/raid1/www/Hosts/bankrupt/TCREUR_Public/020805.mbx             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

                 Monday, August 5, 2002, Vol. 3, No. 153


                              Headlines

* C Z E C H   R E P U B L I C *

JIHLAVSKE SKLARNY: Glass Exporter Declares Bankruptcy

* F I N L A N D *

SONERA CORPORATION: Names New Shareholders in Sonera SmartTrust  

* F R A N C E *

ALCATEL: Wins Contract for Network Project From Guangdong Telecom  
ALCATEL: Conducts First 3G Multimedia Call on a UMTS Network
SAHFF: MJ Industrie Acquires OLFA Brand of Bathroom Accessories

* G E R M A N Y *

ADS SYSTEM: Network Services Provider Files for Insolvency
CARGOLIFTER AG: Boeing Explores Airship Project With Cargolifter
HELKON MEDIA: Film Producer and Distributor Slips Into Insolvency  
PHENOMEDIA AG: PC Games Developer Begins Insolvency Proceedings

* I T A L Y *

BLU SPA: Delays Decision on Liquidation to September 2
FILA HOLDING: Announces Second-Quarter 2002 Results

* N E T H E R L A N D S *

KPNQWEST NV: Central Europe Operation Attracts Oil Giant Yukos
UNITED PAN-EUROPE: Announces Transfer of Shares to German Partner

* P O L A N D *

BANK PEKAO: Suffers Losses on Profit Warning Fears
ELEKTRIM SA: Plans to Divest ET for Final Debt Settlement  
NETIA SHAREHOLDERS: Minority Shareholders Challenge Resolutions

* S W E D E N *

LM ERICSSON: Responds to BB+ Rating by Standard & Poor's

* U N I T E D   K I N G D O M *

BIOCOMPATIBLES INTERNATIONAL: Issues Notice of Interest in Shares
BOOKHAM TECHNOLOGY: Sells Interests in Measurement Microsystems
BNFL: Environmental Services Group Wins DTI Contract  
BRITISH AIRWAYS: Cost Reductions, Posts Better Results
COOKSON GROUP: Rights Issue Strengthened After Shares Jump
DANKA BUSINESS: Issues Notice of Interest in Shares
ENERGIS PLC: Dixons Signs GBP15MM Deal With Energis
GILBERT GROUP: Goes Into Receivership Due to High Debt Levels
JYRA: Clarifies Sale of Assets From Liquidators
MARCONI PLC:  Sells Business to Finmeccanica for GBP387 MM
MOTHERCARE PLC: Appoints Rex Peacock as Non-executive Director
SCOOT.COM PLC: Completion of Disposal, Change of Name to Timeload
WORLDCOM: Court Charges Former Execs Sullivan, Myers With Fraud


===========================
C Z E C H   R E P U B L I C
===========================


JIHLAVSKE SKLARNY: Glass Exporter Declares Bankruptcy
-----------------------------------------------------
A regional court in Brno recently declared Jihlavske Sklarny
Bohemia bankrupt after six months of negotiations aimed at  
restructuring bank loans and securing new capital, a report
from the Prague Business Journal said.

Jihlava, which employed 1,200 after dismissing 220 staff over the
last two months, is one of the companies in the glass
industry most brutally hit by the strong crown and a sharp
decline in exports, the paper said.

After the car industry, the glass sector has traditionally been
the second biggest exporter in the country, with foreign sales of
Kc 35.9 billion or around 70% of total production.

Jihlavske Sklarny Bohemia CEO Radomir Matejcek agreed to the
complaint about the crown saying "We did not count on the
dramatic fall in demand for handmade crystal products or the
unprecedented firming of the Czech crown." He added that the
company is still seeking ways to continue following last Monday's
bankruptcy decision, the paper said.

In 2000, Jihlavske Sklarny Bohemia survived despite U.S. led
foreign investors buying into the glassworks. The investors were
headed by U.S.-based private investment company Winslow Partners.
The new owners invested Kc 550 million in restructuring and
modernization of production from their own resources and loans,
the paper said.

During that year, the company cut year-on-year losses to Kc 42
million from Kc 105 million. However, in 2001 the firm plunged
deeper into the red, with losses totaling Kc 176 million.

CEO Matejcek blames lower demand for lead glass in world markets,
the destination of 85% of the glassworks' output, as well as
unexpectedly high costs of new technology, the paper added.

Winslow Partners declined to comment on the situation in a recent
e-mail . However, daily Hospodarske Noviny reported last week that
Winslow Partners admitted to losing more than Kc 500 million in the
glassworks company -- the biggest loss ever by a Czech venture
capital fund.

Jihlavske Sklarny's financial woes started in June when the
company was unable to pay wages.

Last year, the company posted revenues of Kc 610 millon. New
technology and higher production capacity was supposed to raise
sales by two-thirds, and the company planned to make a profit
this year. The majority owner, controlling around 98% of shares,
is holding company Bohemia Crystal Jihlava, which is over
90%-owned by two investment funds managed by Winslow Partners.


=============
F I N L A N D
=============


SONERA CORPORATION: Names New Shareholders in Sonera SmartTrust  
---------------------------------------------------------------
The Carlyle Group, GE Equity and EQVITEC Partners have signed an
agreement to invest EUR 35 million in Sonera SmartTrust AB of
Sweden, a wholly owned subsidiary of Sonera Corporation, with
revenues of EUR 36 million in 2001.

SmartTrust AB is the operating Parent Company of the Sonera
SmartTrust Group. Carlyle, through its Carlyle Europe Venture
Partners fund, will lead the syndicate.

"With the expertise of these three venture capital companies, we
are expanding and strengthening SmartTrust's ownership base with
experienced software and mobile industry players. Sonera will
still own a 39.3% stake in SmartTrust. Thereby Sonera will retain
upside potential and participate in building SmartTrust's
future", says Niklas Sonkin, Chairman of SmartTrust's Board of
Directors and Sonera's Chief Strategy Officer.

In parallel, SmartTrust's management is establishing a new
warrant based incentive program for employees that will replace
the previous warrant program. A portion of SmartTrust's
shareholding will be set aside for this purpose.

"SmartTrust has demonstrated a clear ability to create solutions
that are relevant for today's mobile operators. As operators move
towards providing new value-added services for consumer and
business users they will need the support of evermore
sophisticated infrastructure software. With a proven track record
SmartTrust is well ahead of its competitors in developing
innovative solutions," said Michael Wand, director, The Carlyle
Group.

Subject to meeting the terms of the purchase and regulatory
approvals, the transaction is due to complete within two months,
Sonera Corporation announced last week.

SmartTrust -- www.smarttrust.com -- is a leading provider of
infrastructure solutions designed to enable secure mobile e-
services.

More than 80 mobile operators worldwide are using SmartTrust
technology to diversify their service offerings and open new
revenue streams by launching enhanced SMS services, controlling
mobile end-user applications and managing the entire life cycle
of the SIM/USIM.

Customers include Bharti Cellular, Cingular Wireless, Telenor,
Satelindo, Smart Communications, Sonofon, MTN, Vodafone UK and Z-
Tone. The company has operations in Europe, Asia, The Americas
and Australia

The Carlyle Group is a global private equity firm with more than
$13.5 billion under management. Carlyle's mission is to generate
extraordinary returns by employing a conservative, proven, and
disciplined approach to investing.

Carlyle invests in buyouts, venture, real estate and high-yield
in the US, Europe and Asia, focusing on telecommunications,
media, technology, aerospace and defence, consumer, industrial,
energy and healthcare. Since 1987, the firm has invested $6.6
billion and achieved a realized internal rate of return of 37
percent.

Carlyle Europe Venture Partners -- www.thecarlylegroup.com
--, is a Euros 650 million fund dedicated to investing in high-
tech start-ups with major operations in Europe.

It was launched in January 2000 and focuses on the following
sectors: Material Sciences, Communications Technology, Enterprise
and Infrastructure Software, Online Financial Services.  

EQVITEC Partners -- www.eqvitec.com -- is the leading private and
independent venture capital firm in the Nordic region with EUR260
million under management. EQVITEC focuses on technology companies
and has invested in about 40 Finnish and international technology
companies with growth potential.

GE Equity -- www.geequity.com --, is the Private Equity arm of
GE, providing capital to facilitate growth as well as to finance
change of control transactions. Key sector focuses are Financial
Services, Healthcare, Energy, Specialty Materials and
Technology. GE Equity launched in the US in 1993 and expanded
into Europe in 1995. The European operation is headquartered in
London with a further office in Milan. GE Equity currently has
EUR500m invested in 50 European companies.

Contact Information:
Niklas Sonkin
Sonera Corporation
Telephone: +358 2040 63496
Mobile: +358 400 418724
Email: niklas.sonkin@sonera.com

Antti Vasara
SmartTrust
Telephone: +358 2040 54057
Mobile: +358 40 556 5776
Email: antti.vasara@smarttrust.com

Daniela Zuin
The Carlyle Group
Telephone: +44 207 894 1569
Mobile: +44 7799 113040
Email: dzuin@thecarlylegroup.com

GE Equity
Emily Gregory/Fergus Wheeler
Financial Dynamics
Telephone: +44 207 831 3113
Email: Emily.Gregory@fd.com


===========
F R A N C E
===========


ALCATEL: Wins Contract for Network Project From Guangdong Telecom  
-----------------------------------------------------------------
Alcatel - www.alcatel.com -- has won a multi-million dollar
contract from Guangdong Telecom to expand the network capacity of
the operator's broadband access service, the company announced
Thursday.

The contract, won through Alcatel Shanghai Bell, covers most
regions of Guangdong province including Guangzhou, Shenzhen,
Zhuhai, Zhongshan, Fuoshan, Hainan and Shantou.

Guangdong Telecom was the first operator to introduce Digital
Subscriber Line  (DSL) broadband access service in China.  With
this expansion, it now has a DSL network capacity of 600,000
lines.

Feng Xong, General Manager of Guangdong Telecom, said, "We have
had a long-term business partnership with Alcatel Shanghai Bell
ever since our inception in 1996.  This latest order for Alcatel
Shanghai Bell DSL lines signifies the strength of that
partnership, as well as our continuing confidence in its products
and services."

Michel Rahier, president of Alcatel's broadband networking
activities,said,  "This is the second time this year that Guangdong
Telecom has chosen our  DSL  solutions for its network expansion,
and strengthens our position as  the leading DSL supplier in
Guangdong province.  DSL enables profitable broadband business in
China, and we are confident that Guangdong Telecom will get
direct cost benefits from its DSL service with our products and
solutions."

Alcatel is the leading DSL provider in both China, with a 40% market
share, and worldwide, where it boasts a 38% share.

Guangdong Telecom  (China Telecom Group Guangdong Corporation) is
the subsidiary company of China Telecom Group, with 32,000 employees.

The main operation of Guangdong Telecom covers fixed telecom
network domestics and overseas, voice, data, multimedia and
information services based on telecom network etc.

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 EURO 25 billion in 2001 and
99,000 employees, Alcatel operates in more than 130 countries.


ALCATEL: Conducts First 3G Multimedia Call on a UMTS Network
------------------------------------------------------------
Alcatel - www.alcatel.com -- announced on August 2 that it has
conducted the first voice, data and video communications on the
end-to-end UMTS trial system installed in Kuala Lumpur by
Alcatel.  

For the very first time in Malaysia, a UMTS infrastructure
network carries not only voice communications in circuit mode but
also allows the transfer of data and high-speed video images in
packet mode, in full compliance with W-CDMA 3GPP standards.  
These calls were demonstrated to the media in Kuala Lumpur today.

Numerous tests have confirmed the Alcatel Evolium(TM) UMTS
infrastructure's quality in the area of high-speed data and video
transfers.  

Whether for videophony calls between two 3G handsets, surfing the
Internet (Web Browsing), having on-line access to information,
images or videos (Video Streaming and Downloading), or for
transmitting video images from a remote Webcam.  The Alcatel
3G/UMTS pilot network provides data rates of up to 384 kbit/s.

Alcatel installed in Kuala Lumpur its complete Evolium(TM)
solution including the UTRAN (UMTS Terrestrial Radio Access
Network) radio systems, the Core network; as well as the
associated Radio Network Controller (RNC) and a dedicated
Application Service platform.  The radio systems, which include
the UMTS base stations (Node B) are developed and produced by
Evoium SAS, the joint venture between Alcatel and Fujitsu.

"In 2000, Alcatel provided Malaysia with the first end-to-end
GPRS solution.  Today, we are proud to bring the real 3G age to
Malaysia by conducting the first mobile multimedia call here,''
said John Quaeyhaegens, Country Senior Officer of Alcatel
Malaysia.''3G offers great potential for end-users because of the
high bandwidths available for wireless multimedia applications in
addition to voice calls.  Today's call proves that Alcatel is the
only vendor to have 3G networks already operational, which can
support the full range of 3G applications."

"A recent study by Pyramid Research concluded that there are
already 350,000 subscribers in Malaysia that can afford mobile
data applications costing between US$10-$20 a month (RM40-75).  
This makes Malaysia one of the most attractive markets for high-
bandwidth services in South East Asia. 3G operators will
certainly be looking to the kinds of applications Alcatel has
demonstrated today to lure those subscribers and capture that
potential," said John Barrett, Asia Pacific Senior Analyst with
Pyramid Research.


SAHFF: MJ Industrie Acquires OLFA Brand of Bathroom Accessories
---------------------------------------------------------------
SAHFF, wooden lavatory lids manufacturer of the French brandname
Olfa, has been acquired by MJ Industrie, the French plastics
concern specializing in bathroom accessories, Les Echos reports.

SAHFF has been in compulsory administration since December 2001.

The company is implementing a redundancy plan where three
quarters of its current workforce will be reduced from 140 to
100.

The remaining employees will be employed by MJ Industrie.


=============
G E R M A N Y
=============


ADS SYSTEM: Network Services Provider Files for Insolvency
----------------------------------------------------------
Argyrakis Dein System (ADS) Ag -- http://www.ads.de/-- the  
Homburg-based networking services provider, announced on August 1
that the company filed insolvency proceedings at the district
court in Homburg.

Dr. Bernsau, Frankfurt was named provisional insolvency
administrator. In the context of the insolvency request, several
continuation alternatives were initiated.

A possible management buyout was developed by approximately 55
employees at different office locations.

The core business of the ADS system AG will remain. The
subsidiaries in Switzerland were sold to the management.

For the subsidiaries in Austria and the Netherlands, the
administrators are currently negotiating with investors a
possible sale. The company announced the continued operation of
the said units.


CARGOLIFTER AG: Boeing Explores Airship Project With Cargolifter
----------------------------------------------------------------
Boeing and CargoLifter AG announced Tuesday that they have signed
a contract to jointly explore stratospheric airship plans.

The contract, which provides for a detailed study of "Lighter-
than-Air" stratospheric platforms, will enable Boeing and
CargoLifter to coordinate efforts to bid as airship system
suppliers for current and future programs.

"This is an important new business opportunity for Boeing," said
Charlie Guthrie, director of rapid prototyping and advanced
concepts for the Boeing unmanned systems organization.
"CargoLifter has the capability and expertise for "Lighter-than-
Air" platform development, and we are excited to work with them.
Several governments have research and development activities
focused on stratospheric platforms to support communications and
surveillance requirements. Airships may be a suitable platform
for such applications."

Dr. Wolfgang Schneider, CargoLifter AG chief executive officer
said, "the new restructured CargoLifter is pleased to be able to
use its extensive knowledge of "Lighter-than-Air" platform
development to assist Boeing to establish a leading position in
the stratospheric airship market - a market which is set to grow
significantly over the next decade."

Boeing and CargoLifter currently are taking the first steps to
put together their team. The contract follows a Letter-of-Intent
signed by the two companies in May 2002.

Unmanned Systems is part of Boeing Integrated Defense Systems
(IDS). Headquartered in St. Louis, IDS is a USD23 billion
business, one of the largest defense and space businesses. It
provides systems solutions to its global military, government and
commercial customers.

It is a leading provider of intelligence, surveillance and
reconnaissance; the world's largest military aircraft
manufacturer; the world's largest satellite manufacturer and a
leading provider of space-based communications; the primary
systems integrator for U.S. missile defense; NASA's largest
contractor; and a global leader in launch services.

CargoLifter AG based to the South of Berlin in Germany is
developing "Lighter-than-Air" systems for logistics and other
applications. The Company's first product, the CL 75 AC balloon
based system has been in prototype flight test since October
2001. It will be capable of carrying an 86 short ton payload in
either a crane configuration or as a towed vehicle.

CargoLifter's flagship product, the CL160 airship, with a
capability to carry outsized and heavy goods over long distances,
is a key goal of the Company.

CargoLifter is already in cooperation with a number of partners
and potential users to further define and develop both markets
and products. Listed on the Frankfurt Stock Exchange, CargoLifter
AG has developed a unique capability to research, design, develop
and produce airships and other "Lighter-than-Air" vehicles.


HELKON MEDIA: Film Producer and Distributor Slips Into Insolvency  
-----------------------------------------------------------------
The executive committee of motion picture production group Helkon
Media AG placed on August 2, 2002 filed for insolvency at a court
in Munich Friday.

The move comes after detailed examination of the business and
financial situation revealed that the company was not unable to
pay its debts.

In the past months, a comprehensive reorganization plan has been
under negotiations with potential partners and investors.
However, additional financial requirement for the successful
conclusion of the restructuring could not be guaranteed.

The company now expects the appointment of a provisional
insolvency manager.


PHENOMEDIA AG: PC Games Developer Begins Insolvency Proceedings
---------------------------------------------------------------
The insolvency administrator of Phenomedia AG Dr. Joneleit
announced that on August 1 the company opened a request for
insolvency proceedings at the district court in Bochum.

Dr. Joneleit forsees that Phenomedia AG has solid ground in order
to guarantee the continuation of its core operations.

By terminating the activities of its unprofitable units and
through the sale of Phenomedia's subsidiaries, the group expects
to raise funds for additional capital.


=========
I T A L Y
=========


BLU SPA: Delays Decision on Liquidation to September 2
------------------------------------------------------
Blu SpA said it is postponing its decision until September 2
on whether or not to liquidate the company, a report from AFX
News said.

The company's spokesperson said Blu SpA is still waiting for the
European Commission to decide under its anti-trust rules whether
the company can be broken up and sold off to rival telecom
operators, the news agency said.

Shareholders in a meeting held last July 31 reached a decision to
move the company's headquarters from Naples to Rome, the news
agency said.  

Autostrade SpA and British Telecommunications PLC are among the
companies that hold stakes in Blu SpA.


FILA HOLDING: Announces Second-Quarter 2002 Results
---------------------------------------------------
Fila Holding S.p.A. reported Thursday its unaudited results for
the second quarter ended June 30, 2002.

Key highlights for the quarter were the following:

-  Worldwide revenues were Euro 205.9 million, compared with Euro
207.9 million in the second quarter of 2001; 2002 revenues were
affected by negative exchange rate movements and the effect of
several subsidiaries that are being discontinued.  

-  Gross profit was 38.4% compared to 37.6% in 2001.  

-  Fixed expenses as a percent of total net revenues decreased by
510 basis point compared to the second quarter of 2001.  

-  Operating loss was Euro 4.6 million compared with Euro 15.4
million in the second quarter of 2001.  

-  Further improvement in the US backlog (up 30% in USUSD),
although backlog in Europe decreased.  

-  Net loss of Euro 35.4 million, which includes Euro 16.2
million of non-recurring costs mainly due to the write-off of
Fila UK goodwill (Euro 14.7 million).  

-  Major achievements in working capital management; net working
capital as of June 30th, 2002 decreased by Euro 162 million
compared to the same period of 2001.  

-  Net financial position decreased by Euro 31 million from
December 31st, 2001.  

Backlog of customer orders(b)

Total backlog as of June 30, 2002, scheduled for delivery from
July through December 2002, was down by 11% (in Euro) compared to
the corresponding period in 2001. In particular, apparel and
footwear backlog decreased by 5% and by 19%, respectively.

U.S. backlog increased by 30% in U.S. dollars (with apparel up by
34% and footwear up by 23%), continuing to improve from the
backlog at March 31st, 2002, which was itself up by 26%. The
Enyce brand is up by 53% and the Fila brand is up by 20% in the
U.S. market.

Outside the U.S. and excluding the markets where Fila sells its
products on a delivery basis (including Korea), backlog decreased
by 27% (in Euro). This is mainly due to the reduced activities of
the French and U.K. subsidiaries as well as the decision to
review commercial policies in several Eastern European countries.

Total Revenues and net direct sales

Worldwide revenues for the second quarter were Euro 205.9
million, down 1% from Euro 207.9 million in the corresponding
period of 2001; on a constant exchange basis total revenues would
have increased by 2%.

Net direct sales in the second quarter of 2002 totaled Euro 196.3
million compared to Euro 198.6 million in the corresponding
period of 2001 (on a constant exchange basis net direct sales
would have increased by 4%).

Apparel sales were Euro 110.4 million and footwear sales were
Euro 85.9 million, up by 9% and down by 12% respectively compared
with the second quarter of 2001. Sales in the U.S. were Euro 64.2
million in the quarter, increasing by 16% from Euro 55.5 million
mainly thanks to Enyce (+33%); in Europe sales decreased by 14%
to Euro 54.2 million mainly because of lower activity in France
and the UK. Sales in the Rest of the World decreased by 3%
because the good performance in the Korean market (+21% in local
currency in the quarter) was offset by a continued drop in the
Latin American business (Argentina and Mexico).

Royalty Income in the quarter was Euro 5.9 million compared with
Euro 5.6 million in the second quarter of 2001.

Net Loss

In U.S. dollars, second quarter net loss was U.S.USD 32.6 million
compared with a net loss of U.S.USD 27.3 million in the second
quarter of 2001.

On a per ADS/per ordinary share basis, net loss was U.S. USD0.53
per ADS/share in the second quarter of 2002 compared with U.S.
USD0.98 per ADS/share in the same period of 2001. The decrease in
loss per ADS/share in the second quarter of 2002 reflects the
issuance of additional shares in the third quarter of 2001. The
shares outstanding for the three and six months ended June 30,
2002 and 2001 were 61,110,412 and 27,777,460 respectively.

The U.S. dollar depreciated by 5% against the Euro on a quarterly
average basis; the average exchange rate was Euro 1= U.S.USD
0.919 in the second quarter of 2002 and Euro 1= U.S.USD 0.873 in
the corresponding quarter of 2001.

Income statement review

Gross profit for the quarter was Euro 79.1 million, representing
38.4% of total net revenues, compared to Euro 78.2 million (37.6%
of total net revenues) in the second quarter of 2001. The higher
profitability comes mainly from the results achieved in Korea as
well as improvements of the Enyce and Fila brands in the U.S.,
which were magnified by the larger proportion of total sales
coming from these areas.

SG&A expenses for the quarter totaled Euro 83.7 million
(representing 40.6% of net revenues), down by 11% versus Euro
93.6 million (or 45.0% of net revenues) in the previous year. The
tight control over costs is continuing to pay off. In this
quarter Fila has been able to reduce the incidence of fixed cost
on total net revenues by 510 basis points compared to the second
quarter of 2001. Even more impressive is the result achieved in
the first half of the year with total fixed expenses at 33.8% of
total revenues and total SG&A at 37.7%, with a reduction of Euro
21 million in SG&A versus the first half of 2001.

As a consequence of the above mentioned factors, loss from
operations in the quarter was Euro 4.6 million compared with Euro
15.4 million in the second quarter of 2001.

Other expenses for the quarter were Euro 24.5 million compared
with Euro 10.5 million for the corresponding quarter of last
year; Euro 14.7 million of the increase was attributable to a
write-off of goodwill in Fila UK. This write-off was required to
recognise adverse changes in the business climate since Fila
acquired Fila UK because, despite the expected operating
improvement of the subsidiary, an immediate return to past
conditions is not foreseen.

Loss before income taxes in the second quarter of 2002 was Euro
29.1 million compared with Euro 25.8 million in the same quarter
of 2001.

Income taxes were Euro 6.3 million compared with Euro 5.4 million
in the corresponding quarter of 2001, with most of the increase
related to higher income taxes in Korea as well as withholding
taxes on current year intra-group dividends and royalties.

Net loss for the quarter was Euro 35.4 million compared with Euro
31.2 million in the second quarter of 2001.

Balance sheet review

Net working capital as of June 30th, 2002 was Euro 230.8 million
compared with Euro 392.6 million as of June 30th, 2001 (a 41%
decrease) and Euro 288.9 million as of March 30, 2002. Inventory
as of June 30th, 2002 was Euro 195.1 million, compared with Euro
278.0 million as of June 30th, 2001. Trade receivables as of June
30th, 2002 were Euro 173.4 million compared with Euro 242.0
million in the prior year.

Net financial indebtedness as of June 30th, 2002 was Euro 328.5
million compared with Euro 520.7 as of June 30th, 2001 and Euro
370.3 as of March 31st, 2002. Constant improvements in net
working capital have been achieved through the latest quarters
adding up to a reduction of Euro 162 million from June 2001 and
Euro 58 million from March 2002. As a result, the working capital
turnover ratio went from 41.7% in June 2001 to a notable 24.6% in
June 2002.

Marco Isaia, Chief Executive Officer of Fila, said: "In a very
complex and difficult market environment, unexpectedly hampered
by the South American crisis, I'm pleased to highlight the
progress in the North American market as well as the outstanding
success of our Korean subsidiary. Our major managerial efforts to
streamline and make more effective our activities are producing
relevant results. I expect our goal of reducing overall operating
losses throughout 2002 will be reached."

At a meeting held on August 1, Fila's Board of Directors resolved
to call an extraordinary general meeting of shareholders on
September 23, 2002. The purpose of the shareholders meeting will
be to consider several actions intended to recapitalize Fila
after having addressed the effect of losses as of June 30th, 2002
in compliance with Italian legal requirements.

The Board will recommend in order to cover the losses, Fila's
shareholders apply reserves and reduce the par value of Fila's
shares from Euro 1.30 to Euro 0.50 each.

At the same time, shareholders will be asked to authorise a 2-
for-1 reverse stock split, resulting in shares with a par value
of Euro 1.00 each, and to authorise a share capital increase by
offering existing shareholders the right to subscribe for 3 new
shares (ADSs) for each share (ADS) currently held.

The subscription price for the new shares (ADSs) will be between
par value and Euro 1.80 per share (ADS), and will be determined
at a Board meeting to be held on September 10th, 2002 and
promptly announced to the market. The share capital increase
would result in an increase in capital stock (par value) for a
maximum amount of Euro 91,665,618 (if the offering is fully
subscribed) by issuing a maximum of 91,665,618 shares.

Fila Holding S.p.A., headquartered in Biella (Italy), is a
leading designer and marketer of athletic and casual footwear and
of activewear, casualwear and sportswear. Fila has created strong
brand recognition by marketing products with a high design and
style content and by securing professional athletic endorsements.


(a) Any reference to Fila is to Fila Holding S.p.A. and its
subsidiaries.
(b) Backlog of customer orders is not necessarily indicative of
total revenues for the respective periods, as the mix of future
and "at once" orders may vary significantly from quarter to
quarter and certain customer orders are cancelable.


FILA GROUP'S NET DIRECT SALES  (Euro)
                     FIRST QUARTER                    SIX MONTHS
                     ended June 30                   ended June
30
                      (unaudited)                     (unaudited)

Euro million      2002      2001             2002       2001
------------      ----      ----             ----       ----

UNITED STATES
Apparel           27.1      22.6    +20%     69.3       62.0      
Footwear          37.0      32.9    +13%     80.3       63.4      
                  ----      ----             ----       ----
Total             64.2      55.5    +16%    149.6      125.4      

EUROPE
Apparel           31.5      32.3     -3%     75.7       84.8      
Footwear          22.7      30.8    -26%     69.7       90.1      
                  ----      ----             ----       ----
Total             54.2      63.1    -14%    145.5      174.9       

REST OF WORLD
Apparel           51.8      46.2    +12%    100.5       86.4      
Footwear          26.2      33.8    -22%     50.2       63.8       
                  ----      ----             ----       ----
Total             78.0      80.0     -3%    150.7      150.2        

TOTAL FILA GROUP
Apparel          110.4     101.1     +9%    245.5      233.2        
Footwear          85.9      97.4    -12%    200.3      217.3       
                  ----      ----            -----      -----
Total            196.3     198.6     -1%    445.8      450.5        

Figures may not add due to rounding.


BALANCE SHEET SUMMARY

Euro million                    06-30-01              06-30-01
------------                    -------------       -------------
                                 (unaudited)        (unaudited)
Trade receivables                   173.4                 242.0
Inventories                         195.1                 278.0
Other current assets                 82.6                 103.3
Accounts payable                   (220.4)               (230.7)
Working Capital (a)                 230.8                 392.6
Net fixed and non current assets    134.8                 178.6
                                    -----                 -----
TOTAL NET ASSETS                    365.6                 571.2

Net Financial Position (b)          328.5                 520.7
Provision and Other Liabilities      16.8                  17.9
Shareholders' Equity                 20.2                  32.6
                                     ----                  ----
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                365.6                 571.2

    (a) Excluding cash and short term loans.
    (b) Short term and long term financial indebtedness less
             cash.

Figures may not add due to rounding.

KEY FIGURES IN U.S. DOLLARS
for the second quarter ended June 30, 2002.

We publish our financial statements in Euro. For convenience,
however, certain key results are presented herein as translated
into U.S. dollars at the average exchange rates in effect for the
respective periods. Converting Fila's consolidated results from
Euro into U.S. dollars at the average exchange rate for each
period, rather than at the period-end rate, is consistent with
Fila's practice of converting the income statements of its
foreign subsidiaries into Euro at the respective average exchange
rates during the applicable period.

                           SECOND QUARTER          SIX MONTHS
                            ended June 30         ended June 30
                            (unaudited)            (unaudited)
                         2002       2001       2002       2001
                         ----       ----       ----       ----

Net Revenues
(U.S.USD/million)         189.2      181.5      417.2      419.3
Net Loss
(U.S.USD/million)         (32.6)     (27.3)     (60.2)     
(46.6)

Net Loss per ADS (a)     (0.53)     (0.98)     (0.99)     (1.68)
(U.S.USD/ADS)
Number of ADSs
outstanding:         61,110,412 27,777,460 61,110,412 27,777,460

Average exchange rate     0.919      0.873      0.898      0.898
(U.S. dollars per Euro)

(a)    Losses per ADS were calculated by dividing Net Loss by the
       number of ADSs outstanding during the period (each ADS
       representing 1 ordinary share).


          CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

                   FOR THE THREE MONTHS      FOR THE SIX MONTHS
                      ENDED JUNE 30,           ENDED JUNE 30,
                     2002       2001          2002       2001
                   ---------  ---------     ---------  ---------
               (in thousands of Euro, except for earnings per  
               share)

Net revenues:
Net direct sales   196,323    198,587       445,753    450,495
Royalty income       5,903      5,572        12,279     11,506
Other revenues       3,686      3,739         6,580      4,905
                   ---------  ---------     ---------  ---------
                    205,912    207,898       464,612    466,906

Cost of sales       126,795    129,667       291,604    292,385
                   ---------  ---------     ---------  ---------

Gross Profit         79,117     78,231       173,008    174,521

Selling, general
and administrative
expenses            83,681     93,582       175,382    196,641
                   ---------  ---------     ---------  ---------

Loss from
operations          (4,564)   (15,351)       (2,374)   (22,120)

Other income
(expense):
Interest income        644        579         1,049      1,601
Interest expense    (6,243)    (8,254)      (12,458)   (16,424)
Foreign exchange
  (losses) incomes   (1,762)       353       (20,413)      (791)
Other expense,
  net               (17,172)    (3,147)      (22,165)    (5,343)
                   ---------  ---------     ---------  ---------
                    (24,533)   (10,469)      (53,987)   (20,957)
                   ---------  ---------     ---------  ---------
Loss before income
taxes              (29,097)   (25,820)      (56,361)   (43,077)

Income taxes          6,331      5,400        10,694      8,809
                   ---------  ---------     ---------  ---------
Net Loss            (35,428)   (31,220)      (67,055)   (51,886)
                   =========  =========     =========  =========

Loss per share
(in Euro) (1)        -0.58      -1.12         -1.10      -1.87
-------------------

(1) Loss per share has been calculated by dividing net loss by
    61,110,412 and 27,777,460 ordinary shares outstanding for the
    three and six months ended June 30, 2002 and 2001,
respectively.

Contact Information:

Fila Holding S.p.A., Biella
Investor Relations:
Giulia Muzio, (39.015) 3506 418
Elena Carrera, (39.015) 3506 246
or
Citigate Dewe Rogerson, New York


=====================
N E T H E R L A N D S
=====================


KPNQWEST NV: Central Europe Operation Attracts Oil Giant Yukos
--------------------------------------------------------------
The KPNQWwest/GTS Central Europe has attracted a surprise bidder
in the consortium that includes oil giant Yukos, a report from
the Prague Business Journal said.

But so far, only Dublin-based telco eTel has confirmed that it is
bidding for the Central European operation. The U.S. investment
bank Lehman Brothers has also been widely reported to be interested,
the paper said.

Marketing director David Duron of KPNQwest said he can confirm
that Yukos is one of the major bidders for the Central European
operations.

Louis Toth, CEO of KPNQwest/GTS Central Europe, wouldn't verify
that Yukos is in the running, but did acknowledge there are four to
five bidders into the process. He also added that the bidders, except
eTel, have wanted to keep a very low profile and that some reports
about other bidders -- including Yukos -- are nothing more than rumors,
the paper said.

Mr. Toth also said that it is uncertain how long the transaction
would go because talks with creditors and bankruptcy
administrators are currently sensitive. He hopes to hear
developments in the coming weeks, the daily reported.

Moreover, Ed Meijer, one of the KPNQwest bankruptcy
administrators in The Netherlands, noted that the main plan was
to sell the Central European operation "as one big sale," the
paper said.

Yukos has no telecom holdings in the region. Its nearest point
of presence of any kind is Slovakia, where it has acquired 49
percent of the oil pipeline operator Transpetrol. The company
itself is in this year's Financial Times' top 10 of world oil
companies according to market capitalization. Its chairman, CEO
and majority owner, Mikhail Khodorkovsky, was called the richest
man in Russia in 2001 by Forbes magazine, with personal wealth
estimated at USD2.4 billion.


UNITED PAN-EUROPE: Announces Transfer of Shares to German Partner
-----------------------------------------------------------------
United Pan-Europe Communications N.V. (UPC) -- www.upccorp.com -,
announces that it has completed the transfer of 22.3% of UPC
Germany GmbH to its partner, the Strizl family, in return for the
cancellation of a EUR 359 million face value asset contribution
obligation due from UPC to UPC Germany.

UPC now owns 28.7% of UPC Germany, with the Strizl family owning
the remaining 71.3%. UPC Germany will be governed by a newly
agreed shareholders' agreement and will be deconsolidated by UPC
from August 1, 2002.

United Pan-Europe Communications N.V. is one of the leading
broadband communications and entertainment companies in Europe.
Through its broadband networks, UPC provides television, Internet
access, telephony and programming services.

UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and
in the United States on the Over The Counter Bulletin Board
(UPCOY). UPC is majority owned by UnitedGlobalCom, Inc. (NASDAQ:
UCOMA).

Contact Information:

Claire Appleby Bert Holtkamp
Director of Investor Relations  
+ 44 (0) 207 647 8233  
Email: ir@upccorp.com  


===========
P O L A N D
===========


BANK PEKAO: Suffers Losses on Profit Warning Fears
--------------------------------------------------
Bank Pekao shares recently suffered losses amid increasing fears
that it would issue a profit warning due to Poland's economic
slump, a report from the Warsaw Business Journal said.

The stock plunged 2.2% to PLN 80.7. The bank has seen its value
fall more than 10% this week and 30% since the record highs hit
in May, the paper said.

Mr. Grzegorz Zawada, a banking analyst in Erste Securities said
people are worried that the bank might issue a profit warning. He
expects that Pekao to cut its PLN 1.4 billion (USD341 million)
net profit target by 10-15%, the paper added.

Pekao said last month it would lose as much as PLN 150 million
(USD36.6 million) in 2002 from its heavy loan exposure to a
bankrupt Polish shipyard, but that it would still maintain its
earnings targets for this year, the paper said.


ELEKTRIM SA: Plans to Divest ET for Final Debt Settlement  
---------------------------------------------------------
Elektrim's bondholders voted Wednesday to accept the company's
plan to restructuring bond repayments, sources of the Warsaw
Business Journal report.

Elektrim intends to sell its key assets in the telecommunications
sector. The proposals were supported by 86% of bondholders, whose
shares are worth EUR377 million, out of the euro 440 million that
were issued. The debts will be paid in installments until the end
of 2004, the news outfit says.

BRE Bank and Eastbridge consortium has exclusive negotiation
rights over 49% stake of Elektrim Telecommunication shares and
will expire on August 15, the paper adds.

However, BRE Bank is not in a good financial position to pursue
the offer, as they would have to quickly fork out EUR100 million
for the reported stake.

Elektim's president, Maciej Radziwi confirmed on August 1 that
this transaction will be completed by September.


NETIA SHAREHOLDERS: Minority Shareholders Challenge Resolutions
---------------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced August 2 that
it received on August 1, 2002 a copy of the claim filed by a
minority shareholder with the District Court (Sad Okregowy),
alleging that the distribution of the warrants to be issued by
the company under the pending financial restructuring is harmful
to the minority shareholders and violates good customs.

In particular, the suit is requesting that sections 10, 11 and 13
of resolution number 2 adopted at the General Meeting of
Shareholders on April 4, 2002 be invalidated. The company's
Management Board believes the claim to be unsubstantiated and
expects to file for its dismissal.

A copy of resolution number 2 adopted at the August 4, 2002
General Meeting of Shareholders is available on the company's
website at www.netia.pl.

The company has also received a decision of the District Court of
June 14, 2002 whereby the District Court resolved to forward to
the Regional Court for the city of Warsaw (Sad Rejonowy dla m.st.
Warszawy) for its determination a claim filed by another minority
shareholder, also for the invalidation of a resolution adopted at
the April 4, 2002 General Meeting of Shareholders.

The company has not received a copy of the claim and is not aware
of its merits. The company intends however to file for its
dismissal if based on the grounds of the claim received on August
1, 2002 and referred to above.

Contact Information:  
Anna Kuchnio
Investor Relations
Telephone: +48-22-330-2061


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


LM ERICSSON: Responds to BB+ Rating by Standard & Poor's
--------------------------------------------------------
Standard & Poor's announced on August 1 that it has downgraded
the long-term credit rating of Ericsson from BBB- to BB+,
maintaining their CreditWatch status pending completion of the
rights offering.

Ericsson's ratings from Standard & Poor's and Moody's Investor
Services are now aligned. The downgrade has no effect on
Ericsson's rights offering.

"This downgrade has no effect on our rights offering. As we have
said earlier, the underwriting agreements with our banks remain
firm and so does the commitment from a group of our major
shareholders." says
Michael Treschow, Chairman of the Board, Ericsson.

As stated on July 26, the underwriting agreements are unchanged
even if the company's credit rating were to drop to BB by
Standard & Poor's or Ba3 by Moody's Investor Services.

"We consider it unlikely that our rating should fall two more
steps before completion of the rights offering, and we are
confident that the rights offering will be completed as planned,"
says Michael Treschow.

Like Moody's, Standard & Poor's has stated their expectation
that, given Ericsson's current credit profile, the new rating
will be affirmed once the rights offering has been completed.

Credit agencies have been systematically lowering their ratings
for the communication equipment industry for some time. Ericsson
views Standard & Poor's decision as related to their view of the
industry in general.

The incremental financial impact of Standard & Poor's decision
amounts to an increase in financing costs of approximately SEK 55
million annually.

Ericsson is shaping the future of Mobile and Broadband Internet
communications 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.

Contact Information:

Lotta Lundin
Investor Relations
Phone: +44 7887 628707
Email: lotta.lundin@clo.ericsson.se


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


BIOCOMPATIBLES INTERNATIONAL: Issues Notice of Interest in Shares
-----------------------------------------------------------------
On July 31, 2002, J O Hambro Capital Management Limited, ORYX
International Growth Fund Limited and North Atlantic Smaller
Companies Investment Trust PLC submitted a concert party
notification, pursuant to Section 204 of the Companies Act 1985.

At that time, JOHCM confirmed that it was interested in 2,544,898
Ordinary 16 1/9p shares of Biocompatibles International Plc,
while NASCIT confirmed that it was interested in 887,164 shares,
and ORYX confirmed its interest in 286,209 shares.

These amounts represent 5.74%, 1.99% and 0.64% of the total
issued share capital of the Company respectively. These shares
are held as follows:

HSBC Global Custody London Limited      286,209
Bank of New York Nominees Limited       887,164
Nutraco Nominees Limited                241,462
Goldman Sachs International TNA         861,161
Goldman Sachs International THO         430,580
Goldman Sachs International THT         124,530
Goldman Sachs International TEU         887,165

TOTAL                                   3,718,271 shares = 8.38%


BOOKHAM TECHNOLOGY: Sells Interests in Measurement Microsystems
---------------------------------------------------------------
Bookham Technology plc, a leading provider of integrated optical
components and subsystems for fiber optic communication networks,
announces that it has sold its Canada-based R&D subsidiary,
Measurement Microsystems A-Z, Inc, to a company backed by former
management of MM.

Bookham has retained a 25% shareholding in MM.

The terms of the transaction allows Bookham to continue to use
MM's patented optoelectronic technology.

The transaction follows Bookham's earlier decision, announced in
its full year results release on 5 February 2002, to discontinue
development efforts and close the operation.

The consideration for the disposal represents less than 1% of the
net assets of Bookham.


BNFL: Environmental Services Group Wins DTI Contract  
---------------------------------------------------  
BNFL Environmental Services, the specialist BNFL business group
engaged in decommissioning and remediation, has won a three-year
contract to work with the DTI providing nuclear safety assistance
to Central and Eastern Europe and the Former Soviet Union, BNFL
announced Thursday

The contract is designed to support nuclear power plants and
regulators in the recipient countries in their proposals to gain
U.K. funding for safety improvement programmes, implementation of
modern emergency operating procedures, safety analysis reports
and assessments to International standards.

The DTI expects to spend GBP5 million next year under its Nuclear
Safety Programme to provide assistance to Armenia, Bulgaria,
Lithuania, Slovakia, Ukraine and Russia.

BNFL Environmental Services' winning strategy centred on the
group's long history in the region and ongoing relationship
management in the beneficiary countries.

The work will involve meeting both power plant representatives,
regulators and national officials throughout the region to agree
specific safety projects.

Following this, BNFL Environmental Services will then employ its
contract management skills to ensure maximum effectiveness of DTI
funds in providing assistance to the beneficiaries.

Ian Jamieson, project manager, BNFL Environmental Services, said:
"This work with the DTI is very important to us. BNFL
Environmental Services will play a key role in influencing the
manner in which U.K. aid is used in the specified countries.

Our role as managers of the program will be to help the
beneficiaries decide what they need, and then to work with the
DTI to establish feasibility and specific budgets.

We will then help the DTI to prepare the contract invitation to
tender, and will manage the contracts for the work on behalf of
the DTI, verifying the deliverables and ensuring that these meet
both DTI and beneficiaries' expectations.

"We were successful in winning the contract due to our in country
experience, technical capability and strong procurement
expertise. We were able to demonstrate the ability to take a
flexible approach to all aspects of the work and we aim to ensure
that the money is spent on projects which are not only feasible
and provide value for money, but which are also, importantly,
sustainable.

"This is a unique opportunity to assist the DTI and influence
future development of the region."

In July 2000 the Government announced an GBP84m Grant-in-Aid
assistance program of expenditure over three years to address
nuclear problems in FSU countries.

The budget for 2002-03 is GBP27m. This program is managed by the
DTI on behalf of a number of government departments with cross
cutting interests in Former Soviet Union nuclear legacy issues.


BRITISH AIRWAYS: Cost Reductions, Posts Better Results
-----------------------------------------------------
British Airways posted Friday a pre-tax profit of GBP65 million
(2001: GBP40 million profit) for the first quarter to June 30,
2002.

The operating profit for the first quarter was GBP158 million
(2001: GBP50 million profit).

Passenger capacity, measured in available seat kilometres (ASKs),
reduced by 14.5 % for the quarter. Revenue passenger kilometres
(RPKs) were down by 13.8 % for the quarter. Seat factor rose 0.6
points to 70.5 % in the quarter.

Net costs were down 14.6 % for the quarter, and unit costs fell
by 2.6 % in the same period. Revenue in the quarter, at GBP2,052
million, was down 10.7 %.

Passenger yields were up 5.0 % primarily due to improved
cabin mix. The improved operating results reflect significant
reductions in all areas of operating cost, including manpower,
fuel and selling.

Net debt was GBP5,866 million, down GBP428 million since the
start of the financial year. This is due primarily to repayment
of debt and a GBP182 million increase in cash to GBP1,401
million.

Rod Eddington, British Airways' Chief Executive, said: ' We are
only six months into a two year structural change program.
Despite very tough market conditions we are delivering on cost
efficiencies. We have always said our recovery will be cost
driven and not dependant on an upturn in market conditions. That
remains true.

'These encouraging results are a testament to the professionalism
and dedication of our staff around the world.'

Lord Marshall, British Airways' Chairman, said: 'The travel
market continues to be subject to considerable global economic
and political uncertainty, and is expected to remain soft for the
remainder of the year. As a result, full year total group
revenues are expected to be lower than last year and improvement
in operating results will come principally through cost
reductions.

'We remain confident that the implementation of our Future Size
and Shape program will deliver the expected efficiencies over
this and the next financial year.'

Recent strategic developments

  - Announced alliance with SN Brussels
  - Signed option agreement with easyJet to acquire DBA
  - New commercial agreement with Iberia signed
  - Extended new low fares pricing structure to 108 routes in
     Europe
  - Eight further route transfers from Gatwick to Heathrow
     actioned
  - Completed disposal of seven aircraft plus two subsequent to
     June 30
  - Manpower reductions are on track to achieve 10,000 by March
     2003

February: Future Size and Shape initiatives announced:

  - GBP650 million annualised cost saving by March 2004, with
      GBP450 million of this secured by the end of 2002/03
  - A further 5,800 manpower reductions towards a13,000 MPE
      target by March 2004
  - Significant restructuring of shorthaul business to compete
      with no frills carriers
  - New shorthaul pricing structure
  - Changes to travel agency payments
  - Cheapest fares online with the launch of Fare Explorer
  - Additional network changes including eight route transfers

Post-September 11:

  - Grounded 22 aircraft
  - 14 routes suspended and Gatwick de-hubbing strategy
      accelerated
  - 5,400 manpower reductions on top of 1,800 previously
      announced.
  - British Airways Regional (BAR) to become part of newly formed
      British Airways CitiExpress to create single regional
business

Pre-September 11:

  - 1,800 manpower reductions in response to UK foot and mouth  
      disease and global economic slowdown
  - Bought British Regional Air Lines Group and began integrating  
      UK regional subsidiaries
  - Restructuring Gatwick operations to reduce overlap with
      Heathrow
  - Completed sale of Go

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

Group Performance
Group profit before tax for the three months to June 30 was GBP65
million; this compares with a profit of GBP40 million last year.
Operating profit - - at GBP158 million - - was GBP108m better
than last year. The operating margin was 7.7%, 5.5
points better than last year.

The improvement in operating profit reflects significant cost
reductions due to the actions taken before and after September
11th and the increasing impact of the Future Size and Shape
program, which continues on track.

While passenger and cargo revenue fell due to the weak global
economy and the effects of exchange, unprofitable capacity was
reduced and efficiency actions continued in all cost areas.

Cash inflow before financing was GBP432 million for the quarter,
with the closing cash balance of GBP1,401 million representing a
GBP182 million increase versus March 31. Net debt fell by GBP428
million to GBP5,866 million.

Turnover
For the three month period, group turnover - - at GBP2,052
million - - was down 10.7% on a flying program 12.4% smaller in
ATKs. Passenger yields were up 5.0% per RPK; seat factor was up
0.6 points at 70.5% on capacity 14.5% lower in ASKs.

Cargo volumes for the quarter (CTKs) were down 4.2% compared with
last year, with yields (revenue/CTK) up 1.2%.Overall load factor
was up 1.4 points at 65.3%.

Costs
For the quarter, unit costs (pence/ATK) improved 2.6% on the same
period last year. This reflects the net cost reduction of 14.6%
on capacity 12.4% lower in ATKs.

Significant reductions were achieved in all areas of operating
cost, including manpower costs (down 13.9%), fuel costs (down
24.4%) primarily due to price and volume benefits, selling costs
(down 15.0%) mainly due to sales reductions and changes in
commission structure, and other operating costs (down 19.8%).

Non Operating Items
Net interest expense for the quarter was GBP109 million. This
included a charge for the revaluation of yen debts (used to fund
aircraft acquisitions) of GBP36 million.

Profit on disposals of fixed assets and investments for the
quarter was GBP19 million, reflecting primarily the sale of
property and aircraft. This compares with a profit on disposal
last year of GBP92 million, mainly from the disposal of our
investment in go.

Earnings Per Share
The profit attributable to shareholders for the three months was
equivalent to 3.7 pence per share, compared with last year's
profit per share of 2.4 pence.

Net Debt / Total Capital Ratio
During the quarter we generated a positive cashflow from
operations of GBP392 million. After disposal proceeds, capital
expenditure and interest payments on our existing debt, cash
inflow was GBP432 million.

This represents a GBP324 million improvement on last year,
primarily due to the improvement in operating cashflow (GBP95
million) and disposal proceeds net of capital expenditure (GBP215
million).

Borrowings, net of cash and short term loans and deposits, were
GBP5,866 million at June 30 - - down GBP428 million since the
start of the year. The net debt/total capital ratio reduced by
1.8 points to 64.2%.

At June 30 our committed undrawn facilities remained largely
unchanged at US$800 million.

Aircraft Fleet
During the quarter the Group fleet in service reduced by 9 to 351
aircraft.

Disposals included 1 Boeing 777-200, 2 Boeing 757-200, 2 Boeing
737-300 and 2 DHC-8 aircraft. In addition, 1 Boeing 777-200, 2
Boeing 757-200 and 1 Boeing 737-300 were stood down awaiting
disposal. The reductions were partially offset by the deliveries
of 2 new Airbus A320 aircraft.

Future Size and Shape
The rollout of the shorthaul initiatives announced as part of the
Future Size and Shape (FSAS) program continues. Low fares without
Saturday night stay and advance purchase restrictions are now
available on 108 routes in Europe.

Since the introduction of the new business model on Domestic
routes in April, seat factors have shown improvement.

The first phase of the distribution cost initiative was launched
on June 30 with the announcement of a new commission structure
for shorthaul sales.

On July 31, we announced changes to the winter schedule for 2002
which involve further route transfers from Gatwick to Heathrow,
including the elimination of duplication across the two airports,
and increased capacity to popular destinations.

Moving from Gatwick to Heathrow are services to San Diego,
Denver, Phoenix, Harare, Lusaka, St Petersburg, Tripoli, Sofia
and Athens. The route switches together with the targeted
capacity growth, which includes additional services to New York,
reflect the FSAS network profitability strategy.

Forecast capital spend for the year remains on target at GBP450
million. FSAS disposal proceeds at June 30 were GBP352 million
(including GBP218 million in 2001/ 02) and the remaining GBP148
million to achieve the GBP500 million target will be delivered by
year end.

The group manpower reduction since August 2001 totals 9,177
including 1,397 relating to the disposal of World Network
Services.

Alliance development
On July 11, we announced a commercial relationship (subject to EC
regulatory approval) and a Heathrow slot exchange with SN
Brussels Airlines, whereby the SNBA flight code will be placed on
all British Airways services between Brussels and London from the
start of the 2002/03 winter season.

On July 19, we unveiled plans to deepen our relationship with
Iberia through the signing of a commercial agreement to work more
closely across our complementary global networks.

When fully developed and implemented, benefits of the new deal
will include improved frequent flyer programs, shared airport
facilities to improve transfer services at Madrid, Barcelona and
London, extension of code-sharing services, co-ordination of
sales and marketing programs and joint network planning.

We continue to strengthen links with other oneworld partners,
including the expansion of our current codesharing arrangements
with Finnair through the addition of destinations in South
Africa, Canada and the

United Kingdom Outlook
The travel market continues to be subject to considerable global
economic and political uncertainty and is expected to remain soft
for the remainder of the year.

As a result full year total group revenues are expected to be
lower than last year and improvement in operating results will
come principally through cost reductions.

We remain confident that the implementation of our Future Size
and Shape program will deliver the expected efficiencies over
this and the next financial year.


COOKSON GROUP: Rights Issue Strengthened After Shares Jump
----------------------------------------------------------
Cookson's GBP277.5 million rights issue stayed on track last
Thursday after the engineering group's shares jumped 23% to
27.5p, a report from the Independent said.

The percentage jump in Cookson's shares took the stock above the
25p per share price set for the cash call, which is needed to cut
debts of GBP750m, the paper said.

Cookson is expected to seek shareholder approval for the rights
issue on Monday. A deadline is set on August 28 for shareholders
to agree on whether or not to subscribe to the fund raising, the
daily added.

Previously, sentiments around Cookson's fundraising have
experienced a major turnaround, after its shares plunge to less
than 20p last week, the Independent said.


DANKA BUSINESS: Issues Notice of Interest in Shares
---------------------------------------------------
Danka Business Systems PLC was notified on August 1 that FMR
Corp. that, as of 23  July  2002,  FMR Corp. (the parent holding  
company  of Fidelity  Management & Research Company (FMRCO),
investment manager for US mutual funds, and Fidelity Management  
Trust Company (FMTC), a US state chartered bank which acts  as  a
trustee or investment manager of various pension and  trust
accounts) has non-beneficial interest in a total of 12,797,200  
Ordinary  Shares,  representing  5.16%  of  the company's issued  
Ordinary Share capital.  

FMRCO have themselves a notifiable  interest  totalling  
12,297,200 Ordinary  Shares, representing 4.96%, which is
included in the holding disclosed for FMR Corp.

Edward C. Johnson III also has a notifiable interest by virtue of
his shareholding in FMR Corp. The Ordinary Shares held  by  FMRCO
are registered in the name of  State  Street Bank, Chase
Manhattan Bank, Brown Brothers and HSBC and  the Ordinary Shares
held by FMTC are registered in the  name  of State Street Bank.

Danka Business Systems PLC, headquartered in London and St.
Petersburg, Florida, is one of the world's largest providers of
office imaging solutions, related services, and supplies.

Danka provides office products and services in more than 20
countries around the world. For additional information about
copier, printer and other office imaging products from Danka,
visit our web site at www.danka.com.


ENERGIS PLC: Dixons Signs GBP15MM Deal With Energis
---------------------------------------------------
Energis has signed a GBP15 million deal with Dixons Group plc to
provide advanced telecom services for its offices and 1,150
retail branches, the company announced last week.

The contract gives Dixons greater flexibility and scope for cost
savings.

Energis is providing Direct Access Telephony at Dixons
Headquarters, which carries both inbound and outbound calls on
Energis lines.

The deal also includes a Carrier Pre Selection solution, which
will be deployed nationwide at the retail branches of Curry's, PC
World, Dixons and the Link. This enables them to easily route
their telephony traffic over the Energis network and monitor
billing and performance information on-line.

This is the second long term contract Energis has secured with
Dixons. Energis already provides a complex hosting service for
all of Dixons e-commerce websites.

Phil Burchell, Managing Director of Strategic Solutions at
Energis, said "Energis has a long history of working with Dixons
in developing and delivering customised solutions to support
their evolving business needs. We're proud of our partnership
with Dixons and look forward to working with them on future
projects."

Dixons commented: - "As our business continues to grow we need a
system which enables us to deal efficiently with millions of in
and outbound calls every year and to manage our costs. This
agreement builds on our existing successful relationship with
Energis.

Energis -- www.energis.co.uk  -- is a leading UK
telecommunications, internet and e-business solutions provider.
It is focused on the business marketplace offering a portfolio of
data, voice, call centre, connectivity, complex managed hosting
and managed application services.

Energis hosts more than 25,000 commercial websites and around 1
billion call minutes a week are routed over the Energis network.

Major customers include the BBC, Boots, Thomas Cook, Freeserve
and Tesco.

The Dixons Group is Europe's largest specialist retailer of
consumer electronics. It has 1,280 stores across the UK, Ireland,
the Nordic countries, France and Spain.

It trades as Dixons, Currys, PC World and The Link in the UK and
Ireland, Elkjop in the Nordic countries and PC City in Spain and
France. Since November 2001 it has owned 24% of the Italian
electrical retailer, UniEuro.

The Group specializes in the sale of high technology consumer
electronics, personal computers, domestic appliances,
photographic equipment, communication products and related
financial and after sales services.

Contact Information:

Helen Wells
Energis
Telephone: +44 (0)20 7296 5555
Mobile: 07800 124001
Email: helen.wells@energis.com

Marta Judge
Energis
Telephone: +44 (0)20 7206 5555
Mobile: 07800 021810
Email: marta.judge@energis.com

Carol Spicer
Dixons Group
Telephone: +44 (0) 1442 354285


GILBERT GROUP: Goes Into Receivership Due to High Debt Levels
-------------------------------------------------------------
James Gilbert Group, a maker and designer of rugby clothing has
been recently forced into administrative receivership due to high
debt levels, a report from Scrum.com said.

The group has an annual turnover of GBP7million. It has 47
employees from its rugby head office in England and has
operations in Australia, New Zealand and France.  

Pricewaterhouse Coopers is the company handling the receivership.
Its director Stuart Maddison said that there is confidence that
with the support of the management team, customers and suppliers,
the Gilbert will eventually find a buyer. He added, "the name
Gilbert is as synonymous with rugby as Twickenham. It enjoys an
unparalleled reputation in the sport," Scrum.com reported.


JYRA: Clarifies Sale of Assets From Liquidators
-----------------------------------------------  
Jyra Research Inc. announces that certain assets of its wholly
owned subsidiary, Jyra Research Ltd., an English corporation in
liquidation proceedings, have been sold to Chevin Limited, an
English provider of information technology products.

Chevin Limited did not purchase any rights to use the name Jyra
or Jyra Research, nor did Chevin Limited purchase any of the
stock of Jyra Research Inc. or Jyra Research Ltd. (a Chevin
Limited press release dated August 1, 2002 mistakenly stated that
Chevin Limited had acquired Jyra Research).

Up until Jyra Research Ltd. was placed into Creditors Voluntary
Liquidation in June, both Jyra Research Inc. and Jyra Research
Ltd. had pursued six parties from the United Kingdom, USA and
Canada, to acquire all or part of its business assets.

Chevin Limited was the only party to make an offer for
various assets and it was that offer that the Liquidators
accepted since no other potential purchasers were interested.

As required by English procedures, a Liquidator had been
appointed to dispose of the company's assets (upon appointment of
the Liquidators, the former management of Jyra Research Ltd.
ceased to have any managerial control over the company).

The Liquidators elected to sell Jyra Research Ltd.'s Intellectual
Property Rights, goodwill and trade information along
with some computer and network equipment, to Chevin Limited for
(pound)37,200.

As a condition of the sale, Jyra Research Inc. was required to
waive all rights that it may have had in the intellectual
property of Jyra Research Ltd., and refrain from developing,
selling or dealing in products providing functionality of that
provided by the Jyra Research Ltd.
products for a period of 3 years, in exchange for a payment of
(pound)22,500.

Jyra Research Inc. has explored but has been unsuccessful in
securing any alternative business for itself. The Company, since
it has no business, believes its equity securities to be
worthless and it has insufficient financial resource to make any
distribution to shareholders.

The Company's Board of Directors is seeking advice concerning
liquidating or dissolving the Corporation.


MARCONI PLC:  Sells Business to Finmeccanica for GBP387 MM
----------------------------------------------------------
Marconi plc announced August 2 that it has completed the sale of
its Strategic Communications business (Marconi Mobile Holdings
SpA) to Finmeccanica SpA (Milan: SIFI) for approximately GBP387
million (EUR614 million).

The sale is not conditional on any approvals or consents. The
proceeds, received today in the form of cash and in debt assumed
by Finmeccanica, have had the effect of reducing Marconi's net
debt.

Mike Parton, Marconi chief executive, said: 'We have achieved a
very positive outcome for Marconi and for Strategic
Communications. Finmeccanica will be an excellent home for the
business, its customers, management and employees.'

Strategic Communications designs, manufactures and supplies
communications and information systems, primarily for defence and
security applications, including ground, naval, avionic
communications/command and control systems.

The company employs approximately 4,000 people in Italy, UK,
Germany and Turkey and, in the financial year ended 31 March
2002, had sales of approximately GBP308 million (EUR502 million).

In the year-ended 31 March 2002, the Strategic Communications
business made an operating contribution to Marconi plc's profits,
before exceptional items, of approximately GBP30 million (EUR49
million). At the same date the business had net assets of
approximately GBP201 million (EUR328 million).

The sale of Marconi Mobile Holdings SpA does not include
Marconi's Public Mobile Radio and Private Mobile Radio business
units, which were demerged from Marconi Mobile Holdings before
August 2's sale.

Finmeccanica is a high technology group active in the design and
manufacture of aircraft, helicopters, satellites, missile
systems, radars, components for power generation, trains,
information technology services.

The Finmeccanica Group is the largest in Italy and ranks among
the largest international groups in the sectors in which it
operates - Aerospace, Defence, Energy, Transportation and
Information Technology - developing highly sophisticated products
and systems that require strong engineering and managerial
skills, the use of electronics, information technology and
innovative materials.

The company, whose securities are traded on Milan Stock Exchange,
is headquartered in Italy.


MOTHERCARE PLC: Appoints Rex Peacock as Non-executive Director
--------------------------------------------------------------
Mothercare plc announced on August 1 the appointment of Ian Rex
Peacock as a non-executive director of the company with effect
from 1st August 2002.

The following details are submitted pursuant to chapter 16,
paragraph 4 of the listing rules of the Financial Services
Authority, as at the effective date of his appointment as non-
executive director of Mothercare plc (1 August 2002).

a. directorships of other Publicly quoted companies in
the last 5 years:

    MFI Furniture Group plc
    i-documentsystems group plc

b. the names of all companies (public or private) and
partnerships of which such person has been a director or partner
at any time in the previous five years, indicating whether or not
the individual is still a director or partner.

It is not necessary to list all the subsidiaries of a company of
which the person is or was also a director;

    MFI Furniture Group plc (current chairman)
    Lombard Risk Management plc (current director)
    i-documentsystems group plc (current director)
    Norwich and Peterborough Building Society (current director)
    WRVS Office Premises Limited (current director)

c. details of any receiverships, compulsory liquidations,
creditors voluntary liquidations, administrations, company
voluntary arrangements or any composition or arrangement with its   
creditors generally or any class of its creditors of any company
where such person was a director with an executive function at
the time of or within the 12 months preceding such events;

Mr Peacock was a director of Kleinwort Benson Limited from 1985
to May 1994. In January 1994 the company was publicly criticised
by LIFFE (London International Financial Futures and Options
Exchange) regarding its futures trading activities and fined
GBP15,000.

Mr Peacock was not directly responsible for this area of business
and was not publicly criticized himself by LIFFE in relation to
it.


SCOOT.COM PLC: Completion of Disposal, Change of Name to Timeload
-----------------------------------------------------------------
The Board of Scoot.com plc announced Thursday that it completed
on August 1 the disposal of the Scoot Business to BT Group plc.

The Scoot Business comprised substantially all of the operations
of the company.

In accordance with the terms of the disposal, the company has now
changed its name to Timeload plc. Timeload plc will remain listed
on the London Stock Exchange as a cash shell.

Terry Martin has also resigned as managing director of the
Company as from today. The Board of the Company would like to
thank Terry for his valuable contribution.

Contact Information:

Scoot.com plc/Timeload plc             
Dick Eykel, chairman       
Telephone: 01895 520 000


WORLDCOM: Court Charges Former Execs Sullivan, Myers With Fraud
----------------------------------------------------------------
WorldCom Inc.'s former chief financial officer Scott Sullivan and
its former controller David Myers were formally charged with
fraud in a New York court after they turned themselves in to the
FBI, the Independent said.

Both former top executives were charged of hiding about USD3.8bn
of expenses and listing them under capital expenditures, allowing
WorldCom to inflate its earnings when it was actually losing
money, the paper said.

Mr. Bernie Ebbers, WorldCom's former chief executive who quit two
months before he accounting irregularities were disclosed, was
absent in court. It is said that authorities may offer Mr
Sullivan and Mr Myers a plea bargain in return for their co-
operation, which would presumably strengthen a subsequent case
against Mr Ebbers, the daily said.

According to the daily, under a new corporate reform and
accounting oversight bill, which Congress passed last week, Mr.
Sullivan and Mr. Myers could face prison terms of up to five to
ten years for conspiracy to commit fraud and a USD1 million fine
on counts of fraud and for falsely filing accounts, if they would
be convicted.

The charges claim that both men withdrew information from
WorldCom's auditor, Arthur Andersen and from the Securities and
Exchange Commission. The SEC has filed its own civil fraud
charges against the telecoms company on the basis of "accounting
irregularities of unprecedented magnitude," the paper said.

After the disclosure of the accounting irregularities, WorldCom,
which is the second largest US telecoms company collapsed with a
debt burden of USD40 billion. It filed for Chapter 11 protection
on July 21.

Since then, the company's new chief executive John Sidgmore had
pledged that the company would stay intact and had led efforts in
negotiating long-terms deals with banks and creditors to ensure
the company's survival. The company recently received an
emergency-court approved Usd2 billion package, the Independent
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-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso, Maria Lourdes Reyes and Jean Claire Dy,
Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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