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

                             E U R O P E

                 Thursday, August 1, 2002, Vol. 3, No. 151


                              Headlines

F R A N C E

ALCATEL: Extends Product Line, Includes Cost-effective Solution
FRANCE TELECOM: Agrees in Principle With MobilCom's Banks
FRANCE TELECOM: Offers EUR442 MM for Notes on STM Shares
VIVENDI UNIVERSAL: Demerger Attracts Bankers for Break-up Fees
VIVENDI UNIVERSAL: May Shed 230 Jobs in Paris and NY Offices

VIVENDI UNIVERSAL: Holzer & Holzer Announces Class Action in NY


G E R M A N Y

FAIRCHILD DORNIER: Talks Under Way on Russia-China Cooperation
KIRCHMEDIA: KirchMedia Bidders Set to Submit Binding Offers
KIRCHMEDIA: Spiegel Plans to Pull Out of Springer Consortium
MOBILCOM AG: Secures Extension Agreement for UMTS Refinancing
PIXELNET AG: Draws Interest From Seven Potential Investors


N E T H E R L A N D S

KPN NV: Trustees Agree to Sell KPNQwest's Eurorings
VERSATEL TELECOM: Introduces Wireless ADSL Solution


P O L A N D

ELEKTRIM SA: Executes EUR 233MM Restructuring With Bondholders
NETIA HOLDINGS: ADS Ratio Changes for Telecom Network Operator


S P A I N

MAJORICA: Espanol Reaches Agreement With SCH On Majorica Buy


S W E D E N

ICON MEDIALAB: Reports Second Quarter 2002 Financial Results
LM ERICSSON: Japanese Operator YOZAN Chooses Ericsson's WLAN


U N I T E D   K I N G D O M

ARC INTERNATIONAL: Interim Six-Month Results Ending June 30
ARC INTERNATIONAL: Parners With Denali Software on IT Solutions
ARC INTERNATIONAL: Signs Software Agreement With Metrowerks
ARC INTERNATIONAL: Expands Design Network in U.S., China, Korea
ARC INTERNATIONAL: Announces SoC IP Alliance With Hynix

BOOKHAM TECHNOLOGY: Reports Q2 Interim Results Ending June 30
CELLTECH GROUP: Creates Specialist Gastroenterology Salesforce
CELLTECH GROUP: Announces CDP 571 Phase III Studies Results
NTL, INCORPORATED: Secures Broadband Lead With 37% Market Share
RAILTRACK PLC: Hines Forms Joint Venture With Railtrack

WORLDCOM, INC: U.S. Trustee Forms Creditors' Committee
WORLDCOM, INC.: Will Continue Telecom and Internet Services

     -  -  -  -  -  -  -  -

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F R A N C E
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ALCATEL: Extends Product Line, Includes Cost-effective Solution
---------------------------------------------------------------
Alcatel - www.alcatel.com -- announced Tuesday the addition of a
48-port convergence-ready multilayer switch to the Alcatel
OmniStack product line that provides inexpensive connectivity,
while providing intelligence, reliability and scalability at the
edge of the network.

The Alcatel OmniStack 6148 offers layer-3 classification based on
DiffServ (Differentiated Services) prioritization and QoS
(Quality of Service), in addition to layer-2 classification based
on 802.1p and 802.1q.  This added intelligence provides network
managers with greater flexibility and control over the network as
they can more easily manage and prioritize traffic.  In networks
that are integrating voice or video along with data, the Alcatel
OmniStack 6148 can give delay sensitive traffic priority right up
to the edge of the enterprise network.

"We are using the OmniStack 6148 in our network for support of IP
telephony and wireless applications," said Don Otto, director of
computer and networking services, Ridley School District.  "We
especially like the high port density offered by the OmniStack
6148, which is important when you have limited space.
Additionally, the OmniStack 6148 offers the same web interface as
existing products, such as the OmniStack 6024 and 6124, which
means that there is no further training required for its
implementation."

For increased versatility and investment protection, the Alcatel
OmniStack 6148 can be combined with the OmniStack 6124 to stack
up to 172 ports per stack.   Individual switches are connected
together using 4 Gbps stacking connections, which ensures high
performance for the entire stack.

"The Alcatel OmniStack 6148 brings our customers a new, low cost,
stackable solution with 48 ports for the price conscious
consumer," said Joelle Gauthier, Alcatel vice president of
network infrastructure marketing.

"Additionally, the Alcatel OmniStack 6148 is fully interoperable
with earlier versions of the OmniStack product line, including
the OmniStack 6124, the 24-port model, released earlier this
year."

The Alcatel OmniStack 6148 supports port-based VLANs (virtual
LANs) for network segmentation without the use of routers.  The
VLAN capabilities can also be combined with layer-2 and layer-3
QoS to give priority to certain groups of power users.   Through
the use of VLANs, network managers can segment traffic, increase
overall security of the network, and prevent undesirable traffic
from affecting the network, as is the case with broadcast
flooding.   For networks with multicast traffic, the Alcatel
OmniStack 6148 supports IGMP snooping, which reduces the impact
of multicast traffic on stations that are not part of a multicast
group.

The Alcatel OmniStack 6148 provides full SNMP support, RMON
support, and web-based management.   The  Alcatel OmniStack 6148
can also be integrated into   an  enterprise  wide  network
management  platform  with  Alcatel's OmniVista network
management suite.

Pricing and Availability

The Alcatel OmniStack 6148 is available worldwide this month.
Pricing starts at USD2,595.

Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.

Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams.

With sales of USD22 billion (EURO 25 billion) in 2001 and 99,000
employees, Alcatel operates in more than 130 countries.


FRANCE TELECOM: Agrees in Principle With MobilCom's Banks
---------------------------------------------------------
France Telecom confirmed Wednesday that it has reached an
agreement in principle, in form of a Memorandum of Understanding,
with the Bank Syndicate lead by Deutsche Bank, Merrill Lynch, ABN
Amro and Societe Generale, which granted MobilCom a credit
facility of approximately 4.7 billion euros, maturing on July 31,
2002.

A final agreement is subject to the completion of a number of
conditions precedent, to be fulfilled to the satisfaction of
France Telecom in its step-by-step process of resolution of the
MobilCom issue.

These conditions precedent will have to be fulfilled before
September, 30, 2002. There is no certainty at this stage that the
situation of MobilCom can be resolved to the satisfaction of
France Telecom.

Subject to the aforementioned conditions precedent, the Bank
Syndicate have agreed in principle to sell their MobilCom's loans
to France Telecom in exchange for a Subordinated Undated
Convertible Security issued by France Telecom, which will have a
nominal amount of approximately EUR 4.7 billion and no maturity,
as well as no cash redemption.

It will be subordinated to all other liabilities of France
Telecom and convertible into shares of France Telecom, at a
strike price of 47 euro per share.

This Security will be accounted for in France Telecom's balance
sheet as quasi equity.


FRANCE TELECOM: Offers EUR442 MM for Notes on STM Shares
--------------------------------------------------------
France Telecom - www.francetelecom.com  announced on Tuesday that
it has priced and finalized the placement to institutional
investors on a private placement basis outside of the United
States, Canada, Japan and Italy, EUR442.22 million of 6_ % notes
due August 2005 -- Stock Appreciation Income Linked Securities --
mandatorily exchangeable into existing common shares of
STMicroelectronics.

The number of STMicroelectronics common shares that France
Telecom will deliver to the holders of the Notes is a maximum of
26.42 million shares and a minimum of 20.13 million shares
depending on the price of STMicroelectronics shares at maturity.
In the event that the share price of STMicroelectronics is above
EUR 21.97 at maturity, France Telecom will have 6.3 million
shares available to be disposed of in the market, which will
provide additional proceeds.

The final terms of the Notes are:

Size: EUR442.22 million

Maturity: August 6, 2005 (3 years)

Coupon: 6_%

Exchange Period: From January 2, 2004 until the seventh trading
day before Maturity

Issue Price per Note: EUR20.92
Exchange Ratio:

prior to maturity: 0.9524 Shares for each Note, at maturity if,

- the Maturity Price per Share (defined below) is equal to or
less than EUR 16.74, 1.25 Shares will be delivered for each Note
(the "Maximum Exchange Ratio")

- the Maturity Price per Share (defined below) is equal to or
greater EUR21.97, 0.9524 Shares for each Note (the "Minimum
Exchange Ratio");

- the Maturity Price per Share is contained between EUR16.74 and
EUR21.97, the number of Shares for each Note will equal the ratio
of EUR20.92 (Issue Price per Note) to the Maturity Price.
The Maturity Price equals the average of the closing prices of
the Shares on Euronext Paris on the fifteen (15) consecutive
trading days ending on the third trading day immediately prior to
the Maturity Date.
The gross proceeds of the offering will amount to EUR 442.22
million for France Telecom which will be mandatorily repaid in
STMicroelectronics shares.

As previously announced on December 11, 2001, this transaction
enables France Telecom to finalize the sale of its remaining
indirect interest in STMicroelectronics and is therefore
contributing to its debt reduction program.

The Notes are redeemable for up to 26,423,404 shares,
representing France Telecom's remaining indirect interest in
STMicroelectronics .

STMicroelectronics Holding II B.V. has agreed, subject to certain
exceptions, not to sell any further shares of STMicroelectronics
for a period of 60 days from pricing. STMicroelectronics'
principal shareholder is STMicroelectronics Holding II B.V.,
which is indirectly controlled 50% by FT1CI (a company consisting
of two French shareholders, Areva and France Telecom), and 50% by
Finmeccanica, the largest aerospace and defense company in Italy.

France Telecom is one of the world's leading telecommunications
carriers, with more than 107 million customers on the five
continents (220 countries and territories) and consolidated
operating revenues of 43 billion Euro for 2001 (22.5 billion Euro
at June 30, 2002).

Through its major international brands, including Orange,
Wanadoo, Equant and GlobeCast, France Telecom provides
businesses, consumers and other carriers with a complete
portfolio of solutions that spans local, long-distance and
international telephony, wireless, Internet, multimedia, data,
broadcast and cable TV services.

France Telecom is the second-largest wireless operator and
Internet access provider in Europe, and a world leader in
telecommunications solutions for multinational corporations.
France Telecom is listed on the Paris and New York stock
exchanges.


VIVENDI UNIVERSAL: Demerger Attracts Bankers for Break-up Fees
--------------------------------------------------------------
Bankers have started circling around Vivendi in the hope of
getting sizeable break-up fees, following news that troubled
media company will undergo a demerger, a report from the Wall
Street Journal said.

The paper reported that bankers were active when Vivendi spend
USD100 billion to acquire various businesses.

Salomon Smith Barney, Deutsche Bank AG and Goldman Sachs Group
Inc. are some of the companies who will participate in the
divestment.

Vivendi is pressured to decide on selling some assets after the
departure of its chief executive Jean-Marie Messier. The
company's generated interest shows the steep downturn in business
consolidations over the last few years, the paper said.


VIVENDI UNIVERSAL: May Shed 230 Jobs in Paris and NY Offices
------------------------------------------------------------
Vivendi Universal SA is likely cutting 230 0f its 570 jobs in its
Paris and New York offices, as the media conglomerate moves to
right itself amid a cash crunch, a report from Le Figaro and the
Financial Times said.

Last week, Vivendi notified its corporate staff regarding the
possible job cuts. The shedding of its workforce is a
recommendation of Constantin Group, a consultant hired by the
company, the papers said.

The recommendations come after a review of corporate efficiency
that was launched this spring, not by new Vivendi Chairman Jean-
Rene Fourtou, but by his predecessor, Jean-Marie Messier, the
papers said.

The company however, is still undecided regarding how closely it
will follow the advice of the consultants.

Vivendi has already in recent months cut about a dozen jobs in
New York.

So far, the new Vivendi management hasn't ordered any job cuts or
spending reductions at the company's various divisions, which
include record company Universal Music Group and movie studio
Universal Pictures, the paper said.

Vivendi also stresses, however, that it does not intend to close
its office in New York and that more details will be announced to
staff as soon as possible.


VIVENDI UNIVERSAL: Holzer & Holzer Announces Class Action in NY
---------------------------------------------------------------
Holzer & Holzer announced Tuesday that it has filed a class
action in the United States District Court for the Central
District of California on behalf of purchasers of Vivendi
Universal, S.A. securities between April 23, 2001 and July 2,
2002, inclusive.

A copy of the complaint filed is available from the Court or by
contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by
sending an e-mail to michaelfisteljr@msn.com.

The complaint alleges that defendants violated the federal
securities laws by issuing materially false and misleading
statements throughout the Class Period that had the effect of
artificially inflating the market price of the Company's
securities.

Specifically, the complaint alleges that prior to and during the
Class Period, Mr. Messier took Vivendi on an acquisition binge
that resulted in the Company amassing approximately USD18 billion
in debt as he turned the Company from a water concern into an
entertainment powerhouse.

The complaint alleges that under Mr. Messier's leadership,
Vivendi completed a USD30 billion buyout of Canada's Seagram and
a USD10.3 billion purchase of USA Networks Inc. The complaint
further alleges that Mr. Messier orchestrated a scheme to conceal
the severity of Vivendi's liquidity problems stemming from the
massive debt load incurred as a result of these, and other,
transactions.

The complaint alleges that before his ouster by Vivendi's Board,
Mr. Messier caused the Company to issue several press releases
that falsely stated that Vivendi did not face an immediate and
severe cash shortage that threatened the Company's viability
going forward absent an asset fire sale.

The complaint alleges that after Vivendi's Board dislodged Mr.
Messier, the Company's new management disclosed the severity of
the crisis and that the Company would have to secure immediately
both bridge and long-term financing or default on its largest
credit obligations. As alleged in the Complaint, Mr. Messier
failed to disclose the true contours of Vivendi's cash crisis and
his affirmative misrepresentations to the contrary have given
rise to an investigation by French authorities.

If one has bought the securities of Vivendi during the Class
Period, no later than September 16, 2002, one may move the Court
to serve as a lead plaintiff in the action.

In order to serve as a lead plaintiff, however, one must meet
certain legal requirements. For questions about rights with
respect to this lawsuit, contact Holzer & Holzer, Michael I.
Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via
e-mail to michaelfisteljr@msn.com.

Holzer & Holzer has substantial experience representing investors
in securities fraud class action lawsuits such as this. Holzer &
Holzer is located in Atlanta, Georgia, USA but represents
investors in securities class action lawsuits throughout the
nation.



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G E R M A N Y
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FAIRCHILD DORNIER: Talks Under Way on Russia-China Cooperation
--------------------------------------------------------------
Insolvent German aircraft maker, Fairchild Dornier GmbH, is said
to be in search of co-operation with companies in Russia or China
in hopes to stay in business, a report from Frankfurter
Allgemeine Zeitung and Financial Times said.

Among the possible co-operation partners are Tupolev and the
military aircraft specialist Sukhoi, as well as an aluminium
company, the dailies said.

Talks are reported also to have taken place in China.

Fairchild Dornier opened insolvency proceedings at the start of
June. Its hopes collapsed when Canadian aircraft maker Bombardier
Inc. abandoned talks on taking over its 728/928 program for a 70-
seater regional jet, which is thought to have significantly
contributed to the company's insolvency. The German company had
already invested EUR1 billion in the program and this coupled
with a low turnout on
anticipated sales led to further financial woes.

Fairchild then pinned its hopes on Alenia for the 728/928
project. But Alenia later backed out of a possible deal because
it couldn't takeover the project on its own and had not found a
partner.

Co-operation on the 728/928 project, which has not yet been
completed, was among matters discussed at last week's Russo-
German economic meeting in Moscow, the papers said.


KIRCHMEDIA: KirchMedia Bidders Set to Submit Binding Offers
-----------------------------------------------------------
Bidders for KirchMedia are preparing to reveal their final offers
on Wednesday, valuing the assets of the insolvent TV arm of Kirch
Gruppe at EUR2-2.4 billion, a report from Financial Times said.

The final offer deadline is Wednesday night. Afterwards the last
round of due diligence is planned. The deal should close by the
end of August, the paper said.

At least four competing teams have made indicative offers for the
KirchMedia assets, dominated by a 52.5 per cent stake in
ProSiebenSAT.1, Germany's largest free-to-air broadcaster.

The disposal, which includes KirchMedia's film and sports rights,
has joined Axel Springer and Heinrich Bauer, the German
publishers, in a bidding effort.

Other contenders include French broadcaster TF1 and Haim Saban,
the US television entrepreneur behind the Power Rangers series.
Also, Saban Capital Group was said to be planning a cash offer of
more than USD2bn. Commerzbank, one of Kirch's largest creditors,
is thought to be considering a binding offer in conjunction with
Columbia Tristar, the U.S. movie studio owned by Sony of Japan.

After the binding offers are received Wednesday, creditors are
expected to examine and discuss them before the week ends. After
which, a final round of so-called confirmatory due diligence will
follow. At this time, short-listed bidders will gain access to
confidential financial data and trading information the assets,
the paper said.


KIRCHMEDIA: Spiegel Plans to Pull Out of Springer Consortium
------------------------------------------------------------
Spiegel Verlag, a member of the consortium formed by Axel
Springer Verlag bidding for the insolvent KirchMedia is mulling
over the possibility of pulling out of the group, following
opposition from its employees, a report from AFX News said.

It was only last week that Axel Springer announced that it has
won HVB AG and Spiegel Verlag as part of the consortium.

However, employees of Spiegel Mitarbeiter KG has made clear their
resistance to Spiegel's plan of joining the consortium, the news
oufit said.

The employees own half of the Spiegel Verlag, which publishes the
weekly Spiegel magazine.

Chairman of Spiegel Mitarbeiter KG Thomas Darnstaedt was reported
to have commented that there is no reason to "get involved with
the biggest insolvency in the modern history of Germany," the
news outfit reported.

Mr. Darnstaedt further said that Spiegel, famed for its left-wing
investigative journalism, would not fit in a venture with the
more mass-market publishers Bauer and Axel Springer, AFX said.


MOBILCOM AG: Secures Extension Agreement for UMTS Refinancing
-------------------------------------------------------------
MobilCom AG and the lending bank consortium under the guidance of
ABN Amro Bank, Deutsche Bank AG London, Societe Generale and
Merrill Lynch have agreed to an extension agreement for the
refinancing of the UMTS loans amounting to EUR 4.7 billion, which
would have been due on 31 July 2002.

This is in part subject to the condition subsequent that a
memorandum of understanding between France Telecom and the bank
consortium remains effective. The UMTS loan (Senior Interim
Facility) will thus become due on 30 September 2002.

The extension agreement will allow the parties to wrap up the
refinancing within this period.


PIXELNET AG: Draws Interest From Seven Potential Investors
----------------------------------------------------------
Seven investors have shown an interest in PixelNet AG within the
framework of the ongoing insolvency proceedings, the company said
Wednesday.

Exploratory talks with potential investors, both national and
international, are taking place at this time. Interested parties
may make an official offer to the temporary trustee up until
August 10, 2002.

At the same time, a rough analysis is being conducted to
implement the first cost-cutting measures. The number of
employees, for example, is being further reduced and a number of
operating costs will be reduced by measures such as the closing
of offices.



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KPN NV: Trustees Agree to Sell KPNQwest's Eurorings
---------------------------------------------------
KPN announced Monday that the company and the administrators of
KPNQwest NV have agreed upon the sale of the Dutch-owned part of
the KPNQwest Eurorings, as well as its Netwerk Operating Centre
in the Hague.

The discussion with the banks and the local administrators with
regard to the bid for the other parts of the Eurorings in
Germany, Belgium and the United Kingdom will continue.


VERSATEL TELECOM: Introduces Wireless ADSL Solution
---------------------------------------------------
Versatel Nederland B.V. and Toshiba together introduce an all-
inclusive wireless ADSL Internet solution for the business
market, the Dutch group announced Tuesday.

This bundled solution offers small and medium businesses a
broadband ADSL Internet connection from Versatel that is geared
to the advantages of the new Wireless Broadband Gateway (WBG)
1200A of Toshiba.

Smart entrepreneurs will benefit from wireless access to
broadband Internet and to their own business network from any
office location.

Toshiba, a leading supplier of wireless solutions, introduces the
Wireless Broadband Gateway 1200A; a complete wireless network
solution in one box. It is the first solution on the market that
contains a wireless LAN, an integrated ADSL-modem and router
functionality with firewall and VPN facility.

Thanks to Virtual Private Network (VPN) support, mobile
professionals can access their corporate network in a secure
environment. Therefore the Toshiba WBG 1200A offers the SME
market a new complete freedom in communication services.

Business Internet from Versatel allows entrepreneurs 24 hour-a-
day fixed always-on broadband ADSL Internet connection via the
regular (analogue) telephone line. SME entrepreneurs will benefit
from reliable and unlimited Internet access for a fixed monthly
fee.

Entrepreneurs will not only save money, but also will be able to
surf the Internet, download information and send e-mails.
Versatel's Business Internet offers Internet access at a fixed
fee starting from 768/256 kbps in several speed varieties.

Toshiba Wireless Broadband Gateway Applications

The WBG 1200A is widely usable and suitable for multiple user
groups. The growing group of home and teleworkers can use the WBG
as a gateway to the business network, using the broadband ADSL-
connection, keeping freedom of movement indoors via the WiFi
access point that is built-in.

Also smaller companies, remote workers and home offices can use
the WBG 1200A as a standard Internet gateway or access point. In
addition, the WBG can be used as a temporary gateway with
Internet access because of its fast assembly and easy set-up: for
example exhibitions, training locations or temporary offices.

Finally, the WBG can also be used in the so-called `hotspot'
market as a gateway to a public network. This means that hotels,
managers of public spaces, airports or Internet caf,s are able to
give a temporary guest or a passer-by fast and easy Internet
access, possibly extended with paid services or access to their
own corporate network via VPN (Virtual Private Network)
connection.

Technical aspects

The WBG 1200A is a wireless gateway with router and bridge
functionality.

Through the built-in ADSL modem Versatel will provide a broadband
Internet connection via an analogue telephone line. The access is
twofold: Wireless LAN (IEEE 802.11b of WiFi) takes care of the
wireless access and the 4 available ethernet ports (RJ45) support
cable connections.

The ADSL component supports these standards: G.992.1/G.DMT,
G.992.2/G.Lite en T1.413 Issue 2. To secure the wireless data
traffic the WGB 1200A allows 128-bits encryption in accordance
with the WEP standard (Wired Equivalent Privacy). The built-in
firewall, NAT and VPN support, in addition to the access control
with password security (at 2 levels) create an optimal secure
environment for the WBG.

Roaming between different networks

ConfigFree is a software application that is developed by
Toshiba, which makes it possible to switch automatically from
(wireless) network, without manually changing the settings. In
this way the mobile user often may connect to different networks
(at the office, at home, via a hotspot on the airport, in a hotel
and in other offices during business trips).

The Toshiba ConfigFree software, that is delivered with the WBG
1200A, can change the settings of the computers that are
connected to the network, which makes roaming between the
different networks a lot easier.

The Toshiba Wireless Broadband Gateway 1200A stands out for its
user-friendliness; the state of the art communication functions
can be used optimally. Through the fully integrated wireless LAN
and ADSL modem in one box and through the support of the
important industry standards, it is a ideal solution for every
wireless surrounding.

With the integrated ConfigFree software Toshiba completes the
package, so that mobile users can switch both easily as well as
wireless from network to (wireless) network.

Prices and availability

The recommended retail price for the Wireless Broadband Gateway
1200A is ? 369.00 excl. BTW (? 439.00 incl. BTW) and will be
available from the third week in July 2002. More information is
available via Versatel and Toshiba

About Toshiba

Toshiba is world's largest supplier of mobile solutions for the
business and consumer market. Furthermore, this originally
Japanese company, offers network servers and desktop computers to
large enterprises, the SME market, educational institutes and PC-
prive projects.

The parent company, Toshiba Cooperation develops information and
communications systems, electronic components and consumer
electronics for various markets.

The use of these extensive capacities has earned the company a
place as innovator of advanced components, products and systems.
Worldwide Toshiba has 176.000 employees and a revenue of over 40
billion US$ (2001) per annum.

Versatel Nederland, part of Versatel Telecom International N.V.,
is based in Amsterdam. The company is a competitive
telecommunications network operator and a leading alternative to
the former monopoly telecommunications carriers in our target
market of the Benelux and Northwest Germany.

Founded in October 1995, the Company holds full
telecommunications licenses in The Netherlands, Belgium and
Germany and has over 79,000 business customers and 1,267
employees.

Versatel operates a facilities-based local access broadband
network that uses the latest network technologies to provide
business customers with high bandwidth voice, data and Internet
services. Versatel is a publicly traded company on Euronext
Amsterdam (symbol "VRSA"). News and information are available at
http://www.versatel.com.

Contact Information:

Versatel Nederland B.V.
AJ Sauer
Manager
Investor Relations and Corporate Development
Telephone: +31-20-750-1231
Email: aj.sauer@versatel.nl

Toshiba Information Systems Benelux
Contact: Martin Jansen, product manager
Telephone: +31 (0)10 288 23 62
Email: martin.jansen@toshiba.nl
Website: www.toshiba.nl



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ELEKTRIM SA: Executes EUR 233MM Restructuring With Bondholders
--------------------------------------------------------------
The Management Board of Elektrim S.A. announced Wednesday that on
July 28, 2002, it executed a restructuring agreement with
bondholders representing approximately EUR 233 million aggregate
principal amount of Elektrim's 3.75% euro-linked bonds due 2004.

Pursuant to the agreement, Elektrim S.A. agreed to certain
operating restrictions in exchange for the bondholders'
commitment to vote in favor of the proposed restructuring of
bonds at the meeting of bondholders to be held on July 31, 2002
or any adjournment thereof.

The bondholders also agreed to certain transfer restrictions and
to forbear from enforcing or directing the enforcement of their
rights and to refraining from commencing, re-commencing or
soliciting the commencement of bankruptcy proceedings against
Elektrim S.A.

With respect to its operating restrictions, Elektrim S.A. agreed
that it and its controlled subsidiaries, except in certain
circumstances, will not take certain actions including

(1) disposing of the shares or material assets of companies
whose  shares are to be pledged to the bondholders under
the restructured bonds;
(2) incurring or assuming additional debt;
(3) creating encumbrances or liens or grant security interests
over its material assets or future revenues;
(4) declaring or paying dividends or distributions in respect
of its share capital;
(5) depositing certain amounts with any person or entity that
would have a lien or right of set off or a submission to
execution; or
(6) paying more than an aggregate amount of Euro 7.5 million
to other creditors prior to making the initial
approximately Euro 100 million payment to bondholders.

Both Elektrim S.A. and the bondholders (through an instruction to
the Trustee) have agreed to withdraw their appeals to the
termination of the composition proceedings.

The bondholders have also agreed to instruct the Trustee to
suspend and refrain from enforcing its other legal proceedings
against Elektrim S.A.

The restrictions on Elektrim's operations terminate upon the
earliest of (i) the scheduled date for BRE Bank SA to purchase
Elektrim's Class B bonds (ii) a date one month after the
composition proceedings have been irrevocably terminated or (iii)
the date of a non-appealable ruling opening a bankruptcy
proceeding.

All other obligations of both parties under the agreement
terminate on the earliest of (i) the date when the proposed
resolutions to restructure the bonds are not passed and approved
at a bondholders' meeting, (ii) the date when BRE Bank purchases
Elektrim's Class B bonds or (iii) September 20, 2002.

Other bondholders wishing to become party to this agreement may
accede to it.


NETIA HOLDINGS: ADS Ratio Changes for Telecom Network Operator
--------------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced Tuesday that,
as of the opening of trading on the Nasdaq on July 30, each of
Netia's American Depositary Shares represents four of its
Ordinary Shares.

Before July 30, Netia's ADS-to-Ordinary Shares ratio was one-to-
one. The change in the ADS-to-Ordinary Shares ratio has been
effected without charge to investors.

For the next 20 trading days, the ticker symbol for Netia
Holdings S.A. will be "NTIDQ." After expiration of these 20
trading days, the symbol will revert to NTIAQ.

Contact Information:

Netia, Warsaw
Anna Kuchnio
Investor Relations
Telephone +48-22-330-2061



=========
S P A I N
=========


MAJORICA: Espanol Reaches Agreement With SCH On Majorica Buy
------------------------------------------------------------
Chairman of La Seda de Barcelona, Rafael Espanol has reached an
agreement with Santander Central Hispano over the acquisition of
the insolvent Spanish jewelry group Majorica, a report from
Expansion and the Financial Times said.

The Spanish jewelry group, which currently has accumulated debts
of EUR30 million, filed for insolvency proceeding in March this
year after registering high sales drops during the last two
financial years, the papers reported, the papers reported.

Desperate to stay afloat, Majorica had first planned to carry out
a capital increase in October 2002. Mr Espanol who leads a
consortium of several Spanish investors, has promised to keep
Majorica's headquarters in Manacor on Majorca.

Majorica was acquired by capital risk company Alpha Equity in
1998. Last October, management announced that it would reduce
Majorica's workforce via early retirement and redundancy schemes,
the papers said.

Santander Central Hispano is one of the main creditors of
Majorica.

La Seda de Barcelona is a chemicals and textiles group based in
Spain.



===========
S W E D E N
===========


ICON MEDIALAB: Reports Second Quarter 2002 Financial Results
------------------------------------------------------------
Icon Medialab International AB, the parent company of the e-
business and IT services company IconMedialab and Lost Boys (the
Group), reported Wednesday the financial results for its second
quarter 2002 ended June 30, 2002.

The Group improved its operating result from the first to the
second quarter, in particular in its operations in The
Netherlands, Germany, Italy, Spain, Portugal and Switzerland.

"Our Q2 results are an encouraging sign that we are moving
towards improved profitability," says Robert Pickering, CEO of
the Group.

"Earlier this year we implemented an aggressive action plan that
focused our resources and efforts on several key markets.
Given the continued weak market conditions, I am very pleased to
see our Q2 results show these decisions were accurate and
necessary".

Q2 Results

For the second quarter 2002 the Group reported net sales of SEK
169.3 million (Euro 18.4 million).

The reported net sales are 47 percent below the second quarter of
the prior year level, in particular due to the discontinuation of
operations in various geographies.

Continuing operations showed a decrease in sales from the first
to the second quarter, in large part due to a decline in net
sales in the United States.

The Group reported an operating loss, before goodwill
amortization and loss on discontinued operations of SEK 81.7
million (? 8.9 million). The operational result of the continued
operations is a loss of SEK 58.3 million (? 6.3 million).

The revenue decline in the United States had a significant
negative impact on this loss. The restructuring provision
recorded in the first quarter 2002 of SEK 89.5 million (? 9.7
million) will be sufficient for finalizing the Group's action
plan, and the execution of this plan is in line with the targets
set.

At the end of the second quarter the Group employed 839 staff.

The group's profit and loss and balance sheet financial
statements may be viewed at:
http://bankrupt.com/misc/iconmedia.pdf.


LM ERICSSON: Japanese Operator YOZAN Chooses Ericsson's WLAN
------------------------------------------------------------
Ericsson's operator WLAN solution has been selected by a new
Japanese service operator YOZAN for deployment in their trial of
a hybrid Pager/PHS/WLAN integrated Mobile Internet service, the
Swedish group announced Monday.

The system will use the Ericsson One-Time Password authentication
solution delivered over Yozan's pager network.

YOZAN's trial system will combine their digital Personal Handy
phone System (PHS) network with WLAN access at selected hot spots
throughout the system.

Ericsson's unique WLAN solution will generate one-time passwords
which can be sent to users over YOZAN's "Magic Mail" paging
system upon log in, securing the data access and billing.

The system targets consumers equipped with PDA's and/or laptops,
which incorporate PHS or WLAN access in a PC card format.

YOZAN will initially deploy a trial network in some areas of
Tokyo, to be in operation with about 1,000 trial subscribers in
September.

Ericsson will provide WLAN network equipment and design,
installation and technical support services for the project over
the trial period.

The Ericsson Mobile Operator WLAN system has been developed in
cooperation with the Swedish company Service Factory, a leading
supplier of WLAN service creation and provisioning systems.

Ericsson is shaping the future of Mobile and Broadband Internet
communication through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

Yozan was founded in 1990 and taken public in 2000. Following its
acquisition of a pager service from Japan Telecom in December
2001 and upcoming acquisition of a PHS (Personal Handy phone
System) company from Tokyo Telecommunication Network in August
2002, Yozan announced in April 2002 that they would start a
combined Pager/PHS/WLAN Mobile Internet service.

YOZAN -- http://www.yozan.co.jp-- intends to establish itself as
a service operator that offers comprehensive Mobile Internet
services with on-demand, optimized-selection services from the
user-perspective.



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


ARC INTERNATIONAL: Interim Six-Month Results Ending June 30
-----------------------------------------------------------
ARC International plc, a world leader in configurable System-On-
Chip (SoC) platform technologies, announces its unaudited
financial results for the second quarter and the six months ended
June 30, 2002.

Financial and Operational Highlights:

Second Quarter ended 30 June 2002
- Turnover up 10% to GBP3.0 million (Q1 2002: GBP2.7 million)
- Operating expenses down 4% to GBP7.2 million from Q1 and down
    27% from Q2 2001
- Net loss reduced by 9% to GBP4.9 million (Q1 2002: GBP5.4
    million)
- Cash burn reduced 25% to GBP3.8 million (Q12002: GBP5.2
    million)
- 8 design licences and 6 additional customers won for ARCtangent
    processor
- Software and development tools products shipped to more than 50
    customers in Q2
- Launched new product - USB Now.
- Signed an agreement with Metrowerks (an independently operating
    subsidiary of Motorola) which allows Metrowerks to market ARC
    software.
- Completed integration of ARC's three subsidiary companies into
    one single unified business

Six Months Ended June 30, 2002

- Turnover down 21% to GBP5.7 million (2001: GBP7.2 million)
- Significant cost reductions implemented, operating expenses
    down 24% to GBP14.7 million (2001: GBP19.3 million)
- Net loss reduced by 25% to GBP10.3 million (2001: GBP13.8
    million)
- Strong cash position; GBP111.7 million on balance sheet
- 16 design licences and 12 additional customers won in the first
    half 2002 for the ARCtangent processor
- New management team in place

Commenting on the results, Mike Gulett, Chief Executive Officer,
said:

"We have made significant improvements to the business during the
first half of the year and continue to work hard to drive the
company towards profitability. As a result of the new initiatives
announced in February this year, we have increased sales through
new license and customer agreements and reduced operating
expenses and headcount.

"Despite the continuing turbulence in our markets, we expect to
continue to achieve sequential growth in turnover. We also
believe that we can support significantly higher levels of
turnover with our current infrastructure. As a result, we believe
we will continue to make meaningful progress towards achieving
EBITDA breakeven."

Financial Review
Second Quarter ended 30th June 2002

Turnover Total turnover for the second quarter was GBP3.0
million, up 10% from the first quarter revenue of GBP2.7million
(Q201: GBP3.5million). Prior to currency translation, with
virtually all sales in USUSD, underlying turnover was up 13% over
Q102.

License income was 9% higher than the previous quarter at GBP2.4
million (Q1 02: GBP2.1 million). Maintenance and service income
was similar to that in the previous quarter at GBP0.5 million (Q1
2002: GBP0.5 million).

The number of designs being shipped by our customers and
contributing to royalties was unchanged from the previous quarter
with 11 customers shipping 14 products with total royalties at
GBP0.1 million (Q1 2002: GBP0.1 million)

Costs
Cost of sales decreased 15% to GBP0.3 million (Q1 2002: GBP0.4
million), which combined with the turnover increase, resulted in
an increased gross margin of 89% (Q1 2002: 85%).

Total operating expenses (excluding exceptional costs,
amortization of goodwill and depreciation) decreased by 4% to
GBP7.2 million (Q1 2002: GBP7.5 million).

The Company had 212 employees at 30 June 2002 compared with 227
at 31 March 2002. Research and development costs were slightly
higher at GBP3.1 million (Q1 2002: GBP3.0 million).

Research and development activities are being focused on the key
short and longer-term development projects that will contribute
to future growth. Sales and marketing costs decreased 6% to
GBP2.6 million (Q1 2002: GBP2.7 million) and general and
administration costs were down 11% at GBP1.2 million (Q1 2002:
GBP1.4 million) due to reductions in program and staff related
costs.

Interest

Interest income was unchanged at GBP1.1 million (Q1 2002: GBP1.1
million).

Net loss
The net loss decreased 9% to GBP 4.9 million (Q1 2002: GBP5.4
million) as a result of the 10% increase in turnover combined
with the 4% decrease in operating expenses.

Loss per share improved to (1.7)p from (1.9)p in Q1 2002. Cash
flow and balance sheet The net cash outflow from operations was
GBP4.8 million (Q1 2002 an outflow of GBP6.0 million).

Capital expenditure was GBP0.2 million. The movement in net funds
during the quarter was an outflow of GBP3.8 million. Net assets
at 30 June 2002 were GBP126.6 million, including net cash of
GBP111.7 million.


Six months ended June 30, 2002

Total turnover at GBP5.7 million was down 20% from the previous
year but up 34% sequentially (H1 2001: GBP7.2 million, H2 2001:
GBP4.3 million). Licence income was GBP4.5million (2001: GBP5.9
million). Maintenance and service income was GBP1.0 million
(2001: GBP1.1 million) and royalties were GBP0.2 million (2001:
GBP0.2 million).

Costs

Cost of sales was GBP0.7 million (2001: GBP0.9 million),
resulting in a gross margin of 87% (2001: 88%). Total operating
expenses (excluding exceptional costs, amortization of goodwill
and depreciation) decreased 24% to GBP14.7 million (2001: GBP19.3
million).

Total headcount in the business at 30 June 2002 was 212 employees
compared with 292 at June 30, 2001. Research and development
costs were down 9% to GBP6.1 million (2001: GBP6.8 million),
sales and marketing costs were down 34% to GBP5.3 million (2001:
GBP8.0 million) and general and administration costs were down
29% to GBP2.5 million (2001:
GBP3.6 million).

Interest
Interest income was GBP2.2 million (2001: GBP3.7 million).

Net loss

The net loss before exceptional costs was GBP10.3 million (2001:
GBP11.4 million).

Cash flow and balance sheet

The net cash outflow from operations was GBP10.8 million (2001:
GBP14.2 million). Capital expenditure was GBP1.5 million (2001:
GBP3.6 million). The movement in net funds during the half year
was a GBP9.1 million outflow. Net assets at 30 June 2002 were
GBP126.6 million (30 June 2001: GBP151.8 million), including net
cash of GBP111.7 million.

Dividend

No interim dividend payment will be made in respect of the six
months ended June 30, 2002. In the long-term interest of its
shareholders, the board believes that any future earnings should
be retained to fund the development and growth of the business.

The company's profit and loss statement and balance sheet for the
period may be viewed at: http://bankrupt.com/misc/arc.pdf.


Contact Information:

ARC International plc
Mike Gulett CEO
Telephone: +44 (0) 20 8236 2800
Monica Johnson CFO
Telephone: +44 (0) 20 8236 2800


ARC INTERNATIONAL: Parners With Denali Software on IT Solutions
---------------------------------------------------------------
ARC International, a leader in configurable SoC platform
technologies, announced last week it has entered into a
partnership with Denali Software, Inc. to integrate Denali's
Databahn high-performance memory controller core with the
ARCtangent series of microprocessor cores.

As a result of this integration, customers will be able to
configure a custom ARCtangent processor core to include support
for synchronous memory technologies such as SDRAM and DDR-SDRAM.

Databahn is the industry's first configurable memory controller
core solution. Targeted at high-bandwidth applications, Databahn
supports all high-speed memory technologies including DDR-SDRAM,
FCRAM, and RLDRAM.

A web-based interface enables designers to configure the Databahn
cores for application-specific performance, then automatically
generate the synthesizable memory controller and related
integration materials. To ensure compatibility with all the
latest memory components, Databahn's online configuration process
is tightly integrated with a database of more than 4,000 memory
components at www.eMemory.com.

The ARCtangent microprocessor core is a 32-bit user-customizable
RISC/DSP architecture. Unlike almost all other processor
architectures, it allows the chip designer to build a custom
microprocessor with easy-to-use tools. Predefined instructions
and features cut much of the development work, producing a much
faster route to market.

"We selected Denali as a strategic partner because of their
philosophy toward user configurability," said Mike Gulett,
president and CEO of ARC International. "The integration of
Databahn with the ARCtangent series allows our customers to
reduce the number of IP suppliers, reduce time-to-market, reduce
costs and reduce risk."

"Processing power and memory bandwidth are arguably the two most
important elements of SoC design today," said Sanjay Srivastava,
CEO of Denali Software. "ARC has the leading solution for
configurable processing. Now, by pairing the ARCtangent-A5 with
Databahn, they can solve the memory bottleneck with all the
configurability necessary for high bandwidth applications."

This partnership is consistent with ARC's pledge to make it
easier for customers to get to volume quicker, by dealing with
fewer IP suppliers that can provide them with more of a solution.

Relationships like this demonstrates the commitment of ARC
International to provide its partners with the tools necessary to
meet their market objectives, and to effectively extend the
market reach of both companies.

ARC International is a leading developer of embedded user-
customizable high-performance 32-bit RISC/DSP processor cores,
with integrated development tools, peripherals, RTOS and
software.

These integrated products and solutions are a result of the
acquisitions of MetaWare, VAutomation and Precise Software
Technologies.

ARC's integrated intellectual property solutions assist customers
in rapidly developing next generation wireless, networking and
consumer electronics products, reducing the number of IP
suppliers, reducing time-to-market, reducing their costs, and
reducing their risk for System-on-Chip products.

Products based on ARC's technology include digital still cameras,
set-top boxes and network processors.

ARC International employs more than 200 people in research and
development, sales and marketing offices across North America,
Europe and Israel. Full details of the company's locations and
other information are on the company's website, www.ARC.com. ARC
International is listed on the London Stock Exchange as ARC
International plc (LSE:ARK).

Denali Software Inc. is the world's largest provider of
comprehensive solutions for memory system selection, design,
integration, and verification. Memory selection, memory
controller configuration, and Denali's Memory Research Services
supported through its online infrastructure at eMemory.com.

Denali's MMAV (Memory Modeling-Advanced Verification) product is
the de facto industry standard for modeling and simulating memory
for functional verification.

Denali's Databahn product for memory controller IP (Intellectual
Property) provides designers with the highest quality solution
for producing memory controller cores for all of new and emerging
DRAM memory technologies.

More than 400 companies worldwide use Denali's tools, technology,
and services to efficiently integrate new memory technologies
into complex system designs for communication, consumer, and
computer products. For more information, contact Denali at
www.denali.com, or call (650) 461-7200.


ARC INTERNATIONAL: Signs Software Agreement With Metrowerks
-----------------------------------------------------------
ARC International, a leader in configurable SoC platform
technologies, announced on July 25 that Metrowerks, recognized
experts in software development tools, have signed an agreement
allowing Metrowerks to market licenses and support services in
conjunction with its own products.

Under the terms of the agreement, Metrowerks will distribute ARC
products to its customer base worldwide, directly or indirectly
through distributors, bundled with Metrowerks products or on a
stand-alone basis. Metrowerks is an independently operating
subsidiary of Motorola, Inc.

Metrowerks develops and markets the CodeWarrior Development Tools
suite, which enables software developers to quickly and easily
create embedded products and applications.

Metrowerks intends to provide complete reference platforms
targeting the networking and communications market that will
enable developers to quickly build and deploy smart network-
enabled devices.

"CodeWarrior and PowerPC are used by thousands of developers
worldwide", said Mike Gulett, president and CEO of ARC
International. "Bundling ARC's MQX RTOS and the networking stacks
with the Metrowerks products will expose these products to new
customers and potentially open some new sales channels into those
markets."

"ARC's combination of a royalty-free sales model and inclusion of
source code allows Metrowerks to provide developers a flexible,
cost-effective solution," said John Smolucka, vice president of
marketing, Metrowerks. "In addition, because ARC builds its own
real-time TCP/IP Communications Stack, the protocol stacks are
highly integrated into the OS, providing extremely high
performance."

The marketing partnership between ARC and Metrowerks underscores
the need for companies to collaborate in order to maximize
customer opportunities and to address the available market. It is
also consistent with ARC's pledge to make it easier for customers
to get to volume quicker, by dealing with fewer IP suppliers that
can provide them with more of a solution.

Relationships like this demonstrates the commitment of ARC
International to provide its partners with the tools necessary to
meet their market objectives, and to effectively extend the
market reach of both companies.

Metroworks creates CodeWarrior software and hardware products and
services for developers with a particular focus on the following
industries: consumer electronics; transportation; wireless; and
networking and communications.

The CodeWarrior product line includes development tools and
middleware that enable customers to decrease their time to
market. The company also offers services, training, custom
software development, and managed developer programs.

Founded in 1985, Metrowerks -- http://www.metrowerks.com/-- is
today an independently operating subsidiary of Motorola, Inc.
Metrowerks corporate headquarters are in Austin, Texas;
Metrowerks European headquarters is Basel, Switzerland; and
Metrowerks Japan is headquartered in Tokyo.


ARC INTERNATIONAL: Expands Design Network in U.S., China, Korea
---------------------------------------------------------------
ARC International, a world leader in configurable System-on-Chip
(SoC) platform technologies, expanded on July 22 its worldwide
authorized design center network by partnering with e-MDT, a full
turnkey SoC design center based in the U.S., China and Korea.

e-MDT will provide complete design services, back-end testing and
verification for products based on ARC's industry leading
communications and consumer SoC IP portfolio, including the 32-
bit RISC/DSP ARCtangentT microprocessor core architecture.

Full turnkey services will also include wafer fabrication and
device assembly via their foundry partner, Hynix Semiconductor.

In a separate release today, ARC and Hynix announced ARC joining
Hynix's SoC IP Alliance program, which will enable Hynix to offer
standard and custom products based on ARC's SoC IP. By partnering
with both e-MDT and Hynix, ARC has also authorized e-MDT to
provide design services for its SoC IP-based solutions on behalf
of Hynix's worldwide customers.

"e-MDT's expertise in ASIC and mixed signal design is a real
benefit to customers throughout the U.S. and Asia who require the
fastest time-to-market and reduced risks for ARC IP-based
products," said Mike Gulett, president and chief executive of ARC
International. "With Hynix's extensive and cost-effective
manufacturing support, e-MDT is now fully positioned as one of
the best `one-stop shop' design centers in the world."

ARC's partnership with e-MDT will provide its customers direct
access to e-MDT's three state-of-the art design centers in San
Jose, California, Seoul, Korea and Shenzen, China. Customers will
benefit from e-MDT's international design teams specializing in
sub-micron ASIC and ASSP integrated circuits and license IP for
communications and consumer products.

"Our design center partnership with ARC International is another
important milestone for e-MDT," stated Jay Jeong, CEO and
president of e-MDT. "ARC is the number one RISC IP supplier in
the world, and the addition of this IP to our portfolio allows us
to offer our customers access to technologies that will
significantly reduce their time-to-market. This partnership is
not only clear recognition of the skills and experience of our
design team, but also our commitment to bring our advanced SoC
design resources closer to our customers."

The 32-bit RISC/DSP ARCtangent microprocessor core architecture
is an ideal choice for highly flexible and low cost ASIC, SoC,
ASSP and FPGA designs for communications and consumer products.
With its low power consumption and superior computational
performance, it is a leading choice for variety of applications
throughout the world.


ARC INTERNATIONAL: Announces SoC IP Alliance With Hynix
-------------------------------------------------------
ARC International, a world leader in configurable System-on-Chip
(SoC) platform technologies, and Hynix Semiconductor Inc., an
industry leader in high quality semiconductors, announced on July
22 an alliance that extends ARC's communications and consumer
product SoC IP solutions to Hynix's worldwide customers.

Hynix is expanding its design services IP portfolio by offering
to its customers ARC's industry-leading 32-bit RISC/DSP
ARCtangent microprocessor core architecture in hard macro IP
form.

Hynix's customers are assured reduced development costs and
faster time-to-market for highly differentiated SoC designs.

"We are delighted to have ARC International as a Hynix SoC
Alliance partner. Our alliance will help catalyze more business
opportunities for joint customers in designing and manufacturing
tomorrow's advanced SoC solutions using ARC's industry-leading
IP.

With ARC's IP leadership, Hynix looks forward to increasing the
total number of customer designs using this path to silicon."
said Channy Lee, vice president and general manager of Hynix's
Semiconductor Manufacturing Service (SMS) Division responsible
for foundry, ASIC and COT services.

Hynix's design services include a growing portfolio of third
party semiconductor IP, as well as library cells, analog IP and
embedded memory blocks developed in-house. As one of the top four
semiconductor foundries in the world, Hynix is fully leveraged to
provide a lower risk and cost effective development environment
ranging from initial design to final silicon.

"ARC International's alliance with Hynix provides chip designers
the best of both worlds, industry-leading SoC IP for highly
differentiated designs combined with superior fabrication and
manufacturing capabilities," commented Mike Gulett, president and
chief executive of ARC International. "In addition to providing
Hynix customers with high performance building blocks for
communications and consumer product semiconductors, this alliance
expands ARC International's role in Asia and narrows the
production gap between silicon manufacturing and leading OEM
product manufacturing centers in the region."

The ARCtangent is a low-cost 32-bit RISC architecture optimized
for computational performance, digital-signal processing and I/O
throughput. With its low power consumption, ARCtangent processors
are ideal for battery-powered communications and consumer
products where every milliwatt counts.


BOOKHAM TECHNOLOGY: Reports Q2 Interim Results Ending June 30
-------------------------------------------------------------
Bookham Technology plc, a leading provider of integrated optical
components and modules for fiber optic communication networks
announced on July 30 the company's results for the second quarter
and the six months ended June 30, 2002.

Highlights for the second quarter ended 30 June 2002

- Revenue in the second quarter 2002 was GBP7.1 million (USD10.9
million), up 27% sequentially from the first quarter 2002 (GBP5.6
million; USD8.6 million) and up 20% on the second quarter 2001
(GBP5.9 million; USD9.0 million), in line with average analyst
expectations.

- The cash burn for the quarter was GBP13.7 million (USD21.0
million) down 38% from GBP22.2 million (USD34.0 million) in the
first quarter 2002, and down 43% on the second quarter 2001
(GBP24.3 million; USD37.2 million), as a result of the company's
cost reduction measures.

The reduction in cash burn was achieved not withstanding that the
second quarter number includes a full quarter of costs from
Marconi's optical components business (MOC) acquired in February
2002. The company's cash position remains strong, with GBP148.9
million (USD227.8 million) in cash.

- Net loss for the quarter including one-time charges of GBP0.9
million (USD1.4 million) was reduced to GBP16.2 million (USD24.8
million) from GBP17.0 million (USD26.0 million) in the first
quarter 2002 and GBP44.6 million (USD68.2 million) in the second
quarter 2001.

- As part of its ongoing broader cost reduction efforts, the
company recently announced that it is concentrating its worldwide
production in two of its current four facilities, manufacturing
ASOC components at its Milton, Abingdon facility and active
components at its Caswell site. This will reduce costs without
adverse impact on manufacturing capacity or on future sales ramp-
up.

- The company's Telcordia-qualified 4-channel Electronic Variable
Optical Attenuator (EVOA) has been approved for use by a major
network system manufacturer and is being shipped in production
volumes.

Commenting on the results, Giorgio Anania, President and Chief
Executive Officer, said:

"We believe we have just completed another good quarter, with
revenues up, cash burn down and further design-ins announced. The
market continues to be challenging, and there is a lot of
uncertainty in our customers' product plans, but not withstanding
this our revenues are still continuing to grow and we have been
able to reduce expenses while still maintaining a strong
investment in product development. As an example, we are getting
strong pull from customers for our integrated tunable
transmitters, which we are beginning to sample widely.

"We believe our three semiconductor technologies are capable of
delivering significant cost reductions for our customers, which
is clearly their principal driver at the present time.

"We have sustained progress on cost reduction over the past
several quarters. Further reductions have been announced this
quarter. Going forward, while the market remains depressed, we
plan to continue our ongoing cost reduction efforts to move the
company towards profitability."

Operating Review

Despite the challenging market environment, the company continues
to see significant pull from customers to start design-in
activities with its extended range of products offering end-to-
end solutions across the whole optical network.

A recently announced example is the Telcordia qualified 4-channel
EVOA, the industry's first silicon-based optical attenuator which
was manufactured using the company's ASOC. technology. The EVOA
uses silicon's semiconductor properties to attenuate light at
speeds that are orders of magnitude faster than competitive
approaches, which adds genuine functionality to the product.

It also boasts a very high dynamic range, with attenuation up to
45 dB, without dynamic polarization dependent loss (PDL). This
quarter saw some significant sales of optics lasers and
modulators into non-telecom accounts (BAE Systems), building upon
the same product building blocks used in the company's telecom
integrated transmitters.

Cost reduction efforts The company has announced that it will
concentrate its worldwide production in two of its current four
facilities, manufacturing ASOC components at its Milton,
Abingdon facility and active components at its Caswell site,
which it obtained as part of the acquisition of its optical
components business from Marconi at the beginning of the year.

Through an ongoing process efficiency programme, the company
believes that it can handle component production rates of
approximately GBP200 million (USD306 million) at Milton and
similar levels at Caswell, permitting it to close its other two
facilities in Maryland, US and Swindon, UK. This will reduce
costs without adverse impact on manufacturing capacity or on
future sales ramp-up. At the end of the second quarter, the
company employed 901 people in total.

The completion of the current cost reduction programme will
result in the company having approximately 750 employees.

Financial Commentary
All US dollar numbers have been translated at GBP1 = USD1.53 for
the convenience of the reader.

Second quarter ended 30 June 2002
Revenue:

Revenue for the quarter ended 30 June was GBP7.1 million (USD10.9
million), a 27% increase from the GBP5.6 million (USD8.6 million)
in the first quarter 2002, and a 20% increase compared with
second quarter 2001.

The supply agreement with Marconi, entered into as part of the
acquisition of MOC, coupled with demand for active products
accounted for the strong sequential increase in revenue.
Excluding sales to

Marconi, revenue for the quarter was up 41% over the previous
quarter. Marconi, BAE Systems and Nortel Networks were over 10%
customers for the quarter and represented 52%, 18% and 10% of
sales respectively. On the product side, DWDM products accounted
for 59% and active products for 41% of revenue for the quarter.

Operating loss (before exceptional items) under UK GAAP:
Increased revenues accounted for the reduction in the gross loss
(loss at the gross margin level) to GBP3.9 million (USD6.0
million) in the second quarter 2002, compared to GBP4.9 million
(USD7.5 million) in the first quarter 2002.

The gross loss (loss at the gross margin level) was higher than
the GBP1.7 million (USD2.6 million) reported in the second
quarter 2001 due to a higher fixed cost manufacturing base,
primarily as a result of the MOC acquisition.

The company continued to make progress on its cost reduction
efforts following the integration of the MOC business. As a
result of the addition of MOC for the full quarter, compared with
only two months in the first quarter 2002, there was a quarterly
increase in operating expenses of 5%.

Compared with the second quarter of 2001, operating expenses
excluding National Insurance provision on stock options declined
10%.

Net loss (including exceptionals for UK GAAP and one-time charges
for US GAAP):

The net loss, under both UK and US GAAP in the second quarter
2002, was GBP16.2 million (USD24.8 million) and loss per share
was GBP0.11 (USD0.17), which included a one-time charge of GBP1.0
million (USD1.5 million) attributable to the immediate impairment
of fixed asset equipment relating to the previously announced
closures of the Swindon, UK and Maryland, US facilities.

The net loss including exceptional items, in the first quarter
2002 was GBP17.0 million (USD26.0 million) under UK GAAP, and
GBP21.2 million (USD32.4 million) under US GAAP.

Cash and cash equivalents: Cash and cash equivalents as of 30
June 2002 were GBP148.9 million (USD227.8 million) compared to
GBP162.6 million (USD248.8 million) at March 31, 2002.

The cash burn for the second quarter 2002 was GBP13.7 million
(USD21.0 million), including a working capital decrease of GBP2.3
million (USD3.5 million) and capital expenditure of GBP2.7
million (USD4.1 million).

The company estimates that its ongoing broader cost reduction
efforts will reduce its quarterly cash burn rate in the fourth
quarter 2002 to between GBP10 million and GBP12 million (USD15
million and USD18 million), excluding restructuring costs.
Following the completion of the cost reduction programme
announced on July 3, 2002, the company expects to incur
exceptional charges of GBP8 million to GBP12 million (USD12
million to USD18 million).

Six months ended June 30, 2002
Revenue:

Revenue for the six months ended June 30, 2002 was GBP12.7
million (USD19.4 million), a 27% decrease compared with GBP17.5
million (USD26.8 million) in the first half 2001.

Excluding sales to Marconi, revenue for the half year was down
59% over the first half 2001. Marconi, BAE Systems and Nortel
Networks were over 10% customers for the first half and
represented 54%, 12% and 12% of sales respectively.

On the product side, DWDM products accounted for 57% and active
products for 43% of revenue for the first half 2002.

Operating loss (before exceptional items) under UK GAAP: The
gross loss (loss at the gross margin level) was GBP8.8 million
(USD13.5 million) for the first half 2002, up from GBP2.4 million
(USD3.7 million) for the first half 2001.

Operating expenses excluding National Insurance provision on
stock options declined 9% compared with the first half 2001,
mainly as a result of lower research and development
expenditures.

Net loss (including exceptionals for UK GAAP and one-time charges
for US GAAP):

The net loss under UK GAAP for the first half 2002 was GBP33.2
million (USD50.8 million) and loss per share was GBP0.24
(USD0.37). Under US GAAP, the net loss for the first half 2002
was GBP37.4 million (USD57.2 million) and loss per share was
GBP0.26 (USD0.40).

Cash and cash equivalents: Cash and cash equivalents as of 30
June 2002 were GBP148.9 million (USD227.8 million) compared with
GBP184.8 million (USD282.7 million) at 31 December 2001. The cash
burn for the first half 2002 was GBP35.9 million (USD54.9
million).

Outlook

The company notes that the market and demand continues to be
unclear but anticipates modest revenue growth for the third
quarter.

The company continues to actively monitor its costs and expects
to continue the trend of past quarters of reducing overhead costs
and cash burn. As a result of these actions, losses, excluding
exceptionals are expected to decline in the third and fourth
quarter 2002.

The company is also reiterating its guidance of reducing the cash
burn to GBP10-GBP12 million in the fourth quarter excluding
restructuring
expenses.

Bookham Technology -- www.bookham.com -- designs, manufactures
and markets integrated multi-functional active and passive
optical components using high volume production methods.

Using patented silicon-based ASOC, Gallium Arsenide and Indium
Phosphide technologies, the company provides end-to-end
networking solutions that offer higher performance and greater
systems capability to communications network system providers.

The company's latest profit and loss and balance sheet financial
statements may be viewed at:
http://bankrupt.com/misc/bookham.pdf.


Contact Information:
Bookham Technology:
Telephone: +44 (0) 1235 837000
Giorgio Anania - President & CEO
Steve Abely - Chief Financial Officer
Sharon Ostaszewska - Director Communications


CELLTECH GROUP: Creates Specialist Gastroenterology Salesforce
--------------------------------------------------------------
Celltech Group plc announced Tuesday that it has entered into an
agreement with Pharmacia Corporation to access its product
Dipentum, which is marketed as a treatment for ulcerative
colitis, an inflammatory bowel disorder.

This agreement gives Celltech exclusive sales, marketing and
distribution rights for the product in the US, and also provides
Celltech with an option to acquire all rights to the product in
the US and rest of world excluding Europe in January 2005.

The access to Dipentum enables Celltech to accelerate its
strategy of creating a specialist gastroenterology focused
salesforce ahead of the launch of pipeline products such as CDP
571 and CDP 870 in Crohn's disease.

Celltech has made an initial payment to Pharmacia of $6 million
in respect of these rights, and may make additional payments of
up to $12 million, should it elect to exercise its option.

In addition, Celltech and Pharmacia have signed a letter of
agreement regarding the acquisition by Celltech of rights to
Dipentum for European markets.

In parallel, Celltech also announced a restructuring of its US
primary care salesforce.

* Acquisition of Dipentum

Key terms of the agreements are:

* Celltech has become the exclusive distributor for Dipentumr in
the US with effect from July 23, 2002.

* Celltech has also acquired an option to acquire Dipentumr in
the US and the rest of world excluding Europe in January 2005.
Should Celltech exercise this option, it will make further
payments of up to $12 million during 2005 and will pay a royalty
to Pharmacia in respect of US sales.

* Pharmacia continues to manufacture and supply the product.
Celltech may elect to take over product supply arrangements
should it exercise its option to acquire the product.

Dipentum (osalazine sodium capsules) is indicated for maintenance
of remission of ulcerative colitis for patients who are
intolerant of sulfasalazine.

US Sales of Dipentum were approximately $11 million in 2001.

* Salesforce restructuring

In connection with the Dipentumr agreement, Celltech is
undertaking
preparations to establish specialist gastroenterology salesforces
in the US and Europe. It is intended that these salesforces will
subsequently market CDP 571 and CDP 870 in Crohn's disease
alongside Dipentum.

As part of its overall strategy of refocusing its sales and
marketing
capabilities towards specialist-focused audiences, Celltech also
announces on July 30 a restructuring of its US general
salesforce. The US salesforce was expanded during 2001 in order
to support the launch of Metadate CD (methylphenidate HCl)
Capsules.

Following an appraisal of in-market performance of Metadate CD,
Celltech will significantly reduce the level of detailing for
this product, which will result in the US general salesforce
being  reduced from 350 to 170 representatives during the third
quarter of 2002. The restructured salesforce will continue to
detail Celltech's cough/cold range of products and Zaroxolyn
Tablets (metolazone), and will support a more focused marketing
campaign with Metadate CD. Following the salesforce
restructuring, Celltech expects Metadate CD to make a positive
financial contribution to the business.

The restructuring will not result in any exceptional charges in
the second-half financial results.

In Europe, a part of each salesforce will be refocused imminently
from the current primary care area to address specialist
gastroenterology audiences. The overall size of the European
sales organization will remain broadly similar to the current
level.

Celltech does not anticipate any impact on the current market
expectations for 2002 earnings following the changes to its
business detailed above.

Dr. Peter Fellner, Chief Executive Officer of Celltech,
commented: 'Access to Dipentum enables Celltech to accelerate its
strategy of creating focused specialized gastroenterology sales
capabilities in the US and Europe, which will support the
marketing of our pipeline products in Crohn's disease. We are
particularly pleased that our excellent relationship with
Pharmacia has yielded an important opportunity to begin the
transition of our current business
towards an organizational focus that will support our innovative
pipeline products. The restructuring of our US salesforce will
also ensure that our primary care focused activities are
appropriately sized for the support of our profitable and cash-
generative specialty products portfolio.'

Celltech Group plc is one of Europe's largest biotechnology
companies, with an extensive late stage development pipeline and
a profitable, cash-generative pharmaceutical business.

Celltech also possesses drug discovery capabilities of
exceptional strength, including a leading position in antibody
engineering. More details can be found at www.celltechgroup.com.


CELLTECH GROUP: Announces CDP 571 Phase III Studies Results
-----------------------------------------------------------
Celltech Group plc announced Tuesday outline results from a Phase
III study undertaken to evaluate CDP 571 as a new treatment for
active Crohn's disease, and also from a further Phase III study
in steroid-dependent Crohn's disease patients.

The principal study, involving 400 patients, assessed the
efficacy and safety of CDP 571 in achieving acute clinical
responses, and in maintaining responses over 28 weeks.

CDP 571 was administered intravenously, at 8-weekly intervals,
at a dose of 10mg/kg. Treatment-related benefit was assessed by
the numbers attaining a significant reduction in Crohn's disease
activity index (CDAI) or disease remission.

CDP 571 treatment achieved statistically significant efficacy in
respect of a range of acute and 28-week clinical endpoints, which
are summarised below.

The 28-week combined primary endpoint (CDAI reduction 100 points
and/or remission) was not reached when analyzed on intent to
treat (ITT) basis, but did achieve statistical significance on
per protocol data analysis.

Importantly, the product displayed an excellent safety profile,
with very low immunogenicity observed on repeated dosing.

Celltech has also conducted a pilot open label study in patients
who are hypersensitive to infliximab, which demonstrated that CDP
571 is well tolerated in these patients.

CDP 571 also demonstrated encouraging efficacy in relation
to acute endpoints in this study.

Celltech plans to seek guidance from US and European regulatory
authorities with regard to the database likely to be required for
CDP 571 marketing approval for acute treatment of active Crohn's
disease, and for its ongoing clinical management on an as-needed
basis.

Celltech and Biogen, Inc. (Nasdaq; BGEN) will review their
collaboration on CDP 571 following these discussions with the
regulatory authorities.

Further details of the results are:

-CDP 571 showed promising activity against a range of acute
endpoints important in the management of disease flares. The
number of patients attaining the combined endpoint of a CDAI
reduction of 100 points and/or remission was statistically
significant at week 2 ( p = 0.011) and week 4 (p = 0.014) on an
ITT basis.

-Over the 28-week study period CDP 571 achieved a series of
clinical responses relevant to the longer-term management of
active disease. The response across the 28-week period was
significant (p = 0.02) compared to placebo, as assessed by
comparing the AUCs (areas under the curves).

The combined primary endpoint at 28 weeks (CDAI reduction 100
points and/or attainment of remission) was not met when analyzed
on an ITT basis, although there was a trend to significance (p =
0.067), but was achieved with a per protocol analysis (p =
0.048).

The second study, conducted over 35 weeks, involved over 270
steroid-dependent patients, and assessed the ability of CDP 571
to enable safe withdrawal of steroids from these patients while
maintaining disease remission. Whilst CDP571 enabled 55% of
patients to discontinue steroid usage at the end of the treatment
period, there was no significant difference when compared with
the placebo group, which displayed an unusually high response
rate. Further analyses are ongoing to determine whether CDP 571
treatment demonstrated significant effectiveness in any patient
sub-groups.

Very importantly, CDP 571 was well tolerated in both studies,
with an excellent safety profile. A very low frequency of immune
response was detected in patients over the entire treatment
period despite repeated dosing. The overall rates of adverse
events were very similar in CDP 571-treated and placebo groups,
with no significant differences, including infection rates. In
total over 1,000 patients have been treated with CDP 571, with
most patients having been treated for 6-12 months.

Celltech Group plc is one of Europe's largest biotechnology
companies, with an extensive late stage development pipeline and
a profitable, cash-generative pharmaceutical business. Celltech
also possesses drug discovery capabilities of exceptional
strength, including a leading position in antibody engineering.

CDP 571 belongs to a new therapeutic class of medicines that
inhibit tumor necrosis factor alpha (TNF-alpha), a key mediator
in a number of autoimmune and inflammatory diseases, including
rheumatoid arthritis and Crohn's disease. CDP 571 is a second-
generation, humanized antibody, which binds with high affinity to
TNF-alpha.


Contact Information:

Dr. Peter Fellner
Chief Executive Officer
Telephone: (44) (0) 1753 534655

Richard Bungay
Director Corporate
Telephone:(44) (0) 1753 447930


NTL, INCORPORATED: Secures Broadband Lead With 37% Market Share
---------------------------------------------------------------
NTL -- www.ntl.com --, the UK's leading provider of broadband
internet services, announced Tuesday it has signed up its
300,000th broadband internet customer and taken its broadband
penetration level to over 13% of homes where the service is
available.

The company is also upping the ante against DSL providers with a
new advertising campaign and a free installation offer.

Stephen Carter, Managing Director of NTL said: "Broadband Britain
is arriving at high speed, led by NTL. We're leading from the
front."

According to NTL estimates, in homes with a choice between NTL
Broadband and ADSL roughly 85% choose NTL, and of the total
broadband user base, 60% have selected Broadband Cable:

NTL Home 37% (Cable Broadband)
Telewest 23% (Cable Broadband)
BT Openworld/BT Broadband 17% (ADSL)
Others (BT Wholesale) 15% (ADSL)
BT Business 8% (ADSL)
Total Cable Broadband 60%
Total ADSL 40%

NTL is also promoting the benefits of broadband - fast, always
connected and unlimited internet access, while leaving the
telephone line free - to dial-up internet users. Later this
month, a new advertising campaign breaks featuring Blur and
Jamiroquai. Users who click through the internet advertisements
will offered free installation for NTL's 512k or 1Mb broadband
services - saving up to GBP75.

NTL offers a unique range of Broadband services (128kbps at
GBP14.99 a month, 512kbps at GBP24.99 a month and a 1Mb service
at GBP49.99 a month).

More on NTL:

-On May 2, 2002, NTL announced that the Company, a steering
committee of its lending banks and an unofficial committee of its
public bondholders had reached an agreement in principle on
implementing a recapitalization plan. The members of the
bondholder committee held in the aggregate over 50% of the face
value of NTL and its subsidiaries' public bonds. In addition
France Telecom and another holder of the Company's preferred
stock have also agreed to the plan of reorganization.

-On May 8, 2002, NTL and certain of its subsidiaries filed a
Chapter 11 "prearranged" plan of reorganization under US law.

-On May 24, 2002, NTL filed an amended plan of reorganization and
a disclosure statement.

-On June 21, 2002, an official committee of creditors, comprised
of the members of the unofficial committee of public bondholders
and three additional members, was appointed by the United States
Trustee to oversee the Chapter 11 cases.

-On July 2, 2002, the Court in which the Company's Chapter 11
cases are pending approved a $630 million credit facility for the
Company including $500 million in new financing.

-NTL offers a wide range of communications services to homes and
business customers throughout the UK, Ireland, Switzerland,
France, Germany and Sweden.

Contact Information:

Malcolm Padley
Telephone: +44 (0)20 7746 4094


RAILTRACK PLC: Hines Forms Joint Venture With Railtrack
-------------------------------------------------------
Hines, the international real estate firm, announced on July 30
that it has formed a joint venture partnership with Railtrack
Plc, operator of the UK's railway system, to renovate the Cannon
Street Rail Station, and to develop the new eight-story Cannon
Place.

The building will contain 380,000 square feet of office space. In
addition, 30,000 square feet of new retail space will be added to
the train station's Concourse Level.

The London-based architectural firm of Foggo & Associates is the
architect for the development, and has designed a striking glass
facade for this Class A building.

"Hines is delighted to have established a relationship with
Railtrack, and we look forward to working with them on this and
future ventures," said Gerald D. Hines, chairman of Hines. "We
are currently involved in several projects around the UK, and
view London as a vibrant place in which to conduct business."

Hines opened its European office in London in 1991. Currently,
the firm is developing 99 Queen Victoria Street, a speculative
office building, and the adjoining 101 Queen Victoria Street,
which will house the new Salvation Army Headquarters. The
project, which will be completed in 2004, is located in London's
financial district, one-half mile away from Cannon Centre.

Hines Air Property, a Hines subsidiary that focuses on office
developments near UK's airports, has been active with: the
recently completed Shackleton House, Bedfont, their first
industrial development; the start of construction on the 777,
Poyle development; and their recent joint venture with Prudential
Real Estate Company of America (PRICOA) that acquired the Scipher
building in Middlesex, England. Scipher, a technology and
licensing company, will continue to lease the entire four-story
building for a 20-year term.

The firm also has completed or is developing projects in The
Czech Republic, France, Germany, Italy, Poland, Russia and Spain
for a portfolio of approximately 10 million square feet.

Hines is a privately owned real estate firm involved in
developing, acquiring, leasing and managing real estate, as well
as providing extensive global investment management and advisory
services. With offices in 76 U.S. cities and 11 foreign
countries, and assets in excess of USD13 billion, Hines is one of
the largest real estate organizations in the world. Access
www.Hines.com for more information.


Contact Information:

Hines, Houston, TX, USA
George Lancaster
Telephone: 713/966-7676

Hines, UK
Andrew Reynolds
Telephone: 44 (20) 7292 1941

Railtrack
Mike Lee-Dickson
Telephone: 44 (20) 7557 8624


WORLDCOM, INC: U.S. Trustee Forms Creditors' Committee
------------------------------------------------------
U.S. Trustee for the Southern District of New York Carolyn
Schwartz has chosen a fifteen-member committee to help lead
WorldCom through its Chapter 11 bankruptcy case, a report from
the Bloomberg said.

The committee is composed mostly of bondholders, hedge funds and
bond trustees, two insurance companies and two creditors
representing suppliers, the report said.

The scandal-ridden telecom company is looking at emerging from
its downfall caused partly by a misappropriation of expenses
worth almost USD4 billion over five quarters.

The members of the 15-man panel are Metropolitan West Asset
Management, Cerberus Partners LP, Blue River LLC, ESL Investments
Inc., GSC Partners, Wilmington Trust Co., Law Debenture Corporate
Services Inc., Metropolitan Life Insurance Co., New York Life
Investment Management, Elliott Management Corp., SunTrust Banks
Inc., Deutsche Bank AG, ABN Amro Bank NV, Electronic Data Systems
Corp. and AOL Time-Warner Inc.

Meanhwile, Nasdaq Stock Market had decided to delist WorldCom
shares based on the company's failure to continuously updated
filed reports with the U.S. Securities and Exchange Commission.

WorldCom listed USD107 billion in assets and USD41 billion in
debts in its July 21 Chapter 11 filing in U.S. Bankruptcy Court
in Manhattan. The company owes bondholders about USD30 billion
and owes bank lenders more than USD2.65 billion, including more
than USd240.8 million to Deutsche Bank. Aside from a group of new
lenders, all of the company's creditors are unsecured, with no
collateral backing the debt, the report said.

On Monday, WorldCom chose Gregory F. Rayburn as chief
restructuring officer and John S. Dubel as chief financial
officer.

WorldCom shares closed 5 cents higher at 24 cents in New York
Stock Exchange trading. The company's bonds are trading at about
12.5 cents on the dollar, according to traders.

The creditors' committee will discuss matter such as the amount
WorldCom will pay its creditors under a Chapter 11 recovery plan.
The company must get approval from most of its creditors to
emerge from bankruptcy as a reorganized company, the report said.

The committee selected Akin, Gump, Strauss, Hauer & Feld LLP as
its lawyers and Los Angeles-based investment banking firm
Houlihan, Lokey, Howard & Zukin as financial advisers, Bloomberg
said.


WORLDCOM, INC.: Will Continue Telecom and Internet Services
-----------------------------------------------------------
WorldCom Inc's Chief Executive John Sidgmore promised the company
will maintain its telecom and internet services for its customers
while concentrating on its business plan, as well, generating
finances, a report from AFX News said.

Furthermore, Mr. Sidgmore, speaking to the Senate Commerce
Committee said UUNet, WorldCom's operations running the world's
largest Internet backbone, is important to the company's health.
He also said there are no plans to change the structure, concept
or the technology of the network.

He added that the Internet business is stable and still growing
slightly, though not at the hyper-speed pace of the last decade,
AFX said.






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

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
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Copyright 2002.  All rights reserved.  ISSN 1529-2754.

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