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

                           E U R O P E

             Monday, May 10, 2004, Vol. 5, No. 91

                            Headlines

F I N L A N D

METSO CORPORATION: Corners Additional EUR40 Mln Sun Paper Order


G E R M A N Y

BRENNTAG FINANCE: Proposed EUR190 Mln Notes Gets 'B' Rating
COGNIS GMBH: Revised Capital Structure Does Not Affect Ratings
DAIMLERCHRYSLER AG: First-quarter Operating Profit Up 10%
DAIMLERCHRYSLER AG: Supervisory Board Stands by Juergen Schrempp
KABA BENZING: BHA Group Adopts B-COMM Time and Labor System

KAMPS AG: Sells Cake Division to Audrey for Undisclosed Sum
MANNESMANN AG: Court Seeks More Proof Against Former Executives
MG TECHNOLOGIES: Lurgi Wins US$90 Mln Construction Deal in China


I T A L Y

ALITALIA SPA: Avoids Near-collapse with Appointment of New CEO
PARMALAT FINANZIARIA: Paper Trail Leads to Capitalia Office


N E T H E R L A N D S

HEAD N.V.: To Discuss First-quarter Results May 13
ISPAT INTERNATIONAL: Results Benefit from Tax Adjustments
KONINKLIJKE AHOLD: Posts 2003 Annual Report, June AGM Agenda
NUMICO N.V.: 1st-Qtr Not Indicative of Complete Turnaround


P O L A N D

BROK-STRZELEC: Recovery Plan Holds Despite Winter Slump


R U S S I A

FEREYN-3: Ulyanovsk Court Appoints Insolvency Manager
KAMA MANAGING: Deadline for Proofs of Claim June 16
KATAYSKY ELEVATOR: Insolvent Status Confirmed
KUNGUR-KCHLEBO: Bankruptcy Proceedings Begin
LEKAR: Declared Bankrupt

OMEGA: Under Bankruptcy Supervision Procedure
OVSU #239: Deadline for Proofs of Claim May 16
SHADRINSKY FERRO: Kurgan Court Commences Bankruptcy Proceedings
STANDARD: Insolvent Status Confirmed
TRANSFORMER TECHNOLOGIES: Declared Insolvent


S W I T Z E R L A N D

SWISS INTERNATIONAL: Losses Down 65% to CHF69 Million
SWISS INTERNATIONAL: Shareholders Approve Capital Reduction


U K R A I N E

ARTEMIDA-AZOV: Bankruptcy Supervision Procedure Begins
DEREVICHIVSKE:  Deadline for Proofs of Claim May 30
KARPATNAFTOMASH: Under Bankruptcy Supervision Procedure
KONSERVAGROINVEST: Bankruptcy Supervision Procedure Begins
NOVOGRAD-VOLINSKIJ: Zhitomir Court Appoints Insolvency Manager

RADEHIVSKIJ AGROSERVIS: Under Bankruptcy Supervision Procedure
TANA: Bankruptcy Supervision Procedure Begins
TEHNO: Chernivtsi Court Appoints Insolvency Manager


U N I T E D   K I N G D O M

BLAKE FINANCE: Appoints Liquidators from PricewaterhouseCoopers
BRANKSOME ASSOCIATES: Hires Rothman Pantall & Co. Liquidator
BRIDGEHURST LIMITED: Creditors Meeting Set May 17
BRITISH NUCLEAR: Launches Nuclear Clean-up Business
CAMINUS CONSULTANTS: Winding up Resolutions Passed

DEBENHAMS FINANCE: Assigned 'BB-' Rating on High Leverage
FALCON CONSTRUCTION: Calls in Liquidator
GENRIC LIMITED: Brings in Liquidator
GLENSHEE CHAIRLIFT: Appoints Receivers from KPMG
INTER-ALLIANCE GROUP: First-quarter Data Show Recovery on Track

INTERNATIONAL POWER: First-quarter Results Justify 'BB' Ratings
INTERTEK GROUP: Rating Upped on Improved Performance
MARCONI CORPORATION: Appoints New Non-executive Director
MCCOURT FINE: Wants Administrators Out
NEALE MORAN: Appoints Liquidator from Tait Walker

NIRVANA DEVELOPMENTS: Hires Tait Walker Liquidator
NORTHERN FOODS: Sells Emile Tissot for GBP3.5 Million
NTL INC.: Breaks even at Operating Level; Net Loss Down 63%
PAYROLL SYSTEMS: Hires Sanderlings Administrator
PERHOW 5:  Calls in Liquidator

SAGEVALE INVESTMENTS: Special Winding up Resolution Passed
SELECT RESIDENTIAL: In Administrative Receivership
SIXEIGHTFOUR LIMITED: Meeting of Creditors Set May 17
STONEYGATE 124: Calls in Liquidator
SURREY HOME: Names Liquidator from Piper Thompson

SVENSKA PALMER: Appoints PricewaterhouseCoopers Administrator
TELEWEST COMMUNICATIONS: Acting Chief Executive on Leave
THOMAS MUCKLE: Names Administrative Receiver
TIME HAIR: Appoints Rothman Pantall Liquidator
TRINITY MIRROR: Advertising Revenue Follows Upward Trend

WATFORD LEISURE: Cancels Deferred Shares, Share Premium Account
WILLINGTON PLC: Court Sanctions Scheme of Arrangement
ZAI NET: Hires Liquidator from Peter Elworthy & Moore


                            *********


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


METSO CORPORATION: Corners Additional EUR40 Mln Sun Paper Order
---------------------------------------------------------------
Metso Paper, together with Chinese joint venture company Valmet-
Xian, will supply a complete paper finishing line to Sun Paper
in Yanzhou, in the province of Shandong in China.  The finishing
line will be installed on Sun Paper's new fine paper machine,
which was ordered from Metso in January 2003.  The paper machine
will start up in August 2004 and the finishing line in August
2005.  The value of the order is close to EUR40 million.

The PM 19 finishing line will have a width of 4,870 mm at the
coater.  The design speed of the coating machine will be 1,500
m/min.  The line will include a re-reeler, a coating machine,
air dryers, a reel, a winder as well as a soft calender for
matte grades, which will be installed on-line with the coater.
Calendering of glossy grades will be performed with the off-line
calender, which has a design speed of 1,600 m/min.  The delivery
will also include a paper quality control and condition and
runnability monitoring systems from Metso Automation.  Sun Paper
is the largest privately owned paper company in China.  After
the start-up of the new finishing line in 2005, the company will
have a total capacity of over 1 million tons of board and paper.
Metso Paper has earlier delivered two board machines to Sun
Paper and a board machine to Dongguan Jianhui, which is partly
owned by Sun Paper.

Metso Corporation is a global supplier of process industry
machinery and systems, as well as know-how and aftermarket
services.  The Corporation's core businesses are fiber and paper
technology (Metso Paper), rock and mineral processing (Metso
Minerals) and automation and control technology (Metso
Automation).  In 2003, the net sales of Metso Corporation were
EUR4.3 billion.  It has approximately 26,000 employees in 50
countries.  Metso Corporation is listed on the Helsinki and New
York Stock Exchanges.

CONTACT:  METSO CORPORATION
          Teuvo Viitala,
          Senior Vice President, Sales, Paper Business Line
          Phone: +358 20 482 7302

          Ilkka Tuomenoksa,
          Vice President, Sales, Paper Business Line
          Phone: +358 20 482 7308


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


BRENNTAG FINANCE: Proposed EUR190 Mln Notes Gets 'B' Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
subordinated debt rating to the proposed EUR190 million senior
notes issued by Germany-based Brenntag Finance GmbH & Co. KG, a
finance vehicle for industrial and specialty chemicals
distributor Brenntag Holding GmbH & Co. KG (BB-Stable/--),
formerly named Brenntag AG.  The notes will be guaranteed on a
subordinated basis -- behind secured loans -- by Brenntag.

"The proceeds of the notes will be used to refinance Brenntag's
mezzanine credit facility with a principal amount of EUR173.5
million plus accrued interest and other fees," said Standard &
Poor's credit analyst Martin Amann.

The notes are rated two notches below the corporate credit
rating to reflect their subordinated position behind the group's
senior secured term loan facilities, as well as the revolving
and acquisition credit facility (totaling about EUR1,070
million) and the EUR47 million senior subordinated term loan D.

CONTACT:  STANDARD AND POORS RATING SERVICES
          Analysts E-mail Addresses
          martin_amann@standardandpoors.com
          ralf_kortuem@standardandpoors.com
          bob_ukiah@standardandpoors.com
          CorporateFinanceEurope@standardandpoors.com


COGNIS GMBH: Revised Capital Structure Does Not Affect Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings and outlook
on Germany-based chemicals manufacturer Cognis GmbH (BB-
/Stable/--) are unaffected by the final modifications to the
group's capital structure when compared with the initial
proposal in Cognis' recent bond offering memorandum.

Cognis will now issue only EUR345 million in high yield bonds
(versus EUR445 million as initially proposed), and make up for
the shortfall by raising EUR400 million of second secured notes
and loans (versus EUR300 million as initially proposed).  The
revised capital structure will leave the initial financial
leverage of the transaction unchanged, and the net impact on the
group's expected annual cash interest expense will be
negligible.

The high yield bond will pay a higher interest coupon than
expected (9.5% per year), whereas the pricing for the second
secured debt will be more favorable than previously indicated
(475 basis points over Euribor/Libor).

CONTACT:  STANDARD AND POORS RATING SERVICES
          Analyst E-mail Addresses
          ralf_kortuem@standardandpoors.com
          olivier_beroud@standardandpoors.com
          christine_hoarau@standardandpoors.com
          CorporateFinanceEurope@standardandpoors.com


DAIMLERCHRYSLER AG: First-quarter Operating Profit Up 10%
---------------------------------------------------------
DaimlerChrysler AG (stock-exchange abbreviation DCX) improved
its first-quarter 2004 operating profit from EUR1.4 billion to
EUR1.5 billion.  Operating Profit increased by 10%, despite the
negative impact on earnings from Toll Collect amounting to
EUR279 million and further restructuring expenses of EUR76
million at the Chrysler Group.

Net income amounted to EUR393 million in the first quarter (Q1
2003: EUR588 million).  Earnings per share amounted to EUR0.39
(Q1 2003: EUR0.58).  This was largely caused by a lower
financial result and higher taxes.

Unit sales up 3% in first quarter

Despite the continuation of generally difficult market
conditions, DaimlerChrysler sold 1.1 million vehicles worldwide
in the first quarter of this year, surpassing by 3% the figure
sold in the same period of last year.  The Group generated
first-quarter total revenues of EUR32.4 billion (Q1 2003:
EUR33.3 billion).  The main reason for the decrease was the
appreciation of the euro against the U.S. dollar.  After
adjusting for currency-translation effects, there was an
increase of 7%.

At the end of the first quarter of 2004, DaimlerChrysler's
global workforce totaled 362,907 people (Q1 2003: 367,962).
Compared with the end of the first quarter of the prior year the
reduction is primarily due to the sale of the MTU Aero Engines
business unit with some 8,400 employees.  The number of
employees in the shared sales organization of the Mercedes Car
Group and Mercedes-Benz commercial vehicles rose by 5% to
45,600.  The number of people employed by Services also
increased by 5%.  The Chrysler Group's workforce decreased by 3%
to 91,100.

Details of the divisions in Q1 2004

Unit sales by the Mercedes Car Group of 266,000 vehicles were 9%
lower than in the prior-year period due to weak demand in major
markets, the upcoming market launch of the new generation of the
C-Class and the lifecycle-related decrease in unit sales for the
M-Class.  However, as a result of a higher-value model-mix,
revenues decreased by only 6% to EUR11.7 billion.

Operating profit of EUR639 million was lower than in the first
quarter of 2003 (EUR688 million) as a result of the lower unit
sales, expenditures on the market launch of the SLK and the
smart forfour, as well as costs related to the preparation of
additional vehicles in the second product offensive.

The Mercedes-Benz brand sold 246,000 vehicles worldwide (Q1
2003: 266,900) in an extremely competitive market environment.
While unit sales decreased in Western Europe and the United
States, Mercedes-Benz made progress in important Asian markets.
During the first quarter, the new generation of the C-Class and
the new SLK Roadster were presented.  Both cars were given an
excellent reception.  Following the extremely positive response
to the "Vision CLS" study of a four-door coupe presented at the
Frankfurt International Motor Show in September 2003, the series
version of the CLS was shown at the International Geneva
Autoshow.  Deliveries to customers are to begin in this fall.

The smart brand further improved its position in a sharply
declining market segment.  Deliveries to dealers of 20,000
vehicles did not equal the level of the prior-year quarter (-
17%), which is primarily the effect of a structural change in
the sales organization.  However, retail sales rose by 11% to
24,500 units.  Orders received for the new, third model series
of the smart brand, the smart forfour, are developing
positively.

The Chrysler Group increased its first-quarter retail sales by
3% to 631,600 vehicles.  There was growth for, among others, the
new Chrysler Pacifica and Chrysler Crossfire models, which were
launched in 2003.  Shipments to dealers increased by 6% to
684,800 vehicles.  At the end of the first quarter, dealers'
vehicle inventories in the United States rose to 585,100
vehicles (end of Q1 2003: 535,800), equivalent to 77 days'
supply (end of Q1 2003: 69 days).  The increase in vehicle
inventories is a result of the build-up for the market launch of
the Chrysler Group's new products this year.

Revenues decreased by 5% to EUR12.1 billion, primarily
reflecting the appreciation of the euro against the U.S. dollar.
Measured in dollars, however, revenues increased by 11%.
Operating profit improved from EUR152 million to EUR298 million
as a result of the higher shipments, an improved model-mix and
further significant cost reductions. On the other hand, there
were negative effects on profits from the higher level of price
incentives in the United States compared with the first quarter
of 2003.  In addition, restructuring charges of EUR 76 million
were included in the operating profit of the first quarter of
2004, which primarily relate to further workforce reductions in
connection with planned divestitures.

In the period under review, production of six new Chrysler Group
models has started: the Chrysler 300C sedan, the Chrysler PT
Cruiser convertible, the Chrysler Town & Country and Dodge Grand
Caravan, the Dodge Magnum sport wagon, the Dodge Ram SRT-10
pickup truck and the Jeep Wrangler Unlimited.  Three more new
models will be launched during the balance of 2004: the Dodge
Dakota, the Jeep Grand Cherokee and the Chrysler Crossfire
roadster.

The Commercial Vehicles division significantly increased its
first-quarter unit sales by 18% to 125,800 vehicles.  Revenues
also rose sharply to EUR6.6 billion from EUR5.8 billion in the
first quarter of last year.  The higher unit sales and the
successful and continuous implementation of the efficiency-
enhancing programs in all of the division's business units led
to a significant increase in operating profit from EUR47 million
to EUR268 million.

The development of unit sales in the trucks business was very
positive in the first quarter of 2004. Unit sales by the Trucks
NAFTA business unit (Freightliner, Sterling, Thomas Built Buses)
rose by 38% to 36,700 vehicles.  The Trucks Europe/South America
(Mercedes-Benz) business unit increased its unit sales by 23% to
26,800 vehicles.  The Mercedes-Benz Vans business unit increased
its unit sales to 54,800 vehicles (Q1 2003: 52,400).  Unit sales
by the DaimlerChrysler Buses and Coaches business unit of 6,700
vehicles were 24% higher than in the prior-year period.  The
Mitsubishi Fuso Truck and Bus Corporation (MFTBC), which was
accounted for the period in the Commercial Vehicles division
according to the equity method, in line with our former holding
of 43%, increased its unit sales in the period of January
through March 2004 by 21% to 56,200 trucks and buses.

In January 2004, DaimlerChrysler agreed with its partners of the
Mitsubishi Group to increase its stake in MFTBC by a further
22%.  Following the approval of the antitrust authorities in
March 2004, DaimlerChrysler now holds 65% of the shares in MFTBC
and has fully consolidated the company as of March 31.

The Services division achieved a first-quarter operating profit
of EUR221 million (Q1 2003: EUR419 million).  This includes a
charge on earnings of EUR279 million resulting from the new
contractual agreement of Toll Collect with the Federal Republic
of Germany of February 29, 2004 and the associated adjustments
of the estimates for future expenses.  In the financial services
business, operating profit surpassed the high level of the
previous year's quarter due to a continuation of good margins
and favorable refinancing conditions.

The DaimlerChrysler Bank made further progress in its core
business of leasing and financing and in the deposit/investment
business during the first quarter of this year.  Within one
year, the DaimlerChrysler Bank's customer base expanded by more
than 25% to 870,000 customers.

The segment of Other Activities posted an operating profit of
EUR134 million (Q1 2003: EUR72 million).  The MTU Aero Engines
GmbH business unit was sold on December 31, 2003 to Kohlberg,
Kravis and Roberts & Co. Ltd., a financial investor.  Since
January 1, 2004, the Off-Highway business unit, which was
previously a part of the Commercial Vehicles division, has also
been included in the Other Activities segment.  The figures for
the prior year have been adjusted for comparability.  This
change reflects the fact that the business model of the off-
highway activities has more in common with the capital equipment
production than with the volume series production of the on-
highway activities.

The first-quarter revenues of EUR307 million generated by
DaimlerChrysler Off-Highway were 7% below the level of the
prior-year quarter.  Incoming orders of EUR510 million were
close to the figure reported for Q1 2003.  The European
Aeronautic Defense and Space Company (EADS) will publish its
figures for the first quarter of 2004 on May 12, 2004.

In the financial year ending March 31, 2004, Mitsubishi Motors
Corporation (MMC) sold 1,526,900 vehicles (-3%).  In an
extraordinary meeting held on April 22, 2004, the Board of
Management and the Supervisory Board of DaimlerChrysler decided
not to participate in the capital increase planned by MMC, and
thus to cease providing MMC with financial support.
DaimlerChrysler, however, will continue to be a shareholder in
MMC.  The alliance projects previously agreed upon with MMC will
be continued in accordance with the relevant contracts and in
agreement with all partners.

Outlook for full-year 2004

As the year progresses, gradual improvements in economic
conditions should also have a positive effect on the
international demand for automobiles.  For the United States,
Western Europe and Japan, little growth in sales of passenger
cars is expected.  DaimlerChrysler sees signs of continuing
improvements in the North American truck market, and also
expects slightly higher sales of trucks in Europe compared with
last year.

For full-year 2004, the Mercedes Car Group expects that unit
sales, revenues and earnings will be similar to the high levels
of 2003.  It assumes that the decrease in unit sales during the
first quarter can be offset over the rest of the year by the
model change for the SLK and the A-Class, the new generation of
the C-Class, and the market launch of the smart forfour and the
CLS.

The Chrysler Group expects its markets to remain highly
competitive in the year 2004, with a continuation of high price
incentives in the United States.  Despite the expenditure for
the launch of nine new products, the Chrysler Group is expected
to end the year with considerable positive earnings as a result
of the efficiency improvements that it has achieved.

The Commercial Vehicles division will profit in 2004 from the
continuous improvement of its internal processes, economies of
scale and its attractive product range.  For the full year,
Commercial Vehicles anticipates a further improvement in its
operating profit.

The Services division should benefit from the stable underlying
business trend and continued favorable refinancing conditions in
2004.  DaimlerChrysler Services anticipates another good result
for the full year, which might however be lower than in the
prior year due to the charge from Toll Collect.

EADS assumes stable revenues and an increase in its
profitability.  Its contribution to the group's operating profit
should therefore be higher than in the previous year.  The
effects on earnings of the Group's investment in Mitsubishi
Motors could not be conclusively assessed at this point in time.
However, the impact will be significantly lower than if
DaimlerChrysler had participated in a capital increase for MMC.


DAIMLERCHRYSLER AG: Supervisory Board Stands by Juergen Schrempp
----------------------------------------------------------------
Following its meeting on April 29, the Supervisory Board of
DaimlerChrysler AG (NYSE: DCX) issued this statement:

"In light of current media reports, the Supervisory Board felt
compelled once more to reaffirm during [its] meeting that it
supports the strategic direction of the company to the full
extent.  At the same time, the Supervisory Board also
underscores its complete support for the Chairman of the Board,
Professor Juergen E. Schrempp, and his colleagues in the Board
of Management."


KABA BENZING: BHA Group Adopts B-COMM Time and Labor System
-----------------------------------------------------------
Kaba Benzing, a subsidiary of US$800 million Kaba Holding AG and
worldwide leader in time and labor management systems, announced
that Kansas City, Mo.-based BHA will begin implementing Kaba
Benzing's B-COMM time and attendance and labor reporting
software to simplify reporting of their employees.

B-COMM collects, processes and passes critical data, furnishing
accurate labor information and complete labor accounting
methods, to BHA's enterprise time and labor application.  It
supports labor distribution and material movement tracking for
exempt and non-exempt personnel.  The integrated solution
extends enterprise solutions directly to production, payroll and
financial departments by incorporating real-time data collection
from remote geographical locations.

"We chose Kaba Benzing for our time clock system for three
reasons," states Gary Cheimis, Vice President of Information
Technology, BHA.  "The first was the good reputation of the
firm.  The second was the superior performance of their system
compared to their competitors.  The third reason was the variety
of input devices supported."

Using the Kaba Benzing integration, BHA will be able to capture
employee time and labor information from all employees in the
organization, using both Kaba Benzing B-Net terminals and data
collection devices from other companies.  B-COMM allows
employees to enter time from remote locations regardless of the
industry or geographical location.  This data is collected and
made available for multiple uses.

"We look forward to our partnership with BHA," emphasizes John
Edwards, president and general manager of Kaba Benzing America.
"They're exactly the type of company that needs to install a
time and labor management system that collects clean, accurate
data once and effectively distributes that data to their
enterprise system."

About BHA Group Holdings

BHA Group Holdings, Inc. (Nasdaq:BHAG) is a world leader in
innovative filtration technology.  Its two principal operating
subsidiaries are BHA Group, Inc., the world's largest supplier
of replacement parts and services for industrial air pollution
control systems, and BHA Technologies, Inc., which manufactures
and markets expanded polytetrafluoroethylene (ePTFE) membrane
products for use in a variety of industrial and consumer
products.

About Kaba Benzing

Located in Miami Lakes, Fla., Kaba Benzing is a worldwide leader
in time and labor management systems.  From touch screen access
and shop floor terminals to complex labor costing algorithms and
reporting for SAP R/3 and other leading enterprise systems, Kaba
Benzing offers an array of time and attendance and production
data collection solutions.  Kaba Benzing can be contacted in
North America at 305-819-4000 and on the Internet at
http://www.kaba-benzing-usa.com. In Europe and Asia, the
company may be contacted by its Web site http://www.kaba-
benzing.com.

CONTACT:  KABA BENZING
          Ellen DiPaolo
          Phone: 305-819-4000, x361
          E-mail: edipaolo@kbm.kaba.com

          BRIGHAM SCULLY
          Tom Brigham
          Phone: 818-716-9021
          E-mail: tbrigham@brighamscully.com


KAMPS AG: Sells Cake Division to Audrey for Undisclosed Sum
-----------------------------------------------------------
Kamps AG, Europe's leading bread and bakery goods producer, has
taken another step in the transformation project it launched
last autumn and the associated restructuring measures.  The Dan
Cake Group with production sites in Thule, Give (Denmark) und
Chrzanow (Poland) has been successfully sold with effect from
June 1, 2004.  The production site in Thule is to be taken over
by Audrey Cake GmbH, Soest.  Audrey Cake GmbH is owned by the
Trockels family, which is already a successful market player
with Kuchenmeister.

Dan Cake A/S and Wendeln Polonia were bought by Kuchenmeister
GmbH with the participation of a Danish investor group.  Dan
Cake will in future operate independently on the market.  Kamps
obtained advice from Bankhaus Metzler for this transaction.

CONTACT:  KAMPS AG
          Investor Relations
          Christoph Koch
          Phone: +49/211/530634-432
          Fax:   +49/211/530634-779
          E-mail: christoph.koch@kamps.de


MANNESMANN AG: Court Seeks More Proof Against Former Executives
---------------------------------------------------------------
The court presiding over the trial of six former executives
accused of receiving questionable bonuses in relation to the
takeover of Mannesmann in 2000 ordered the prosecution to
produce more evidence, according to the Financial Times.

Prosecutors had asked Judge Brigitte Koppenhoffer of the
Dusseldorf court to reverse its interim verdict in late March.
That verdict favored a motion deemed to lead to the acquittal of
the defendants, who include Josef Ackermann, Deutsche Bank's
chief executive; and Klaus Esser, the former Mannesmann boss.
According to prosecutors, these accused allegedly received
nearly EUR600 million (US$70.2 million) in questionable
executive bonuses after the EUR178 billion takeover of the
telecommunications group by Vodafone.

On Thursday, the court rejected irrelevant applications saying
"it had reached its opinion on lots of points," the Financial
Times said.  This suggests the trial might be nearing its end,
the paper added.


MG TECHNOLOGIES: Lurgi Wins US$90 Mln Construction Deal in China
----------------------------------------------------------------
Lurgi AG, a subsidiary of Frankfurt-based mg technologies ag,
signed a contract on Thursday to build a methanol plant in the
Chinese province of Hainan.  The order is worth approximately
US$90 million and has been awarded by CNOOC-Kingboard Chemical
Ltd., a joint venture between the Chinese National Offshore Oil
Company, the Hong Kong-based Kingboard Chemical Holdings and the
China National Technical Import and Export Corporation.  The
plant will use Lurgi technology to produce around 2,000 tons of
methanol per day from natural gas.  The contract was formally
signed at the EU-CHINA BUSINESS FORUM in Brussels, which was
also attended by the Chinese Prime Minister Wen Jiabao.

"Lurgi's strategy of focusing on growth markets and drawing on
proprietary technologies is laying the foundations for a return
to sustained profitability.  This contract represents a major
step forward in the consolidation and extension of our market
and technological leadership in the international methanol
business", according to Klaus Moll, mg's Executive Director for
Industrial Plant Engineering.

More than 60% of global methanol production is now based on
Lurgi technology.  Global production of methanol is currently
around 30 million tons per year and is growing rapidly.  mg
technologies ag is an international technology group that
concentrates on specialty mechanical engineering -- focusing on
process engineering and components -- and plant engineering.
The company generated sales of roughly EUR6.4 billion excluding
discontinued operations in 2003.  At the end of 2003 the company
employed around 29,000 people.  Mg is a market and technology
leader in 90% of its businesses.

CONTACT:  MG TECHNOLOGIES AG
          Communications
          Phone: +49 (0) 69 71199 241
          Web site:  http://www.mg-technologies.com


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I T A L Y
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ALITALIA SPA: Avoids Near-collapse with Appointment of New CEO
--------------------------------------------------------------
A four-day talk between the government and Alitalia trade unions
culminated on Thursday with the signing of an agreement to expel
the company's current head.

Italy, which owns 62% of the airline, appointed Giancarlo Cimoli
to replace both Marco Zanichelli, who was appointed chief
executive in February, and Chairman Giuseppe Bonomi.  Mr. Cimoli
is the ex-CEO of state-owned Italian railway company Ferrovie
dello Stato.

In exchange for these appointments, workers pledged not to
repeat the strike launched more than a week ago that cost the
airline between EUR30 million to EUR40 million.  That
demonstration was meant to protest Mr. Zanichelli's plan to trim
3,300 jobs from the company's workforce.

Alitalia reported losses of more than EUR500 million last year,
and at least EUR200 million in the first four months of this
year.  Recently it said cash and liquid assets on hand had
dwindled to EUR200 million, a position that led many industry
observers to believe the carrier was on the way to certain
demise.

According to Bloomberg News, by naming a new manager, the
government is postponing a decision on Alitalia's fate until
after European parliamentary elections in June.  Deputy Prime
Minister Gianfranco Fini said at a press conference in Rome it
would take several weeks before a new strategy can be discussed.

Italy, whose membership in the European Union prevents it from
offering extensive state aid to Alitalia, earlier wants to lure
private investors in the airline.  Labor unions who had
previously opposed this idea, are now understood to have
relented.


PARMALAT FINANZIARIA: Paper Trail Leads to Capitalia Office
-----------------------------------------------------------
Authorities on Thursday searched the headquarters of Banca di
Roma, owned by the Capitalia group, in relation to the
indictment of its head Cesare Geronzi in the bankruptcy of
Parmalat.

According to Business Day, a source said the search was ordered
by Parma's public prosecutor and concerns the sale of the dairy
group Eurolat by Cirio to Parmalat in 1999.  Parmalat founder,
Calisto Tanzi, had said during an interrogation in December that
Mr. Geronzi pressured him into buying Eurolat, a Rome-based
dairy company, from Cirio Finanziaria S.p.A. at inflated prices
in 1999.  The transaction enabled Cirio to reduce its debt
burden and for Capitalia to lower its exposure to Cirio, a
source said, according to a previous report of TCR-Europe.

Mr. Geronzi, a banker with a host of political clout, is also
linked to investigations in the bankruptcy of Cirio.  He is also
accused of presenting false information to the Bank of Italy
concerning Capitalia's loan book.  Mr. Tanzi sits on the board
of Capitalia, Parmalat's major creditor.  In late December,
Capitalia pegged its loans and other exposure to Parmalat
operating companies at about EUR393 million.


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


HEAD N.V.: To Discuss First-quarter Results May 13
--------------------------------------------------
Head Chairman and CEO Johan Eliasch will host a conference call
on Thursday May 13 2004 at 3:00 p.m. London time  (10:00 New
York).  He will be joined by Ralf Bernhart, Chief Financial
Officer.  They will discuss Head's results for the three-month
period ending 31 March 2004.

A presentation, which will be discussed during the conference
call, will be available on the Investor Relations section of our
Web site, (http://www.head.com)prior to the conference call on
the 13th of May 2004.

You can join the conference call using the following phone
numbers:

Country Phone Number

U.K.: 0800 073 8912
Europe: +44 1452 568 060
U.S.A: 1866 224 3295

Please note that there will not be an audio link on the web
site.

A transcript of the conference call will be posted to the
investor relations section of our Web site.

A Replay Service is also available until May 20th 2004, the dial
in numbers are as follows:

U.K.: 0800 073 8912
Europe: +44 1452 568 060
U.S.A: 1866 224 3295
Access Code 1344256#

About Head
Head N.V. is a leading global manufacturer and marketer of
premium sports equipment.

Head N.V.'s ordinary shares are listed on the New York Stock
Exchange (HED) and the Vienna Stock Exchange (HEAD).

Our business is organized into four divisions: Winter Sports,
Racquet Sports, Diving and Licensing.  We sell products under
the Head (tennis, squash and racquetball racquets, alpine skis
and ski boots, snowboards, bindings and boots), Penn (tennis and
racquetball balls), Tyrolia (ski bindings), and Mares/Dacor
(diving equipment) brands.

We hold leading positions in all of our product markets and our
products are endorsed by some of the world's top athletes
including Andre Agassi, Marat Safin, Gustavo Kuerten, Hannes
Trinkl and Maria Riesch.

For more information, please visit our Web site:
http://www.head.com.

CONTACT:  HEAD N.V.
          Clare Vincent, Investor Relations
          Phone: +44 207 499 7800
          Fax:   +44 207 491 7725
          E-mail: htmcv@aol.com

          Ralf Bernhart, Chief Financial Officer
          Phone: +43 1 70 179 354
          Fax: +43 1 707 8940


ISPAT INTERNATIONAL: Results Benefit from Tax Adjustments
---------------------------------------------------------
Ispat International N.V., (NYSE: IST US; AEX: IST NA), reported
a net income of $102 million or 85 cents per share for the first
quarter of 2004 as compared to net income of $51 million or 41
cents per share for the first quarter of 2003.  The current
quarter's results include the benefit of an after tax gain of
$23 million at Ispat Inland resulting from a reassessment of
property taxes for the years 2002 and 2003.  Excluding this
benefit, the first quarter net income would have been $79
million or 65 cents per share.

Consolidated sales and operating income for the first quarter
were $1.8 billion and $158 million, respectively, as compared to
$1.3 billion and $75 million, respectively, for the first
quarter of 2003.  Total steel shipments increased by 10% to 4.2
million tons.

Debt at the end of the first quarter was $2.3 billion.  Capital
expenditure for the first quarter of 2004 was $21 million.  At
March 31, 2004 the Company's consolidated cash, cash equivalents
and short-term investments totaled $104 million.  The Company
also had approximately $383 million available to it under
various un-drawn lines of credit and bank credit
arrangements[1].

Ispat International N.V. is one of the largest and most global
steel producers, with major steel-making operations in the
United States, Canada, Mexico, Trinidad, Germany and France.
The Company produces a broad range of flat and long products
sold mainly in the North American Free Trade Agreement (NAFTA)
participating countries and the European Union (EU) countries.
Ispat International N.V. is a member of the LNM Group.

                            *   *   *

In March, Standard & Poor's Ratings Services affirmed its
ratings on Dutch-registered steel consortium Ispat International
N.V., including its 'B-' long-term corporate credit rating on
the group.  The outlook is stable.

At the same time, Standard & Poor's affirmed its 'B-' ratings on
wholly owned subsidiary Ispat Sidbec Inc. and removed them from
CreditWatch, where they were placed on October 6, 2003.  The
outlook is stable.

The rating actions follow Ispat Sidbec's progress in amending
its bank debt maturity profile, and an improved market outlook
for steel.


KONINKLIJKE AHOLD: Posts 2003 Annual Report, June AGM Agenda
------------------------------------------------------------
Ahold announced the publication of its 2003 Annual Report in
Dutch and English.  The report is available in print and online
at http://www.ahold.com. The company also intends to file its
Annual Report on Form 20-F with the United States Securities and
Exchange Commission.

Ahold also published the details of the agenda Annual General
Meeting of Shareholders.  The AGM will be held on June 2, 2004
at the Nederlands Congrescentrum in The Hague, The Netherlands,
and will start at 1:30 p.m. CET.  The agenda includes the
adoption of the 2003 financial statements and the proposed
nominations of Rene Dahan and Karen de Segundo to the
Supervisory Board, effective June 2, 2004.

Rene Dahan was born on August 26, 1941 and is a Dutch national.
He was an Executive Vice President and Director of Exxon Mobil
Corporation and is currently member of the Supervisory Boards of
Aegon N.V., VNU N.V. and TPG NV.  He is a permanent resident of
the United States.

Karen de Segundo was born on December 12, 1946 and is a Dutch
national. She is currently Chief Executive of Shell
International Renewables.  She is a member of the Advisory
Boards of Biofuels and Shell Hydrogen.

The nominees will occupy two of the seats becoming vacant as a
consequence of the retirement of Michael Perry, Bob Tobin and
Roland Fahlin as of June 2, 2004.  The company would like to
express its appreciation for their services to Ahold.

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


NUMICO N.V.: 1st-Qtr Not Indicative of Complete Turnaround
----------------------------------------------------------
Royal Numico N.V. remains cautiously optimistic about its future
even after reporting first quarter results that suggest its
recent divestments had paid off.

According to the Financial Times, management remains non-
committal on passing any verdict on the strategic decision to
focus on two sectors -- baby food and clinical nutrition.  Chief
Financial Officer Jean-Marc Huet says: "Although the first
quarter is encouraging, we want this to be a building year."

The company's net profit in the first quarter tripled to EUR48
million from only EUR16 million last year.  For the full year,
its expects a higher net profit on the back of revenue growth of
6-8 percent, according to the paper.  Apart from the recent
marketing drive in western Europe, which drove sales up 2%, the
Dutch food maker also credits the 56% decline in operating cost
for the earnings jump.

Since selling GNC -- a U.S. chain of vitamin stores -- for
US$750 million in October, the company has sold three baby food
factories and plans to divest or close another two by the end of
the third quarter.  These series of divestments are behind the
substantial decline in operating cost, which dropped to EUR218
million in the first quarter, the paper said.

Meanwhile, CEO Jan Bennink says these solid results show the
company need not seek merger or acquisition opportunities to
drive growth.  "There was some confusion about what we wanted to
do [following the GNC sale]... [These results prove] we can
deliver without acquisitions," the Financial Times quoted him as
saying.


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


BROK-STRZELEC: Recovery Plan Holds Despite Winter Slump
-------------------------------------------------------
Brok-Strzelec President Adam Brodowski is confident the
company's path to recovery is on track despite the slump brought
in by the winter season.

Brok-Strzelec's sales fell to PLN19.7 million in the first
quarter of the year, and its losses increased threefold to
PLN12.95 million, according to Warsaw Business Journal.  But Mr.
Brodowski said that since the winter is finally over the plans
of the company to recover from their sales and losses is still
set as planned.

By the end of March, the firm has raised PLNl1.15 million in
bonds.  The funds that were raised are used in their working
capital to improve better production.

Just last month the plan has paid off.  The firm has increased
their sales to 40%.  Brodowski added that they would hit their
target of PLN4.6 million net profit this year on revenues of
PLN162 million.


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


FEREYN-3: Ulyanovsk Court Appoints Insolvency Manager
-----------------------------------------------------
The Arbitration Court of Ulyanovsk region commenced bankruptcy
supervision procedure on LLC Fereyn-3.  The case is docketed as
A72-1772/04-19/15-B.  Mr. A. Sobitnyuk has been appointed
temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 433513, Russia, Ulyanovsk
region, Dimitrovgrad, Post User Box 968, Phone/fax: (8422)44-29-
63 .  A hearing will take place on June 3, 2004, 11:00 a.m. at
the Arbitration Court of Ulyanovsk region.

CONTACT:  FEREYN-3
          433751, Russia, Ulyanovsk region, Lesnoye Matyunino

          Mr. A. Sobitnyuk, temporary insolvency manager
          433513, Russia, Ulyanovsk region, Dimitrovgrad,
          Post User Box 968
          Phone/Fax: (8422) 44 29 63


KAMA MANAGING: Deadline for Proofs of Claim June 16
---------------------------------------------------
The Arbitration Court of Perm region declared LLC Kama Managing
Shipping Company insolvent and introduced bankruptcy
proceedings.  The case is docketed as A50-29589/2003-B.  Mr. S.
Volkov (Moscow) has been appointed insolvency manager.
Creditors have until June 16, 2004 to submit their proofs of
claim to the insolvency manager at: 614068, Russia, Perm, Post
User Box 6952.

CONTACT:  KAMA MANAGING SHIPPING COMPANY
          614000, Russia, Perm, Ordzhonikidze str.11B

          Mr. S. Volkov, insolvency manager
          614068, Russia, Perm, Post User Box 6952


KATAYSKY ELEVATOR: Insolvent Status Confirmed
---------------------------------------------
The Arbitration Court of Kurgan region declared OJSC Kataysky
Elevator insolvent and introduced bankruptcy proceedings.  The
case is docketed as A34-155/02-C11.  Mr. D. Kostromin (Moscow)
has been appointed insolvency manager.  Creditors have until
June 16, 2004 to submit their proofs of claim to the insolvency
manager at: Russia, Ekaterinburg, 8th March str.5.

CONTACT:  KATAYSKY ELEVATOR
          Russia, Kurgan region, Kataysk, Lopatina str.1

          Mr. D. Kostromin, insolvency manager
          Russia, Ekaterinburg, 8-th March str.5


KUNGUR-KCHLEBO: Bankruptcy Proceedings Begin
--------------------------------------------
The Arbitration Court of Perm region bread-baking complex OJSC
Kungur-Kchlebo-Product insolvent and introduced bankruptcy
proceedings.  The case is docketed as A50-4013/2004-B.  Mr. S.
Volkov (Moscow) has been appointed insolvency manager.
Creditors have until June 16, 2004 to submit their proofs of
claim to insolvency manager at: 614068, Russia, Perm, Post User
Box 6952.

CONTACT:  KUNGUR-KCHLEBO-PRODUCT
          617470, Russia, Kungur, Stepan Razin str.34

          Mr. S. Volkov, insolvency manager
          614068, Russia, Perm, Post User Box 6952


LEKAR: Declared Bankrupt
------------------------
The Arbitration Court of Sverdlovsk region declared LLC the
insurance company Lekar insolvent and introduced bankruptcy
proceedings.  The case is docketed as A60-5289/2003-C2.  Mr. G.
Vaynshteyn has been appointed insolvency manager.  Creditors are
asked to submit their proofs of claim to the insolvency manager
at: 620014, Russia, Ekaterinburg, Kchimikov str.3.

CONTACT:  LEKAR
          620026, Russia, Ekaterinburg, S. Morozova str.190

          Mr. G. Vaynshteyn, insolvency manager
          620014, Russia, Ekaterinburg, Kchimikov str.3


OMEGA: Under Bankruptcy Supervision Procedure
---------------------------------------------
The Arbitration Court of Sverdlovsk region commenced bankruptcy
supervision procedure on CJSC the industrial-financial company
Omega.  The case is docketed as A60-5687/04-C1.  Mr. V.
Stepanchenko has been appointed temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 620135, Russia, Ekaterinburg,
Post User Box 267.  A hearing will take place on June 08, 2004,
2:30 p.m. at the Arbitration Court of Sverdlovsk region.

CONTACT:  OMEGA
          624800, Russia, Sverdlovsk region, Suhoy Log,
          Stroiteley prosp.7

          Mr. V. Stepanchenko, temporary insolvency manager
          620135, Russia, Ekaterinburg, Post User Box 267


OVSU #239: Deadline for Proofs of Claim May 16
----------------------------------------------
The Arbitration Court of Voronezh region declared Voronezh
federal state unitary enterprise building corporation OVSU #239
of federal agency of the governmental communication and the
information insolvent and introduced bankruptcy proceedings.
The case is docketed as A14-730-04/6/7b.  Mr. A. Petrin has been
appointed insolvency manager.  Creditors have until May 16, 2004
to submit their proofs of claim to the insolvency manager at:
394068, Russia, Voronezh, Begovaya str.10, build.2, 79.

CONTACT:  OVSU #239
          394042, Russia, Voronezh, Minskaya str.2

          Mr. A. Petrin, insolvency manager
          394068, Russia, Voronezh, Begovaya str.10,
          build.2, 79


SHADRINSKY FERRO: Kurgan Court Commences Bankruptcy Proceedings
---------------------------------------------------------------
The Arbitration Court of Kurgan region declared OJSC Shadrinsky
Ferro-Concrete Products Factory insolvent and introduced
bankruptcy proceedings.  The case is docketed as A34-5616/03-
C27-6.  Mr. S. Baranovsky has been appointed insolvency manager.
Creditors have until June 16, 2004 to submit their proofs of
claim to the insolvency manager at: 640018, Russia, Kurgan, Post
User Box 3843.

CONTACT:  SHADRINSKY FERRO-CONCRETE PRODUCTS FACTORY
          641800, Russia, Kurgan region, Shadrinsk,
          Kurgansky Tract 5

          Mr. S. Baranovsky, insolvency manager
          640018, Russia, Kurgan, Post User Box 3843


STANDARD: Insolvent Status Confirmed
------------------------------------
The Arbitration Court of Moscow declared CJSC Standard insolvent
and introduced bankruptcy proceedings.  The case is docketed as
A40-8810/04-38-8B.  Mr. R. Kravzov has been appointed insolvency
manager.  Creditors have until May 16, 2004 to submit their
proofs of claim to the insolvency manager at: 107589, Russia,
Moscow, Post User Box 4.

CONTACT:  STANDARD
          105066, Russia, Moscow, Olchovskaya str.45, build 1,
          office 4

          Mr. R. Kravzov, temporary insolvency manager
          127323, Russia, Moscow, Post User Box 46


TRANSFORMER TECHNOLOGIES: Declared Insolvent
--------------------------------------------
The Arbitration Court of Chelyabinsk region declared CJSC
Transformer Technologies insolvent and introduced bankruptcy
proceedings.  The case is docketed as A76-12681/03-36.  Mr. A.
Naydyenov has been appointed insolvency manager.  Creditors have
until May 26, 2004 to submit their proofs of claim to the
insolvency manager at: 454091, Russia, Chelyabinsk region,
Svobody str.76-2.

CONTACT:  TRANSFORMER TECHNOLOGIES
          Russia, Chelyabinsk, Entuziastov str.11B

          Mr. A. Naydyenov, insolvency manager
          454091, Russia, Chelyabinsk region, Svobody str.76-2


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


SWISS INTERNATIONAL: Losses Down 65% to CHF69 Million
-----------------------------------------------------
Swiss International Air Lines (Group) generated consolidated
income from operating activities of CHF846 million in the first
three months of the 2004 business year and posted earnings
before interest and taxes (EBIT) of -CHF69 million for the
period.  SWISS thus effected a reduction of some 65% in its
first-quarter operating deficit compared to the -CHF199 million
posted for the prior-year period.  Liquidity amounted to CHF419
million on March 31, 2004, above plans.  SWISS' consistent
pursuit of its corporate restructuring activities is having an
increasingly positive impact on its future business performance
as well, as the full benefit of these endeavors will be felt in
the course of 2004 and 2005.  The first-quarter results -- which
were achieved in what are traditionally the weakest three months
of the year in revenue terms -- also reflect a general recovery
throughout the air transport market.

SWISS reported earnings before interest and taxes (EBIT) of
minus CHF69 million for the first three months of 2004 on total
income from operating activities of CHF846 million.  The
earnings result is a 65.3% improvement on the minus CHF199
million EBIT recorded for the prior-year period.  After the
financial result, income taxes and group-related items, SWISS
posted a net loss for the period of CHF78 million.  By
comparison, the group sustained a CHF200 million net less for
the first quarter of 2003.

Liquidity of CHF419 million

The consolidated balance sheet showed cash and cash equivalents
of CHF414 million and fixed-term deposits amounting to CHF5
million on March 31, 2004.  Cash and cash equivalents declined
CHF89 million in the course of the first quarter.  Cash flow
from operating activities amounted to -CHF5 million, compared to
-CHF197 million for the same period a year ago.

The encouraging operating cash flow performance was achieved
through a combination of active cash management and more
favorable business trends.  Since no Airbus A340s to be operated
under finance leases were delivered in the period -- the eighth
aircraft to join the fleet was not acquired until April 28 --
the net cash used in investing activities was limited to CHF40
million.  Much of this amount stems from various investments
relating to the introduction of the new Airbus A340 to the SWISS
aircraft fleet.  These included interior installations such as
the inflight entertainment system, rotable spares, other
technical components and consumables.

Liquidity was further enhanced by the CHF50 million drawn on
March 16 from the credit facility provided by Barclays Bank.
Despite the Barclays Bank credit, however, the repayment of loan
amounts due and interest payments resulted in a CHF45 million
net cash outflow from financing activities for the period.

As already communicated in the media release on its 2003 annual
results, SWISS is confident of holding cash and cash equivalents
of more than CHF250 million at what is expected to be its lowest
liquidity point in the second quarter of 2004.  The company's
active cash management again contributed positively to the
development of liquidity in the first quarter of 2004.

At the same time, SWISS is continuing its negotiations with the
major Swiss banks and other international financial institutions
to secure additional liquidity that would cushion it from
unforeseen events and enable it to take optimum advantage of new
business opportunities.  SWISS cannot, however, currently put a
date on when such negotiations are likely to be concluded.

Shareholders' equity

After due incorporation of the balance sheet losses carried
forward, group shareholders' equity amounted to CHF937 million
on March 31, 2004, giving a balance sheet equity ratio of 25.0%.

The shareholders attending the Annual General Meeting on May 6
will be asked to vote on a proposal to reduce the nominal value
of the SWISS share from CHF32 to CHF18.  If approved, the
capital reduction would reduce the share capital of Swiss
International Air Lines Ltd. by CHF737 million from CHF1, 685
million to CHF948 million.  The loss carried forward shown on
the balance sheet would be reduced by this amount.

The proposed capital reduction is a means prescribed in the
Swiss Code of Obligations for restructuring a corporate balance
sheet.  It has no effect on the company's intrinsic value and,
in particular, leaves shareholders' equity unchanged.  The
outcome of the vote on this issue will be announced in a
separate media release following the Annual General Meeting, and
will also be posted on the http://www.swiss.comWeb site.

Traffic volumes and load factors

Figures provided by the Association of European Airlines (AEA)
suggest that the main markets largely recovered from the crises
experienced last year during the first three months of 2004 in
both traffic volume and load factor terms.  In its report of
April 19, the AEA notes a 4.4% increase in the capacity offered
by European carriers and a 7.3% increase in traffic volumes.  As
a result, the first quarter of 2004 saw load factors rise 1.9
percentage points to 71.7%.

Mirroring this industry-wide recovery, SWISS achieved a 3.7-
percentage-point year-on-year increase in its first-quarter seat
load factor, which amounted to 71.6%.  European services
performed better: a 5.9-percentage-point improvement brought
seat load factor to 55.5%.  The increase is largely attributable
to network modifications and to the "SWISS in Europe" concept.
First-quarter seat load factor on intercontinental services rose
to 78.3%, an increase of 1.1 percentage points.

Progress on SWISS' strategic realignment

SWISS continues to work purposefully towards its corporate
turnaround objectives.  And the consistent application of the
restructuring measures resolved is now having a growing positive
impact on business results:

Load factor on SWISS flights rose 3.7 percentage points to 71.6%
in the first three months of 2004.  Total revenue per available
seat-kilometer (RASK) for the first quarter was 1.8% above last
year's figure.

Costs were reduced substantially over the same period.  The
SWISS workforce was further reduced in the first quarter from
the 8,072 full-time positions at the end of 2003 to 7,554 at the
end of March 2004.  The new level is 3,052 positions fewer than
at the end of 2002.  With the further pursuit of the current
restructuring measures and the support of natural staff
turnover, personnel numbers will reach their targeted size in
the course of 2004.

Many of the renegotiations embarked on with suppliers were also
successfully concluded.  In some areas, the complex negotiations
involved took more time than expected.  As a result, not all the
action packages agreed have yet been put into effect.  Savings
were also achieved by enhancing business processes and modifying
the distribution model.  Costs per available seat-kilometer
(CASK) for the first quarter of 2004 were 7.3% below their
equivalent for the same period last year.

Changes in top management

Andre Dose, President & CEO of Swiss International Air Lines
Ltd., placed his position at the disposal of the Board of
Directors on March 10.  Chairman of the Board Pieter Bouw
subsequently assumed the additional function of company CEO on
an interim basis.

The SWISS Board of Directors appointed Christoph Franz (44) as
the company's new President & CEO when it met on April 19.  The
appointment followed a rigorous selection procedure that had
seen six candidates invited to a final round of intensive
discussions.  The Board's Nomination Committee subsequently
unanimously proposed to the full Board of Directors the
appointment of Franz as the company's new CEO.  Franz, a German
national who holds a doctorate in business administration, spent
nine years with Deutsche Bahn AG, the German national railway
company, where he held various executive positions culminating
in his appointment as a Member of Executive Management and Head
of Passenger Transport.  Prior to this, he was with Lufthansa
from 1990 to 1994, where his duties included membership of the
team that planned the German carrier's own corporate turnaround.
Christoph Franz joined SWISS on May 1 and will assume his new
CEO function on July 1.


SWISS INTERNATIONAL: Shareholders Approve Capital Reduction
-----------------------------------------------------------
SWISS informed its shareholders about the company's 2003
business year at its Annual General Meeting Thursday.  The
shareholders approved all the proposals submitted by the Board
of Directors.  These included a reduction in the company's share
capital, the election of a new Board member and the discharging
of the Board and Executive Management from their liability for
the conduct of business in 2003.

The Annual General Meeting approved a reduction in the company's
share capital, which will be effected to exclude the possibility
of net shareholders' equity falling below 50% of share capital.
The capital reduction will lower the nominal value of the SWISS
share from CHF32 to CHF18.

Election of a new Board member

The General Meeting also elected Zurich-based attorney Dr. Rolf
P. Jetzer to the Board of Directors. Dr. Jetzer, 54, succeeds
Urs Rohner, who relinquished his seat on the Board with effect
from this year's Meeting. Dr. Jetzer will serve for an initial
three-year period.

Board members Pieter Bouw, Claudio Generali, Jacques Aigrain,
Andre Kudelski, Michael Pieper and Peter Siegenthaler, who were
elected to serve for a three-year term in December 2001, were
confirmed in office until the next Ordinary General Meeting in
2005.  The terms of office of Board members Walter Bosch and Jan
Audun Reinas extend until the 2006 Ordinary General Meeting.

This year's Annual General Meeting was held in the "Messehalle"
in Basel, and was attended by more than 600 shareholders.


=============
U K R A I N E
=============


ARTEMIDA-AZOV: Bankruptcy Supervision Procedure Begins
------------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
supervision procedure on LLC Artemida-Azov (code EDRPOU
25600416) in March.  The case is docketed as 15/63B.
Arbitral manager Mr. Pilipenko S. (license number AA 249759)
has been appointed temporary insolvency manager.

Creditors have until May 30, 2004 to submit their proofs of
claim to the:

(a) Temporary insolvency manager at: 87500, Ukraine, Donetsk
    region, Mariupol, Metalurgi avenue, 25-81

(b) ECONOMIC COURT OF DONETSK REGION: 83048, Ukraine,
    Donetsk, Artema str., 157

Artemida-Azov holds account number, 260079802043,at
JSCB Ukrsotsbank, Mariupol branch, MFO 334185.

CONTACT:  ARTEMIDA-AZOV
          30455, Hmelnitski region, Shepetivsk district, village
          Velika Shkarivka

          Mr. Pilipenko S., temporary insolvency manager
          87500, Ukraine, Donetsk region, Mariupol,
          Metalurgi Avenue, 25-81

     ECONOMIC COURT OF DONETSK REGION
     83048, Ukraine, Donetsk, Artema str., 157


DEREVICHIVSKE:  Deadline for Proofs of Claim May 30
---------------------------------------------------
The Economic Court of Zhitomir region commenced bankruptcy
supervision procedure on agricultural LLC Derevichivske(code
EDRPOU 03744764).  The case is docketed as 7/26 B.
Arbitral manager Mr. Malishonok Mikola (license number 565
approved April 12, 2001) has been appointed temporary insolvency
manager.   Creditors have until May 30, 2004 to submit their
proofs of claim to the ECONOMIC COURT OF ZHITOMIR REGION: 10014,
Ukraine, Zhitomir, Berdichivska str., 25.

Derevichivske maintains account number, 260073117, at Zhitomir
Regional Branch JSPPB Aval, Lubarsk branch, MFO 311528.

CONTACT:  DEREVICHIVSKE
          13000, Ukraine, Zhitomir region, Lubarskij district,
          Veliki Derevichi

     ECONOMIC COURT OF ZHITOMIR REGION
     10014, Ukraine, Zhitomir, Berdichivska str., 25


KARPATNAFTOMASH: Under Bankruptcy Supervision Procedure
-------------------------------------------------------
The Economic Court of Ivano-Frankivsk region commenced
bankruptcy supervision procedure on OJSC Karpatnaftomash (code
EDRPOU 00136700) in April.  The case is docketed as B-6/68.
Arbitral manager Mr. Lototskij Svyatoslav (license number AA
047835 approved October 17, 2001) has been appointed temporary
insolvency manager.

Creditors have until May 30, 2004 to submit their proofs of
claim to:

(a) Temporary Insolvency Manager at: Ukraine, Ivano-Frankivsk
    region, Shevchenko str., 9

(b) ECONOMIC COURT OF IVANO-FRANKIVSK REGION: 76000, Ukraine,
    Ivano-Frankivsk, Grunvaldska str.,11

Karpatnaftomash maintains account number, 26001301670162, at
Prominvestbank, Kalush branch, MFO 336387.


CONTACT:  KARPATNAFTOMASH
          77309, Ukraine, Ivano-Frankivsk region, Kalush,
          Ivano-Frankivska str., 24

          Mr. Lototskij Svyatoslav, Temporary Insolvency Manager
          Ukraine, Ivano-Frankivsk region, Shevchenko str., 9

     ECONOMIC COURT OF IVANO-FRANKIVSK REGION
     76000, Ukraine, Ivano-Frankivsk, Grunvaldska str.,11


KONSERVAGROINVEST: Bankruptcy Supervision Procedure Begins
----------------------------------------------------------
The Economic Court of Cherkassy region commenced bankruptcy
supervision procedure on OJSC Konservagroinvest (code EDRPOU
30769310) in March.  The case is docketed as 01/979.
Arbitral manager Mrs. Borejko Olena (license number AA 047607
approved July 25, 2001) has been appointed temporary insolvency
manager.  Creditors have until May 30, 2004 to submit their
proofs of claim.

Konservagroinvest maintains account number, 26005002719002, at
Ukrinbank, Cherkassy branch, MFO 354314.

CONTACT:  KONSERVAGROINVEST
          18030, Ukraine, Cherkassy, Chigirinska str., 13

          Mrs. Borejko Olena, Temporary Insolvency Manager
          18000, Ukraine, Cherkassy, Homenko str., 22/63
          Phone: (0472) 63-68-98

          ECONOMIC COURT OF CHERCASSY REGION
          18005, Ukraine, Cherkassy, Shevchenko avenue, 307


NOVOGRAD-VOLINSKIJ: Zhitomir Court Appoints Insolvency Manager
--------------------------------------------------------------
The Economic Court of Zhitomir region commenced bankruptcy
supervision procedure on OJSC Novograd-Volinskij Rajagrohim
(code EDRPOU 05488549).  The case is docketed as 4/43 B.
Mr. Dunayevski U. (license number AA 250042 approved November
19, 2001) has been appointed temporary insolvency manager.
Creditors have until May 30, 2004 to submit their proofs of
claim to the ECONOMIC COURT OF ZHITOMIR REGION: 10000, Ukraine,
Zhitomir, Putyatinski square, 3/65.

Novograd-Volinskij Rajagrohim holds account number,
26009301935472, at Prominvestbank, Novograd-Volinski branch, MFO
311711.

CONTACT:  NOVOGRAD-VOLINSKIJ RAJAGROHIM
          Ukraine, Zhitomir region, Novograd-Volinskij,
          Korostenska str., 160

          ECONOMIC COURT OF ZHITOMIR REGION
          10000, Ukraine, Zhitomir, Putyatinski square, 3/65


RADEHIVSKIJ AGROSERVIS: Under Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Economic Court of Lviv region commenced bankruptcy
supervision procedure on OJSC Radehivskij Agroservis (code
EDRPOU 05489916).  The case is docketed as 6/92-8/52.
Arbitral manager Mr. Hutkij Andrij (license number AA 485265
approved April 14, 2003) has been appointed temporary insolvency
manager.

Creditors have until May 30, 2004 to submit their proofs of
claim to:

(a) Temporary Insolvency Manager at: Ukraine, Lviv, Dnisterska
     str., 2/48

(b) ECONOMIC COURT OF LVIV REGION: 79010, Ukraine, Lviv,
    Lichakivska str., 81

Radehivskij Agroservis maintains account number, 260097022, at
CB Dnister, Radehiv branch, MFO 325569.

CONTACT:  RADEHIVSKIJ AGROSERVIS
          Judicial address: 80200, Ukraine, Lviv region,
          Radehiv, Mishuga str., 18

          Mr. Hutkij Andrij, temporary insolvency manager
          Ukraine, Lviv, Dnisterska str., 2/48

          ECONOMIC COURT OF LVIV REGION
     79010, Ukraine, Lviv, Lichakivska str., 81


TANA: Bankruptcy Supervision Procedure Begins
---------------------------------------------
The Economic Court of Zaporizhya region commenced bankruptcy
supervision procedure on LLC Tana (code EDRPOU 25486334).  The
case is docketed as 25/42.  Mr. Zinchenko Yuri (license number
AA 047661 approved July 20, 2001) has been appointed temporary
insolvency manager.

Creditors have until May 30, 2004 to submit their proofs of
claim to:

(a) Temporary insolvency manager at: 70200, Ukraine, Zaporizhya
    region, Gulyajpole, Spartakivska str., 8

(b) ECONOMIC COURT OF ZAPORIZHYA REGION: 69001, Ukraine,
    Zaporizhya, Tulenin str., 21

Tana holds account number, 26000005049001, at JSB Munitsipalnij,
MFO 313537.

CONTACT:  TANA
          Juriditial address: 69095, Ukraine, Zaporizhya,
          Peremogi str., 63
          Actual location: 69000, Ukraine, Zaporizhya, Lenin


TEHNO: Chernivtsi Court Appoints Insolvency Manager
---------------------------------------------------
The Economic Court of Chernivtsi region commenced bankruptcy
supervision procedure on LLC company, Tehno in March.  The case
is docketed as 10/56/B.  Mr. Strelnikov Valerij has been
appointed temporary insolvency manager.   Creditors have until
May 30, 2004 to submit their proofs of claim to: 58032, Ukraine,
Chernivtsi, Golovna str., 246-b; Phone: (03722) 4-49-39.

Tehno holds account number, 26002000017001 at OJSC CB Nadra,
Chernivtsi branch, MFO 356505.

CONTACT:  TEHNO
          58032, Ukraine, Chernivtsi, Golovna str., 246-b

          ECONOMIC COURT OF CHERNIVTSI REGION
          Ukraine, Chernivtsi, O. Kobilyanska str., 14


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


BLAKE FINANCE: Appoints Liquidators from PricewaterhouseCoopers
---------------------------------------------------------------
At an Extraordinary General Meeting of Blake Finance Limited on
April 28, 2004, the Special and Ordinary Resolutions to wind up
the Company were passed.  Richard Setchim and Jonathan Sisson of
PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT have
been appointed Joint Liquidators of the Company for the purpose
of such winding-up.

CONTACT:  PRICEWATERHOUSECOOPERS LLP
          Plumtree Court
          London EC4A 4HT
          Contact:
          Richard Setchim, Liquidator
          Jonathan Sisson, Liquidator
          Phone: [44] (20) 7583 5000
          Fax:   [44] (20) 7822 4652
          Web site: http://www.pwcglobal.com


BRANKSOME ASSOCIATES: Hires Rothman Pantall & Co. Liquidator
------------------------------------------------------------
At an Extraordinary General Meeting of the Branksome Associates
Limited Company on April 13, 2004 held at 43 High Street,
Wimbourne, Dorset BH21 1HR, the subjoined Special Resolution to
wind up the Company was passed.  Robert Smailes of Rothman
Pantall & Co, Clareville House, 26-27 Oxendon Street, London
SW1Y 4EP has been appointed Liquidator for the purpose of such
winding-up.

CONTACT:  ROTHMAN PANTALL & CO
          Clareville House,
          26-27 Oxendon Street,
          London SW1Y 4EP
          Contact:
          Robert Smailes, Liquidator


BRIDGEHURST LIMITED: Creditors Meeting Set May 17
-------------------------------------------------
There will be a Creditors Meeting of the Bridgehurst Limited
Company on May 17, 2004 at 10:30 a.m.  It will be held at the
offices of Smith & Williamson Limited, Bartlett House, 9-12
Basinghall Street, London EC2V 5NS.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Smith & Williamson Limited, Bartlett House, 9-12
Basinghall Street, London EC2V 5NS not later than 12:00 noon,
May 16, 2004.

CONTACT:  SMITH & WILLIAMSON LIMITED
          Bartlett House
          9-12 Basinghall Street,
          London Ec2V 5NS
          Contact:
          Stephen Cork, Joint Administrator
          Anthony Murphy, Joint Administrator


BRITISH NUCLEAR: Launches Nuclear Clean-up Business
---------------------------------------------------
British Nuclear Fuels Plc (BNFL) launched a new daughter-company
called the British Nuclear Group, according to Bellona
Foundation (http://www.bellona.no). The Business is intended to
apply for lucrative decommissioning contracts at different kinds
of British nuclear sites.

In April next year the British Government intends to establish a
new Nuclear Decommissioning Authority (NDA) in the United
Kingdom (U.K.).  The body will provide overall management and
direction for clean up at nuclear sites in the U.K.  More than
40 nuclear reactors have been in operation in the U.K., and it
is the future decommissioning and clean-up work at these sites
the NDA will be in charge of.

The NDA is not intended carrying out the clean-up work itself.
Instead it will place contracts on different site licensees.  By
establishing the British Nuclear Group, BNFL is positioning
itself to apply for some of these future clean-up contracts.

More than fifty years of British nuclear program has left behind
vast amounts of contaminated buildings, and radioactive waste.
Now the mess has to be cleaned up.  The cost of the nuclear
legacy is currently estimated at some GBP48 billion in total.
This figure represents the best estimates based on current
knowledge and technology.  In practice however, there are
uncertainties about what needs to be done to deal with
particular installations or waste.  Initial estimates put the
NDA's operating cost in the range of GBP25-30 million per year.

The clean-up program is expected to take more than 100 years to
complete.

                            *   *   *

Reprocessing plant Sellafield, located at the western coast of
England, is the largest source to radioactive contamination of
the northeast Atlantic ocean.


CAMINUS CONSULTANTS: Winding up Resolutions Passed
--------------------------------------------------
Name of Companies: Caminus Consultants, Caminus Energy Limited

At an Extraordinary General Meeting of the Members of these
Companies on April 27, 2004 held at Salisbury House, Station
Road, Cambridge CB1 2LA, the Special, Ordinary and Extraordinary
Resolutions to wind up the Companies were passed.  Shay Lettice
of Peters Elworthy & Moore has been appointed as Liquidator of
these Companies.

CONTACT:  PETERS ELWORTHY & MOORE
          Salisbury House
          Station Road
          Cambridge CB1 2LA
          Phone:  +44 (0) 1223 728222
          E-mail:  pem@pem.co.uk
          Web Site: http://www.pem.co.uk
          Contact:
          Shay Lettice, Liquidator


DEBENHAMS FINANCE: Assigned 'BB-' Rating on High Leverage
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Debenhams Finance Holdings PLC, the
U.K.-based department store operator.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'B' debt rating
to the proposed GBP325 million ($583 million) contractually
subordinated senior notes to be issued by Debenhams.

"The group's ratings reflect its leveraged financial profile,
partially offset by its significant free cash flow generation,
well-established position, and consistent operating performance
in the competitive U.K. department store sector," said Standard
& Poor's credit analyst Hugues De La Presle.

Following its leveraged buy-out in December 2003 and the pending
one-off payout of a GBP130 million shareholder distribution,
Debenhams has substantial leverage.  Debt to earnings before
interest, taxes, depreciation, amortization, and rents (EBITDAR)
is projected to be greater than 4.0x for the 12 months to August
2004, while proforma EBITDAR cover of interest plus rents is
expected to be about 1.8x.

Debenhams' free operating cash flow has been substantial, at
GBP62 million per year on average over the last three years,
despite sizeable capital expenditure of GBP130 million per year
on average over the same period.  It will benefit in fiscal 2004
and fiscal 2005 from substantial exceptional positive working
capital swings.  These stem from management's aggressive
renegotiation of creditor terms and reduction in inventories.
By the end of February 2004, the improvement in working capital
was GBP80 million.

"We expect Debenhams to maintain its strong operating
performance," added Mr. De La Presle.  "This, combined with
substantial projected positive swings in working capital in 2004
and 2005, should enable it, despite the significant increase in
interest charges, gradually to reduce debt and improve debt
measures."

CONTACT:  STANDARD AND POORS RATING SERVICES
          Analyst E-mail Addresses
          hugues_delapresle@standardandpoors.com
          sunita_kara@standardandpoors.com
          CorporateFinanceEurope@standardandpoors.com


FALCON CONSTRUCTION: Calls in Liquidator
----------------------------------------
Name of Companies:
Falcon Construction Services (GE) Limited
Falcon Construction Services (JC) Limited
Falcon Construction Services (JH) Limited

At an Extraordinary General Meeting of these Companies on April
23, 2004 held at Queen Anne House, 4 & 6 New Street, Leicester
LE1 5NR, the Special, Ordinary and Extraordinary Resolutions to
wind up the Companies were passed.   Jane Lindsey Gandon of 2
Preston Park Avenue, Brighton BN1 6HJ has been appointed
Liquidator for these Companies.

CONTACT:  Jane Lindsey Gandon, Liquidator
          2 Preston Park Avenue
          Brighton BN1 6HJ


GENRIC LIMITED: Brings in Liquidator
------------------------------------
At an Extraordinary General Meeting of the Genric Limited
Company on April 23, 2004 held at Parkhurst Hill, Torrington
Chambers, 58 North Road East, Plymouth PL4 6AJ, the Special and
Ordinary Resolutions to wind up the Company were passed.
Richard Neville of Neville Hatton has been appointed Liquidator
for the purpose of such winding-up.

CONTACT:  NEVILLE HATTON
          Richard Neville, Liquidator


GLENSHEE CHAIRLIFT: Appoints Receivers from KPMG
------------------------------------------------
Blair Nimmo and Neil Armour, of KPMG Corporate Recovery, were
appointed Joint Receivers of Glenshee Chairlift Company Limited.

The Company operates the Glenshee and Glencoe ski resorts, as
well as the Glenisla golf course, near Alyth.  In total the
company has 23 permanent employees, supplemented by seasonal
workers as required.

Glenshee has operated in its current structure since 1961, and
provides facilities for up to 6,000 skiers and boarders per day.
Glencoe, which was the first commercial Scottish ski area,
provides skiing over an area of 200 hectares, and includes the
UK's steepest vertical descent, the Fly Paper.  In the 2000/01
it had 37,000 skier days.

The Glenisla golf course was opened in April 1998 to wide
acclaim.  The facilities include an 18-hole course, a 10 bay
driving range, car parking and a clubhouse.  Membership is
currently over 300, and in 2003 nearly 20,000 rounds were
played.  Included are three residential properties which have
recently been separately marketed, and in which significant
interest has been expressed.  It is believed that the course
complex has further development potential.

Due to recent relatively mild winters, Glencoe and Glenshee had
combined losses of approximately GBP1 million in 2002/2003 and
2003/2004.  The resorts were put up for sale in February 2004,
and whilst discussions with a number of interested parties have
been progressing, and are expected to continue with the
receivers, the prospective sales have not been able to be
completed sufficiently quickly to enable the company to
accommodate it's seasonally poor cash flows.  On being advised
this week of further delays in one of the sale negotiations, the
directors resolved that they had no alternative but to request
the appointment of receivers.

Joint Receiver, Blair Nimmo, head of KPMG Corporate Recovery in
Scotland, said:

"It is unfortunate that, despite the directors having committed
substantial efforts over recent months and involving the use of
professional advisers, the company has been unable to complete
the sales of any of its business units sufficiently quickly.

"Nonetheless, helped by the protection that is afforded to
businesses in difficulty by the receivership process, we are
hopeful of being able to complete sales of the businesses as
going concerns, preserving employment and economic activity in
the local area.

"We would ask any party with an interest in acquiring any of the
businesses and/or assets to contact the Joint Receivers at KPMG,
37 Albyn Place, Aberdeen (Phone: 01224 591000) as a matter of
urgency."

CONTACT:  KPMG
          Wilma Littlejohn,
          KPMG Corporate Communications
          Phone:  0131 527 6818
          Mobile: 07789 922521
          E-mail: wilma.littlejohn@kpmg.co.uk
          Web site: http://www.kpmg.co.uk


INTER-ALLIANCE GROUP: First-quarter Data Show Recovery on Track
---------------------------------------------------------------
Inter-Alliance Group PLC announced that its merger discussions
with Berkeley Berry Birch plc had been discontinued.  Whilst the
Directors are obviously disappointed that these discussions were
not concluded successfully, they are pleased to report that
during that time Inter-Alliance has continued along its pathway
towards profitability through an outstanding set of new business
results in the first quarter.

Unaudited results for the year ended 31 December 2003

The Group's annual report and accounts for 2003 are in the final
stage of the audit process and are expected to be released
shortly.

Those accounts will confirm the significant progress the Group
has made in 2003.  Gross revenue for 2003 was up by 22.5% over
the previous year at GBP63.6 million (2002:GBP51.9 million).  In
addition, the annualized increase in productivity over that
period was a very pleasing 25.9% over the equivalent figure for
2002 (GBP55,000 over GBP43,700).

This progress has been supported by the growth in the number of
the Group's U.K. based Advisers.  At the end of 2003, the Group
had 1,208 -- an 11% increase over January 2002.

The profit and loss account shows a gross profit of GBP16.0
million (2002: GBP10.2 million) and an operating loss before
exceptional items of GBP20.0 million (2002: GBP11.0 million).

However, the significant improvement in the second half
operating loss before exceptionals to GBP5.3 million (H1 03:
GBP14.7 million) indicates the progress being made.  As part of
the restructuring exercise the Group also incurred a charge of
GBP13 million for exceptional costs of which GBP6 million
relates to the fundamental restructuring and GBP7 million to
write downs and provisions for onerous leases, contracts and
balances arising as a consequence of the restructuring.  The
majority of these latter provisions were not cash costs.  Normal
operating costs for the year before the above but including
those normal operating costs assumed from former associate
companies amounted to GBP36 million of which GBP21 million
occurred in the first half and GBP15 million in the second half.
Cash or cash equivalents at the year-end were GBP10.4 million.

2003 was a year of major cost saving initiatives across the
Inter-Alliance Group.  These significant cost saving actions
resulted in a halving of the staff numbers to 298 at the present
time and in the number of operating premises from 59 to 26.
These steps reduced the annualized overhead run rate to
approximately GBP24 million at the year-end.  Further cost
reductions amounting to approximately GBP2 million scheduled for
implementation around the year-end were deferred so as not to
prejudice benefits that were expected to arise from the merger.

This radical restructuring has produced a company in which far
fewer people now provide a much more cost effective and improved
service for our Advisers.

On the revenue side of the business, the successful launch and
development of PMH Alliance allowed Advisers (both established
and newly recruited to PMH Alliance) to place their non-
regulated business through the Company.  This move has proven to
be very successful with the monthly revenue via PMH Alliance
running at approximately GBP1 million at the year-end.  Building
on the success of this strategy, the Group has developed a
comprehensive whole of market proposition to take full advantage
of the forthcoming opportunities to bring mortgage and general
insurance business within the Group.

With the proven track record for restructuring the business,
removing significant cost and introducing new distribution
strategies, the Directors are confident that the Group is
increasingly well placed to maximize the opportunities emerging
from technological and regulatory change.  At the heart of the
strategy the Group intends to give all of its Advisers the
reason and the opportunity to place all their business via the
Group.

Current trading

The Directors are pleased with first quarter trading results.
The number of U.K. based Advisers has increased and the volumes
of both submitted and issued business are up by 23% on the
comparable period last year.  The Directors are convinced these
results are a direct consequence of the actions taken to
restructure and introduce new revenue lines to the Group.

Whilst certain identified cost saving plans were deferred others
have recently been implemented including the rationalization of
our support center facilities to a more cost effective footing.
The Directors are confident that they will reduce the Group's
annualized cost base to below GBP20 million by the end of the
year.  The deferral of certain cost saving actions and the
investment in the development of the mortgage proposition will
delay the Group's achievement of positive cash flow and monthly
profitability until the final quarter of this year, with the
full impact of those changes coming through in 2005.

Obviously the announcement that merger talks with Berkeley Berry
Birch plc have been discontinued is disappointing however,
despite their belief in the merger, the Directors have had
alternative plans in place to deal with the eventuality that the
merger could not proceed.  The plans include revising the
Group's corporate structure, aimed at achieving a more efficient
framework for meeting technical regulatory requirements.  The
Directors are also committed to continuing to drive the range of
strategic initiatives outlined above.  These plans, which
include the continuation of further cost saving initiatives, the
comprehensive mortgage strategy and the drive towards even
greater technological support to Advisers may require additional
funding to secure their successful implementation.

The Directors believe that the significant progress made by
Inter-Alliance Group is as a direct result of the exceptional
hard work and achievement demonstrated by the Group's advisers
and staff.

CONTACT:  INTER ALLIANCE GROUP PLC
          Keith Carby
          Chairman & Chief Executive
          Phone: 01285 886700


INTERNATIONAL POWER: First-quarter Results Justify 'BB' Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings and outlook
on U.K.-based global power developer International Power PLC
(BB/Stable/--) were not affected by the group's announcement of
financial results for the first quarter of 2004, which were in
line with expectations.

International Power continues to suffer from low electricity
prices in the U.S., but this was offset by relatively stable
profits in Europe and Australia on the back of contracted
capacity.  Furthermore, contracted capacity is expected to
increase in the Middle East in the future.

As a result of the weak financial performance in the U.S., the
group is currently discussing a potential restructuring of the
non-recourse debt of its U.S. subsidiary American National
Power.  This is because a large portion of American National
Power's $1,375 million limited recourse bank loan (of which $880
million is outstanding) is due for repayment in June 2006.

CONTACT:  STANDARD AND POORS RATING SERVICES
          Analyst E-mail Addresses
          magdalena_richardson@standardandpoors.com
          jan_plantagie@standardandpoors.com
          InfrastructureFinance@standardandpoors.com


INTERTEK GROUP: Rating Upped on Improved Performance
----------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on U.K.-based service company Intertek
Group PLC to 'BBB-' from 'BB+.'  The outlook is stable.

"The upgrade reflects the continued improvement in
Intertek's financial profile, which is expected to remain
investment-grade, as well as the group's continued stable
operating performance," said Standard & Poor's credit analyst
Alf Stenqvist.

Intertek's financial profile has continued to strengthen since
the IPO in 2002 as a result of stable cash flows, lower debt
levels, and lower interest payments.  The company's operating
income in 2003 remained at the previous year's level, as growing
profits in Labtest offset weaker results in other divisions and
negative effects from the weakening U.S. dollar.  Standard &
Poor's expects that external growth will continue to be financed
by internally generated cash flows.

At the end of 2003, Intertek had net interest-bearing debt of
GBP134 million (excluding material operating lease commitments).

CONTACT:  STANDARD AND POORS RATING SERVICES
          Analyst E-mail Addresses
          alf_stenqvist@standardandpoors.com
          peter_tuving@standardandpoors.com
          vanessa_brathwaite@standardandpoors.com
          CorporateFinanceEurope@standardandpoors.com


MARCONI CORPORATION: Appoints New Non-executive Director
--------------------------------------------------------
Marconi Corporation plc (London: MONI and Nasdaq: MRCIY) on
Thursday appointed Peter Hickson as a non-executive director
with immediate effect.  Peter Hickson has been Chairman of AWG
PLC since January 2003 having been a non-executive director of
the company since May 2002.  He was Group Finance Director of
Powergen Plc from 1996 to 2002 and Group Finance Director of MAI
Plc from 1991 to 1996.  Peter is a fellow of The Institute of
Chartered Accountants and was also a non-executive director of
RAC Plc from 1994to 2002.  Peter Hickson will chair the
remuneration committee of the Marconi Corporation plc board.

Welcoming Peter Hickson to the Board, John Devaney, Chairman of
Marconi Corporation plc, said:

"Peter has over thirty years of industrial experience and will
be a great asset to our Board.  He has a strong financial and
business background and we look forward to working with him."

The Company can confirm that there are no details to be
disclosed in respect of Mr. Hickson pursuant to paragraph 16.4
of the Listing Rules, save that in October1989, Mr. Hickson
became a director of Tern Plc, a company in financial
difficulty.

The company went into receivership in 1991.

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 and on the Nasdaq under the symbol MRCIY.  Additional
information about Marconi Corporation can be found at
http://www.marconi.com.


MCCOURT FINE: Wants Administrators Out
--------------------------------------
Workers of McCourt Fine Meats Ltd. staged an unusual protest
against the company's administrators last week, according to
Evening Telegraph.

The meat firm fell under receivership at the end of March due to
the impact of the foot-and-mouth outbreak in the market.  It
called in accountancy firm RSM Robson Rhodes to sell the
business as a going concern.  But recently, disputes over
company losses and wage payments put the workers and
administrators at odds.

The feud escalated on Wednesday with the staff and company
director Kevin McCourt refusing administrators entrance to the
building.

Mr. McCourt said: "The company is currently in administration,
but the administrators have not paid some of the wages to my
staff and have failed to pay the rent, so we decided to lock
them out."

McCourt Fine Meats continues to employ its 50 employees, but Mr.
McCourt warned some of the jobs could be cut in the absence of
positive developments in the management of the business.


NEALE MORAN: Appoints Liquidator from Tait Walker
-------------------------------------------------
At an Extraordinary General Meeting of the Neale Moran Insurance
Brokers Limited Company on April 20, 2004 held at Tait Walker,
Bulman House, Regent Center, Gosforth, Newcastle upon Tyne NE3
3LS, the Special, Ordinary and Extraordinary Resolutions to wind
up the Company were passed.  Gordon Smythe Goldie of Tait
Walker, Bulman House, Regent Center, Gosforth, Newcastle upon
Tyne NE3 3LS has been appointed as Liquidator of the Company for
the purpose of such voluntary winding-up.

CONTACT:  TAIT WALKER
          Bulmsn House
          Regent Centre, Gosforth
          Newcastle upon Tyne NE3 3LS
          Contact:
          Gordon Smythe Goldie, Liquidator


NIRVANA DEVELOPMENTS: Hires Tait Walker Liquidator
--------------------------------------------------
At an Extraordinary General Meeting of the Nirvana Developments
Limited Company on April 19, 2004 held at Tait Walker, Bulman
House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS, the
Special, Ordinary and Extraordinary Resolutions to wind up the
Company were passed.  Gordon Smythe Goldie of Tait Walker,
Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3
3LS has been appointed as Liquidator of the Company for the
purpose of such voluntary winding-up.

CONTACT:  TAIT WALKER
          Bulman House
          Regent Centre, Gosforth,
          Newcastle upon Tyne NE3 3LS
          Contact:
          Gordon Smythe Goldie, Liquidator


NORTHERN FOODS: Sells Emile Tissot for GBP3.5 Million
-----------------------------------------------------
Northern Food's subsidiary Cavaghan & Gray Group Limited sold
its Emile Tissot business to Dawn Fresh Foods Limited, part of
the Queally Group in Ireland, for a cash consideration of GBP3.5
million.  The net assets disposed of were GBP5.8 million.

Emile Tissot produces frozen ready meals for the foodservice
sector at a factory in Telford, Shropshire.  Its sales in the
year ended 31 March 2004 were GBP9.5 million and it employs just
over 100 people, who will transfer to Dawn Fresh Foods.  The
business was acquired by Northern as part of its acquisition of
Cavaghan & Gray Group plc in 1998.

This disposal continues Northern's program of adjusting its
portfolio of activities to align the Group ever more closely
with some of the fastest growing sectors of the food market, and
to increase its focus on leading retailers.  It follows the
disposal of Batchelors and Beck Smith earlier this year and
Fox's Confectionery in 2003, when the Group also acquired the
remaining 60% of Solway Foods and the San Marco frozen pizza
brand.

CONTACT:  NORTHERN FOODS
          Sean Christie, Finance Director
          Phone: 01482 325432

          Michael Sandler
          Phone: 020 7796 4133

          Keith Hann
          Hudson Sandler
          Phone: 07831 521870


NTL INC.: Breaks even at Operating Level; Net Loss Down 63%
-----------------------------------------------------------
Financial Highlights:
                                                    GBP
(In millions)                               Q1-2004     Q1-2003
                                            -------------------

Revenues
Home                                            398.4      362.1
Business                                         69.2       75.0
Broadcast                                        71.4       64.3
Carriers                                         28.5       27.6
Ireland                                          17.5       17.5
                                              -------    -------

Total revenues                                  585.0      546.5
                                              =======    =======

Segment profit (loss)
Home                                            176.7      152.7
Business                                         26.2       21.1
Broadcast                                        29.9       28.6
Carriers                                         22.9       22.2
Ireland                                           6.1        4.9
Shared Services                                (65.0)     (73.0)
                                              -------    -------

Combined segment profit (before stock based
compensation expense)                          196.8      156.5
                                              ========    ======

Stock based compensation expense (SBCE)         (1.9)      (0.2)

Combined segment profit                         194.9      156.3
                                              ========    ======

Combined segment profit margin before SBCE %    33.6%      28.6%

Combined segment profit margin %                33.3%      28.6%

Operating income (loss)                          2.2      (54.1)

Net (loss)                                     (65.4)    (174.7)


* before stock based compensation expense (SBCE)

NTL Incorporated (NASDAQ: NTLI) announced its first quarter 2004
results.  Commenting on the results, Simon Duffy, Chief
Executive Officer of NTL, said:

"The first quarter results demonstrate a strong start to the
year with increased profitability across all divisions compared
to Q1 2003, with both revenue and segment profit margins on
track for continued, steady growth.

"Combined segment profit grew by 25.8% (before SBCE) over Q1
2003, mainly driven by 10.0 per cent revenue growth in NTL:
Home, which added 61,500 net customers and 142,300 RGUs in the
quarter.  The growth in combined segment profit enabled NTL to
deliver its first ever quarterly operating income.

"The highly competitive value of NTL's bundled product
offerings, together with on-going marketing activities and
additional product developments, has contributed to NTL: Home's
customer base growing by 7.7% over Q1 2003 to 2,923,200, and
triple play penetration increasing by approximately 5 percentage
points to 21.6% in Q1 2004.

"Following a year of restructuring, NTL: Business returned to
revenue growth in the first quarter compared to Q4 2003.  This
performance, when coupled with additional investments in its
sales force, has positioned NTL: Business for further profitable
revenue growth later in 2004.

"The first quarter increase in profitability is particularly
encouraging since it occurred at the same time as we continued
to invest in initiatives to drive additional revenue growth and
margin expansion in 2005 and beyond.  These initiatives include
upgrading 545,000 homes served by our London network, thereby
enhancing our broadband and television capability; developing
our digital television platform to enable full interactivity and
video-on-demand; investing in both the NTL: Home and NTL:
Business sales forces; rationalizing the number of customer
provisioning and care centers, which currently employ 3,500
staff; migrating the existing 28 billing and CRM systems to one
through the Harmony program; streamlining corporate overhead
functions which currently employ over 2,000 staff.

"In April, NTL completed the bond and bank debt refinancing
which has extended the maturity of our remaining debt and
lowered its average cost.  When combined with the success of the
2003 rights offering, completion of our capital restructuring
has reduced annual bond and bank debt interest expense by 37% to
approximately GBP235 million.

"The progress made in the first quarter of 2004 positions NTL
well for continued revenue growth and sustainable margin
expansion over the balance of the year."

A full copy of the financial results is available free of charge
at: http://bankrupt.com/misc/NTL_2004Q1.pdf

CONTACT:  NTL INC
          Investor Relations:
          U.S.: Patti Leahy
          Phone: +1 610 667 5554
          U.K.: Virginia Ramsden
          Phone: +44 (0)20 7967 3338

          Media:
          Alison Kirkwood
          Phone:  +44 (0) 1256 752662
                or    (0) 7788 186154

          Justine Parrish
          Phone:  +44 (0) 1256 752669
                or    (0) 7966 421 991

          BUCHANAN COMMUNICATIONS
          Richard Oldworth
          Jeremy Garcia
          Phone: +44 (0) 20 7466 5000


PAYROLL SYSTEMS: Hires Sanderlings Administrator
------------------------------------------------
Name of Company: Payroll Systems International Limited

Reg No 03785686

Registered Office: Elsinore House, Buckingham Street, Aylesbury,
Buckinghamshire HP20 2NQ

Nature of Business: Accounting, Auditing, Tax Consult

Trade Classification: 7412

Administration Order made: April 19, 2004

Administrative Receiver:  SANDERLINGS LLP
                          Sanderling House,
                          Springbrook Lane, Earlswood,
                          Solihull B94 5SG
                          Receiver:
                          Andrew Fender
                          (Office Holder No 6898)


PERHOW 5:  Calls in Liquidator
------------------------------
At a Meeting of the Members of the Perhow 5 Limited Company on
April 22, 2004, the Special Resolution to wind up the Company
was passed.  Gavin Geoffrey Bates of BRI Business Recovery and
Insolvency, 102-104 St James Road, Northampton NN5 5LF has been
appointed as Liquidator of the Company for the purpose of such
winding-up.

CONTACT:  BRI BUSINESS RECOVERY AND INSOLVENCY
          102-104 St James Road
          Northampton NN5 5LF
          Contact:
          Gavin Geoffrey Bates, Liquidator


SAGEVALE INVESTMENTS: Special Winding up Resolution Passed
----------------------------------------------------------
At an Extraordinary General Meeting of the Members of the
Sagevale Investments Limited Company on April 28, 2004 held at
25 Harley Street, London W1G 9BR, the Special Resolution to wind
up the Company was passed.  Bernard Hoffman has been appointed
Liquidator for the purpose of such winding-up.

CONTACT:  Bernard Hoffman, Liquidator


SELECT RESIDENTIAL: In Administrative Receivership
--------------------------------------------------
Name of Company: Select Residential PLC

Nature of Business: Development and Sell Real Estate

Registered Office of Company: James Sellars House, 3rd Floor,
144-146 West George Street, Glasgow G2 2HG

Trade Classification: 7011

Date of Appointment: April 23, 2004

Joint Administrative Receiver:  SPW POPPLETON & APPLEBY
                                Gable House,
                                239 Regents Park Road,
                                London N3 3LF
                                Receivers:
                                M S E Solomons
                                D L Platt
                                (IP Nos 9043, 2669)


SIXEIGHTFOUR LIMITED: Meeting of Creditors Set May 17
-----------------------------------------------------
There will be a Creditors Meeting of the Sixeightfour Limited
Company on May 17, 2004 at 11:00 a.m.  It will be held at the
offices of Smith & Williamson Limited, prospect House, 2
Athenaeum Road, London N20 9YU.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Smith & Williamson Limited, Prospect House, 2
Athenaeum Road, London N20 9YU not later than 12:00 noon, May
16, 2004.

CONTACT:  SMITH & WILLIAMSON LIMITED
          Prospect House
          2 Athenaeum Road,
          London N20 9YU
          Contact:
          Stephen Cork, Joint Administrator
          Anthony Murphy, Joint Administrator


STONEYGATE 124: Calls in Liquidator
-----------------------------------
At an Extraordinary General Meeting of the Stoneygate 124
Limited Company on April 23, 2004 held at Queen Anne House, 4 &
6 New Street, Leicester LE1 5NR, the Special, Ordinary and
Extraordinary Resolutions to wind up the Company were passed.
Jane Lindsay Gandon of 2 Preston Park Avenue, Brighton BN1 6HJ
has been appointed Liquidator for the purpose of such winding-
up.

CONTACT:  Jane Lindsay Gandon, Liquidator
          2 Preston Park Avenue,
          Brighton BN1 6HJ


SURREY HOME: Names Liquidator from Piper Thompson
-------------------------------------------------
At an Extraordinary General Meeting of the Surrey Home Care
Limited Company on April 27, 2004 held at Heath Lodge, St.
Georges Avenue, Weybridge, Surrey KT13 0DA, the Special and
Ordinary Resolutions to wind up the Company were passed.  Tony
James Thompson of Piper Thompson, Mulberry House, 53 Church
Street, Weybridge, Surrey KT13 8DJ has been appointed
Liquidator.

CONTACT:  PIPER THOMPSON
          Mulberry House
          53 Church Street, Weybridge
          Surrey KT13 8DJ
          Contact:
          Tony James Thompson, Liquidator


SVENSKA PALMER: Appoints PricewaterhouseCoopers Administrator
-------------------------------------------------------------
Name of Company: Svenska Palmer Construction Limited

Nature of Business: General Construction

Trade Classification: 23

Date of Appointment: April 28, 2004

Joint Administrative Receiver:  PRICEWATERHOUSECOOPERS LLP
                                Benson House,
                                33 Wellington Street,
                                Leeds LS1 4JP
                                Receivers:
                                Ian David Green
                                David Malcolm Walker
                                (IP Nos 9045, 3606)


TELEWEST COMMUNICATIONS: Acting Chief Executive on Leave
--------------------------------------------------------
Barry Elson, Acting Chief Executive of Telewest [under
restructuring], has returned to the United States for the time
being in order to undertake a period of medical treatment.

The Board wishes Barry well and looks forward to his return.  In
the meantime, Barry's responsibilities are being undertaken by
the existing executive team.

CONTACT:  TELEWEST COMMUNICATION
          Jane Hardman, Director of Corporate Communications
          Phone: 020 7299 5888

          CITIGATE
          Dewe Rogerson
          Phone: 020 7638 9571

          Anthony Carlisle
          Phone: 07973 611 888


THOMAS MUCKLE: Names Administrative Receiver
--------------------------------------------
Name of Company: Thomas Muckle & Sons (Builders) Ltd.

Nature of Business: Construction of Buildings

Registered Office of Company:
3 Portland Terrace, Newcastle Upon Tyne NE2 1QQ

Trade Classification: 4521

Date of Appointment: April 28, 2004

Joint Administrative Receiver:  R M T
                                3 Portland Terrace,
                                Newcastle upon Tyne NE2 1QQ
                                Receivers:
                                Anthony Alan Josephs
                                Linda Ann Farish
                                (IP Nos 004179, 009054)


TIME HAIR: Appoints Rothman Pantall Liquidator
----------------------------------------------
At an Extraordinary General Meeting of the Time Hair Gallery
Limited Company on April 22, 2004 held at the offices of Carlton
Baker Clarke, Greenwood House, New London Road, Chelmsford,
Essex CM2 0PP, the subjoined Special Resolution to wind up the
Company was passed.  Stephen Ryman and Robert Smailes of Rothman
Pantall & Co., Clareville House, 26-27 Oxendon Street, London
SW1Y 4EP, be and are hereby appointed Joint Liquidators for the
purpose of such winding-up.

CONTACT:  ROTHMAN PANTALL & CO
          Clareville House
          26-27 Oxendon Street
          London SW1Y 4EP
          Contact:
          Stephen Ryman, Liquidator
          Robert Smailes, Liquidator


TRINITY MIRROR: Advertising Revenue Follows Upward Trend
--------------------------------------------------------
Trinity Mirror Chairman Sir Victor Blank said at the company's
Annual General Meeting:

"At the Group's preliminary results announcement on 26th
February 2004, we stated that the improving trend in advertising
seen in the final quarter of 2003 had continued into the first
two months of 2004.  We are pleased to report that this
improvement has continued to date.

"Group advertising revenue for the first four months, on a like
for like basis excluding the regional titles in Ireland which
were disposed in January, increased by 4.9% year on year with
advertising revenues for our Regionals division increasing by
5.8% and for our Nationals division by 2.7%.  Advertising
conditions for our Regional titles in London and the South East
have shown an encouraging trend with year on year increases of
3.1% for the first four months of the year.

"Group circulation revenues for the first four months, on a like
for like basis excluding the regional titles in Ireland which
were disposed in January, increased by 7.7% year on year with
circulation revenues for our Regional titles increasing by 3.7%
and our National titles by 8.6%.  These increased revenues
reflect the benefit of cover price increases and the cessation
of the price cutting strategy for the Daily Mirror on 31st March
2003 partially offset by reduced circulation volumes.

"Our performance improving strategy is progressing well and is
reflected in the revenue improvements we have seen during the
year so far.  On 19th April we further strengthened the senior
management team with the appointment of Rupert Middleton as
Director of Manufacturing.  We have continued to make progress
on our key Manufacturing and Supply Chain projects and we will
be in a position to provide you with a further update on these
at our Interim results announcement on 29th July.

"The directors are confident of another year of progress."

CONTACT:  TRINITY MIRROR PLC
          Nick Fullagar
          Director of Corporate Communications
          Phone: 020 7293 3000

          FINSBURY
          James Leviton
          Phone: 020 7251 3801


WATFORD LEISURE: Cancels Deferred Shares, Share Premium Account
--------------------------------------------------------------
Watford Leisure on 5 May 2004 obtained a Court Order allowing
the Company to cancel:

(a) The non-voting deferred shares of 90p each in the capital of
    the Company amounting to a nominal value of GBP5,399,775,
    which were created on the passing of certain resolutions at
    the Extraordinary General Meeting of the Company held on 9
    March 2004; and

(b) The share premium account of the Company amounting to
    GBP8,680,218.

The cancellation of the Deferred Shares and Watford Leisure's
share premium account will be used to eliminate the accumulated
loss on the profit and loss account of the Company and will
create a reserve account against which future losses can be
eliminated.

The cancellation is expected to be completed shortly.

CONTACT:  WATFORD LEISURE
          Graham Simpson, Chief Executive Officer
          Phone: 01923 496000


WILLINGTON PLC: Court Sanctions Scheme of Arrangement
-----------------------------------------------------
Willington plc announces that following the announcement
released on 13 April 2004, the Court has sanctioned the Scheme
of Arrangement.  Accordingly it is expected that the admission
to trading on AIM of the preference shares issued pursuant to
the Scheme will take place on 10 May 2004.

Terms used in this announcement shall have the same meaning as
in the announcement of 18 March 2004 relating to the Scheme,
unless the context requires otherwise.

                            *   *   *

The group was formed in 1998 pursuant to a reconstruction of REA
whereby ownership of certain U.K. businesses that still
constitute the principal operations of the group was transferred
from REA [a public company of which the issued share capital is
admitted to the official list of the United Kingdom Listing
Authority] to the company and a part of the then issued share
capital of REA was converted into 3,239,666 ordinary shares in
the capital of Willington.  Concurrently, the company raised
some GBP4.5 million (excluding expenses) by a placing and open
offer of 5,264,501 ordinary shares at a price of 85p per share
on a basis that offered individual subscribers of such shares
possible eligibility for EIS and capital gains tax deferral
reliefs.

At the time of the group's formation, it was felt that the
businesses transferred to the group by REA had previously been
constrained within the REA group by the need to compete for
capital with other capital intensive businesses in the REA group
and that, having been transferred to the group and freed of that
constraint, such businesses would have the capability of
delivering growth in dividends and capital value.  It was also
hoped that that there could be attractive opportunities for
expansion in several areas of the businesses.

A good trading performance and some limited expansion through
acquisitions during 1999 and 2000 offered the prospect that the
initial hopes for the group could be realized.  Sadly, 2001 saw
a more difficult trading environment for the group's businesses
and a downturn in performance from which the group has still to
recover.  The directors felt obliged to reduce and eventually to
cease payment of dividends on the issued ordinary shares and by
2002 the level at which the ordinary shares were being traded on
AIM had fallen to below 40p per share.

Much has been achieved since 2001 in terms of improvements to
efficiency, group focus and liquidity but the directors feel
that, realistically, it may still take some time until such
improvements are fully reflected in reported group profits and
the payment of dividends on the ordinary shares can be resumed.

In the chairman's statement in the company's 2002 annual report,
the chairman recorded that it had been recognized by the
directors that shareholders might find the outlook for the group
disappointing and that accordingly the directors were actively
giving consideration to ways in which shareholder value could be
made more reflective of the underlying asset value of the group.
However, such consideration had to take into account the special
tax constraints applicable to those shareholders who had
obtained EIS and capital gains tax deferral reliefs on
subscription of ordinary shares at the end of 1998.

With the expiry of the period of five years from the completion
of the 1998 placing and open offer, holders of ordinary shares
who acquired their shares pursuant to that placing and open
offer are now free of the special tax constraints that applied
in respect of their holdings during that five year period.
Accordingly, the directors feel that it has now become
appropriate to address the issue of the company's ordinary
shares standing on AIM at a substantial discount to the price of
85p per ordinary share at which the 1998 placing and open offer
was made.  The Scheme is the result.

CONTACT:  WILLINGTON PLC
          Vincent Troy, Managing Director
          Phone: 020 7419 0100


ZAI NET: Hires Liquidator from Peter Elworthy & Moore
-----------------------------------------------------
At an Extraordinary General Meeting of the Members of the Zai
Net Software Limited Company on April 27, 2004 held at Salisbury
House, Station Road, Cambridge CB1 2LA, the Special and Ordinary
Resolutions to wind up the Company were passed.  Shay Lettice of
the firm of Peters Elworthy & Moore has been appointed as
Liquidator of the Company for the purpose of the voluntary
winding-up.

CONTACT:  PETER ELWORTHY & MOORE
          Salisbury House
          Station Road
          Cambridge CB1 2LA
          Phone:  +44 (0) 1223 728222
          E-mail:  pem@pem.co.uk
          Web Site: http://www.pem.co.uk
          Contact:
          Shay Lettice, Liquidator


                            *********


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-
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Copyright 2004.  All rights reserved.  ISSN 1529-2754.

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