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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

                   L A T I N   A M E R I C A

          Wednesday, April 30, 2003, Vol. 4, Issue 84

                           Headlines

A R G E N T I N A

ACINDAR: Extends Its Cash Tender Offer
APSA: Standard & Poor's Moves Bonds To Junk Territory
BANCO HIPOTECARIO: Moody's Assigns `D' Ratings To Various Bonds
CABLEVISION: S&P Issues Default Ratings To Various Bonds


B R A Z I L

AES CORP.: Waives Tender Deadline for Certain Series Notes
CANBRAS COMMUNICATIONS: Releases First Quarter Results
IDEIASNET: Reduces Net Losses
LIGHT SERVICOS: Local and Foreign Currency Ratings Withdrawn
TCP: Reports Results For The First Quarter Of 2003

TELEMAR: Merrill Downgrades Recommendation To "Neutral"


C H I L E

EDELNOR: No Merger With Electroandina This Year, Says Chairman
EDELNOR: To Boost Sales To Smaller-Scale Unregulated Clients


J A M A I C A

JUTC: Bound To Lose Another $1 Billion This Year
SCJ: Still In The Red But Aims To Return To Black Next Year


M E X I C O

EMPRESAS ICA: Reports Unaudited First Quarter 2003 Results
GRUPO ELEKTRA: 1Q EBITDA Increases 14% to Record P738 Million
GRUPO TMM: Amends Exchange Offers
PROVO: Restructures Trade Debt With TelMex
TV AZTECA: JP Morgan Ups Share Recommendation

VITRO: Reports Unaudited 1Q03 Results


P A N A M A

CHIQUITA BRANDS: To Sell Panama Unit To Worker Cooperative


P E R U

BANCO WIESE SUDAMERIS: Net Income Falls To PEN2.44 Mln In 1Q03


V E N E Z U E L A

CANTV: Expects To Lose As Much As $195M This Year
PDVSA: Fire Disables Cardon Refinery For A Week
PDVSA: Collaborates With Petrobras On Joint Refinery in Brazil

     -  -  -  -  -  -  -  -

=================
A R G E N T I N A
=================

ACINDAR: Extends Its Cash Tender Offer
--------------------------------------
Acindar Industria Argentina de Aceros S.A. (the "Company")
announced Monday that it is extending until 12:00 p.m., New York
City time, on May 12, 2003 (the "Expiration Date", unless the
offer is terminated earlier or further extended by the Company in
its discretion or otherwise in accordance with the terms of the
Offer (as such term is defined below)), its offer to purchase for
cash, upon the terms and subject to the conditions set forth in
the Offer to Purchase dated April 10, 2003 (the "Offer to
Purchase") and in the related letter of transmittal (the "Letter
of Transmittal" and, together with the Offer to Purchase, the
"Offer") its 11-1/4% Notes due 2004 (the "Notes") and certain of
its U.S. dollar denominated indebtedness (the "Dollar Debt") for
an aggregate purchase price of up to U.S.$20 million. The
purchase price for each U.S.$1,000 principal amount of Notes or
Dollar Debt will be determined pursuant to a modified dutch
auction procedure in which a Holder of Notes or Dollar Debt (each
a "Holder") may tender such Notes or Dollar Debt at prices within
a price range from U.S.$450 per U.S.$1,000 of principal amount to
U.S.$650 per U.S.$1,000 of principal amount of Notes or Dollar
Debt.

The Company also announced Monday that it is extending until
12:00 p.m., New York City time, on May 12, 2003, unless further
extended by the Company in its discretion or otherwise in
accordance with the terms of the Offer, the Early Tender Date (as
such term is defined in the Offer to Purchase) pursuant to which
a Holder who validly tenders and does not validly withdraw Notes
or Dollar Debt prior to such date will be paid U.S.$50.00 per
U.S.$1,000 principal amount of Notes or Dollar Debt tendered by
such Holder, provided the Offer is consummated and such Notes and
Dollar Debt are purchased in the Offer.

The Company will not pay any accrued and unpaid interest
(including default interest and additional amounts, if any) on
any Notes and Dollar Debt that are tendered for purchase pursuant
to the Offer. Notes and Dollar Debt tendered in the Offer may not
be withdrawn unless the Company extends the Expiration Date to a
date after June 9, 2003 or makes an amendment to the terms and
conditions of the Offer that is, in the Company's reasonable
judgment, adverse to any Holder that has tendered such Notes or
Dollar Debt in the Offer.

As of 5:00 p.m., New York City time, on April 25, 2003, Holders
of approximately U.S.$24.3 million aggregate principal amount of
Notes and Dollar Debt had tendered in the Offer.

The tender offer is made only by, and will remain subject to, the
Offer to Purchase. The tender offer will remain subject to all of
the other terms and conditions described in the Offer to Purchase
and the Letter of Transmittal.

The Dealer Manager for the Offer is Credit Suisse First Boston
LLC ("CSFB"). The Depositary for the Offer is JPMorgan Chase
Bank. The Information Agent for the Offer is Georgeson
Shareholder and its telephone numbers are North America: Banks
and Brokers Call: +1(212) 440-9800, toll-free (800) 368-2245 and
Europe and Latin America: +39 06 42 171 777. You can also contact
the Information Agent at acindarinfo@gscorp.com.

Additional information concerning the terms of the Offer,
including all questions relating to the mechanics of the Offer,
may be obtained by contacting the Information Agent or CSFB at +1
(212) 538-8474 or U.S. toll-free at (800) 820-1653.

This extension notice is dated as of April 28, 2003.


APSA: Standard & Poor's Moves Bonds To Junk Territory
-----------------------------------------------------
Sucursal Argentina, a local affiliate of Standard & Poor's
International Ratings, Ltd., rated Alto Palermo S.A.'s (Apsa)
corporate bonds `raB', with positive outlook.

The rating, issued on Thursday, applies to ARS85 million of bonds
classified under "simple issue." The National Securities
Commission of Argentina described the bonds as "Obligaciones
Negociables Cimples no convertibles en acciones."

According to the ratings agency, an obligation rated `raB'
denotes weak protection parameters relative to other Argentine
obligations. The Company currently has the capacity to meet its
financial commitments on the obligation, but adverse business,
financial or economic conditions would likely impair capacity or
willingness of the obligor to meet its financial commitments on
the debt.

Apsa's principal activities are developing, administering,
acquiring and locating productive commercial centers and
residential complexes. Invest in properties and furniture,
industrializes and raw materials, exports and imports raw
materials and other materials. It also functions as a developer
of bound/joint residential complexes at the commercial centers
that they operate or develop, and participates in the credit card
business through its subsidiary and also develops Internet sites
to stimulate e-commerce through E-Commerce Latina SA.

CONTACT:  Alto Palermo S.A. (APSA)
          2/F
          476 Hipolito Yrigoyen
          Buenos Aires
          Argentina
          Phone: +54 11 4344 4600
          Home Page: http://www.altopalermo.com.ar
          Contacts:
          Eduardo Sergio Elsztain, Chairman
          Marcos Marcelo Mindlin, Vice Chairman
          Aaron Gabriel Juejati , Vice Chairman


BANCO HIPOTECARIO: Moody's Assigns `D' Ratings To Various Bonds
---------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. on Tuesday
assigned `D' ratings to various corporate bonds issued by
Argentine bank, Banco Hipotecario, S.A., according to information
provided by the National Securities Commission.

The following bonds were assigned with the `D' rating:

-- US$2 billion of "Serie I en dolares del Programa Global de ON
a Mediano Plazo por USD 2.000 millones"

-- US$2 billion of "Serie IV en dolares del Programa Global de ON
a Mediano Plazo por USD 2.000 MM"

-- US$2 billion of "Serie VI en dolares del Programa Global de ON
a Mediano Plazo por USD 2.000 MM"

-- US$2 billion of "Serie XVI en dolares del Programa Global de
ON a Mediano Plazo por USD 2.000 MM"

-- US$2 billin of "Serie XVII en Euros del Programa Global de ON
a Mediano Plazo por USD 2.000 MM"

-- US$2 billion of "Serie XXII en Euros del Programa Global de ON
a Mediano Plazo por USD 2.000 MM"

-- US$2 billion of "Serie XXIII en Euros del Programa Global de
ON a Mediano Plazo por USD 2.000 MM"

-- US$107 million of "Serie XXIV en d¢lares dentro del Programa
Global a Mediano Plazo por us$ 2000000000."

-- US$166 million of "Serie XXV en Euros dentro del Programa
Global a Mediano Plazo por US$ 2000000000."

-- US$100 million of "Serie III en d¢lares dentro del Programa en
Euros a Mediano Plazo por US$ 500000000."

The mentioned bonds were classified under "series and/or class",
but their maturity dates were not indicated.

At the same time, Moody's also issued a `4' rating to the
Company's stocks, described as "acciones Ordinarias Clase D."
Both ratings for the bonds and stocks were based on the Company's
financial position as of December 31, 2002.

Banco Hipotecario's main activities involve the provision of
loans for purchase, repair and construction of housing units;
provision of joint insurance with its mortgage loan activities;
and management of portfolios of own and third party mortgage
loans. It also acts as a refunding agent for provincial funds for
the housing units administrated by FONAVE, which lends services
for real estate intermediation through a controlled company, BHN
Inmobiliaria S.A. and real estate administrative services through
a Joint Venture with International Vendome Rome.

CONTACT:  Banco Hipotecario SA
          151 Reconquista
          Buenos Aires
          Argentina
          Phone: +54 011 4347 5546
          Home Page: http://www.hipotecario.com.ar
          Contact:
          Miguel K. Kiguel, Chairman


CABLEVISION: S&P Issues Default Ratings To Various Bonds
--------------------------------------------------------
Corporate bonds of Cablevision S.A. were assigned default ratings
by the Argentine branch of Standard & Poor's International
Ratings, Ltd., according to information revealed in the official
Web site of National Securities Commission - Argentina.

S&P assigned a rating of `raD' to the following bonds:

-- US$1.5 billion of "obligaciones negociables simples,"
classified under "program", with undisclosed maturity date.

-- US$100 million of "Serie 9 de ON por USD 100MM bajo el
Programa de USD 1500MM," under "series and/or class"

-- US$100 million of "Serie XI por un monto de USD 100 millones
dentro del Programa de ON a med. plazo por un monto de USD 1.500
MM', under "series and/or class."

-- US$250 million of "Serie 10 por U$S 250 MM bajo el Prog. de
Ons. a Mediano Plazo por U$S1500 MM," under "series and/or
class."

-- US$275 million of "Serie 5 por U$S 275 MM bajo el Prog. de
Ons. a Mediano Plazo por U$S1500 MM", also under "series and/or
class."

S&P said that an `raD' rating is issued to obligations in payment
default, or if a company has filed for bankruptcy. The said
rating may also be used when interest or principal payments are
not made on the date due, even if the applicable grace period has
not expired, unless the ratings agency believes that such
payments will be made during the grace period.

The ratings are based on the Company's financial health as of the
end of December 2002.



===========
B R A Z I L
===========

AES CORP.: Waives Tender Deadline for Certain Series Notes
----------------------------------------------------------
The AES Corporation (NYSE:AES) announced Monday that it had
waived the deadline by which holders of its outstanding 10.25%
Senior Subordinated Notes Due 2006, 8.375% Senior Subordinated
Notes Due 2007 and 8.50% Senior Subordinated Notes Due 2007 (the
"Notes") must tender in order to be eligible to receive the early
tender premium.

Holders of these Notes, whose Notes are validly tendered on or
prior to 5:00 p.m., New York City time, on May 6, 2003, the
tender offer expiration date and accepted for purchase, will be
paid the applicable tender offer consideration and early tender
premium plus accrued and unpaid interest to, but not including,
the settlement date. The other terms of the tender remain
unchanged. AES has not waived the early tender premium deadline
for any of the other series of senior or senior subordinated
notes or the withdrawal deadline for any series of notes.

The following table shows the principal amount of each series of
notes that AES is seeking to purchase in the pending tender offer
and the aggregate principal amount tendered as of 5:00 p.m., New
York City time on April 25, 2003. AES may increase the principal
amount of notes that it is seeking to purchase depending on the
amount of proceeds that it receives from the proposed private
placement, provided that the aggregate principal amount of the
notes purchased will not exceed $1.3 billion.

                            Principal    Principal
                             Amount       Purchase      Amount
          The Notes        Outstanding     Amount      Tendered
------------------------ ------------- ------------ -------------
8.00% Senior Notes,
  Series A, Due 2008      $199,022,000  $20,000,000   $53,665,000
8.75% Senior Notes,
  Series G, Due 2008      $400,000,000  $40,000,000  $198,931,000
9.50% Senior Notes,
  Series B, Due 2009      $750,000,000  $75,000,000  $311,764,000
9.375% Senior Notes,
  Series C, Due 2010      $850,000,000  $86,000,000  $505,649,000
8.875% Senior Notes,
  Series E, Due 2011      $536,690,000  $54,000,000  $275,479,000
10.25% Senior Subordinated
Notes Due 2006           $217,050,000  $55,000,000   $18,867,000
8.375% Senior Subordinated
Notes Due 2007           $303,290,000  $77,000,000   $40,101,000
8.50% Senior Subordinated
Notes Due 2007           $338,165,000  $86,000,000   $26,888,000
8.875% Senior Subordinated
Notes Due 2027           $125,000,000  $32,000,000    $4,952,000

AES's obligation to accept notes tendered and pay the tender
offer consideration and any early tender premium is subject to a
number of conditions which are set forth in the Offer to Purchase
and Letter of Transmittal for the tender offer. The conditions
include (1) the completion of the proposed private placement and
(2) the effectiveness of an amendment to AES' senior credit
facility. The tender offer will expire at 5:00 p.m. New York City
time on Tuesday, May 6, 2003 unless extended or earlier
terminated.

SOURCE:  The AES Corporation
         Kenneth R. Woodcock, 703/522-1315


CANBRAS COMMUNICATIONS: Releases First Quarter Results
------------------------------------------------------
-- The Canbras Group faces major liquidity issues

-- Cable subscribers exceed 191,000, up 8.5% from first quarter
of 2002

-- Internet access subscribers exceed 13,000, up 34% from first
quarter of 2002

-- Revenue down by 21.5% from first quarter of 2002 to reach
$13.5 million due to a significant devaluation in the Brazilian
real

-- EBITDA unchanged at $3.0 million from first quarter of 2002

Canbras Communications Corp. (TSX.CBC) ("Canbras" or the
"Corporation") today released results for the first quarter ended
March 31, 2003.

Renato Ferreira, President and CEO of the Canbras Group, stated,
"Canbras' results for the first quarter were in line with the
company's constrained growth strategy for 2003. Cable subscribers
remained stable relative to the previous quarter despite price
increases and weaker demand as a result of the summer holidays
and carnival season in Brazil, which historically is the slowest
period of the year for Canbras. While revenues decreased by 21.5%
from the first quarter of 2002 largely due to the 54% average
devaluation of the Brazilian real against the Canadian dollar,
Canbras was able to maintain its EBITDA level stable at $3.0
million.

Mr. Ferreira added: "Canbras still faces major liquidity issues
arising mainly from the inability of one of our subsidiaries,
Canbras TVA, to repay an approximately US$ 9.25 million
obligation under its credit facility due in mid May of this year,
as well as a projected cash short-fall in 2004 in relation to
corporate overhead expenses. During the first quarter of 2003
progress has been made in regard to a potential restructuring of
the debt that could avoid a payment default this May and which
would be based on a business plan that could enable the Canbras
Group to continue in operation for 2003 and beyond. We have not
yet come to a final conclusion with the bank lenders and our
partner on all issues associated with such potential debt
restructuring and related business plan, but we are cautiously
optimistic that all parties will reach an acceptable agreement
within the next several weeks. At this time however, there can be
no assurances that such an agreement will be reached."

"Also during the first quarter of 2003, Canbras continued the
process it had started in 2002 to investigate the possibility of
a sale of its broadband communications operations in Brazil",
stated Mr. Ferreira, and "while a number of parties have shown
interest in the company, valuation and financing issues could
make it difficult to obtain an offer on acceptable terms in the
near future. At this time, no final decisions have been made by
the Canbras board of directors on an intended course of action."

Change in Functional Currency

As of January 1, 2003, the Corporation's Brazilian subsidiaries
were no longer considered to be integrated operations due to the
fact that the day-to-day financing of the subsidiaries'
operations had become largely independent of the Corporation and
accordingly the subsidiaries are considered to be self-
sustaining. The Corporation continues to report the financial
results in Canadian dollars, but the functional currency of its
foreign subsidiaries has changed from Canadian dollars to
Brazilian reais. This change in accounting policy was applied
prospectively with no restatement of prior year's results.

The impact of changing the functional currency on the January 1,
2003 balance sheet was a reduction in the carrying value of fixed
assets, licenses, deferred costs and non-controlling interest of
$40.8 million, $19.9 million, $4.6 million and $12.4 million
respectively and as a result, shareholders' equity was reduced by
$52.9 million. The reduction reflects the decline in value of the
Brazilian real relative to the Canadian dollar since the time the
non-monetary assets were first acquired. As a result of the
devaluation in the Brazilian real relative to the Canadian dollar
in the first quarter of 2003, a further amount of $1.3 million
was charged to foreign currency translation adjustment in
shareholders' equity.

Results review

First Quarter 2003 versus First Quarter 2002

Revenue for the quarter was $13.5 million, a decrease of 21.5%
over the first quarter of 2002. The decrease was primarily as a
result of a 54% devaluation of the average translation rate of
Brazilian reais into Canadian dollars relative to the first
quarter of 2002, partially offset by cable and access subscriber
growth and price increases. In Brazilian reais, revenue for the
first quarter of 2003 increased by approximately 22% over the
first quarter of 2002.

EBITDA (earnings before interest, taxes, depreciation,
amortization and foreign exchange) was unchanged at $3.0 million
from the first quarter of 2002. The decrease in revenues was
offset by a decrease in cost of service and in operating expenses
both resulting principally from the weaker foreign exchange
translation rate of the Brazilian real.

The Corporation recorded net earnings from continuing operations
of $0.4 million in the quarter, compared to a net loss from
continuing operations of $3.7 million in the first quarter of
2002. The improvement was primarily due to lower depreciation and
amortization expenses as a result of the change in the functional
currency of the Corporation's Brazilian subsidiaries. The
improvement in net earnings is also attributable to a foreign
exchange gain on the US dollar denominated debt due to a 5%
appreciation relative to December 31, 2002 in the Brazilian real
compared to the US dollar. Interest expenses were lower in the
first quarter of 2003 than in the first quarter of 2002 as a
result of the purchase by the Corporation of C$15.8 million in
notes issued by a subsidiary of the Corporation from a group of
banks during the first quarter of 2002.

Capital expenditures for the three months ended March 31, 2003
was $1.5 million compared to $2.7 million in 2002. This decrease
was mainly due to lower subscriber additions and the devaluation
of the Brazilian real compared to the Canadian dollar. Also
during the first quarter of 2003, the Canbras group sold $0.6
million of materials held for future capital expenditures.

During the first quarter of 2003, cash increased by $2.8 million
as cash provided by operating activities exceeded capital
expenditures of $1.5 million and cash used for discontinued
operations of $0.5 million.

General

Canbras, through the Canbras Group of companies, is a leading
broadband communications services provider in Brazil, offering
cable television, high speed Internet access and data
transmission services in Greater Sao Paulo and surrounding areas
and the State of Paran . Canbras Communications Corp.'s common
shares are listed on the Toronto Stock Exchange under the trading
symbol CBC. Visit our web site at www.canbras.ca.

To see financial statements: http://bankrupt.com/misc/CANBRAS.htm


IDEIASNET: Reduces Net Losses
-----------------------------
Brazilian company IdeiasNet reduced net losses by 59.5% to
BRL3.55 million in 2002, compared to the losses in the previous
year. The relatively better performance can be attributed to
higher net revenue and lower operating loss.

Last year's net revenue went up 3.5% to BRL1.1 million, while
operating loss went down 58.5% to BRL4.11 million. Ideiasnet
closed 2002 with a BRl14.3 million net equity.


LIGHT SERVICOS: Local and Foreign Currency Ratings Withdrawn
------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC+' global
scale foreign and local currency ratings on Light Servi‡os de
Eletricidade S.A. (Light) at the request of the company. The
outlook was negative.

Light has announced it will seek to renegotiate a significant
portion of its debt. At this point in time, there is no public
information about what will be the terms and conditions of its
debt restructure package, and how Light will conduct this
process. Electricit‚ de France Group (EDF)--Light's parent
company -- is expected to continue participating in Light's
financial decisions in the short-term, as confirmed by its direct
support on the Medium Term Notes repayment in February 2003.

ANALYSTS:  Marcelo Costa, Sao Paulo (55) 11-5501-8955
           Milena Zaniboni, Sao Paulo (55) 11-5501-8945


TCP: Reports Results For The First Quarter Of 2003
--------------------------------------------------
Telesp Celular Participa‡oes S.A. - TCP (NYSE: TCP; BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)) announced Monday its
consolidated results for the first quarter 2003 (1Q03). TCP is
the holding company that owns 100% of Telesp Celular S.A., the
largest cellular operator in Brazil, and of Global Telecom S.A.,
the B-Band cellular operator in the states of Santa Catarina and
Paran .

The following financial and operating information, except where
otherwise stated, are presented in accordance with Brazilian
Corporate Law and on a consolidated basis.

Comparisons, unless otherwise stated, refer to the first quarter
of 2002 (1Q02). Dollar figures are provided only for your
convenience and the conversion is made at an exchange rate of R$
3.3531 per US dollar, as of March 31, 2003.

BASIS FOR PRESENTING OF THE RESULTS

- Due to the acquisition of the 17% remaining stake of the
holding companies, which controlled GT (51% of voting stocks) on
December 27th, 2002, TCP currently owns 100% of GT. Since the
acquisition of GT's control only took place on that date, TCP
recognized GT's consolidated financial results from January to
December 2002 using the equity method and fully consolidated GT's
balance sheet on December 31st, 2002.

- For an appropriate comparison, 4Q02 and 1Q02 figures in this
press release are presented on a pro forma consolidated basis
(100% of GT).

- As of December 27, 2002, the operations of Telesp Celular
Participa‡oes, Tele Sudeste Celular Participa‡oes, CRT Celular
Participa‡oes and Tele Leste Celular Participa‡oes have all been
gathered under the umbrella of the same economic Group (brand
"Vivo"). Therefore, accounting and management practices have been
standardized during the first quarter of this year. As a result,
all information released to the market will reflect these unified
procedures, which were in line with auditors' opinion.

At TCP, the standardization of accounting practices includes the
main following adjustments:

Prepaid Recharges - the revenues and costs coming from the
recharge of the prepaid handsets were recognized when the client
reloaded the handset (recharging). From January 1st on, they will
be recognized when the client uses the credit (utilization). The
negative impact on EBITDA was approximately R$ 57 million in the
1Q03.

        - deferring of revenues and costs of handsets sold to
authorized agents - we used to recognize these revenues and costs
when the handset was sold to the dealer. From January 1st on,
they will only be recognized when the handset is activated. The
positive impact on EBITDA was approximately R$ 20 million in the
1Q03.

        - Other practices changes had a negative impact on EBITDA
of R$ 13.9 million.

        - Non-recurring operating income - reversal of ICMS
(Imposto sobre Circula‡ao de Mercadorias e Servi‡os) tax - TCP
won the lawsuit filed with the Treasury Court of the state of Sao
Paulo against the application of the ICMS to activation fees,
charged retroactively for the five years preceding June 30, 1998,
when the tax application was made effective. This represented an
amount of R$ 68 million, recognized as other operating revenue in
the 1Q03.

  - Cleaning up the client base - Following the standardization
of management practices, adopting then a more rigorous criteria
to the prepaid service, TCP (Telesp Celular and Global Telecom)
started to disconnect these clients after 90 days of non
recharging, reducing the previous period of 120 days.
Consequently, around 90,000 subscribers were disconnected in the
first quarter of 2003, including 60.1 thousand clients from TC
and 29.8 thousand clients from GT.

1Q03 HIGHLIGHTS

Consolidated Statements of Telesp Celular S.A. and Global Telecom
S.A. Subscribers Base Growth

- Consolidated Telesp Celular and Global Telecom subscribers base
totaled 7.3 million in 1Q03, an increase of 18.6% compared to
1Q02 and 0.9% compared to 4Q02.

- Consolidated postpaid clients reached 1.7 million clients and
prepaid clients 5.6 million in this quarter, a growth of 1.6% and
24.8% over 1Q02, respectively.

COSTS CONTROL

- Capital expenditure in this quarter amounted to R$ 80 million
(US$ 23.9 million). This represents 8.6% of net revenues, vs.
8.0% of net revenues in the same period of the previous year.

- Delinquency level represented 1.4% of gross revenues, a 1.0
p.p. reduction compared to 1Q02, due to a better quality of the
current post paid client base and also to the credit control
policy regarding dealers and corporate clients.

OPERATING PERFORMANCE

- Net revenues totaled R$ 927.3 million (US$ 276.6 million) in
1Q03, an 8.9% increase compared to the same period of 2002 and
14.3% decrease compared to 4Q02.

- EBITDA totaled R$ 407.5 million (US$ 121.5 million), a growth
of 34.4% over 1Q02. Compared to 4Q02, EBITDA decreased 9.0%.

- EBITDA margin rose from 35.6% in 1Q02 and from 41.4% in 4Q02 to
43.9% in 1Q03.

2003 KEY EVENTS

January
- On January, 15, TCP announced a preliminary purchase and sale
agreement to buy Tele Centro Oeste Celular ("TCO");

February
- TCP concluded the issue of promissory notes in the amount of R$
700 million Reais;

March
- On March, 14, the definitive share purchase and sale agreement
regarding the acquisition of control of TCO was signed;

April
- TCP announced the new brand that will be adopted by the Joint
Venture operators, "VIVO".

- On April 25 TCP announced that the closing of the TCO stock
control transfer operation was effected. The price of the Control
Shares, added to the remuneration provided for in the Final
Agreement, is R$ 1,506 million reais, corresponding to R$
19.48719845(nineteen Reais point four eight seven one nine eight
four five cents) per 1,000 common shares acquired.

OPERATING DATA

Customers base increased 16.1% to 6,102 thousand compared to 1Q02
and 0.7% compared to 4Q02. This represents a net addition of 42
thousand new customers in the quarter, a 72% decrease compared to
net additions in 1Q02 and a 86.2% decrease compared to 4Q02. This
lower result is basically a consequence of the cleaning up of the
customer base and due to the seasonality of the period.

In line with the strategy of focusing on high-end clients and
client retention campaigns, the postpaid client base increased
0,3%, representing 5 thousand net additions in the first quarter
of 2003, totaling 1,430 thousand clients.

Market share was 66% in 1Q03 in comparison to 67% in 1Q02,
despite the entrance of a new competitor, which reflects the
strengthening of marketing initiatives, enhancing TCP's market
standing. This 1pp decrease compared to 4Q02 is not significant,
taken into account the client base clean up.

Average Minutes of Use (MOU) amounted to 102 in the 1Q03, a 4.7%
decrease compared to 107 in 1Q02 and a 7.3% decrease compared to
110 in 4Q02. This decrease is related to a lower prepaid MOU of
66, a 12% decrease compared to 1Q02, mainly due to the worse
macroeconomic scenario during the year. However, this drop was
partially offset by the 11.2% increase of postpaid MOU, which
reached 218, mainly as a result of enhanced quality of the
postpaid client base during 2002.

Blended ARPU (Average Revenue per User) reached R$ 38 (US$ 11.3)
in 1Q03 compared to R$ 42 recorded in 1Q02 and R$ 44 in 4Q02.
Prepaid ARPU decreased 22.7% compared to 1Q02 and postpaid ARPU
increased 11.2%. In comparison to 4Q02, prepaid ARPU decreased
32.0% and postpaid ARPU increased 5.8% in the same period.
Excluding adjustments (see Basis of Presentation), blended ARPU
would have reached R$ 43 (US$ 12.8), remaining fairly stable when
compared to R$ 42 in 1Q02 and to R$ 44 recorded in 4Q02. Prepaid
ARPU would have increased 4.6% and 35.3% compared to 4Q02 and
1Q02, respectively.

GLOBAL TELECOM S.A.

Global Telecom is the B Band mobile operator in the states of
Paran  and Santa Catarina, where TCP indirectly holds 100% of the
total capital.

OPERATING DATA

Market share increased to 41% in 1Q03 from 36% in 1Q02, and was
stable comparing to 4Q02. As a consequence, total client base
increased 32.8% compared to 1Q02, and 2.1% compared to the
previous quarter, reaching 1,232 thousand subscribers, following
the intensification of marketing initiatives.

Net additions in the quarter reached 25 thousand in 1Q03, 41.9%
lower when compared to 1Q02, and 83.3% lower when compared to
4Q02, due to cleaning up the customer base and the seasonality of
the period.

Postpaid Minutes of Use (MOU) amounted to 157 in 1Q03, a 18,9%
increase compared to 132 in 1Q02. Blended MOU was 91 in 1Q03, a
9.9% decrease compared to 101 in 1Q02 and a 5.2% decrease
compared to 4Q02.

Postpaid ARPU in 1Q03 reached R$ 73 (US$ 21.8), a 25.9% increase
compared to 1Q02, as a result of a higher traffic volume due to
specific campaigns focusing on profitable growth. Compared to
1Q02, prepaid ARPU increased 4.5% and blended ARPU was stable in
R$34.

REVENUES

Net revenues totaled R$ 927.3 million (US$ 276.6 million) in
1Q03, a 8.9% increase compared to the same period of 2002 and a
14.3% decrease compared to 4Q02.

Excluding adjustments effect (see Basis of Presentation), net
revenues would have totaled R$ 1,078.4 million (US$ 321.6
million), a 26.6% increase compared to the same period of 2002
and a slight 0.3% decrease compared to 4Q02. Emphasis is given to
net revenues from handsets sales, which would have shown a 66.2%
increase compared to 1Q02.

WIRELESS DATA

Telesp Celular and Global Telecom maintained their clear focus on
the launch and management of wireless data services this quarter,
with special attention given to Messaging services targeted to
teenagers and young adults (both SMS and WAP) and to connectivity
and productivity tools targeted to corporate clients (using the
1xRTT network).

As a result, net revenues from Wireless Data/Wireless Internet
increased to R$ 24.6 million (Telesp Celular R$ 21.3 million and
Global Telecom R$ 3.2 million) in the first quarter of 2003, a
growth of nearly 130% when compared to the 1Q02. This amount is
equivalent to 3.0% of total net revenues (including
interconnection on both operations). The share of wireless data
revenues over total revenues, considering only the revenues from
clients with enabled phones (those phones which are
technologically capable of using data services), already reached
5.2%. These figures demonstrate the high growth potential of
Wireless Data Services.

Also, strong efforts were made in order to rationalize the
portfolio of data products and services (P&S), unifying the
portfolio, partnerships and renegotiating contracts, in order to
reduce costs and improve marketing management, such as
promotions, launch of new P&S and advertising campaigns.

2.5 GENERATION

More than a year after the launch of 2.5G (December 2001), over
150,000 handsets sold in the 1Q03 were based on this technology.
Additionally, over 670 corporate clients are currently using
PCMCIA Wireless cards or 2.5G handsets with data transmission
cables allowing high-speed connections from their laptops and
palmtops, totaling more than 11,000 lines, 22% more than December
2002.

The service coverage expanded significantly. Besides metropolitan
area of the city of Sao Paulo (that includes ABCDOG region and
Guaruj /Bertioga), TCP has launched 1XRTT at Campinas and
Santos/Cubatao in Sao Paulo and Curitiba/Sao Jos‚ dos Pinhais in
Paran  - expanding 1XRTT network and services to Global Telecom
clients - in order to offer expanded mobility for these clients,
gaining scale for the investment and demonstrating the strong
commitment that TCP has on the new technology and results
recently obtained.

MOBILE EXECUTION ENVIRONMENTS

On January 30th, 2003, TCP announced the rollout of the first
wireless download service in Latin America. The DOWNLOADS service
provided by Qualcomm's BREW(tm) solution (Binary Runtime
Environment for Wireless) allows users to download and run
software in their handsets, transforming them into mini
computers. The service was officially launched at Telexpo on
March 26th, demonstrating more that 10 applications such as
games, city guides, email, ring tones and wallpapers, etc.

The Company is confident on the growing potential of DOWNLOADS
service. TCP is the first company to offer these services in
Latin America. The company believes that BREW(tm) platform will
be the start of an attractive, fun and useful navigation
experience using the wireless technology.

OPERATING COSTS

Operating costs, excluding depreciation and amortization, totaled
R$ 519.8 million (US$ 155.0 million), a 5.3% decrease compared to
1Q02. Compared to 4Q02, operating costs decreased 18%, basically
reflecting the adjustments made to handsets sales and costs, and
to costs associated with the reloading of prepaid handsets, which
impacted the costs of services, and the reversal of the ICMS tax
(see Basis of Presentation).

Cost of equipment sold reached R$ 135.1 million (US$ 40.7
million) in 1Q03, a 10.9% increase compared to 1Q02. Compared to
4Q02, cost of equipment decreased 42.2%.

Excluding adjustments effects (see Basis of Presentation), cost
of equipment would have totaled R$ 223.6 million in 1Q03 (US$
66.7 million), a 83.6% increase compared to 1Q02, mainly due to
the increase in sales volume and higher cost of handset and a
4.3% decrease in comparison to 4Q02, as a result of a seasonal
lower client base growth.

Cost of services totaled R$ 136.6 million (US$ 40.7 million) in
1Q03, decreasing 18.7% and 13.1% when compared to 1Q02 and 4Q02,
respectively.

Excluding adjustments effects, costs of services would have
amounted R$ 169.2 million (US$ 50.5 million), a 0.7% and a 7.6%
growth over 1Q02 and 4Q02, respectively, primarily as a result of
interconnection rate increase in mid-February.

Selling expenses in 1Q03 reached R$ 176.1 million (US$ 52.5
million), a 32.9% increase compared to 1Q02 and a 19.7% increase
compared to 4Q02.

Excluding adjustments effects, selling expenses would have
totaled R$ 166.2 million (US$ 49.57 million) in 1Q03, a 25.4% and
13% increase compared to 1Q02 and 4Q02, respectively. This
increase is a result of the Company's preparation to the launch
of its new brand, "VIVO" and stronger marketing efforts, as a
consequence of a slight competition increase.

Delinquency level represented 1.4% of gross revenues (1.2%
excluding adjustments), a 1.0 p.p. reduction compared to 1Q02,
due to a better quality of the current post paid client base and
also to the credit control policy regarding dealers and corporate
clients.

Subscriber Acquisition Cost (SAC) at Telesp Celular in 1Q03 was
R$ 125 (US$ 37.3), which compares to R$ 93 in 1Q02 and to R$ 100
in 4Q02.
Subscriber Acquisition Cost (SAC) at Global Telecom in 1Q03 was
R$ 163 (US$ 48.6), which compares to R$ 86 in 1Q02 and to R$ 144
in 4Q02.

EBITDA

EBITDA totaled R$ 407.5 million (US$ 121.5 million), a growth of
34.4% over 1Q02. Compared to 4Q02, EBITDA decreased 9.0%.

EBITDA margin increased from 35.6% in 1Q02 and from 41.4% in 4Q02
to 43.9% in 1Q03.

Excluding handset revenues and handset costs, EBITDA margin
reached 46.9% in 1Q03, compared to 57.1% in 1Q02 and 45.3% in
4Q02.

FINANCIAL EXPENSES

Net financial expenses in 1Q03 totaled R$ 252.4 million (US$ 75.8
million), a 46,0% increase compared to 1Q02, mainly due to an
increase in interest rates from a level of 19% per annum to 26.5%
per annum and a tighter credit market that translated into higher
cost of funding for TCP. Compared to 4Q02, financial expenses had
a 43,3% decrease. Excluding the extraordinary financial expenses
charge the company recognized in 4Q02 in the amount of R$ 266.7
million on the portion of its derivatives positions that accrue
costs linked to both the CDI interest rate and the US Dollar spot
rate, net financial expenses in 4Q02 would have been R$ 178,3
million, a 41,6% increase in the 1Q03. This seemingly increase
was affected by a R$ 66 million gain in forward contracts that
was realized in 4Q02 and was accounted for as a deduction to
financial expenses. The carrying cost of the long position in
Euro was R$ 29 million.

Although operating in a still unfavorable credit market and
having to roll over a significant amount of short term debt, the
company was successful in continuing its effort to reduce cost of
funding.

NET INCOME / LOSS

The Company reported a net loss of R$ 131.5 million in 1Q03 (US$
39.2 million).

CAPITAL EXPENDITURES

Capital expenditures in this quarter were R$ 80 million (US$ 23.9
million). This amount represents 8.6% of net revenues in 1Q03,
while in the same period of last year it was equivalent to 8.0%
of net revenues. Excluding adjustments (see Basis of
Presentation), this amount would have represented 7.4% of net
revenues, demonstrating the benefits of a thorough investment
policy.

DEBT

TCP's gross consolidated debt at the end of March 2003 was R$
4,736.1 million (US$ 1,412.5 million), of which approximately 51%
financed by Portugal Telecom. This is a 4.9% decrease compared to
R$ 4,979.1 million at the end of March of 2002.

On March 31st 2003, 71% of the debt was denominated in foreign
currency. On a consolidated basis, TCP was US$ 9 million long on
the US dollar and EUR 299 million long on the Euro, which
represents an overhedged position of approximately EUR 335
million. Beginning in April 2003, the company, as indicated in
4Q02 release, has started to unwind its long position in Euros in
order to benefit from a declining forward curve in interest
rates. The net effects from these transactions will be
contemplated on the 2Q03 results.

Net debt March 31st, 2003, taking into account cash and hedging
results, was R$ 2,877.3 million (US$ 858.1 million), a 3.8%
increase compared to December 31st, 2002 (R$ 2,772.2 million).

The gearing ratio (Net Debt/(Net Debt+Equity)) stood at 42.6% in
the 1Q03.

CONTACTS:  Fernando Abella, Investor Relations Officer
           fernando.abella@vivo.com.br
           (5511) 3059-7061

           Edson Alves Menini, Relations Adviser
           emenini@vivo.com.br
           (5511) 3059-7531

           Fab¡ola Michalski
           fmichalski@vivo.com.br
           (5511) 3059-7975

           Cl udio Wenzel Lagos
           clagos@vivo.com.br
           (5511) 3059-7480


TELEMAR: Merrill Downgrades Recommendation To "Neutral"
-------------------------------------------------------
Merrill Lynch reduced its recommendation on Tele Norte Leste
Participacoes SA (Telemar), Brazil's largest phone company, to
"neutral" from an earlier "buy."

The move, according to Dow Jones, reflected Merrill Lynch's
concern that there's little room for further improvement in the
country's economic outlook.

In a research note, Merrill Lynch analysts said Congress is now
in the process of negotiating key reforms in Brazil's social
security and tax law. Negotiations could be time-consuming and
very "noisy" (particularly social security,).

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          terziani@telemar.com.br
          55 21 3131 1208

          Carlos Lacerda
          carlosl@telemar.com.br
          55 21 3131 1314

          Fax: 55 21 3131 1155

          GLOBAL CONSULTING GROUP
          Rick Huber, richard.huber@tfn.com
          Mariana Crespo, mariana.crespo@tfn.com

          Tel: 1 212 807 5026
          Fax: 1 212 807 5025

Investor Relations Website: www.telemar.com.br/ri



=========
C H I L E
=========

EDELNOR: No Merger With Electroandina This Year, Says Chairman
--------------------------------------------------------------
Edelnor chairman Eric de Muynck said that a merger between the
Chilean generator and fellow generator Electroandina will
"definitely not" be in 2003, relates Business News Americas.

Belgian power company Tractebel and Chile's state copper company
Codelco own 82.3% of Edelnor through the Inversiones Mejillones
holding company that Tractebel controls. The shareholders also
own generator Electroandina, which like Edelnor operates in the
northern grid (SING).

The shareholders have spoken in the past about merging the two
generators. But Muynck suggested that the operation will be
defined in 2004 when financial situations are expected to improve
and if shareholders maintain their commitment to the merger.

According to Edelnor CEO Juan Claver¡a, the two generators are
already developing operating synergies, such as securing lower
coal prices through larger purchases, and this is resulting in
annual savings of US$1mn-2mn.

CONTACT:  Empresa Electrica Del Norte Grande SA
          Avenida Grecia 750
          Antofagasta, Chile
          Phone: +56 55 248500
          +56 55 248094
          Contact: Fernando del Sol, Chairman

          Tractebel Energia SA
          Registered Office
          Rua Antonio Dib Mussi, no 366
          Centro
          88015 - 110 Florianopolis - SC
          Brazil
          Tel  +55 48 221-7016
          Fax  +55 48 221-7015
          Web  http://www.gerasul.com.br
          Contacts:
          Mauricio Stolle Bahr, Chairman
          Eric L.J. de Muynck, Vice Chairman


EDELNOR: To Boost Sales To Smaller-Scale Unregulated Clients
------------------------------------------------------------
After adding some 30MW in sales to smaller-scale unregulated
clients last year, Chilean generator Edelnor is again looking to
add a similar amount this year, Business News Americas reports,
citing a company executive.

The effort, according to Edelnor chairman Eric de Muynck, is part
of the Company's move to increase the amount of power it sells
under contract.

Meanwhile, Edelnor is one of the two pre-qualifiers to supply
90MW to mining company BHP Billiton's Spence project. A decision
is expected in May, CEO Juan Claver¡a said.

Edelnor lost its principal contract to supply the Emel group of
distributors from January 1, 2002. Presently only some 100MW of
the company's 700MW installed capacity is under contract, and
only 400-500MW of the remainder is competitive, De Muynck added.



=============
J A M A I C A
=============

JUTC: Bound To Lose Another $1 Billion This Year
------------------------------------------------
The State-Owned Jamaica Urban Transit Company (JUTC) may lose
another $1 billion this budget year, said RJRNews.Com, adding
that the amount represents an improvement of 14 % over the loss
of $1.6 billion for the previous year.

In a document submitted to the Jamaica Public Sector Entities
Estimates of Revenue and Expenditure for the year ending March
2004, the Company said, "recurring losses are expected to be
reduced with the institution of several cost cutting measures."

The Company's cost cutting measures include the Smart Card
cashless fare collection system, improved servicing for the
buses, and dismantling and/or regulating illegal operators and
sub-franchise holders. The report added that a fare increase may
not be far behind.

These measures are expected to reduce the present loss per
passenger figure of $19 to $14 by next year. Currently, the
airline's fare structure recovers only 55 percent of the total
costs.

Swedish consultants hired to turn the Company around recommended
a 90 percent fare hike, but this would require the approval of
the Cabinet and other regulatory agencies before implementation.


SCJ: Still In The Red But Aims To Return To Black Next Year
-----------------------------------------------------------
The Sugar Company of Jamaica (SCJ), which operates Government run
sugar estates, continues to report losses, reports RJR News.com.

A Ministry Paper tabled on Public Sector Entities states that the
SCJ posted a 547-million-dollar loss for 2002 to 2003. The figure
brings the Company's accumulated deficit to six-point-four
billion dollars.

But, according to the Company's five-year projection, 2002-2003
will be the last year of losses. The Company expects to return to
profit from this financial year onwards with an expected increase
in revenue from the production of cane and sugar.



===========
M E X I C O
===========

EMPRESAS ICA: Reports Unaudited First Quarter 2003 Results
----------------------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction, and procurement
company in Mexico, announced Monday its unaudited consolidated
results for the first quarter of 2003.

ICA noted the following highlights:

- ICA recorded first quarter revenue of Ps. 1,891 million and an
operating profit of Ps. 47 million.

- ICA's consolidated backlog as of March 31, 2003 was Ps. 14,346
million, equivalent to 27 months of work at first quarter levels,
and is almost three times the level at the end of 2002.

- New contracts and contract extensions for Ps. 10,382 million
were obtained during the first quarter, including the El Cajon
hydroelectric project (Ps. 8,052 million) and the Chincotepec oil
field development (Ps. 1,336 million).

- Total debt as of the end of the first quarter of 2003 fell Ps.
553 million, or 10 percent, compared to the same period of 2002.
During the quarter, US$ 96.3 million of the convertible bond,
which matures in March 2004, was reclassified from long to short-
term.

- Divestment of non-strategic assets was Ps. 61million during the
first quarter.

- General and administrative expense fell 24 percent in the first
quarter, compared to the same period of 2002.

- The El Cajon project requires the use? of cash resources and
the pledging of assets as collateral to secure performance bonds
and to obtain construction financing. This will reduce ICA's cash
and assets available for disposition and strain its liquidity in
the short term.

ICA recorded a net loss of majority interest of Ps. 262 million
in the first quarter of 2003, compared to a loss of Ps. 59
million in the same period of 2002.

CONTACT:  Dr. Jos, Luis Guerrero
          (5255) 5272-9991 x2060
          jose.guerrero@ica.com.mx

          Lic. Paloma Grediaga
          (5255) 5272-9991 x3470
          paloma.grediaga@ica.com.mx

          In the United States:
          Zemi Communications
          Daniel Wilson
          (212) 689-9560
          d.b.m.wilson@zemi.com


GRUPO ELEKTRA: 1Q EBITDA Increases 14% to Record P738 Million
-------------------------------------------------------------
-- Banco Azteca More Than Doubles Net Deposits Reaching 1.5
Billion Pesos --

-- Net Debt Declines 40% --

Highlights:

- 1Q03 EBITDA rose 14% YoY to a record Ps. 738 million from Ps.
647 million in 1Q02, largely as a result of a 4.5% YoY growth in
consolidated revenue and on-going cost and expense controls.
Furthermore, new compensation scheme based on contribution
(revenue minus cost and expenses minus imputed cost of capital),
continues to positively impact results.

- In only five months of operation, Banco Azteca's net deposits
surpassed Ps. 1.5 billion, a 243% increase from initial net
deposits transferred from Serfin. Additionally, after only four
months of operation, Banco Azteca's gross portfolio reached more
than Ps. 2.6 billion.

- Net debt declined 40% YoY and 24% QoQ to Ps. 1.539 billion in
1Q03 from Ps. 2.553 billion in 1Q02 and Ps. 2.023 bn in 4Q02,
respectively. During 1Q03, Grupo Elektra paid off its US$130
million syndicated loan and US$52 million of its outstanding Euro
commercial paper. Furthermore, Grupo Elektra was able to
accelerate and complete the anticipated amortization of its
outstanding public securitization program representing an amount
of Ps 2.450 billion. The resources for these payments came
largely from the cash position of the company, the issuance of
debt in pesos for approximately Ps. 550 million and a series of
transaction including the sale of assets to Banco Azteca used for
its day-to-day operations.

Grupo Elektra S.A. de C.V. (NYSE:EKT, BMV: ELEKTRA*), Latin
America's leading specialty retailer, consumer finance and
banking services company, reported Monday financial results for
the first quarter of 2003.

Javier Sarro, Chief Executive Officer of Grupo Elektra,
commented: "Results for the first quarter of the year were in
line with expectations. We continued to deliver strong cash flow
amidst a still uncertain consumer environment. This was largely
achieved on top of an increased market share that further
consolidates our leadership in the specialty retail segment and
our successful on-going cost and expense controls."

He continued: "In addition, we are now fully reaping the benefits
of our new compensation scheme, which was gradually implemented
throughout the last 18 months. Geared by contribution, the scheme
is an excellent complement to our on-going efforts to control
costs and expenses at all levels of the organization."

"The first full quarter of operations of Banco Azteca was
extremely encouraging as we were able to exceed the goals set for
our deposit and consumer loans products. This creates a solid
base to gradually increase our selection of quality financial
products and services directed to Grupo Elektra's large retail
customer base", said Carlos Septi‚n, Chief Executive Officer of
Banco Azteca.

Rodrigo Pliego, Chief Financial Officer of Grupo Elektra, stated:
"Our financial strategy for 2003 will benefit all our
stakeholders. Our main objectives in the short-term are to pre-
pay expensive debt and to reduce our exposure to dollar-
denominated liabilities. This will allow us to reduce financial
expenses for Grupo Elektra. In addition, the transactions
conducted with Banco Azteca represent the separation of assets
and elimination of inter-company agreements between the retail
division and the bank". (Note: for details on these transactions
please see press release dated March 24, 2003 which is available
in our award-winning website at www.grupoelektra.com.mx).

1Q03 Financial Highlights:

In response to the feedback received from market participants and
in order to enhance the transparency of our reports, we are
presenting the results of Banco Azteca under the equity
participation method. All figures and discussions detailed in
this press release result from the application of this accounting
method that provides a clearer overview of the separated results
of our retail division and of Banco Azteca.

Comments on 1Q03 results:

Revenue

Total revenue increased 4.5% YoY largely due to a 7.7% YoY
increase in revenue of the retail division. This was in turn due
to a strong performance of the Elektra and Bodega de Remates
store formats, where revenue increased by 6.7% and 33.7%,
respectively, over the same period. The positive performance of
the retail division was partially offset by a 9.2% YoY decrease
in revenue of the consumer finance division. This was due to the
fact that Grupo Elektra, through its Elektrafin subsidiary,
ceased to provide consumer credit as of December 1, 2002. Since
that date, Banco Azteca started offering consumer loans for
customers of Grupo Elektra.

Gross Profit

Gross profit experienced a strong, 7.8% YoY increase thanks to
the above mentioned revenue increase and margin expansion in our
credit division, from 76.3% in 1Q02 to 95.8% in 1Q03. This
results from the application of the equity method, through which
the provision for doubtful accounts (i.e. a cost) has been
generated at Banco Azteca since December 1, 2002.

EBITDA and Operating Profit

The increase in revenue, coupled with the expansion in gross
margin and a marginal 2.5% YoY increase in operating expenses
resulted in a 14.0% YoY increase in EBITDA. Operating expenses
remained in check due to our ongoing cost and expense control
programs and our new compensation scheme based on contribution,
which makes employees at all levels of the organization more
careful with expenditures.

Meanwhile, operating profit increased by 13.9% YoY as
depreciation and amortization expenses rose 22.3% over the same
period due to the fact that the pre-payment of the public
securitization program of accounts receivable forced us to fully
amortize Ps. 47.2 million of issuing expenses of the program,
which were being gradually amortized over its life.

Comprehensive Cost of Financing

Strong operating performance was largely offset by a
comprehensive cost of financing of Ps. 362.6 million in 1Q03,
compared to Ps. 0.6 million in 1Q02. The Ps. 362.0 million YoY
increase is explained by:

- A Ps. 137.9 million increase in net interest expense coming
from:

  - Ps. 49.7 million lower interest income resulting from lower
    interest rates, and

  - Ps. 88.1 million higher interest expenses due to the penalty
    fee paid for the pre-payment of the public securitization
    program of accounts receivable and interests paid on the new
    private securitization program. The basis to calculate
    interests on the new securitization program leads to high
    front-ended payments which diminish over its life, compared
    to the straight line basis of calculation on the former
program.

- FX losses of Ps. 171.3 million in 1Q03 compared to FX gains of
Ps. 63.6 million in 1Q02.

- These increases in financial expenses were partially offset by
a monetary gain that was Ps. 10.7 million higher than that of the
same quarter last year.

Net Profit

The above mentioned increase in the comprehensive cost of
financing, coupled with a Ps. 41.7 million loss in Banco Azteca
and a Ps. 60.9 million loss from our investment in CASA, led to a
net loss for 1Q03 of Ps. 65.1 million, compared to a Ps. 275.3
million net profit during 1Q02.

1.0 Retail Division

During 1Q03 we benefited from our enhanced "Nobody Undersells
Elektra" strategy. Sales volumes were positively impacted as
evidenced by the YoY revenue increases in all our store formats
(8%, 30% and 6% for Elektra, Bodega de Remates and Salinas y
Rocha, respectively) and our core product lines (6.7% in the
combined revenue of electronics, household appliances, furniture
and small appliances).

We believe the volume increases, coupled with better terms from
suppliers, offset the negative impact on gross margins. Since
Banco Azteca started offering consumer loans to our customers,
our retail division gets paid in cash for all customer sales,
regardless of whether they are made with cash or credit. As a
result of this, we have been able to negotiate better terms from
suppliers,.

The following are explanations of certain highlights.

Telephones (Wireless Products and Services). The low penetration
of telephony services, which is especially prevalent within the
target market of Grupo Elektra, still provides a high growth
potential opportunity for this category of products. During 1Q03,
we continued to grow revenue and, most importantly, gross profit
in this increasingly important product line as we benefit from a
broader selection of wireless products. Revenue increased 29% to
Ps. 236.1 million from Ps. 182.7 million in 1Q02. Meanwhile,
gross profit increased 42% to Ps. 55.7 million in 1Q03 from Ps.
39.1 million in 1Q02.

Western Union. Momentum for our electronic money transfer
business continued to build thanks to our successful advertising
and promotional campaigns. We expect the positive trend
experienced in this business during recent quarters to continue
throughout 2003. During 1Q03 we were able to increase the number
of transactions in our US to Mexico electronic money transfer
business by 44% to 900,000. This represents an amount transfered
of US$214 million, a 67% YoY increase. This led to a revenue
increase of 22% in 1Q03 to Ps. 87.6 million from Ps. 72.1 million
in 1Q02. Over the same period gross profit increased 22% to Ps.
85.9 million in 1Q03 from Ps. 70.5 million in 1Q02.

Dinero Express. During 1Q03 revenue from our domestic electronic
money transfer service increased 33% to Ps. 59.5 million from Ps.
44.9 million in 1Q02. Revenue was boosted by a 37% increase in
the number of transfers from 585,000 in 1Q02 to 804,000 in 1Q03.
This represents a 34% increase in the amount transferred, from
Ps. 653 million in 1Q02 to Ps. 877 million in 1Q03.

Computers, Peripherals and Accessories. The increased promotional
efforts launched in 4Q02 to increase volumes in this important
line of products paid off. As a result, revenue during 1Q03
reversed its negative trend, growing by 1% to Ps. 154.9 million
from Ps. 153.3 million in 1Q02.

2.0 Banco Azteca Operations

2.1 Banco Azteca and Credimax Consumer Loans

Banco Azteca started issuing its own consumer loans for durables
and personal loans as of December 1, 2002, while Credimax ceased
to issue new consumer loans in Mexico on the same date after a
smooth and efficient transition process. The outstanding
portfolio of Credimax in Mexico is being extinguished during
2003. The outstanding credit portfolio and the new accounts
generated in our operations in Guatemala, Honduras and Peru
remain at Credimax.

The average term of the combined credit portfolio (Credimax +
Banco Azteca) at the end of 1Q03 was 50 weeks, representing one-
week and two-week increases from the 49 weeks and 48 weeks
reported in 4Q02 and 1Q02, respectively. The rationale behind the
extension in payment terms promoted since September 2001 is that
extending terms makes financing more attractive, while securing a
longer revenue stream for the company. In addition, it is also a
response to the competitive threat posed by the lengthening of
credit terms from our main competitors.

At the end of 1Q03, we had a combined total of 2.218 million
active credit accounts, compared to 1.880 million in 1Q02, a 18%
increase. Combined gross customer accounts receivable reached Ps.
4.7 billion, compared to Ps. 4.3 billion at the end of 1Q02. Out
of these totals, Banco Azteca had over 1.1 million active credit
accounts and a Ps. 2.62 billion credit portfolio (Ps. 2.54
billion and Ps. 80 million in consumer and personal loans,
respectively). The collection rate of Banco Azteca remains at the
same excellent historic level maintained by Grupo Elektra.

2.2 Banco Azteca Guardadito Savings Accounts

Banco Azteca's savings program continues with its positive trend
started since its first day of operation at the end of October
2002. Net deposits reached Ps. 1.5 billion at the end of 1Q03, a
98% QoQ increase compared with net deposits of Ps. 786 million at
the end of 4Q02. Over the same period, the number of accounts
rose by 536,000 to 1.6 million approximate and the average
balance per account increased 36% from Ps. 714 in 4Q02 to Ps. 974
pesos in 1Q03.

3.0 Balance Sheet

Total debt with cost was Ps. 3.8 billion at the end of 1Q03, with
80% of it placed long term, compared with Ps. 4.8 billion for the
year-ago period. Net debt at the end of 1Q03 was Ps. 1.5 billion,
a 40% decrease compared to Ps. 2.6 billion at the end of 1Q02.
The above was the result of the financial strategy implemented by
the company for 2003 with the short-term objective of pre-paying
expensive debt and reducing exposure to dollar-denominated
liabilities. During 1Q03 Grupo Elektra paid off its US$130
million syndicated loan and US$ 52 million of its outstanding
Euro commercial paper. In addition, the company was able to
complete the anticipated amortization of its outstanding public
securitization program representing a face value amount of Ps
2.45 billion.

The resources for the above-mentioned payments came largely from
the cash position of the company, the issuance of debt in pesos
for approximately Ps. 550 million, the sale of assets to Banco
Azteca used in its day-to-day operations (Ps. 650 million) and a
series of private securitization of accounts receivable conducted
by Elektrafin (Ps. 1.7 billion). Banco Azteca acquired the
preferred certificates issued by a trust in connection with such
securitizations. These transactions led to the proper allocation
of assets and enhance the transparency between banking and
retailing operations

CONTACT:  Grupo Elektra SA de CV
          Insurgentes Sur 3579
          Colonia Tlalpan La Joya CP
          Mexico 14000
          Phone: +52 55 5228 700
          Home Page: http://www.grupoelektra.com.mx
          Contact:
          Ricardo B. Salinas Pliego, Chairman


GRUPO TMM: Amends Exchange Offers
---------------------------------
Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A), announced Monday that
it has extended the expiration date of its previously announced
exchange offers and consent solicitations for all of its
outstanding 9« percent Senior Notes due 2003 ("2003 notes") and
its 10¬ percent Senior Notes due 2006 ("2006 notes") until 5:00
p.m., New York City time, on May 2, 2003. As of 5:00 p.m., New
York City time, on April 25, 2003, approximately 25.41 percent of
the outstanding 2003 notes, or $44,950,000 principal amount, had
been tendered and not withdrawn, and 78.46 percent of the
outstanding 2006 notes, or $156,921,000 principal amount,
representing a majority of the 2006 notes, had been tendered and
not withdrawn.

As previously announced, Grupo TMM has filed an amendment to its
the registration statement relating to the exchange offers and
consent solicitations. This amendment has not yet been declared
effective by the Securities and Exchange Commission, however, and
the amendment to the exchange offers and consent solicitations
will be made available to holders only upon declaration of
effectiveness. Grupo TMM intends to extend the expiration date at
the time of such declaration, in order to allow investors to
consider the amended exchange offers and consent solicitations at
that time.

Citigroup Global Markets Inc. is acting as the dealer manager for
the exchange offers and consent solicitations.

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in TFM, which operates
Mexico's Northeast railway and carries over 40% of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and
TFM's web site is www.tfm.com.mx.

The exchange offers and consent solicitations are made solely by
the prospectus contained in the registration statement referred
to above, the related letter of transmittal and consent, and any
amendments or supplements thereto. Copies of the prospectus and
transmittal materials can be obtained from Mellon Investor
Services LLC, the information agent for the exchange offers and
consent solicitations, at the following address:

Mellon Investor Services
44 Wall Street, 7th Floor
New York, NY 10005
(888) 689-1607 (toll free)
(917) 320-6286 (banks and brokers)

These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement amendment
becomes effective. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any State in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such State. The exchange offers and consent solicitations are not
being made to, nor will tenders be accepted from, or on behalf
of, holders of existing Notes in any jurisdiction in which the
making of the exchange offers and consent solicitations or the
acceptance thereof would not be in compliance with the laws of
such jurisdiction. In any jurisdiction where securities, blue sky
laws or other laws require the exchange offers and consent
solicitations to be made by a licensed broker or dealer, the
exchange offers and consent solicitations will be deemed to be
made on behalf of Grupo TMM by the dealer manager or one or more
registered brokers or dealers licensed under the laws of such
jurisdiction.


PROVO: Restructures Trade Debt With TelMex
------------------------------------------
Frontline Communications Corp. (AMEX:FNT), www.fcc.net, announced
Monday that its recently acquired Mexican-based Provo division
has successfully restructured and reduced its trade debt facility
with its leading supplier, Telefonos de Mexico S.A. de C.V.
(TelMex).

Provo has utilized a credit line offered by TelMex over the past
eight (8) years, with an average balance of approximately $12
million, allowing Provo to become TelMex's top distributor in
Mexico. As part of the restructuring, TelMex accepted a portion
of Provo's non-revenue producing real estate assets in return for
$4 million in debt reduction, and converted the balance into a
number of term loans with varying re-payment schedules. Now, as a
result of the restructuring, Provo has begun making all inventory
purchases from TelMex on a cash basis.

In explaining the importance of the restructuring, Ventura
Martinez del Rio Requejo, the President of Provo, stated,
"Historically, when purchasing inventory on credit from TelMex,
which represents almost two thirds of our total sales, our
operating margins have averaged about 2%. As a result of long
standing TelMex sales policies, purchasing inventory on a cash
basis will result in further product discounts from TelMex, and
should more than double those margins to as much as 5%." Mr.
Martinez del Rio also stated that the company expects to begin
seeing early results of the margin improvements in the second
quarter of 2003.

About Frontline Communications Corp.

Founded in 1995, Frontline Communications Corporation, traded on
the American Stock Exchange under the symbol FNT, has two
operating divisions, Provo and Frontline.

The Provo division (www.provo.com.mx), acquired by Frontline
Communications Corp. in April, 2003, is a Mexican corporation
which maintains a dominant position within the prepaid calling
card and cellular phone airtime markets in Mexico. Provo and its
affiliates have been in operation for over seven years, and had
combined reported (unaudited) revenue in 2002 of approximately
$100 million, with operating profits of over $800,000. The
company currently anticipates expanding existing Provo services
to the continental United States, and intends to begin marketing
cash cards, payroll cards and other forms of payroll and money
transfer services, through both the Frontline and Provo
divisions, in the near future.

The Frontline division provides high-quality Internet access and
Web hosting services to homes and businesses nationwide.
Frontline also offers Ecommerce, programming, and Web development
services through its PlanetMedia group, www.pnetmedia.com. The
Frontline division had revenue of approximately $5 million in
2002.

CONTACT:     Frontline Communications Corp., Pearl River
             Stephen J. Cole-Hatchard
             Phone: 845/623-8553 X2200
             Fax:   845/623-8669
             scolehatchard@fcc.net
                                   or
             Investor Relations
             Phone: 845/623-8553 X2200
             Fax:   845/623-8669
             investorrelations@fcc.net


TV AZTECA: JP Morgan Ups Share Recommendation
---------------------------------------------
J.P. Morgan revealed Monday that it upgraded its investment
recommendation on shares of Mexican broadcaster TV Azteca SA
(TZA) to "Overweight" from "Neutral."

According to Dow Jones, the upgrade came after TV Azteca
announced plans for a US$140 million dividend payment, including
a first US$125 million tranche to be distributed in June.

Although a number of important questions remain unanswered on the
current debt rollover and refinancing process of Azteca Holdings,
which has a controlling 55% stake in TV Azteca, "the risks posed
to minority shareholders of TV Azteca would be considerably
reduced by the payment of the proposed dividend," Analyst Jean-
Charles Lemardeley said in a research note.


VITRO: Reports Unaudited 1Q03 Results
-------------------------------------
Results for the quarter reflected the weakness prevailing in
macroeconomic conditions in the U.S. and Mexico. Additionally,
performance during the quarter was affected by the impasse during
the pre-war period, as well as a colder than expected winter in
the U.S. Furthermore, the 18.3 percent YoY devaluation of the
Mexican Peso vs. the U.S. dollar affected the YoY comparison of
the Company's results when converted into dollars (even though,
in the long-run it benefits its competitive domestic position
over imports, as well as exports). In terms of sales,
approximately 50 percent of the Company's sales are domestic, and
even though 66 percent of them are dollar-linked, there's a
lagged-effect in terms of price increases subsequent to
devaluation in certain segments. In terms of costs, approximately
75 percent of the Company's cost structure is dollar-linked.

Highlights for the quarter were as follows: - Consolidated net
sales for the quarter declined YoY by 6.2 percent to US$525
million - Consolidated EBITDA for the quarter decreased YoY by
21.8 percent to US$80 million - Consolidated net loss for the
quarter of US$15 million, as a result of a non-cash exchange loss
of US$23 million, and the absence, when compared to 1Q'02, of the
legal tax rate reduction, which benefited deferred taxes last
year - Consolidated outstanding debt remained flat QoQ. This
includes the net outstanding balance of the proceeds from a
medium term note issued on February 2003 for Ps$1.14 billion as
well as the additional restricted cash associated with a
syndicated facility executed at Flat Glass on 1Q'03 and the
temporary repurchase of invoices from an off-balance factoring
agreement. -- Consolidated net sales. Sales were affected by the
difficult macroeconomic conditions during the first quarter
aggravated by the deadlock generated during the pre-war period.
The divestiture of Ampolletas on April of 2002 accounted for 23
percent of the YoY decline for the quarter. Also, as mentioned,
the 18.3 percent YoY devaluation of the Mexican Peso against the
U.S. dollar affected the YoY comparison. Excluding the currency
devaluation effect, sales YoY would have decreased by 3.3 instead
of a 6.2 percent. Flat Glass' sales declined by 2.0 percent YoY,
or US$6 million, mainly within the U.S. non-residential
construction segment and the OEM auto market. At Glass
Containers, sales declined 10.8 percent, or US$25 million, due
to: the divestiture of Ampolletas, which accounted for 32 percent
of the decline; the distortion created by the currency
devaluation effect, and a particularly cold winter in the U.S.
that had a negative impact on beer and soft drink consumption.
Glassware' sales decreased by 11.2 percent, or US$7 million, also
affected in dollar terms from the currency devaluation effect YoY
and by lower sales in the industrial domestic segment. --
Consolidated EBITDA. Assuming constant exchange rates,
consolidated EBITDA would have decreased by 18.5 instead of 21.8
percent. In addition, 18 percent of the reduction in EBITDA YoY
is attributed to a strategic decision to reduce inventory levels
during 1Q'03 vs. 1Q'02. For the quarter, EBITDA at Flat Glass
declined YoY by 3.1 percent, or US$1 million, as a result of
lower sales. At Glass Containers, EBITDA declined YoY by 30.6
percent, or US$17 million, as the result of lower fixed costs
absorption and lower sales. Also, the Ampolletas' divestiture
accounted for 10 percent of the decline. At Glassware, EBITDA
declined YoY by 49 percent, or US$5 million, as a result of lower
fixed costs absorption. -- The Company reported a consolidated
net loss of US$15 million, which includes a non-cash exchange
loss of US$23 million, compared with a non-cash exchange gain of
US$21 million on 1Q'02, and a negative effect on the YoY
comparison over taxes of US$12 million resultant of the absence,
when compared to 1Q'02, of the legal tax rate reduction which
benefited deferred taxes last year. -- On March 31, 2003,
consolidated outstanding debt was US$1,576 million. This included
the net outstanding balance of the proceeds from the Ps$1.14
billion, six-year, bullet, medium term note (MTN*) issued in the
Mexican market on February 13, 2003. It also considers additional
restricted cash associated with the execution of a Syndicated
Facility at Flat Glass during 1Q'03; the net obligation of a U.S.
private placement and the temporary repurchase of invoices from
an off-balance factoring agreement. Net of these items plus the
proceeds pending to be applied from the MTN issue of Ps$1.0
billion made on December 30, 2002, debt would have decreased YoY
by 11 percent and remained flat QoQ. (*) Certificados Bursatiles
(1) For analysis purposes, all comments and figures discussed in
this announcement are related to amounts in nominal dollars
unless otherwise expressed. Certain amounts may not sum due to
rounding.

The consolidated financial results, income statement, and cash
flows for the three-month period ended March 31, 2002 and for the
last twelve months periods ending March 31, 2003 and March 31,
2002, account for Vitromatic, S.A. de C. V. as a discontinued
operation. All figures provided in this announcement are in
accordance with Generally Accepted Accounting Principles in
Mexico, except otherwise indicated. Dollar figures are in nominal
U.S. dollars and are obtained by dividing nominal pesos for each
month by the applicable exchange rate as of the end of that
month. Certain amounts may not sum due to rounding.

This announcement contains historical information, certain
management's expectations and other forward-looking information
regarding Vitro, S.A. de C.V. and its Subsidiaries (collectively
the "Company"). While the Company believes that these
management's expectations and forward-looking statements are
based on reasonable assumptions, all such statements reflect the
current views of the Company with respect to future events and
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those contemplated in
this report. Many factors could cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
that may be expressed or implied by such forward-looking
statements, including, among others, changes in general economic,
political, governmental and business conditions worldwide and in
such markets in which the Company does business, changes in
interest rates, changes in inflation rates, changes in exchange
rates, the growth or reduction of the markets and segments where
the Company sells its products, changes in raw material prices,
changes in energy prices, particularly gas, changes in the
business strategy, and other factors. Should one or more of these
risks or uncertainties materialize, or should the underlying
assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated
or expected. The Company does not assume any obligation, to and
will not update these forward-looking statements. The
assumptions, risks and uncertainties relating to the forward-
looking statements in this report include those described in the
Company's annual report in form 20-F file with the U.S.
Securities and Exchange Commission, and in the Company's other
filings with the Mexican Comision Nacional Bancaria y de Valores.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers, and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; fiberglass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers;
glassware for commercial, industrial and retail uses; plastic and
aluminum containers. Vitro also produces raw materials, and
equipment and capital goods for industrial use. Founded in 1909
in Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries
have facilities and distribution centers in eight countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide. For further
information, please visit our website at: http://www.vitro.com/

CONSOLIDATED RESULTS

Sales

Consolidated net sales for the quarter decreased YoY by 6.2
percent, or US$35 million, to US$525 million. This was the result
of a decline in sales at Flat Glass of 2.0 percent or US$6
million; at Glass Containers of 10.8 percent or US$25 million;
and at Glassware of 11.2 percent or US$7 million.

As mentioned, the 18.3 percent YoY devaluation of the Mexican
Peso vs. the U.S. dollar affected the YoY sales comparison,
particularly considering that approximately 17 percent of the
Company's sales are peso denominated. Assuming constant exchange
rates, sales would have decreased by 3.3 percent YoY. At the same
time, it should be noted that in the longer term, a stable fair-
valued peso benefits the domestic competitive position of the
Company's products over imports.

At Flat Glass sales declined mainly due to continued weakness and
uncertainty in the U.S. economy aggravated by the war in Iraq.
Particularly affected were the non-residential construction
segment, and the OEM auto market in the U.S. These declines were
partially offset by increases in the domestic construction
segment and the Spanish operations.

Glass Containers' sales decrease reflects the Ampolletas'
divestiture during April 2002, which accounted for 32 percent of
the decline at the division (23 percent of the overall decline).
Sales were also impacted by the currency devaluation effect, and
the steeper-than-usual seasonal declines in the beer and soft
drink segments that are indirectly exported, as a consequence of
the unusually cold winter in the U.S.

Glassware's sales were down at the industrial segment of the
domestic market, partially offset by an increase in the domestic
retail and wholesalers segments since a weaker peso makes imports
less competitive against the Company's domestic products. A
decrease in demand in the plastics segment also affected sales.

EBIT and EBITDA

Consolidated EBIT and EBITDA for the quarter decreased YoY by
35.9 and 21.8 percent, respectively, to US$32 million and US$80
million. As with sales, the YoY devaluation of the Mexican Peso
against the U.S. dollar produced a temporary negative effect when
numbers are measured in dollar terms. Assuming constant exchange
rates, consolidated EBITDA would have decreased by 18.5 percent
instead of 21.8 percent.

Flat Glass' EBIT and EBITDA decreased YoY by 8.5 and 3.1 percent,
or by US$2 and US$1 million. It should be noted that without the
effect of the non-recurring charges taken in 4Q'02, EBIT and
EBITDA would have risen QoQ by 37.1 and 15.6 percent
respectively.

Glass Containers' EBIT and EBITDA decreased YoY by 44.3 and 30.6
percent, or by US$13 and US$17 million, respectively, as a result
of the lower fixed costs absorption resulting mainly from lower
sales from the beer and soft drink segments. EBIT and EBITDA were
also affected by the divestiture of Ampolletas, which contributed
10 percent to the YoY decline.

At Glassware, both EBIT and EBITDA decreased YoY by US$5 million,
reflecting the decline in sales thus resulting in lower fixed
costs absorption. The plastic segment was affected by increases
in the cost of raw materials of oil sub-products.

CONSOLIDATED FINANCING COST

For the quarter, the Company recorded a consolidated financing
cost of US$44 million, compared with a gain of US$4 million for
the same quarter of 2002. This was mainly due to non-cash
exchange losses of US$23 million for the quarter, compared with a
non-cash exchange gain of US$21 million for 1Q'02. This item
represented 52 percent of total financing cost, generated by the
2.2 percent depreciation of the Mexican peso against the U.S.
dollar over the 2003 January-March period.

The weighted average cost of debt for the quarter was 9.16
percent, higher than the same period of 2002. This was mainly due
to the recent, longer-term transactions closed by the Company
that improved liquidity but affected costs slightly.

TAXES

During the quarter, the YoY comparison in deferred income taxes
was affected by the previous year's one time benefit reduction of
the Mexican corporate tax rate from 35 percent to 32 percent as
an income. The increase in accrued income tax during the quarter
is due to higher taxable gains in some of the Company's foreign
subsidiaries that are not consolidated for Mexican tax purposes.

CONSOLIDATED NET INCOME

For the quarter, the Company posted a consolidated net loss of
US$15 million, compared with consolidated net income of US$36
million for the same period of 2002. This mainly resulted from
higher total financing costs, particularly non-cash items, a
decline in operating profits and higher deferred taxes.

CAPITAL EXPENDITURES

During the first quarter, the Company made capital expenditures
(CAPEX) of US$38 million, of which 23 percent were invested at
Flat Glass, mainly to refurbish one of its furnaces. CAPEX at
Glass Containers represented 67 percent of total investments,
from which US$21 million were used to refurbish and expand
capacity at its Queretaro facility. Glassware' CAPEX represented
10 percent of total investments mainly for maintenance purposes
of its OEM and hand made product lines.

CONSOLIDATED FINANCIAL POSITION

On March 31, 2003, consolidated outstanding debt was US$1,576
million, compared with US$1,455 million on December 31, 2002.
Consolidated outstanding debt rose QoQ by US$121 million, or 8.3
percent, mainly as a result of the issuance of a Ps.1.14 billion,
six-year, bullet, medium term note (MTN*) in the Mexican market,
on February 13, 2003. Proceeds from this MTN will be used to
strengthen the financial position of the Company and align the
debt currency structure of the Company with its cash flow
generation. Debt as of March 31, 2003 also considers additional
restricted cash associated with the execution of a Syndicated
Facility at Flat Glass during 1Q'03 and the temporary repurchase
of invoices from an off-balance factoring agreement. Net of these
proceeds, consolidated outstanding debt would have remained flat
QoQ. YoY debt decreased by 11 percent when netting the factors
described above, plus the outstanding balance of the proceeds
pending to be applied from the MTN issue of Ps$1.0 billion made
on December 30, 2002 and the net obligation of a U.S. private
placement.

On March 31, 2003, leverage (total debt/EBITDA) was 4.2 times,
compared with 3.7 times on December 31, 2002. Net of the effect
of the above-mentioned MTN transactions, leverage on March 31,
2003, would have been 3.8 times.

   * Certificados Bursatiles

   Debt Profile as of March 31, 2003
     - Continuing with the Company's strategy of strengthening
       its financial profile, the Company's average life of debt
       increased to 3.4 years from 3.1 years for the fourth
       quarter of 2002. Net of the effect of the February 13,
       2003, MTN issue, Vitro's average life of debt would have
       been 3.6 years.

     - Long-term debt represented 69 percent of total debt as of
       March 31, 2003. And net of the effect of the February 13,
       2003, MTN issue, long-term debt would have been 75
       percent.

     - 43 percent of debt maturing in the period April 2003 -
       March 2004, or approximately US$214 million, is related
       to trade finance.

   (1) As previously mentioned, the Company purchased an interest
       rate cap to protect US$350 million in debt. Including the
       cap transaction, the rate profile of the Company's debt
       was 66 percent fixed rate, 18 percent floating rate plus
       a fixed spread and 16 percent market conditions.

Cash Flow(*)

For the quarter, net interest expenses increased YoY as a result
of higher gross debt levels and additional costs from derivative
transactions. Investments in working capital of US$44 million
were affected by the temporary re-purchase of receivables at one
of our foreign subsidiaries. Taking out the effect on clients of
such re-purchase, investments in working capital would have been
US$6 million, considerably lower than in 1Q'02. The decrease was
accomplished mainly by reductions in inventories, especially at
Glass Containers and Glassware, as well as clients. Dividends
paid for the period corresponded to minority interests from joint
venture partners in the U.S. and Central America. Cash taxes were
lower YoY due to exchange losses. Despite lower YoY EBITDA
generation, the Company's net free cash flow generation improved
over 1Q'02 taking out the effect of the above-mentioned temporary
repurchase of receivables.

(*) Starting with the fourth quarter of 2002, the Company aligned
its definition of "Working Capital" to include other current
assets and liabilities in addition to the variations in clients,
inventories and suppliers. For comparison purposes, working
capital for 2002 was adjusted in accordance with this new
definition.

FLAT GLASS
(50 percent of Consolidated Sales)

Sales

Sales for the quarter declined YoY by 2.0 percent, to US$262
million, from US$268 million for the same quarter in 2002 due to
the continued weakness of the U.S. economy aggravated by the
impasse generated during the pre-war period. Also, the effect of
the depreciation of the peso vs. the U.S. dollar, which resulted
in lower dollar sales due to the conversion of peso sales.

Particularly affected was the U.S. non-residential construction
segment and the OEM auto market. The negative impact of these
factors was partially offset by increases in sales in the auto
replacement market in Mexico and the U.S. through our own
distribution channels, and by a remarkable YoY increase in sales
at Vitro Cristalglass in Spain, for which results include the
recently acquired Portuguese operation, which accounted for 18
percent of the increase.

Volumes were down mainly in the auto segment. Prices remained
constant in dollar terms.

EBIT and EBITDA

Consolidated EBIT for the quarter was US$23 million, representing
a YoY decline of 8.5 percent. This was mainly due to the decline
in sales.

Quarter over quarter, excluding the effect of the non-recurring
charges of US$9 million taken in 4Q'02, EBIT would have risen by
37.1 percent.

EBITDA for the quarter was US$40 million, reflecting a 3.1
percent YoY decrease, as the result of factors discussed above.

GLASS CONTAINERS
(39 percent of Consolidated Sales)

Sales

Consolidated sales for the quarter declined YoY by 10.8 percent
to US$207 million, from US$232 million. Ampolletas' divestiture
during April 2002, accounted for 32 percent of the decline at the
division. Sales were also affected by declines in the domestic
beer, and to a lesser extent, soft drink markets. Sales to these
segments in the domestic market become actually indirect exports
to the U.S., where demand for these products during the quarter
was lower than expected due to a colder than usual winter. On the
other hand, sales to the wine & liquor segment continued to rise.
Although prices have remained stable in constant peso terms, the
YoY effect of the devaluation has affected the business' average
prices when measured in U.S. dollars.

The Central American operations posted a strong quarter,
reflecting a YoY increase of 3.5 percent.

Exports increased YoY by 1.2 percent to US$56 million as an
improved sales mix and price increases more than compensated for
the decline in volumes experienced for the quarter.

EBIT and EBITDA

EBIT for the quarter decreased YoY by 44 percent to US$16
million, mainly due to the sales factors described above which
resulted in lower capacity utilization and lower fixed costs
absorption.

EBITDA for the quarter decreased YoY by 30.6 percent to US$37
million, mainly due to the factors discussed above.

GLASSWARE
(10 percent of Consolidated Sales)

Sales

Sales for the quarter declined YoY by 11.2 percent to US$52
million, mainly as a result of lower sales to the domestic
industrial market. The peso devaluation during the quarter
favored sales to the domestic retail and wholesale segments, as
imports became less attractive. However, these increases were not
enough to offset lower sales to the industrial segment. Exports
were affected by continued weak consumer confidence.

Glass sales accounted for approximately 79 percent of total sales
at the business unit.

Sales at the plastic subsidiaries declined YoY by 10 percent,
mainly due to lower sales within the plastic plate, cup, and
cutlery segment, especially with retailers.

EBIT and EBITDA

As a result of lower sales and increases in cash flow generation,
fixed costs absorption was reduced resulting in negative EBIT for
the quarter. EBIT at the plastic segment was affected by lower
fixed costs absorption as a result of lower sales, as well as a
YoY increase in the cost of raw materials, particularly of oil
sub-products. Additionally, pricing pressures in the plastic
plate, cup, and cutlery segment impacted margins as a result of
over capacity in the sector.

EBITDA for the quarter was US$6 million, reflecting a YoY
decrease of 49 percent, resulting from the factors discussed
above.

KEY DEVELOPMENTS

Debt Refinancing

On February 13, 2003, the Company issued a MTN in the Mexican
market for Ps.1.14 billion, six-years, bullet, maturing on
February 5, 2009. As of the end of 1Q'03, most of the proceeds
from this issue, along with the other MTN issued on December 30,
2002 are being temporarily invested, though they will be used to
extend the average life of Vitro's debt profile at the holding
company level by replacing short-term debt and current maturities
of long-term debt.

The Company closed a US$201 million syndicated loan facility
within Flat Glass to improve the business unit's debt profile.
Considering the final structure of the facility, its average life
is 3.1 years with an average rate of Libor + 2.28 percent.
Proceeds were mostly used to pay down short-term maturities and
some long-term debt with less favorable financial conditions.

After the closing of these transactions, the average life of the
Company's consolidated net outstanding debt improved, as of March
31, 2003 to 3.6 years, from 3.4 years with long-term debt
accounting for 75 percent of total debt.

To see financial statements and tables:
http://bankrupt.com/misc/Vitro.htm

CONTACT:  Vitro S.A. de C.V.
          Investor Relations:
          Beatriz Martinez
          +52-81-8863-1258
          bemartinez@vitro.com

          U.S. AGENCY
          Luca Biondolillo
          +1-646-536-7012
          Lbiondolillo@breakstoneruth.com

          Susan Borinelli
          +1-646-536-7018
          Sborinelli@breakstoneruth.com

          BREAKSTONE & RUTH INTERNATIONAL, for Vitro
          Media Relations
          Albert Chico
          +52-81-8863-1335
          achico@vitro.com

          Web site: http://www.vitro.com/



===========
P A N A M A
===========

CHIQUITA BRANDS: To Sell Panama Unit To Worker Cooperative
----------------------------------------------------------
Chiquita Brands International announced Monday that it has signed
an agreement with union leaders and the government of the
Republic of Panama to sell the assets of its Puerto Armuelles
Fruit Co. (PAFCO) division to a worker cooperative, Cooperativa
de Servicios Multiples de Puerto Armuelles, R.L. (COOSEMUPAR).
This cooperative is led by members of the Armuelles banana
workers union, called SITRACHILCO (Sindicato Industrial de
Trabajadores de la Chiriqui Land Company y Empresas Afines). The
parties expect the transaction to close by the end of May.

"After months of hard work and several days of intense
negotiations last week, I am delighted that we have reached a
fair and responsible long-term agreement," said Cyrus Freidheim,
Chiquita's chairman and chief executive officer. "Workers will
retain their jobs, and the economic vitality of the local
community will be sustained. Chiquita shareholders will benefit
from lower costs, and our customers will have continuing access
to high-quality bananas from Armuelles.

"We are grateful to President Moscoso and representatives of her
government for making this agreement possible," Freidheim said.
"This is truly a win-win solution for employees, the community
and the company."

"Our desire throughout this process was to find an integral,
long-term solution that maintains the economic benefits of banana
production in the Baru region," said Panama's Minister of Trade
and Commerce Joaquin Jacome. "I commend both the company and the
union leaders for putting aside their differences to reach this
accord."

The purchase price paid to Chiquita for PAFCO's assets will be
approximately $19.8 million. PAFCO will use all of the sale
proceeds to pay workers 100 percent of their prestaciones
(severance benefits) and cover certain other liabilities.

The cooperative will finance its purchase with long-term loans of
$14.8 million from a local bank and $5 million from Chiquita,
both of which will be repaid from the proceeds of future banana
shipments. As part of the agreement, the new owners will enter
into a 10-year contract to sell fruit to Chiquita at market
prices, and Chiquita will provide some technical support to the
cooperative in agricultural and logistics operations.

The government will recognize COOSEMUPAR as the new operator
under an existing land-lease contract between PAFCO and the
Republic of Panama, and the Ministry of Labor will authorize the
termination of the old work contract. As the new operator,
COOSEMUPAR will offer employment to the current workers.

Chiquita is the biggest exporter of bananas from Panama. PAFCO
currently employs 3,500 workers on approximately 3,000 hectares
(7,400 acres) of land on the Pacific coast of the country. In
2002, this division exported approximately 6.6 million 40-pound
boxes of bananas for the international market, or approximately 6
percent of Chiquita's Latin American supply.

Chiquita Brands International is a leading global marketer,
producer and distributor of high-quality fresh and processed
foods. The company's Chiquita Fresh division is one of the
largest banana producers in the world and a major supplier of
bananas in North America and Europe. Sold primarily under the
premium Chiquita(R) brand, the company also distributes and
markets a variety of other fresh fruits and vegetables. In
addition, Chiquita Processed Foods is the largest processor of
private-label canned vegetables in the United States; the company
recently announced a definitive agreement to sell Chiquita
Processed Foods to Seneca Foods Corp. For more information, visit
the company's web site at http://www.chiquita.com/.

Chiquita Brands International, Inc.

CONTACT:  CHIQUITA BRANDS INTERNATIONAL
          News media: Michael Mitchell
          +1-513-784-8959, or mmitchell@chiquita.com

          Investors: Monique Wise
          +1-513-784-6366, or mwise@chiquita.com

          Web site: http://www.chiquita.com/



=======
P E R U
=======

BANCO WIESE SUDAMERIS: Net Income Falls To PEN2.44 Mln In 1Q03
--------------------------------------------------------------
Banco Wiese Sudameris, Peru's third largest bank, saw its net
income, before dividends for preferred shares, in the first
quarter of this year shrink to PEN2.44 million from a net income
of PEN17.91 million in the same period a year earlier, reports
Dow Jones.

The Company's financial income during the first quarter of 2003
stood at PEN210.82 million, compared with PEN285.40 million in
the same quarter last year.

Banco Wiese Sudameris is controlled by Italy's banking group,
Banca Intesa SpA. The Italian parent has indicated that it will
put the bank on the block as part of an effort to rid itself of
various Latin American holdings.

Banco Wiese Sudameris has delisted its New York-traded ADR, but
it continues to have a small float on the Lima Stock Exchange.

CONTACT:  IntesaBci
          Investor Relations:
          Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
          E-mail: investorelations@intesabci.it
          Contacts:
                Andrea Tamagnini, Tel: (39) 02 8850 3180
                Marco Delfrate, Tel: (39) 02 8850 2622
                Cristina Paltrinieri, Tel: (39) 02 8850 3571
                Carla De Alberti, Tel: (39) 02 8850 3159
                Giorgio Grossi, Tel: (39) 02 8850 3189
                Anna Gervasoni, Tel: (39) 02 8850 3466
                Maria Vittoria Buscicchio, Tel: (39) 02 8850
                                                     7114
                Manuela Banfi, Tel: (39) 02 8850 3273

          BANCO WIESE SUDAMERIS
          Dionisio Derteano, 102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6000
          Fax: +51-1-440-7945
          Website: http://www.bws.com.pe
          Luis F. Wiese de Osma, Chairman
          Eugenio Bertini, CEO
          Carlos Palacios Rey, President, Executive Committee



=================
V E N E Z U E L A
=================

CANTV: Expects To Lose As Much As $195M This Year
-------------------------------------------------
Venezuelan telephone giant CA Nacional Telefonos de Venezuela
expects to move into the red this year, as the economy shrinks
and the government limits dollar sales.

The Company, Venezuela's largest telephone company, expects to
lose between 64 cents and US$1.73 per American Depositary Receipt
this year. Net losses will total between US$73 million and US$195
million, compared to last year's US$44 million profit, the
company said in a press release.

"The loss is mostly related to foreign exchange," said Miguel
Octavio, executive director of BBO Financial Services Inc. in
Caracas, whose mutual funds are maintaining `small positions' in
Nacional Telefonos. "The shares remain very cheap."

Revenue should come in between US$1.75 billion and US$1.95
billion compared to last year's US$1.91 billion, the Company
said.

Capital expenditures will fall to between US$60 million and
US$100 million compared to US$362 million last year, while Free
Cash Flow will come in between US$370 million and US$475 million,
compared to US$311 million last year, the Company added.

Venezuela's economy may contract by as much as to 17% this year,
according to the International Monetary Fund, after a two-month
general strike hurt consumer confidence and company sales. Limits
on the amount of dollars businesses can buy has made it difficult
for the Company to service dollar-denominated debt or pay
overseas suppliers.

Nacional Telefonos will report its first-quarter results May 7.

CONTACT:  CA NATIONAL TELEFONOS DE VENEZUELA
          Institutional Investor Relations
          Edificio CANTV, Primer Piso
          Avenida Libertador
          Caracas, Venezuela
          Phone: 58212-500-1831
          Fax: 58212-500-1828
          Email: invest@cantv.com.ve


PDVSA: Fire Disables Cardon Refinery For A Week
-----------------------------------------------
A gasoil processing unit of Venezuela's state oil company,
Petroleos de Venezuela S.A. (PdVSA), was damaged by a fire on
Saturday night, according to an article in Vheadline.Com.

The fire was reportedly subdued by onsite PdVSA workers at the
Amuay-Cardon refinery in northwestern Falcon State. The refinery
processes 80,000 barrels of gasoil per day.

PdVSA public affairs spokesman Humberto Reyes relates that
although the refinery will be out of service for about one week,
the damage done to production would be limited, as three other
units will compensate for the outage.

Mr. Reyes said that the Company is "not excluding anything at
this stage", when asked about the possibility that sabotage might
be involved in the fire. The Company has also set up a committee
to investigate the matter.

Recently, PdVSA has shown signs of recovering from the effects to
the two-month long strike that slashed production down to about
10 percent. However, some reports indicate that the Company has
not completely regained its previous production average.


PDVSA: Collaborates With Petrobras On Joint Refinery in Brazil
--------------------------------------------------------------
Venezuela and Brazil agreed to study the joint construction of an
oil refinery in Recife under an agreement between their
respective state oil companies.

Vheadline.Com relates that the agreement between Petroleos de
Venezuela S.A. (PdVSA), and its Brazilian counterpart, Petrobras,
seeks to supply a chain of filling stations throughout
northeastern Brazil.

Venezuelan President Hugo Chavez indicated that the project will
be a "perfectly mixed joint venture."

Chavez said that the plans have begun to take concrete form as
part of a regional integrations strategy. Mr. Chavez met with
Brazilian president Inacio Lula da Silva at Recife, where a
Letter of Intent stipulating a collaboration between PdVSA and
Petrobras was signed.

Both Venezuela and Brazil will invest in the refinery. The Plan
involves the transport of heavy crude oil by river to proposed
plant in Recife.



               ***********


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 Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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