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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

            Monday, May 16, 2005, Vol. 6, Issue 95

                            Headlines


A N T I G U A   &   B A R B U D A

LIAT: CEO Announces Restructuring Updates


A R G E N T I N A

ADEBALL AMOBLAMIENTOS: Court Orders Bankruptcy Process
ARTES GRAFICAS: Court Converts Reorganization to Bankruptcy
AURONORTE S.A.: Claims Filing Deadline Approaches
BANCO FRANCES: Net Profit Soars Three-Fold in 1Q05
CRESUD: Net Profit Climbs to Ps.62.2 Mln in 3Q Fiscal Year 2005

GALUZ S.R.L.: Trustee to Close Claims Submission
GRUPO GALICIA: Returns to Black With ARS20.2 Mln Profit in 1Q05
GRUPO PIACERE: Concludes Reorganization
IRSA: Net Income, EBITDA Jumps in 3Q Fiscal Year 2005

MEDITERRANEO AUTOMOTORES: General Report Due May 23
MULTIRED S.A.: Claims Filing Deadline Approaches
PEBIAL S.R.L.: Bankruptcy Initiated via Court Order
PETROLERA DEL CONOSUR: Reports 1Q05 Net Loss of $5.8M
RED MEN: Initiates Liquidation Process

SIEBER HNOS: Court Sets Assembly for November 23
TRANSPORTES DEL TEJAR: Seeks Court Authorization to Reorganize
WELAND S.A.: Halts Debt Payments, Set To Reorganize
* ARGENTINA: ICSID Rules in Favor of CMS Energy


B E R M U D A

CARNIVAL BERMUDA: Names Joint Liquidators to Supervise Wind-Up
LEGEND REINSURANCE: Court Sets Claims Bar Date
LOM HOLDINGS: Results Improve Despite SEC Investigation
NORTHERN OFFSHORE: Reduces Share Capital by $25 Million


B R A Z I L

PRIDE INTERNATIONAL: Elects Board of Directors
UNIBANCO: Reports 45.3% Increase in Net Income in 1Q05
UNIBANCO: TotalView Platform Boosts Operating Results


C H I L E

SR TELECOM: Consolidated Revenues Narrow in the 1Q05


G U A T E M A L A

BANCO INDUSTRIAL: IFC to Loan $30M Pending Board Approval


M E X I C O

TV AZTECA: Shareholders to Consider By Law Amendments


P A R A G U A Y

* PARAGUAY: IMF Details Recent Staff Mission


P E R U

BANCO WIESE: Italian Parent Denies Pending Stake Sale


V E N E Z U E L A

PDVSA: BCV Director Discovers Discrepancy in Reported Revenues


     - - - - - - - - - -


=================================
A N T I G U A   &   B A R B U D A
=================================

LIAT: CEO Announces Restructuring Updates
-----------------------------------------
Below is a statement from LIAT Chief Executive Officer, Gary
Cullen:

It is now almost four months since the Prime Ministers of
Antigua & Barbuda, Barbados, St. Vincent and the Grenadines and
Trinidad & Tobago agreed to a specific plan for the financial
restructuring of LIAT. This involved utilizing the Petroleum
Stabilization Fund to provide LIAT with EC$44m as restructuring
finance for the specific purpose of implementing its
Transformation Plan. Following approval by the CARICOM Heads of
Government and subsequently the Trinidad & Tobago Cabinet, LIAT
received these funds on 4th February, 2005 and commenced to
implement its restructuring plan.

We are happy to report that our financial restructuring efforts
are progressing satisfactorily. We have met with our top
suppliers/creditors and also our union/staff representatives.

We have reached a position with most of our key creditors
whereby each of them have either provisionally accepted our debt
settlement offer or are having it ratified at their Board level.

Our negotiations with trade unions and staff representatives
feature in most cases on past monies owed and also a proposed
schedule of salary increases.

A particular feature of the package offered is the introduction
of productivity payments and profit sharing participation for
all staff. To date we have had several meetings with the main
unions and are very hopeful that we can quickly bring our
negotiations to a successful and mutually acceptable conclusion.
This is essential in order to get the total financial
restructuring plan implemented.

We are now at the last stage of a long and difficult
restructuring exercise which started in 2001. During this time,
despite being severely undercapitalized, we made progress in
increasing productivity, replacing some of our fleet,
introducing a new corporate image, opening new routes and
increasing the level of non stop services.

We are continuing with the implementation of an operational
restructuring plan which is focused on developing a business
model for LIAT that emulates the characteristics of the low cost
airline business model. Changes already being implemented
include the introduction of the new distribution system. Work
has also commenced on the servicing of LIAT's stock of engines
which have lain idle in Canada due lack of funds and we are
currently building up our spares holding. In addition, we are
awaiting delivery of two new aircraft to be delivered within the
next six to eight weeks. We are also pursuing other aircraft
options.

Our long term strategy is to capitalize on and to stimulate
demand for air travel to, from and through the hub airports
including introducing appropriate aircraft for serving the
longer intra Caribbean routes from Barbados and Antigua. We will
seek to offer superior customer service and an increased
schedule while utilizing a business model that ensures high
productivity and lower unit costs.

I believe that with the correct application and utilization of
the shareholders' funds and the completion of our financial
restructuring plan, LIAT can be a profitable company by early
2006. We must then build on this viable base and ensure that the
company is positioned to earn consistent profits over the long
term.

While most of our focus is on the present, in addition we are
also seeking to understand how the actions we take today will
impact where we intend to be five years down the road.

In new LIAT, we want to be seen as an airline that has clearly
confirmed its market relevance, an airline that has addressed
the challenges of the past and is a leader in meeting the needs
of our customers in the future, and an airline that has built a
cost structure that is able of withstanding the fluctuating
fortunes of our industry.

The more successful our financial performance the more the
company will grow and the more opportunities will be created for
employees. A good financial performance will give us
independence and make it possible to provide our people with the
most competitive pay and benefits, stable jobs and better
opportunities for career development.

It seems that a low cost model is a central component to a
strong future. It motivates our work force, giving our employees
more reason to be excited about being part of a winning team and
ensures that they will be able to share in the company's success
over time.

The financial and operational targets set out in our
Transformation Plan provide a continuous reality check that we
are doing the right thing. They enable us to identify gaps, re-
assess tactics and make decisions that will provide for a
balanced sustainable growth in the future.

Our first quarter results for 2005 were very satisfactory - our
load factors increased by three points. We have increased our
market share and our passenger revenue was 18% ahead of last
year. Schedule reliability has also improved.

Our operations are now in good shape. The consistency of our on-
time performance has improved dramatically. Our complaints and
mishandled baggage continue to decline.

Future success is dependent upon us always giving our customers
the best service at the best price, motivating, developing and
fairly rewarding our employees, and retaining our shareholders'
confidence. We have a vision to make travel easy and affordable
and our commitment is to provide our customers with safe, good
value, point to point air services with an increased level of
schedule options and timings.

Every LIAT employee has a key role to play in delivering these
targets. Whether it's making the difficult sale, going the extra
mile on customer service, reducing cycle time, cutting costs or
coming up with innovative ideas that generate business or costs
cuts, we all have a part to play. LIAT employees at all levels
and in all functions are integral to our efforts to maximize
revenue, optimize the return on our assets and generate a strong
cash flow.

A healthy, well performing LIAT ensures future employment and
job satisfaction. Old LIAT cannot provide this. We have already
demonstrated what we are capable of through the very act of
surviving with totally inadequate resources in a most difficult
environment. We are now using this experience as we build a
profitable future.

Our shareholders have now expressed their confidence in us and
given us the life line for survival. We are rising to the
challenge by having the courage to transform LIAT and to show
them as well as our customers and competitors what LIAT is
capable of. The first chapter in the success story called `new
LIAT' is now being written.

We thank our customers for their extreme loyalty and support
over the past forty-eight years and look forward to serving them
long into the future.

CONTACTS:  ANTIGUA (ANU)
           City Ticket Office
           Woods Center, St. John's

           BARBADOS (BGI)
           Oliver Haywood
           E-mail: haywoodo@liatairline.com
           Tel.: 246 428 8888
                 246-436-9753
                 246-426-7140

           ST.LUCIA (SLU)
           Josse Mesmin
           E-mail: mesminj@liatairline.com
           Tel: 758 452 3051/2

           ST.VINCENT (SVD)
           Dominique Patterson
           E-mail: pattersond@liatairline.com
           Tel: 784 457 1821


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

ADEBALL AMOBLAMIENTOS: Court Orders Bankruptcy Process
------------------------------------------------------
Adeball Amoblamientos S.A. enters bankruptcy protection after
Court No. 17 of Buenos Aires' civil and commercial tribunal,
with the assistance of Clerk No. 33, mandated the company's
liquidation. The order effectively transfers control of the
company's assets to a court-appointed trustee who will supervise
the liquidation proceedings.

Infobae reports that the court selected Mr. Horacio Fernando
Crespo as trustee. Mr. Crespo will be verifying creditors'
proofs of claims until the end of the verification phase on
August 5.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on September 6 followed by the general report that is due on
October 5.

CONTACT: Adeball Amoblamientos S.A.
         Condarco 5164
         Buenos Aires

         Mr. Horacio Fernando Crespo, Trustee
         Maipu 464
         Buenos Aires


ARTES GRAFICAS: Court Converts Reorganization to Bankruptcy
-----------------------------------------------------------
Artes Graficas Herman S.R.L., which was undergoing
reorganization, entered bankruptcy on orders from Court No. 13
of Buenos Aires' civil and commercial tribunal.

Infobae reports that the court assigned Mr. Demostenes
Stefanides as the Company's trustee. The credit verification
process will be done "por via incidental."

CONTACT: Mr. Demostenes Stefanides, Trustee
         Avda Corrientes 1670
         Buenos Aires


AURONORTE S.A.: Claims Filing Deadline Approaches
-------------------------------------------------
The verification of claims for the Auronorte S.A. bankruptcy
will end on July 5 according to Infobae. Creditors with claims
against the bankrupt company must present proof of the
liabilities to a court-appointed trustee before the deadline.

Court No. 15 of Buenos Aires' civil and commercial tribunal
handles the company's case with the assistance of Clerk No. 29.
The bankruptcy will conclude with the liquidation of the
company's assets.

CONTACT: Auronorte S.A.
         Calle 2 Y Jujuy
         Buenos Aires
         Phone: 3488 476293
         Fax: 3488 470909


BANCO FRANCES: Net Profit Soars Three-Fold in 1Q05
--------------------------------------------------
BBVA Banco Frances SA saw a three-fold increase in its net
profit, registering ARS30.06 million in the 1Q05 from a profit
of ARS11.9 million in the 1Q04, discloses Dow Jones Newswires.
The bank attributed the improvement mainly to its 1Q05 operating
profit of ARS124.6 million, a 117.3% increase from the 1Q04.
Within that, financial intermediation played an important role,
with net financial income hitting ARS187.9 million, up from
ARS88.269 million a year earlier.

The bank cited further gains in efficiency, continuing a trend
of reducing administrative expenses as a proportion of income.

Administrative expenses rose 2.41% to ARS136.46 million, but
they were covered 61.3% by fee income, up from 58.35% a year
earlier. Net of amortizations, the Company said, this coverage
was a high 79%.

Banco Frances also saw an improvement in the quality of its loan
portfolio. The bank said its provision for loan losses fell to
ARS10.455 million in the 1Q05 from ARS18.753 million in 1Q04.

It also reduced its exposure to the Argentine government's debt.
While loans to the federal and provincial governments rose to
ARS6.156 billion from ARS6.02 billion in the 1Q04, total
exposure to the public sector, which includes a ARS1.8 billion
bond portfolio, fell to ARS7.975 million from ARS8.122 million.

CONTACT: BBVA Banco Frances S.A.
         Reconquista 165-199
         Buenos Aires, 1000
         Argentina
         Phone: 54-11-346-4310
         Web site: http://www.bancofrances.com.ar


CRESUD: Net Profit Climbs to Ps.62.2 Mln in 3Q Fiscal Year 2005
---------------------------------------------------------------
Cresud S.A.C.I.F. y A. (Nasdaq: CRESY) (BCBA: CRES), a leading
Argentine producer of agricultural products, announced Thursday
results for the third quarter fiscal year 2005 ended March 31,
2005. Results for the nine-month period of fiscal year 2005
showed a net profit of Ps. 62.2 million as compared to a Ps.
10.2 million profit registered during the same period of the
previous Fiscal Year, denoting a 506% increase.

The increase in the net result is mainly a consequence of: (i)
the higher results registered in our cattle stock holdings
(generated by a stronger market value), which went from Ps. 1.9
million during the same period of fiscal year 2004 to Ps. 9.3
million for the current period; (ii) stronger results due to the
sale of farms, which increased Ps. 6.0 million amounting Ps. 7.7
million for the period ended March 31, 2005; and (iii) Ps. 68.8
million profit from the sale of IRSA's Convertible Notes held by
the Company.

HIGHLIGHTS

    -- Net profit corresponding to the nine-month period on
March 31, 2005 amounted to Ps. 62.2 million, 506.4% above that
registered for the same period the previous year.

    -- Corn and sunflower harvests have commenced with yields
superior to those forecast. Wheat harvest has ended with 4.0 ton
per hectare yields.

    -- We are finishing the development of our business plan for
our investments in Brazil, being our first venture overseas.

    -- We have opened a state-of-the-art dairy facility that
will allow us to increase our production by 36,000 liters per
day.

    -- We signed the title deeds for the sale of a 30,353
hectare farm generating a Ps. 7.8 million profit. We also signed
bills of sale for two farms that will generate a US$ 7.8 million
profit, which will appear next quarter and fiscal year.

    -- We finished clearing 6,000 new hectares in Los Pozos for
the development of the cattle beef business during the first
quarter of fiscal year 2006.

                       Cresud S.A.C.I.F. y A.
                        Financial Highlights
                    Expressed in Argentine Pesos
                       Nine months     Nine months  Change(%)
                          FY '05          FY '04

Total Sales             49,872,192      45,909,954       8.6
Gross Income (Loss)     12,378,764      19,145,151     (35.3)
Operating income        20,652,075      14,757,585      39.9
Financial results, net  64,170,363         107,388  59,655.6
Net Income (Loss) of
  the period            62,151,295      10,249,604     506.4
Earnings per
  common share              0.3824          0.0656     483.0
Earnings per common
  share diluted             0.1935          0.0319     506.4

Note: Each ADR represents ten common shares

Current Assets         188,227,107      71,848,921     162.0
Non-current Assets     585,070,272     535,380,505       9.3
Total Assets           773,297,379     607,229,426      27.3
Current Liabilities     77,617,889      17,203,291     351.2
Non-current
  Liabilities          151,406,556     148,454,671       2.0
Total Liabilities      229,024,445     165,657,962      38.3
Minority Interest          355,930          47,619     647.5
Shareholders' Equity   543,917,004     441,523,845      23.2

Cresud is a leading Argentine producer of basic agricultural
products and the only such company with shares listed on the
Buenos Aires Stock Exchange and Nasdaq. The Company is currently
involved in various operations and activities, including crop
production, cattle raising and fattening, milk production, and
certain forestry activities. Most of its farms are located in
Argentina's pampas, one of the largest temperate prairie zones
in the world and one of the richest areas of the world for
agricultural production.

CONTACT:  CRESUD S.A.C.I.F. Y A.
          Gabriel Blasi, CFO
          Phone: 011-54-11-4323-7449
          E-mail: finanzas@cresud.com.ar
          URL: http://www.cresud.com.ar


GALUZ S.R.L.: Trustee to Close Claims Submission
------------------------------------------------
Creditors of bankrupt Galuz S.R.L. have until June 21 to submit
proof of their claims pertaining to the Company's liquidation.
Infobae reports that the claims must be presented to trustee
Ruben Eduardo Suez for verification before the said deadline.
Failure to comply with the submission requirement will mean
disqualification from any post-liquidation distributions.

Court No. 13 of Buenos Aires' civil and commercial tribunal has
jurisdiction over this case. The city's Clerk No. 25 assists the
court with the proceedings.

CONTACT: Mr. Ruben Eduardo Suez, Trustee
         General Cesar Diaz 2324
         Buenos Aires


GRUPO GALICIA: Returns to Black With ARS20.2 Mln Profit in 1Q05
---------------------------------------------------------------
Financial services provider Grupo Financiero Galicia (GGAL)
appears to be recovering from financial problems resulting from
a near-collapse in Argentina's financial system in 2002.
According to Dow Jones Newswires, Grupo Galicia posted net
profit of ARS20.2 million in the 1Q05, reversing an ARS86.3
million net loss in 1Q04. This is the first quarter the group
has turned a profit since the 2002 crisis.

The group attributed this quarter's improvement to the
performance of its main banking asset Banco Galicia y Buenos
Aires.  Banco Galicia, which is 93.59%-controlled by Grupo
Galicia, revealed, in a filing to the local stock exchange, a
1Q05 net profit of ARS17.029 million.

The parent company said its stake in Banco Galicia generated
ARS15.9 million in income, reversing an ARS68.7 million loss
from the year-earlier quarter.

Grupo Galicia's net financial income totaled ARS75.8 million in
the 1Q05, far surpassing the ARS6.3 million posted a year
earlier. Income from "government and corporate securities" grew
to ARS25.1 million from ARS2.9 million a year ago. Meanwhile,
provisions for loan losses dwindled to ARS18.2 million from
ARS55.6 million.

Grupo Galicia's data showed that its holdings of government and
corporate securities fell to ARS5.857 billion from ARS6.272
billion in the year-earlier quarter. Deposits rose to ARS7.489
billion from ARS5.859 billion.

Grupo Financiero Galicia S.A. was formed on September 14, 1999,
as a financial services holding company organized under the laws
of Argentina. Its most significant asset is Banco de Galicia y
Buenos Aires S.A. Grupo Galicia's main objective is to be one of
Argentina's leading comprehensive financial services companies
while continuing to strengthen its position as one of the
country's leading financial institutions.

CONTACT: Mr. Pablo Firvida
         VP Investor Relations
         Telefax: (5411) 4343-7528
         E-mail: pfirvida@gfgsa.com
                 investorelations@gfgsa.com
         Web site: http://www.gfgsa.com


GRUPO PIACERE: Concludes Reorganization
---------------------------------------
The reorganization of Buenos Aires-based Grupo Piacere S.A. has
ended. Data revealed by Infobae on its Web site indicated that
the process was concluded after Court No. 1 of the city's civil
and commercial tribunal, with assistance from Clerk No. 2,
homologated the debt agreement signed between the Company and
its creditors.


IRSA: Net Income, EBITDA Jumps in 3Q Fiscal Year 2005
-----------------------------------------------------
IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS)
(BCBA: IRSA), the largest real estate company in Argentina,
announced third quarter fiscal year 2005 results. Net income for
the nine-month period ended March 31, 2005, was Ps.78.2 million,
or Ps.0.302 per share, while earnings per diluted share totaled
Ps.0.179, compared with a gain of Ps.45.2 million, or Ps.0.206
per share (Ps.0.123 per diluted share) for the same period in
the previous year.

Consolidated sales for the nine-month period totaled Ps.271.9
million, compared to Ps.185.9 million in the same period the
previous year. The various segments' share in net sales was the
following: Sales and Development, Ps.28.3 million; Office and
Other Rental Properties, Ps.13.7 million; Shopping Centers,
Ps.161.6 million; and Hotels, Ps.68.3 million.

Operating income recorded significant growth of 119.9%, from
Ps.38.7 million in the third quarter of FY 2004 to Ps.85.1
million in the third quarter of FY 2005.

HIGHLIGHTS

    -- EBITDA for the nine-month period ended March 31, 2005,
was Ps.134.2 million, up 42.3% from the same period of the
previous year.

    -- In March 2005, the exercise of IRSA warrants generated
US$ 22.9 million. Furthermore, during the nine-month period,
financial debt was reduced by US$ 23.7 million as a result of
the conversion of IRSA Convertible Notes.

    -- Average occupancy of our offices continues to recover,
reaching 89% for the first nine months of FY 2005, compared to
78% for the third quarter of the previous fiscal year.

    -- The hotel industry showed a highly positive performance.
Average occupancy rates grew significantly, reaching 79% in the
third quarter of FY 2005, compared to 72% for the third quarter
of FY 2004. Average prices, which had been lagging behind, also
had a positive performance, increasing from Ps.279 to Ps.325.

    -- Boosted by the ABC1 segment boom, we are evaluating
several projects. Furthermore, we continue developing San Martin
de Tours, Cruceros Dique 2, Edificios Dique 3 and Emprendimiento
El Encuentro.

    -- APSA's operating income grew 98.8% over the same quarter
a year ago, reaching Ps.64.6 million. EBITDA grew 44.3%,
reaching Ps.111.8 million during the nine-month period ended
March 31, 2005.

    -- APSA's debt was successfully restructured, and a more
suitable financing structure was agreed upon at a substantially
lower cost to the Company, in anticipation of future
developments. The Company's annual financial cost will be
reduced by approximately Ps.3.5 million.

    -- Tenants' sales increased 31.5% in the nine-month period
ended March 31, 2005, and shopping center occupancy was 99.1%,
reaching historical highs.

    -- On April 12, we opened the second stage of Alto Rosario
Shopping, which raised the number of stores to 141, in line with
our strategy of offering the widest range of products and major
brands.


                      Third Quarter Financial Highlights
                      (In thousands of Argentine Pesos)

                                     03-31-05           03-31-04

    Total Sales                       271,890            185,854
    Operating Income                   85,090             38,650
    Financial Results, Net             -3,297             50,427
    Net Income                         78,205             45,231
    Net Income per GDS                   3.02               2.06
    Net Income per GDS Diluted           1.79               1.23

                                     03-31-05           06-30-04

    Total Current Assets              376,197            261,651
    Total Non Current Assets        2,032,317          1,941,293
    Total Assets                    2,408,514          2,202,944
    Short-Term Debt                   146,442            135,127
    Total Current Liabilities         305,589            256,022
    Long-Term Debt                    386,123            468,807
    Total Non Current Liabilities     471,744            516,831
    Total Liabilities                 777,333            772,853
    Minority Interest                 436,644            470,237
    Shareholders' Equity            1,194,537            959,854

IRSA is Argentina's largest, most well-diversified real estate
company, and it is the only company in the industry whose shares
are listed on the Bolsa de Comercio de Buenos Aires and The New
York Stock Exchange. Through its subsidiaries, IRSA manages an
expanding top portfolio of shopping centers and office
buildings, primarily in Buenos Aires. The company also develops
residential subdivisions and apartments (specializing in high-
rises and loft- style conversions) and owns three luxury hotels.
Its solid, diversified portfolio of properties has established
the Company as the leader in the sector in which it
participates, making it the best vehicle to access the Argentine
real estate market. Additionally, IRSA owns an 11.8% stake in
Banco Hipotecario, Argentina's largest mortgage supplier in the
country, which shareholders' equity amounted to Ps. 1,959
million.

CONTACT: IRSA Inversiones y Representaciones S. A.
         Alejandro Elsztain, Director
         Gabriel Blasi, CFO
         Tel: +011-5411 4323-7449
         E-mail: finanzas@irsa.com.ar


MEDITERRANEO AUTOMOTORES: General Report Due May 23
---------------------------------------------------
Ms. Maria Carmen Villa Penalver, the trustee overseeing the
reorganization of Mediterraneo Automotores S.A., will submit a
general report of the case on May 23, says Infobae. The general
report provides the court with an audit of the Company's
business and accounting records.

The Company's case is under the supervision of Court No. 2 of
Salta's civil and commercial tribunal.

CONTACT: Ms. Maria Carmen Villa Penalver, Trustee
         Avda Belgrano 1731
         Salta


MULTIRED S.A.: Claims Filing Deadline Approaches
------------------------------------------------
The verification of claims for the Multired S.A. bankruptcy will
end on August 1 according to Infobae. Creditors with claims
against the bankrupt company must present proof of the
liabilities to Ms. Maria Alejandra Barbieri, the court-appointed
trustee, before the deadline. Court No. 13 of the city's civil
and commercial tribunal handles the company's case with the
assistance of Clerk No. 13. The bankruptcy will conclude with
the liquidation of the company's assets.

CONTACT: Ms. Maria Alejandra Barbieri, Trustee
         Avda Cabildo 2040
         Buenos Aires


PEBIAL S.R.L.: Bankruptcy Initiated via Court Order
---------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared Pebial S.R.L. bankrupt after the company defaulted on
its debt payments. The order effectively places the company's
affairs as well as its assets under the control of court-
appointed trustee Jorge Osvaldo Stanislavsky.

As trustee, Mr. Stanislavsky is tasked with verifying the
authenticity of claims presented by the company's creditors. The
verification phase is ongoing until June 29.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on August 24. A general report will also
be submitted on October 5.

Infobae reports that Clerk No. 19 assists the court on this case
that will close with the sale of the Company's assets. Proceeds
from the sale will be used to repay the Company's debts.

CONTACT: Mr. Jorge Osvaldo Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires


PETROLERA DEL CONOSUR: Reports 1Q05 Net Loss of $5.8M
-----------------------------------------------------
Petrolera del Conosur, Uruguayan state-owned oil company ANCAP's
money-losing subsidiary in Argentina, posted first quarter net
losses of ARS16.8 million (US$5.8 million), reports Business
News Americas. The Company, which operates a network of gas
stations in Argentina under the Sol Petroleo brand, disclosed
its performance to the Buenos Aires stock market, without
providing comparative figures. According to the filing, net
equity as of March 31, 2005 was negative ARS27.5 million.

ANCAP is preparing to sell the unit. Interested buyers include
Brazilian state-owned oil company Petrobras (PBR); Venezuelan
state-owned Petroleos de Venezuela, or PdVSA (PVZ.YY); and
Argentina's new state-run energy company, Enarsa.


RED MEN: Initiates Liquidation Process
--------------------------------------
Red Men S.R.L. of Buenos Aires will begin liquidating its assets
after Court No. 9 of the city's civil and commercial tribunal
declared the company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee Marcos Livszyc.

The trustee will review claims forwarded by the company's
creditors until September 12. After claims verification, the
trustee will submit individual reports for court approval on
October 28. The general report will follow on December 20.

Clerk No. 17 assists the court on this case.

CONTACT: Mr. Marcos Livszyc, Trustee
         Nunez 6387
         Buenos Aires


SIEBER HNOS: Court Sets Assembly for November 23
------------------------------------------------
Court No. 1 of Necochea's civil and commercial tribunal reset
key events in the Sieber Hnos. S.R.L. reorganization case to the
following dates:

   a) Proofs of Claim submission deadline - May 31, 2005
   b) Informative Assembly - November 23, 2005

Infobae reports that all claims must be forwarded to trustee
Cecilia Laura Philipps by the stated deadline.

CONTACT: Sieber Hnos. S.R.L.
         Bartolome Mitre 490
         San Cayetano

         Ms. Cecilia Laura Philipps, Trustee
         Calle 623 Nro. 2854
         Necochea


TRANSPORTES DEL TEJAR: Seeks Court Authorization to Reorganize
--------------------------------------------------------------
Transportes del Tejar S.A., a company operating in Buenos Aires,
requested for reorganization after failing to pay its
liabilities. The petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Court No. 22 of the city's civil and
commercial tribunal. Clerk No. 43 assists the court on this
case.

CONTACT: Transportes del Tejar S.A.
         Dr. Enrique Finochietto 1305
         Buenos Aires


WELAND S.A.: Halts Debt Payments, Set To Reorganize
---------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of a petition to reorganize
submitted by Weland S.A.. Clerk No. 19 assists the court on this
case.

Infobae recalls that the company filed the petition following
cessation of debt payments. Reorganization will allow the
Company to avoid bankruptcy by negotiating a settlement with its
creditors.

CONTACT: Weland S.A.
         Av. San Martin 3925
        (1752) L.del Mirador - Bs. As.
         Phone: 4454-5858
         Fax: 4655-4687
         E-mail: weland@ssdnet.com.ar

         Web site: http://www.weland.com.ar


* ARGENTINA: ICSID Rules in Favor of CMS Energy
-----------------------------------------------
The World Bank's arbitration tribunal, ICSID, has issued a
ruling in a claim filed by U.S.-based CMS Energy (CMS) against
Argentina. A brief news release posted Thursday on ICSID's Web
site said a three-member panel issued a ruling in the CMS
Energy-Argentina case but declined to give details.

However, an Argentine government official revealed that the
ICSID ruled in favor of CMS, awarding it a judgment of US$133
million. The official, who asked not to be identified, said the
government has received a three-page summary from the Paris-
based tribunal and is waiting for the full document with more
details.

The official said President Nestor Kirchner met Thursday evening
with Economy Minister Roberto Lavagna and Justice Minister
Horatio Rosatti to discuss plans to ask ICSID to nullify the
ruling.

The government will argue, as it did during the proceedings in
Paris, that the World Bank has a conflict of interest because it
is a CMS creditor, the official said.

In addition, the government has argued that CMS, as a minority
shareholder of Argentine gas transporter Transportadora de Gas
del Norte (TGNO2.BA), does not hold a sufficiently large stake
to file a claim in the investment dispute tribunal.

Argentina would appeal the ruling "even if had been one dollar,"
the source said.



=============
B E R M U D A
=============

CARNIVAL BERMUDA: Names Joint Liquidators to Supervise Wind-Up
--------------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                            And

        IN THE MATTER OF Carnival (Bermuda) Limited

The Member of Carnival (Bermuda) Limited, acting by written
consent without a meeting on May 9, 2005 passed the following
resolutions:

1) that the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) that Nigel Heath Sinclair and Neil Hunter Cooper be and are
hereby appointed Joint Liquidators for the purposes of such
winding-up, such appointments to be effective forthwith.

The Liquidator informs that:

- Creditors of Carnival (Bermuda) Limited, which is being
voluntarily wound up, are required, on or before May 25, 2005 to
send their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Nigel Heath
Sinclair and Neil Hunter Cooper, the undersigned, at c/o Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, HM DX, Bermuda, the Joint Liquidators of the said
Company, and if so required by notice in writing from the said
Joint Liquidators, and personally or by their lawyers, to come
in and prove their debts or claims at such time and place as
shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution made
before such debts are proved.


- A final general meeting of the Member of Carnival (Bermuda)
Limited will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
June 27, 2005 at 9:30 a.m., or as soon as possible thereafter,
for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Joint Liquidators; and

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Joint
Liquidators shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Nigel Heath Sinclair
         Mr. Neil Hunter Cooper
         Joint Liquidators
         c/o Kroll Limited
         10 Fleet Place
         London, EC4M 7RB
         England, UK


LEGEND REINSURANCE: Court Sets Claims Bar Date
----------------------------------------------
      IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)
              AND IN THE MATTER OF THE COMPANIES ACT 1981

                             And

      IN THE MATTER OF Legend Reinsurance Company Limited

   Notice To Persons Claiming To Be Creditors Of Intention To
                Declare A First And Final Dividend

(Under the order for winding-up the above-named Company dated
July 27, 2001)

Take notice that a first and final dividend is to be declared in
the above matter, and that if you do not establish your claim to
the satisfaction of the Liquidator on or before May 25, 2005,
your claim will be expunged, and I shall proceed to make a final
dividend without regard to such claim.

Creditors who have already submitted a proof of debt form and
who have received confirmation from the Liquidator that such
proof of debt has been accepted are not required to submit
further proof of their claim and will automatically rank for
dividend.

Proof of Debt forms can be obtained by contacting:

             Mr. Michael Tagg
             KPMG Financial Advisory Services Limited
             P.O. Box HM 906
             Hamilton, Bermuda, HM DX
             Phone: +1 441 294 2639
             Fax: +1 441 295 8280
             E-mail: michaeltagg@kpmg.bm


LOM HOLDINGS: Results Improve Despite SEC Investigation
-------------------------------------------------------
Scott Lines, Managing Director of LOM (Holdings) Limited,
released to the Exchange on Thursday its letter to Shareholders
concerning the Group's Full Year Results for 2004. Below is a
copy of the letter:

The LOM Group achieved a net profit of US$2,064,683 or 32.3
cents per share in 2004, an 8% return on capital employed.
Revenues for the group were US$17.4 million, a 1.7% increase
over the previous year. Notable items were a 19.4% rise in
brokerage fees, a 28% increase in net interest revenue, a 23%
decline in foreign exchange revenues and a 70% decline in
corporate finance income. There was also a 67% increase in lease
interest revenues. Expenses for the group rose to US$15.3
million, up 9.3%. There was a 15% increase in employee
compensation and employee benefits of which a large part related
to higher staff numbers in our asset management subsidiary and
costs due to the hurricanes shutting our offices in Grand Cayman
and the Bahamas. It is expected that our staff compensation
costs should decline somewhat in 2005. Professional fees
increased 33% due to legal fees related to the SEC
investigation.

LOM's performance was significantly hampered by legal costs
related to the widely publicized SEC investigation of our Lines
Overseas Management Limited and certain senior officers
including myself. The SEC's allegations have included some very
sensationalist and completely unsubstantiated statements that
have generated press interest. This publicity, which at times
has been excessive, has harmed the group's ability to attract
new business and resulted in some business being withdrawn. Thus
our net profits were down 34% versus 2003 despite a more
positive market environment. Thankfully most of our customers
have remained loyal to the group and we thank them
wholeheartedly for their support and patience.

In addition to US$1.7 million of legal costs in 2004, the
investigation by the SEC has now dragged on for two full years
and cost a cumulative US$2.75 million. It remains a significant
drag on earnings. It has taken significant time and effort away
from many of our senior staff and I would like to thank our very
loyal and hardworking employees for their fortitude throughout
this extremely trying time.

Global equity markets in the second half of 2004 continued to
rise, pushed by stronger profits despite generally rising
interest rates and costs. Commodity prices, after consolidating
their gains in the second quarter of 2004, rose strongly
throughout the remainder of 2004 and into the first quarter of
2005, paced by very strong energy prices. Stronger economic
growth combined with rising raw material costs have pushed
inflation fears once again into policy makers' minds and the
market's fears of aggressive interest rate rises have created a
headwind for further equity market gains.

Commodity price increases are a China growth phenomenon as that
region rapidly cements its 21st Century role as "workshop to the
world". We expect that volatility in commodity prices will
continue as the Chinese authorities attempt to slow growth to a
more sustainable level. This will continue to raise investor
fears of a hard landing and the consequent impact on global
commodities demand. However in the longer term we believe that
commodity prices will continue to rise due to a combination of
20 years of under investment in new resource production and
rapidly growing industrial demand as per capita incomes in
regions of China and India reach levels that cause a geometric
expansion of demand for basic industrial and consumer goods.

LOM's broking operations have a strong niche in the commodity
sector. However it will remain extremely difficult for LOM to
attract new customers and assets to the group while the SEC
continues their investigation and we continue to suffer negative
publicity from their allegations. Given our difficulties in
growing revenues we shall be once again reviewing our cost
structure.

LOM's balance sheet remains strong with US$25.5 million in
shareholders capital of which 56% is in cash. The group's assets
under administration were effectively unchanged from the prior
year at US$864 million. At year end, our book value per share
was US$3.98. Since the end of 2004 LOM Holdings Limited has
repurchased for cancellation an additional 20,600 shares. The
group will pay our regular half yearly dividend on 1st June of 5
cents per share to shareholders of record on 18th May.

CONTACT:  LOM Group
          The LOM Building
          27 Reid Street
          Hamilton HM 11
          Bermuda

          Tel: 441 292 5000
          Fax: 441 295 3343
          E-mail: info@lom.com

          LOM Asset Management Limited
          Tel: 441 296 5802
          Fax: 441 296 5597
          E-mail: lomam@lom.com

          LOM Securities (Bahamas) Limited
          Millennium House
          P.O. F42498-350
          Freeport, Grand Bahama
          Bahamas

          Tel: 242 351 5000
          Fax: 242 351 7738
          E-mail: info.bahamas@lom.com


NORTHERN OFFSHORE: Reduces Share Capital by $25 Million
-------------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                           And

            IN THE MATTER OF Northern Offshore, Ltd.

NOTICE IS HEREBY GIVEN that, pursuant to Section 46 of the Act,
the issued share capital of Northern Offshore, Ltd. will be
reduced from US$26,170,165 to US$720,000.00 (a reduction of
US$25,450,165.00) effective May 30, 2005.

CONTACT: Northern Offshore Limited
         Crown House
         4 Par-La-Ville Road
         Hamilton, HM08 Bermuda



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

PRIDE INTERNATIONAL: Elects Board of Directors
----------------------------------------------
Pride International, Inc. (NYSE: PDE) announced that the
following seven directors were elected Thursday at the annual
stockholders' meeting: Robert L. Barbanell, Paul A. Bragg, David
A. B. Brown, J.C. Burton, Archie W. Dunham, Ralph D. McBride and
David B. Robson. The board of directors has elected David A. B.
Brown as Chairman.

Pride International, Inc., headquartered in Houston, Texas, is
one of the world's largest drilling contractors. The Company
provides onshore and offshore drilling and related services in
more than 30 countries, operating a diverse fleet of 289 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 29 jackup rigs, 19 tender-assisted, barge and platform
rigs, and 227 land rigs.

CONTACT:  Pride International, Inc.
          Robert E. Warren
          Steven D. Oldham
          Tel: (713) 789-1400


UNIBANCO: Reports 45.3% Increase in Net Income in 1Q05
------------------------------------------------------

Profitability

- In 1Q05, Unibanco's net income increased by 45.3% from 1Q04,
reaching R$401 million. Operating income was R$711 million, up
51.0% from 1Q04, reflecting the first results from the
organizational restructuring started in mid 2004.

- Stockholders' equity, in March, 2005, amounted to R$8,363
million, up 13.7% from March 2004. Annualized return on average
equity (ROAE) was 21.0% in the quarter.

Assets, Funding and Capital Adequacy

- Unibanco's consolidated total assets reached R$82,109 million
on March 31, 2005, an increase of 14.8% Y-o-Y and of 3.5% Q-o-Q.
Of this total, R$33,176 million were loans; R$18,569 million
were marketable securities and derivative financial instruments;
and R$10,558 million were interbank investments.

- Total loan portfolio stood at R$33,176 million at periodend,
up 22.2% Y-o-Y.

- Total Retail loans increased by 37.5% Y-o-Y. Wholesale loan
portfolio was up 7.7% from March, 2004.

- As of March 31, 2005, Unibanco's overall funding reached
R$99,347 million, including R$34,206 million in mutual funds and
assets under management. Core deposits posted 34.3% growth Y-o-
Y, thus evidencing the initiatives towards improving the funding
mix.

Results Highlights

Financial margin before provision for loan losses, adjusted by
the net impact of investments abroad, reached R$1,744 million in
1Q05, an increase of 17.1% when compared with 1Q04. Financial
margin after provision stood at R$1,434 million in the quarter,
presenting a growth of 21.9% Yo-Y and 7.2% Q-o-Q.

- Annualized financial margin, after provision for loan losses,
increased from 7.0% in 4Q04 to 7.6% in 1Q05.

- Personnel and administrative expenses dropped by R$179 million
in 1Q05, presenting a decrease of 13.1% Q-o-Q. The reduction was
influenced mostly by the internal restructuring process of the
company, the back-office and supporting areas consolidation, the
sale of Credicard and Orbitall, the decrease in the number of
lay-offs over the last quarter and seasonal effects caused by
lower transaction volumes during the first quarter.

Units in the Ibovespa

- Unibanco Units became part of the Ibovespa index on May 2,
with an initial weight of 0.984%. The inclusion of the Unit in
Ibovespa was driven by a series of initiatives, started in 2003,
to foster its liquidity in Brazil.

New Brand

- In March, 2005, Unibanco adopted a new marketing positioning
and remodeled its brand. The internal restructuring of 2004 had
the purpose of simplifying structures and processes, as part of
a constant quest for synergy and the optimization of resources.
The new positioning is in line with this guideline. A simpler,
clearer, more transparent bank, with greater speed of action and
closeness to its customers - this is what Unibanco is striving
to achieve even more intensely since January. Unibanco brand and
color has changed. Black was replaced by blue. The icon, symbol
of synergy and commitment, was recovered and redesigned, to look
more up-to-date and convey speed of action.

Net Income and Stockholders' Equity

Unibanco

In 1Q05, Unibanco's net income increased by 45.3% and 6.9% from
1Q04 and 4Q04, respectively, reaching R$401 million. Operating
income was R$711 million, up 51.0% from 1Q04, reflecting the
first results from the organizational restructuring started in
mid 2004.

Stockholders' equity, in March, 2005, amounted to R$8,363
million, up 13.7% from March 2004. Annualized return on average
equity (ROAE) was 21% in the quarter.

In 1Q05, Unibanco started to pay dividends/interest on capital
stock on a quarterly basis. 1Q05 interest on capital stock gross
amount was R$57 million, which represents gross values of
R$0.076 per Unit and R$0.38 per GDS, and net values of R$0.065
per Unit and R$0.32 per GDS.

Unibanco Holdings

Unibanco Holdings' net income for 1Q05 reached R$222 million,
corresponding to R$0.27 per share.
Stockholders' equity at period-end was R$4,971 million and ROAE
stood at 19.4%, impacted by tax provisions (PIS and COFINS) on
interest on capital stock revenues. Book value per share reached
R$5.99 at period-end.

Assets

Unibanco's consolidated total assets reached R$82,109 million on
March 31, 2005, an increase of 14.8% from March 31, 2004.

Trading securities and Securities Available for Sale

Trading securities are acquired with the purpose of being
actively and frequently traded. Unrealized gains and losses due
to market value adjustments are recognized in the income
statement.

Securities available for sale can be traded as a result of
interest rate fluctuations, changes in payment conditions or
other factors. Securities available for sale are adjusted at
market value, recorded in a separate stockholders' equity
account.

Securities Held to Maturity

Unibanco classifies as held to maturity those securities which
it has the intention and the financial capability to hold in the
portfolio until maturity. They are accounted for at their
acquisition cost plus accrued interests. The market value of
such securities amounted to R$4,879 million on March 31, 2005.

Loan Portfolio

Total Retail loans increased by 37.5% Y-o-Y. Retail loans
represented 55% of the total portfolio in March 2005, while in
March 2004 they represented 49%. The Wholesale loan portfolio
grew by 7.7% Y-o-Y.

For better comparison, the following adjustments were performed:
in the portfolio of March, 2004 the installment credits from
Unicard and Fininvest cards were included, the portfolio of
Credicard (company sold in 4Q04) was excluded and HiperCard's
portfolio (company acquired in March 2004 and consolidated in
June 2004) was included. The credit segmentation process for
medium companies was reviewed, resulting in a new breakdown for
December and March 2004 portfolios: R$596 million and R$776
million, respectively, migrated from Retail to Wholesale.

Total individuals loan portfolio amounted to R$12,199 million,
up 30.8% in the last 12 months. The highlight of the period was
the increase of R$735 million Y-o-Y in the consumer finance
companies portfolio, a growth of 44.3% from March 2004 and 7.2%
from December 2004. The credit card companies portfolio grew by
32.8% in the last 12 months and decreased by 5.9% from December
2004, the latter due to seasonal effects in the quarter.

Total corporate loan portfolio posted 17.7% growth in the last
12 months and 3.7% growth in the quarter.

SMEs portfolio's increased by 53.4% in the last 12 months and
6.3% in the quarter.

The following tables and graphs show loan portfolio balance by
client type.

Allowance and Provisions for Loan Losses

As of March, 2005, the balance for the consolidated allowance
for loan losses reached R$1,685 million, representing 5.1% of
the portfolio, composed of:

  -  R$613 million according to Resolution 2682, related to
overdue credits;
  -  R$729 million according to risk parameters of Resolution
2682, related to falling due credits;
  - R$343 million based on more conservative percentages than
those required by the Regulatory Authority.

As of March, 2005, the balance of loans classified as AA-B
represented 86.5% of total loan portfolio, better than the
figure of 84.6% of March 2004. The balance of loans classified
as E-H represented 4.7% of total loan portfolio, whereas
provision for loan losses represented 5.1% of total balance of
loans.

The allowance for loan losses over the balance of loans with
principal or interest past due for 60 days or longer (non-
accrual portfolio) reached 119%. As of March, 2005, the ratio of
non-accrual portfolio over the total loan portfolio reached
4.3%.

Funding

As of March 31, 2005, Unibanco's overall funding reached
R$99,347 million, including R$34,206 million in mutual funds and
assets under management.

Core deposits posted 34.3% growth Y-o-Y, thus evidencing the
initiatives towards improving the funding mix. As of March,
2005, the ratio of core deposits over the total loan portfolio
reached 33.7%, from 30.7% in March 2004.

Funds and portfolios managed by UAM - Unibanco Asset Management
- reached R$34,206 million by the end of March, 2005, up 3.7%
when compared with December, 2004 and 16.6% Y-o-Y (Please also
refer to Businesses Highlights - Wealth Management).

In 1Q05, funding in domestic currency reached R$51,222 million,
up 2.6% Q-o-Q. Funding in foreign currency was up 9.2% Q-o-Q,
amounting to R$13,919 million at the end of March, 2005.

In February, 2005, Unibanco launched a Real-denominated note, in
the amount equivalent to US$125 million, with 5 year-term and
half-yearly interest payments. The security offers coupon in
Reals, pegged to the IGPM Inflation Index plus a fixed rate of
8.9% p.a.. That was the first issue of a Brazilian bank tied to
a inflation index. Unibanco's goal was to create an alternative
and differentiated source of funding, as well as to offer to its
clients in the country competitive funding pegged to the IGPM.

Capital Adequacy and Fixed Asset Ratios

The BIS ratio stood at 16.4%, above the minimum level required
by the Brazilian Central Bank of 11%.

The fixed asset ratio improved from 46.8% in March 2004 to 43.5%
in March 2005, primarily as result of incorporated companies
goodwill amortization at the end of 2004.

Performance Overview

The Brazilian Economy

The beginning of 2005 was marked by the continuous increase in
the basic interest rate, as set by the Central Bank. The
interest rate increased from 17.75% p.a. at the end of 2004 to
19.50% p.a. as defined in the April, 2005 meeting of the
Monetary Policy Council, Copom. The accrued IPCA, consumer price
index, for the first quarter of the year reached 1.8% vs. 1.9%
for the same period last year. The growth in industrial
production was 6.26% vs. the same period last year. Public
accounts continued to post primary surplus, with an accumulated
amount equal to 6.16% of GDP during the first quarter.

By the end of March, the Real had devalued 0.44% vs. the end of
2004. The trade balance remained strong, posting a surplus of
US$8.3 billion from January to March. During the same period
last year, this positive balance amounted to US$6.2 billion. In
terms of sovereign risk perception, a marginal deterioration
occurred, as the EMBI Brazil index reached 456 basis points at
the end of the first quarter, or 73 basis points higher than the
figure at the end of 2004.

Results

Net income in 1Q05 stood at R$401 million, up 45.3% Y-o-Y and
6.9% above the previous quarter. In 1Q05, Unibanco's operating
income reached R$711 million, 51.0% and 33.4% higher when
compared with the same period of last year and the last quarter,
respectively.

Financial margin before provision for loan losses, adjusted by
the net impact of investments abroad, reached R$1,744 million in
1Q05, an increase of 17.1% when compared with 1Q04. Financial
margin after provision stood at R$1,434 million in the quarter,
presenting a growth of 21.9% Y-o-Y and 7.2% Q-o-Q.

Annualized financial margin, after provision for loan losses,
increased from 7.0% in 4Q04 to 7.6% in 1Q05.

Provision for loan losses over the financial margin improved
from 23.1% in 4Q04 to 17.8% in 1Q05.

Personnel and Administrative Expenses

Personnel and administrative expenses in 1Q05 dropped by R$179
million from 4Q04, a decrease of 13.1%.

In 1Q05, personnel expenses presented a decrease of 18.0% when
compared with the previous quarter. The reduction of R$98
million Q-o-Q was influenced mostly by the internal
restructuring process of the company, the back-office and
supporting areas consolidation, the sale of Credicard and
Orbitall, the decrease in the number of lay-offs over the last
quarter and seasonal effects caused by concentration of
vacations during the first quarter.

Compared with 1Q04, personnel expenses presented a decrease of
R$13 million. The impact of the "Collective Wage Agreement" was
offset by the expenses decline generated by internal
restructuring, the operational processes consolidation, and also
the sale of Credicard and Orbitall.

Other administrative expenses decreased by R$81 million in 1Q05
(9.9% Q-o-Q), mainly because of the seasonal decrease in volume
of transactions, the operational processes rationalization, and
the sale of Credicard and Orbitall.

In the 1Q05, other administrative expenses presented a growth of
R$56 million Y-o-Y (an increase of 8.2%), primarily a result of:
acquisitions of HiperCard, BNL and Creditec; higher fee expenses
from services rendered by lawyers involved in repossession of
assets; faster labor agreements; higher marketing expenses;
organic growth of Fininvest; readjustments of public utilities
tariffs, rental and software maintenance contracts, and real
estate lease agreements.

Fees from Services Rendered

Total fees reached R$766 million in 1Q05, up 16.8% Y-o-Y
excluding fees from Credicard and Orbitall (both sold during the
4Q04), and down 3.2% Q-o-Q due to seasonal effects.

Banking fees reached R$436 million in 1Q05, representing an
increase of 7.4% Y-o-Y. Fee revenues from the credit card
business reached R$230 million in 1Q05, growing 44.7% when
compared with 1Q04. Excluding HiperCard revenues from 1Q05, the
growth was 25.2% compared with 1Q04.

Fees from asset management reached R$100 million in 1Q05,
presenting a growth of 9.9% Y-o-Y .

Fee revenues over personnel and administrative expenses
(recurrent revenues and expenses) increased from 62.3% in 4Q04
to 64.6% in 1Q05.

Efficiency Ratio

Unibanco improved its efficiency ratio, reaching 53.7% in 1Q05
from 59.5% in 4Q04, as a result of its efforts to optimize
revenues and rationalize expenses.

Other Operating Income and Expenses

In 1Q05, other operating income and expenses account presented
expenses of R$147 million, almost the same level of the previous
quarter (R$143 million) and down 22.6% compared with 1Q04
expenses of R$190 million.

Goodwill amortization expenses from acquired companies reached
R$25.9 million in 1Q05, a drop of 4.1% Y-o-Y. The slight
reduction occurred mainly because the end of the amortization of
goodwill from Banco Bandeirantes was partially offset by the
amortization of HiperCard goodwill, which started in 2Q04. The
balance of goodwill to be amortized dropped from R$1,331 million
in March 2004 to R$875 million in March 2005, even considering
the goodwill from HiperCard.

Businesses Highlights

Retail

Retail businesses serve around 19 million customers and involve
the following areas:

  - Commercial bank transactions for individuals;
  -  Commercial bank transactions for small and medium
companies;
  -  Credit Cards;
  -  Consumer Finance; and
  -  Car and heavy vehicles financing.

Total individuals loan portfolio amounted to R$12,199 million,
up 30.8% in the last 12 months. The highlight of the period was
the increase of R$735 million Y-o-Y in the consumer finance
companies portfolio, with a growth 44.3% from March, 2004 and
7.2% from December, 2004. The credit card companies portfolio
grew by 32.8% in the last 12 months and decreased by 5.9% from
December 2004, the latter due to seasonal factors.

Branches Network

Unibanco ended 1Q05 with 1,271 branches and corporate-site
branches.

In the first quarter Unibanco launched "Credito Merecido", a
type of loan for retirees and beneficiaries of the INSS
(National Institute of Social Security) in which the
installments are deducted from the monthly benefit.

This product offers loans up to five times the monthly benefit
and can be paid in up to 36 installments.

Unibanco was the first large Brazilian bank to offer directly
this kind of product. "Credito Merecido" is also available in
Fininvest stores.

The Consumer Companies

Unibanco's Consumer Companies are present in the credit card and
consumer finance segments. They are formed by Unicard,
Fininvest, PontoCred (partnership established with Globex,
controlling company of Ponto Frio department store chain),
LuizaCred (partnership with Magazine Luiza department store
chain), HiperCard, Redecard (partnership established with
Citibank, ItaŁ and Mastercard), and by the partnership with
Sonae.

Credit Card Companies

Unicard

Unicard's credit card business posted net earnings of R$41
million in 1Q05, up 13.9% Q-o-Q and up 24.2% Y-o-Y.

Revenues, measured in terms of volume of purchases and cash
withdrawals made by the customers, reached R$1,839 million in
1Q05, up 30.2% from 1Q04 and down 9.9% from 4Q04, the latter due
to seasonal factors.

Loan portfolio reached R$1,577 million in the quarter, 25.0%
above 1Q04. Unicard Unibanco launched the "Unicard Desconto em
Folha" card. The product was originally developed by BNL
Brasil (acquired by Unibanco in 2004). It is characterized by
the deduction of the card's minimum payment directly from the
customer's monthly salary.

HiperCard

HiperCard, the credit card business originated from Bompre‡o
supermarket chain, and acquired by Unibanco in March, 2004,
posted net earnings of R$41 million in 1Q05. In March 31, 2005,
HiperCard's loan portfolio stood at R$1,053 million and the
company had around 74 thousand affiliated stores (Wal-Mart
stores included) and 2.8 million cards issued. The average
financed volume grew by 24.2% in the quarter, due to the ongoing
expansion plan.

Redecard

Redecard equity income was R$27 million in 1Q05, posting a
growth of 42.1% when compared with 1Q04 (including Cons˘rcio
Redecard revenues). In 1Q05, the company processed more than 222
million transactions and revenues amounted to R$14.2 billion,
32.7% above 1Q04.

Consumer Finance Companies

Unibanco's consumer finance companies are Fininvest, LuizaCred
and PontoCred.

Fininvest

Fininvest contributed with R$48 million equity income in 1Q05,
an increase of 9.1% Y-oY.

The company ended 1Q05 with R$1,788 million in credit portfolio
(individuals and companies portfolio), a 11.9% growth when
compared with 4Q04 and 50.8% over the last 12 months. Revenues
in the quarter reached R$1,350 million, a 53.1% growth when
compared with 1Q04.

Blockbuster

BWU Comercio e Entretenimento Ltda., Blockbuster Video's master
franchisee in Brazil, opened 2 new stores in the first quarter,
ending March with 132 stores, of which 120 are wholly-owned and
12 are sub-franchisees. The company posted gross revenues of
R$38.7 million in 1Q05, increasing 11.5% from the first quarter
of 2004.

Unibanco Capitalizacao

Unibanco Capitalizacao posted revenues of R$80 million in 1Q05,
up 11.1% Y-o-Y. The annuity business earnings amounted to R$16
million in 1Q05.

Wholesale - Period's highlights

During 1Q05 Unibanco:

Consolidated Results | 1T05

  - Led the BNDES-exim ranking, with R$217 million disbursed and
market share of 46%.

  - Disbursed R$392 million as financial agent for the BNDES
(Brazilian National Social and Economic Development Bank) and
ranked third in the general BNDES ranking, with a market share
of 8.37%.

  - Acted as coordinator in three debentures issuances (Cadip,
Ampla and Sabesp), which amounted to R$450 million. According to
Anbid (National Association of Investment Banks) ranking,
Unibanco reached second place in debentures origination and
third place in distribution.

  - Was the second most active bank in Cetip (Central Office for
Private Securities) in the derivative instruments market, with a
portfolio of R$1,331 million, strengthening its position among
the most active banks in swap transactions.

  - Accumulated US$1.7 billion balance in foreign trade finance
transactions, up 6.25% in the quarter. This amount resulted from
import, export and international financing warranties.

  - Advised Embraer in the acquisition of Ogma S/A, an aircraft
component maintenance and repair company controlled by the
Portuguese government.

  - Was the leading coordinator of the secondary public offering
of 45.9 million Unibanco Units, owned by Commerzbank and BNL.
The transaction amounted to R$718 million. Unibanco was also
coordinator in the offering of ALL (America Latina Logistica)
Units, in the amount of approximately R$573 million.

Insurance and Private Pension Plans

The insurance and private pension plans businesses posted net
earnings of R$76 million in 1Q05. Insurance and private pension
consolidated technical reserves amounted to R$5,941 million at
the end of the quarter, increasing 37.3% from 1Q04.

1Q05's consolidated revenues for insurance and private pension
plans amounted to R$1,178 million, 14.7% above 1Q04. Insurance
revenues were positively impacted by the corporate segment and
extended warranty performances.

Insurance net premiums written reached R$773 million in 1Q05, up
17.7% from 1Q04.

Operating profits amounted to R$6 million in 1Q05, increasing
20.0% compared with 1Q04.

The combined ratio, which measures the operational efficiency of
insurance companies, was 98.6% in 1Q05. The same ratio, in the
extended concept, which includes financial revenues, reached
85.1% in 1Q05.

Unibanco's insurance and pension plan companies ranked third in
consolidated terms, according to SUSEP (Private Insurance
Regulatory Body), ANAPP (National Association of Private Pension
Funds) and ANS (National Supplementary Health Agency), with 9.5%
market share (February 2005 data).

The company maintained the leadership in the property risks, D&O
(Directors & Officers), aviation, international transportation,
and extended warranty segments, according to the latest industry
data released by SUSEP (as of February 2005).

The Pension Plan business posted net earnings of R$16 million in
1Q05, increasing 23.1% compared with the same period of 2004. In
1Q05, revenues reached R$405 million, up 11.6% from 4Q04.

Unibanco AIG Vida e Previdencia ranked third in pension plan
revenues up to February 2005. As for the sale of corporate
pension plans, also according to ANAPP's data for February 2005,
Unibanco AIG Vida e Previdencia ranked first in accumulated
sales for the year, amounting to R$274 million. The company
services 1,242 corporate clients and 734 thousand individual
customers, of which 220 thousand come from corporate clients,
with 12.9% market share.

Wealth Management

Unibanco Asset Management (UAM) ended March, 2005 with R$34,206
million in assets under management, up 3.7% Q-o-Q and 16.6% Y-o-
Y. Market share in March was 4.84%.

For the third consecutive year, Unibanco Asset Management
received the "Top Gestao de Renda Variavel", an award created
exclusively in Brazil, by Standard & Poor's to Valor Investe
magazine, and published by Valor Econ“mico newspaper. This award
is given to asset managers that post the most consistent results
compared with their peers. The selection combines qualitative
and quantitative criteria, on a three-yearly basis.

As of March, 2005, Private Banking's assets under management
increased 3.1% from December 2004. In the industry global
ranking, published by ANBID in March 2005, Unibanco's Private
Bank holds the 2nd position, with 9.5% market share.

Human Resources

In March, 2005, Unibanco had a total staff of 26,982
professionals.

During the first quarter of 2005, some R$4.7 million was
invested in several training and development activities,
including MBA programs in Brazil and abroad, as well as the
"Atendendo com Excelencia" (Servicing with Excellence) program
and the People Management - Module III program.

The Servicing with Excellence program is designed to improve the
customer service practices of the Branch Network and of the
Corporate Site Branches (PABs). By October 2005, the entire
customer service network will have undergone training.

Module III of the People Management Program, which is part of
the continuous development process of our leaderships, was
initiated in 1Q05. Its main objective is to develop the critical
success factors involved in the process of mobilizing teams
towards the implementation of the strategies and objectives
defined by the company.

Another initiative focused on the value of the relationship with
its employees was the creation of the Extrajudicial
Reconciliation Commission in 1Q05, with the purpose of reducing
the number of labor lawsuits and consequently the ensuing
liabilities. This commission provides laid off employees the
opportunity to claim their rights directly to the company and
the union representatives. Over 90 agreements were signed with
unions, in several cities, by March 2005.

Introduced in July, 2004, "Futuro Inteligente" (Intelligent
Future), a private pension program that incorporates the most
advantageous features of the previous plans. By March 31, 2005,
it has reached 6,848 participants.

Corporate Governance

Units in the Ibovespa

Unibanco Units became part of the Ibovespa index portfolio on
May 2, with an initial weight of 0.984%. The inclusion of the
Unit in the Ibovespa was driven by a series of initiatives,
started in 2003, to foster its liquidity in Brazil.

The average daily volume of Units traded on the Sao Paulo Stock
Exchange (Bovespa) increased from R$4.3 million in the first
quarter of 2004 to R$28.2 million in the first quarter of 2005,
a growth of 555.8%.

In 1Q04, only 7.7% of the daily average financial volume of
Units and GDSs was traded on Bovespa; the balance of 92.3% was
traded on NYSE. During the same period in 2005, the Sao Paulo
Stock Exchange accounted for 32.5% of total volume traded.

IBrX-50 Index

The Units weight in the IBrX-50 Index portfolio effective for
the May-August 2005 period is 2.955%; this is the 9th position
in the index's portfolio.

Quarterly Dividends

The Boards of Directors of Unibanco and Unibanco Holdings
approved in a meeting held on April 8, 2005, the quarterly
distribution of either interest on capital stock/dividends to
shareholders. Until then, payments occurred on a half-yearly
basis.

The first quarterly payment of interest on capital stock took
place on April 29, 2005. The remaining payments are scheduled to
take place at the end of July, 2005, October, 2005 and January,
2006.

Unibanco's distribution policy establishes a minimum payment of
35% of the annual net income, after legal reserves. In the case
of Unibanco Holdings, its entire profit is distributed to its
shareholders, also after the establishment of legal reserves.

Stock option plan

Unibanco's Stock Option Performance Plan is designed to foster
alignment of the interests of executives with the sustainable
generation of value for shareholders in the long term. In 1Q05,
the first stock option exercises took place, for options granted
in 2002: 65 executives exercised their options, to a total of
611,299 Units. Unibanco, in the exercise of its preemptive
rights, repurchased 268.888 Units during this period.

A new options grant to 72 employees took place on February 1,
2005; the number of stock options granted reached 4.2 million.

On March 31, 2005, the stock options granted but not exercised
amounted to 14,251,655 Units. Stock options can be exercised for
the period extending from January 21, 2005 to August 3, 2010,
and their average price is R$11.62.

The annual stock option grants cannot exceed 1% of authorized
capital and the total of options granted and not exercised is
limited to 10% of the authorized capital.

Social Responsibility

Unibanco Institute

In 1Q05, the Unibanco Institute renewed its partnership with the
Municipal Welfare Bureau of Rio de Janeiro for carrying out the
"Das Ruas para Empresas" (From the Streets to Companies)
project, with the purpose of providing professional training to
street vendors and informal workers of the city of Rio de
Janeiro. Fifty youths aged 18 to 24 will graduate from this term
in the program.

The partnership with the Rio de Janeiro City Council for the
"Espa‡o Artesao" (Craftsman's Space) project was also renewed.
This program provides professional training to young people from
low-income communities in activities geared towards cultural
events, such as producing costumes and props. The idea
underlying this initiative is to train young people to work
behind the scenes in the 2006 Carnival, thereby enabling their
integration into the workforce through partnerships with the
League of Samba Schools.

Moreira Salles Institute - IMS

The main highlights of the Moreira Salles Institute during the
first quarter of 2005 were:

  - More than 15 thousand visitors to the 13 exhibitions offered
during the period.
  - 51 guided tours for students of these exhibitions, attended
by 2,278 students.
  - 39 art education activities, movie and theater sessions
provided by the institute for children and teenagers.

  - More than 887 thousand attendees at the movie theatre
sessions in the Espa‡o Unibanco/Unibanco Arteplex chain of
theaters.

New Brand

In March, 2005, Unibanco adopted a new marketing attitude and
revamped its brand. The internal restructuring conducted in 2004
sought to streamline structures and processes, in the continuous
quest for synergies and resource optimization. The new marketing
positioning follows this path. A simpler, clearer, closer and
agile bank - this is where Unibanco plans to direct and sharpen
its efforts going forward.

The logo changed in form and in color. Blue replaces the black
and the "link", a consummate icon of synergy and commitment, was
rescued and updated. The logo itself was only slightly changed,
keeping its original strength.

CONTACT: UNIBANCO - Uniao de Bancos Brasileiros S.A.
         Investor Relations Area
         Ave. Eusebio Matoso, 891 - 15th floor - Sao Paulo, SP
         05423 -901- Brazil
         Tel.: (55 11) 3097-1980
         Fax: (55 11) 3813-6182
         E-mail: investor.relations@unibanco.com
         Web site: http://www.ir.unibanco.com


UNIBANCO: TotalView Platform Boosts Operating Results
-----------------------------------------------------
IEX Corporation, a Tekelec company (Nasdaq: TKLC - News),
announced Thursday the improvement results Unibanco Holdings
S.A. (NYSE: UBB - News)[ADR] has gained with its TotalView
Workforce Management system.

IEX is a leading provider of workforce management and
optimization. Unibanco is one of the largest banks in Brazil.

Unibanco recently shifted from a single skill contact handling
method to a skills-based routing model. Now the company uses
cross-trained agents to handle multiple contact types for each
of its business units: Retail Banking, Wholesale Banking,
Insurance and Wealth Management.

Moises Carneiro da Cunha Jr., Unibanco's executive in charge of
all contact center operations, said migrating to skills-based
routing has greatly increased operational efficiency. "TotalView
was integral to this process. To operate efficiently, we needed
different agents to handle the contacts based on the business
unit. This is a complicated process. But TotalView has made it
easy."

The TotalView Multiskill feature simulates agent skills and
contact arrivals to build accurate forecasts and schedules for
even the most complex skills-based routing scenarios. The
patented Multiskill algorithms use a contact routing simulator
that's built into the agent scheduling program. This enables
TotalView to create effective agent schedules by simulating ACD
and network-level routing rules. The simulator can also evaluate
how changes in contact arrival patterns, agent skills or routing
rules will affect staffing requirements.

"I need to split my world inside the contact center into a lot
of different parts," Cunha said. "TotalView gives me the
visibility I need to do that. With it, I can see what's
happening throughout the day for all of the different areas--
from banking to insurance to credit card customers. Even though
the behavior among customers in each of these segments is
completely different, I can easily prioritize them. TotalView
helps me manage the chaos."

In addition to the Multiskill feature, Unibanco is using
TotalView's Intraday Management and Adherence features to
improve schedule management.

"TotalView's Intraday Management capabilities have helped us
ensure we consistently meet our service level goals," Cunha
said. The Intraday features allow Unibanco to reforecast
throughout the day at 15 and 30-minute intervals. By refreshing
the forecast, the center can quickly react to changes in contact
volume and skill type requirements as well as agent
availability.

"With TotalView, we're able to better control our environment,
which has helped us greatly improve the way we manage our
centers," he added.

The TotalView Workforce Management system enables contact
centers to deliver consistent service with lower operating costs
and higher employee morale. It is designed to improve the
scheduling and agent management processes in both single site
and multisite environments. The system's advanced features
include skills-based and multimedia scheduling, real-time and
historical adherence, intraday and performance management,
enterprise reporting and data exchange, vacation and holiday
planning as well as short and long-term resource planning.
TotalView offers these powerful features with a single-server
architecture that enables easy system installation and
maintenance.

IEX Corporation, a Tekelec company, is a leading provider of
contact center workforce management and business optimization
solutions. Since its inception in 1988, IEX has delivered
superior products, quality services and customers' success.
Contact centers of all types and sizes, totaling more than
755,000 agents at over 2,700 sites in 37 countries worldwide,
rely on IEX to help them improve planning, enhance performance,
streamline tasks and integrate data. IEX sells products and
services worldwide through direct sales and select distributors.
The company also has several strategic partnerships with global
contact center solution providers that further enhance the value
of TotalView. IEX is based in Richardson, Texas. For more
information, visit http://www.iex.com.

With more than 1,000 branches throughout Brazil, Unibanco is one
of Brazil's largest banks. Through its subsidiary, Uniao de
Bancos Brasileiros, the bank operates four core units: Retail
Banking, Wholesale Banking, Insurance and Wealth Management. Its
Retail unit offers home and Internet banking, and its Wholesale
division provides cash management and investment services. The
bank also provides free Internet access to its clients. Under a
joint venture, Unibanco and American International Group (AIG)
sell health and life insurance. Through affiliates, Unibanco
also provides credit card and leasing services.



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

SR TELECOM: Consolidated Revenues Narrow in the 1Q05
----------------------------------------------------
SR Telecom Inc. (TSX: SRX, NASDAQ: SRXA) reported Thursday its
results for the first quarter of fiscal 2005 ended March 31,
2005.

"During our fourth quarter conference call in March we explained
how the effect of reduced supplier credit would result in a
significant decrease in overall sales volumes in the first
quarter of the current fiscal year," said Pierre St-Arnaud, SR
Telecom's President and Chief Executive Officer. "However, we
are encouraged by the support we have received from our
customers and the current level of bookings. In fact, we have
just delivered our first equipment order for the major rural
project in Mexico. Once our recapitalization plan is finalized,
we will be able to resume production at a more normal level and
we expect our sales and deliveries to increase."

Consolidated First Quarter Results

Consolidated revenues for the first quarter of fiscal 2005
totalled $17.9 million, compared to $26.2 million in the first
quarter of fiscal 2004. The consolidated operating loss for the
first quarter of fiscal 2005 was reduced to $10.7 million,
compared to an operating loss of $13.6 million in the same
period in 2004. The consolidated net loss for the first quarter
of 2005 was $13.8 million, compared to a consolidated net loss
of $16.9 million in the corresponding period in 2004.

"Our gross margins were also negatively impacted by the
decreased sales volumes and under-absorbed overhead costs
related to lower manufacturing volumes," Mr. St-Arnaud said.

Wireless Telecommunications Products Segment

Revenues in SR Telecom's core wireless business segment for the
first quarter of fiscal 2005 were $12.8 million, compared to
$21.6 million reported during the same period in 2004. The net
loss for the first quarter of fiscal 2005 totalled $12.9
million, compared to a $15.1 million net loss in the
corresponding period last year.

Selling, general and administrative expenses in the core
wireless business segment decreased sharply to $9.8 million for
the first quarter of 2005, compared to $13.2 million for the
same period in 2004. This decrease was primarily due to the
effects of the restructuring that was implemented in the second
and third quarters of 2004.

Research and development expenses in the core wireless business
segment also decreased significantly, from $7.3 million in the
first quarter of 2004 to $3.5 million in the first quarter of
2005. This decrease is also attributable to the restructuring
initiative that was implemented by the Corporation in 2004. At
this time, the Corporation expects that R&D expenses will remain
stable in comparison to the first quarter levels.

In January 2005, SR Telecom took additional steps to align its
costs with current levels of business activity and temporarily
laid-off 127 employees. The Corporation expects that employees
will be recalled as production returns to customary levels.

Telecommunications Service Provider ("CTR") Segment

For the first quarter of fiscal 2005, CTR's revenues increased
to $5.1 million, compared to $4.6 million in the same period
last year. In peso terms, net revenue in the first quarter of
2005 was 2,408 million pesos, compared to 2,075 million pesos in
the prior period. The improvement is largely attributable to the
increase in access tariffs approved by the Chilean regulator,
Subtel, which took effect on March 1, 2004, and to the
deployment of new lines in urban areas of Chile.

Operating earnings for CTR totalled $350,000 in the first
quarter of fiscal 2005, compared to an operating loss of
$259,000 in the same period last year. CTR's net loss for the
first quarter of 2005 was $879,000 compared to a net loss of
$1.8 million in the corresponding period in 2004.

"As previously forecast, we are confident that CTR will be able
to continue to realize positive EBITDA, and we expect it will
generate approximately $7 million of EBITDA in fiscal 2005,"
said Mr. Adams, SR Telecom's Senior Vice-President, Finance and
Chief Financial Officer.

Financial Position

SR Telecom's consolidated cash and short-term investment
position, including restricted cash, increased to $8.3 million
at March 31, 2005, compared to $6.4 million at December 31,
2004.

Subsequent to quarter end, SR Telecom's Debenture Holders agreed
to provide a five-year secured Credit Facility of up to $50.0
million, subject to execution of final documentation and the
fulfillment of certain conditions. An amount of up to $20.0
million will be available to the Corporation as certain
approvals are received. The balance will be available over the
next three quarters, subject to certain conditions. An initial
drawdown of this Credit Facility is anticipated in May 2005.

Subject to final documentation and registration of the Credit
Facility, the Convertible Debentures, and the CTR loan
restructuring, SR Telecom will have sufficient cash and cash
equivalents, short-term investments, and cash from operations
going forward to satisfy its working capital requirements and
continue operations as a going concern for the next twelve
months.

    Recent Events

- On April 22, 2005, a restricted group representing
approximately 75% of the outstanding 8.15% debentures (the
"Debenture Holders"), agreed to waive compliance with certain
covenants and extended the maturity and interest payment dates
to the earlier of June 30, 2005 and the closing of the proposed
re-capitalization plan.

  - On April 18, 2005, SR Telecom announced that it had entered
into an agreement in principle with the Debenture Holders
regarding a proposed re-capitalization plan. The terms of the
plan include the exchange of the outstanding $71.0 million of
principal and approximately $2.9 million of accrued interest
into 47,266,512 common shares and approximately $63.9 million of
new 10% Convertible Redeemable Secured Debentures, due in 2010.
Each $1,000 in principal amount of new Convertible Debentures
may be converted at the option of the Debenture Holders into
4,727 common shares, representing a conversion price of $0.21
per common share. The debenture exchange is expected to close in
June 2005, subject to the approval of the lenders of CTR.

  - On April 18, 2005, SR Telecom also announced that the
Debenture Holders agreed to provide a five-year secured Credit
Facility of up to $50.0 million, subject to execution of final
documentation and the fulfillment of certain conditions. An
amount of up to $20.0 million will be available to the
Corporation as certain approvals are received. The balance will
be available over the next three quarters, subject to certain
conditions. An initial drawdown of this Credit Facility is
anticipated in May 2005.

  - On April 18, 2005, SR Telecom announced the intention to
file a preliminary prospectus relating to Rights Offering to
existing shareholders. Pursuant to the Rights Offering, the
Corporation will offer to existing shareholders the right to
subscribe up to $40.0 million of new common shares at a price to
be determined, but no less than $0.254 per share. The funds
raised from the Rights Offering will be used for working capital
and general corporate purposes and the pro-rata redemption of
the new Convertible Debentures and the CTR US debt at 95% of
their face value.

  - On April 18, 2005, SR Telecom announced that it has engaged
Mr. William Aziz, Managing Partner of Blue Tree Advisors, as
Chief Restructuring Officer on a contract basis to assist in
identifying and implementing strategies to capitalize on
opportunities for the enhancement of operating performance.

  - On April 4, 2005, SR Telecom announced that it had received
purchase orders valued at approximately $11 million from Siemens
for the ongoing Telefonica TRAC initiative. The new orders are
for the WiMAX-ready symmetry(TM) solution, which Telefonica
intends to use for the rest of the TRAC deployment. Deliveries
are scheduled to commence immediately.

  - On March 21, 2005, SR Telecom announced that it had received
follow-on purchase orders valued at approximately $4 million of
SR500(TM) from Sonatel, the national telecommunications provider
in Senegal as part of a universal access program. Deliveries are
scheduled to commence in the second quarter of 2005.

  - On February 14, 2005, SR Telecom engaged Genuity Capital
Markets to act as financial advisor and investment banker to
assist the Corporation in its refinancing activities. Since its
engagement, Genuity and the Corporation have commenced and are
continuing discussions with the Debenture Holders with respect
to a proposed re-capitalization of the Corporation.

  - On February 14, 2005, SR Telecom reached an agreement with
the lenders of Comunicacion y Telefonia Rural S.A. (CTR), its
service provider subsidiary in Chile. Pursuant to the agreement,
CTR's lenders have waived compliance with certain financial and
operational covenants contained in CTR's loan documents to May
16, 2005. The Corporation and the CTR lenders are in discussions
regarding the proposed re-capitalization plan and the
restructuring of the debt at CTR.

  - On January 26, 2005, SR Telecom announced it had taken steps
to reduce its costs in order to align them with the current
level of business activity and laid-off an additional 127
employees on a temporary basis. The Corporation expects to
recall employees as soon as production returns to normal
volumes.

  - On January 26, 2005, SR Telecom announced follow-on orders
for 15 angel(TM) base stations from Siemens for the ongoing
Telefonica TRAC project. Telefonica selected angel over a number
of competing technologies for an extensive multi-service
Broadband Fixed Wireless Access (BFWA) network, which will
ultimately see the deployment of approximately 100,000 lines
throughout Spain. The TRAC initiative will deliver high quality
voice and high-speed data to suburban and rural areas throughout
the country. The entire TRAC project calls for approximately 475
base stations.

  - On January 26, 2005, SR Telecom announced that its
airstar(TM) product was selected by Teleunit S.P.A, a major
Italian telecommunications operator, for the deployment of its
BFWA network in the Tuscany region. The total value of the
current phase of this project, which marks the first extension
of Teleunit's initial roll-out of airstar systems, is
approximately $1.2 million. Further expansions of the WLL
infrastructure in the Tuscany and Marche regions of Central
Italy are expected to take place throughout 2005.

  - On January 19, 2005, SR Telecom received new orders valued
at approximately $1 million from PT Aplikanusa Lintasarta, the
largest data and corporate network communications provider in
Indonesia. These add-on orders are for a project initiated in
September 2003. Lintasarta has selected airstar wireless
broadband solution to provide ATM, frame relay and clear channel
services to its customers in the Java, Kalmantan and Sulawesi
regions of Indonesia. With these orders, Lintasarta will add
airstar base stations and Customer Premises Equipment to its
growing network of airstar systems.

  - On January 19, 2005, SR Telecom announced the receipt of
purchase orders valued at approximately $10 million from a major
telecommunications operator in Latin America. These orders are
part of a previously announced frame contract under which the
operator selected SR500 family of fixed wireless access systems.
Deliveries are scheduled to take place in the first half of
2005.

About SR Telecom

SR TELECOM (TSX: SRX, Nasdaq: SRXA) designs, manufactures and
deploys versatile, Broadband Fixed Wireless Access solutions.
For over two decades, carriers have used SR Telecom's products
to provide field-proven data and carrier-class voice services to
end-users in both urban and remote areas around the globe. SR
Telecom's products have helped to connect millions of people
throughout the world.

A pioneer in the industry, SR Telecom works closely with
carriers to ensure that its broadband wireless access solutions
directly respond to evolving customer needs. Its turnkey
solutions include equipment, network planning, project
management, installation and maintenance.

SR Telecom is a principal member of WiMAX Forum, a cooperative
industry initiative which promotes the deployment of broadband
wireless access networks by using a global standard and
certifying interoperability of products and technologies.

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

CONTACT: David Adams, Senior Vice-President, Finance and CFO
         Tel: (514) 335-4035

         Scott Lawrence (Maison Brison)
         Tel: (514) 731-0000
         E-mail: scott@maisonbrison.com



=================
G U A T E M A L A
=================

BANCO INDUSTRIAL: IFC to Loan $30M Pending Board Approval
---------------------------------------------------------
The International Finance Corporation said Thursday it will seek
approval from its board to lend up to US$30 million to
Guatemala's largest bank Banco Industrial (BI), reports Business
News Americas. IFC, part of the World Bank, expects to submit
the proposal to the board by June 12.

BI turned to IFC for the loan because of its reputation and
experience in this type of financing, said Ortiz, adding the
bank is not currently looking at acquisitions.

Summary of Project Information:

- Description of Company and Purpose of Project

The project is a subordinated IFC loan of up to $30 million to
Banco Industrial S.A. (BI, the company or the leading Guatemalan
bank). The proposed investment in BI's Tier-II regulatory
capital would enable BI to play a leading role in the ongoing
consolidation of the domestic banking sector by strengthening
BI's capital base. BI's strong market position enables it to
take advantage of expansion opportunities arising from
Guatemala's financial sector reform which is strongly supported
by the World Bank Group.

- Project Sponsor and Major Shareholders of Project Company

The project sponsor is BI, with consolidated total assets of
$2.54 billion and equity of $189 million as of December 31,
2004. It represents 20% of the banking system's total assets and
has a 20% market share in terms of deposits. BI is owned by
approximately 1,400 Guatemalan shareholders, with none of them
holding more than a 5% stake. BI started operations in 1968.
During the first 25 years of operations it focused on servicing
large domestic and multinational corporations operating in
Guatemala. BI has expanded toward small and medium size
companies and individual clients in the course of the past 10
years. It has also launched a successful program for processing
remittances mainly from Guatemalans in the United States to
their relatives back in Guatemala.

- Total Project Cost and Proposed IFC Investment

The total project cost is estimated at $30 million. The proposed
IFC investment is a C loan of up to $30 million for IFC's own
account.

- Location of Project and Description of Site

BI is headquartered in Guatemala City and has a network of more
than 1,175 branches, offices and ATMs nationwide which would
benefit from the investment.

- Project Development Impact and IFC's Role

BI is an economically efficient financial intermediary that
supports a client base of good credit quality, (including the
main exporters of the country) with trade finance, working
capital loans and financing for capital expansion. Sources of
capital to support BI's growth need to be more diversified.
IFC's long-term financing would address this need, augment
shareholders' contributions, and help BI to reduce any maturity
mismatches overall. By strengthening the capital base of the
leading bank in Guatemala, IFC would promote the consolidation
of the financial sector in the country, which is a key precursor
for increased stability. Furthermore, IFC financing would
provide a strong signal to the market, demonstrating that a
deserving institution can attract long-term external resources.
This may stimulate additional international issuances of
subordinated debt by domestic institutions.

- Environmental And Social Issues - Category FI-1

This is an FI Type 1 project. BI will be required to maintain an
environmental and social management system (EMS) to ensure that
its lending activities comply with the applicable environmental
and social requirements of Guatemala.

CONTACTS:  gombima@ifc.org,
           afodil@ifc.org,
           meliaschev@ifc.org., or
           evargas@ifc.org



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

TV AZTECA: Shareholders to Consider By Law Amendments
-----------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish language
television programming in the world, announced Thursday that
Special and Extraordinary Shareholders' Meetings have been
called for May 30, 2005 to consider the amendment of the Ninth,
Fourteenth, Sixteenth, Twenty First, and Twenty Sixth Sections
and related provisions of the By-laws of the Company in order to
harmonize them with the requirements of the Mexican Securities
Market Law (Ley del Mercado de Valores) and the General Rules to
Regulate Issuers and other Participants of the Securities Market
(Disposiciones de Caracter General Aplicables a las Emisoras de
Valores y a Otros Participantes del Mercado de Valores)
published on March 19, 2003 by the Mexican National Banking and
Securities Commission (Comision Nacional Bancaria y de Valores).

The Company's By-laws are publicly available at various websites
including: http://www.tvazteca.com.mx,the Mexican Stock
Exchange (Bolsa Mexicana de Valores, S.A. de C.V.)
(http://www.bmv.com.mx),and the U.S. Securities and Exchange
Commission (http://www.sec.gov).

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT: TV AZTECA, S.A. DE C.V.
         Investor Relations - Bruno Rangel
         Tel: +5255-1720-9167
         E-mail: jrangelk@tvazteca.com.mx

         Media Relations - Daniel McCosh
         Tel: +5255-1720-0059
         E-mail: dmccosh@tvazteca.com.mx



===============
P A R A G U A Y
===============

* PARAGUAY: IMF Details Recent Staff Mission
--------------------------------------------
The following statement was issued in Asuncion by an
International Monetary Fund (IMF) staff mission:

"A mission from the International Monetary Fund (IMF) was in
Asuncion during April 27-May 10, 2005 to conduct discussions for
the fifth review under the program originally approved on
December 15, 2003 for 15 months (see Press Release No. 03/218),
and extended through September 30, 2005 on December 20, 2004
(see Press Release No. 04/271).The mission was headed by Mr.
Alejandro Santos and met with Finance Minister Borda, Central
Bank senior officials, other members of the Cabinet of
Ministers, senior government officials, as well as
representatives from civil society.

"The mission made significant progress in the discussions and
will conduct the final assessment of this review in Washington
in coming weeks after assessing performance in the context of
pending structural targets related to banking legislation and
audits of public entities.

"The main findings of the mission were: There were significant
improvements in the main macroeconomic indicators in 2004,
reflecting a strengthening of the policy framework and supported
by a positive external environment. For 2005, Paraguay confronts
a less favorable external environment, as well as a domestic
drought affecting key crops. In recent months, inflationary
pressures have also emerged, and it will remain critical to
implement strong macroeconomic policies in line with the
government's program to deliver the stable environment needed to
foster growth.

"Despite less favorable conditions, the government's 2005
program remains broadly on track. All quantitative performance
criteria established for end-March 2005 under the Stand-By-
supported program were observed, assisted by a prudent monetary
policy and the application of a financial plan to guide fiscal
policy, while at the same time monitoring that desirable public
expenditure is executed as programmed. However, there have been
some delays in implementing the structural reform agenda.

"A major challenge ahead is to continue efforts to implement the
financial reform agenda. Congressional approval of adequate
legislation on public banking and general banking should pave
the way for a dynamic financial system, which is critical to
allocate efficiently the scarce financial resources to support
long-term growth. Efforts in further refining a development plan
with equity should be an important priority to increase the
potential growth of the economy, and reduce poverty.

"The mission would like to take this opportunity to thank the
authorities and the citizens of Paraguay for their hospitality.
We would like to encourage the general public to read the IMF
documents related to Paraguay's economic program, which can be
found at our website:
http://www.imf.org/external/country/pry/index.htm."

CONTACT: INTERNATIONAL MONETARY FUND
         700 19th Street, NW
         Washington, D.C. 20431 USA

         IMF EXTERNAL RELATIONS DEPARTMENT
         Public Affairs: 202-623-7300 - Fax: 202-623-6278
         Media Relations: 202-623-7100 - Fax: 202-623-6772



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

BANCO WIESE: Italian Parent Denies Pending Stake Sale
-----------------------------------------------------
Contrary to reports circulating in the media last week, Italy's
Banca Intesa is not engaged in any discussions that would lead
to the sale of its majority stake in Peruvian bank Banco Wiese
Sudameris, says Business News Americas. Peru's Finance Minister
Pedro Pablo Kuczynski revealed Thursday that various companies
including Canadian bank Scotiabank (NYSE: BNS) and local
business group Grupo Wong are looking into the possibility of
buying a controlling share in Banco Wiese.

"It may be true that many companies including Scotiabank and
Grupo Wong are interested in buying the bank, but no deal has
been signed and no discussions are underway to sell," Business
News Americas quoted a Wiese Sudameris spokesperson as saying.

Representatives from Intesa added that a delegation from the
parent company is currently meeting with board members of Wiese
Sudameris on an ordinary business visit: not to discuss a
potential sale.



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

PDVSA: BCV Director Discovers Discrepancy in Reported Revenues
--------------------------------------------------------------
Domingo Maza Zavala, director of Venezuelan Central Bank (BCV),
cited a discrepancy in the export revenues declared by state oil
firm Petroleos de Venezuela (PDVSA), reports Business News
Americas. At a meeting Wednesday between Zavala and lawmaker
Csar Rincones, a member of the comptroller committee of the
national assembly, the director disclosed that PDVSA declared
US$8 billion export revenues in the first four months of 2005 to
the central bank.

However, if oil production is about 3.3 million barrels a day
(Mb/d) as what PDVSA president and energy and oil minister
Rafael Ramirez has reported, then PDVSA is not declaring some
US$20 million a day for a total of US$2.4 billion undeclared
revenues in the first four months of the year, Zavala said.

The law, Zavala stressed, obliges PDVSA to declare every dollar
it receives to the Central Bank, which buys the dollars from
PDVSA at the official exchange rate of VEB2,150.6 to the dollar.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve



                            ***********


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

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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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