TCR_Public/040731.mbx            T R O U B L E D   C O M P A N Y   R E P O R T E R

               Saturday, July 31, 2004, Vol. 8, No. 159

                            Headlines


ADELPHIA COMMS: June 2004 Net Loss Narrows to $24.9 Million
ADELPHIA: Century/ML's June 2004 Monthly Operating Report
ANC RENTAL: Reports $12.7 Million in Total Assets at June 30
DII/KBR: Halliburton Reports $663 Million 2nd Quarter Net Loss
ENRON: ENA Examiner's 118th Weekly Report - June 14 to 18, 2004

EXIDE TECH: Releases Post-Confirmation Report Ending May 5, 2004
FASTNET: Files January to March 2004 Monthly Operating Reports
FEDERAL-MOGUL: Reports $12.1 Million Net Earnings in June 2004
FINOVA GROUP: Files 2003 Retirement Plan Annual Report
FOOTSTAR INC: Incurs $10.6 Million Net Loss in June 2004

LOEWEN GROUP: Alderwoods Releases 2nd Quarter Financial Results
PACIFIC GAS: Files 2003 Savings Fund Plan Report with SEC
PARMALAT: Farmland Dairies' June 2004 Monthly Operating Report
PARMALAT: Milk Products' June 2004 Monthly Operating Report
PARMALAT: Releases Monthly Operating Report Ended June 19, 2004

PARMALAT FINANZIARIA: Files Fin'l Reports Ending Dec. 31, 2003
PARMALAT GROUP: Releases Financial Results Ended June 30, 2004
PG&E NATIONAL: ET Gas April 2004 Monthly Operating Report
PG&E NATIONAL: ET Holdings April 2004 Monthly Operating Report
PG&E NATIONAL: ET Investments April 2004 Monthly Operating Report

PG&E NATIONAL: ET Power April 2004 Monthly Operating Report
PG&E NATIONAL: USGen April 2004 Monthly Operating Report
RELIANCE GROUP: Releases June 2004 Monthly Operating Report

                            *********

ADELPHIA COMMS: June 2004 Net Loss Narrows to $24.9 Million
-----------------------------------------------------------

            Adelphia Communications Corporation, et al.
               Unaudited Consolidated Balance Sheet
                        As of June 30, 2004
                      (Dollars in thousands)

                               ASSETS

Cash and cash equivalents                              $202,177
Restricted cash                                          37,552
Subscriber receivables - net                            211,164
Prepaid expenses                                         54,986
Investments                                              21,827
Intercompany receivables                             27,720,678
Related party receivables                             1,770,343
Property, plant and equipment - net                   6,973,235
Intangible assets - net                              15,351,999
Other assets - net                                      433,261
                                                     -----------
Total Assets                                        $52,777,222
                                                     ===========

               LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                       $117,329
Subscriber advance payments and deposits                108,337
Accrued interest and other liabilities                  411,436
Intercompany payables                                   665,614
Related party payables                                  162,681
Parent and subsidiary debt                              530,724
Deferred income taxes                                 2,004,746
                                                     -----------
Total current liabilities                             4,000,867

Liabilities subject to compromise:
    Parent and subsidiary debt                       13,421,601
    Parent and subsidiary debt attributable to
       Rigas family entities                          2,846,156
                                                     -----------
                                                     16,267,757

    Accounts payable                                    889,592
    Accrued interest and other liabilities              519,644
    Intercompany payables                            27,019,794
    Related party payables                            1,233,606
    Redeemable exchangeable preferred stock             148,794
                                                     -----------
Total liabilities subject to compromise              46,079,187
                                                     -----------
Total liabilities                                    50,080,054

Minority interests                                      539,258

Stockholders' equity:
    Convertible preferred stock                             397
    Class A and Class B common stock                      2,548
    Additional paid-in capital                        9,458,327
    Accumulated other comprehensive loss                 (6,750)
    Accumulated deficit                              (4,301,055)
    Treasury stock, at cost                            (149,401)
                                                     -----------
Total                                                 5,004,066

Amounts due from Rigas family entities               (2,846,156)
                                                     -----------
Total stockholders' equity                            2,157,910
                                                     -----------
Total liabilities and stockholders' equity          $52,777,222
                                                     ===========


            Adelphia Communications Corporation, et al.
          Unaudited Consolidated Statements of Operations
                      Month Ended June 30, 2004
                       (Dollars in thousands)

Revenue                                                 $326,878
Cost and expenses:
    Direct operating and programming                     204,267
    Selling, general and administrative                   26,611
    Depreciation and amortization                         90,217
    Impairment of long-lived and other assets                  -
    Non-recurring professional fees                        8,454
                                                     -----------
Operating income (loss) before reorg expenses             (2,671)
Reorganization expenses due to bankruptcy                  5,403
                                                     -----------
Operating loss                                            (8,074)

Other income (expense):
    Interest expense                                     (27,431)
    Equity in losses of affiliates -- net                   (224)
    Minority interest in losses (earnings) of
       subsidiaries                                        6,459
    Other-than-temporary impairment of investments             -
    Other                                                  4,311
                                                     -----------
       Total                                             (16,885)
                                                     -----------
Net loss before income taxes                             (24,959)

Income tax benefit                                            -
                                                     -----------
Net loss from continuing operations                      (24,959)
Discontinued operations                                       -
                                                     -----------
Net loss applicable to common stockholders              ($24,959)
                                                     ===========


            Adelphia Communications Corporation, et al.
          Unaudited Consolidated Statements of Cash Flows
                     Month Ended June 30, 2004
                       (Dollars in thousands)

Cash flows from operating activities:
    Net loss                                            ($24,959)
    Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
       Depreciation and amortization                      90,217
       Amortization of bank financing costs                2,322
       Impairment of long-lived and other assets               -
       Other-than-temporary impairment of investment           -
       Minority interest in earnings (losses)
          of subsidiaries                                 (6,459)
       Equity in losses of affiliates, net                   224
       Gain on sale of assets - net                            -
       Depreciation, amortization and other non-cash
          items from discontinued operations                   -
       Other non-cash items                                    -
       Reorganization expenses due to bankruptcy           5,403
       Non-recurring professional fees                    (5,527)
    Change in assets and liabilities:
       Subscriber receivables - net                         (868)
       Prepaid expenses and other assets - net             6,690
       Other assets - net                                 (5,576)
       Accounts payable                                  (19,268)
       Subscriber advance payments and deposits           17,393
       Accrued interest and other liabilities             11,660
       Liabilities subject to compromise                       -
       Intercompany receivables and payables - net           459
                                                     -----------
Net cash provided by (used in) operations before
    payment of reorganization expenses                    71,711
Reorganization expenses paid during the period            (9,884)
                                                     -----------
Net cash provided by (used in) operating activities       61,827

Cash flows from investing activities:
    Expenditures for property, plant and equipment      (100,485)
    Cash paid for acquisitions                                 -
    Changes in restricted cash                             3,313
    Proceeds on asset sales                                    -
    Investment distributions and contributions                 -
    Related party receivables and payables - net           2,888
                                                     -----------
Net cash used in investing activities                    (94,284)

Cash flows from financing activities:
    Proceeds from debt                                    31,572
    Payments of debt                                      (1,467)
    Payment of DIP bank financing costs                        -
                                                     -----------
Net cash provided by financing activities                 30,105

Change in cash and cash equivalents cash                  (2,352)

Cash, beginning of period                                204,529
                                                     -----------
Cash, end of period                                     $202,177
                                                     ===========

Adelphia-affiliates Arahova Communications Inc., Frontiervision  
Capital Corp., Frontiervision Holdings Capital Corp.,
Frontiervision Holdings Capital II Corp., Frontiervision Holdings  
LP, Frontiervision Operating Partners LP, Olympus Capital Corp.,  
and Olympus Communications LP, also delivered copies of Adelphia's  
consolidated financial statements to the Securities and Exchange  
Commission.

Adelphia Communications Corporation and more than 200 affiliates  
filed for Chapter 11 protection in the U.S. Bankruptcy Court for  
the Southern District of New York on June 25, 2002.  Those cases  
are jointly administered under case number 02-41729.  Shelley C.  
Chapman, Esq., at Willkie Farr & Gallagher represents the ACOM  
Debtors.


ADELPHIA: Century/ML's June 2004 Monthly Operating Report
---------------------------------------------------------

                      Century-ML Cable Venture
                       (Debtor-In-Possession)
                      Unaudited Balance Sheet
                        As of June 30, 2004
                       (Dollars in thousands)

                                ASSETS

Cash and cash equivalents                                $16,090
Subscriber receivables - net                                 542
Prepaid expenses and other assets - net                      281
Investment in Century-ML Corporation                     122,019
Related party receivables                                    231
Property, plant and equipment - net                        6,073
Intangible assets                                          1,528
                                                        --------
     Total assets                                       $146,764
                                                        ========

               LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                              -
Subscriber advance payments and deposits                    $351
Accrued expenses and other liabilities                     1,591
Intercompany payables                                      2,579
Deferred income taxes                                         45
                                                        --------
                                                           4,566
                                                        --------
Liabilities subject to compromise:
     Accounts payable                                         20
     Accrued expenses and other liabilities                1,155
     Intercompany payables                                10,817
                                                        --------
        Total liabilities subject to compromise           11,992
                                                        --------
        Total liabilities                                 16,558
                                                        --------
Partners' equity:
     Partners' contributions                              56,800
     Partners' retained earnings                          73,406
                                                        --------
     Total partners' equity                              130,206
                                                        --------
     Total liabilities and partners' equity             $146,764
                                                        ========


                      Century-ML Cable Venture
                       (Debtor-In-Possession)
                 Unaudited Statement of Operations
                 For the Month Ended June 30, 2004
                       (Dollars in thousands)

Revenue                                                   $1,043

Cost and expenses:
     Direct operating and programming                        441
     Selling, general and administrative                      22
     Management fees                                          40
     Non-recurring professional fees                           -
     Depreciation                                            127
                                                        --------
     Operating income before reorganization
        expenses due to bankruptcy                           413

Reorganization expenses due to bankruptcy                     48
                                                        --------
Operating income                                             365
     Interest income - net                                    11
     Equity in net income of Century-ML Cable
        Corporation - net of taxes                         1,413
                                                        --------
Income before income taxes                                 1,789
     Income tax expense                                      (50)
                                                        --------
Net income                                                $1,739
                                                        ========


                      Century-ML Cable Venture
                       (Debtor-In-Possession)
                 Unaudited Statement of Cash Flows
                 For the Month Ended June 30, 2004
                       (Dollars in thousands)

Cash flow from operating activities:
Net income                                                $1,739
     Adjustments to reconcile net income
         to net cash provided by (used in)
         operating activities:
     Depreciation                                            127
     Reorganization expenses due to bankruptcy                48
     Non-recurring professional fees                           -
     Equity in net income of Century-ML Cable
        Corporation - net of taxes                        (1,413)
     Change in assets and liabilities:
        Subscriber receivables - net                         (70)
        Prepaid expenses and other assets - net              (30)
        Accounts payable                                     (21)
        Subscriber advance payments and deposits              64
        Accrued expenses and other liabilities                38
        Intercompany receivables and payables - net        1,397
                                                        --------
Net cash provided by operating activities                  1,879
                                                        --------
Cash flows from investing activities:
     Expenditures from property, plant and equipment        (110)
                                                        --------
Net cash used in investing activities                       (110)
                                                        --------
Change in cash and cash equivalents                        1,769
Cash and cash equivalents, beginning of period            14,321
                                                        --------
Cash and cash equivalents, end of period                 $16,090
                                                        ========


ANC RENTAL: Reports $12.7 Million in Total Assets at June 30
------------------------------------------------------------
On July 23, 2004, ANC Rental Corporation filed with the United  
States Bankruptcy Court for the District of Delaware their  
required consolidated Monthly Operating Report for the month
ending June 30, 2004 and the cumulative filing to date period
ended June 30, 2004 in a form prescribed by the office of the
United States Trustee of the Department of Justice for the
District of Delaware. The Monthly Operating Report includes data
for the Debtors only.  

Additionally, the Company reported on Form 8-K dated June 14, 2003  
that it has signed an agreement to sell substantially all of its  
assets and transfer certain liabilities to an independent third  
party. The sale was approved by the Bankruptcy Court on August 21,  
2003. The sale transaction closed on October 14, 2003. Following  
the closing, the Company has no remaining operating assets. The  
Company has commenced an orderly liquidation of any assets and  
liabilities which were not sold, pursuant to the Company's Joint  
Plan of Liquidation which was approved by the United States  
Bankruptcy Court on April 16, 2004, as reported on Form 8-K dated  
May 10, 2004. Paragraph 6.5 of the Plan provides that on the  
effective date of the Plan, all ANC Rental Corporation common
stock interests will be extinguished, and no distributions will be
made under the provisions of the Plan in respect of such ANC
Rental Corporation common stock interests.

A full-text copy of ANC Rental's June 2004 Monthly Operating
Report is available at no charge at:

  http://www.sec.gov/Archives/edgar/data/1097523/000095014404007263/g90089e8vk.htm  


Headquartered in Fort Lauderdale, Florida, ANC Rental Corporation,  
is the world's third-largest publicly traded car rental company.   
The Company filed for chapter 11 protection on November 13, 2001  
(Bankr. Del. Case No. 01-11200). Brad Eric Scheler, Esq., and  
Matthew Gluck, Esq., at Fried, Frank, Harris, Shriver & Jacobson,  
represent the Debtors in their restructuring efforts.  When the  
Company filed for protection from their creditors, they listed  
$6,497,541,000 in assets and $5,953,612,000 in liabilities.


                   ANC Rental Corporation, et al.
                       Combined Balance Sheet
                         As of June 30, 2004

                               ASSETS

Current Assets
     Cash -- Investments and Other Cash                $1,333,981
     Cash -- ANC Primary Disbursement                         292
                                                  ---------------
        Total Unrestricted Cash                         1,334,273

     Restricted Cash -- Professional Fee Escrow         5,583,078
     California DMV Restricted Cash                        38,067
     Restricted Cash -- Tax Escrow                      5,658,732
                                                  ---------------
        Total Restricted Cash                          11,279,877

     Accounts Receivable Other                            119,020
     Corporate Accounts                                 3,640,625
     Collision Damage Recovery A/R                      2,873,499
     Collision Damage Recovery Reserve                 (2,873,499)
     Provision -- Trade A/R                            (3,640,625)
                                                  ---------------
        Total Receivables, net                            119,020
                                                  ---------------
     Total Current Assets                              12,733,170

Other Assets
    Deposits - Insurance Collateralization                 58,215
                                                  ---------------
Total Other Assets                                         58,215
                                                  ---------------
Total Assets                                          $12,791,385
                                                  ===============

                       LIABILITIES & CAPITAL

Administrative Liabilities
     Accounts Payable                                  $4,794,875
     Admin Claim -- Legal and Professional Fee                  -
     Accrued Interest on 3rd Party Debt                 6,500,000
     Reserve for Other Admin Claims                       825,000
                                                  ---------------
        Estimated Admin and Prof Fee Reserves          12,119,875

Secured Liabilities
     Accrued Ad-Valorem Tax Reserve                     5,893,951

Priority Liabilities
     Accrued Prepetition Personal Property Taxes        2,264,409
     Other Priority Creditor Accruals                     444,127

General Unsecured Liabilities
     Reserves for General Unsecured Claims            459,825,725
                                                  ---------------
Total Liabilities                                     480,548,087

Total Capital                                        (467,756,702)
                                                  ---------------
Total Liabilities & Capital                           $12,791,385
                                                  ===============


                   ANC Rental Corporation, et al.
                       Statement of Operations
                 For the month ending June 30, 2004

Total Revenues                                                 $0

Expenses
     Citations                                             (1,639)
     Turnback Expense Charges                                   0
     Damage Repair -- Collection                          (22,081)
     Unemployment Taxes -- State                                0
     Payroll Taxes -- Other                                     0
     Bank Service Charges                                   1,640
     Consulting Fees                                      270,894
     Accounting -- Auditing Fees                            2,894
     Legal Fees                                           245,699
     Data Processing Services                               7,855
     Printed Forms/Stationery                                   0
     Rent Expense                                               0
     Utilities                                                  0
     Telephone/Communications                                   0
     Personal Property Taxes                              (11,128)
     Non-Property Taxes                                  (166,282)
     Environmental Costs                                        0
     Miscellaneous Other Expense (Operating)                1,690
     Interest Exp -- Other Notes                          235,500
                                                  ---------------
        Total Expenses                                    565,042
                                                  ---------------
Net Income                                              ($565,042)
                                                  ===============


                   ANC Rental Corporation, et al.
                   Cash Receipts and Disbursements
                  For the month ending June 30, 2004

Cash at Beginning of Period                           $13,590,119

Receipts:
     Credit Card and Local Deposits                             0
     Collections of Accounts Receivable                    31,484
     Other Receipts                                       218,397
                                                  ---------------
        Total Receipts                                    249,881

Disbursements:
     US Trustee Fees Paid                                       0
     Fleet Operating Expenses                                   0
     Personnel - Net Cash Payroll                               0
     Personnel - Payroll Taxes Paid                             0
     Personnel - Benefits Payments                              0
     Personnel - Payments of Garnishments Withheld              0
     Travel Expenses Paid                                       0
     Fuel Rental Fleet Payments                                 0
     Airport - Agency - Concession Fees Paid                    0
     Insurance Payments All                                     0
     Facility & Other Fixed Operating Expenses Paid             0
     Travel Agency Tour Operator Commission Payments            0
     Advertising Payments                                       0
     IT Consulting Payments                                     0
     IT Other Cash Payments                                     0
     Sales Taxes and Other Taxes Paid                   1,141,549
     Professional Fees Paid - Ordinary Course                   0
     Professional Fees Paid - Bankruptcy Professional      76,650
     Other Miscellaneous Operating Expenses Paid            7,651
     Capital Expenditures                                       0
     Interest and Financing Fees Paid                           0
     Vehicle Holding Costs Paid                                 0
     Working Capital Fundings to Subsidiaries                   0
                                                  ---------------
        Total Disbursements                             1,225,850

Net Cash Flow                                            (975,969)
                                                  ---------------
Cash at End of Period                                 $12,614,150
                                                  ===============


DII/KBR: Halliburton Reports $663 Million 2nd Quarter Net Loss
--------------------------------------------------------------
Halliburton (NYSE:HAL) reported second quarter 2004 loss from
continuing operations of $54 million. Impacting continuing
operations for the quarter on an after-tax basis was the
previously announced $200 million charge on the Barracuda-
Caratinga project.

Net loss for the quarter was $663 million and included a net loss
from discontinued operations for the proposed asbestos and silica
settlement of $609 million.  The net loss from discontinued
operations resulted primarily from the second quarter reduction of
the amount recorded as asbestos insurance receivables due to the
pending settlement agreements with domestic insurance carriers.

Revenues were $5.0 billion in the second quarter 2004, up 38% from
the second quarter 2003.  This increase was largely attributable
to additional activity on government services projects in the
Middle East in the Engineering and Construction Group (known as
KBR).

The consolidated pretax operating loss was $19 million in the
second quarter 2004 compared to $71 million operating income in
the second quarter 2003.  This decrease was primarily attributed
to a decline in KBR operating results as a result of a $310
million pretax loss on the Barracuda-Caratinga project, offset by
increased government services work.  KBR second quarter 2003
operating income included a $173 million pretax loss on the
Barracuda-Caratinga project.

The Energy Services Group (ESG) had improved operating income in
each of the four segments.  Revenues increased 7% in the second
quarter 2004 compared to the prior year period, and operating
income for ESG was up 15% in the second quarter 2004. ESG second
quarter 2003 operating income included a $24 million pretax gain
related to the sale of Halliburton Measurement Systems (HMS).

"I am very pleased with our ESG operating performance during the
quarter," said Dave Lesar, chairman, president and chief executive
officer of Halliburton.  "We continue to see growth and
improvement in the energy services business.  The rig count
continues to increase, while our uplift in pricing, coupled with
our focus on cost control, are providing stronger margins.
Sequentially for the quarter, ESG revenue increased $88 million
or 5%, operating income was up $57 million or 27% and operating
margins increased by 2.4 percentage points over the first quarter
2004.

"Also, last week's confirmation of the Plan of Reorganization by
the United States Bankruptcy Court was, we believe, a significant
step forward on our path for resolving our asbestos liability.  
With this confirmation, we are encouraged that we will soon
receive a favorable judgment as the plan moves to the district
court.  The large additional operating loss on Barracuda-Caratinga
in the quarter was disappointing, but we have enhanced our project
management and increased our effort to complete this difficult
project."

                     KBR Second Quarter Results

KBR revenues for the second quarter 2004 were $3.1 billion, a 68%
increase over the second quarter 2003.  The improvement was due to
government contract activities, primarily in the Middle East.

KBR operating loss for the second quarter 2004 was $277 million,
compared to a $148 million loss in the second quarter 2003.  
Second quarter 2004 operating loss included a $310 million loss on
the Barracuda-Caratinga project, which was partially offset by
improved results on government services projects. Second quarter
2003 results included a $173 million loss on the Barracuda-
Caratinga project.

KBR backlog at June 30, 2004 was $8.8 billion, up nearly $400
million from March 31, 2004, primarily due to work on the LogCAP
III contract.  Approximately 23% of the backlog was for fixed-fee
contracts, compared to approximately 26% at March 31, 2004.

Halliburton's Iraq-related work contributed approximately $1.7
billion in revenues in the second quarter 2004 and $23 million in
operating income before corporate costs and taxes.

              Technology and Significant Achievements

Halliburton had a number of advances in technology and new
contract awards.

Energy Services Group new technologies and contracts:

      * Halliburton has been awarded a contract by ConocoPhillips
        estimated to be worth $130 million over three years to
        provide integrated drilling services for its North Sea
        activities.  The contract, awarded to Sperry-Sun, includes
        two additional options up to three years each.  The
        contract is one of the first awarded by ConocoPhillips
        covering all its North Sea operations.  The contract
        includes the provision of directional drilling,
        measurement-while-drilling, logging-while-drilling, mud
        logging and surveying services.

      * Halliburton has been awarded two contracts totaling $230
        million to drill 33 turnkey wells in southern Mexico by
        Petroleos Mexicanos S.A. (Pemex), the state-owned oil
        company of Mexico.

      * Halliburton has been awarded a three-year contract by
        Norsk Hydro to provide drilling services and complementary
        products for the operator's Oseberg South and on the
        Oseberg J-structure in the North Sea.  The contract,
        valued at approximately $120 million, will include
        services from Halliburton's Sperry-Sun and Security DBS
        product service lines, such as directional drilling,
        measurement-while-drilling, logging-while-drilling, mud
        logging and the supply of drill bits.

      * Halliburton has been awarded a five-year contract by BP
        for integrated drilling services in offshore Azerbaijan to
        be performed by Sperry-Sun.  The award provides a
        strategic base of operations for additional Halliburton
        activity in the southern Caspian Sea.

      * Halliburton has been awarded a five-year global technology
        and services agreement with Statoil.  In this agreement
        Landmark Graphics will provide solutions for prospect
        generation, field development planning as well as drilling
        and completions.

KBR new contract awards:

      * KBR has been awarded a contract valued at $175 million
        over five years by the United States Navy to support the
        Hampton Roads naval facilities.  The award is the first
        contract with the United States Navy in Hampton Roads
        since KBR's contract with the Yorktown Weapons Station
        expired in 1999.  KBR's work will involve indefinite
        quantities of facility rehabilitation, alteration, and
        repair work.

      * BP announced on July 1, 2004 its intention to award
        contracts to KBR production services for engineering,
        maintenance, and modification services for its United
        Kingdom assets.  The awards are for an initial period of
        three years but, with options, the contracts could extend
        to a total of nine years.

      * Esso announced its intention to award a five-year contract
        to KBR production services for integrated services for
        design, procurement, and construction on its Bass Strait
        assets in southeast Australia.  KBR had been contracted
        for part of this work scope over the past five years but
        was successful in securing the entire scope under an open
        tender process.

Halliburton, founded in 1919, is one of the world's largest
providers of products and services to the petroleum and energy
industries.  The company serves its customers with a broad range
of products and services through its Energy Services and
Engineering and Construction Groups.  The company's World Wide
Web site can be accessed at http://www.halliburton.com/

A full-text copy of Halliburton's Second Quarter 2004 Results is
available for free at:

http://sec.gov/Archives/edgar/data/45012/000004501204000199/halannounces2ndqtr.htm


ENRON: ENA Examiner's 118th Weekly Report - June 14 to 18, 2004
---------------------------------------------------------------
Harrison J. Goldin, the Examiner for Enron North America,
delivers to the Court his 118th report summarizing the deposits
and disbursements into and out of ENA Accounts for the period
June 14, 2004 through June 18, 2004.

           Third Party Deposits and Disbursements:

           Date                    Deposits        Disbursements
           ----                    --------        -------------
     June 14, 2004                  $59,799             ($3,497)
     June 15, 2004                   10,911            (117,450)
     June 16, 2004                      694              (4,332)
     June 17, 2004                  398,619                 (21)
     June 18, 2004                6,600,000              (3,363)
                               ------------       -------------
               Week Total:       $7,070,023           ($128,662)

           Inter-company Deposits and Disbursements:

           Date                    Deposits        Disbursements
           ----                    --------        -------------
     June 14, 2004                 $117,000                  $0
     June 15, 2004                  117,450            (118,483)
     June 16, 2004                      284                (284)
     June 17, 2004                   59,000             (59,000)
     June 18, 2004                  101,162            (101,486)
                               ------------       -------------
               Week Total:         $394,896           ($279,254)

           Total Deposits and Disbursements:

           Date                    Deposits        Disbursements
           ----                    --------        -------------
     June 14, 2004                 $176,799             ($3,497)
     June 15, 2004                  128,360            (235,933)
     June 16, 2004                      978              (4,616)
     June 17, 2004                  457,619             (59,021)
     June 18, 2004                6,701,162            (104,849)
                               ------------       -------------
               Week Total:       $7,464,919           ($407,916)



EXIDE TECH: Releases Post-Confirmation Report Ending May 5, 2004
----------------------------------------------------------------

                         Exide Technologies
                  Unaudited Condensed Balance Sheet
                          As of May 5, 2004
                           (In thousands)

                               Assets

Current Assets:
    Cash and cash equivalents                             $3,157
    Receivables, net                                     143,182
    Intercompany receivables                              53,228
    Inventories                                          136,226
    Prepaid expense                                       19,494
                                                      ----------
       Total current assets                              355,287

Property, plant & equipment, net                         235,661
Goodwill and other intangibles, net                       40,965
Deferred financing costs                                     301
Investment in subsidiaries & affiliates                    2,212
Intercompany notes receivable                            597,534
Other assets                                              34,503
                                                      ----------
Total Assets                                          $1,266,463
                                                      ==========

                 Liabilities & Stockholder's Equity

Current liabilities:
    Accounts payable                                     $74,322
    Accrued expenses                                      92,631
    Accrued interest payable                              61,853
    Restructuring reserve                                    642
    Warranty reserve                                      26,023
    Current maturities of long-term debt (DIP Facility)  452,875
                                                      ----------
       Total current liabilities                         708,346

Non-current retirement obligations                        32,112
Other non-current liabilities                             15,593
                                                      ----------
       Total liabilities not subject to compromise       756,051

Liabilities subject to compromise
    Accounts payable                                      66,444
    Accrued interest payable                              19,403
    Restructuring reserve                                      -
    Warranty reserve                                           -
    Accrued expenses and other liabilities                52,796
    Retirement obligations                               128,293
    Other non-current liabilities                        133,146
    Long-term debt                                     1,081,293
                                                      ----------
       Total liabilities subject to compromise         1,481,375
                                                      ----------
Total Liabilities                                      2,237,426

Stockholders' equity (deficit)                          (970,963)
                                                      ----------
Total Liabilities & Stockholder's Equity (Deficit)    $1,266,463
                                                      ==========


                         Exide Technologies
                 Unaudited Statement of Operations
                   April 1, 2004 Thru May 5, 2004
                            (In thousands)

Net Sales                                                $81,291
Cost of Sales                                             67,578
                                                      ----------
Gross Profit                                              13,713

Operating Expenses:
    Selling, marketing and advertising                     8,456
    General and administrative                             5,310
    Restructuring and other                                6,114
    Other (income) expense, net                            1,306
    Engineering and R&D                                      735
                                                      ----------
       Total Operating Expenses                           21,921
                                                      ----------
Operating Income (Loss)                                   (8,208)
Interest Expense, net                                      6,157
                                                      ----------
    Loss before tax and minority interest                (14,365)

Income tax (benefit) provision                                -
Minority interest                                             -
                                                      ----------
Net Loss                                                ($14,365)
                                                      ==========


                         Exide Technologies
       Unaudited Schedule of Cash Receipts and Disbursements
                   April 1, 2004 Thru May 5, 2004
                            (In thousands)

Cash Receipts:
    Customer Receipts                                    $86,245
    Other third-party receipts                             1,073
    Borrowings under DIP Facility                        199,157
    Intercompany receipt from non-filing entities         33,379
                                                      ----------
       Total cash receipts                               319,854

Cash Disbursements:
    Supplier payments                                    (31,851)
    Financing costs, fees and interest                    (2,100)
    Capital expenditures                                    (980)
    Freight and logistics                                 (7,926)
    Leasing and rental costs                              (2,199)
    Payroll and benefits                                 (30,404)
    Professional/consulting fees                          (7,064)
    Taxes                                                   (713)
    Utilities                                             (3,360)
    Other disbursements                                  (12,371)
    Intercompany loans to non-filing entities           (146,360)
    Repayments under DIP facility                        (77,899)
                                                      ----------
       Total cash disbursements                         (323,227)

Net cash flow                                             (3,373)
Cash at beginning of period                                6,530
                                                      ----------
Cash at end of period                                     $3,157
                                                      ==========


FASTNET: Files January to March 2004 Monthly Operating Reports
--------------------------------------------------------------
Fastnet Corporation (n/k/a FN Estate Inc.) filed its monthly
operating reports for January, February and March, 2004, with the
United States Bankruptcy Court for the Eastern District of
Pennsylvania on June 30, 2004, and July 20, 2004, respectively.

The Debtors' Monthly Balance Sheets show:

                 Jan. 31, 2004     Feb. 29, 2004    Mar. 31, 2004
                 -------------     -------------    -------------

Assets              8,590,945         7,907,610        8,002,348

Post-petition
Liabilities        4,849,341         4,437,190        4,830,494

Pre-petition
Liabilities       16,311,606        16,292,337       16,269,268

Stockholders'
Deficit           24,656,264        24,908,179       25,178,516
  

Full-text copies of the Debtors' Monthly Operating Reports are  
available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1092536/000101968704001617/0001019687-04-001617-index.htm  


As previously reported, on December 15, 2003, FASTNET Corporation  
and its debtor subsidiaries completed the sale of substantially  
all of their assets, including their Broadband and Dial Up  
Internet Access, Co-location, and Managed Hosting business units,  
to US LEC Corp. for an estimated $8.5 million, plus the assumption  
of certain liabilities. The $8.5 million consisted of $6 million  
in cash, $1.5 million in a promissory note and $1 million in Class  
A common stock of US LEC Corp.  

This sale was completed pursuant to the provisions of the United  
States Bankruptcy Code, and the sale procedures established by the  
Bankruptcy Court, including an auction process. An order approving  
such sale was issued by the United States Bankruptcy Court for the  
Eastern District of Pennsylvania, Case No. 03-23143, on December  
4, 2003.  

This transaction did not include assets associated with the  
Companies' Web Development business, upstate New York wireless  
business, certain wireline operations in upstate New York, certain  
non-operating fixed assets and receivables from former customers.  
As a result of this sale, Fastnet Corporation, Inc. changed its  
name to FN Estate, Inc.
  
On January 15, 2004, the Companies completed the sale of  
substantially all of their assets associated with their Web  
Development business to a group of noteholders of NetReach, Inc.,  
a subsidiary of FASTNET Corporation, in exchange for the surrender  
and transfer to FASTNET Corporation of promissory notes of  
NetReach, Inc. in the aggregate principal amount of $760,000 and  
in consideration of the assumption of certain liabilities. This  
sale was completed pursuant to the provisions of the United States  
Bankruptcy Code.
  
On April 30, 2004, the Companies completed the sale of  
substantially all of their assets used or associated with their  
wireless Internet access operations located in Rochester, New York  
to CBTEK, LLC, a New York limited liability company, for an  
estimated $155,000, plus the assumption of certain liabilities.  
This sale was completed pursuant to the provisions of the United  
States Bankruptcy Code.

On May 4, 2004, FN Estate completed the sale of all of its  
information relating to certain customers in connection with FN  
Estate's wireline operations in the State of New York to Choice  
One Communications of New York, Inc., and agreed to cooperate  
during a finite period of time in the migration of such customers  
to the Choice One network. Pursuant to the asset purchase  
agreement entered into by FN Estate and Choice One, Choice One is  
obligated to pay to FN Estate a percentage of the charges  
collected by Choice One on or before April 30, 2005 from the  
customers that migrate to Choice One on or before June 30, 2004.  
This sale was completed pursuant to provisions of the United  
States Bankruptcy Code.

The Companies are in the process of selling any remaining non-
operating fixed assets and collecting receivables from former  
customers. The Companies anticipate filing a plan of liquidation  
with the Bankruptcy Court no later than August 31, 2004, followed  
by a winding up of their affairs. It is not anticipated that there  
will be any funds available for distribution to shareholders of FN  
Estate.


FEDERAL-MOGUL: Reports $12.1 Million Net Earnings in June 2004
--------------------------------------------------------------

                 Federal-Mogul Global, Inc., et al.
                      Unaudited Balance Sheet
                        As of June 30, 2004
                           (In millions)

                              Assets

Cash and equivalents                                     $312.5
Accounts receivable                                       603.1
Inventories                                               466.4
Deferred taxes                                            199.8
Prepaid expenses and other current assets                 104.1
                                                      ----------
Total current assets                                   [1,685.9]

Summary of Unpaid Postpetition Debits                     (67.3)
Intercompany Loans Receivable (Payable)                 2,489.7
                                                      ----------
Intercompany Balances                                   2,422.4

Property, plant and equipment                           1,089.6
Goodwill                                                1,178.6
Other intangible assets                                   455.1
Insurance recoverable                                     821.6
Other non-current assets                                1,101.1
                                                      ----------
Total Assets                                          [$8,754.3]
                                                      ==========

                Liabilities and Shareholders' Equity

Short-term debt                                          $278.5
Accounts Payable                                          197.9
Accrued Compensation                                       78.2
Restructuring and rationalization reserves                 17.2
Current portion of asbestos liability                         -
Interest Payable                                            0.6
Other accrued liabilities                                 320.2
                                                      ----------
Total current liabilities                                [892.6]

Long-term debt                                                -
Post-employment benefits                                1,480.4
Other accrued liabilities                                 972.7
Liabilities subject to compromise                       6,097.5

Shareholders' equity:
    Preferred stock                                     1,054.7
    Common stock                                          555.4
    Additional paid-in capital                          7,937.7
    Accumulated deficit                                (9,611.2)
    Accumulated other comprehensive income               (625.5)
                                                      ----------
Total Shareholders' Equity                              [(688.9)]
                                                      ----------
Total Liabilities and Shareholders' Equity             [$8,754.3]
                                                      ==========


                 Federal-Mogul Global, Inc., et al.
                 Unaudited Statement of Operations
                 For the month ended June 30, 2004
                           (In millions)

Net sales                                                $295.0
Cost of products sold                                     239.2
                                                      ----------
Gross margin                                               55.8

Selling, general & administrative expenses                (51.0)
Amortization                                               (1.0)
Reorganization items                                       (9.3)
Interest income (expense), net                             (9.2)
Other income (expense), net                                19.7
                                                      ----------
Earnings before Income Taxes                                5.0
Income Tax (Expense) Benefit                                7.1
                                                      ----------
Earnings before effect of change in accounting principle   12.1
Cumulative effect of change in accounting principle           -
                                                      ----------
Net Earnings                                              $12.1
                                                      ==========


                 Federal-Mogul Global, Inc., et al.
                 Unaudited Statement of Cash Flows
                 For the month ended June 30, 2004
                           (In millions)

Cash Provided From (Used By) Operating Activities:
    Net earnings (loss)                                    $12.1
Adjustments to reconcile net earnings (loss):
    Depreciation and amortization                           13.7
    Adjustments of assets held for sale to fair value          -
    Asbestos Charge                                            -
    Summary of unpaid postpetition debits                      -
    Cumulative effect of change in acctg. principle            -
    Change in post-employment benefits                      (0.0)
    Decrease/(increase) in accounts receivable              (0.8)
    Decrease/(increase) in inventories                     (15.1)
    Increase/(decrease) in accounts payable                 13.5
Change in other assets and other liabilities                33.2
    Change in restructuring charge                          (0.6)
    Refunds (payments) against asbestos liability              -
                                                      ----------
Net Cash Provided From Operating Activities                 56.0

Cash Provided From (Used By) Investing Activities:
    Expenditures for property, plant & equipment           (11.3)
    Proceeds from sale of property, plant & equipment          -
    Proceeds from sale of businesses                           -
    Business acquisitions, net of cash acquired                -
    Other                                                      -
                                                      ----------
Net Cash Provided From (Used By) Investing Activities      (11.3)

Cash Provided From (Used By) Financing Activities:
    Increase (decrease) in debt                            (11.6)
    Sale of accounts receivable under securitization           -
    Dividends                                                  -
    Other                                                   (1.2)
                                                      ----------
Net Cash Provided From Financing Activities                (12.9)

Increase (Decrease) in Cash and Equivalents                 31.8
Cash and equivalents at beginning of period                280.6
                                                      ----------
Cash and equivalents at end of period                     $312.5
                                                      ==========


FINOVA GROUP: Files 2003 Retirement Plan Annual Report
------------------------------------------------------
On June 18, 2004, The FINOVA Group, Inc., submitted to the
Securities and Exchange Commission an annual report with respect  
to its Retirement Savings Value Plan for Employees for the fiscal  
year ended December 31, 2003.  The annual report was filed on  
Form 11-K and was made pursuant to Section 15(d) of the  
Securities Exchange Act of 1934.  

                      The FINOVA Group Inc.
           Retirement Savings Value Plan for Employees
       Statement of Net Assets Available for Plan Benefits

                                              At December 31
                                         -----------------------
                                            2003         2002
                                         ----------   ----------
ASSETS

INVESTMENTS, at Fair Value:
Shares of Registered Investment Companies:
Vanguard Windsor Fund                    $9,021,208   $6,660,759
T. Rowe Price Equity Index Fund           7,909,323    6,606,360
T. Rowe Price Stable Val. Common
   Trust Fund                             5,478,546    5,573,263
T. Rowe Price Growth & Income Fund        4,760,820    4,395,022
T. Rowe Price New America Growth Fund     4,263,830    3,302,795
T. Rowe Price Small-CAP Value Fund        4,333,931    3,121,759
Vanguard Bond Index Fund                  2,118,600    2,046,931
T. Rowe Price International Stock Fund    2,357,233    1,878,674
T. Rowe Price Spectrum Income Fund        1,725,305    1,804,373
T. Rowe Price Prime Reserve Fund          1,280,272    1,287,822
T. Rowe Price International Bond Fund       385,986      462,239

Common Stock:
The FINOVA Group, Inc., Common Stock              0      134,895

Participant Notes Receivable                752,287      937,073
                                         ----------   ----------
Total Investments                        44,387,341  $38,211,965

CONTRIBUTIONS RECEIVABLE                     77,957      115,321
                                         ----------   ----------
NET ASSETS AVAILABLE FOR BENEFITS       $44,465,298  $38,327,286
                                         ==========   ==========


                     The FINOVA Group Inc.
           Retirement Savings Value Plan for Employees
               Statement of Changes in Net Assets
                   Available for Plan Benefits
                    
                                         Year Ended December 31
                                         -----------------------
                                            2003         2002
                                         ----------   ----------
Additions (Reductions) to net assets
   attributed to:
      Investment Income:
      Net Appreciation (Depreciation)
        In Fair Value of Investments:
           Mutual Funds                  $8,399,558  ($7,855,157)
           Common Stock                                 (324,589)
      Dividends and Interest Income         859,898      942,235
      Rollover Deposits                       8,579        6,659
                                         ----------   ----------
                                          9,268,035   (7,230,852)
      Contributions:
         Employee                         1,624,897    2,251,313
         Employer                         1,027,154    1,370,239
                                         ----------   ----------
      Total Contributions                 2,652,051    3,621,552
      Total Additions (Reductions)       11,920,086   (3,609,300)

Deductions from Net Assets Attributed to:
   Participant withdrawals                5,782,073    7,765,107

Net Increase (Decrease)                   6,138,013  (11,374,407)

Net Assets Available for  
   Plan Benefits Beginning of year       38,327,286   49,701,693
                                         ----------   ----------
End of year                             $44,465,298  $38,327,286
                                         ==========   ==========

The Savings Plan was established on March 18, 1992 in connection  
with the spin-off of FINOVA and its subsidiaries by The Dial  
Corp.  The assets of the Savings Plan were formerly held in the  
Dial Companies Capital Accumulation Plan and The Dial Corp  
Employee Stock Ownership Plan for the benefit of employees of the  
Company that participated in the Dial Plan and the Dial ESOP.   
The amounts were transferred to the Plan in 1992.

Employees are eligible to become a participant in the Savings  
Plan as of the "entry date" coincident with or immediately  
following the date on which the employee begins employment with  
FINOVA.  Employees are able to reduce their salaries on a pre-tax  
basis, which FINOVA contributes to the Savings Plan.  After-tax  
contributions were permitted through December 31, 1996.

The Savings Plan is subject to various regulations, particularly  
those under Internal Revenue Code Section 401(k) and the Employee  
Retirement Income Security Act of 1974.

Ernst & Young, LLP, audited the Savings Plan's financial  
statements.


FOOTSTAR INC: Incurs $10.6 Million Net Loss in June 2004
--------------------------------------------------------
On July 26, 2004, Footstar, Inc. and its debtor-affiliates filed
their monthly operating report for the period from May 29, 2004 to
July 3, 2004. The Company reports a net loss of $10.6 million in
$85.4 million of net sales.  At July 3, 2004, Footstar, Inc.'s
consolidated balance sheet shows:

         Total Current Assets       282,800,000
         Total Assets             $ 425,100,000
         Current Liabilities        121,100,000
         Total Liabilities  
           Subject to Compromise    181,000,000
         Shareholders' Equity     $  51,900,000


A full-text copy of Footstar, Inc.'s Form 8-K is available at no  
charge at:

  http://www.sec.gov/Archives/edgar/data/1011308/000090951804000636/jd7-26ex_99.txt  


On March 2, 2004, Footstar, Inc. and substantially all of its  
subsidiaries filed voluntary petitions under Chapter 11 of title  
11, United States Code in the United States Bankruptcy Court for  
the Southern District of New York (Case No. 04-22350 (ASH)). The  
Debtors remain in possession of their assets and properties, and  
continue to operate their businesses and manage their properties  
as debtors-in-possession pursuant to sections 1107(a) and 1108 of  
the Bankruptcy Code.


LOEWEN GROUP: Alderwoods Releases 2nd Quarter Financial Results
---------------------------------------------------------------
Alderwoods Group, Inc.(NASDAQ:AWGI) reported their second quarter
results, representing the 12 weeks and 24 weeks, ended June 19,
2004.

The Company reported a total net loss of $6.5 million on revenues
of $164.1 million for the second quarter of 2004, compared with
net earnings of $6.9 million on revenues of $166.5 million, for
the same quarter last year.  The total net loss arose from
impairment charges in the Company's discontinued operations.

>From continuing operations, the Company reported total net income
of $2.6 million for the second quarter of 2004, compared with a
net loss of $1.7 million for the same quarter last year.

Highlights of the second quarter from continuing operations
include:

      -- Funeral services performed for the quarter declined by
         1,302 or 4.6%;

      -- Average revenue per funeral increased 1.8% to $4,026
         from $3,955;

      -- Insurance revenue increased by 28.9% to $17.7 million
         from $13.7 million;

      -- Pre-need funeral contracts written increased 23.9% to
         $44.8 million from $36.2 million;

      -- Total debt was reduced by $18.2 million; and

      -- Net interest expense declined by $3.9 million.

      Highlights for the 24 weeks ended June 19, 2004, from
continuing operations include:

      -- Funeral services performed declined by 1,580 or 2.7%;

      -- Average revenue per funeral increased 2.4% to $4,008
         from $3,913;

      -- Insurance revenue increased by 38.7% to $36.1 million
         from $26.0 million;

      -- Pre-need funeral contracts written increased 13.7% to
         $85.7 million from $75.4 million;

      -- Pre-need cemetery contracts written increased 3.9% to
         $39.3 million from $37.8 million;

      -- Total debt was reduced by $34.8 million; and

      -- Net interest expense declined by $16.6 million, of which
         $7.2 million was a write-off of the unamortized premium
         on long-term debt repayment

Other highlights:

      -- In the second quarter, the Company announced an agreement
         to sell its Security Plan Life Insurance subsidiary for
         $85 million, for an expected pre-tax gain on the sale of
         approximately $17 million

Subsequent events:

      -- Tender offer commenced for all of the Company's 12.25%
         Senior Notes due 2009; and

      -- Optional repayments totaling $15 million on the Term
         Loan B.

Mr. Paul Houston, President and CEO of Alderwoods Group commented,
"Funeral services performed in the second quarter were clearly
disappointing.  While there is evidence of selected market
softness, our immediate focus is on improving this performance.  
We have expanded our marketing programs, community outreach
campaigns and our pre-need selling activities, all of which are
designed to build consumer awareness within the communities where
we operate.  We remain confident that these initiatives will
improve our performance."

"In other areas of our business we continue to see improvements,"
said Mr. Houston.  "We saw an increase in the average revenue per
funeral service.  We achieved sizeable growth in our pre-need
funeral sales, increasing the number of contracts written by
almost 24% and growing our backlog and future call base.  Our
Mayflower insurance business gained further momentum with a
significant increase in revenues.  Although primarily due to the
impact of Rose Hills beginning to use Mayflower's insurance
products, insurance revenues also benefited from the annualized
impact of 2003 pre-need funeral sales. We have also continued to
focus on improving the capital structure of the Company, and last
week we announced a further step towards refinancing our high-cost
long-term debt.  We have also made great strides in our
divestiture plans, and recently announced an agreement to sell our
Security Plan Life Insurance Company.  There has been strong
interest expressed in the remainder of our assets held for sale,
and we expect the sale of these properties to be completed by the
end of the year.  Alderwoods Group has made good progress on many
of its stated corporate objectives so far in 2004, and we believe
this progress is reflected in the improvement in the financial
performance of the continuing operations of our business."

                  Refinancing and Debt Reduction

During the second quarter of 2004, the Company's long-term debt
was reduced by $18.2 million.  As at June 19, 2004, long-term debt
outstanding stood at $596.0 million, a reduction of $238.4 million
since the Company emerged on January 2, 2002.  At the end of the
quarter, cash on hand was $48.2 million.  As a result of
repayments on our long-term debt, the September 2003 and January
2004 refinancings, and the $7.2 million write-off of unamortized
premium on long-term debt repayment, net interest expenses have
been reduced by $16.6 million for the first 24 weeks in 2004
compared to the corresponding period in 2003.

Subsequent to the end of the quarter, the Company optionally
repaid an aggregate principal amount of $15 million of the Term
Loan B from cash on hand.

On July 22, 2004, the Company commenced a cash tender offer and
consent solicitation for its $320.75 million outstanding 12.25%
Senior Notes due in 2009.  The pricing date has been set at August
5, 2004 and the offer is scheduled to expire at midnight EST, on
August 18, 2004. The Company expects to finance the tender offer,
which is subject to certain conditions, with net proceeds from the
issuance of new senior unsecured debt securities and borrowing
under the term loan portion of its senior secured credit facility
in connection with an amendment thereof.  As a result of this
tender offer and related refinancing, the Company expects to
report a charge in the third quarter.  However, the combination of
the tender offer and related refinancing is expected to reduce
interest expense going forward.

          Discontinued Operations and Assets Held for Sale

Over the previous two fiscal years, Alderwoods Group engaged in a
strategic market assessment to identify operating locations that
did not fit into the Company's market or business strategies.  As
a result of this assessment, a significant number of properties
have been identified as assets held for sale and then subsequently
sold.

In the quarter, the Company closed five funeral locations, and
sold one funeral and eight cemetery locations in North America.  
Gross proceeds of these dispositions were $0.9 million.  During
the 12 weeks ended June 19, 2004, the continuation of the sales
process for the funeral and cemetery locations resulted in changes
to the composition of various bid packages.  Although the overall
expected proceeds did not change significantly, the changes in the
various packages caused the Company to re-evaluate the long-lived
asset impairment provision on a package-by-package basis.  As a
result, the Company was required to record a long-lived asset
impairment provision of $11.5 million within discontinued
operations for the 12 weeks ended June 19, 2004, primarily because
unrealized gains associated with properties in the original
packages were no longer available to offset these impairment
amounts. Provided that the properties are ultimately sold for
estimated proceeds, accumulated unrealized gains of approximately
$13 million will be included in income upon disposition.

As of June 19, 2004, the Company continues to hold for sale 59
funeral homes, 53 cemeteries and four combination properties.  The
Company expects these properties to be sold by the end of the
year.

The Company now believes that the identification of businesses for
disposal is substantially complete.  As part of its ongoing
operations, however, Alderwoods Group will continue to evaluate
its individual assets, and will, from time to time, identify a
property for disposal, while at the same time looking at
opportunities to add to its business, sites which are
complementary to its existing locations.

On June 17, 2004, the Company announced the signing of an
agreement by its subsidiary Mayflower National Life Insurance
Company to sell all of the outstanding shares of Security Plan
Life Insurance Company for $85 million to Citizens Insurance
Company of America.  The closing of this transaction is
conditional upon the parties having obtained all necessary
approvals and consents from the applicable regulatory authorities.  
The Company currently expects the transaction to be concluded in
October 2004.  After payment of applicable taxes and expenses, and
recapitalization of Mayflower National Life Insurance Company,
Alderwoods Group expects to realize net proceeds of approximately
$50 million, which it expects will be used to further reduce long-
term debt.  On closing, the Company expects to record a pre-tax
gain on the sale of approximately $17 million.

           Financial Summary 12 Weeks Ended June 19, 2004

Overview Total net loss for the 12 weeks ended June 19, 2004 was
$6.5 million compared to net income of $6.9 million for the 12
weeks ended June 14, 2003, a decrease of $13.4 million.  Basic and
diluted loss per share were $0.16, for the 12 weeks ended June 19,
2004.  Basic and diluted earnings per share were $0.17 for the 12
weeks ended June 14, 2003.

                     Continuing Operations

Total revenue for the 12 weeks ended June 19, 2004, was $164.1
million compared to $166.5 million for the 12 weeks ended June 14,
2003, a decrease of $2.4 million, or 1.5%.  The decrease in total
revenue was the result of decreases in funeral and cemetery
revenues, which were partially offset by an increase in insurance
revenue.

Funeral revenue was $108.1 million, representing 65.9% of total
revenue for the 12 weeks ended June 19, 2004, which was down by
$3.2 million compared to $111.3 million, representing 66.9% of
total revenue, for the 12 weeks ended June 14, 2003.  The decrease
in funeral revenue was primarily due to a decrease in funeral
services performed, which was partially offset by an increase in
average funeral revenue per service.  For the 12 weeks ended June
19, 2004, funeral services performed were 26,846, compared to
28,148 funeral services performed in the 12 weeks ended June 14,
2003, down 4.6% compared to the corresponding period in 2003.  
Average funeral revenue per service was $4,026, for the 12 weeks
ended June 19, 2004, a 1.8% increase per funeral service performed
compared to $3,955 for the 12 weeks ended June 14, 2003.

Funeral gross margin as a percentage of revenue decreased to 21.2%
for the 12 weeks ended June 19, 2004, compared to 22.0% of revenue
for the 12 weeks ended June 14, 2003.  The decrease in gross
margin was primarily due to the decrease in funeral revenue.

Cemetery revenue for the 12 weeks ended June 19, 2004, was $38.3
million, representing 23.3% of total revenue, which was down $3.2
million, or 7.5% compared to $41.5 million, representing 24.9% of
total revenue, for the 12 weeks ended June 14, 2003.  The
increases in at-need service revenue during the 12 weeks ended
June 19, 2003, were more than offset by a decrease in other
revenue, compared to the corresponding period in 2003, because the
Company recorded a one-time $3.9 million reversal of accrued
perpetual care liabilities during the 12 weeks ended June 14,
2003.

Cemetery gross margin as a percentage of revenue was 13.9% of
revenue for the 12 weeks ended June 19, 2004, compared to 19.2% of
revenue for the 12 weeks ended June 14, 2003.  The decrease in the
cemetery gross margin percentage was primarily due to the revenue
decrease.

The Company's insurance operations generated revenue of $17.7
million, representing 10.8% of total revenue for the 12 weeks
ended June 19, 2004, compared to revenue of $13.7 million,
representing 8.2% of total revenue for the 12 weeks ended June 14,
2003.  Insurance revenue increased primarily due to higher premium
and investment income.  Insurance premium revenue is up in 2004
primarily due to the impact of the Company's subsidiary, Rose
Hills, beginning to sell the Company's insurance products.  
Insurance gross margin as a percentage of revenue decreased to
2.7% for the 12 weeks ended June 19, 2004, compared to 3.7% for
the corresponding period in 2003, primarily due to the cost
increase, particularly policy reserves, being at a rate higher
than that of the revenue increase.

General and administrative expenses totaled $9.5 million for the
12 weeks ended June 19, 2004, representing 5.8% of total revenue,
while for the corresponding period in 2003, general and
administrative expenses totaled $11.9 million, or 7.2% of total
revenue.  During the 12 weeks ended June 19, 2004, a $0.9 million
legal claim accrual was reversed, as the Company obtained
approvals for insurance coverage for these costs.  In addition,
general and administrative expenses were reduced by $1.2 million
for corporate receivable recoveries that were previously fully
reserved against.

Previously, the Company designated certain parcels of surplus real
estate as probable for sale, because these parcels no longer meet
the Company's future geographic and strategic objectives.  During
the 12 weeks ended June 19, 2004, the Company removed certain
locations from discontinued operations because they were no longer
going to be sold, or were going to be sold for higher proceeds as
real estate.  As a result, the Company reversed $2.0 million of
long-lived asset impairment provision previously recognized in
discontinued operations.

For the 12 weeks ended June 19, 2004, interest expense was $14.5
million, a decrease of $3.9 million, or 21.5%, compared to the 12
weeks ended June 14, 2003, primarily due to the impact of lower
effective interest rates and debt repayments made by the Company,
which were partially offset by a premium of $1.1 million included
in interest expense for the 12 weeks ended June 19, 2004, as a
result of the repurchase of the principal amount of $9.3 million
of the 12.25% Senior unsecured notes, due in 2009.

For the 12 weeks ended June 19, 2004, net income tax expense was
$1.8 million, compared to $1.2 million for the 12 weeks ended June
14, 2003.  The effective tax rate varied from the statutory rate
due to the losses incurred in certain jurisdictions that did not
offset the tax expenses in profitable jurisdictions.

Net income from continuing operations was $2.6 million, or $0.07
basic and diluted earnings per share for the 12 weeks ended June
19, 2004, compared to a net loss of $1.7 million, or $0.05 basic
and diluted loss per share for the 12 weeks ended June 14, 2003
last year.

Pre-need funeral and cemetery contracts written during the 12
weeks ended June 19, 2004, totaled $44.8 million and $21.0
million, respectively.  For the 12 weeks ended June 14, 2003, pre-
need funeral and cemetery contracts written totaled $36.2 million
and $22.0 million, respectively.  The Company is continuing its
program to increase pre-need sales.  The Company believes that
pre-need sales are an important part of building the foundation
for future revenue and positive cash flow.

                   Discontinued Operations

The Company has classified all the locations identified for
disposal as assets held for sale in the consolidated balance
sheets and recorded any related operating results, long-lived
asset impairment provision, and gains or losses recorded on
disposition as income from discontinued operations.  The Company
has reclassified prior periods to reflect any comparative amounts
on a similar basis.

For the 12 weeks ended June 19, 2004, loss from discontinued
operations, net of tax, was $9.1 million, or $0.23 basic and
diluted loss per share, which included $1.1 million of pre-tax
disposal gains, and a pre-tax long-lived asset impairment
provision of $11.5 million.

          Financial Summary 24 Weeks Ended June 19, 2004

                           Overview

Total net loss for the 24 weeks ended June 19, 2004, was $1.6
million compared to net income of $13.6 million for the 24 weeks
ended June 14, 2003, a decrease of $15.2 million. Basic and
diluted loss per share were $0.04, for the 24 weeks ended June 19,
2004. Basic and diluted earnings per share were $0.34 for the 24
weeks ended June 14, 2003.

                    Continuing Operations

Total revenue for the 24 weeks ended June 19, 2004, was $343.2
million compared to $333.9 million for the 24 weeks ended June 14,
2003, an increase of $9.3 million, or 2.8%.  The increase in total
revenue was the result of the increase in insurance revenue,
compared to the corresponding period in 2003.

Funeral revenue was $232.1 million, representing 67.6% of total
revenue for the 24 weeks ended June 19, 2004, which was down by
$0.6 million compared to $232.7 million, representing 69.7% of
total revenue, for the 24 weeks ended June 14, 2003.  The decrease
in funeral revenue was primarily due to a decrease in funeral
services performed, which was partially offset by an increase in
average funeral revenue per service.  For the 24 weeks ended June
19, 2004, funeral services performed were 57,893, compared to
59,473 funeral services performed in the 24 weeks ended June 14,
2003, down 2.7% compared to the corresponding period in 2003.  
Average funeral revenue per service was $4,008, for the 24 weeks
ended June 19, 2004, a 2.4% increase per funeral service performed
compared to $3,913 for the 24 weeks ended June 14, 2003.

Funeral gross margin as a percentage of revenue decreased slightly
to 22.4% for the 24 weeks ended June 19, 2004, compared to 22.7%
of revenue for the 24 weeks ended June 14, 2003.  The decrease in
gross margin was primarily due to the decrease in funeral revenue.

Cemetery revenue for the 24 weeks ended June 19, 2004, was $75.0
million, representing 21.9% of total revenue, which was down $0.2
million, or 0.2% compared to $75.2 million, representing 22.5% of
total revenue, for the 24 weeks ended June 14, 2003.  Increases in
pre-need space and at-need service revenue during the 24 weeks
ended June 19, 2003, were more than offset by a decrease in other
revenue, compared to the corresponding period in 2003, because the
Company recorded a one-time $3.9 million reversal of accrued
perpetual care liabilities during the 24 weeks ended June 14,
2003.

Cemetery gross margin as a percentage of revenue was 13.8% of
revenue for the 24 weeks ended June 19, 2004, compared to 14.7% of
revenue for the 24 weeks ended June 14, 2003.  The decrease in the
cemetery gross margin percentage was primarily due to increases in
advertising and promotion and facilities costs.

The Company's insurance operations generated revenue of $36.1
million, representing 10.5% of total revenue for the 24 weeks
ended June 19, 2004, compared to revenue of $26.0 million,
representing 7.8% of total revenue for the 24 weeks ended June 14,
2003.  Insurance revenue increased primarily due to higher premium
and investment income.  Insurance premium revenue is up in 2004
primarily due to the impact of the Company's subsidiary, Rose
Hills, beginning to sell the Company's insurance products.  
Insurance gross margin as a percentage of revenue decreased to
3.8% for the 24 weeks ended June 19, 2004, compared to 4.2% for
the corresponding period in 2003, primarily due to the cost
increase, particularly policy reserves, being at a rate higher
than that of the revenue increase.

General and administrative expenses totaled $21.2 million for the
24 weeks ended June 19, 2004, representing 6.2% of total revenue,
while for the corresponding period in 2003, general and
administrative expenses totaled $19.1 million, or 5.7% of total
revenue.  During the 24 weeks ended June 19, 2004, a $0.9 million
legal claim accrual was reversed, as the Company obtained
approvals for insurance coverage for these costs.  In addition,
general and administrative expenses were reduced by $1.2 million
for corporate receivable recoveries that were previously fully
reserved against.  During the 24 weeks ended June 14, 2003,
general and administrative expenses were reduced by $5.0 million,
as a result of a legal claim settlement.

Previously, the Company designated certain parcels of surplus real
estate as probable for sale, because these parcels no longer met
the Company's future geographic and strategic objectives.  During
the 12 weeks ended March 27, 2004, the Company determined that the
carrying amounts of certain of these parcels of the surplus real
estate exceeded the fair market value, less estimated costs to
sell.  During the 12 weeks ended June 19, 2004, the Company
removed certain locations from discontinued operations because
they were no longer going to be sold, or were going to be sold for
higher proceeds as real estate.  As a result, the Company reversed
$2.0 million of long-lived asset impairment provision previously
recognized in discontinued operations. The Company has recorded a
net long-lived asset impairment provision of $0.3 million for the
24 weeks ended June 19, 2004.

For the 24 weeks ended June 19, 2004, interest expense was $20.7
million, a decrease of $16.6 million, or 44.5%, compared to the 24
weeks ended June 14, 2003, primarily due to the impact of lower
effective interest rates and debt repayments made by the Company.  
In addition, an unamortized premium of $7.2 million was credited
to interest expense for the 24 weeks ended June 19, 2004, as a
result of the early retirement of the 12.25% Convertible
subordinated notes, due in 2012, which was partially offset by a
premium of $1.1 million included in interest expense as a result
of the repurchase of the principal amount of $9.3 million of the
12.25% Senior unsecured notes, due in 2009.

For the 24 weeks ended June 19, 2004, net income tax expense was
$7.8 million, compared to a net income tax benefit of $7.9 million
for the 24 weeks ended June 14, 2003.  The income tax benefit for
the 24 weeks ended June 14, 2003 was primarily due to a $9.7
million favorable settlement of a federal income tax audit.  For
the 24 weeks ended June 19, 2004, the effective tax rate varied
from the statutory rate primarily because losses incurred in
certain jurisdictions did not offset the tax expenses in
profitable jurisdictions.

Net income from continuing operations was $12.4 million, or $0.31
basic and diluted earnings per share for the 24 weeks ended June
19, 2004, compared to $12.8 million, or $0.32 basic and diluted
earnings per share for the 24 weeks ended June 14, 2003, last
year.

Pre-need funeral and cemetery contracts written during the 24
weeks ended June 19, 2004, totaled $85.7 million and $39.3
million, respectively.  For the 24 weeks ended June 14, 2003, pre-
need funeral and cemetery contracts written totaled $75.4 million
and $37.8 million, respectively.  The Company is continuing its
program to increase pre-need sales.  The Company believes that
pre-need sales are an important part of building the foundation
for future revenue and positive cash flow.

                   Discontinued Operations

For the 24 weeks ended June 19, 2004, loss from discontinued
operations, net of tax, was $14.0 million, or $0.35 basic and
diluted loss per share, which included $1.1 million of pre-tax
disposal gains, and a pre-tax long-lived asset impairment
provision of $22.8 million.

                      Company Overview

Launched on January 2, 2002, the Company is the second largest
operator of funeral homes and cemeteries in North America based
upon total revenue and number of locations.  As of June 19, 2004,
the Company operated 716 funeral homes, 130 cemeteries and 61
combination funeral home and cemetery locations in the United
States and Canada. Of the Company's total locations, 59 funeral
homes, 53 cemeteries and four combination funeral home and
cemetery locations were held for sale as at June 19, 2004.  The
Company provides funeral and cemetery services and products on
both an at-need and pre-need basis.  In support of the pre-need
business, it operates insurance subsidiaries that provide
customers with a funding mechanism for the pre-arrangement of
funerals.

A full-text copy of Alderwoods' Second Quarter results on Form 10-
Q is available for free at the Securities and Exchange Commission
at:

   http://www.sec.gov/Archives/edgar/data/927914/000104746904024176/a2138514z10-q.txt


                       Alderwoods Group, Inc.
                    Consolidated Balance Sheets
                          At June 19, 2004
                           (In Thousands)

ASSETS
Current assets
    Cash and cash equivalents                          $48,206
    Receivables, net of allowances                      55,068
    Inventories                                         19,720
    Other                                               28,334
    Assets held for sale                               398,865
                                                    ----------
                                                       550,193

Pre-need funeral receivables & trust investments       362,384
Pre-need cemetery receivables & trust investments      317,240
Cemetery property                                      116,186
Property and equipment                                 535,385
Insurance invested assets                              203,351
Deferred income tax assets                               9,984
Goodwill                                               321,476
Cemetery perpetual care trust investments              233,605
Other assets                                            35,117
                                                    ----------
TOTAL ASSETS                                        $2,684,921
                                                    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Accounts payable and accrued liabilities          $136,860
    Current maturities of long-term debt                31,249
    Liabilities associated with assets held for sale   286,740
                                                    ----------
                                                       454,849

Long-term debt                                         564,790
Deferred pre-need funeral and cemetery revenue          65,777
Non-controlling interest in funeral
    and cemetery trusts                                578,358
Insurance policy liabilities                           190,268
Deferred income tax liabilities                         22,488
Other liabilities                                       19,573
                                                    ----------
                                                     1,896,103
                                                    ----------

Non-controlling interest in perpetual care trusts      260,482

Stockholders' equity
    Common stock, $0.01 par value, 100,000,000
       shares authorized, 40,001,069 issued and
       outstanding (January 3, 2004 -- 39,984,979)         400
    Capital in excess of par value                     740,074
   Accumulated deficit                                (224,576)
   Accumulated other comprehensive income               12,438
                                                    ----------
                                                       528,336
                                                    ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $2,684,921
                                                    ==========


                          Alderwoods Group, Inc.
                   Consolidated Statement of Operations
                       12 Weeks Ended June 19, 2004
                              (In Thousands)

Revenue
    Funeral                                           $108,070
    Cemetery                                            38,305
    Insurance                                           17,705
                                                    ----------
                                                       164,080

Costs and expenses
    Funeral                                             85,143
    Cemetery                                            32,969
    Insurance                                           17,219
                                                    ----------
                                                       135,331
                                                    ----------
                                                        28,749

General and administrative expenses                      9,559
Provision for asset impairment                          (2,013)
                                                    ----------
Income from operations                                  21,203

Interest on long-term debt                              14,471
Other expense (income), net                              2,323
                                                    ----------
Income (loss) before income taxes                        4,409
Income taxes                                             1,758
                                                    ----------
Net income (loss) from continuing operations             2,651

Discontinued operations
    Income (loss) from discontinued operations          (7,075)
    Income taxes                                         2,052
                                                    ----------
Income (loss) from discontinued operations              (9,127)
                                                    ----------
Net income (loss)                                      ($6,476)
                                                    ==========


                          Alderwoods Group, Inc.
                   Consolidated Statement of Cash Flows
                       12 Weeks Ended June 19, 2004
                              (In Thousands)

CASH PROVIDED BY (APPLIED TO)
Operations
    Net income (loss)                                  ($6,476)
                                                    ----------
    (Income) loss from discontinued operations,
       net of tax                                        9,127
    Items not affecting cash
       Depreciation and amortization                     9,062
       Amortization of debt issue costs                    777
       Insurance policy benefit reserves                 9,076
       Provision for asset impairment                   (2,013)
       (Gain) loss on disposal of business assets          138
       Deferred income taxes                              (619)
Other, including net changes in other
    non-cash balances                                   12,863
                                                    ----------
Net cash provided by continuing operations              31,935
Net cash provided by discontinued operations             7,089
                                                    ----------
                                                        39,024

Investing
    Proceeds on disposition of business assets           1,887
    Purchase of property and equipment                  (5,337)
    Purchase of insurance invested assets              (12,793)
    Proceeds on disposition and maturities of
       insurance invested assets                         7,952
                                                    ----------
    Net cash provided by continuing operations          (8,291)
    Net cash provided by discontinued operations           265
                                                    ----------
                                                        (8,026)

Financing
    Increase in long-term debt                              --
    Repayment of long-term debt                        (18,162)
    Issuance of Common stock                                 9
                                                    ----------
    Net cash provided by continuing operations         (18,153)
    Net cash provided by discontinued operations           (48)
                                                    ----------
                                                       (18,201)

Increase (decrease) in cash and cash equivalents        12,797
Cash and cash equivalents, beginning of period          35,409
                                                    ----------
Cash and cash equivalents, end of period               $48,206
                                                    ==========


PACIFIC GAS: Files 2003 Savings Fund Plan Report with SEC
---------------------------------------------------------
On June 25, 2004, Pacific Gas and Electric Company delivered to
the Securities and Exchange Commission an annual report with
respect to the Pacific Gas and Electric Company Savings Fund Plan
for Union Represented Employees for the year ended December 31,
2003.  The annual report was filed on Form 11-K and was made
pursuant to Section 15(d) of the Securities Exchange Act of 1934.

A full-text copy of the 2003 Annual Report is available for free
at:

   http://www.sec.gov/Archives/edgar/data/1004980/000100498004000153/utilitysfpar_03.htm  


                 Pacific Gas and Electric Company
         Savings Fund Plan For Union Represented Employees
          Statements of Net Assets Available for Benefits
                          (in thousands)

                                           At December 31,
                                        2003             2002
                                    ------------    ------------
ASSETS:
    Investments at fair value         $1,060,123        $802,244
    Stable Value Fund                    286,442         297,846
    Participant loans                     15,045          19,172
                                    ------------    ------------
    Total investments                  1,361,610       1,119,262

    Interest receivable                      101              93
                                    ------------    ------------
    Total assets                       1,361,711       1,119,355
                                    ============    ============

LIABILITIES                                   28              63
                                    ------------    ------------
NET ASSETS AVAILABLE FOR BENEFITS     $1,361,683      $1,119,292
                                    ============    ============


                 Pacific Gas and Electric Company
         Savings Fund Plan For Union Represented Employees
    Statements of Changes in Net Assets Available for Benefits
                          (in thousands)

                                       Year Ended December 31,
                                        2003            2002
                                    ------------    ------------
ADDITIONS TO NET ASSETS
ATTRIBUTABLE TO:
    Investment income:
       Interest, dividend, and
          other income                    $2,696          $2,072
       Net appreciation in fair
          value of investments           433,281               -
                                    ------------    ------------
    Total investment income              435,977           2,072

    Contributions:
       Employer                           13,880          14,269
       Participant                        56,117          56,299
                                    ------------    ------------
    Total contributions                   69,997          70,568
                                    ------------    ------------
    Total additions                      505,974          72,640
                                    ============    ============

DEDUCTIONS FROM NET ASSETS
ATTRIBUTABLE TO:
    Investment loss:
       Net depreciation in fair
          value of investments                 -         169,995
    Distributions and expenses:
       Distributions to participants      48,265          50,557
       Administrative expenses               208             199
                                    ------------    ------------
    Total distributions & expenses        48,473          50,756
                                    ------------    ------------
    Total deductions                      48,473         220,751
                                    ------------    ------------
NET INCREASE (DECREASE) BEFORE
ASSET TRANSFERS                          457,501        (148,111)

Asset transfers, net                    (215,110)         (9,363)
                                    ------------    ------------
NET INCREASE (DECREASE)                  242,391        (157,474)

NET ASSETS AVAILABLE FOR BENEFITS:
    Beginning of year                  1,119,292       1,276,766
                                    ------------    ------------
    End of year                       $1,361,683      $1,119,292
                                    ============    ============

The Savings Fund Plan is a defined contribution plan covering
certain eligible union employees of PG&E.  The Plan is subject to
the provisions of the Employee Retirement Income Security Act of
1974, or ERISA, as amended.

Deloitte & Touche, LLP, audited the Plan's financial statements.


PARMALAT: Farmland Dairies' June 2004 Monthly Operating Report
--------------------------------------------------------------

                       Farmland Dairies, LLC
                           Balance Sheet
                        As of June 19, 2004

Assets

Cash & Cash Equivalents                              $3,673,418
Accounts Receivable-Trade                            49,555,509
Accounts Rec.-Securitization                        (44,678,656)
Notes Receivable                                        235,723
Inventory                                            15,978,724
Prepaid Expenses                                     15,636,166
Other Current Assets                                    979,240
                                                    ------------
Total Current Assets                                 41,380,124

Fixed Assets                                        214,932,376
Accumulated Depreciation                            115,423,721
                                                    ------------
Net Fixed Assets                                     99,508,655

Other Assets                                         38,873,782
Intercompany Receivables                             81,596,641
                                                    ------------
Total Assets                                       $261,359,202
                                                    ============

Liabilities Subject to Compromise:
    Accounts Payable                                 15,121,571
    Accrued Expenses                                  3,328,328
    Intercompany Payables                            25,318,781
    Capital Lease                                    95,000,000
                                                    ------------
Total Liabilities Subject to Compromise             138,768,680

Liabilities:
    Notes & Loans Payable                                     0
    Capital Leases - Short Term                             687
    Accounts Payable                                 17,753,899
    Accrued Expenses                                 23,056,878
                                                    ------------
Total Current Liabilities                            40,811,464

Notes & Loans Payable                                16,814,318
Capital Leases - Long Term                               48,995
Other                                                 8,389,235
                                                    ------------
Total Long Term Liabilities                          25,252,548

Intercompany Payables                               (82,068,989)
                                                    ------------
Total Liabilities                                   122,763,703

Equity
Paid In Capital                                     161,506,590
Accum Comprehensive Income                           (7,013,988)
Retained Earnings                                    11,323,693
YTD Net Income/(Loss)                               (27,220,796)
                                                    ------------
Total Equity                                        138,595,499
                                                    ------------
Total Liabilities & Owners' Equity                 $261,359,202
                                                    ============


                       Farmland Dairies, LLC
                         Income Statement
                From May 23, 2004 to June 19, 2004

Revenues
    Gross sales                                      $39,663,165
    Less: Returns & discounts                          1,093,193
                                                    ------------
    Net sales                                         38,569,972

Expenses
    Raw Materials & Ingredients                       27,155,547
    Packaging                                          2,465,465
    Direct Labor                                         739,007
    Power                                                471,138
    Freight                                              269,651
    Distribution                                       2,563,942
    Industrial Depreciation                              383,248
    Production Overhead                                2,216,316
    Warehouse (Cooler)                                 1,739,602
    Marketing Costs                                      563,055
    Sales Admin Expenses                                 413,911
    General Expenses                                   1,067,080
    Financial Costs                                      777,818
    Goodwill/trademarks                                    6,755
    Extraordinary                                        113,099
    Corporate Allocation                                 (50,000)
    Income Taxes                                          18,000
                                                    ------------
    Total Expenses                                    40,913,634

Reorganization Expenses                                1,393,390
                                                    ------------
Net Profit (Loss)                                    ($3,737,052)
                                                    ============


                       Farmland Dairies, LLC
                  Cash Receipts and Disbursements
                 From May 23, 2004 to June 19, 2004

Cash - Beginning of Month                             $6,151,999

Receipts From Operations
    Cash Sales                                                 0

Collection of Accounts Receivable
    Prepetition                                                -
    Postpetition                                               -
                                                    ------------
    Total Operating Receipts                          36,883,651

Non - Operating Receipts
    Proceeds from GE Capital                           2,000,000
    Voided Checks (Prepetition)                                -
    Adjustments                                           73,423
    Deposits -- Other                                    311,392
    Transfers                                          4,050,000
                                                    ------------
    Total Non-Operating Receipts                       6,434,815
                                                    ------------
    Total Receipts                                    43,318,466
                                                    ------------
Total Cash Available                                  49,470,465
Operating Disbursements
    Chemicals                                            492,640
    Commissions                                          136,234
    Consulting/Legal                                      68,500
    Co-packing                                           798,082
    Employee & Employee-related expenses                 917,623
    Equipment Leases                                     611,290
    Freight & Postage                                    281,692
    Fuel                                                 263,269
    Transportation                                       598,906
    Ingredients                                        2,046,562
    Insurance                                          1,661,386
    Lab Fees                                              45,648
    Licenses & Taxes                                     169,714
    Marketing                                          4,404,004
    Other                                                914,196
    Packaging                                          2,951,466
    Pallets/Cases/Bossies                                121,163
    Milk Producers                                    16,549,633
    Marketing Administrator                            2,139,337
    Purchased Products                                 1,127,292
    R & M, Parts, Supplies                             1,079,362
    Raw Milk                                           1,273,513
    Rebates                                              268,698
    Rent                                                 (14,642)
    Security                                             162,632
    Temporary Labor                                       47,592
    Travel & Entertainment                                32,530
    Utilities                                            922,313
    Securitization Payments                              163,014
    Payroll                                            3,072,148
    Payroll Taxes                                        442,956
    Voided Checks (Postpetition)                            (346)
                                                    ------------
    Total expenses                                    43,748,406

Reorganization Expenses
    Professional Fees                                  2,014,298
    U.S. Trustee Fees                                          -
    DIP Interest & Fees                                   71,264
                                                    ------------
    Total Reorganization Expenses                      2,085,562
                                                    ------------
Total Disbursements                                   45,833,967
                                                    ------------
Net Cash Flow                                         (2,515,501)
                                                    ------------
Cash - End of Month                                   $3,636,498
                                                    ============


PARMALAT: Milk Products' June 2004 Monthly Operating Report
-----------------------------------------------------------

                   Milk Products of Alabama, LLC
                           Balance Sheet
                       As of June 19, 2004

Assets

Cash & Cash Equivalents                              $1,763,734
Accounts Receivable-Net                               3,620,630
Inventory                                             1,185,037
Prepaid Expenses                                        405,594
Other Current Assets                                      4,521
                                                  --------------
Total Current Assets                                  6,984,516

Fixed Assets                                         10,926,223
Accumulated Depreciation                              6,626,531
                                                  --------------
Net Fixed Assets                                      4,299,692

Other Assets                                            885,023
Intercompany Receivables                                      0
                                                  --------------
Total Assets                                        $12,169,231
                                                  ==============

Liabilities Subject to Compromise
Accrued Expenses                                         45,227
Intercompany payables                                 8,338,493
                                                  --------------
Total Liabilities Subject to Compromise               8,383,720

Liabilities
Accounts Payable                                        239,824
Accrued Expenses                                         31,913
                                                  --------------
Total Current Liabilities                               271,737

Long Term Notes Payable -- Intercompany                       -
Other                                                   135,892
                                                  --------------
Total Long Term Liabilities                             135,892

Intercompany Liabilities                              3,014,542
                                                  --------------
Total Liabilities                                    11,805,891

Equity
Retained Earnings                                        18,414
YTD Net Income/(Loss)                                   344,926
                                                  --------------
Total Equity                                            363,340
                                                  --------------
Total Liabilities & Owners' Equity                  $12,169,231
                                                  ==============


                   Milk Products of Alabama, LLC
                         Income Statement
                From May 23, 2004 to June 19, 2004

Revenues
    Gross sales                                       $4,682,634
    Less: Returns & discounts                                574
                                                    ------------
    Net sales                                          4,682,060

Expenses
    Raw Materials & Ingredients                        3,086,194
    Packaging                                            359,854
    Direct Labor                                          91,558
    Power                                                 59,936
    Freight                                              157,706
    Industrial Depreciation                               35,393
    Production Overhead                                  238,862
    Warehouse (Cooler)                                     9,381
    Marketing Costs                                            0
    Sales Admin Expenses                                  29,350
    General Expenses                                      60,583
    Financial Costs                                       21,474
    Other (Income) Expense                                  (253)
    Extraordinary                                         96,404
    Corporate Allocation                                  50,000
    Income Taxes                                               0
                                                    ------------
    Total Expenses                                     4,296,442

Reorganization Expenses
    Professional Fees                                          -
    U.S. Trustee Fees                                          -
    Other                                                      -
                                                    ------------
    Total Reorganization Expenses                              -
                                                    ------------
Net Profit (Loss)                                       $385,618
                                                    ============


                   Milk Products of Alabama, LLC
                  Cash Receipts and Disbursements
                 From May 23, 2004 to June 19, 2004

Cash - Beginning of Month                             $1,793,046

Receipts From Operations
    Cash Sales                                                 -

Collection of Accounts Receivable
    Prepetition                                                0
    Postpetition                                       4,024,350
                                                    ------------
    Total Operating Receipts                           4,024,350

Non - Operating Receipts
    Transfers                                         (4,050,000)
    Other                                                     86
                                                    ------------
    Total Non-Operating Receipts                      (4,049,914)
                                                    ------------
    Total Receipts                                       (25,564)
                                                    ------------
Total Cash Available                                   1,767,481
    Operating Disbursements
    Bank Charges                                               -
    Freight                                                  804
    Ingredients                                                -
    Licenses & Taxes                                           -
    Packaging                                                  -
    Raw Milk                                                   -
    R & M, Parts, Supplies                                     -
    Other                                                    443
    Warehouse (Cooler)                                         -
    Marketing Costs                                            -
    Sales Admin Expenses                                       -
    General Expenses                                           -
    Financial Costs                                            -
    Goodwill/trademarks                                        -
    Extraordinary                                              -
    Corporate Allocation                                       -
    Income Taxes                                               -
                                                    ------------
    Total expenses                                         1,247

Reorganization Expenses
    Professional Fees                                          -
    U.S. Trustee Fees                                          -
    Other                                                      -
                                                    ------------
    Total Reorganization Expenses                              -
                                                    ------------
Total Disbursements                                        1,247
                                                    ------------
Net Cash Flow                                            (26,812)
                                                    ------------
Cash - End of Month                                   $1,766,234
                                                    ============


PARMALAT: Releases Monthly Operating Report Ended June 19, 2004
---------------------------------------------------------------

                     Parmalat USA Corporation
                           Balance Sheet
                        As of June 19, 2004

Assets

Cash & Cash Equivalents                                      $0
Accounts Receivable-Net                                       0
Notes Receivable -Current                                     0
Inventory                                                     0
Prepaid Expenses                                              0
Other Current Assets                                          0
                                                  --------------
Total Current Assets                                          0

Fixed Assets                                                  0
Accumulated Depreciation                                      0
                                                  --------------
Net Fixed Assets                                              0

Other Assets                                        325,991,861
Intercompany Receivables                             25,230,856
                                                  --------------
Total Assets                                       $351,222,717
                                                  ==============

Liabilities Subject To Compromise
Long Term Debt & Interest                           $19,836,909
Intercompany payables                               212,783,632
                                                  --------------
Total Liabilities Subject to Compromise             232,620,341

Liabilities
Accounts Payable                                              0
Notes & Loans Payable                                         0
Accrued Expenses                                        421,245
Intercompany Payables                                         0
                                                  --------------
Total Liabilities                                   233,041,786

Equity
Common Stock                                          1,388,356
Paid In Capital                                     227,962,103
Retained Earnings                                  (110,643,290)
YTD Net Income/(Loss)                                  (526,238)
                                                  --------------
Total Equity                                        118,180,931
                                                  --------------
Total Liabilities & Owners' Equity                 $351,222,717
                                                  ==============


                     Parmalat USA Corporation
                         Income Statement
                From May 23, 2004 to June 19, 2004

Revenues
    Gross sales                                               $0
    Less: Returns & discounts                                  0
                                                    ------------
    Net sales                                                  0

Expenses
    Raw Materials & Ingredients                                0
    Packaging                                                  0
    Direct Labor                                               0
    Power                                                      0
    Freight                                                    0
    Distribution                                               0
    Industrial Depreciation                                    0
    Production Overhead                                        0
    Warehouse (Cooler)                                         0
    Marketing Costs                                            0
    Sales Admin Expenses                                       0
    General Expenses                                           0
    Financial Costs                                       80,177
    Goodwill/trademarks                                   18,226
    Extraordinary                                              -
    Corporate Allocation                                       -
    Depreciation                                               -
    Amortization                                               -
    Income Taxes                                               -
                                                    ------------
    Total Expenses                                        98,403

Reorganization Expenses
    Professional Fees                                          -
    U.S. Trustee Fees                                          -
    Other                                                      -
                                                    ------------
    Total Reorganization Expenses                              -
                                                    ------------
Net Profit (Loss)                                       ($98,403)
                                                    ============


                     Parmalat USA Corporation
                  Cash Receipts and Disbursements
                From May 23, 2004 to June 19, 2004

Cash - Beginning of Month                                     $0

Receipts From Operations
    Cash Sales                                                 -

Collection of Accounts Receivable
    Prepetition                                                -
    Postpetition                                               -
                                                    ------------
    Total Operating Receipts                                   0

Non - Operating Receipts
    Transfers                                                  -
    Other                                                      -
                                                    ------------
    Total Non-Operating Receipts                               0
                                                    ------------
    Total Receipts                                             0
                                                    ------------
Total Cash Available                                           0

Operating Disbursements
    Rebates                                                    -
    Packaging                                                  -
    Direct Labor                                               -
    Power                                                      -
    Freight                                                    -
    Distribution                                               -
    Industrial Depreciation                                    -
    Production Overhead                                        -
    Warehouse (Cooler)                                         -
    Marketing Costs                                            -
    Sales Admin Expenses                                       -
    General Expenses                                           -
    Financial Costs                                            -
    Goodwill/trademarks                                        -
    Extraordinary                                              -
    Corporate Allocation                                       -
    Income Taxes                                               -
                                                    ------------
    Total Expenses                                             0

Reorganization Expenses
    Professional Fees                                          -
    U.S. Trustee Fees                                          -
    Other                                                      -
                                                    ------------
    Total Reorganization Expenses                              0
                                                    ------------
Total Disbursements                                            0
                                                    ------------
Net Cash Flow                                                  0
                                                    ------------
Cash - End of Month                                           $0
                                                    ============


PARMALAT FINANZIARIA: Files Fin'l Reports Ending Dec. 31, 2003
--------------------------------------------------------------
Parmalat Finanziaria SpA, in Extraordinary Administration,
communicates that the following documents are available from the
registered office and the administrative head office of the
company and from Borsa Italiana SpA:

           (1) A report on the consolidated financial and economic
               position of the Parmalat Group as at December 31,
               2003, along with a brief Management Report and the
               Report of the External Auditors;

           (2) A report on the financial and economic position as
               at December 31, 2003 of Parmalat Finanziaria
               SpA, in Extraordinary Administration;

           (3) A report on the financial and economic position as
               at December 31, 2003 of Parmalat SpA in
               Extraordinary Administration.

These documents are also available on the company Web site
http://www.parmalat.com/in the "Investor Relations" area under
the heading "Financial Data."


PARMALAT GROUP: Releases Financial Results Ended June 30, 2004
--------------------------------------------------------------

           Parmalat Group increases profitability in first half:

           * Group revenues lower at EUR2.37 billion
             (2003: EUR2.68 billion)

           * Group EBITDA higher at EUR79.4 million
             (2003: EUR73.6 million)

           * Italy, South Africa, Canada and Australia are
             strongest Core Activity EBITDA performers

           * Parmalat Group Net Financial Position substantially
             stable

Parmalat Finanziaria SpA in Extraordinary Administration
communicates the financial results for the Parmalat Group as at 30
June 2004.

                         FINANCIAL RESULTS

                       First Half Highlights
                         (in EUR millions)

                  Revenues           EBITDA       % of Revenues
             -----------------  -----------------  ---------------
               Prev.  Current     Prev.   Current   Prev.  Current
               Year     Year      Year     Year     Year    Year
             --------  -------  --------  -------  ------- -------
Core
Activities   1,820.3   1,784.8   115.4     124.6      6.3     7.0

Non-Core
Activities     432.2     308.4   (27.6)    (12.5)    (6.4)   (4.1)
             --------  -------  --------  -------  ------- -------

Activities
Subject to
Special
Procedures     436.8     282.1   (14.2)    (32.7)    (3.3)  (11.6)
             --------  -------  --------  -------  ------- -------
Total        2,689.3   2,375.3    73.6      79.4      2.7     3.3
             ========  =======  ========  =======  ======= =======

  

                      First Quarter Highlights
                         (in EUR millions)

                  Revenues           EBITDA       % of Revenues
             -----------------  -----------------  ---------------
               Prev.  Current     Prev.   Current   Prev.  Current
               Year     Year      Year     Year     Year    Year
             --------  -------  --------  -------  ------- -------
Core
Activities     845.4     835.6    45.8      55.3      5.4     6.6

Non-Core
Activities     207.9     155.7   (12.2)     (4.5)    (5.9)   (2.9)
             --------  -------  --------  -------  ------- -------

Activities
Subject to
Special
Procedures     221.4     131.5    (6.3)    (15.1)    (2.8)  (11.5)
             --------  -------  --------  -------  ------- -------
Total        1,274.7   1,122.8    27.3      35.7      2.1     3.2
             ========  =======  ========  =======  ======= =======


                     Second Quarter Highlights
                         (in EUR millions)

                  Revenues           EBITDA       % of Revenues
             -----------------  -----------------  ---------------
               Prev.  Current     Prev.   Current   Prev.  Current
               Year     Year      Year     Year     Year    Year
             --------  -------  --------  -------  ------- -------
Core
Activities     974.9     949.2    69.6      69.3      7.1     7.3

Non-Core
Activities     224.3     152.7   (15.4)     (8.0)    (6.9)   (5.3)
             --------  -------  --------  -------  ------- -------

Activities
Subject to
Special
Procedures     215.4     150.6    (7.9)    (17.6)    (3.7)  (11.7)
             --------  -------  --------  -------  ------- -------
Total        1,414.6   1,252.5    46.3      43.7      3.3     3.5
             ========  =======  ========  =======  ======= =======

      * Core Activities: consist of drinks products (milk and
        fruit juice) and milk-based products, focused on
        approximately 30 brands ("global" brands or strong local
        brands), centered on high potential countries where there
        is strong demand for healthy lifestyle products, the
        willingness to recognize premium prices for the Parmalat
        brand and the availability of leading edge technology.

      * Non-core activities: these are countries and activities
        considered to be non-strategic that will be subject to
        divestment.

      * Activities subject to special procedures: these are
        activities outside Italy subject to restrictions on their
        management as a result of local bankruptcy proceedings.

The figures are not comparable with those contained in the "Report
on Activities for the Half Year from January to June 2003"
published on 11 September 2003 and in the "Directors' Report on
the First Quarter Results of 2003" published on 15 May 2003.

                          Core Activities

Parmalat's Core Activity revenues have generally held up well when
compared to the same period in the previous year (EUR1,784.8
million compared to EUR1,820.3 million), while EBITDA improved by
7.9% to EUR124.6 million compared to EUR115.4 million for the same
period in 2003.

This improvement in operating results is largely down to
initiatives of a commercial nature and thanks to operating and
structural cost reduction measures.

In particular, reviewing the Group's main geographical areas of
operation, the following can be noted:

      -- Italy

         Revenues for the period reached EUR692.0 million, down
         6.8% compared to the EUR742.7 million recorded in the
         same period in 2003.  But while revenues fell, EBITDA
         improved by 17.1% from EUR40.4 million at 30 June 2003
         to EUR47.3 million at 30 June 2004.

         The trend therefore remains a positive one even if
         somewhat reduced compared to the previous months as a
         result of a lower contribution from fruit juices compared
         to the same period last year owing to the different
         weather conditions and to the seasonality of pasteurized
         milk the level of whose sales fall in the summer months
         and which has translated into a lower contribution to
         results.

      -- Spain

         Revenues for the period were EUR114.3 million compared to
         the EUR115.5 million achieved as at 30 June 2003.  EBITDA
         for the same period was down from EUR11.3 million to
         EUR7.9 million.  The factors underlying the decrease in
         EBITDA were an 8% increase in the cost of milk and a
         lower contribution from the seasonally influenced Royne
         branded ice creams given the less clement weather
         conditions than were seen in the same period last year.

      -- South Africa

         Revenues as at 30 June 2004 of EUR113.1 million grew
         30.9% compared to the EUR86.4 million of the same period
         in 2003.  EBITDA also grew significantly from
         EUR6.7 million to EUR9.3 million (+38.8%).  This increase
         in profitability was principally due to the acquisition
         of new brands (Simonsberg) as well as the appreciation of
         the South African Rand against the Euro (+7.5%).

      -- Venezuela

         The absence of sufficient credit lines for the import of
         raw materials (powdered milk) led to a reduction in
         revenues which fell from EUR96.5 million as at 30 June
         2003 to EUR74.8 million as the end of May 2004
         (-22.5%) and, above all, the strong decrease in operating
         profitability which fell from ?13.5 million to
         EUR2.1 million as a result of increased raw material
         costs in the local market and higher relative structural
         costs.

      -- Canada

         The Canadian market maintained the slight growth trend of
         the previous months at the revenue level moving from
         EUR546.2 million to EUR557.6 million, while EBITDA of
         EUR35.6 million at the end of June 2004 was stable
         compared to the same period in 2003 (EUR35.7 million).

      -- Australia

         Revenues reached EUR182.6 million, up 4.2% compared to
         the EUR175.3 million of the same period in 2003.
         Similarly, EBITDA for the period was EUR13.8 million
         compared to EUR12.7 million last year (+8.7%).  The
         improvement in results derives from the favorable
         movement of exchange rates, and, at the EBITDA level also
         from a reduction in general and promotional costs.

                      Non-Core Activities and
             Activities Subject to Special Procedures

The negative result for the businesses covered under these
headings is mainly down to the performance of the Brazilian and
US operations.

      -- Brazil

         Revenues fell from EUR183.8 million to EUR66.0 million
         (-64.1%) while EBITDA worsened from a negative EUR13.1
         million to a negative EUR21.6 million as a result of the
         serious financial crisis faced by the company.  This
         said, the continuing pick-up in sales should be noted.
         The Brazilian business has filed all the documentation
         necessary to be admitted to the Concordata procedure and
         is currently awaiting the response of the presiding
         Judge.

      -- USA

         The consolidated figures show a reduction in revenues
         (from EUR409.7 million as at 30 June 2003 to EUR342.4
         million as at 30 June 2004) and a reduction in operating
         results which fell from a negative ?6.1 million in the
         period in 2003 to a negative EUR8.5 million at the end of
         June 2004.  The Dairy activities were hit by the Group's
         serious financial crisis and have been placed under
         Chapter 11 protection.  This crisis has resulted in a
         significant reduction in revenues and a worsening of
         EBITDA.  The Bakery activities saw a reduction in
         revenues but a significant improvement in operating
         profitability (even if this remains in negative
         territory) thanks to the restructuring and reorganization
         process now under way in the business.

                       NET FINANCIAL POSITION

                   Highlights (in EUR millions)

                                          Situation as at
                                     06/30/2004      12/31/2003
                                    ------------    ------------
      Short Term Financial Assets         (143.1)         (121.4)
         of which:
         Liquid financial assets            (9.6)          (20.9)
         Available liquidity              (133.5)         (100.5)

      Accruals on Financial Assets         (62.4)          (61.9)
                                    ------------    ------------
      Total Short Term
         Financial Assets                 (205.5)         (183.3)

      Financial Debt                    13,768.9        13,457.5
      Accruals on Financial
         Liabilities                       260.1           256.2
                                    ------------    ------------
      Total Financial Liabilities       14,029.0        13,713.7
                                    ------------    ------------
      Financial Indebtedness/
         (Positive fin. position)       13,823.5        13,530.4
                                    ============    ============

In addition, further financial debt if EUR132 million must be
taken into account in relation to the situation as at December 31,
2003 relating to companies that are not totally consolidated and
towards connected and controlling companies. This amount is
substantially unchanged as at 30 June 2004 compared to 31 December
2003.

The figures still contain an element of uncertainty as regards
some of the companies in the Group that are subject to
restrictions as a result of local procedures (in particular
Brazil and US Dairy).  Financial debt should be considered as
being largely short-term in nature, given the current situation
of theoretical default on the covenants underlying the financial
contracts.  A number of companies are currently in talks to
renegotiate their debt in order to consolidate it.  Among these
it should be noted that the Group's Canadian operating companies
have finalized during the course of July the refinancing of their
debt.  This entailed a EUR43.7 million penalty for the early
redemption of the previous debt as a result of the default
situation in which the company found itself.  Following payment
of this penalty new financing was put in place that will be
repaid by 2012 and that has been included in the calculation of
the Group's financial position as at 30 June of this year.

[T]he Group's net financial position is substantially unchanged
and has been effected by two factors:

      -- on the asset side there has been an increase in the level
         of available liquidity, thanks largely to the attention
         paid to the management of available resources and to the
         disposal of Parmalat SpA's holdings in MCC SpA and Banca
         di Roma SpA and of Parmalat Finanziaria SpA's disposal of
         its holding in Fondo Alfieri.

      -- on the liability side there has been a small increase
         almost entirely resulting from a worsening of the rate of
         exchange between the Euro and currencies in countries
         outside Europe where the Group operates, and an increase
         in accruals for liabilities for interest.

No use has been made until now of the line of credit of EUR105.8
million provided by a pool of banks on March 4, 2004.

        Principal Companies in Extraordinary Administration

The tables summarize the situations of the principal Italian
companies in Extraordinary Administration.

                     Parmalat Finanziaria SpA
                   (Values in millions of Euros)

                                          Situation as at
                                     06/30/2004      12/31/2003
                                    ------------    ------------
      Short Term Financial Assets         (139.9)         (140.8)
         of which:
         Interco. Financial Credits       (138.8)         (138.8)
         Liquid financial assets             0.0            (2.0)
         Available liquidity                (1.1)            0.0

      Accruals on Financial Assets
         (incl. Interco.)                    0.0            (0.6)
                                    ------------    ------------
      Total Short Term
         Financial Assets                 (139.9)         (141.4)

      Financial Debt
         (incl. Intercompany Debt)       1,272.9         1,269.9
         of which:
         Intercompany Financial Debt     1,010.9         1,007.8
         Other Financial Debt              262.0           262.1

      Accruals on Financial
         Liabilities
         (incl. Interco.)                    4.7             4.8
                                    ------------    ------------
      Total Financial Liabilities        1,277.6         1,274.7
                                    ------------    ------------
      Financial Indebtedness/
         (Positive fin. position)        1,137.7         1,133.3
                                    ============    ============

The net financial position of the company is substantially
unchanged with a small increase in available liquidity.

                            Parmalat SpA
                   (Values in millions of Euros)

                                          Situation as at
                                     06/30/2004      12/31/2003
                                    ------------    ------------
      Short Term Financial Assets          (61.3)          (54.3)
         of which:
         Interco. Financial Credits        (38.6)          (28.0)
         Liquid Financial Assets             0.0           (19.7)
         Available liquidity               (22.7)           (6.6)

      Accruals on Financial Assets
         (incl. Interco.)                    0.0             0.0
                                    ------------    ------------
      Total Short Term
         Financial Assets                  (61.3)          (54.3)

      Financial Debt
         (incl. Intercompany Debt)       4,149.0         4,149.0
         of which:
         Intercompany Financial Debt     1,266.2         1,266.2
         Other Financial Debt            2,882.8         2,882.8

      Accruals on Financial
         Liabilities
         (incl. Interco.)                    0.0             0.0
                                    ------------    ------------
      Total Financial Liabilities        4,149.0         4,149.0
                                    ------------    ------------
      Financial Indebtedness/
         (Positive fin. position)        4,087.7         4,094.7
                                    ============    ============

The net financial position of Parmalat SpA presents a positive
variation for the period moving from a negative EUR4,094.7 million
to a negative EUR4,087.7 million, and improvement of EUR7.0
million.  Liabilities were unchanged, while available financial
resources were positively effected by the divestment of the
holdings in MCC SpA and Banca di Roma SpA. These divestments along
with the performance of the operating business, generated new cash
that permitted, above and beyond covering the ongoing requirements
of the business, an increase in the total available liquidity (up
from EUR6.6 million to EUR22.7 million) and the granting of
intercompany credits of EUR20.1 million, principally in favor of
units in North America (EUR10.7 million), Parmalat Finanziaria
(EUR3.1 million), Parmalat Uruguay (EUR1.7 million) and units in
Germany (EUR1.6 million), that have now been partially written
down.
     
                            Eurolat SpA
                   (Values in millions of Euros)

                                          Situation as at
                                     06/30/2004      12/31/2003
                                    ------------    ------------
      Short Term Financial Assets          (19.8)          (13.6)
         of which:
         Interco. Financial Credits          0.0             0.0
         Liquid Financial Assets             0.0             0.0
         Available liquidity               (19.8)          (13.6)

      Accruals on Financial Assets
      (incl. Interco.)                      (0.1)            0.0
                                    ------------    ------------
      Total Short Term
         Financial Assets                  (19.6)          (13.6)

      Financial Debt
         (incl. Intercompany Debt)         190.7           191.9
         of which:
         Intercompany Financial Debt        45.8            45.8
         Other Financial Debt              144.9           146.1

      Accruals on Financial
         Liabilities
         (incl. Interco.)                    0.0             1.5
                                    ------------    ------------
      Total Financial Liabilities          190.7           193.4
                                    ------------    ------------
      Financial Indebtedness/
         (Positive fin. position)          170.8           179.8
                                    ============    ============

This company also saw its debt situation consolidate, having not
had to seek new financing.  Here an increase in available
liquidity should be noted resulting from the receipt of credits
from suppliers that had been frozen for some time (approximately
EUR5.0 million).

                             Lactis SpA
                   (Values in millions of Euros)

                                          Situation as at
                                     06/30/2004      12/31/2003
                                    ------------    ------------
      Short Term Financial Assets           (3.7)           (0.4)
         of which:
         Interco. Financial Credits          0.0             0.0
         Liquid Financial Assets             0.0             0.0
         Available liquidity                (3.7)           (0.4)

      Accruals on Financial Assets
         (incl. Interco.)                    0.1             0.0
                                    ------------    ------------
      Total Short Term
         Financial Assets                   (3.8)           (0.4)

      Financial Debt
         (incl. Intercompany Debt)          20.5            20.5
         of which:
         Intercompany Financial Debt         8.6             8.6
         Other Financial Debt               11.9            11.9

      Accruals on Financial
         Liabilities
         (incl. Interco.)                    0.0             0.1
                                    ------------    ------------
      Total Financial Liabilities           20.5            20.6
                                    ------------    ------------
      Financial Indebtedness/
         (Positive fin. position)           16.7            20.2
                                    ============    ============

Available liquidity increased from EUR0.4 million to EUR3.7
million, while financial liabilities remained substantially
unchanged compared to December 31, 2003.

                Significant Events in June and July

[Parmalat] summarizes the principal events that occurred during
the course of June and July [to date]:

       4 June       Meeting with creditors to present the key
                    aspects of the Group's Industrial and
                    Financial Restructuring Plan.

       7 June       The filing of requests for insolvency with the
                    Court of Parma by the Group's German-based
                    companies, Deutsche Parmalat Gmbh and Parmalat
                    Molkerei Gmbh, controlled by Parmalat SpA in
                    Extraordinary Administration.  The companies,
                    by decree of the Ministry of Production
                    Activities, were admitted on June 3, 2004 to
                    the Extraordinary Administration procedure and
                    Dott. Enrico Bondi was appointed Extraordinary
                    Commissioner for the companies.

      21 June       Filing with the Minister of Production
                    Activities Onorevole Antonio Marzano of the
                    Restructuring Plan for the Parmalat Group
                    companies subject to the Proposed Composition
                    with Creditors.

      22 June       Publication of the draft text of the new
                    Parmalat's corporate governance.

      12 July       Completion of the refinancing of the Group's
                    Canadian subsidiaries.

      14 July       Communication of the recovery ratios featured
                    in the Proposed Composition with Creditors and
                    publication of sections of the Group's
                    Restructuring Plan in a non-final version.

      19 July       Publication of the financial and economic
                    situation of Parmalat SpA in Extraordinary
                    Administration, Parmalat Finanziaria SpA in
                    Extraordinary Administration and a
                    consolidated statement for the Parmalat Group.
                    In relation to the latter a short report was
                    published covering the Group's business
                    performance along with the Auditor's Report.

      19 July       Divestment of the assets of Parmalat de Mexico
                    SA de CV and signing of contracts covering
                    brand licensing.


PG&E NATIONAL: ET Gas April 2004 Monthly Operating Report
---------------------------------------------------------

               NEGT Energy Trading-Gas Corporation
                     Unaudited Balance Sheet
                       As of April 30, 2004

                              ASSETS

Current Assets
    Cash                                             $10,464,421
    Accounts Receivable                               58,759,751
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       74,575,017
       Prepayments                                    12,588,888
       Other Current Assets                            3,113,514
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                   21,635,393
    Less Accumulated Depreciation                    (20,430,403)
                                                  --------------
Total Fixed Assets                                    $1,204,990

Other Assets (Identify)

    Accrued taxes                                   Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other:
       Accrued Legal fees                                      0
       Accrued Payroll and Benefits                       29,384
                                                  --------------
Total Postpetition Liabilities                           $29,634

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments                          -
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


               NEGT Energy Trading-Gas Corporation
                    Unaudited Income Statement
             For the Period April 1 to April 30, 2004

Total Sales/Income                                     ($279,245)

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)
       Purchase of Commodities                           (12,032)
                                                  --------------
Total Cost of Sales                                      (12,032)
                                                  --------------
Gross Profit                                            (267,213)

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Bank Charges                                             453
    Communications                                           275
    Computer Supplies                                          0
    Credit & Commitment Fees                                   0
    Datafeeds                                              1,688
    Fixed Assets Depreciation                            204,277
    Indirect Allocations                                  (8,628)
    Insurance                                                  0
    Legal Fees                                           375,000
    Recruiting & Relocation                               (5,911)
    Realized(Gain)/Loss on Foreign Exchange                5,139
    Rent                                                   2,662
    Unrealized(Gain)/Loss on Foreign Exchange                  0
    Office Supplies                                           65
    Other                                                  2,444
    Payroll and benefits                                 207,965
    Professional Fees                                      6,893
    Software Costs                                         8,100
    Subscriptions                                           (111)
    Taxes Other than Income                                   57
    Training                                                 (68)
                                                  --------------
Total Operating Expenses                                 800,300
                                                  --------------
Profit/Loss from Operation                            (1,067,513)

Other Income (Expenses):
    Interest Income                                      183,240
    Interest Expense                                           0
    Equity in Subsidiaries                                     0
    Other Income(Expenses)                                     0
                                                  --------------
Total Other Income (Expenses)                            183,240
                                                  --------------
Income Before Taxes                                    ($884,273)
Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


               NEGT Energy Trading-Gas Corporation
                    Cash Reconciliation Report
             For the Period April 1 to April 30, 2004

Cash balance from prior balance sheet                $10,460,673
Pre-tax Net income for month                            (884,273)

Income/Expenses Not Requiring Cash:
    Depreciation                                         204,277
    Unrealized (Gain) Loss on Foreign Exchange                 0
    Relief of Allowance for Doubtful Accts                     0
                                                  --------------
Total Expenses Not Requiring Cash                        204,277
                                                  --------------
Total Cash from Operations                             9,780,678

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                 (12,032)
       Accounts Receivable Affiliate                      (8,867)
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                           40,427
       Deposits                                       15,333,751
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliate                (15,086,919)
       Accounts Payable Affiliate                        296,729
       Accrued Liabilities                               120,654
       Current Deferred Liabilities                            0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Tax Liability                                           0
                                                  --------------
Total Other Sources & Uses of Cash                       683,743
                                                  --------------
Ending Cash Balance                                  $10,464,421
                                                  ==============


PG&E NATIONAL: ET Holdings April 2004 Monthly Operating Report
--------------------------------------------------------------

             NEGT Energy Trading Holdings Corporation
                     Unaudited Balance Sheet
                       As of April 30, 2004

                              ASSETS

Current Assets
    Cash                                            $277,711,953
    Accounts Receivable                                  222,207
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Accrued taxes                                Undetermined
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                            0
    Less Accumulated Depreciation                              0
    Other Fixed Assets                                         0
                                                  --------------
Total Fixed Assets                                           $0

Other Assets (Identify)
    Investments in Subsidiaries                     Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other:
       Accrued Quarterly Fees                              8,000
       Accrued Legal Fees                              1,683,425
       Accrued Payroll and Benefits                      103,042
                                                  --------------
Total Postpetition Liabilities                        $1,794,467

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments               Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


             NEGT Energy Trading Holdings Corporation
                    Unaudited Income Statement
             For the Period April 1 to April 30, 2004

Total Sales/Income                                            $0

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other                                                      0
                                                  --------------
Total Cost of Sales                                            0
                                                  --------------
Gross Profit                                                   0

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Communications                                          (699)
    Computer Supplies                                          0
    Credit/Commitment Fees                                     0
    Datafeeds                                              6,312
    Indirect Allocations                                (394,319)
    Insurance                                                  0
    Legal Fees                                           375,000
    Misc. Tax Payments                                       274
    Office Supplies                                         (822)
    Other                                                  2,972
    Other Business Expenses                                 (238)
    Payroll and benefits                                 (14,159)
    Postage & Delivery                                         0
    Professional Fees                                      8,425
    Recruiting & Relocation                                    0
    Rent                                                   3,253
    Software Costs                                        14,050
    Subscriptions                                           (136)
    Training                                                 (82)
    Travel                                                     0
    US Trustees                                            8,000
                                                  --------------
Total Operating Expenses                                   7,832
                                                  --------------
Profit/Loss from Operation                                (7,832)

Other Income (Expenses):
    Interest Income                                      222,717
    Interest Expense                                    (199,046)
    Equity in Subsidiary:
       Investment in ET Power                             22,788
       Investment in ET Investment                       674,108
       Investment in ET Gas Corp.                       (534,544)
       Investment in NEGT International                   11,483
                                                  --------------
Total Other Income (Expenses)                            197,505
                                                  --------------
Income Before Taxes                                     $189,673
Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


             NEGT Energy Trading Holdings Corporation
                    Cash Reconciliation Report
             For the Period April 1 to April 30, 2004

Cash balance from prior balance sheet               $278,965,632
Pre-tax Net income for month                             189,673

Expense Not Requiring Cash:
    Depreciation                                               0
    Investment in ET Power                               (22,788)
    Investment in ET Investment                         (674,108)
    Investment in ET Gas Corp.                           534,544
    Investment in NEGT International                     (11,483)
    Relief of Allowance of Doubtful Accounts                   0
                                                  --------------
Total Expenses Not Requiring Cash                       (173,835)
                                                  --------------
Total Cash from Operations                           278,981,470

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                   2,654
       Accounts Receivable Affiliate                   1,259,299
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                            4,151
    Increase (Decr):
       Accounts Payable - Non-Affiliate                  209,421
       Accounts Payable - Affiliate                   (1,914,680)
       Accrued Liabilities                               (29,111)
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                         801,251
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Tax Liability                                           0
       (Less) Unrecorded Bank Service Charges                  0
                                                  --------------
Total Other Sources & Uses of Cash                    (1,269,518)
                                                  --------------
Ending Cash Balance                                 $277,711,953
                                                  ==============


PG&E NATIONAL: ET Investments April 2004 Monthly Operating Report
-----------------------------------------------------------------

                 NEGT ET Investments Corporation
                     Unaudited Balance Sheet
                       As of April 30, 2004

                              ASSETS

Current Assets
    Cash                                                      $0
    Accounts Receivable                                        0
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets                                       -
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                            0
    Less Accumulated Depreciation                              0
                                                  --------------
Total Fixed Assets                                           $0

Other Assets (Identify)
    Investment in Subsidiaries                      Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other                                                      0
                                                  --------------
Total Postpetition Liabilities                             $250

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock, Owner's Investments              Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


                 NEGT ET Investments Corporation
                    Unaudited Income Statement
             For the Period April 1 to April 30, 2004

Total Sales/Income                                             -

COST OF SALES:
    Purchases of Inventory                                     -
    Purchased Services                                         -
    Other (Identify)                                           -
                                                  --------------
Total Cost of Sales                                           $0
                                                  --------------
Gross Profit                                                   0

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Officer Salaries                                           -
    Other Employee Salaries                                    -
    Taxes (Payroll)                                            -
    Employee Benefits                                          -
    Advertising                                                -
    Auto Expenses                                              -
    Entertainment                                              -
    Insurance (Real Estate)                                    -
    Insurance (Other)                                          -
    Leases (Other than Rent)                                   -
    Outside Services & Contractors                             -
    Professional Fees (Atty. Acct.)                            -
    Rent                                                       -
    Repairs & Maintenance                                      -
    Supplies                                                   -
    Taxes (Real Property)                                      -
    Taxes (Other)                                              -
    Telephone                                                  -
    Travel                                                     -
    Utilities                                                  -
    Other                                                    460
                                                  --------------
Total Operating Expenses                                     460
                                                  --------------
Profit/Loss from Operation                                  (460)

Other Income (Expenses):
    Interest Expense                                      (1,004)
    Equity in ET Power                                 1,116,612
                                                  --------------
Total Other Income (Expenses)                          1,115,608
                                                  --------------
Income Before Taxes                                   $1,115,149
Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


                 NEGT ET Investments Corporation
                    Cash Reconciliation Report
             For the Period April 1 to April 30, 2004

Cash balance from prior balance sheet                         $0
Pre-tax Net income for month                           1,115,149

Expense Not Requiring Cash:
    Depreciation                                               0
    Other:
       Investment in Subsidiaries                     (1,116,612)
       Relief of Allowance of Doubtful Accounts                0
                                                  --------------
Total Expenses Not Requiring Cash                     (1,116,612)
                                                  --------------
Total Cash from Operations                                (1,464)

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable                                     0
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
    Increase (Decr):
       Accounts Payable                                        0
       Accounts Payable - Affiliate                        1,004
       Accounts Payable - Interest Payable                     0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                               0
       Accrued Rent                                            0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Taxes Payable                                           0
       (Less) Unrecorded Bank Service Charges                  0
                                                  --------------
Total Other Sources & Uses of Cash                         1,004
                                                  --------------
Ending Cash Balance                                        ($460)
                                                  ==============


PG&E NATIONAL: ET Power April 2004 Monthly Operating Report
-----------------------------------------------------------

                  NEGT Energy Trading-Power L.P.
                     Unaudited Balance Sheet
                       As of April 30, 2004

                              ASSETS

Current Assets
    Cash                                             $27,063,577
    Accounts Receivable                              190,009,669
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       88,619,640
       Prepaids                                        1,040,370
       Other Current Assets                                    0
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       -
    Building                                                   -
    Equipment, Furniture & Fixtures                    3,503,317
    Less Accumulated Depreciation                     (2,999,874)
    Other Fixed Assets                                         -
                                                  --------------
Total Fixed Assets                                       503,443

Other Assets (Identify)                                        -
                                                  --------------
Total Other Assets                                            $0
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other                                                      -
                                                  --------------
Total Postpetition Liabilities                              $250

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/ Owner's Investments              Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                    Unaudited Income Statement
             For the Period April 1 to April 30, 2004

Total Sales/Income                                    $1,402,198

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)                                          0
       Cost of Commodities                                84,488
                                                  --------------
Total Cost of Sales                                       84,488
                                                  --------------
Gross Profit                                           1,317,710

OPERATING EXPENSES:
    Bank Fee Charges                                         162
    Bad Debt Expense                                           0
    Communications                                        55,232
    Entertainment                                              0
    Fixed Assets Depreciation                             67,508
    Indirect Allocations                                 383,773
    Legal Fees                                                 0
    Realized(Gain)/Loss on Foreign Exchange                5,265
    Unrealized(Gain)/Loss on Foreign Exchange             (4,097)
    Other                                                  4,850
    Training                                                   0
    Travel                                                     0
                                                  --------------
Total Operating Expenses                                 512,693
                                                  --------------
Profit/Loss from Operation                               805,017

Other Income (Expenses):
    Interest Income                                      334,383
    Interest Expense                                           0
    Other Income(Expenses)                                     0
                                                  --------------
Total Other Income (Expenses)                            334,383
                                                  --------------
Income Before Taxes                                   $1,139,400
Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                    Cash Reconciliation Report
             For the Period April 1 to April 30, 2004

Cash balance from prior balance sheet                $27,030,135
Pre-tax Net income for month                           1,139,400

Expense Not Requiring Cash:
    Depreciation                                          67,508
    (Gain) Loss on sale of fixed assets                        0
    Unrealized (Gain) loss on foreign exchange            (4,097)
    Relief of Allowance for Doubtful Accounts                  0
                                                  --------------
Total Expenses Not Requiring Cash                         63,411
                                                  --------------
Total Cash from Operations                            28,232,946

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate               2,519,606
       Accounts Receivable Affiliate                    (270,822)
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                           12,686
       Deposits                                        1,000,000
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliates                (2,287,976)
       Accounts Payable Affiliates                    (1,567,994)
       Current Deferred Liabilities                     (574,870)
       Accrued Liabilities                                     0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                               0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
                                                  --------------
Total Other Sources & Uses of Cash                   ($1,169,370)

Total Cash from Investing - Sale of Fixed Assets              0
                                                  --------------
Ending Cash Balance                                  $27,063,577
                                                  ==============


PG&E NATIONAL: USGen April 2004 Monthly Operating Report
--------------------------------------------------------

                     USGen New England, Inc.
                     Unaudited Balance Sheet
                       As of April 30, 2004

ASSETS

Cash and Cash Equivalents                          $209,436,744
Accounts Receivable                                 128,215,750
Support Payment Receivable - Current               Undetermined
Fuel, Inventory and Supplies                         42,957,130
Prepaid Expenses                                     32,804,482
Risk Management Asset - Current                               -
                                                  --------------
Total Current Assets                               Undetermined

Property, Plant and Equipment - net               1,469,102,854
Construction Work in Progress                        29,458,885
Intangible Asset                                     $4,935,342
Support Payment Receivable - Non-current           Undetermined
Risk Management Asset - Non-current                           -
                                                  --------------
Total Postpetition Assets                          Undetermined

Prepetition IC Accounts Receivable                 Undetermined
Prepetition Accounts Receivable                    Undetermined
Prepetition Prepaid Expenses                       Undetermined
                                                  --------------
Total Prepetition Assets                           Undetermined
                                                  --------------
TOTAL ASSETS                                       Undetermined
                                                  ==============

LIABILITIES AND EQUITY

Accounts Payable                                    $16,271,379
Accrued Liabilities                                  94,518,065
Risk Management Liability - Current                           -
                                                  --------------
Total Current Liabilities                           110,789,445

Deferred Income Taxes                                78,156,075
Risk Management Liability - Non-current                       -
Other Liabilities                                     8,475,860
                                                  --------------
Total Postpetition Liabilities                      197,421,379

Prepetition Accounts Payable                       Undetermined
Prepetition IC Accounts Payable                    Undetermined
Prepetition Market Accounts Payable                Undetermined
Current Debt                                         84,770,293
Out of Market Liabilities - Current                  30,791,371
Out of Market Liabilities - Non-current             220,285,600
                                                  --------------
Total Prepetition Liabilities                      Undetermined
                                                  --------------
Total Liabilities                                  Undetermined

Shareholder's Equity
    Common Stock, Additional Paid-In Capital      1,347,736,929
    Other Comprehensive Income                      (10,258,454)
    Retained Earnings                              (257,464,547)
                                                  --------------
Total Shareholder's Equity                       $1,080,013,928
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                  ==============


                     USGen New England, Inc.
                    Unaudited Income Statement
             For the Period April 1 to April 30, 2004

REVENUE:
    Contract Revenue                                 $42,448,177
    Market Energy                                     21,649,730
    Ancillary Products                                   905,903
    Market Capacity                                      823,500
    Power Hedges                                      (1,574,791)
    Other Revenue                                     (2,876,328)
                                                  --------------
Total Revenue                                         60,836,192

FUEL COSTS:
    Contract Expense                                  10,735,817
    Fuel Expense                                      22,439,502
    Fuel Hedges                                         (208,410)
                                                  --------------
Total Fuel Costs                                      32,966,909
                                                  --------------
Gross Profit                                          27,869,283

OPERATING EXPENSES:
    Direct Labor                                       5,659,657
    Direct Materials                                   1,694,443
    Direct Subcontractor Services                      4,047,536
    Other Operating                                    1,697,258
    Bonus Accrual, Union and non-union                   407,576
    Ash Disposal                                       1,910,558
                                                  --------------
Total Station Operating Expenses                      15,417,030

Corporate Expense:
    Corporate Labor                                      514,478
    Bonus                                                119,552
    Travel and Entertainment                              52,104
    Insurance                                            389,272
    Professional Services                              3,070,216
    Other General Administrative                         229,718
                                                  --------------
Total Corporate Expenses                               4,375,340

General Expenses:
    Property Taxes                                     3,266,040
    Interconnect Cost                                    110,995
    Amortization                                               -
    Depreciation                                       5,570,485
                                                  --------------
Total General Expenses                                 8,947,520
                                                  --------------
Total Operating Expenses                              28,739,889
                                                  --------------
Total Operating Income                                  (870,607)

Other Income (Expenses):
    Lease Expense                                       (225,000)
    Interest Income - NEES Receivable                  1,954,429
    Income - Other                                       156,418
    Expense - Other                                            -
    Gain                                                (141,784)
    Bank and LC Fees                                     (57,598)
                                                  --------------
Total Other Income (Expenses)                          1,686,466
                                                  --------------
Income Before Tax                                        815,859
Income Taxes                                             332,188
                                                  --------------
Net Income                                              $483,671
                                                  ==============


                     USGen New England, Inc.
                  Unaudited Cash Flow Statement
             For the Period April 1 to April 30, 2004

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net Income                                          $483,671

Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation                                       5,570,485
    Amortization                                         747,581
    Loss on disposal of fixed assets                     141,784

Change in assets and liabilities:
    Accounts receivable                                  778,557
    Inventory                                           (888,055)
    Prepaid, Deposits & Other                         (4,609,284)
    Deferred Income Taxes                                (25,267)
    Accounts Payable                                  (8,483,587)
    Accrued Liabilities                                7,153,731
    Liabilities - Other                               (3,236,240)
    Prepetition Assets                                   377,423
    Prepetition Liabilities                           (1,602,430)
    Equity - Other                                     2,443,610
                                                  --------------
Net cash (used in) provided by
    operating activities                              (1,148,023)

CASH FLOWS FROM INVESTING ACTIVITIES:
    Property, plant and equipment                     (3,185,112)
    Change in Investment in Subsidiary                       (93)
    Support payments received - principle              5,648,921
                                                  --------------
Net cash used in investing activities                  2,463,716

CASH FLOWS FROM FINANCING ACTIVITIES:
    Increase in Debt                                           -
    Capital Contributions                                      -
                                                  --------------
Net cash used in financing activities                          -
                                                  --------------
NET INCREASE IN CASH AND CASH EQUIVALENTS              1,315,693

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       208,121,051
                                                  --------------
CASH AND CASH EQUIVALENTS, END OF PERIOD            $209,436,744
                                                  ==============


RELIANCE GROUP: Releases June 2004 Monthly Operating Report
-----------------------------------------------------------

RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Balance Sheet,
excluding subsidiaries which
are not Debtors-in-Possession             30-Jun-2004
_____________________________________     ___________

ASSETS

Restricted Funds                                   $0
Unrestricted Funds                         58,542,000
                                          -----------
Total                                      58,542,000

Accounts and Notes Receivable              13,090,000
Prepaid expenses and deposits                 553,000
Due from Reliance Development Group,
   less allowance of $59,334,000                    0

Plant, property & equipment                         -
                                     ----------------
      Total Assets                        $72,185,000
                                     ================

LIABILITIES & SHAREHOLDERS' DEFICIT

Liabilities not subject to compromise

   Postpetition accounts payable           $2,334,000
   Professional fee holdback payable        1,853,000

Liabilities subject to compromise       1,025,318,000
                                     ----------------
      Total liabilities                 1,029,505,000
                                     ----------------

Shareholders' deficit:

   Common stock                            11,616,000
   Additional paid in capital             558,541,000
   Accumulated deficit                 (1,527,477,000)
                                     ----------------
      Total shareholders' deficit        (957,320,000)
                                     ----------------
      Total liabilities & deficit         $72,185,000
                                     ================


RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of        1-Jun-2004
Operations, excluding subsidiaries             to
which are not Debtors-in-Possession       30-Jun-2004
_____________________________________     ___________

Revenues                                           $0
                                     ----------------

Costs and expenses:
   Operating and administrative                42,000
   Pension Plan Actuarial
     Adjustments and Expenses                       0
   Depreciation                                     0
                                     ----------------
   Total costs and expenses                    42,000
                                     ----------------
Loss before reorganization items              (42,000)
                                     ----------------

Reorganization items:
   Professional fees                          672,000
   Increase in allowance on balance
      due from Reliance Development
      Group, Inc.                           1,000,000
   Reduction of balance due Reliance
      Insurance Company per settlement              -
   Interest earned on accumulated
      cash resulting from
      Chapter 11 proceeding                   (40,000)
                                     ----------------
   Total reorganization items               1,632,000
                                     ----------------
Income Tax benefits                                 0
                                     ----------------
Net Income                                ($1,674,000)
                                     ================


RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of        1-Jun-2004
Cash Flows, excluding subsidiaries             to
which are not Debtors-in-Possession       30-Jun-2004
_____________________________________     ___________

Cash flows from operating activities:

   Loss from operations before
      reorganization items                   ($42,000)

   Adjustments to reconcile loss to
      net cash provided by
      operating activities:

         Income Tax Recovery                        0
         Depreciation                               0

   Changes in:

      Prepaid expenses                              0
      Postpetition payables                   (27,000)
      Increase in Liabilities
      subject to compromise                         0
                                     ----------------
   Net cash (used) provided by
       operating activities before
       reorganization items                   (69,000)
                                     ----------------
   Operating cash flows from
      reorganization items:

         Interest earned                       40,000
         Application of retainer
         towards reorganization
         professional fees                          0
         Payment of
         reorganization items                (426,000)
         Distribution to Reliance
         Insurance Company
         (in liquidation)                           0
                                     ----------------
   Net cash used by
      reorganization items                   (386,000)
                                     ----------------
   Net cash used by
      operating activities                   (455,000)
                                     ----------------

Cash flows from investing activities:

   Receipt from Reliance
   Development Group                                0
                                     ----------------
      Net cash provided by
         investing activities                       0
                                     ----------------

Cash flow from financing activities:
   Proceeds of split dollar policies                0
                                     ----------------
      Net cash provided by
         financing activities                       0
                                     ----------------
Net increase in cash                         (455,000)

Cash at beginning of period                58,997,000
                                     ----------------
Cash at end of period                     $58,542,000
                                     ================


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
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Don't be fooled.  Assets, for example, reported at historical cost
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Each Friday's edition of the TCR includes a review about a book of
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Monthly Operating Reports are summarized in every Saturday edition
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For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                            *********

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

Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,
USA, and Beard Group, Inc., Frederick, Maryland USA.  The TCR is
published every Monday through Saturday except on New Year's Day,
Good Friday, Christmas Eve, Christmas Day and New Year's Eve.  
Yvonne L. Metzler, Bernadette C. de Roda, Rizande B. Delos Santos,
Emi Rose S.R. Parcon, Jazel P. Laureno, Aileen M. Quijano and
Peter A. Chapman, Editors.

Copyright 2004.  All rights reserved.  ISSN: 1520-9474.

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                    *** End of Transmission ***