TCR_Public/040821.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, August 21, 2004, Vol. 8, No. 177

                            Headlines


AMES DEPARTMENT: April 2004 Monthly Operating Report
AMES DEPARTMENT: May 2004 Monthly Operating Report
AMES DEPARTMENT: June 2004 Monthly Operating Report
AVALON DIGITAL: Reports $10,853 Net Loss in July 2004
DII/KBR: Reports Combined Second Quarter 2004 Financial Report

DII/KBR: DII's Net Loss Climbs to $614.8 Million in June 2004
DII/KBR: Mid-Valley's June 2004 Monthly Operating Report
DII/KBR: Kellogg Brown & Root's June 2004 Monthly Operating Report
DII/KBR: KBR Engineering's June 2004 Monthly Operating Report
DII/KBR: KBR Technical's June 2004 Monthly Operating Report

DII/KBR: KBR Int'l. Posts $4.2 Million Net Income for June 2004
DII/KBR: KBR (Panama)'s June 2004 Monthly Operating Report
DII/KBR: BPM Minerals' June 2004 Net Income Tops $983,000
FINOVA GROUP: Reports $32 Million Net Loss for 2nd Quarter 2004
FINOVA GROUP: Files Consolidated 2nd Quarter Financial Report

FINOVA CAPITAL: Reports $1.1 Million 2nd Quarter 2004 Net Income
FINOVA CAPITAL plc: 2004 Half-Year Net Income Tops $86 Million
FINOVA: Loan Administration's Second Quarter 2004 Results
FINOVA: Mezzanine Reports $9.9 Million Net Income in June 2004
FOOTSTAR INC: Reports $13.8 Million Net Loss in July 2004

FORTUNE NATURAL: Reports $71,452 Net Loss for June 2004
KEYSTONE CONSOLIDATED: July 2004 Net Income Tops $7.2 Million
KMART: Reports $155 Million Second Quarter 2004 Net Income
PEGASUS SATELLITE: Reports $470 Million Net Loss in June 2004
PG&E NATIONAL: USGen New England's May Monthly Operating Report

PG&E NATIONAL: USGen New England's June Monthly Operating Report
PILLOWTEX CORP: Releases June 2004 Monthly Operating Report
RCN CORP: Files Amended First Quarter 2004 Financial Results
RCN CORP: Reports $4.4 Million Net Loss in June 2004
ROUGE INDUSTRIES: Files June 2004 Monthly Operating Report

TWINLAB CORPORATION: Files July 2004 Monthly Operating Report
WORLD ACCESS: Releases June 2004 Monthly Operating Reports

                            *********

AMES DEPARTMENT: April 2004 Monthly Operating Report
----------------------------------------------------

           Ames Department Stores, Inc., and Subsidiaries
           Unaudited Consolidated Condensed Balance Sheets
                           At May 1, 2004
                           (In Thousands)

ASSETS
Current Assets:
    Cash and cash equivalents                             $3,718
    Restricted cash                                       59,781
    Receivables                                            1,718
                                                      ----------
Total current assets                                      65,217
                                                      ----------
Fixed Assets                                                   -
                                                      ----------
Total assets                                             $65,217
                                                      ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
    Accounts payable:
       Trade                                             $64,209
       Other                                              14,973
                                                      ----------
    Total accounts payable                                79,182

Self-insurance reserves                                   23,722
Accrued expenses                                          26,977
Liabilities subject to compromise                        854,379
                                                      ----------
Total liabilities                                        984,260

Stockholders' equity (deficit)
    Common stock                                             295
    Additional paid-in capital                           533,393
    Accumulated deficit                               (1,451,809)
    Treasury stock                                          (922)
                                                      ----------
Total stockholders' deficit                             (919,043)
                                                      ----------
Total liabilities and stockholders' deficit              $65,217
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Operations
                  For Four Weeks Ended May 1, 2004
                           (In Thousands)

Total revenue                                               $323

Costs and expenses
    Wind down expenses and other costs                       572
    Gain on sale of fixed assets                            (750)
    Lease rejection costs
    Professional fees                                        250
                                                      ----------
Income before income taxes                                   251
                                                      ----------
Net Income                                                  $251
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Cash Flows
                  For Four Weeks Ended May 1, 2004
                           (In Thousands)

Cash flows from operating activities:
    Net gain                                                $251

    Expenses not requiring the outlay of cash:
       Gain on sale of fixed assets                         (750)
                                                      ----------
Cash used by operations                                     (499)

Changes in working capital:
    Increase in receivables                                 (312)
    Decrease in accounts payable                            (920)
    Decrease in accrued expenses & other liabilities      (1,073)
    Increase in restricted cash                              205
                                                      ----------
Net cash provided by operating activities                 (2,599)

Cash flows from financing activities:
    Proceeds from the sale of fixed assets                   750
    Borrowings under DIP Credit Agreement                      -
    Change in liabilities subject to compromise              342
                                                      ----------
Net cash provided by financing activities                  1,092

Decrease in cash and cash equivalents                     (1,507)
Cash and cash equivalents, beginning of period             5,225
                                                      ----------
Cash and cash equivalents, end of period                  $3,718
                                                      ==========


AMES DEPARTMENT: May 2004 Monthly Operating Report
--------------------------------------------------

           Ames Department Stores, Inc., and Subsidiaries
           Unaudited Consolidated Condensed Balance Sheets
                          At May 29, 2004
                           (In Thousands)

ASSETS
Current Assets:
    Cash and cash equivalents                             $2,439
    Restricted cash                                       59,157
    Receivables                                            1,873
                                                      ----------
Total current assets                                      63,469
                                                      ----------
Fixed assets                                                   -
                                                      ----------
Total assets                                             $63,469
                                                      ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
    Accounts payable:
       Trade                                             $63,906
       Other                                              14,951
                                                      ----------
    Total accounts payable                                78,857

Self-insurance reserves                                   23,226
Accrued expenses                                          26,032
Liabilities subject to compromise                        852,370
                                                      ----------
Total liabilities                                        980,485

Stockholders' equity (deficit)
    Common stock                                             295
    Additional paid-in capital                           533,393
    Accumulated deficit                               (1,449,782)
    Treasury stock                                          (922)
                                                      ----------
Total stockholders' deficit                             (917,016)
                                                      ----------
Total liabilities and stockholders' deficit              $63,469
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Operations
                  For Four Weeks Ended May 29, 2004
                           (In Thousands)

Total revenue                                             $2,796

Costs and expenses
    Wind down expenses and other costs                       569
    Gain on sale of fixed assets
    Lease rejection costs
    Professional fees                                        200
                                                      ----------
Income before income taxes                                 2,027
                                                      ----------
Net Income                                                $2,027
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Cash Flows
                  For Four Weeks Ended May 29, 2004
                           (In Thousands)

Cash flows from operating activities:
    Net loss                                              $2,027

    Expenses not requiring the outlay of cash:
       Gain on sale of fixed assets                            0
                                                      ----------
Cash used by operations                                    2,027

Changes in working capital:
    Increase in receivables                                 (155)
    Decrease in accounts payable                            (325)
    Decrease in accrued expenses & other liabilities      (1,441)
    Increase in restricted cash                              624
                                                      ----------
Net cash provided by operating activities                    730

Cash flows from financing activities:
    Proceeds from the sale of fixed assets                     -
    Borrowings under DIP Credit Agreement                      -
    Change in liabilities subject to compromise           (2,009)
                                                      ----------
Net cash provided by financing activities                 (2,009)

Decrease in cash and cash equivalents                     (1,279)
Cash and cash equivalents, beginning of period             3,718
                                                      ----------
Cash and cash equivalents, end of period                  $2,439
                                                      ==========


AMES DEPARTMENT: June 2004 Monthly Operating Report
---------------------------------------------------

           Ames Department Stores, Inc., and Subsidiaries
           Unaudited Consolidated Condensed Balance Sheets
                          At July 3, 2004
                           (In Thousands)

ASSETS
Current Assets:
    Cash and cash equivalents                             $2,281
    Restricted cash                                       59,158
    Receivables                                            1,304
                                                      ----------
Total current assets                                      62,743
                                                      ----------
Fixed assets                                                   -
                                                      ----------
Total assets                                             $62,743
                                                      ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
    Accounts payable:
       Trade                                             $63,282
       Other                                              14,306
                                                      ----------
    Total accounts payable                                77,588

Self-insurance reserves                                   22,499
Accrued expenses                                          26,130
Liabilities subject to compromise                        851,252
                                                      ----------
Total liabilities                                        977,469

Stockholders' equity (deficit)
    Common stock                                             295
    Additional paid-in capital                           533,393
    Accumulated deficit                               (1,447,492)
    Treasury stock                                          (922)
                                                      ----------
Total stockholders' deficit                             (914,726)
                                                      ----------
Total liabilities and stockholders' deficit              $62,743
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Operations
                  For Five Weeks Ended July 3, 2004
                           (In Thousands)

Total revenue                                             $3,280

Costs and expenses
    Wind down expenses and other costs                       815
    Gain on sale of fixed assets                               -
    Lease rejection costs                                      -
    Professional fees                                        175
                                                      ----------
Income before income taxes                                 2,290
                                                      ----------
Net Income                                                $2,290
                                                      ==========


           Ames Department Stores, Inc., and Subsidiaries
     Unaudited Consolidated Condensed Statements of Cash Flows
                  For Five Weeks Ended July 3, 2004
                           (In Thousands)

Cash flows from operating activities:
    Net income                                            $2,290

    Expenses not requiring the outlay of cash:
       Gain on sale of fixed assets                            -
                                                      ----------
Cash used by operations                                    2,290

Changes in working capital:
    Decrease in receivables                                  569
    Decrease in accounts payable                          (1,269)
    Decrease in accrued expenses & other liabilities           -
    Increase in restricted cash                               (1)
                                                      ----------
Net cash provided by operating activities                    960

Cash flows from financing activities:
    Proceeds from the sale of fixed assets                     -
    Borrowings under DIP Credit Agreement                      -
    Change in liabilities subject to compromise           (1,118)
                                                      ----------
Net cash provided by financing activities                 (1,118)
  
Decrease in cash and cash equivalents                       (158)
Cash and cash equivalents, beginning of period             2,439
                                                      ----------
Cash and cash equivalents, end of period                  $2,281
                                                      ==========


AVALON DIGITAL: Reports $10,853 Net Loss in July 2004
-----------------------------------------------------
Avalon Digital Marketing Systems, Inc., a Delaware corporation,
filed its monthly operating report for the period from July 1,
2004 to July 31, 2004.

For July 2004, Avalon Digital reported a $10,853 net loss in
$147,559 of gross profit.

At July 31, 2004, Avalon Digital's balance sheet showed:

      Current Assets            $   127,096
      Total Assets                  399,650
      Post-petition Liabilities     657,318
      Pre-petition Liabilities    9,397,119
      Total Owners' Equity      $(9,654,787)

On September 5, 2003, Avalon Digital Marketing Systems, Inc., a  
Delaware corporation filed a voluntary petition for reorganization  
under Chapter 11 of the United States Bankruptcy Code in the U.S.  
Bankruptcy Court in Salt Lake City, Utah. The case has been  
assigned to Judge Glen E. Clark and the case is being administered  
under Case Number 03-35180.

A full-text copy of Avalon Digital Marketing Systems, Inc.'s July
2004 Monthly Operating Report is available at no charge at:

http://www.sec.gov/Archives/edgar/data/1095792/000009631304000195/avalondigitalexh991704.txt


DII/KBR: Reports Combined Second Quarter 2004 Financial Report
--------------------------------------------------------------

                       Debtors-in-Possession
            Unaudited Condensed Combined Balance Sheets
                        As of June 30, 2004
                       (dollars in millions)

Assets
Current assets:
Cash and equivalents                                        $152
Receivables:
    Trade, net                                               146
    Unbilled insurance for asbestos &
       silica-related liabilities                            889
    Intercompany, net                                          -
    Unbilled work on uncompleted contracts                   141
    Other, net                                                89
                                                     -----------
Total receivables, net                                     1,265
Inventories                                                   23
Right to Halliburton shares                                1,547
Restricted cash - prepetition liability payments             149
Other current assets                                         177
                                                     -----------
Total current assets                                       3,313
Property, plant, and equipment, net                           92
Goodwill, net                                                188
Investments in majority-owned subsidiaries                 1,530
Insurance for asbestos & silica-related liabilities          468
Non-current deferred income taxes                            558
Other assets                                                 106
                                                     -----------
Total assets                                              $6,255
                                                     ===========

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable:
    Trade                                                   $127
    Intercompany, net                                        254
Accrued employee compensation and benefits                    18
Advance billings on uncompleted contracts                     77
Prepetition liabilities not subject to compromise            520
Current prepetition asbestos &
    silica-related liabilities subject to compromise       2,399
Other current liabilities                                      -
                                                     -----------
Total current liabilities                                  3,395
Prepetition liabilities not subject to compromise            126
Non-current prepetition asbestos &
    silica-related liabilities subject to compromise       1,754
Other liabilities                                             20
                                                     -----------
Total liabilities                                          5,295
                                                     -----------
Shareholders' equity                                         960
                                                     -----------
Total liabilities and shareholders' equity                $6,255
                                                     ===========


                       Debtors-in-Possession
        Unaudited Condensed Combined Statement of Operations
                 Three Months Ended June 30, 2004
                        (dollars in millions)

Revenues                                                    $473
Equity in earnings (losses) of
    majority-owned subsidiaries                               (1)
                                                     -----------
Total revenues                                               472
Operating costs and expenses                                 679
                                                     -----------
Operating loss                                              (207)
Non-operating income                                          11
                                                     -----------
Loss from continuing operations
    before income taxes                                     (196)
Income tax benefit                                            76
                                                     -----------
Loss from continuing operations                             (120)
Loss from discontinued operations,
    net of tax benefit of $87 and $146                      (609)
                                                     -----------
Net loss                                                   ($729)
                                                     ===========


                       Debtors-in-Possession
        Unaudited Condensed Combined Statement of Cash Flows
                   Six Months Ended June 30, 2004
                        (dollars in millions)

Total cash flows from operating activities                 ($165)
                                                     -----------
Total cash flows from investing activities                    (6)
                                                     -----------
Total cash flows from activities with Halliburton            212
                                                     -----------
Effect of exchange rate changes on cash                        3
Increase in cash and equivalents                              44
Cash and equivalents at beginning of period                  108
                                                     -----------
Cash and equivalents at end of period                       $152
                                                     ===========

A full-text copy of the Debtors' Second Quarter 2004 Report is
available at:

   http://www.sec.gov/Archives/edgar/data/45012/000004501204000228/edjune10q2004_final.htm


DII/KBR: DII's Net Loss Climbs to $614.8 Million in June 2004
-------------------------------------------------------------

                         DII Industries, LLC
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                    $91,703
Escrow - prepetition payments                           149,349
Investment account with Parent                           78,000
Trade receivables                                             -
Unbilled work on incomplete contracts                         -
Other receivables                                            12
Inventories                                                   -
Right to Halliburton Shares                           1,811,061
Insurance for asbestos & silica-related PI claims       889,072
Other current assets                                    312,890
                                                      ----------
Total current assets                                  3,332,087

Net property, plant and equipment                             -
Investments in consolidated subsidiaries              2,035,844
Equity in related companies                                   -
Intercompany with related companies                    (794,093)
Goodwill, net                                                 -
Non-current deferred income taxes                       349,000
Insurance for asbestos & silica-related PI claims       468,449
Other assets                                                 11
                                                      ----------
Total assets                                         $5,391,298
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
DIP Financing                                                 -
Current maturities of long-term debt                          -
Accounts payable                                         $6,869
Accrued employee compensation and benefits                    2
Accrued interest payable                                  7,558
Advanced billings on uncompleted contracts                    -
Asbestos and silica-related PI claims                 2,402,028
Other current liabilities                                11,000
                                                      ----------
Total current liabilities                             2,427,457

Long-term debt                                                -
Employee compensation and benefits                            -
Asbestos and silica-related PI claims                 1,817,711
Minority interest in consolidated subsidiaries                -
Other liabilities                                         5,235
                                                      ----------
Total liabilities                                     4,250,403

Total shareholder's equity                            1,140,895
                                                      ----------
Total liabilities and shareholder's equity           $5,391,298
                                                      ==========


                         DII Industries, LLC
                     Unaudited Income Statement
                      Month ended June 30, 2004
                           (in thousands)

Revenues                                                      -
Operating costs and expenses                               $732
                                                      ----------
Operating income/(loss)                                    (732)

Interest expense                                              -
Interest income                                           5,142
Foreign currency gains (losses)                               8
Other non-operating income - net                              -
Equity in earnings/(loss) of subsidiaries              (105,570)
                                                      ----------
Income/(loss) before taxes & minority interest         (101,152)
Income tax benefit/(provision)                           (1,600)
                                                      ----------
Income/(loss) from continuing operations               (102,752)
                                                      ----------
Income/(loss) from discontinued operations             (512,131)
                                                      ----------
Net Income/(loss)                                     ($614,883)
                                                      ==========


DII/KBR: Mid-Valley's June 2004 Monthly Operating Report
--------------------------------------------------------

                          Mid-Valley, Inc.
                       Unaudited Balance Sheet
                        As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                          -
Escrow - prepetition payments                                 -
Trade receivables                                             -
Unbilled work on uncompleted contracts                        -
Other receivables                                             -
Inventories                                                   -
Other current assets                                          -
                                                      ----------
Total current assets                                          -

Net property, plant and equipment                             -
Investments in consolidated subsidiaries                      -
Equity in related companies                                   -
Intercompany with related companies                           -
Intercompany with Parent                                $40,970
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                  -
                                                      ----------
Total assets                                            $40,970
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                             $4
Accrued employee compensation and benefits                   23
Accrued interest payable                                      -
Advanced billings on uncompleted contracts                  532
Asbestos and silica-related PI claims                         -
Other current liabilities                                 2,083
                                                      ----------
Total current liabilities                                 2,642

Long-term debt                                                -
Employee compensation and benefits                            -
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                             -
                                                      ----------
Total liabilities                                         2,642

Total shareholder's equity                               38,328
                                                      ----------
Total liabilities and shareholder's equity              $40,970
                                                      ==========

Mid-Valley, Inc., reports no income for June 2004.


DII/KBR: Kellogg Brown & Root's June 2004 Monthly Operating Report
------------------------------------------------------------------

                      Kellogg Brown & Root, Inc.
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                   ($13,343)
Escrow - prepetition payments                                 -
Trade receivables                                       112,271
Unbilled work on uncompleted contracts                  120,579
Other receivables                                        68,955
Inventories                                              16,780
Other current assets                                     24,641
                                                      ----------
Total current assets                                    329,883

Net property, plant and equipment                        56,730
Investments in consolidated subsidiaries                248,679
Equity in related companies                              15,035
Intercompany with related companies                     175,955
Intercompany with Parent                                384,892
Goodwill, net                                           171,213
Non-current deferred income taxes                       209,000
Insurance for asbestos & silica-related PI claims             -
Right to Halliburton shares                                   -
Other assets                                             87,330
                                                      ----------
Total assets                                         $1,678,717
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                        $98,007
Accrued employee compensation and benefits               61,490
Accrued interest payable                                      -
Advanced billings on uncompleted contracts              231,899
Asbestos and silica-related PI claims                    74,337
Other current liabilities                               415,299
                                                      ----------
Total current liabilities                               881,032
Long-term debt                                                -
Employee compensation and benefits                       49,934
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                        84,405
                                                      ----------
Total liabilities                                     1,015,371

Total shareholder's equity                              663,346
                                                      ----------
Total liabilities and shareholder's equity           $1,678,717
                                                      ==========


                     Kellogg Brown & Root, Inc.
                     Unaudited Income Statement
                     Month ended June 30, 2004
                           (in thousands)

Revenues                                               $120,961
Operating costs and expenses                            372,120
                                                      ----------
Operating income                                       (251,159)

Interest expense                                         (2,985)
Interest income                                             194
Foreign currency gains (losses)                            (403)
Other non-operating income - net                              -
                                                      ----------
Income before taxes and minority interest              (254,353)
Income tax benefit/(provision)                           93,777
                                                      ----------
Income from continuing operations                      (160,576)
                                                      ----------
Net Income                                            ($160,576)
                                                      ==========


DII/KBR: KBR Engineering's June 2004 Monthly Operating Report
-------------------------------------------------------------

                        KBR Engineering Corp.
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                          -
Escrow - prepetition payments                                 -
Trade receivables                                             -
Unbilled work on uncompleted contracts                        -
Other receivables                                             -
Inventories                                                   -
Other current assets                                          -
                                                      ----------
Total current assets                                          -

Net property, plant and equipment                             -
Investments in consolidated subsidiaries                      -
Equity in related companies                                   -
Intercompany with related companies                         $77
Intercompany with Parent                                      -
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                  -
                                                      ----------
Total assets                                                $77
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                              -
Accrued employee compensation and benefits                    -
Accrued interest payable                                      -
Advanced billings on uncompleted contracts                    -
Asbestos and silica-related PI claims                         -
Other current liabilities                                     -
                                                      ----------
Total current liabilities                                     -
Long-term debt                                                -
Employee compensation and benefits                            -
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                             -
                                                      ----------
Total liabilities                                             -

Total shareholder's equity                                  $77
                                                      ----------
Total liabilities and shareholder's equity                  $77
                                                      ==========

KBR Engineering Corp. reports no income for June 2004.


DII/KBR: KBR Technical's June 2004 Monthly Operating Report
-----------------------------------------------------------

                     KBR Technical Services, Inc.
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                       $302
Escrow - prepetition payments                                 -
Trade receivables                                             -
Unbilled work on uncompleted contracts                        -
Other receivables                                           505
Inventories                                                   -
Other current assets                                        876
                                                      ----------
Total current assets                                      1,683

Net property, plant and equipment                        26,338
Investments in consolidated subsidiaries                  1,555
Equity in related companies                                   -
Intercompany with related companies                       9,549
Intercompany with Parent                                      -
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                  -
                                                      ----------
Total assets                                            $39,125
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                           $377
Accrued employee compensation and benefits               20,417
Accrued interest payable                                      -
Advanced billings on uncompleted contracts                    -
Asbestos and silica-related PI claims                         -
Other current liabilities                                   366
                                                      ----------
Total current liabilities                                21,160

Long-term debt                                                -
Employee compensation and benefits                        3,710
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                             -
                                                      ----------
Total liabilities                                        24,870

Total shareholder's equity                               14,255
                                                      ----------
Total liabilities and shareholder's equity              $39,125
                                                      ==========


                    KBR Technical Services, Inc.
                     Unaudited Income Statement
                     Month ended June 30, 2004
                           (in thousands)

Revenues                                                      -
Operating costs and expenses                               $743
                                                      ----------
Operating income/(loss)                                    (743)

Interest expense                                           (141)
Interest income                                               -
Foreign currency gains (losses)                               2
Other non-operating income - net                              -
                                                      ----------
Income/(loss) before taxes & minority interest             (882)
Income tax benefit                                            -
                                                      ----------
Net Income/(loss)                                         ($882)
                                                      ==========


DII/KBR: KBR Int'l. Posts $4.2 Million Net Income for June 2004
---------------------------------------------------------------

                       KBR International, Inc.
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                    $40,420
Escrow - prepetition payments                                 -
Trade receivables                                        24,669
Unbilled work on uncompleted contracts                   17,704
Other receivables                                        18,930
Inventories                                                   -
Other current assets                                      1,807
                                                      ----------
Total current assets                                    103,530

Net property, plant and equipment                           359
Investments in consolidated subsidiaries                 28,146
Equity in related companies                               2,078
Intercompany with related companies                           -
Intercompany with Parent                                (43,218)
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                489
                                                      ----------
Total assets                                            $91,384
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                        $18,296
Accrued employee compensation and benefits                  359
Accrued interest payable                                      2
Advanced billings on uncompleted contracts               15,494
Asbestos and silica-related PI claims                         -
Other current liabilities                                11,322
                                                      ----------
Total current liabilities                                45,473

Long-term debt                                                -
Employee compensation and benefits                          564
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                           135
                                                      ----------
Total liabilities                                        46,172

Total shareholder's equity                               45,212
                                                      ----------
Total liabilities and shareholder's equity              $91,384
                                                      ==========


                       KBR International, Inc.
                     Unaudited Income Statement
                      Month ended June 30, 2004
                           (in thousands)

Revenues                                                  ($793)
Operating costs and expenses                             (1,972)
                                                      ----------
Operating income/(loss)                                   1,179

Interest expense                                              -
Interest income                                           3,519
Foreign currency gains (losses)                              37
Other non-operating income - net                              -
                                                      ----------
Income/(loss) before taxes & minority interest            4,735
Income tax benefit/(provision)                             (510)
                                                      ----------
Net Income/(loss)                                        $4,225
                                                      ==========


DII/KBR: KBR (Panama)'s June 2004 Monthly Operating Report
----------------------------------------------------------

                   KBR International, Inc. (Panama)
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                    $32,856
Escrow - prepetition payments                                 -
Trade receivables                                         2,777
Unbilled work on uncompleted contracts                    2,634
Other receivables                                           440
Inventories                                                   -
Other current assets                                        418
                                                      ----------
Total current assets                                     39,125

Net property, plant and equipment                            27
Investments in consolidated subsidiaries                 23,865
Equity in related companies                                   -
Intercompany with related companies                           -
Intercompany with Parent                                (28,444)
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                 16
                                                      ----------
Total assets                                            $34,589
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                   $462
Current maturities of long-term debt                          -
Accounts payable                                          2,729
Accrued employee compensation and benefits                3,335
Accrued interest payable                                      -
Advanced billings on uncompleted contracts                   86
Asbestos and silica-related PI claims                         -
Other current liabilities                                 1,327
                                                      ----------
Total current liabilities                                 7,939

Long-term debt                                                -
Employee compensation and benefits                          643
Asbestos and silica-related PI claims                         -
Minority interest in consolidated subsidiaries                -
Other liabilities                                             -
                                                      ----------
Total liabilities                                         8,582

Total shareholder's equity                               26,007
                                                      ----------
Total liabilities and shareholder's equity              $34,589
                                                      ==========


                   KBR International, Inc. (Panama)
                      Unaudited Income Statement
                      Month ended June 30, 2004
                           (in thousands)

Revenues                                                 $2,529
Operating costs and expenses                              1,491
                                                      ----------
Operating income/(loss)                                   1,038

Interest expense                                            (22)
Interest income                                              25
Foreign currency gains (losses)                             (67)
Other non-operating income - net                              -
                                                      ----------
Income/(loss) before taxes & minority interest              974
Provision for income tax                                      -
                                                      ----------
Net Income/(loss)                                          $974
                                                      ==========


DII/KBR: BPM Minerals' June 2004 Net Income Tops $983,000
---------------------------------------------------------

                          BPM Minerals, LLC
                       Unaudited Balance Sheet
                         As of June 30, 2004
                           (in thousands)

Assets
Current Assets:
Cash and equivalents                                      ($175)
Escrow - prepetition payments                                 -
Trade receivables                                         6,771
Unbilled work on uncompleted contracts                        -
Other receivables                                           266
Inventories                                               5,893
Other current assets                                          -
                                                      ----------
Total current assets                                     12,755

Net property, plant and equipment                         8,893
Investments in consolidated subsidiaries                      -
Equity in related companies                                   -
Intercompany with related companies                      45,621
Intercompany with Parent                                      -
Goodwill, net                                                 -
Non-current deferred income taxes                             -
Insurance for asbestos and silica-related PI claims           -
Right to Halliburton shares                                   -
Other assets                                                  -
                                                      ----------
Total assets                                            $67,270
                                                      ==========

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable                                      -
Current maturities of long-term debt                          -
Accounts payable                                           $693
Accrued employee compensation and benefits                    -
Accrued interest payable                                      -
Advanced billings on uncompleted contracts                    -
Asbestos and silica-related PI claims                         -
Other current liabilities                                    78
                                                      ----------
Total current liabilities                                   771

Long-term debt                                                -
Employee compensation and benefits                          611
Asbestos and silica-related PI claims                    42,000
Minority interest in consolidated subsidiaries                -
Other liabilities                                             -
                                                      ----------
Total liabilities                                        43,381

Total shareholder's equity                               23,889
                                                      ----------
Total liabilities and shareholder's equity              $67,270
                                                      ==========


                          BPM Minerals, LLC
                     Unaudited Income Statement
                      Month ended June 30, 2004
                           (in thousands)

Revenues                                                 $5,081
Operating costs and expenses                              4,099
                                                      ----------
Operating income                                            983

Interest expense                                              -
Interest income                                               -
Foreign currency gains (losses)                               -
Other non-operating income - net                              -
                                                      ----------
Income before taxes and minority interest                   983
Provision for income tax                                      -
                                                      ----------
Net Income                                                 $983
                                                      ==========


FINOVA GROUP: Reports $32 Million Net Loss for 2nd Quarter 2004
---------------------------------------------------------------

                       The FINOVA Group, Inc.
                 Unaudited Condensed Balance Sheet
                        As of June 30, 2004
                          (In Thousands)

                               Assets

Current Assets:
    Cash and cash equivalents                                 $0

Financing Assets:
    Loans and other financing contracts, net                   -
    Direct Financing leases                                    -
    Leverage leases                                            -
                                                       ---------
Total financing assets                                         -

Reserve for credit losses                                      -
                                                       ---------
Net Financing assets                                           -

Other Financial Assets:
    Operating leases                                           -
    Assets held for sale                                       -
    Assets held for the production income                      -
    Investments                                           22,991
    Net assets of discontinued operations                      -
                                                       ---------
Total other financial assets                              22,991
                                                       ---------
Total Financial Assets                                    22,991

Other assets                                              11,307
Due from subsidiaries                                    311,521
Investment in subsidiaries                              (793,242)
Intercompany note                                      2,730,449
                                                       ---------
Total Assets                                          $2,283,026
                                                       =========

                 Liabilities and Stockholders' Equity

Liabilities:
    Berkadia loan                                              -
    Intercompany note                                          -
    Senior Notes, net - Reorganized Company           $2,123,749
    Senior debt - Predecessor Company                          -
                                                       ---------
Total debt                                             2,123,749

Accounts payable and accrued expenses                     26,960
Deferred income taxes, net                                     -
                                                       ---------
Total Liabilities                                      2,150,709

Stockholders' Equity:
    Common Stock                                           1,259
    Additional capital                                   108,256
    Accumulated earnings                                  23,338
    Common stock in treasury                                (536)
                                                       ---------
Total Stockholders' Equity                               132,317
                                                       ---------
Total Liabilities and Stockholders' Equity            $2,283,026
                                                       =========


                       The FINOVA Group, Inc.
            Unaudited Condensed Statements of Operations
                   Six Months Ended June 30, 2004
                           (In Thousands)

Revenues:
    Interest, fees and other income                          $68
    Intercompany interest income                         108,330
    Rental income                                              -
    Operating leases income                                    -
                                                       ---------
Total Revenues                                           108,398

Interest expense                                        (132,272)
Intercompany interest expense                                  -
Operating lease and other depreciation                         -
                                                       ---------
Interest Margin                                          (23,874)

Other Revenues and (Expenses):
    Reversal of provision for credit losses                    -
    Net (loss) gain on financial assets                        -
    Operating expenses                                    (8,165)
    Gain from extinguishments of debt, net                     -
    Net reorganization expense                                 -
                                                       ---------
Total Other Revenues and (Expenses)                       (8,165)
                                                       ---------
Loss from continuing operations before income taxes      (32,039)
Income tax expense                                             -
                                                       ---------
Loss from continuing operations                          (32,039)
Discontinued operations, net of tax                            -
Net loss on disposal of operations, net of tax                 -
                                                       ---------
Net Loss                                                ($32,039)
                                                       =========


FINOVA GROUP: Files Consolidated 2nd Quarter Financial Report
-------------------------------------------------------------

                       The FINOVA Group, Inc.
           Unaudited Condensed Consolidated Balance Sheet
                        As of June 30, 2004
                           (In Thousands)
                               Assets

Current Assets:
    Cash and cash equivalents                           $642,279
    Restricted cash - impermissible restricted payments   12,500

Financing Assets:
    Loans and other financing contracts, net             646,917
    Direct Financing leases                              173,767
                                                       ---------
Total financing assets                                   820,684
Reserve for credit losses                               (173,832)
                                                       ---------
Net Financing assets                                     646,852

Other Financial Assets:
    Operating leases                                      71,852
    Assets held for sale                                 164,746
    Assets held for the production income                 42,404
    Investments                                           32,111
                                                       ---------
Total other financial assets                             311,113
                                                       ---------
Total Financial Assets                                   957,965
Other assets                                              19,754
                                                       ---------
Total Assets                                          $1,632,498
                                                       =========

                 Liabilities and Stockholders' Equity

Liabilities:
    Berkadia loan                                              -
    Senior Notes, net                                 $2,123,749
    Senior debt - Predecessor Company                          -
                                                       ---------
Total debt                                             2,123,749

Accounts payable and accrued expenses                     97,555
Deferred income taxes, net                                 3,931
                                                       ---------
Total Liabilities                                      2,225,235

Stockholders' Equity:
    Common Stock                                           1,259
    Additional capital                                   108,256
    Accumulated deficit                                 (703,651)
    Accumulated other comprehensive income                 1,935
    Common stock in treasury                                (536)
                                                       ---------
Total Stockholders' Equity                              (592,737)
                                                       ---------
Total Liabilities and Stockholders' Equity            $1,632,498
                                                       =========


                       The FINOVA Group, Inc.
     Unaudited Condensed Statements of Consolidated Operations
                  Three Months Ended June 30, 2004
                          (In Thousands)

Revenues:
    Interest income                                      $33,934
    Rental income                                          9,346
    Operating leases income                               14,331
    Fees and other income                                  7,283
                                                       ---------
Total Revenues                                            64,894

Interest expense                                         (67,638)
Operating lease and other depreciation                    (4,239)
                                                       ---------
Interest Margin                                           (6,983)

Other Revenues and (Expenses):
    Reversal of provision for credit losses               19,673
    Net gain on financial assets                          19,852
    Portfolio expenses                                    (4,424)
    General & Administrative expenses                    (13,128)
                                                       ---------
Total Other Revenues and (Expenses)                       21,973

Income from continuing operations before
    Income taxes and preferred dividends                  14,990
    Income tax expense                                         -
                                                       ---------
Net Income                                               $14,990
                                                       =========


                       The FINOVA Group Inc.
     Unaudited Condensed Statements of Consolidated Cash Flows
                   Six Months Ended June 30, 2004
                           (In Thousands)

Operating Activities:
Net Income                                               $61,064

Adjustment to reconcile net income to net
    cash provided by operating activities:
    Reversal of provision for credit losses              (70,363)
    Net cash gain on disposal of financial assets        (40,131)
    Net non-cash charge off of financial assets            7,451
    Depreciation and amortization                         10,130
    Deferred income taxes, net                              (119)
    Other amortization                                     4,335

Change in assets and liabilities:
    Decrease in other assets                               2,378
    Decrease in accounts payable and accrued expenses    (26,970)
                                                       ---------
Net Cash Used by Operating Activities                    (52,225)

Investing Activities:
    Proceeds from disposals of leases and other assets    35,604
    Proceeds from sales of investments                     9,193
    Collections from financial assets                    133,270
    Fundings under existing customer commitments         (43,002)
    Recoveries of loans previously written-off            21,776
    Deposits of impermissible restricted payments
       into restricted cash account                      (12,500)
                                                       ---------
Net Cash Provided by Investing Activities                667,866

Financing Activities:
    Repayments of Berkadia Loan                         (525,000)
    Repayments of Senior Notes                          (237,500)
                                                        ---------
Net Cash Used by Financing Activities                   (762,500)

Decrease in Cash and Cash Equivalents                   (146,859)

Cash and Cash Equivalents, beginning of period           789,138
                                                       ---------
Cash and Cash Equivalents, end of period                $642,279
                                                       =========

A full-text copy of The FINOVA Group's Form 10-Q Report ending
June 30, 2004, is available for free at the Securities and
Exchange Commission at:

   http://www.sec.gov/Archives/edgar/data/883701/000119312504139020/d10q.htm


FINOVA CAPITAL: Reports $1.1 Million 2nd Quarter 2004 Net Income
----------------------------------------------------------------

                    FINOVA Capital Corporation
                Unaudited Consolidated Balance Sheet
                        As of June 30, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $617,529
    Restricted cash                                       12,500

Financing Assets:
    Loans and other financing contracts, net             599,654
    Direct Financing Leases                              122,339
    Leveraged leases                                           -
                                                       ---------
Total financing assets                                   721,993

Reserve for credit losses                               (148,465)
                                                       ---------
Net Financing assets                                     573,528

Other Financial assets:
    Operating Leases                                      61,643
    Assets held for sale                                 138,242
    Assets held for the production of income              36,565
    Investments                                            6,227
    Net assets of discontinued operations                      -
                                                       ---------
Total other financial assets                             242,677
                                                       ---------
Total Financial Assets                                   816,205

Other Assets                                               7,944
Due from subsidiaries                                          -
Investment in subsidiaries                                 1,914
Intercompany loans                                       180,437
                                                       ---------
Total Assets                                          $1,636,529
                                                       =========

                Liabilities and Stockholders' Equity

Liabilities:
    Berkadia Loan                                              -
    Intercompany note                                 $2,808,164
    Senior Notes, net -- Reorganized Company                   -
    Senior debt - Predecessor Company                          -
                                                       ---------
Total debt                                             2,808,164

Accounts payable and accrued expenses                     46,382

Deferred income taxes, net                                 3,931
                                                       ---------
Total liabilities                                      2,858,477

Stockholders' equity:
    Common Stock                                              25
    Additional capital                                  (793,267)
    Accumulated deficit                                 (742,897)
    Accumulated other comprehensive (loss) income          2,670
    Related party transactions                           311,521
                                                       ---------
Total Stockholders' equity                            (1,221,948)
                                                       ---------
Total Liabilities and Stockholders' Equity            $1,636,529
                                                       =========


                    FINOVA Capital Corporation
            Unaudited Condensed Statements of Operations
                   Six Months Ended June 30, 2004
                           (In Thousands)

Revenues:
    Interest, fees and other income                      $82,982
    Intercompany interest income                               -
    Rental income                                          7,510
    Operating lease income                                25,155
                                                       ---------
Total revenues                                           115,647

Interest Expense                                          (1,518)
Intercompany interest expense                           (110,738)
Operating lease and other depreciation                    (7,111)
                                                       ---------
Interest Margin                                           (3,720)

Other Revenues and (Expenses):
    Reversal of provision for credit losses               12,134
    Net gain on financial assets                          20,513
    Operating expenses                                   (27,771)
    Gain from extinguishments of debt, net                     -
    Net reorganization expense                                 -
                                                       ---------
Total other Revenues and (expenses)                        4,876
                                                       ---------
(Loss) income from operations before income taxes          1,156

Income tax expense                                             -
                                                       ---------
(Loss) income from continuing operations                   1,156

Discontinued operations, net of tax                            -
Net loss on disposal of operations, net of tax                 -
                                                       ---------
Net (Loss) income                                         $1,156
                                                       =========


FINOVA CAPITAL plc: 2004 Half-Year Net Income Tops $86 Million
--------------------------------------------------------------

                         FINOVA Capital plc
                Unaudited Consolidated Balance Sheet
                        As of June 30, 2004
                           (In Thousands)

Assets:
    Cash and cash equivalents                            $24,748

Financing Assets:
    Loans and other financing contracts, net              33,096
    Direct financing leases                               50,903
    Leverage leases                                            -
                                                       ---------
Total financing assets                                    83,999
Reserve for credit losses                                (25,242)
                                                       ---------
Net financing assets                                     (58,757)

Other Financial Assets:
    Assets held for sale                                       -
    Operating leases                                       2,772
    Assets held for the production of income               5,759
    Investments                                                -
    Net assets of discontinued operations                      -
                                                       ---------
Total other financial assets                               8,531
                                                       ---------
Total Financial Assets                                    57,288

Other assets                                                 503
Intercompany loans                                             -
Investment in subsidiaries                                     -
Due from subsidiaries                                          -
                                                       ---------
Total Assets                                             $92,539
                                                       =========

               Liabilities and Stockholders' Equity

Liabilities:
    Berkadia Loan                                              -
    Intercompany note                                   $178,000
    Senior Notes, net - Reorganized Company                    -
    Senior debt - Predecessor Company                          -
                                                       ---------
Total debt                                               178,000

Accounts payable and accrued expenses                     21,770
Deferred income taxes, net                                     -
                                                       ---------
Total Liabilities                                        199,770

Stockholders' Equity:
    Common Stock                                               -
    Additional capital                                   (18,383)
    Accumulated earnings (deficit)                       (88,711)
    Accumulated other comprehensive income (loss)           (137)
    Related party transactions                                 -
                                                       ---------
Total Stockholders' Equity                              (107,231)
                                                       ---------
Total Liabilities and Stockholders' Equity               $92,539
                                                       =========


                         FINOVA Capital plc
            Unaudited Condensed Statements of Operations
                   Six Months Ended June 30, 2004
                           (In Thousands)

Revenues:
    Interest, fees and other income                       $9,381
    Intercompany interest income                               -
    Rental income                                          7,612
    Operating lease income                                 1,576
                                                       ---------
Total Revenues                                            18,569

Interest Expense                                             (52)
Intercompany interest expense                             (2,062)
Operating lease and other depreciation                      (741)
                                                       ---------
Interest Margin                                           15,714

Other Revenues and (Expenses):
    Reversal of provision for credit losses               62,128
    Net gain on financial assets                          10,340
    Operating expenses                                    (2,049)
    Gain from extinguishments of debt, net                     -
                                                       ---------
Total Other Revenues and (Expenses)                       70,419
                                                       ---------
Income from continuing operations before income taxes     86,133

Income tax expense                                             -
                                                       ---------
Income from continuing operations                         86,133

Discontinued operations, net of tax                            -
Net loss on disposal of operations, net of tax                 -
                                                       ---------
Income (loss) before extraordinary item                        -
                                                       ---------
Net Income                                               $86,133
                                                       =========


FINOVA: Loan Administration's Second Quarter 2004 Results
---------------------------------------------------------

                  FINOVA Loan Administration, Inc.
                 Unaudited Condensed Balance Sheet
                        As of June 30, 2004
                           (In Thousands)

                              Assets

Current Assets:
    Cash and cash equivalents                                  -

Financing Assets:
    Loans and other financing contracts, net                   -
    Direct Financing Leases                                    -
    Leveraged leases                                           -
                                                       ---------
Total financing assets                                         -

Reserve for credit losses                                      -
                                                       ---------
Net Financing assets                                           -

Other financial assets:
    Assets held for sale                                       -
    Operating leases                                           -
    Assets held for the production of income                   -
    Investments                                                -
    Net assets of discontinued operations                      -
                                                       ---------
Total other financial assets                                   -
                                                       ---------
Total Financial Assets                                         -

Other Assets                                                   -
Intercompany loans                                             -
Investment in subsidiaries                                     -
Due from subsidiaries                                          -
                                                       ---------
Total Assets                                                   -
                                                       =========

               Liabilities and Stockholders' Equity

Liabilities:
    Berkadia Loan                                              -
    Intercompany note                                          -
                                                       ---------
Total debt                                                     -

Accounts payable and accrued expenses                          -
Deferred income taxes, net                                     -
                                                       ---------
Total liabilities                                              -

Stockholders' equity:
    Common Stock                                               -
    Additional capital                                         -
    Accumulated earnings (deficit)                             -
    Accumulated other comprehensive income (loss)              -
    Related party transactions                                 -
                                                       ---------
Total Stockholders' equity                                     -
                                                       ---------
Total Liabilities and Stockholders' Equity                     -
                                                       =========


                  FINOVA Loan Administration, Inc.
            Unaudited Condensed Statements of Operations
                   Six Months Ended June 30, 2004
                           (In Thousands)

Revenues:
    Interest, fees and other income                            -
    Intercompany interest income                               -
    Rental income                                              -
    Operating lease income                                     -
                                                       ---------
Total revenues                                                 -

Interest expense                                               -
Intercompany interest expense                               ($27)
Operating lease and other depreciation                         -
                                                       ---------
Interest Margin                                              (27)

Other Revenues and (Expenses):
    Reversal of provision for credit losses                    -
    Net gain (loss) on financial assets                        -
    Operating expenses                                         -
    Gain from extinguishments of debt, net                     -
    Net reorganization expense                                 -
                                                       ---------
Total other Revenues and (expenses)                            -
                                                       ---------
Income (loss) from operations before income taxes            (27)
Income tax expense                                             -
                                                       ---------
Loss from continuing operations                              (27)

Discontinued operations, net of tax                            -
Net loss on disposal of operations, net of tax                 -
                                                       ---------
Net Income (Loss)                                           ($27)
                                                       =========


FINOVA: Mezzanine Reports $9.9 Million Net Income in June 2004
--------------------------------------------------------------

                   FINOVA Mezzanine Capital, Inc.
                 Unaudited Condensed Balance Sheet
                        As of June 30, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                                  -

Financing Assets:
    Loans and other financing contracts, net             $12,929
    Direct Financing Leases                                    -
    Leveraged leases                                           -
                                                       ---------
Total financing assets                                    12,929

Reserve for credit losses                                   (125)
                                                       ---------
Net Financing assets                                      12,804

Other Financial assets:
    Operating Leases                                           -
    Assets held for sale                                       -
    Assets held for the production of income                   -
    Investments                                            1,907
    Net assets of discontinued operations                      -
                                                       ---------
Total other financial assets                               1,907
                                                       ---------
Total Financial Assets                                    14,711

Other Assets                                                   -
Due from subsidiaries                                          -
Investment in subsidiaries                                     -
Intercompany loans                                             -
Investment in subsidiaries                                     -
                                                       ---------
Total Assets                                             $14,711
                                                       =========

               Liabilities and Stockholders' Equity

Liabilities:
    Berkadia Loan                                              -
    Intercompany note                                          -
    Senior Notes, net - Reorganized Company                    -
    Senior debt - Predecessor Company                          -
                                                       ---------
Total debt                                                     -

Accounts payable and accrued expenses                          -

Deferred income taxes, net                                     -
                                                       ---------
Total liabilities                                              -

Stockholders' equity:
    Common Stock                                              $1
    Additional capital                                    18,527
    Accumulated (deficit) earnings                        76,457
    Accumulated other comprehensive income (loss)         (1,241)
    Related party transactions - intercompany note       (79,033)
                                                       ---------
Total Stockholders' equity                                14,711
                                                       ---------
Total Liabilities and Stockholders' Equity               $14,711
                                                       =========


                   FINOVA Mezzanine Capital, Inc.
            Unaudited Condensed Statements of Operations
                   Six Months Ended June 30, 2004
                           (In Thousands)

Revenues:
    Interest, fees and other income                       $4,102
    Intercompany interest income                           2,778
    Rental income                                              -
    Operating lease income                                     -
                                                       ---------
Total revenues                                             6,880

Interest Expense                                               -
Intercompany interest expense                                  -
Operating lease and other depreciation                         -
                                                       ---------
Interest Margin                                            6,880

Other Revenues and (Expenses):
    Reversal of provision for credit losses                    -
    Net gain on financial assets                           3,060
    Operating expenses                                        23
    Gain from extinguishments of debt, net                     -
                                                       ---------
Total other Revenues and (expenses)                        3,083
                                                       ---------
Income from continuing operations before income taxes      9,963

Income tax expense                                             -
                                                       ---------
Income from continuing operations                          9,963

Discontinued operations, net of tax                            -
Net loss on disposal of operations, net of tax                 -
                                                       ---------
Net Income (Loss)                                         $9,963
                                                       =========


FOOTSTAR INC: Reports $13.8 Million Net Loss in July 2004
---------------------------------------------------------
On August 16, 2004, Footstar, Inc. and its debtor-affiliates filed  
their consolidated monthly operating report for the period from
July 4, 2004 to July 31, 2004.  The Debtors report a net loss of
$13.8 million in $58.2 million of net sales for July 2004.  At
July 31, 2004, Footstar, Inc.'s consolidated balance sheet shows:

         Total Current Assets       311,100,000
         Total Assets             $ 401,900,000
         Current Liabilities        123,900,000
         Total Liabilities          176,000,000  
           Subject to Compromise     
         Shareholders' Equity     $  39,400,000

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

    http://www.sec.gov/Archives/edgar/data/1011308/000090951804000704/mv8-17ex99_1.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.


FORTUNE NATURAL: Reports $71,452 Net Loss for June 2004
-------------------------------------------------------
Fortune Natural Resources Corporation filed its monthly operating
report for June 2004 with the United States Bankruptcy Court for
the Eastern District of Louisiana (Bankr. Case No. 04-14112).  
Fortune reports a $71,452 net loss in June 2004.  

The Debtor's June 30 balance sheet shows:

                                   
               Fortune Natural Resources Corporation
                           Balance Sheet
                         At June 30, 2004
   
     Current Assets                           $107,018
     Total Assets                            5,932,900
     Post-petition Liabilities                  15,109  
     Total Liabilities                       6,177,394
     Total Equity (Net Worth)                ($244,495)


On June 1, 2004, Fortune Natural Resources Corporation filed a
voluntary petition in the United States Bankruptcy Court, Eastern
District of Louisiana, for relief under Chapter 11 of Title 11,
U.S.C. Sections 101-1330. The Debtor continues to own its property
and operate its business as a Debtor-in-Possession pursuant to
Sections 1107 and 1108 of the Bankruptcy Code. No trustee or
examiner has been appointed in this case.

A full-text copy of Fortune Natural Resources Corporation's June
2004 Monthly Operating Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/38242/000003824204000013/exh99_1.txt


KEYSTONE CONSOLIDATED: July 2004 Net Income Tops $7.2 Million
-------------------------------------------------------------
For the month ending July 31, 2004, Keystone Consolidated
Industries reports earning $7,260,183 on $45,172,878 of net sales.
At July 31, 2004, Keystone Consolidated's balance sheet shows:

         Current Assets         $ 79,086,233  
         Total Assets            310,734,023
         Current Liabilities     157,502,620
         Stockholders' Deficit  $ 18,622,502

A full-text copy of Keystone Consolidated Industries' July 2004   
Monthly Operating Report is available at no charge at:   
  
   http://www.sec.gov/Archives/edgar/data/55604/000002424004000141/exhibit991july.txt    
  
  
On February 26, 2004, Keystone Consolidated Industries, Inc.,   
together with five of its direct and indirect subsidiaries   
(FV Steel and Wire Company, DeSoto Environmental Management,
Inc., J.L. Prescott Company, Sherman Wire Company f/k/a DeSoto,  
Inc., and Sherman Wire of Caldwell, Inc.), filed voluntary  
petitions for relief under Chapter 11 of Title 11 of the United
States Code in the United States Bankruptcy Court for the Eastern
District of Wisconsin in Milwaukee.                   


KMART: Reports $155 Million Second Quarter 2004 Net Income
----------------------------------------------------------
Kmart Holding Corporation (Nasdaq: KMRT) reported financial
results for the second quarter of fiscal 2004.  For the 13 weeks
ended July 28, 2004, Kmart Holding Corporation (Kmart or the
Company) reported net income of $155 million.  The Company
reported a net loss of $5 million for the same period in 2003.

Operating income for the 13 weeks ended July 28, 2004 was $275
million or 5.7% of sales compared to $10 million or 0.2% of sales
for the same period in 2003.  Operating income for the 13 weeks
ended July 28, 2004 included net gains on sales of assets of $72
million.  Same-store sales and total sales decreased 14.9% and
15.3%, respectively, for the 13 weeks ended July 28, 2004,
compared to the 13 weeks ended July 30, 2003.

For the 26 weeks ended July 28, 2004, Kmart reported net income of
$248 million.

During the quarter, cash and cash equivalents increased
approximately $400 million to a total of $2.6 billion as of  
July 28, 2004.

Julian C. Day, President and Chief Executive Officer of Kmart,
said, "We are pleased with our continued progress and ability to
deliver consistent profit.  We have continued to focus on process
changes that simplify the operations of our stores and
distribution centers, including improving merchandise flow and  
lowering inventory levels which result in lower shrink expense,  
lower clearance and promotional markdowns and lower payroll  
expenses."

Mr. Day added, "We are happy with the dramatically improved
styling and quality of our recently launched fall product lines,  
and how they have been brought to life through marketing  
partnerships such as those with E! Entertainment and The WB  
Network.  We will continue our attention on our stores, product  
assortment, and the quality of our customers' shopping  
experience, and remain focused on those strategies that have  
contributed to the improved performance of the Company."

        Management's Discussion and Analysis of Operations

Factors affecting same-store sales and total sales for the  
13 weeks ended July 28, 2004, included reductions in promotional  
events and newspaper advertising; the effect of unseasonably cool  
weather in the current quarter on sales of summer seasonal  
products including lawn and garden merchandise; and a transition  
in our apparel lines leading up to back-to-school product  
launches.

Gross margin increased $9 million to $1.24 billion for the 13
weeks ended July 28, 2004, from $1.23 billion for the 13 weeks
ended July 30, 2003.  Gross margin as a percentage of sales  
increased to 26.0% for the 13 weeks ended July 28, 2004, from  
21.8% in the prior year.  The improvement in the Company's gross  
margin rate was primarily attributable to reduced markdowns on  
promotions and clearance items, and improvements in shrinkage at  
our distribution centers and stores.  Included in gross margin  
was a $16 million charge recorded in the second quarter of fiscal  
2004 in conjunction with the store closings inventory  
liquidations.

Selling, general and administrative expenses (SG&A) decreased $186
million to $1.04 billion, or 21.7%, of sales for the 13 weeks
ended July 28, 2004 from $1.23 billion, also 21.7% of sales, for
the 13 weeks ended July 30, 2003.  The decline resulted from a
reduction in store payroll and related expenditures due to
increased operating efficiencies and reduced sales volume at our
stores, and to reductions in the Company's weekly and mid-week
circular advertising, partially offset by an increase in
electronic media advertising.

The remaining net reduction in SG&A is due to continued efforts to
reduce operating expenses.

Interest expense, net for the 13 weeks ended July 28, 2004 and
July 30, 2003 was $31 million and $21 million, respectively. In
July 2004, the Company voluntarily reduced the size of our credit
agreement from $1.5 billion to $1.0 billion to reduce the overall
cost of the facility.  In conjunction with this action, the
Company accelerated the amortization of $9 million of the
associated debt issuance costs, which is included in Interest  
expense, net for the 13 weeks ended July 28, 2004.  During the 13  
weeks ended July 28, 2004, $13 million of interest expense was  
recorded for the accretion of obligations recorded at net present  
value.

           Discussion of Non-GAAP Financial Information

                   Year-to-date Adjusted EBITDA

Year-to-date Adjusted EBITDA (Year-to-date earnings before
interest, taxes, depreciation, amortization, net gains on sales  
of assets, bankruptcy-related recoveries and certain other items)  
is a non-GAAP financial measure.

Year-to-date Adjusted EBITDA is not the same as EBITDA defined in
Kmart's credit facility.  Year-to-date Adjusted EBITDA is a
Company-defined metric used solely by Kmart's management for  
the administration of the Company's incentive compensation  
program for eligible employees.  Year-to-date Adjusted EBITDA is  
not a measure or indicator of the overall financial condition or  
performance of Kmart and should not be used by investors as a  
basis for formulating investment decisions as it excludes a  
number of important cash and non-cash recurring items.   
Management compensates for this limitation by using GAAP  
measures, as well, in managing the business.

                                               26-Weeks
                                                  Ended
                                               July 28, 2004
                                               -------------
Net income                                         $248

Adjustments to reconcile to  
Year-to-date Adjusted EBITDA:
   Income tax provision                             150
   Interest expense, net                             57
   Depreciation and amortization                      8
   Net gains on sales of assets                    (104)
   Bankruptcy-related recoveries                    (12)
   Other                                             34

Year-to-date Adjusted EBITDA                       $381

              Comparability of Financial Statements

Upon emergence from bankruptcy on May 6, 2003, Kmart Corporation
(Predecessor Company) applied the provisions of Fresh-Start
accounting effective as of April 30, 2003, at which time a new
reporting entity, Kmart Holding Corporation, was created.  As a
result of applying Fresh-Start accounting, the reported historical
financial statements of the Predecessor Company for periods ended
prior to May 1, 2003 generally are not comparable to those of
Kmart.  Therefore, comparisons of earnings per share data to
Predecessor Company results are not included.  Results of
operations for the period ended April 30, 2003, refer  
to the Predecessor Company.

A full-text copy of Kmart's Second Quarter Report for the fiscal  
year 2004 is available for free at:

   http://sec.gov/Archives/edgar/data/1229206/000095012404003850/0000950124-04-003850.txt


                    Kmart Holding Corporation  
                   Consolidated Balance Sheets  
                       As of July 28, 2004
                           (Unaudited)  
                          (In millions)  
  
                              Assets

Current Assets
   Cash and cash equivalents                             $2,626
   Merchandise inventories                                3,212
   Accounts receivable, net                                 225
   Other current assets                                     130
                                                 --------------
Total Current Assets                                      6,193

Property and equipment, net                                 240
Other assets and deferred charges                           212
                                                 --------------
TOTAL ASSETS                                             $6,645
                                                 ==============

               Liabilities and Shareholders' Equity

Current Liabilities
   Mortgages payable due within one year                     $4
   Accounts payable                                         977
   Accrued payroll and other liabilities                    772
   Taxes other than income taxes                            291
                                                 --------------
Total Current Liabilities                                 2,044

Long-term Liabilities
   Long-term debt and mortgages payable                     103
   Capital lease obligations                                335
   Pension obligations                                      880
   Unfavorable operating leases                             316
   Other long-term liabilities                              430
                                                 --------------
Total Liabilities                                         4,108
                                                 --------------
Shareholders' Equity                                      2,537
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY               $6,645
                                                 ==============


                    Kmart Holding Corporation  
              Consolidated Statements of Operations  
                  13 Weeks Ended July 28, 2004  
                           (Unaudited)
                          (In millions)

Sales                                                    $4,785
Cost of sales, buying and occupancy                       3,543
                                                 --------------
Gross margin                                              1,242

Selling, general and administrative expenses              1,039
Net gains on sales of assets                                (72)
                                                 --------------
Operating income (loss)                                     275

Interest expense, net                                        31
Bankruptcy-related recoveries                                (5)
Equity income in unconsolidated subsidiaries                  -
                                                 --------------
Income (loss) from operations before income taxes           249
Provision for (benefit from) income taxes                    94
                                                 --------------
Net income (loss)                                          $155
                                                 ==============


                    Kmart Holding Corporation  
              Consolidated Statements of Cash Flows  
                  26 Weeks Ended July 28, 2004  
                           (Unaudited)
                          (In millions)

Cash Flows From Operating Activities
   Net income (loss)                                       $248
   Adjustments to reconcile net income (loss) to net cash
    provided by operating activities:
      Depreciation and amortization                          24
      Store closings inventory charges                       17
      Net gains on sales of assets                         (104)
      Deferred income taxes                                  22
      Equity income in unconsolidated subsidiaries           (3)
   Dividends received from Meldisco                           3
   Cash used for store closings and other charges             -
   Change in:
      Merchandise inventories                                10
      Accounts receivable                                    41
      Accounts payable                                      156
      Taxes payable                                         133
      Other assets                                           13
      Other liabilities                                     (24)
                                                 --------------
Net Cash Provided By Operating Activities                   536
                                                 --------------
Cash Flows From Investing Activities
   Proceeds from sales of assets                            153  
   Capital expenditures                                    (124)
                                                 --------------
Net Cash Provided By Investing Activities                    29
                                                 --------------
Cash Flows From Financing Activities
   Payments on capital lease obligations                    (25)
   Payments on mortgages                                     (2)
                                                 --------------
Net Cash Used For Financing Activities                      (27)
                                                 --------------
Net Change in Cash and Cash Equivalents                     538
Cash and Cash Equivalents, Beginning of Period            2,088
                                                 --------------
Cash and Cash Equivalents, End of Period                 $2,626
                                                 ==============


PEGASUS SATELLITE: Reports $470 Million Net Loss in June 2004
-------------------------------------------------------------

               Pegasus Satellite Communications, Inc.
          Unaudited Condensed Consolidated Balance Sheets
                         As of June 30, 2004
                           (in thousands)

Current assets                                          $190,908
Property and equipment, net                               49,320
Intangible assets, net                                   974,572
Other noncurrent assets                                  147,496
                                                      ----------
    TOTAL ASSETS                                      $1,362,296
                                                      ==========

Liabilities not subject to compromise:
    Current liabilities                                  $69,099
    Long-term debt                                       502,602
    Other noncurrent liabilities                          48,181

Liabilities subject to compromise:
    Unsecured debt and interest                          962,537
    Litigation verdict accrual                            62,719
    Accrued programming fees & commissions                55,203
    Accounts payable and accrued expenses                  2,789
                                                      ----------
Liabilities subject to compromise                      1,083,248
Minority interest                                            859
Redeemable preferred stock                               243,486
Stockholder's deficit                                   (585,179)
                                                      ----------
    TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT       $1,362,296
                                                      ==========


               Pegasus Satellite Communications, Inc.
      Unaudited Condensed Consolidated Statements of Operations
                  Three months ended June 30, 2004
                           (in thousands)

Net revenues                                            $208,721
Operating expenses, excluding litigation
    judgment, impairment of direct broadcast
    satellite rights, and reorganization items           190,272
Litigation judgment                                        4,719
Impairment of direct broadcast satellite assets          429,638
Reorganization items                                      14,614
                                                       ---------
Income (loss) from operations                           (430,522)
Interest and other expense, net                          (39,480)
Net benefit for income taxes                                   -
Income (loss) from discontinued operations                     -
Cumulative effect of consolidating variable
    interest entities                                          -
                                                       ---------
Net loss                                               ($470,002)
                                                       =========


PG&E NATIONAL: USGen New England's May Monthly Operating Report
---------------------------------------------------------------

                    USGen New England, Inc.
                    Unaudited Balance Sheet
                       As of May 31, 2004

ASSETS

Cash and Cash Equivalents                          $224,468,669
Accounts Receivable                                 112,218,166
Support Payment Receivable - Current               Undetermined
Fuel, Inventory and Supplies                         52,694,703
Prepaid Expenses                                     35,012,478
Risk Management Asset - Current                               -
                                                 --------------
Total Current Assets                               Undetermined

Property, Plant and Equipment - net               1,463,730,470
Construction Work in Progress                        34,697,702
Intangible Asset                                      4,187,761
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                                    $25,226,315
Accrued Liabilities                                  96,649,038
Risk Management Liability - Current                           -
                                                 --------------
Total Current Liabilities                           121,875,352

Deferred Income Taxes                                77,604,772
Risk Management Liability - Non-current                       -
Other Liabilities                                     8,548,878
                                                 --------------
Total Postpetition Liabilities                      208,029,002

Prepetition Accounts Payable                       Undetermined
Prepetition IC Accounts Payable                    Undetermined
Prepetition Market Accounts Payable                Undetermined
Current Debt                                         84,770,293
Out of Market Liabilities - Current                  29,869,846
Out of Market Liabilities - Non-current             218,028,433
                                                 --------------
Total Prepetition Liabilities                      Undetermined
                                                 --------------
Total Liabilities                                  Undetermined

Shareholder's Equity
   Common Stock, Additional Paid-In Capital       1,347,736,929
   Other Comprehensive Income                        (8,158,884)
   Retained Earnings                               (261,478,469)
                                                 --------------
Total Shareholder's Equity                       $1,078,099,576
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


                    USGen New England, Inc.
                   Unaudited Income Statement
              For the Period May 1 to May 31, 2004

REVENUE:
   Contract Revenue                                 $41,862,526
   Market Energy                                     11,047,565
   Ancillary Products                                   582,295
   Market Capacity                                      209,500
   Power Hedges                                      (1,015,713)
   Other Revenue                                     (2,385,616)
                                                 --------------
Total Revenue                                        50,300,557

FUEL COSTS:
   Contract Expense                                   8,860,312
   Fuel Expense                                      18,435,868
   Fuel Hedges                                         (263,319)
                                                 --------------
Total Fuel Costs                                     27,032,862
                                                 --------------
Gross Profit                                         23,267,695

OPERATING EXPENSES:
   Direct Labor                                       5,124,005
   Direct Materials                                   3,728,687
   Direct Subcontractor Services                      6,680,842
   Other Operating                                    1,473,731
   Bonus Accrual, Union and non-union                   401,171
   Ash Disposal                                       1,409,445
                                                 --------------
Total Station Operating Expenses                     18,817,880

Corporate Expense:
   Corporate Labor                                      586,852
   Bonus                                                124,263
   Travel and Entertainment                              12,865
   Insurance                                            518,569
   Professional Services                              2,769,857
   Other General Administrative                         194,921
                                                 --------------
Total Corporate Expenses                              4,207,326

General Expenses:
   Property Taxes                                     3,266,040
   Interconnect Cost                                    113,093
   Amortization                                               -
   Depreciation                                       5,568,308
                                                 --------------
Total General Expenses                                8,947,440
                                                 --------------
Total Operating Expenses                             31,972,647
                                                 --------------
Total Operating Income                               (8,704,952)

Other Income (Expenses):
   Lease Expense                                       (225,000)
   Interest Income - NEES Receivable                  1,917,961
   Income - Other                                       169,748
   Expense - Other                                            -
   Gain                                                  74,250
   Bank and LC Fees                                     (57,832)
                                                 --------------
Total Other Income (Expenses)                         1,879,127
                                                 --------------
Income Before Tax                                    (6,825,825)
Income Taxes                                         (2,811,903)
                                                 --------------
Net Income                                          ($4,013,922)
                                                 ==============


                    USGen New England, Inc.
                 Unaudited Cash Flow Statement
              For the Period May 1 to May 31, 2004

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       ($4,013,922)
Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                       5,568,308
   Amortization                                         747,581
   Loss on disposal of fixed assets                     (74,250)

Change in assets and liabilities:
   Accounts receivable (Increase)                    16,263,803
   Inventory (Increase)                              (9,737,574)
   Prepaid, Deposits & Other (Increase)              (2,207,996)
   Deferred Income Taxes (Decrease)                    (551,303)
   Accounts Payable (Decrease)                        8,954,935
   Accrued Liabilities (Decrease)                     2,130,972
   Liabilities - Other (Decrease)                    (3,105,674)
   Prepetition Assets (Increase)                      1,950,000
   Prepetition Liabilities (Decrease)                (3,317,424)
   Equity - Other (Increase)                          2,099,570
                                                 --------------
Net cash (used in) provided by
   operating activities                              14,707,026

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property, plant and equipment                     (5,360,490)
   Change in Investment in Subsidiary                         -
   Support payments received - principle              5,685,389
                                                 --------------
Net cash provided by (used in)
   investing activities                                 324,899

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Debt                                           -
   Capital Contributions                                      -
                                                 --------------
Net cash provided by (used in) financing
   activities                                                 -
                                                 --------------
NET INCREASE IN CASH AND CASH EQUIVALENTS            15,031,925

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD      209,436,744
                                                 --------------
CASH AND CASH EQUIVALENTS, END OF PERIOD           $224,468,669
                                                 ==============


PG&E NATIONAL: USGen New England's June Monthly Operating Report
----------------------------------------------------------------

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

ASSETS

Cash and Cash Equivalents                          $205,291,269
Accounts Receivable                                 126,062,219
Support Payment Receivable - Current               Undetermined
Fuel, Inventory and Supplies                         54,087,233
Prepaid Expenses                                     27,853,761
Risk Management Asset - Current                               -
                                                 --------------
Total Current Assets                               Undetermined

Property, Plant and Equipment - net               1,461,256,182
Construction Work in Progress                        36,480,526
Intangible Asset                                     $5,831,163
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                                    $23,877,407
Accrued Liabilities                                  93,537,884
Risk Management Liability - Current                           -
                                                 --------------
Total Current Liabilities                           117,415,291

Deferred Income Taxes                                77,514,187
Risk Management Liability - Non-current                       -
Other Liabilities                                     8,621,896
                                                 --------------
Total Postpetition Liabilities                      203,551,375

Prepetition Accounts Payable                       Undetermined
Prepetition IC Accounts Payable                    Undetermined
Prepetition Market Accounts Payable                Undetermined
Current Debt                                         84,770,293
Out of Market Liabilities - Current                  29,078,887
Out of Market Liabilities - Non-current             215,771,266
                                                 --------------
Total Prepetition Liabilities                      Undetermined
                                                 --------------
Total Liabilities                                  Undetermined

Shareholder's Equity
   Common Stock, Additional Paid-In Capital       1,347,736,929
   Other Comprehensive Income                        (6,356,599)
   Retained Earnings                               (268,423,714)
                                                 --------------
Total Shareholder's Equity                       $1,072,956,617
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


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

REVENUE:
   Contract Revenue                                 $48,182,855
   Market Energy                                      5,435,920
   Ancillary Products                                 1,129,214
   Market Capacity                                      209,500
   Power Hedges                                        (480,176)
   Other Revenue                                     (2,197,766)
                                                 --------------
Total Revenue                                        52,279,547

FUEL COSTS:
   Contract Expense                                   8,796,369
   Fuel Expense                                      25,729,955
   Fuel Hedges                                         (276,282)
                                                 --------------
Total Fuel Costs                                     34,250,042
                                                 --------------
Gross Profit                                         18,029,505

OPERATING EXPENSES:
   Direct Labor                                       5,499,356
   Direct Materials                                   2,228,449
   Direct Subcontractor Services                      4,215,930
   Other Operating                                    1,655,284
   Bonus Accrual, Union and non-union                   421,855
   Ash Disposal                                       1,491,294
                                                 --------------
Total Station Operating Expenses                     15,512,168

Corporate Expense:
   Corporate Labor                                      568,729
   Bonus                                                111,891
   Travel and Entertainment                              18,761
   Insurance                                            414,204
   Professional Services                              4,416,031
   Other General Administrative                         200,675
                                                 --------------
Total Corporate Expenses                              5,730,290

General Expenses:
   Property Taxes                                     3,266,040
   Interconnect Cost                                    110,500
   Depreciation                                       5,597,169
                                                 --------------
Total General Expenses                                8,973,709
                                                 --------------
Total Operating Expenses                             30,216,168
                                                 --------------
Total Operating Income                              (12,186,663)

Other Income (Expenses):
   Lease Expense                                       (400,000)
   Interest Income - NEES Receivable                  1,881,257
   Income - Other                                       174,656
   Expense - Other                                            -
   Gain                                              (1,230,297)
   Bank and LC Fees                                     (58,268)
                                                 --------------
Total Other Income (Expenses)                           367,348
                                                 --------------
Income Before Tax                                   (11,819,315)
Income Taxes                                         (4,874,071)
                                                 --------------
Net Income                                          ($6,945,244)
                                                 ==============


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

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       ($6,945,244)
Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                       5,597,169
   Amortization                                      (1,643,326)
   Loss on disposal of fixed assets                   1,230,297

Change in assets and liabilities:
   Accounts receivable (Increase)                   (13,528,856)
   Inventory (Increase)                              (1,392,530)
   Prepaid, Deposits & Other (Increase)               7,158,718
   Deferred Income Taxes (Decrease)                     (90,585)
   Accounts Payable (Decrease)                       (1,348,907)
   Accrued Liabilities (Decrease)                    (3,111,154)
   Liabilities - Other (Decrease)                    (2,975,108)
   Prepetition Assets (Increase)                     (2,316,347)
   Prepetition Liabilities (Decrease)                (1,199,828)
   Equity - Other (Increase)                          1,802,285
                                                 --------------
Net cash (used in) provided by
   operating activities                             (18,763,416)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property, plant and equipment                     (6,136,002)
   Change in Investment in Subsidiary                       (75)
   Support payments received - principle              5,722,093
                                                 --------------
Net cash (used in) provided by investing
   activities                                          (413,985)

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Debt                                           -
   Capital Contributions                                      -
                                                 --------------
Net cash provided by (used in) financing
   activities                                                 -
                                                 --------------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                             (19,177,400)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD      224,468,669
                                                 --------------
CASH AND CASH EQUIVALENTS, END OF PERIOD           $205,291,269
                                                 ==============


PILLOWTEX CORP: Releases June 2004 Monthly Operating Report
-----------------------------------------------------------

                        Pillowtex, et al.
                   Consolidated Balance Sheets
                       As of July 3, 2004

ASSETS    

Cash and cash equivalents                           $36,089,329
Accounts Receivables (Net)                           12,439,651
Inventory (Net)                                       5,335,000
Pre-Paid Expenses                                     3,791,906
Other Assets                                         10,478,681
                                                    -----------
      TOTAL CURRENT ASSETS                           68,134,567
                                                    -----------

Property Plan & Equipment (Net)                               -
Intangibles (Net)                                             -
Other Non-Current                                     1,823,137
Inter-Company                                                 -
                                                    -----------
      TOTAL ASSETS                                  $69,957,704
                                                    ===========

LIABILITIES & EQUITY

Liabilities Not Subject to Compromise
Accounts Payable                                              -
Accrued Expenses                                     39,851,204
Deferred Taxes                                          295,000
Professional Fees                                             -
Secured Debt                                            292,000
Other                                                86,001,000
                                                    -----------
      Total Not Subject to Compromise               126,439,204
                                                    -----------
Liabilities Subject to Compromise
Current Debt                                                  -
Unsecured debt                                       25,540,434
                                                    -----------
      Total Subject to Compromise                    25,540,434
                                                    -----------

Preferred Convertible Stock                                   -

Equity
     Inter-Company                                   (7,939,194)
     Investment in Subs                                       -
     Additional Paid in Capital                     196,004,000
     Common Stock                                       191,000
     Deferred Compensation                             (188,000)
     Retained Earnings                             (208,591,740)
     Pension Equity Adjustment                      (61,501,000)
     Translation                                          3,000
                                                    -----------
      TOTAL EQUITY                                  (74,082,740)
                                                    -----------
      TOTAL LIABILITIES & EQUITY                    $69,957,704
                                                    ===========


                        Pillowtex, et al.
               Consolidated Statement of Operations
               For Three Months Ended July 3, 2004

Net Revenues                                             $3,011
Cost of Goods Sold                                      445,936
                                                    -----------
Gross Profit                                           (442,925)

Selling, General & Administrative                       145,473
Other                                                   107,795
                                                    -----------
Earnings from Operations                               (696,193)

Interest Expense                                       (359,502)
Other Income & Expenses                                 129,298

Reorganization Expenses    
      Professional Fees                                  50,000
      U.S. Trustee Fees                                       -
      Gain/Loss from Sale of Assets                   1,580,708
      Other (Income)/Expense                                  -
                                                    -----------
      Total Reorganization Expenses                   1,630,708

Income Before Taxes                                  (2,096,697)
Income Taxes                                                  -
Income (Loss) on Disposal                                     -
                                                    -----------
      Net Profit or (Loss)                          ($2,096,697)
                                                    ===========


                        Pillowtex, et al.  
                        Actual Cash Flow  
                   For the Month of June 2004

Accounts Receivable Collections                      $1,403,000
Brown & Joseph Fees                                     (13,000)
Brown & Joseph Personnel                                (16,000)
Inventory Bulk Sales                                      3,000
Property Tax Related to Asset Sale                            -
Property (Net)                                        3,398,000
Miscellaneous Proceeds                                        -
                                                    -----------
Total Proceeds                                        4,775,000

Prepetition Cure Cost of Capital Leases                       -
Balance of 2003 Personal Property Tax                         -
Alliance Street Production                                    -
Interest Expense (Term and Revolver)                          -
Idle Facility Cost                                     (175,000)
Electric Demand Charge                                        -
Retail Store Operating Costs                                  -
Warehousing, Shipping & Billing                           5,000
Freight & Duty                                                -
Manufacturing                                                 -
Inventory Clean-up                                            -
Accrued Employee Expenses                                     -
Critical Vendor Payments                                      -
Continuing Medical                                            -
Terminated Medical                                            -
Workers' Compensation/Other Insurance                         -
Corporate                                               121,000
Severance/Retention                                           -
Warehouse Vacation Pay                                        -
SB Capital Estate Charge Back                                 -
Early Termination Fee                                         -
DIP Fees                                                      -
Professional Fees                                       437,000
Miscellaneous Expenses                                  487,000
                                                    -----------
Total Expenses                                          875,000
                                                    -----------
Net Cash Flow                                        $3,900,000
                                                    ===========


                        Pillowtex, et al.
                       Disbursement Report
                 For the Month Ended July 3, 2004

Net Payroll & Payroll Taxes Paid                       $651,397
Sales, Use & Other Taxes Paid                                 -
Inventory Purchases                                           -
Interest on Long Term Debt                                    -
Secured/Rental/Lease                                          -
Utilities                                                19,175
Insurance                                                     -
Administrative                                           18,782
Professional Fees                                       459,481
U.S. Trustee's Fees                                           -
Others                                                  107,722
                                                    -----------
Total for U.S. Trustee Fees                          $1,256,557
                                                    ===========

Headquartered in Dallas, Texas, Pillowtex Corporation --  
http://www.pillowtex.com/-- sold top-of-the-bed products to   
virtually every major retailer in the U.S. and Canada.  The  
Company filed for Chapter 11 protection on November 14, 2000  
(Bankr. Del. Case No. 00-4211), emerged from bankruptcy under a  
chapter 11 plan, and filed a second time on July 30, 2003 (Bankr.  
Del. Case No. 03-12339).  The second chapter 11 filing triggered  
sales of substantially all of the Company's assets.  David G.  
Heiman, Esq., at Jones Day, and William H. Sudell, Jr., Esq., at  
Morris Nichols Arsht & Tunnel, represent the Debtors.  On July 30,  
2003, the Company listed $548,003,000 in assets and $475,859,000  
in debts. (Pillowtex Bankruptcy News, Issue No. 68; Bankruptcy  
Creditors' Service, Inc., 215/945-7000)


RCN CORP: Files Amended First Quarter 2004 Financial Results
------------------------------------------------------------
On August 16, 2004, RCN Corporation filed an amended Form 10-Q
with the Securities and Exchange Commission restating the
consolidated financial statements as of, and for the three months
ended March 31, 2004 to correct depreciation expense.

Patrick T. Hogan, RCN Executive Vice President and Chief
Financial Officer, relates that in July 2004, the Company
discovered it had to record additional depreciation expense
during the quarter ended March 31, 2004, because:

    1. In 2003, the Company recorded an impairment of property,
       plant and equipment of $107.6 million.  While the charge
       was correctly recorded for the year ended December 31,
       2003, the effects of the impairment were improperly
       recorded in the financial records for the quarter ended
       March 31, 2004, and resulted in a $28.1 million under-
       recording of depreciation expense for the quarter ended
       March 31, 2004.

    2. In the quarter ended March 31, 2004, the Company determined
       that a change in the estimated useful life of technical
       labor and material associated with new customer
       installations was required to reduce the life to 5 years
       from 10.  While the change was effective January 1, 2004,
       the amount recorded was improperly recorded as effective
       March 1, 2004, and resulted in a $12.1 million under-
       recording of depreciation expense for the quarter ended
       March 31, 2004.

The significant effects of the restatement on the Company's
consolidated financial statements as of and for the three months
ended March 31, 2004, are:

                                     As Previously
(In Thousands)                         Reported     As Restated
                                     -------------   -----------
At March 31, 2004:

    Property, plant and equipment,
       net of depreciation                $885,154      $844,907
    Total assets                         1,486,782     1,446,535
    Accumulated deficit                 (4,385,541)   (4,425,788)
    Total shareholders' deficit         (2,138,282)   (2,178,529)
    Total liabilities, redeemable
       Preferred stock and
       Stockholders' deficit             1,486,782     1,446,535

For the three months ended
    March 31, 2004:

    Depreciation and amortization          $29,460       $69,707
    Operating loss                         (25,301)      (65,548)
    Loss from continuing operations
       before income taxes                 (66,554)     (106,801)
    Loss from continuing operations
       before equity in unconsolidated
       entities and minority interest      (66,554)     (106,801)
    Net loss from continuing operations    (56,835)      (97,082)
    Net income (loss)                       35,365        (4,882)
    Net income (loss) to common
       shareholders                          2,935       (37,312)

Net cash used in operating activities      ($7,460)      ($7,460)

A full-text copy of RCN Corp.'s Amended First Quarter Fiscal 2004
Results is available at no cost at:

   http://sec.gov/Archives/edgar/data/1041858/000119312504141923/d10qa.htm


                  RCN Corporation and Subsidiaries
                       (Including non-Debtors)
          Unaudited Condensed Consolidated Balance Sheets
                        As of March 31, 2004
                           (In Thousands)

ASSETS

Current Assets:
Cash and temporary cash investments                     $19,559
Accounts receivable from related parties                 14,174
Accounts receivable for doubtful accounts                 4,386
Unbilled revenues                                         1,202
Interest receivable                                       1,366
Prepayments and other current assets                     31,709
Short-term restricted investments                       142,502
Current assets of discontinued operations                     -
                                                  --------------
Total current assets                                    254,898

Property, plant and equipment, net depreciation         844,907
Investments                                             208,440
Intangible assets                                         1,460
Goodwill, net                                             6,130
Long-term restricted investments                        100,000
Deferred charges and other assets                        30,700
Non-current assets of discontinued operations                 -
                                                  --------------
Total assets                                         $1,446,535
                                                  ==============

LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
Current maturities of long-term debt                 $1,579,981
Accounts payable                                         21,621
Accounts payable to related parties                       6,126
Advance billings and customer deposits                   26,522
Accrued exit costs                                       29,834
Accrued expenses                                        150,553
Current liabilities of discontinued operations                -
                                                  --------------
Total current liabilities                             1,814,637

Other deferred credits                                    5,686

Commitments and contingencies
    Redeemable preferred stock, Series A                346,538
    Redeemable preferred stock, Series B              1,458,203

Shareholders' deficit:
Preferred stock                                               -
Class A Common stock                                    112,163
Class B Common stock                                     11,425
Additional paid-in-capital                            2,151,344
Cumulative translation adjustments                      (17,288)
Unearned compensation expense                              (263)
Unrealized appreciation on investments                      188
Treasury stock                                          (10,310)
Accumulated deficit                                  (4,425,788)
                                                  --------------
Total shareholders' deficit                          (2,178,529)
                                                  --------------
Total liabilities and shareholders' deficit          $1,446,535
                                                  ==============


                  RCN Corporation and Subsidiaries
                       (Including non-Debtors)
      Unaudited Condensed Consolidated Statement of Operations
               For three months ended March 31, 2004
                           (In Thousands)

Revenues                                               $121,260

Costs and expenses:
    Direct expenses                                      41,228
    Operating and selling                                76,615
    Non-cash stock based compensation                     1,080
    Impairments and other charges, net                   (1,822)
    Depreciation and amortization                        69,707
                                                  --------------
Operating loss                                          (65,548)

Investment income                                           926
Interest expense                                        (42,429)
Other income, net                                           250
                                                  --------------
Loss from continuing operations before taxes           (106,801)

Income tax provision                                          -
                                                  --------------
Loss from continuing operations before equity          (106,801)

Equity in income of unconsolidated entities               9,719
                                                  --------------
Net loss from continuing operations                     (97,082)

Discontinued operations
    Income from discontinued operations                  92,200
                                                  --------------
Net (loss) income                                       ($4,882)
                                                  ==============


                  RCN Corporation and Subsidiaries
      Unaudited Condensed Consolidated Statement of Cash Flows
               For three months ended March 31, 2004
                           (In Thousands)

Cash flows from operating activities:
    Net (loss) income                                    ($4,882)
    Income from discontinued operations                   (2,422)
    Gain on sale of discontinued operation               (89,778)
                                                  --------------
    Net loss from continuing operations                  (97,082)

Adjustments to reconcile net loss from
   continuing operations to net cash
   used in operating activities:

    Accretion of discounted debt                               -
    Amortization of financing costs                        2,321
    Non-cash stock based compensation expense              1,080
    Gain on sale of assets                                     -
    Depreciation and amortization                         69,707
    Deferred income taxes, net                                 -
    Provision for losses on accounts receivable            2,335
    Equity in income of unconsolidated entities           (9,719)
    Impairments and special charges                       (1,822)
                                                  --------------
                                                         (33,180)
                                                  --------------
    Net change in working capital                         26,510
                                                  --------------
Net cash used in continuing operations                    (6,670)

Cash (used in) provided by
   discontinued operations                                  (790)
                                                  --------------
Net cash used in operating activities                     (7,460)

Cash flows from investing activities:
    Additions to property, plant and equipment           (12,283)
    Short-term investments                                     -
    Proceeds from sale of assets                               -
    Proceeds from sale of discontinued operations        120,203
    Discontinued operations                                 (402)
    Increase in investments                              (24,178)
    Other                                                      -
                                                  --------------
Net cash provided by (used in)
   investing activities                                   83,340

Cash flows from financing activities:
    Repayment of long-term debt                          (74,290)
    Repayment of capital lease obligations                  (426)
    Payments made for debt financing costs                     -
                                                  --------------
Net cash used in financing activities                    (74,716)
                                                  --------------
Net increase in cash and
   temporary cash investments                              1,164
                                                  --------------
Cash and temporary cash investments
    at beginning of period                                18,395
                                                  --------------
Cash and temporary cash investments
    at end of period                                     $19,559
                                                  ==============


RCN CORP: Reports $4.4 Million Net Loss in June 2004
----------------------------------------------------

            RCN Corporation, Hot Spots Production, Inc.,
    RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                      (Debtors-in-Possession)
      Unaudited Condensed Combined Consolidated Balance Sheets
                        As of June 30, 2004
                           (In Thousands)

ASSETS

Current Assets:
Cash and temporary cash investments                         $775
Other current assets                                         753
                                                  --------------
Total current assets                                       1,528

Accounts receivable from non-combined subsidiaries       913,390
Investment in and advances to
    non-combined subsidiaries                          1,511,823
Deferred charges and other assets                        250,929
                                                  --------------
Total assets                                          $2,677,670
                                                  ==============

LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
Current maturities of long-term debt                    $451,538
Accounts payable and accrued expenses                      5,715
                                                  --------------
Total current liabilities                                457,253
Accounts payable to non-combined subsidiaries          1,476,150
Prepetition liabilities subject to compromise
Liabilities subject to compromise                      1,190,586
Series A redeemable Preferred stock                      350,362
Series B redeemable Preferred stock                    1,474,850

Shareholders' deficit:
Common stock                                             123,588
Additional paid in capital                             2,152,630
Cumulative translation adjustment                        (17,288)
Unearned compensation expense                               (176)
Treasury stock                                           (10,166)
Unrealized appreciation on investments                      (193)
Accumulated deficit                                   (4,519,926)
                                                  --------------
Total shareholders' deficit                           (2,271,596)
                                                  --------------
Total liabilities and shareholders' deficit           $2,677,670
                                                  ==============


            RCN Corporation, Hot Spots Production, Inc.,
    RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                      (Debtors-in-Possession)
        Unaudited Condensed Combined Statement of Operations
          For the period May 27, 2004 through June 30, 2004
                           (In Thousands)


Revenues                                                       -
Costs and expenses                                           $36
Non-cash stock based compensation                            506
Reorganization items                                       2,744
                                                  --------------
Operating loss                                            (3,286)

Interest expense                                           3,447
Other expense                                                 47
                                                  --------------
Loss before income taxes                                  (6,747)
(Benefit) provision for income taxes                           -
Equity in the income of non-combined subsidiaries          2,101
                                                  --------------
Net loss                                                 ($4,646)
                                                  ==============


            RCN Corporation, Hot Spots Production, Inc.,
    RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                      (Debtors-in-Possession)
       Unaudited Condensed Combined Statement of Cash Flows
          For the period May 27, 2004 through June 30, 2004
                           (In Thousands)

Cash flows from operating activities:
    Net loss                                             ($4,646)
    Non-cash stock based compensation                        506
    Equity income of non-combined subsidiaries            (2,101)
    Amortization of financing costs                          537
                                                  --------------
Net cash (used in) operating activities                  (11,055)

Cash flows from financing activities:
    Payment of long-term debt                            (10,256)
    Intercompany receipts from
       non-combined subsidiaries, net                     15,960
                                                  --------------
Net cash provided by financing activities                  5,704
                                                  --------------
Net increase (decrease) in cash and
   temporary cash investments                                  -
                                                  --------------
Beginning cash & temporary cash investments                  775
                                                  --------------
Ending cash & temporary cash investments                    $775
                                                  ==============


ROUGE INDUSTRIES: Files June 2004 Monthly Operating Report
----------------------------------------------------------
On August 11, 2004, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed its June 2004 monthly operating report
with the United States Bankruptcy Court for the District of
Delaware in Wilmington.

Substantially all of the Debtors' assets were acquired on January
30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement. The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004. As of June 30, 2004, the Company saw an ending cash balance
of $101,830,400.

A full-text copy of Rouge Industries, Inc.'s June 2004 Monthly
Operating Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/918577/000095012304009849/y00683exv99w1.htm


Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


TWINLAB CORPORATION: Files July 2004 Monthly Operating Report
-------------------------------------------------------------
On August 16, 2004, Twinlab Corporation (n/k/a TL Administration  
Corporation ), Twin Laboratories Inc. (n/k/a TL Administration  
Inc.) and Twin Laboratories (UK) Ltd. (n/k/a TL Administration  
(UK) Ltd.) filed its Monthly Operating Reports for the month ended  
July 31, 2004 with the Securities and Exchange Commission.

At July 31, 2004, Twinlab Corporation (n/k/a TL Administration  
Corporation) reports that it has no independent means of
generating revenue due to its non-operation.  As a holding
company, Twinlab's internal sources of funds to meet its cash
needs, including the payment of expenses, are dividends and other
permitted payments from its direct and indirect subsidiaries.

Full-text copies of the Debtors' July 2004 Monthly Operating
Report is available at no charge at:  

   http://www.sec.gov/Archives/edgar/data/1015868/000095012304009813/0000950123-04-009813-index.htm


On September 4, 2003, Twinlab Corporation, Twin Laboratories Inc.  
and Twin Laboratories (UK) Ltd. commenced voluntary cases under  
chapter 11 of title 11 of the United States Code in the United  
States Bankruptcy Court for the Southern District of New York.  
These chapter 11 cases are being jointly administered under  
chapter 11 case number 03-15564 (CB) and are pending before the  
Honorable Cornelius Blackshear.

In addition, on September 4, 2003, the Companies entered into that  
certain asset purchase agreement with IdeaSphere, Inc. of Grand  
Rapids, Michigan, pursuant to which the Companies sold  
substantially all of their assets. The sale closed on December 19,  
2003, effective as of December 9, 2003. In connection with the  
sale, the Debtors obtained an order from the Court authorizing  
them to change their names. Twinlab Corporation changed its name  
to TL Administration Corporation, Twin Laboratories Inc. changed  
its name to TL Administration Inc. and Twin Laboratories (UK) Ltd.  
changed its name to TL Administration (UK) Ltd.

The Debtors continue to operate as debtors-in-possession pursuant  
to sections 1107(a) and 1108 of the Bankruptcy Code.


WORLD ACCESS: Releases June 2004 Monthly Operating Reports
----------------------------------------------------------
World Access, Inc., and its WA Telcom Products Co., Inc., World   
Access Telecommunications Group, Inc., FaciliCom International,   
L.L.C. and WorldxChange Communications, Inc., subsidiaries   
released Monthly Operating Reports this week for June 2004.

The companies caution that the information in these reports is  
unaudited and has not been reviewed by an independent accountant.   

The Monthly Operating Reports for the month ending June 30, 2004  
show:
                           
                                 Beginning Cash     Ending Cash  
                                     Balance         Balance   
Debtor Entity                   --------------    --------------   
-------------                     
World Access, Inc.              $13,683,836.80     12,627,416.24
  
WA Telcom Products               
    Co., Inc.                     10,102,974.52     10,110,394.12   
  
World Access Telecommunications  
    Group, Inc.                    7,724,771.95      7,740,884.61
  
FaciliCom International, L.L.C.  14,427,677.50     14,427,677.50   
  
WorldxChange Communications.      3,295,173.70      3,295,749.70  
  
  
Full-text copies of the Debtors' Monthly Operating Reports are   
available at no charge at:  
  
World Access Inc.:  
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w1.txt      
  
WA Telcom Products Co., Inc.:  
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w2.txt  
  
World Access Telecommunications Group, Inc.:  
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w3.txt
       
Facilicom International, L.L.C.:  
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w4.txt  
  
WorldxChange Communications:  
  http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w5.txt    
  
  
On April 24, 2001, World Access, Inc., and its debtor-affiliates   
filed for chapter 11 protection in the United States Bankruptcy   
Court for the Northern District of Illinois, Eastern Division   
(Bankr. Case No. 01-14633-SPS).  

                            *********

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
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged. Send announcements to
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Each Friday's edition of the TCR includes a review about a book of
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available at your local bookstore or through Amazon.com. Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

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. Yvonne L.  
Metzler, Emi Rose S.R. Parcon, Bernadette C. de Roda, Rizande B.  
Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie  
Sabijon and Peter A. Chapman, Editors.

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

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