain.

Formerly owed by Metro Camell, the plant designed and is currently building
high tech Virgin operated Pendolino tilting trains.  This work is due to be
completed in September 2004 while the Underground carriages are not due to
come on stream until February 2005.  The company has cited this five-month
gap as the reason why the plant should be closed, putting 1,400 jobs at
risk.

The rally follows an unofficial sit-in at the plant Wednesday following
Alstom management threat to lock staff out if they attended the rally.

Tom Keogh, Amicus Regional Officer said, "This rally [demonstrates] to the
people of Birmingham the strength of feeling and determination of Alstom
workers to save their site.

"Albert Bore and the council can play a significant role in doing this if
they throw their weight behind the plant.  It will send a message to
Westminster that Washwood Heath deserves saving and that Train manufacture
in the midlands should be protected."

                     *****

Alstom Washwood Heath workers will be also be demonstrating at these events:
TUC Congress in Brighton on Tuesday September 9, 2003.  It will also lead a
2,500-strong march at Labor Party Conference in Bournemouth on September 29,
2003.


SUEZ SA: Cuts Debt by One-third in First-half
---------------------------------------------
Suez S.A. released this latest financial result recently.  These are the
highlights:

(a) SUEZ sharpens its strategy and redefines the Group's scope:
    Nalco sale, decision to dispose of all the communication
    assets;

(b) Objective of one-third debt reduction achieved;

(c) Organic increase of operating results of Group businesses;

(d) Significant exceptional charges due to the Action Plan
    progress;

The objectives of the SUEZ 2003-2004 Action Plan, announced January 9, 2003,
are to improve profitability and strengthen the Group's financial structure.
The plan's first milestones were delivered despite the persistence of
difficult economic conditions.  The plan favors Group concentration on its
key businesses that have prospects of steady organic growth and increased
profitability, as testified by the Group first semester operating results.
The Group's business strategy is further sharpened and its scope clearly
identified by the decision to withdraw completely from the communications
sector and from chemical water and industrial process water treatment
(Nalco).  The sale of Nalco to the Blackstone Group, Apollo Management L.P.,
and Goldman Sachs Capital Partners concluded September 3, 2003, also enabled
the Group to achieve its objective to reduce debt by one-third in the Action
Plan's first year.

(1) Action plan achievements

Reduction of net debt by more than a third

Asset disposals carried out during the first-half included the Northumbrian
Group (sale of 75% ownership), and non-strategic equity holdings in Fortis,
AXA, Total, Vinci.

With Nalco disposal, the Group achieved its debt reduction objective defined
in its Action Plan issued January 9, 2003.  Since the beginning of the year,
all asset sales together contributed close to EUR10 billion toward the
reduction of SUEZ debt.  At June 30, 2003, net debt was thus reduced to
EUR20.3 billion before the sale of Nalco and that of Cespa (compared to
EUR28 billion at June 30, 2002).  After these disposals, the SUEZ net debt
position will be reduced to EUR16.5 billion.

Strengthened balance sheet

At June 30, 2003, i.e. before the Nalco sale, the Group's liquidity was
bolstered and amounted to EUR18 billion covering repayment of the Group's
debt through the end of 2005.  This was accomplished notably due to the
following measures taken during the first-half:

(a) a EUR2.5 billion, 5-year syndicated credit facility serving to
consolidate and extend average maturities of Group confirmed undrawn credit
lines.

(b) the placement of a EUR3 billion bond issue.  The issue was well
received, particularly the 20-year tranche, extending the average maturity
of SUEZ debt while diversifying its funding sources.

(c) the strengthening of SUEZ balance sheet by disposing of EUR6 billion in
assets during the first six month period.  With the sales of Nalco and
Cespa, this figure has increased to EUR10 billion since January 1, 2003.

Cost reductions surpass targeted amount

SUEZ implemented "Optimax" aiming to reduce the operating costs, streamline
its organizational structure, and improve efficiency of capital employed.
The Group's operating profitability will benefit from EUR575 million in cost
savings in 2003 (EUR650 million on a full year basis).

Measured at the operating income level, this figure exceeds the initial
January 2003 estimate (EUR500 million on a full year basis).

Stringent investment selection criteria

During the first-half, investments came to EUR2 billion and for the year are
expected to reach EUR4.5 billion, including certain amounts already
committed at the time of the plan's implementation.  This figure may be
compared with the EUR6.7 billion invested in 2002 and with the average
annual investment objective of EUR4 billion per year for the 2003-2005
period.  Priority is given to organic growth, to developments that require
lower capital intensity, and full self-financing of all investments by each
business line.

Reduced risk exposure

Measures have been taken to refocus the Group on its activities and markets,
which offer the greatest certainty, which are the most profitable and
longest-lasting.  The returns are tangible, particularly with reduced Group
exposure to exchange risk in emerging countries.

Streamlining and integration of corporate structures

All the measures announced were introduced and implemented during the first
six months of 2003.

The most recent of these is the merger of Societe Generale de Belgique and
Tractebel, approved by the Boards of Directors of the two companies on
September 2, 2003.

(2) Action Plan: growth of operating results

Excluding foreign exchange fluctuations and changes in Group structure,
despite a persistent slowdown, businesses' operating performances improved
during the first-half of 2003 compared with the same period the previous
year.

This is reflected in EBITDA and in current cash flow for the Group's two
businesses (energy and environment), which confirm their organic growth
potential of rates between 4 and 7% per year, depending upon the business
environment.

EBITDA

EBITDA of Group businesses amounted to EUR3,415 million and experienced an
organic growth increase of 5%, for the Group's two businesses (energy and
environment).

EBITDA for Energy reached EUR2,218 million and recorded a 5% organic growth
under the impact, among others, of a very favorable winter, electricity
activity outside Belgium, the startup of new power stations, natural gas
distribution, and LNG activity.

EBITDA from Environment was EUR1,197 million, representing a 5% organic
growth (+5.9% excluding Nalco) thanks mainly to municipal water and waste
services in Europe, and especially in France.

Total EBITDA (EUR3.5 billion) was affected by exchange rate fluctuations
(U.S. dollar, Brazilian real) and changes in Group structure (Northumbrian
Water Group, Fortis) that were tied to the Action Plan.  Total operating
income grew by 0.6% on a constant exchange rate and Group structure basis
(-15.5% on an gross basis).

Excluding exchange rate fluctuations and changes in Group structure, the
cost savings realized largely offset specific elements such as the
persistent economic slump, the rate reductions imposed in Belgium starting
in July 2002 and the non-recurring effects of Brazil energy rationing last
year.

Cash flow

At the end of the first six months of 2003, the Group had generated EUR2.3
billion in total cash flow, outpacing investments (EUR2 billion) thanks to
stringent investment selection criteria.

(3) Accelerated Action Plan pace - strategic aspects

SUEZ has decided to increase the pace of its Action Plan and made two
voluntary decisions allowing to, on the one hand, sharpen its strategy and
redefine the Group's scope, and enable it to surpass its debt reduction
objective on the other hand.

Sale of Nalco (also see the attached release)

SUEZ has just concluded the sale of Nalco, its subsidiary specialized in
chemical water treatment and industrial process water.  The transaction
values Nalco at US$4.350 billion.

Nalco represented approximately one fourth of Group revenues derived from
North American operations

The sale of Nalco is a choice that sharpens SUEZ's business strategy, takes
into account the new economic environment, the Group's more stringent
financial criteria, and Nalco's development potential.  In addition, this
decision accelerates the Group's net debt reduction by approximately EUR3.4
billion.

Sale of communications sector assets

In conjunction with its strategy of concentrating on the Energy and
Environment businesses, SUEZ has decided to sell all its communications
sector assets.  This disposal will take place at a pace chosen by SUEZ.

The Action Plan will be continued and expanded by the sale of these
activities, but also by improved operational profitability, thanks to a
build-up of the "Optimax" program whose effects will increase more during
the second half of 2003, and for which new, more ambitious objectives will
be established in conjunction with the 2004 budget process.

(4) Action plan impact on exceptional items

The exceptional income for the first-half reflects the consequences of
measures taken to implement and increase the pace of the Action Plan.  The
plan thus had its cost in 2003.  The benefits of these measures will be
recurrent and progressive offering SUEZ new prospects for a turnaround.

The exceptional loss for first-half 2003 was EUR2 billion.

This figure is affected (Group share impact) by elements whose counterpart
contribute to the ongoing improvement in the Group's business profile:

(a) The cost of "Optimax" (cost reduction) measures identified to date has a
negative impact of around EUR76 million for the first-half;

(b) The sale of non-consolidated equity investments (Axa, Total, Fortis)
resulted in a net capital loss of approximately EUR95 million.

(c) SUEZ recorded an exceptional charge of EUR360 million for the capital
loss experienced on the sale of 75% of the Northumbrian Group.  This
operation contributed to improving the Group's return on capital employed,
reducing its capital intensity and improving its free cash flow position.

(d) Due mainly to the unfavorable trend in the financial markets, the sale
of Ondeo Nalco led the Group to absorb an exceptional charge of EUR700
million.  Nevertheless, this transaction, which is slightly accretive,
improves its return on capital employed. Concurrently, the evolution of USD
and EUR parity contributed to a correlative reduction of the Group debt in
USD used to finance the American investments, particularly Nalco
acquisition.  As an example, for the first semester, Group-s debt net
recorded a EUR720 million decrease due to the USD decrease.

(e) SUEZ's decision to dispose of its communications sector assets has led
it to mark the value of these assets to market and consequently to record a
EUR700 million provision allowance for potential losses (mainly for Noos).
In the meantime, the potential capital gain on its investment in M6 is
EUR800 million.  The sale of Coditel-Codenet (Belgian cable assets) is now
well underway and is expected to be concluded by the end of the year.

The Group's net loss for the year came to EUR1.6 billion, due principally to
capital losses realized in connection with the Action Plan and to the
decision to dispose of the Group's communications sector assets.

(6) Outlook

2003 should be viewed as a year of consolidation characterized by its
businesses' good operating performance in a continuing, difficult economic
climate and, as announced in Action Plan, with results impacted by
exceptional charges tied to the implementation of that plan.

For 2003 as a whole, taking into account cost reduction measures already
applied, EBITDA from organic sources is expected to improve over 2002, on a
constant exchange rate and Group structure basis.

Return on capital employed, the strength of the balance sheet, and liquidity
generation are all expected to improve.

All together, the assets sold by SUEZ in connection with the Action Plan
represent approximately 10% of Group revenues.  In other words, debt
reduction was realized while preserving more than 90% of the businesses'
revenues, without affecting SUEZ's strategic activity.

Furthermore, Nalco sale which represented 27% of Group revenues derived from
North American operations, still leaves us with three quarters of the Group'
s activities in the United States, where United Water serves 10 million
clients and Tractebel North America is an electricity producer and the first
LNG importer to the United States Gerard Mestrallet, Chairman and CEO of
SUEZ commented: "SUEZ is continuing to implement its Action Plan. With the
sale of our chemical water treatment and industrial process water activity,
and with the decision to dispose of our communications sector assets, we
have sharpened our business strategy, redefined the Group on the foundation
of 90% of our revenues.  We have already achieved our objective to reduce
debt by one third.  We are encouraging our businesses' organic growth, and
aiming to improve their performance and profitability.  Our business
strategy is based solely on energy and the environment, from a solid
European footing, and strong positions in the rest of the world (including
North America, Brazil and China)."

SUEZ, a worldwide industrial and services Group, provides companies,
municipalities, and individuals innovative solutions in Energy - electricity
and gas - and the Environment - water and waste services.

In 2002, SUEZ generated revenues of EUR40.218 billion (excluding energy
trading).  The Group is listed on the Euronext Paris, Euronext Brussels,
Luxembourg, Zurich and New York Stock Exchanges.

To View Financials: http://bankrupt.com/misc/SUEZ_financial.pdf

CONTACT:  SUEZ S.A.
          Financial analyst contact
          Anne Liontas
          Phone: (331) 4006 6654

          Arnaud Erbin
          Phone: (331) 4006 6489


SUEZ SA: Sells Water Treatment Unit for US$4.3 Billion
------------------------------------------------------
SUEZ concluded the sale of Nalco, its subsidiary specializing in chemical
water treatment and industrial process water[1], to a consortium composed of
the Blackstone Group, Apollo Management L.P., and Goldman Sachs Capital
Partners.  The transaction values Nalco at US$4.350 billion[2].

The sale of Nalco is a strategic decision in line with the objectives of the
SUEZ 2003-2004 action plan announced January 9 of this year, namely, to
improve profitability and strengthen the Group's financial structure.  This
decision also reflects the new economic environment, the Group's more
stringent financial criteria, and Nalco's development potential.  In
addition, the sale of Nalco will reduce the Group's debt by approximately
US$3.8 billion.

Therefore, already in 2003, the Group has achieved one of the principal
goals of the Action Plan, namely, to reduce its net debt (which stood at
EUR28 billion at June 30, 2002) by one-third.  Total disposals carried out
since February 2003 will have contributed EUR10 billion to reducing SUEZ
debt[3].

The Nalco transaction, slightly accretive, boosts the Group's profitability
by improving its return on capital employed (ROCE) in its global businesses:
9.1% ROCE for global businesses in 2002, excluding Nalco, to be compared
with 8.6% ROCE for global businesses in 2002, including Nalco.  Furthermore,
the Nalco sale improves SUEZ's major financial ratios (debt-to-equity,
EBITDA on net financial expenses, cash flow-to-debt), and reduces goodwill
and intangible assets on SUEZ's balance sheet by more than one third.

Nalco's sale was arranged through a competitive private bidding process over
a period of several months.  Nalco's valuation took into account operating
performance improvements, cost reductions of the past several years, as well
as a potential rebound in U.S. industrial activity.

The transaction price implies an EBITDA multiple of approximately 8.1 times
on the basis of the last 12 months EBITDA under U.S. GAAP, to be compared
with an EBITDA multiple of 10 at the time of the acquisition.

This unfavorable financial market trend is not totally offset by the
continuous progress of Nalco performances.  Thus, the Group will record an
exceptional charge of EUR700 million for the first-half results of 2003
following the sale of Nalco.

With the disposal of Nalco, the Group continues to implement its action
plan, while confirming its business strategy focused on two businesses
(energy, environment), from a solid base in
Europe and with strong positions in the rest of the world (including North
America, Brazil and China), pursuing a profitable and sustainable growth.

On this transaction UBS and Rohatyn Associates advised SUEZ.  HSBC issued a
fairness opinion on Ondeo Nalco's valuation and the sale procedure.

Revenue contributed by business activity (basis 1st semester 2003)

                         Before Nalco       After Nalco
Others                    2%                   2%
Environment              35%                  31%
Energy                   63%                  67%

Revenue breakdown by geographic zone (basis 1st semester 2003)

                         Before Nalco       After Nalco
Rest of the world         10%                 10%
North America             12%                 10%
Europe                    78%                 80%

SUEZ generates more than 50 % of its revenues with industrial customers.

At Group level, Nalco represents 5.9% of the total revenues and less than
15% of revenues derived from industrial customers.

In 2003, Nalco generated 5.9% of Group revenues (less than 15% of the
Group's industrial customer revenues), approximately 27% of Group revenues
derived from North American operations, accounted for 6.5% of Group EBITDA,
6.8% of Group NCR, and 13.6% of the Group's capital employed.  Ondeo Nalco
has a work force of 10,000 employees.

--------
Footnote

[1] This sale, which is subject to some usual conditions especially the
agreement by the anti-trust American,
Canadian and European authorities, should occur by the end of 2003.  The
financing of this operation is fully underwritten.

[2] i.e. US$4.2 billion plus the assumption of certain leases.

[3] Since the beginning of the year, SUEZ has disposed of non-strategic
equity investments in AXA, Total, Vinci, SES, as well as the bulk of its
investment in Fortis, its stake in Cespa, along with 75% of Northumbrian
Water Group whose capital requirements no longer corresponded to Group
objectives.

CONTACT:  SUEZ
          Financial Analyst
          Arnaud Erbin
          Phone: (331) 4006 6489
          Bertrand Haas (331) 4006 6609
          Eleonore de Larboust (331) 4006 1753
          Home Page: http://www.suez.com


VIVENDI UNIVERSAL: Has No Obligation to Buy Ymer Shares
-------------------------------------------------------
After the publication of press articles about Elektrim that contain
erroneous information, Vivendi Universal would like to reiterate the
following details, which are provided in the Vivendi Universal 2002 Document
de Reference (pages 313 and 314, 406 and 407) and in the 2002 Form 20-F
(page F-80):

(a) Since December 1999, Vivendi Universal has held a 49% interest in
Elektrim Telekomunikacja, with Elektrim SA holding the remaining 51% until
September 3, 2001;

(b) On September 3, 2001, an agreement concerning the shareholding and
management of Elektrim Telekomunikacja was signed by Vivendi Universal and
Elektrim.  This agreement had no impact on Vivendi Universal's ownership or
control interest in Elektrim Telekomunikacja, which is unchanged at 49%.
Investment company Ymer has since acquired a 2% equity interest in Elektrim
Telekomunikacja from Elektrim;

(c) Ymer is a company independent from Vivendi Universal, which does not own
it nor control it, directly or indirectly.  Vivendi Universal is by no means
committed to acquire the shares owned by Ymer.  Similarly, Ymer has neither
a right, or obligation to sell those shares to Vivendi Universal and is free
to sell them to a third party at any time.


YOPLAIT: To Axe Jobs to Survive Competition
-------------------------------------------
Milk products group Yoplait may cut jobs at several plants in France to
re-establish competitiveness in the region, according to justfoods.com.
About 315 jobs or 16% of the total workforce in the country, mostly in the
production area, would likely be axed, the report said.

The company fell into the red at about the same time rivals had successfully
overtaken its market share from 16% in 1996 to 10.2% last year.  The company
has an annual turnover of around EUR1 billion (US$1.08 billion) and is
jointly owned by French cooperative, Sodiaal, and investment fund, PAI
Management, which took a 50% shareholding in 2002.  Former Danone senior
executive, Lucien Fa, became its new managing director last year.


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TELETECH HOLDINGS: Low Demand for Service Endangers Belfast Jobs
----------------------------------------------------------------
Almost a hundred jobs are under threat at TeleTech's Belfast call center due
to low demand for its new 118 service, BizWorld said.  The layoff will
involve only new hirees.  The decision to cut jobs is due to a massive
shortfall in the number of directory enquiry since the company started
operations last month.  Workers will be redeployed within the call center to
minimize the job losses.

North Belfast MP Nigel Dodds said he will seek a meeting with Ulster Economy
Minister Ian Pearson to discuss the situation.
TeleTech will be left with 300 workers after the job-cuts.


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CIRIO FINANZIARIA: Recalls Contaminated Pasta Sauce
---------------------------------------------------
Italian canned food producer, Cirio, has figured in another bad news, this
time involving some batches of its pasta sauce sold in the U.K.
Accordingly, it contained chili powder contaminated with the chemical dye
Sudan I.  It is thought that Sudan I, a dye that is not permitted in food,
could cause cancer, although there is no immediate threat of illness.

Cirio's Arrabbiata Pasta, which were sold in Sainsbury's, Waitrose and other
retailers, were withdrawn as U.K.'s Food Standards Agency reiterated its
warning on contaminated chili products.  The regulator said these brands of
pasta sauce should either be returned or thrown away.

The Italian agro-food firm, which defaulted on EUR1.1 billion of bonds in
November, filed for bankruptcy last month.  Its liquidators are currently
determining whether to declare the company bankrupt or put it under
administration and sell certain assets.  The review is aimed at seeing which
of the unprofitable businesses should be sold or closed down to raise funds
for those units that are considered going concerns.


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KONINKLIJKE AHOLD: U.S. Unit Not for Sale Just Yet, Says CEO
------------------------------------------------------------
Royal Ahold Chief Executive Anders Moberg delivered this speech during the
annual general shareholders' meeting held on September 4, 2003:

Good morning dear shareholders, ladies and gentlemen.  I welcome this
opportunity to speak to you.  To begin, let me tell you what you can expect
from me today.  I intend this to be a high level presentation about the
future of our company.

I will not be commenting on the accounting irregularities of the past six
months.  The only thing I would like to say in that regard, is to thank all
the employees who have worked day and night since February, spending long
hours away from their families and friends, and foregoing summer holidays to
put things straight.  I'm really proud to have the opportunity to work with
people like that.

What I would like to do is:

(a) Share my impressions of my first 120 days and where I think
    the company stands today;

(b) Talk about my vision for Ahold - addressing two key
    priorities: namely focusing our food retail business and
    restoring value to foodservice; and in this way rebuilding
    Ahold's financial strength;

(c) And finally, I want to take you through the high level
    strategic principles that will guide our decision making
    going forward.

I will not be providing answers to all the questions you have today.  I
trust, however, that by the end of my presentation, you'll have confidence
in the direction we're heading.  We will provide more specific detail on our
future strategy after we have delivered our 2002 audited consolidated
results, which we expect by Sept. 30, 2003, as we have announced already.  I
will speak to you again at the next Shareholders Meeting, which will be held
shortly thereafter.

So this, then, is the first step in communicating what the 'new' Ahold is
going to look like.

You should consider this as the framework, within which further details and
decisions will be placed in the coming weeks and months.  There has been a
lot of focus on the financial side of the company in the past six months,
rightly so.   But I think that it is time to start talking about the
business.

I'd like to take a few moments this morning to share some of my experiences
in getting to know our customers, our people and our business over the past
few months.  I visited many of our food stores and had an introduction to
our foodservice businesses in Europe and the United States.  Everywhere I
went, I met enthusiastic people who are dedicated and committed to serving
our customers in the very best way.  I've been impressed by the quality in
our stores and the quality of our people.  I met loyal customers, many of
whose families have shopped with us for generations.  I also had the
opportunity to speak to some members of the financial community.

All the stakeholders I spoke to over these past months have one thing in
common: they all want to see our company back in shape again.  And I am
determined to make that happen.

Strong business

Despite all the bad news, let's not forget that our company has some very
distinctive strengths.  It's built on a strong underlying business, run by
talented retail professionals.  We are experts in food-merchandising.  We
excel in its handling, its safety and its quality.  We have great locations:
stores that are convenient and easy to get to.  All of this has allowed us
to build a strong local customer base, and to establish leading local
brands.

We're leading food retailers in most of the markets in which we operate.
This scale should allow significant cost savings, and therefore should
improve our competitive advantage.  But, we are not as competitive as we
could be, should be and will be.   So, the good news is that there is plenty
of room for improvement.

Multiple opportunities

We are out of focus.  We have tried to be everything to everybody.  That's
expensive!

For example: we are in hypermarkets, compact hypers, supermarkets,
convenience stores and even in discount.  In addition, we run production
facilities and own specialty stores and pharmacies.

This lack of focus has a drastic impact on our cost base.  For instance: our
logistical infrastructure needs to be able to deliver large quantities in
the cheapest possible way and, at the same time, service smaller and more
frequent deliveries.  Our supply chain needs to accommodate highly
perishable products, as well as white and brown goods.  This means that
we're into areas that require the handling of after-sales support and the
handling of guarantees.

Our structure is too complex.  For example: I saw too many overlapping
initiatives at different levels and unclear responsibilities.  Different
operating companies, with different business models, and different business
processes create a structure that is too complex.  This makes it very
difficult to have efficient controls.

We have too many under performing assets.  There are some loss making
businesses that have no prospect of becoming profitable within a reasonable
time frame.  This can't go on.  And believe me: there are no sacred cows!

The company has grown very fast but failed to integrate at the same pace,
and failed to have adequate financial controls.  As a result of this global
ambition, the debt level also increased.   The result is a sub investment
grade rating which constrains our flexibility and our ability to deliver
growth today.  However, the past is the past.

Solving these problems is an urgent priority, but will take time.   It's a
matter of refocusing and revitalizing every aspect of the company, and then
demanding much sharper execution from our wholly-owned companies, as well as
our joint ventures.

Pre-requisites

In order to make this happen, I'm convinced that we have to adopt a
wholesale change in the mindset of our organization, if we are to deliver
value to our customers, our associates and our shareholders.  This entails
creating a common culture and reducing the complexity of our organizational
structures.

In short, we will have to scale back our global ambitions; create a new
culture and esprit de corps, and drive for synergies and organic growth.

Two key strategic priorities

Let me now outline the two -- equally important -- priorities that we need
to come to grips with, in order to rebuild our company into a great firm
again, and ultimately deliver value back to you, the shareholders.

We must rebuild our U.S. Foodservice company, and we must focus our food
retail business.

We benefit from some leading retail brands in Europe and the United States,
but it is critical that we streamline and synergize to drive competitiveness
and growth going forward.

U.S. Foodservice is in a sub-optimal state right now.  Having looked at this
very carefully, I genuinely believe that we can build upon, what is today, a
collection of leading regional assets.  And in so doing, access a major
source of value for shareholders.  I know that you are very interested in
our U.S.  Foodservice business, so let me say a little more about it before
turning to food retail.

Foodservice in the U.S.

The foodservice market in the United States is huge.  It's worth $160
billion plus.  There are essentially two national players: SYSCO with 15%
market share and U.S. Foodservice with 11%, which is over US$18 billion
dollars.  So there is lots of room for growth.

Our plans to integrate our U.S. Foodservice business, after a series of
acquisitions, was badly de-railed by the fraud discovered in 2003.  And at
this stage, we don't know the true underlying strategic value of our asset
which is, nevertheless, a major player in what still amounts to a highly
fragmented, but still very important, growth industry.  So, therefore to
sell it off today would create a massive destruction of shareholder value!

In terms of our strategic deliberations, this critical asset will be
actively managed to get on track.  My current assessment is that it will
take us 18 to 24 months to rebuild this company and restore its value.  Only
when we have a clear picture of the value of this business, can we decide
the role of U.S.  Foodservice within the future strategy of Ahold.

Getting U.S. Foodservice on track

So, what are we going to do over the next 18 to 24 months?

U.S. Foodservice will be managed as a single business operating separately
from food retail, and will receive the full attention of Ahold's Executive
Board.  We will further establish an Advisory Board, which will include some
external members, to support U.S.  Foodservice.

We are in the process of installing a new management team whose assignment
is to get the company on track.  During this period, we foresee limited
investment.  The company has grown too fast through acquisitions with
insufficient integration.  We believe that the ingredients are all there.
We will have to put them together.

As a result of our investigations, we will put in the necessary disciplines
and strict internal controls to establish good governance and restore the
business to health.  Please rest assured that we, as the Executive Board,
will keep a very close eye on this process.  We will keep you informed of
our progress on a quarterly basis.

I'll now focus my comments on the strategic direction for our food retail
business.

Our vision on retail

In my review of our company's strengths, it's very clear to me that our
expertise and knowledge in food gives us the ability to be the leading food
retailer of choice, in every market in which we choose to operate.

And that is our vision.

We will become the leading food retailer of choice by staying as close as
possible to our customers, and serving them better.  Serving our customers
better is our number one priority.  This means through quality, value,
choice and service.  Many of our brands are already leading in their
markets.  In these markets, we want to out-distance the competition even
further.  In those markets where we are not yet leading, we will closely
evaluate the potential for leadership, and then make a decision to invest or
divest.

So, how are we going to create this new competitive force in food retailing?

Focus our portfolio

First, we must focus.  The major shift in our strategic emphasis is to focus
on what we do best: food retailing in selected markets in the United States
and Europe.  This means that we will focus on markets where we already have
or can achieve a leading position within a reasonable time.

Our businesses, like Albert Heijn and Stop and Shop, are trendsetters in
food merchandising; food innovation; food management, and food choice.  We
want all our businesses to be at these standards.

Let's be clear, we are already engaged in divesting our non-strategic assets
and are well on our way to withdrawing from two continents: South America
and Asia.  We are also already divesting a number of non-core assets, the
most recent being Golden Gallon in the United States, announced last week.
This will continue.

We are scrutinizing our entire portfolio, keeping in mind our financial
constraints and required returns.
We will focus on: leading operations and formats capable of further growth,
and operations and formats that can be fixed to become market leaders.

This means that operations and formats that are neither/nor, must be
divested.  We believe that these decisions are key to our competitiveness,
profitability and free cash flow.

Restructure and control

Secondly, we will restructure our company and install tighter controls.
There are a number of parallel processes currently underway to streamline
the company, strengthen its competitiveness and return to sound financials.
Let me explain each one in turn.

Scrutinize our Portfolio

Our portfolio is already under incisive review.  As I mentioned earlier, we
are in some businesses that have no profitable outlook for some time to
come.  They will be taken out of our portfolio.  Every business we are in
must be capable of achieving market-leadership, despite our financial
constraints, within three to five years.

Currently, we are in the process of reviewing each and every one of our
businesses to see whether they fit this strategic requirement.  If not, they
will be divested.  We will align our activities and focus on supermarkets.
All our businesses must fit within the Ahold business model, be within the
same infrastructure and use the same underlying retail processes.

We have a major opportunity in integrating the whole upstream side of our
business.  For example, in IT, like point-of-sale systems.  I see no reason
for us to maintain expensive and independent systems across the company,
when we can implement the best practices already in use within Ahold.

And finally, we include our Joint Ventures in this approach.  Unless we can
develop a common agenda to maximum mutual benefit, a joint venture is not in
the interests of its partners, nor its shareholders.  I believe that the
reason for our limited success with some of our partners is that we have
failed to understand the need to integrate.  And better integration is a
cornerstone of our strategy.  I referred to the Ahold business model
earlier.  Let me be more specific.

Defining the scope

The bright yellow square on this slide is what we are best at: that's
supermarkets, focused on quality.

But, in some markets, in order to better serve the needs of our local
customers, the supermarket format can be stretched towards convenience
stores or to compact hypers.  But all our formats will be focused on food
and selected non-food.  We strongly believe that quality is the core of our
consumer offering.  However, the more same type of stores you have, the
easier it is to take costs out of the system, and improve your competitive
offer to your customers.

Today, we are all over the place.  We need to focus on the bright yellow
square.

Leverage the existing business

I'm the first to recognize our current financial constraints, but I also
believe that there is an awful lot more we can squeeze out of the existing
business, if we can change our mindset.

At the moment, there is far too much unnecessary duplication and unilateral
initiative.  I see lots of opportunities to take out costs without hurting
local competitiveness.

Let's start with standardizing our processes for example.
Simply applying a uniform standard to our operating companies, enables us to
reduce costs and to also deliver our unique standard of quality to our
customers, at better value.

We will need to step up our efforts to lower our cost base, to maintain our
local market leadership positions.  This can be achieved by simplifying and
standardizing our distinct customer offering.

This does not mean that we are moving to a one-size-fits-all proposition.
But it does mean that we can extract real value from what has been, until
now, a relatively loose federation of retail businesses.

By standardizing our processes we can create efficiencies and genuinely
drive synergies out of the whole business.

To give you but one example, salmon sourcing.

At the moment, our companies use 75 individual specifications for sourcing
one type of quality salmon.

The benefits that could be gained to both the company and our customers by
standardizing this process, are obvious.  This would result in consistently
high quality for our customers at better prices.

Implement an 'arena' strategy

To help us standardize to the maximum, we intend to organize our business
around regional marketplaces with similar characteristics, which we call:
'arenas'.  At present we've identified seven potential arenas, and we are in
the process of reviewing our operations within them.

For instance: within some of our 'arenas' we have different operations
servicing the same customer needs.  We can gain efficiencies by operating in
the same way.  By doing so, we can benefit from our scale in servicing local
needs but at a much lower cost base.

To give you an example, in Central Europe we will have integrated our
upstream activities for the Czech Republic, Poland and Slovakia into one
support-organization for this arena, based in Prague, by the end of this
year.

This 'arena' strategy is one step that we are taking to simplify the
organization.  There are others.

Simplify the organization

We are moving from a financial holding company to a business focused on food
retail: in other words from Finance to Floor.

We will move toward a 'one company approach', driving common processes
throughout the business.  Aligning these common processes will reduce
complexity and improve efficiency and effectiveness.

Global business processes, such as in administrative support, will be
standardized as much as possible.  As I mentioned before, this will all have
to be underpinned by one company culture, with a common vision and shared
values.

I believe a well-defined portfolio, a streamlined organization, and
standardized formats and processes are the only way to reduce the cost base.

Now let me address the issues of governance and controls in greater detail.

Financial management & controls

Ahold went through a very intensive and lengthy process of investigation and
auditing.

Based on all these findings, we are establishing tighter controls.  We also
aim to implement the highest possible standards of compliance, disclosure
and professional conduct throughout the business, to ensure that our company
is never again confronted with a similar crisis.

As we announced in July, a special task force reporting to the Audit
Committee has been created.  This task force will oversee the implementation
of the changes required as a result of the forensic investigations conducted
over the past six months.  It is our intention to implement all of the
changes by the end of 2003.

We know that we must comply with the new legislation on corporate
governance, like the Sarbanes Oxley Act, and others.  The nomination of
Peter Wakkie, as Chief Corporate Governance Counsel and member of the
Executive Board, is a sign of our very firm commitment.

To get back to a sound financial footing, our primary focus is on debt
reduction through significant disposals, improved performance and cash flow
maximization.

Our businesses are now focused on generating free cash flow through tight
working capital management and selective capital expenditure, with very
tight central control by our Treasury.  We've only just started the process
of seriously benchmarking our operations against the 'best in class' in the
industry, and it is clear that this will provide further opportunities; for
instance, on inventory management and payment terms to suppliers.  Given the
very significant debt burden on our balance sheet today, we are, as you
might expect, also currently assessing the various options available for
financial restructuring.  This includes numerous capital markets' options.

Guiding principles

These then, are the principles that characterize the change in our strategy
and that will guide our decision making on our portfolio.  Our joint
ventures are included in this approach.

It is our strategic intent to be the leading food retailer in every market
in which we operate.  If we cannot do so within a reasonable time frame,
then we will take corrective action quickly.  The reality today, is that we
have been trying to be everything to everybody.  We are not up to par in our
cost structures.  And we have not been driving efficiencies and synergies as
relentlessly as we should.

The failure to integrate and operate as one company has contributed to many
of our problems and is now threatening our competitiveness.  It has eroded
our value, and it is imperative that we correct this.

I know that you would like much more specific detail about our plans and
their impact on our balance sheet and P&L account.  I hope you will
understand that we have not concluded our 2002 audit, and that we still have
considerable work to do in fine tuning the implementation of our strategy
with respect to our financial position.  At the next shareholders meeting we
will provide more detail on our strategy as well as on financial
restructuring.

Restoring our reputation

Ahold's reputation is the most precious asset we have.  I know that the
accounting irregularities and errors discovered in 2003 have tarnished the
reputation of a company that you and our customers have trusted and
supported for years.  We know that we have a lot to do to restore your
confidence in us.  Our highest priority now is to rebuild the value of our
company.  We will do everything in our power to create a company of which
you can once again be proud.

One company culture

I would just like to conclude today by saying that to achieve these
objectives, we will need motivated and enthusiastic people.  Our associates
are aware of the demanding times ahead.  While we intend to provide you with
the fullest disclosure at the appropriate time, I hope you will understand
that we do not wish to destabilize our business while we are the process of
revitalizing it.

We are one company, with multiple brands, moving toward a shared vision and
common values.  It is our intention to recreate the value of Ahold.  We have
over 400,000 colleagues in foodservice and food retail, and they play an
important role in bringing this strategic vision to reality.

If, we can be just a little bit better in serving our customers, than we are
today, in both the United States and Europe, we will differentiate ourselves
from the competition.  We will create new value.  We have a lot of
challenges before us, but we have all the right ingredients to achieve our
strategic goals.  We are all committed to make it happen.

On behalf of everyone at Ahold, I thank you for continuing to support us
during these very difficult times.

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


KONINKLIJKE AHOLD: Transparency Top Priority, Says Chairman
-----------------------------------------------------------
Henny de Ruiter, chairman of the Ahold Supervisory Board also delivered this
speech at the AGM:

Ladies and Gentlemen, this meeting has been convened in these still
extraordinarily difficult circumstances to update you to the best of our
abilities on the current state of affairs at Ahold.

Moreover, and I say this with the risk of being repetitive, striving for
maximum transparency has been our objective throughout.

If we sometimes cannot be as open as we would like, it is due to
circumstances that we unfortunately cannot always influence and that we --
like you -- regret.  Let there be no misunderstanding about this.

As you know -- and I would like to emphasize the point here -- the first
priority of the Supervisory Board, and certainly also for myself, was to
safeguard the continuity of Ahold.

Even in its most difficult moments, this company has not been rudderless for
one day.

I would like to say here that my sincere respect goes out to all associates
who have, without distraction, continued doing their jobs in these
challenging times.

The future has been addressed with the nomination of a new CEO and a new CFO
and your opinion on our proposals will be requested shortly.  You are also
aware that we plan to nominate Mr. Peter Wakkie as Chief Corporate
Governance Counsel, a new position that emphasizes how much importance we
attach to an excellent relationship with you, our shareholders, and with all
our other stakeholders.

Ahold's current priority, as you hopefully know, is to be able to present
the audited consolidated 2002 financial statements. We are working hard to
get this done.  Very hard.

During the last meeting, I detailed the measures that had been taken in that
respect to date.  It goes without saying that we haven't sat still since
then.  We have made large steps forward.

Key to these efforts are the forensic accounting investigations announced
earlier, which were conducted at a large number of our operating units.

And I would like to briefly discuss this point.  I would like to indicate
how much work is involved in reviewing and appropriately responding to the
findings of the investigations as well as the other issues identified during
the audit process, and why that is taking so long.  Because therein lies the
reason for the delay in the publication of the 2002 financial statements.

The investigations identified approximately 750 items for review.  Ahold is
following up on each of these.  The nature of these items is very diverse.
They vary from simple documentation issues to clear accounting
irregularities.  Of these 750 items, almost 300 have to do with
administrative procedures and internal control weaknesses.  These items will
be followed up on, although not necessarily all in the process of finalizing
the 2002 accounts.

Currently a special Task Force is in the process of following up on all of
the findings of the investigations.

As far as the irregularities are concerned, let me give an example.  After
the announcement of the irregularities at U.S. Foodservice, it was of the
greatest importance for Ahold to determine precisely what had occurred
there.  Specifically, at issue was gaining a true insight into so-called
"promotional allowances."

I would like to explain this term briefly.  "Promotional allowances" are
rebates that companies receive from vendors.  These promotional allowances
form a large part of U.S. Foodservice's earnings -- which is also the case
with comparable companies.

These promotional allowances had to be checked and that means that in very
many cases it had to be verified what the conditions were U.S. Foodservice
had to comply with in order to receive certain rebates.

In addition, all those cases had to be examined to ascertain to what extent
the rebates had been received on the basis of underlying agreements.
Finally, in each of these cases, it was verified if and when the rebate was
received.  And all that over a three-year period.

This meant reviewing thousands of book entries and other data, requiring the
cooperation of hundreds of suppliers.  I would like to point out, but most
of you know this already, that U.S. Foodservice is a very large company with
billions of dollars in sales, about three times the size of Albert Heijn.

In order to examine the Ahold group more fully, forensic investigations at
18 other Ahold operating units and at corporate headquarters were conducted.
We have issued press releases with respect to price sensitive issues
discovered during the forensic investigations.

As a result of the accounting irregularities at U.S. Foodservice and certain
other operating companies, we could no longer rely on some of our accounting
records and we had to reconstruct or validate part of our bookkeeping.  This
is very time-consuming work and made more difficult because a number of
executives and accounting personnel who were probably directly involved in
the irregularities are no longer with the company.

In addition to the findings of accounting irregularities, the forensic
accountants also identified a large number of accounting issues and
questions.

A large number of issues have also come up during the ongoing audit by the
company's auditors Deloitte & Touche, some of which as a result of the
investigations.

Every single accounting item has been discussed with the forensic
accountants and Deloitte & Touche, and in the end, each item has been
followed up.

In order to address many of these items, factual information has to be
collected from the respective operating companies and often various company
specialists have to be called on. Conference calls between corporate
headquarters, the operating company in question and the accountants are a
daily occurrence.

This is an ongoing daily process, seven days a week, and often more than 20
hours a day.

I would add that due to the circumstances in which Ahold finds itself,
research into each of these items is very intensive and comprehensive.  As
long as this time-consuming process has not been completed, audited 2002
financial statements cannot be delivered.

I am delighted to inform you, however, that this exercise is sufficiently
far along to have the expectation that we will be able to make the new
September 30 deadline.

We apologize for the fact that it was impossible to make the earlier August
15 deadline, despite the efforts of all involved to achieve this goal.

As Johan Cruyff once said: "Every disadvantage has its advantage."  The
process is taking a long time. But the fact that the company has been
reviewed so carefully and thoroughly helps us to face the future with
confidence.

Deferral of the audited financial statements has resulted, however, in a
very long period of time between the general meeting of May and the Annual
General Meeting of Shareholders at which we will present our audited 2002
financial statements. That is why we have decided to convene this meeting.

The Dutch Association of Securities Owners (VEB), with whom we have
conducted a constructive dialogue in recent months, was one of the parties
that indicated the need for explaining the delay. We understand your need
for information and clarification.

I hope that I have now been able to sufficiently explain why the publication
of our financial statements has been delayed. Moreover, we have a number of
other issues that we would like to discuss with you during this meeting.

As you might know, a press release went out this morning announcing certain
financial information for Albert Heijn and Stop & Shop.  Please bear in mind
that these figures are still unaudited because the auditor's opinion is only
expressed with regard to the consolidated financial statements as a whole
and this opinion is not given until the very last item has been audited.

These are the figures, subject to any required audit adjustments, that will
appear in Ahold's 2002 annual report and in the Form 20-F that will be filed
with the U.S. SEC.

You are aware that Albert Heijn and Stop & Shop financials were provided
earlier to the syndicate of banks that extended the credit facility.  These
were so-called "statutory" accounts and not the figures that have been
published today and which are meant for consolidation purposes.

Why have the banks been provided with different figures than we have
published?

Albert Heijn and Stop & Shop are the two operating companies that are
borrowers under the credit facility.  In order to be able to assess the
financial position of these borrowers, the banks need the figures of these
legal entities, as if they were fully independent.  The banks receive these
figures under the strictest confidentiality.  They are not authorized to use
this information for any other purpose -- not even within their own
organization -- other than for purposes of their position as credit
provider.

You, as shareholder of Koninklijke Ahold N.V., in order to assess the
financial position of Koninklijke Ahold as a whole, need the figures for the
entire group, in other words: the consolidated figures.  In that context we
are required to make available information on relevant segments of the
company.  Albert Heijn and Stop & Shop are two of those segments.  The
information we have published today is the segment information that, subject
to any required audit adjustments, will be published in the annual report
and the Form 20-F.

I am also pleased that Anders Moberg will reveal certain elements of the
course he has set for Ahold going forward.  In our May meeting, Mr. Moberg
requested sufficient time to draw up and present a detailed strategic
direction for the company.  Although the period he requested is not yet
over, he would like to take advantage of this occasion to share some points
of departure with you here.

I can well imagine that you are interested in what he has to say.

That is why I would now like to proceed with the agenda.  I therefore
propose we now move on to the next item on the agenda.

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


KONINKLIJKE AHOLD: Bares Figures for Albert Heijn, Stop & Shop
--------------------------------------------------------------
After consultation with the VEB (Dutch Association of Securities Owners),
Ahold published Thursday unaudited financial information for its wholly
owned subsidiaries, Albert Heijn and Stop & Shop, for fiscal years
2000-2002.  This information, subject to any audit-related adjustments, will
be included in the business segment information contained in Ahold's Annual
Report and Annual Report on Form 20-F for fiscal year 2002.  The numbers
below for Stop & Shop are given in USD but will be in Euros in the Annual
Report and Form 20-F, using the applicable exchange rates for the relevant
periods.


Segment information for Albert Heijn and Stop & Shop
(all numbers x 1,000,000)

                                  2002    2001    2000

Net sales
Stop & Shop USD                   9,476   8,779   6,333
Albert Heijn EUR                  5,703   5,409   5,201

Operating income
Stop & Shop USD                     714     564     537
Albert Heijn EUR                    262     247     196

Tangible and intangible fixed assets
Stop & Shop USD                   3,282    2,952  2,063
Albert Heijn EUR                    589      611    597

Expenditures for additions to tangible fixed assets
Stop & Shop USD                     629      707    481
Albert Heijn EUR                     92      146     95

Expenditures for additions to intangible fixed assets
Stop & Shop USD                      28       25     -
Albert Heijn EUR                     22       19      7

Depreciation and amortization
Stop & Shop USD                     275      245     151
Albert Heijn EUR                    124      127     125

Assets in use for operational activities
Stop & Shop USD                    4,393   4,211   3,092
Albert Heijn EUR                   1,195   1,230   1,147

Definition:  All assets, less investment in group companies and loans to
group companies.

Liabilities from operational activities
Stop & Shop USD                    1,078   1,005   1,120
Albert Heijn EUR                     720     646     628

Definition:  All liabilities, less interest bearing debt.

Number of associates in full-time equivalents, average (x1)
Stop & Shop                       40,027  38,443  28,736
Albert Heijn                      22,425  22,292  22,934

Number of stores (x1)
Stop & Shop                          333     321     211
Albert Heijn - company stores        489     479     508
Albert Heijn - franchise stores      217     207     201

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


KONINKLIJKE AHOLD: Names Moberg, Ryopponen to Executive Board
-------------------------------------------------------------
Ahold announced Thursday that during a General Meeting of Shareholders held
in The Hague, shareholders approved the appointment of two new members of
the Corporate Executive Board. Anders Moberg was appointed as President and
Chief Executive Officer and Hannu Ryopponen was appointed as Chief Financial
Officer.

The appointment of Anders Moberg was accepted with 97% of the votes
represented in the meeting.  The appointment of Hannu Ryopponen was accepted
with 99% of the votes represented in the meeting.

                     *****

The news of huge profit overstatements in Ahold early this year forced the
Dutch retailer to restate years of earnings and turn to lenders for a credit
lifeline.  Shares in the company lost two-thirds of their value after the
scandal broke.  Ahold has EUR12 billion (US$13 billion) in debts.

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


VERSATEL TELECOM: To Expand DSL Coverage in Netherlands to 65%
--------------------------------------------------------------
Versatel Nederland B.V. announced it will expand its Dutch DSL footprint
from roughly 50% to 65% coverage of The Netherlands in the coming months
over its own infrastructure.  In addition, Versatel is able to provide
almost nationwide coverage through other DSL based products outside its
infrastructure footprint. With this expansion of its DSL network, Versatel
confirms its position as the largest alternative provider of DSL-based
services for the business, residential and wholesale market in The
Netherlands.

Versatel's new investment is based on the increased demand of business and
residential customers for DSL based products like IP VPN's and broadband
Internet and recent improvements in the competitive and regulatory
environment in The Netherlands.  "We are getting positive signals from the
Dutch government of their serious intention to foster infrastructure
competition, and thereby sustainable competition, in the telecommunications
market.  We are also confident that the new telecommunications law will
provide for a much better equipped regulator (OPTA), that can act swiftly
and effectively," said Raj Raithatha, Chief Executive Officer of Versatel.

The expansion of the DSL network enables more than 100,000 new businesses
and approximately 900,000 extra households to order Versatel's and Zon's
affordable DSL Internet services. Recently, Zon opened up the Dutch
broadband Internet market by offering the most affordable ADSL subscription
on the Dutch Market: Zon Broadband Budget for EUR14.95 per month.  More
information on http://www.zonnet.nl/breedband

Versatel Nederland B.V. is part of Versatel Telecom International N.V.
(Euronext: VRSA).  Versatel, based in Amsterdam, is a competitive
communications network operator and a leading alternative to the former
monopoly telecommunications carriers in its target market of the Benelux and
Germany.  Founded in October 1995, the company holds full telecommunication
licenses in The Netherlands, Belgium and Germany and has over 1 million
customers and over 1,469 employees.  Versatel operates a facilities-based
local access broadband network that uses the latest network technologies to
provide business customers with high bandwidth voice, data and Internet
services.  Versatel is a publicly traded company on Euronext Amsterdam under
the symbol "VRSA". News and information are available at
http://www.versatel.comor http://www.versatel.nl

CONTACTS:  VERSATEL
           AJ Sauer
           Corporate Finance & Investor Relations Manager
           Phone: +31-20-750-1231
           E-mail: aj.sauer@versatel.nl

           Anoeska van Leeuwen
           Director Corporate Communications
           Phone: +31(0)20 750 1322
           E-mail: anoeska.vanleeuwen@versatel.nl


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


PETROLEUM GEO-SERVICES: Fitch Withdraws 'D' Rating
--------------------------------------------------
Fitch Ratings has withdrawn the 'D' rating of Petroleum Geo-Services' senior
notes and trust preferred securities.  The withdrawal was initiated by Fitch
in accordance with established procedures regarding companies that file for
bankruptcy under Chapter 11.

                     *****

Petroleum Geo-Services ASA, headquartered in Lysaker, Norway is a
technology-based service provider that assists oil and gas companies
throughout the world.  The Company filed for chapter 11 protection on July
29, 2003 (Bankr. S.D.N.Y. Case No. 03-14786).  Matthew Allen Feldman, Esq.,
at Willkie Farr & Gallagher represents the Debtor in its restructuring
efforts.  As of May 31, 2003, the Debtor listed total assets of
$3,686,621,000 and total debts of $2,444,341,000.

CONTACT:  FITCH RATINGS
          Patrick McGeever
          Phone: +1-312-368-3124
          or
          Randall P. Biang
          Phone: +1-312-606-2342, Chicago


===========
R U S S I A
===========


OAO MAGNITOGORSK: 'B' Ratings Affirmed on Strong First-half
-----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B' long-term
corporate credit rating on Russian steel company OAO Magnitogorsk
Metallurgical Kombinat, following the company's strong first-half 2003
financial results.  The outlook is positive.

At the same time, Standard & Poor's affirmed its 'ruA+' Russia national
scale ratings on the company and its 'B' senior unsecured debt rating on
related entity Magnitogorsk Metallurgical Kombinat Finance SA

"During the period of high steel prices in the first-half of 2003
Magnitogorsk Metallurgical Kombinat demonstrated strong financial
performance.  The privatization of the Russian government's 23.76% stake in
Magnitogorsk Metallurgical Kombinat, however, which is scheduled for 2003,
remains the key uncertainty in the short term," said Standard & Poor's
credit analyst Elena Anankina.

Magnitogorsk Metallurgical Kombinat's management currently controls a 62%
stake in the company and is expected to seek control of the government
stake.  The effect of the privatization process on the company's credit
quality is still uncertain and will depend on the identity of the successful
buyer, the price to be paid, and the structure of the transaction. The
company had total debt of US$549 million at June 30, 2003.

"Standard & Poor's believes Magnitogorsk Metallurgical Kombinat's current
strengths are likely to warrant a one-notch upgrade if the privatization
does not significantly drain the company's financial resources or threaten
to alter its demonstrated strategy of measured investment in modernization,"
added Ms. Anankina.

"Magnitogorsk Metallurgical Kombinat's credit quality is expected to benefit
from the improving sovereign environment in Russia and the company's
resilience to industry pressures, if the company maintains its competitive
cost base and curbs working capital outlays."


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


OMHEX: Magnus Bocker Appointed Chief Executive
----------------------------------------------
The Board of OMHEX announced the appointment of Magnus Bocker as the CEO and
President of OMHEX.  Jukka Ruuska is appointed deputy CEO of OMHEX.  Created
through a merger between the Swedish company OM and the Finnish company HEX,
the new company OMHEX is a leading provider of marketplace services and
transaction technology, facilitating efficient securities transactions.

"OMHEX now faces an intense period in which the important integration of OM
and HEX and the major focus program announced earlier this year will be
completed according to plan.  I am convinced that Magnus Bocker and Jukka
Ruuska will form an excellent team that will deliver on these challenges,"
says Olof Stenhammar, chairman of the Board of OMHEX.

"We have many interesting and challenging tasks ahead of us.  I am delighted
that the Board has placed their confidence in me to lead OM HEX forward,"
said Magnus Bocker, CEO and President of OMHEX.

                     *****

OM AB revealed in its interim report for January to June 2003 loss after
financial items of SEK521 million, operating loss of SEK513 million, and
loss after tax of SEK457 million.

It is implementing a cost reduction program, which is estimated to lower the
company's costs by SEK578 million and result in lower revenues of SEK105
million on a yearly basis.

CONTACT: OMHEX
         Olof Stenhammar, Chairman of the Board
         Phone: +46 8 405 66 42
         Anna Eriksson, VP Marketing & Communications
         Phone: +46 70 554 52 06


OMHEX: OM Trades for First Time after HEX Merger
------------------------------------------------
OMHEX on Thursday announced the first day of operations and the commencement
of trading in the OMHEX share.  Created through a merger between the Swedish
company OM and the Finnish company HEX, the new company OMHEX is a leading
provider of marketplace services and transaction technology, facilitating
efficient securities transactions.

"This is truly a historic day for the new OMHEX company and an important
step in the creation of an integrated Nordic and Baltic market, a market
that we will now further develop together with our customers and other
marketplace entities," said Magnus Bocker, President and CEO of OMHEX

"The larger scale of resources and customer-driven orientation of OMHEX will
increase the company's competitiveness and will give it greater leverage and
capacity to serve customers and form strategic partnerships with other
leading international exchanges," said Jukka Ruuska, president HEX
Integrated Markets and deputy CEO of OMHEX.

OMHEX operations are based on two divisions; HEX Integrated Markets,
northern Europe's largest securities market, offering access to
approximately 80% of the Nordic equity market, and OM Technology, a leading
provider of transaction technology for the world's financial and energy
markets.  Jukka Ruuska will be the president of the HEX Integrated Markets
division, and Kerstin Hessius will continue as president of Stockholmsborsen
with a dual role as deputy to Jukka Ruuska.  The HEX Integrated Markets
division has four business areas; Cash Markets headed by Jouni Torasvirta,
Derivatives Markets headed by Simon Nathanson, Settlement & Depository
headed by Heikki Sirve and Baltic Operations headed by Gert Tiivas.  Klas
Stahl is the president of the OM Technology division, which consists of
three business areas; Banks & Brokers where Klas Stahl is also acting head,
Financial Markets headed by Roland Tibell and Global Services headed by
Carl-Magnus Hallberg.  For a more detailed presentation of the new OMHEX
management, please see www.omhex.com

The creation of OMHEX is expected to provide benefits for issuers, members
and investors through increased liquidity, efficient member access, a
broader range of services and lower costs when connecting to the Nordic
markets.  The merger is also expected to create value for the companies'
shareholders through annual cost savings of up to SEK220 million pre-tax
with full effect within three years, which is higher than the SEK180 million
announced in the prospectus.  Costs for the transaction, restructuring,
technology migration and redundancies are estimated at around SEK430
million, which is also more than previously announced SEK360 million.

The acquired HEX shares are assessed an estimated balance sheet book value
of SEK2,300 million, with goodwill estimated at SEK1,700 million.

As of today the OMHEX share is listed on both Stockholmsborsen and Helsinki
Exchanges under the codename OMH on Stockholmsborsen and OMH 1V on Helsinki
Exchanges.  Trading of the OMHEX share at Helsinki Exchanges starts for the
first time when the market opens at 10.00 (local time).

CONTACT:  OMHEX
          Magnus Bocker, CEO and President
          Phone: +46 8 405 66 44
          Jukka Ruuska, President HEX Integrated Markets
          Phone: +358 9 6166 72 01
          Anna Eriksson, VP Marketing & Communications
          Phone: +46 70 554 52 06
          Anu Ilvonen, Communications Manager
          Phone: +358 50 376 0438


SCANDINAVIAN AIRLINES: Rejects Union's Offer to Work Half Time
--------------------------------------------------------------
Scandinavian Airline Group, SAS, which has been cutting jobs to return to
profitability by 2004, has reportedly snubbed suggestions from cabin crew to
work half time in order to prevent colleagues from losing their jobs.

According to Norwegian Aftenposten, the Norwegian Cabin Union received a
list of 71 people who were axed and more firings may be on the way.  It
noted that the union had not even managed to reply in writing to an offer
from SAS before they were informed of the cuts.  Apparently, SAS has ignored
its cabin crew's offer to work half time and has insisted proceeding with
the job-cuts as it had planned.

Union leader John Lyn said: "We must note that SAS did not wish to come to
agreement with us and that they did not want to take our outstretched hand.
This is not good PR for SAS."

However, SAS cabin personnel director Tove Svendsen said "SAS has weighed
the cabin union's suggestion" and has also calculated costs, but
unfortunately found that the costs of the suggestion were too great.

Scandinavian Airlines faces constant challenges from budget operators,
adding up to its already dire financial situation.  It has been reported
that the Nordic Airlink, Norwegian and Sterling have joined the battle over
prime regional routes, this can well mean another 70-90 SAS job-cuts next
spring.

Mr. Lyn commented: "We hope that we can expand out of this.  Two to three
new routes out of Oslo are all we need to save these jobs.  Traffic will
determine how many of them go next spring."

Mr. Svendsen, on the other hand, said that "much expansion" would be needed
to counterbalance superfluous jobs, and recommended that those who felt the
call to do something else should do so.


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


ABB LIMITED: Corners US$59 Million Contract in UAE
--------------------------------------------------
ABB, the leading power and automation technology group, said it has won two
contracts worth US$59 million to upgrade and expand electric power
transmission and distribution in the United Arab Emirates.

The contracts, signed with Abu Dhabi Water and Electricity Authority, are
designed to meet the growing demand for energy in the UAE .

"The speed with which we can complete this complex project was the key
factor in winning this contract," said Peter Smits, head of ABB's Power
Technologies division.

The first contract includes the supply of around 50 pre-engineered and
self-contained 33/11kV distribution substations, which will speed up
delivery time.  The package includes 386 medium-voltage switchgear panels
and 20 transformers.

The second contract comprises the delivery of five 33/11kV distribution
substations that incorporate the latest technology in control, protection
and monitoring systems, 250 air- and gas-insulated switchgear panels, as
well as 25 distribution transformers.

The first units will be delivered in seven months, and the contracts
finalized in 20 months.

It is the latest in a series of orders from the United Arab Emirates.  The
most recent was a US$49 million contract last month with Abu Dhabi Water and
Electricity Authority for an underground cable system and the replacement of
an existing substation in Abu Dhabi.

ABB (http://www.abb.com)is a leader in power and automation technologies
that enable utility and industry customers to improve performance while
lowering their environmental impact.  The ABB Group of companies operates in
around 100 countries and employs about 133,000 people.


ZURICH FINANCIAL: Completes Sale of Zurich Life to Bank One
-----------------------------------------------------------
Zurich Financial Services Group announced the close of the sale of Zurich
Life, part of its U.S. life and annuity operations, to Bank One Corporation
(NYSE: ONE).  This transaction was announced on May 30, 2003.  Kemper
Investors Life Insurance Company is not part of the sale and will be
retained by Zurich Financial Services.

                     *****

Zurich Financial Services Group last month said the transaction
values the business at approximately US$460 million.

It also said: "Approximately US$240 million constitutes the cash payment,
which will be paid by Swiss Re on completion.  The balance of the
transaction value will be remitted as dividends to Zurich ahead of
completion."

Sandy Leitch, Chief Executive Officer of the Zurich Financial
Services UKISA/Asia Pacific Business Division, commented, "We are
transforming our Life businesses in the U.K.  This involves
sharpening our focus, reducing expenses, strengthening our
overall capital position, and growing profitable new business.
This transaction contributes to all of those aims.  Zurich's
overall business strategy and our commitment to building a
powerful Zurich brand in the U.K. are unaffected by this
decision."


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


BAE SYSTEMS: Fitch Affirms BBB+ Rating; Outlook Remains Negative
----------------------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed BAE Systems
plc's Senior Unsecured and Short-term ratings at 'BBB+' and 'F2',
respectively, following the company's announcement of a new jet trainer
order from India.  The rating Outlook is Negative.

On Wednesday the company was awarded a c.GBP800 million order from the
Indian Government to supply 24 Hawk advanced jet trainers.  Delivery of the
jet trainers is expected to begin three years after the signing of the
contract, which is still under negotiation.  The Hawk jet trainers are used
by 17 countries, including the U.S., Canada and Australia.  The new order
takes the BAE's aggregate sale of the aircraft to more than 800.

The order from India follows the July 2003 order from the U.K.'s Ministry of
Defense for 20 upgraded Hawks with an option for additional 24 in a deal
valued c.GBP800m.  The MoD had awarded the Hawk contract without allowing
for an open tender, as a failure to support BAE would lead to job losses at
and endanger exports from BAE.  Fitch had flagged this outcome in May 2003
(for additional information please refer to BAE's report on Fitch's
website).  Both the U.K. and India orders are expected to safeguard c.3,000
jobs at BAE's manufacturing site at Brough, Yorkshire.

The agency notes that the support obtained from the MoD is a signal that its
critical relationship with BAE might be improving following the setback
relating to the contracts for the Nimrod patrol aircraft and the Astute
nuclear powered submarine in December 2002.  However, Fitch considers that
this event does not affect the current credit ratings.

BAE is Europe's largest defense equipment company and a shareholder in
airplane manufacturer Airbus SAS.


COLLINS STEWART: Police Frees Analyst Accused of Blackmail
----------------------------------------------------------
The City of London police ruled that analyst James Middleweek is not
blackmailing Collins Stewart Tulett in relation to his allegations of
serious regulatory breaches against the firm.

Mr. Middleweek, who is also suing Collins Stewart for wrongful dismissal,
earlier made a 32-page document of his testimonies and sent it to the
Financial Services Authority.  Collins Stewart denied the accusation and
said it would file legal proceedings against the Financial Times for the
coverage of the issue.

In a statement to the stock exchange last week, Colins said that in a
meeting with representatives of Dale Langley and Mr. Middleweek on July 9,
the solicitors had offered to suppress the report in return for a payment of
GBP2.4 million.

"The company considered this a blackmail attempt, dismissed the employee
immediately and reported the matter for investigation by the City of London
Police," it said.

"After due consideration by the Crown Prosecution Service, they have advised
that no offence has been committed by Dale Langley & Co. [his lawyers] or
Middleweek," they said, according to the Financial Times.

Mr. Middleweek is claiming more than GBP3 million for his dismissal.


KENT PLASTICS: Closure Inevitable if Major Customer Walks Out
-------------------------------------------------------------
Sixty jobs are set to go at Enniskillen-based Kent Plastics, maker of
plastic components for the motor industry, according to BizWorld.  The
company is only waiting for its major customer to officially pull out its
business from Enniskillen to serve redundancy notices to employees affected,
the report said.  The customer is withdrawing from the area to reduce costs.

Clare and Mike Kent formed the company in 1989 with the aim of providing
quality plastic building products at the best prices.  Its customers
currently includes DIYers, builders, window fitters, housing associations
and local authorities as well as other GHbuilders merchants and DIY stores.

Following the report of the likely closure of the business, Former UUP MLA
Sam Foster has called on local government agency, Invest NI to help stem the
flow of job cuts in the west of the province.

4local news quoted him saying: "It would be another sad day for the region
if the worst case scenario unfolded.  Kent Plastics has provided sound
employment for many people in the area for a long time... I trust we can
encourage the firm to remain with them and safeguard jobs. This difficulty
arose before and was overcome."


MARCONI CORPORATION: Gets GBP56.7 Million for Easynet Shares
------------------------------------------------------------
Marconi Corporation plc is pleased to announce the successful completion of
the accelerated bookbuilding process.  A total of 44,682,364 ordinary shares
of 4 pence each in Easynet Group Plc have been placed by Hoare Govett
Limited with a wide range of institutions at a price of 127 pence per share,
raising approximately GBP56.7 million before expenses.

The Placing Shares comprise new listed ordinary shares arising on the
conversion of Marconi's holding of an equivalent number of unlisted
non-voting ordinary shares.  Application has been made for the New Ordinary
Shares to be admitted to the Official List of the U.K. Listing Authority and
to trading on the London Stock Exchange.  Admission is expected to become
effective no later than 9.00 a.m. on September 9, 2003 and it is expected
that settlement of the placing will take place on September 11, 2003.
Following the placing Marconi will cease to have an interest in the share
capital of Easynet.

The net cash proceeds will be paid into a mandatory redemption escrow
account pursuant to the terms of Marconi's Junior Secured Notes and Senior
Secured Notes.  This will result in a mandatory partial redemption of
Marconi's Junior Secured Notes at a redemption price of 110% plus interest
accrued to the redemption date.  A notification of mandatory partial
redemption will be issued to the holders of the Junior Secured Notes no
later than September 25, 2003.

The shares placed had a carrying value of GBP10.4 million in Marconi's
accounts as at July 31, 2003.

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.


NORTHERN FOODS: CEO Resigns as Firm Issues Profit Warning
---------------------------------------------------------
Northern Foods announces that Jo Stewart has resigned from the position of
Group Chief Executive and will be leaving the company.  The process of
appointing a successor will begin immediately.  Group Chairman Peter
Blackburn has assumed the role of Executive Chairman pending the appointment
of a new Chief Executive.

Tony Hobson, Deputy Chairman and senior independent non-executive Director,
said: "The board is very pleased that Peter has agreed to take on interim
executive responsibility for the company.  His considerable experience in
the food industry, most recently as Chairman and Chief Executive of Nestle
U.K., will provide Northern with the expertise and clear direction it needs
at this time."

Peter Blackburn added: "I would like to thank Jo for the very real
contribution he has made during his 15 years with the company.  Northern has
an excellent product portfolio, strong customer relationships, well-invested
facilities and a solid financial base.  It is a business that is capable of
delivering
consistent growth in earnings and shareholder value.  However the board
believes that the company is not operating to its full potential, and we are
seeking a significant improvement in performance.  It will be the task of
the whole management team to achieve this improvement.  I look forward to
working with them closely as interim Executive Chairman before handing over
to a new Chief Executive."

Trading update

As anticipated in the Chairman's AGM statement on July 17, the underlying
trend in Group sales in the second quarter to date has been weaker than in
the first 13 weeks of the year, though headline sales have improved due to
the acquisition of Solway Foods.

Grocery profits in the first-half are expected to be ahead of the comparable
period last year, despite the anticipated impact of weak biscuit trading.

However, performance in Convenience Foods has reflected very challenging
trading conditions, including business transfers to competitors, the
negative effects of the extremely hot summer and margin pressures caused by
raw material cost inflation.  As a result, Group pre-tax profit for the
first-half, before goodwill amortization and exceptional items, is expected
to be significantly lower than in the comparable period last year.

Although further raw material cost inflation is expected, with new
initiatives now under way the board anticipates that trends in the key
trading period of the second half will be more positive.  Pre-tax profit for
this period, before goodwill amortization and exceptional items, is expected
to be around the level achieved in the second half last year.

Northern Foods expects to announce its first-half results on November 11,
2003.


APPENDIX: Key sales data

                                   13 weeks              8 weeks
                                 to 28.6.03           to 23.8.03

Total sales                                +  5.8%        +  9.6%
Underlying retail sales                     +  5.5%       +  3.0%

Sales to five largest customers              +  7.0%       +10.0%
Underlying sales to five largest customers   +  6.0%      +  3.0%


The Group's five largest customers are Marks & Spencer, Tesco, Sainsbury's,
Asda and Safeway.

Share buyback program

Northern Foods' continuing share buyback program, which is enhancing
earnings per share, has resulted in 5.9 million shares being bought for
cancellation in the current year to date at a cost of GBP9.4 million.  This,
when combined with last year's purchase of 36.4 million shares for GBP55.5
million, will increase interest costs in the first-half by some GBP1.1
million.

CONTACT:  NORTHERN FOODS
          Peter Blackburn, Chairman
          Sean Christie, Finance Director
          Phone: 01482 325432 thereafter

          Hudson Sandler
          Keith Hann/Wendy Baker
          Phone: 020 7796 4133


POWERHOUSE: Pacific Retail Buys Firm Out of Receivership
--------------------------------------------------------
New Zealand-based Pacific Retail bought U.K. high street electrical
Powerhouse from administrative receivership, saving more than 2,600 jobs in
the process, according to the Financial Times.

PowerHouse went into administrative receivership last month after credit
insurers withdrew cover because the company's risk profile had become too
uncomfortable.

The acquisition, whose value is still to be announced, includes PowerHouse's
current 142 sites -- what was left after receivers shut down 90 other
stores.

The transaction came as a surprise to observers, who though Deloitte &
Touche, the receivers, would have a hard time selling the business as a
going concern.  It also surprised the receivers themselves who knew little
of interest for the business as a whole.

Financial Times described Pacific Retail Group as a little-known company
that dominates the New Zealand electricals market, but has no previous
experience as an international retailer.

The transaction increases by twofold the size of the group's retail
interest.  The new owners are confident it can bring stability to PowerHouse
on the way to expanding it, according to the report.


ROYAL & SUNALLINCE: Rights Issue to Raise GBP960 Million
--------------------------------------------------------
Summary

(a) Terms: 1 for 1 at 70 pence per new share

(b) Fully underwritten by Goldman Sachs International, Merrill
    Lynch International and Cazenove & Co. Ltd.

(c) Strengthens balance sheet to grow business for profit

(d) Net written premiums revised for 2005 to GBP6.4 billion from
    GBP5.5 billion in 2004 following the planned reduction of
    quota share in 2004 and growth opportunities in 2005.

Strategic review

(a) Focus on U.K., Scandinavia and Canada

(b) U.S. to be restructured, renewal rights transaction with
    Travelers Property Casualty Corporation for standard
    personal lines business and the majority of the commercial
    lines businesses

(c) Commercial continuing to be weighted towards property;
    personal concentrated on direct and selected intermediated

(d) Operational focus on excellence in underwriting and claims
    management and driving down expenses

(e) Performance management culture with clear accountabilities

(f) Independent review of general insurance claims provisions by
    Tillinghast; subject to further validation and confirmation,
    may increase provisions by up to GBP800 million in the third
    quarter of 2003

(g) Independent review of major U.K. life exposures by
    Tillinghast

Performance improvement delivery

(a) Delivered around GBP80 million of annualized expense savings
    against GBP160 million target; today increasing target to
    GBP270 million

(b) Successful disposals of Promina, RSUI and U.K. healthcare;
    HBOS agreement to end

(c) Run rate net written premiums for 2003 of GBP6.7 billion
    from GBP8.6 billion in 2002

(d) Revised target of 100% combined operating ratio target on
    average across the insurance cycle from previous 102% target

You are referred to the group's full Interim Results announcement also
released today for more detailed information.

This document does not constitute, or form part of, an offer, or
solicitation of an offer, or invitation to subscribe for or purchase any
rights, ordinary shares or other securities of the company in the United
States.  In addition, the securities of the company to be issued in the
rights issue have not been, and will not be registered under the us
securities act of 1933 (the 'securities act') and may not be offered or sold
or delivered within the united states or to us persons absent an applicable
exemption from the registration requirements of the us securities act.
There will be no public offer of securities in the United States.

CONTACT:  ROYAL & SUNALLIANCE
          Analysts:

          GOLDMAN SACHS
          Chris French
          John Rafter
          Matthew Westerman
          Phone: +44 (0) 20 7774 1000

          MERRILL LYNCH
          Matthew Greenburgh
          Rupert Hume-Kendall
          Richard Slimmon
          Phone: +44 (0) 20 7996 1000

          CAZENOVE
          David Mayhew
          Tim Wise
          Conor Hillery
          Phone: +44 (0) 20 7588 2828


ROYAL & SUNALLIANCE: Ratings of U.S. Operations Under Review
------------------------------------------------------------
A.M. Best Co. has placed the financial strength ratings of A- (Excellent) of
the Royal & SunAlliance USA Insurance Pool (RS&A USA) (Charlotte, NC) and
the Royal Surplus Lines Insurance Company (Connecticut), under review with
negative implications.

These actions follow the announcement by RS&A USA's U.K. parent, Royal &
SunAlliance Insurance Group plc (RS&A), of its restructuring of the U.S.
business, which will likely include a substantial charge for loss reserves
as well as disposition of a sizable portion of RS&A USA's commercial
business and personal lines business.  While the proposed restructuring in
the U.S. will reduce RS&A's global consolidated risk capital requirements,
A.M. Best remains concerned that the restructuring will negatively impact
the business profile of RS&A USA operations and may significantly erode the
capital position of the U.S. insurance entities.

A.M. Best is currently assessing the impact of this restructuring on the
U.S. companies' pro forma operating performance, capitalization and reserve
adequacy and expects to conclude on the U.S. ratings by the time RS&A
announces its third quarter results in November.

For a comprehensive list of Royal & SunAlliance USA Insurance Pool's
financial strength ratings please visit
http://www.ambest.com/press/090405royalsunallianceusa.pdf.

A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit A.M. Best's Web site at http://www.ambest.com

CONTACT:  A.M. BEST CO.
          Public Relations:
          Jim Peavy
          Phone: 908-439-2200, ext. 5644
          E-mail: james.peavy@ambest.com
          Rachelle Striegel
          Phone: 908-439-2200, ext. 5378
          E-mail: rachelle.striegel@ambest.com
          or
          Analyst:
          Gerard Altonji
          Phone: 908-439-2200, ext. 5626
          E-mail: gerard.altonji@ambest.com


ROYAL & SUNALLIANCE: U.S. Units Slide to 'BB-'
----------------------------------------------
Fitch Ratings has downgraded the insurer financial strength ratings of the
Royal & SunAlliance USA insurance subsidiaries (RSA USA) to 'BB-' from
'BBB+'.  The companies represent the U.S. insurance operations of Royal &
Sun Alliance Insurance Group plc (RSA).  The ratings were also placed on
Rating Watch Negative.

The rating action follows various announcements related to RSA USA including
likely reserve strengthening in third quarter 2003 in the range of $900
million and RSA USA's announcement that it has sold the renewal rights for
its commercial and standard personal lines businesses, effectively placing a
majority of the RSA USA book of business into run-off.  Additionally, RSA
has indicated that it will infuse capital into RSA USA only to the extent
needed to maintain minimum statutory requirements from the proceeds of a
fully underwritten rights offering of GBP960 million (US$1.5 billion).

The rating action reflects Fitch's concerns about the level of
capitalization at RSA USA following the above actions, as well as the
adequacy of recorded insurance liabilities even after the strengthening
planned for third quarter.  Fitch no longer views the U.S. operations as
being core or strategic to RSA for ratings purposes, and is adjusting RSA
USA's rating to more closely reflect its stand alone profile.  Additionally,
Fitch estimates that RSA USA's pro-forma capitalization ratios will no
longer meet standards to support a 'secure' rating.

Additionally, Fitch believes the planned run-off of such a significant
portion of the book increases reinsurance collectability risk, particularly
because reinsurance disputes often arise in the absence of a continuing
business relationship.  Fitch also considered RSA USA's potential exposure
under various legal actions surrounding insurance policies it wrote covering
student loan securitizations.

The ratings affected are listed in the table.


Entity/Issue/Type                          Action     Rating

American and Foreign Insurance Co.

Atlantic Indemnity Company

Atlantic Security Ins. Co.

Carolina American Ins. Co.

The Connecticut Indemnity Company

Financial Structures Ins. Co.

Financial Structures Ltd.

The Fire & Casualty Ins. Co. of CT

Globe Indemnity Company

Grocers Ins. Co.

Guaranty National Ins. Co.

Guaranty National Ins. Co. of CT

Landmark American Ins. Co.

Marine Indemnity Ins. Co. of America

Orion Insurance Co.

Peak Property & Casualty Ins. Co.

Royal Indemnity Company

Royal Insurance Co. of America

Royal Surplus Lines Insurance Co.

Safeguard Insurance Co.

Security Ins. Co. of Hartford

Unisun Ins. Co.

Viking County Mutual Ins. Co.

Viking Ins. Co. of Wisconsin

--Insurer financial strength rating        Downgrade    'BB-';

--Rating Watch                             Placed on Negative.


These ratings were initiated by Fitch as a service to users of Fitch
ratings.  These ratings are based primarily on public information.

CONTACT:  FITCH RATINGS
          Donald F. Thorpe, CPA, CFA
          Phone: 312-606-2353 (Chicago)
          Brian C. Schneider, CPA
          Phone: 312-606-2321 (Chicago)
          Greg Carter
          Phone: +44 (0)207 417 6327 (London)
          Andrew Murray
          Phone: +44 (0)207 417 4303 (London)
          James Jockle
          Phone: 212-908-0547 (Media, New York)


ROYAL & SUNALLIANCE: Group Operating Result Up Year-on-year
-----------------------------------------------------------
Royal & SunAlliance released this latest financial results recently.  These
are the highlights:

Strategic Review

(a) Focus on U.K., Scandinavia and Canada

(b) U.S. to be restructured, renewal rights transaction with
    Travelers for standard personal lines business and majority
    of our commercial lines business

(c) Commercial continuing to be weighted towards property;
    Personal concentrated on direct and selected intermediated

(d) Operational focus on excellence in underwriting and claims
    management and driving down expenses

(e) Performance management culture with clear accountabilities

(f) Independent review of our general insurance claims
    provisions by Tillinghast; subject to further validation and
    confirmation, may increase provisions by up to GBP800
    million in third quarter

(g) Independent review of major U.K. life exposures by
    Tillinghast Performance improvement delivery

(h) Delivered around GBP80 million of annualized expense savings
    against GBP160 million target; today increasing target to
    GBP270 million

(i) Successful disposals of Promina, RSUI and U.K. healthcare;
    HBOS household agreement to end

(j) Run rate NWP for 2003 of GBP6.7 billion, excluding
    Travelers, from GBP8.6 billion in 2002

(k) Revised target of 100% COR on average across the insurance
    cycle from previous 102% target

Solid results driven by strong performance in U.K.

(a) Underwriting result improved by GBP213 million, all areas
    except U.S. produced underwriting profit in Q2

(b) Combined ratio improved to 99.3%

(c) Risk based capital position improved to GBP300 million
    surplus

Rights Issue to raise GBP960 million

(a) Terms: 1 share for 1 existing share

(b) Price 70 pence per new share

(c) Fully underwritten

(d) Strengthens balance sheet to grow business for profit

(e) NWP estimate revised for 2005 to GBP6.4 billion from GBP5.5
    billion in 2004 following planned reduction of quota share
    in 2004 and growth opportunities in 2005

                                            6 Months 6 Months
                                               2003     2002
                                            (million) (million)
Revenue
General business net premiums written (after impact of quota share - page
23)                             GBP3,654  GBP4,268
Group operating result (based on longer term investment return  (LTIR)1
GBP351    GBP301
Group operating profit (based on LTIR) 1,2   GBP181    GBP54
Profit/(loss) for the period attributable to shareholders
                                             GBP141    GBP(275)

                                              30 June 31 Dec
                                                2003    2002
                                              (million) (million)
Balance sheet
Shareholders' funds                            GBP3,005 GBP3,043
Net asset value per share (adding back equalization provisions net of tax)
215p   217p
Tangible net asset value per share                 201p   199p
Interim dividend per share

To See Financial Statements:
http://bankrupt.com/misc/Royal&Sun_Financials.htm


ROYAL & SUNALLIANCE: To Pay Preferential Dividend October 1
-----------------------------------------------------------
7.375% Cumulative Irredeemable Preference Shares of GBP1 each

The preferential dividend at the rate of 3.6875% in respect of the six
months ended September 30, 2003 will be paid on October 1, 2003 in
accordance with the terms of issue to holders of preference shares on the
register at the close of business on September 12, 2003.  The ex-dividend
date will consequently be
September 10, 2003.

CONTACT:  ROYAL & SUNALLIANC
          Jackie Fox
          Phone: +44 (0)20 7569 6042


ROYAL & SUNALLIANCE: Sells Renewal Rights to Travelers Property
---------------------------------------------------------------
Royal & SunAlliance announced a definitive agreement to sell the renewal
rights for the majority of its U.S. businesses to Travelers Property
Casualty Corp. Business lines included in the sale are the company's
Standard & Preferred Personal Lines, Risk Management casualty & domestic
property, Marine and Middle Market Segments.  In 2002, net written premiums
for these businesses were US$1.5 billion.

The sale is part of a strategic shift by Royal & SunAlliance worldwide to
refocus operations on those markets and businesses where it has a leading
position, primarily the United Kingdom, Scandinavia and Canada.

Royal & SunAlliance USA business lines not included in the sale are Non
Standard Auto Personal Lines, DPIC, Grocers Insurance, Risk Management
global property, Asia Branch and SJA Agency.  The company is considering a
range of options with respect to these businesses, including further renewal
rights transactions and disposals.

"This transaction represents a good opportunity for our businesses and
customers, given Travelers' strong capital position and well-known service
orientation," said Steve Mulready, Royal & SunAlliance USA president and
CEO.  "Yet, this is a difficult announcement to make. Royal & SunAlliance
has a proud heritage in the U.S. insurance market -- but now our presence
will significantly change.

"Our restricted capital position has challenged us over the past two years.
Nevertheless, our employees stepped up to that challenge and brought our
company back to a level of success that makes this sale possible.  We now
have the opportunity to work with our counterparts at Travelers to ensure a
smooth transition for our customers and producers.  And we will continue to
support those businesses remaining with Royal & SunAlliance."

Royal & SunAlliance will retain current policies in force until renewal as
well as all liabilities associated with expired policies.  The company will
maintain a U.S. operation to support and service these policies and pursue
options for its remaining US businesses.  An unspecified number of positions
are also expected to transfer to Travelers.

Global Redirection

The actions announced by Royal & SunAlliance are the result of an extensive
business and capital review launched by Group Chief Executive Andy Haste in
May.  Worldwide, the company is creating a more focused business, with
commercial operations being weighted toward property coverages and personal
lines focusing on direct distribution and selected intermediated lines.

The company also announced a rights issue today as part of a process to
further strengthen its balance sheet.  "The components of a winning business
exist, but much more needs to be done for that potential to be realized,"
said Group Chief Executive Andy Haste.  "The rights issue we are announcing
will allow us to grow the profitable parts of our business identified by our
review.  We believe that, consistent with our overall strategy, the
restructuring of our U.S. operations will allow us to allocate capital and
management resources more effectively to our chosen markets."

Half-Year Results

Royal & Sun Alliance Insurance Group plc, the parent of Royal & SunAlliance
USA, today reported a six-month operating result of US$579 million, up from
US$496 million for the corresponding period in 2002 (351 million pounds and
301 million pounds, respectively, on a U.K. reporting basis with an
exchange-constant rate of 1.65).  Globally, the company reported net written
premiums of US$6,029 million (3,654 million pounds) and a combined operating
ratio of 99.3%, vs. US$7,042 million (4,268 million pounds) and 104.6% for
half-year 2002.

Royal & SunAlliance USA also improved its half-year combined ratio (the
ratio of expenses plus claims payments to premiums) to 107.4% from 111.2%
for the first six months of 2002.  The U.S. operation increased 2003 net
written premiums to US$1,639 million vs. US$1,524 million for the
corresponding period in 2002.

About Royal & SunAlliance USA

Royal & SunAlliance USA (www.royalsunalliance-usa.com) provides risk
management and insurance solutions through two divisions focusing on
property & casualty business and personal insurance.  The company is part of
London-based Royal & Sun Alliance Insurance Group plc (LSE: RSA; NYSE: RSA),
one of the world's leading multi-line insurers.


ROYAL & SUNALLIANCE: Fitch Ratings Down; Firm on Watch Negative
---------------------------------------------------------------
Fitch Ratings, the international rating agency, downgraded the insurer
financial strength of Royal & SunAlliance Insurance PLC's (RSAIP) to 'BBB'
from 'BBB+' and long-term rating to 'BB+' from 'BBB-' (BBB minus).  The
agency has also downgraded the junior subordinated debt issued by Royal &
SunAlliance Insurance Group Plc (RSAIG) to 'BB' from 'BB+'.  Fitch has
placed these ratings on Rating Watch Negative.

The rating actions reflect further deterioration in the U.S. business, with
a majority of the operations effectively being placed into run-off,
indications that GBP744 million of adverse reserve development is likely in
Q3, Fitch perceptions of reduced financial flexibility for the group and
ongoing execution risk associated with the new group strategy.  The agency
intends to resolve the Rating Watch following further analysis of today's
announcement and the third quarter results.

These rating actions follow the announcement Thursday of a rights issue of
GBP960 million, which Fitch expects will be used primarily to deal with Q3
reserving actions and, to a lesser extent, support business growth.

RSAIG reported that it has sold the renewal rights to a substantial part of
the U.S. operations and will incur GBP300 million restructuring charge in
relation to the restructuring of these businesses.  Fitch believes that
exiting a majority of the U.S. business is a reasonable move following very
poor performance, though the agency recognizes the inability to sell the
business at more favorable terms as an unfavorable development.  Royal & Sun
Alliance are now intending to focus on operations in the U.K., Scandinavia
and Canada and Fitch expects the company to cease writing significant
volumes of new business in the U.S. over the near to medium term.

Fitch believes that the rights issue and proposed actions on reserving go
some way towards addressing the agency's concerns on capital and reserving.
However, the agency also notes the challenges faced by the new management
team in completing the major group restructuring currently underway, and
that the substantial loss of diversity in the U.S. business over the past
several years has weakened the group's diversity and operating platform.
Further, the rights offering, while significantly aiding the balance sheet,
is highly dilutive and may impact near-term financial flexibility.

NOTE: These ratings were initiated by Fitch in response to investor demand.
These ratings are based primarily on public information.

CONTACT:  FITCH RATINGS
          Andrew Murray
          Phone: +44 (0)207 417 4303
          Greg Carter
          Phone: +44 (0)207 417 6327
          Geoff Mayne
          Phone: +44 (0)207 417 4378
          Donald Thorpe
          Phone: 312-606-2353


SOMERFIELD PLC: Kwik Save Underperformance Drags Down Results
-------------------------------------------------------------
Overall, the performance has been in line with management's expectations.

The detailed like-for-like sales were as follows:

               Quarter 1  First 9 weeks *   Second 7 weeks

Store fascia analysis

Somerfield (%)   +2.0         +1.1              +3.2

Kwik Save (%)    -1.5         +1.1              -4.7

Group(%)         +0.5         +1.1              -0.2


* as previously reported in the preliminary results announcement on 2nd July
2003

In the Somerfield fascia the increase in the number of refitted stores has
driven a strong improvement in like-for-like sales growth, also supported by
good weather.  To date, 120 stores have been refitted out of a total
Somerfield fascia estate of 591.  Margins have been stable.

In Kwik Save, cash sales have been relatively static over the last 4 months,
although like-for-like sales in the last 7 weeks have been volatile against
prior year comparatives.  From July to September 2002, Kwik Save sales
benefited from a strong promotional program, at a cost to margin, that
resulted in like-for-like sales of +4.4% in the second 8 weeks of quarter 1
last year.  The promotional program was not repeated this year, with a
correspondingly negative impact on like-for-like sales, but margins have
remained stable.

Investment in the new Kwik Save concept stores is at a very early stage,
with 14 concept stores completed at the year-end, so growth achieved from
the refitted stores has had a negligible impact on sales performance.  The
investment program is being accelerated so that by November a further 50 new
concept stores will be completed out of a total Kwik Save estate of 661
stores.

CONTACT:  CUBITT CONSULTING
          Phone: 0777 575 2400
          Fergus Wylie

          SOMERFIELD PLC
          Phone: 0117 935 7216
          John von Spreckelsen, Executive Chairman
          Steve Back, Group Finance Director


STEANS PRINTERS: Bank Appoints Joint Administrative Receivers
-------------------------------------------------------------
Registered number: 00993740

Trade classification: 222

Date of appointment of Joint Administrative Receivers: August 26, 2003

Name of appointer: National Westminster Bank plc

CONTACT:  Geoffrey Paul Rowley and Simon Peter Bower
          Joint Administrative Receivers
          (office holder No.s 8919 and 8338)
          RSM Robson Rhodes LLP
          186 City Road
          London EC1V 2NU


UNCHAINED GROWTH: Sets Unsecured Creditors' Meeting Sept. 16
------------------------------------------------------------
Notice is hereby given pursuant to Section 48(2) of the Insolvency Act 1986,
that a meeting of the unsecured creditors of Unchained Growth Pubs (I) Plc,
Unchained Growth Clubs (II) Plc, Unchained Growth Pubs (III) Plc, Unchained
Growth Pubs (IV) Plc, Unchained Growth Pubs (V) Plc, Unchained Growth Pubs
(VI) Plc will be held at HQ Conferencing Center, 33 James' Square, London
SW1Y on September 16, 2003 at 10.00 a.m. for the purpose of having laid
before it a copy of the report prepared by the Joint Administrative
Receivers under section 48 of the said Act. The meeting may, if it thinks
fit, will establish a creditors' committee to exercise the functions
conferred on it, by, or under the Act.

Creditors are only entitled to vote if:

(a) they have delivered to us at the offices of RSM Robson Rhodes LLP, 186
City Road, London EC1V 2NU, no later than 1200 hours on the business day
before the meeting, written details of the debts they claim to be due, and
the claim has been duly admitted under the provisions of the Insolvency
Rules 1986; and

(b) there had been lodged with us any proxy which the creditor intends to
use on his behalf.

Creditors may obtain a copy of the report, free of charge, on application to
the Joint Administrative Receivers at RSM Robson Rhodes LLP, 186 City Road,
London EC1V 2NU.

CONTACT:  Simon Peter Bower and Geoffrey Paul Rowley
          Joint Administrative Receivers


WESTPOINT STEVENS: Court Fixes De Minimis Asset Sale Procedures
---------------------------------------------------------------
At the WestPoint Stevens Debtors' request, the Court implements
expedited procedures on the sale and abandonment of de minimis
assets.  The Sale Procedures state that:

   (a) If the sale price of a De Minimis Asset is less than
       $250,000, the Debtors will be authorized to sell the
       property or asset without further notice or further Court
       order.

   (b) If the sale price of a De Minimis Asset is greater than
       $250,000 but less than $1,000,000:

       * The Debtors will give notice via e-mail, facsimile, or
         overnight delivery service of the proposed sale to the
         attorneys for the Committee, U.S. Trustee, the Debtors'
         lenders, and any parties-in-interest to the asset,
         including taxing authorities for the jurisdiction in
         which the sale is to occur.  The notice will specify
         the De Minimis Asset to be sold, the identity of the
         purchaser, and the sale price.

       * The Notice Parties will have five business days from
         the date the Sale Notice is sent to object to, or
         request additional time to evaluate, the proposed
         sale.  Any objection or request should be in writing
         and delivered to the counsel for the Debtors -- Weil,
         Gotshal & Manges LLP.  If any party timely provides a
         written request to the Debtors' counsel for additional
         time to evaluate the proposed sale, this party will
         have an additional five calendar days to object to the
         proposed transaction.

       * Absent a timely objection by a party to a proposed
         sale, the Debtors will be deemed authorized to sell the
         relevant De Minimis Asset.

       * If any party timely delivers an objection to the
         proposed sale, the Debtors and that party will use good
         faith efforts to resolve the objection.  If the
         objection is not withdrawn, the Debtors will have the
         option of:

         -- foregoing the consummation of the sale,
         -- modifying the terms of the proposed sale, or
         -- seeking the Court's authority to consummate the sale
            over the objection.

   (c) If the sale price of any asset or property is greater
       than $1,000,000, the Debtors will be required to file a
       motion with the Court, pursuant to Section 363 of the
       Bankruptcy Code and in accordance with Rule 6004 of the
       Federal Rules of Bankruptcy Procedure.

   (d) The Debtors will file with the Court reports of all sales
       made pursuant to the Sale Procedures during the quarter
       with a sale price greater than $25,000.  The reports will
       set forth a description of the De Minimis Asset sold, the
       name of the purchaser, and the sale price.

   (e) Notwithstanding anything to the contrary in the Sale
       Procedures, the Debtors will provide a Sale Notice to the
       Notice Parties for any sale of a De Minimis Asset to an
       "insider" of the Debtors, as such term is defined in
       Section 101(31) of the Bankruptcy Code.

When the sale of a De Minimis Asset is not feasible, the Debtors
will either abandon or donate the properties.  During prepetition period,
the Debtors deliberated if the abandonment or donation of the asset were
appropriate.  The Debtors also determined whether the sale of equipment were
in the best economic interests of ongoing business operations.  The Debtors
believe that this would not be the case if the equipment would add value to
the competitors.  Therefore, the Debtors opt to abandon or donate the
assets.

The Debtors maintain that continuing prepetition practices is
essential to their reorganization efforts and their long-term
business interests.  The Debtors will be reporting to the Court
every 30 days all De Minimis Assets that have a book value more
than $25,000.

De Minimis Asset sales made pursuant to the Sale Procedures would be limited
to those assets that have limited value to the
Debtors' estates and are no longer necessary for the operation of their
businesses.  The Debtors believe that the sale of De
Minimis Assets pursuant to the Sale Procedures constitutes the
most efficient and cost effective means of maximizing the value
to be realized.

In addition, the Debtors often face stringent time constraints in meeting
the closing deadlines established by interested
purchasers and in selling certain assets before there is a
significant decline in value.  The expedited Sale Procedures will permit the
Debtors to be responsive to the needs of interested purchasers, thereby
guarding against losing potential sales due to delay, while still providing
the Notice Parties meaningful opportunity to review De Minimis Asset sales
which exceed $250,000. (WestPoint Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


                            *********


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.  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
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