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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

                 Friday, November 1, 2002, Vol. 3, No. 217


                              Headlines


* F R A N C E *

ALCATEL: Reports Net Loss of EUR1352 MM on Third Quarter Results
ALCATEL: Alcatel Optronics' Sales Down 48.8% to EUR13.0 MM
ALCATEL: Announces Partial Sale of Its Shareholding in Nexans
ALCATEL: Provides Expansion for NextGenTel in Norway
PPR: Confirms Discussions With Credit Agricole on FINAREF
SCOR: Warns of EUR250 MM Net Loss for 2002
SCOR: A.M. Best Places Rating of SCOR Under Review
SCOR: S&P Puts SCOR on CreditWatch on Warning of EUR250MM Loss
SCOR: Profit Warning Prompts Moody's to Put Ratings Under Review
VIVENDI UNIVERSAL: Moody's Lowers Senior Implied Rating to Ba3

* G E R M A N Y *

ABB: Maintains Commitment to Keep U.S.-based Operation

* I R E L A N D *

ELAN CORPORATION: Reports 3Q Results and Recovery Plan Update

* P O L A N D *

NETIA HOLDINGS: Telefonia's Owner Pushes Telefonia Dialog Merger
NETIA HOLDINGS: Introduces New Tariff Plans for ILD Calls
NETIA HOLDINGS: Requests Review of Nasdaq De-Listing

* R U S S I A *

OAO UNITED: S&P Affirms 'CCC+' Long-Term Corporate Credit Rating
RUSSIAN BANKS: Moody's Places B1 Ratings on Review

* S W E D E N *

LM ERICSSON: Signs Contract to Supply Overlay System in Brazil
LM ERICSSON: Signs Contract to Deploy Network in Nicaragua

* S W I T Z E R L A N D *

ZURICH FINANCIAL: Announces Completion of Capital Increase

* U N I T E D   K I N G D O M *

ABERDEEN ASSET: Former Director Says 35 Trusts Face Collapse
ABERDEEN ASSET: Notification of Major Interests in Shares
BRAINSPARK PLC: Appoints Nominated Broker
INTERNATIONAL POWER: Moody's Affirms Ba3 Senior Unsecured Rating
MARCONI PLC: Admits Acquiring GBP3.5 Million Worth of Real Estate
MYTRAVEL GROUP: Notification of Major Interests in Shares
P&O PRINCESS: Fitch Maintains Rating Watch Negative Status


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


ALCATEL: Reports Net Loss of EUR1352 MM on Third Quarter Results
----------------------------------------------------------------
- Net debt down to Euro 1 billion due to cash flow
- Gross margin up 2 points and strong cost reduction sequentially
- Limited impact of sales decline on profitability
- Net income impacted by Euro 1.1 billion in exceptional reserves

The Board of Directors of Alcatel (Paris: CGEP.PA and NYSE: ALA)
reviewed and approved third quarter 2002 results. Third quarter
sales decreased sequentially by 17.2% to Euro 3,508 million and
by 19.0% on a comparable basis (excluding the impact of Alcatel
Shanghai Bell). Loss from operations was registered at Euro 227
million, and Net Loss at Euro 1,352 million or diluted Euro
(1.14) per A share (USD (1.13) per ADS). Third quarter sales
decreased by 37.5% over the same quarter last year.

Key Figures       Third  Second  Third   First Nine   First Nine
In Euro million  Quarter Quarter Quarter Months       Months
except for EPS     2002   2002    2001    2002        2001

Profit & Loss
Net Sales       3,508    4,235   5,613   12,039      18,587
Income
from Operations (227)    (177)  (215)     (747)          7
Net Income
pre-Goodwill
& MI          (1,210)  (1,261)  (351)   (3,191)    (1,731)
Net Income     (1,352)  (1,438)  (558)   (3,626)    (3,465)
EPS (Class A)
Diluted        (1.14)   (1.20) (0.49)    (3.06)     (3.05)
E/ADS (Class A)*(1.13)   (1.19) (0.48)    (3.02)     (3.01)
Number of Shares
(in billions)    1.17     1.16   1.14      1.16       1.14

* E/ADS has been calculated using the US Federal Reserve Bank of
New York noon Euro/dollar buying rate of USD0.9879 as of
September 30, 2002.

Serge Tchuruk, Chairman and CEO:

"In this particularly difficult market environment, we are well
on our way to establishing a foundation which will allow Alcatel
to come out of this crisis financially healthy and strongly
competitive. During the third quarter our cash position continued
to improve: cash flow, before the securitization buy back, was
strong for the fifth consecutive quarter and cash on hand
increased to Euro 5.1 billion leading to a decrease in net debt
to Euro 1.0 billion. In addition, we are achieving our objectives
in reducing our cost structure: on a comparable basis fixed costs
have decreased by 10% over Q2 and by 26% over the end of last
year.

While we did see a drop in sales slightly higher than we
anticipated during the quarter, operating profit in the majority
of our businesses resisted well and we registered a 2 point
sequential increase in our gross margin. Nevertheless, with the
situation of some of our customers having deteriorated further,
we booked a higher level of exceptional write-offs and provisions
than originally forecast, which impacted net income by
approximately Euro 1.1 billion."

Outlook:

Commenting on Alcatel's business outlook, Tchuruk said:

"For the fourth quarter, we are expecting sequential double digit
revenue growth. An improvement in operating income should be
achieved unless additional write-offs and provisions appear to be
required to safely absorb the effects of any further
deterioration in the market conditions currently seen for 2003.
As reinforced by our Q3 performance, we expect our year-end net
debt to be below the Euro 2.0 billion level.

We are confident that Alcatel will return to profitability in
2003. In 2002 operating losses should be confined to our Optics
business, currently under intensive restructuring. All other
segments are at around breakeven. In 2003, our cost target is to
lower the quarterly sales breakeven to Euro 3.0 billion by year-
end. This is about 25% below current levels and way below our
estimate of next year's business. We have recently seen renewed
interest for our broadband access products, especially in Europe
and Asia. We also continue to gain market share in wireless
infrastructure, with a good level of profitability even after
funding R&D for third generation technology. Non-carrier telecom
equipment and software businesses, which amounts to a good one-
third of our sales, act as a buffer against the carrier equipment
Capex downturn. And finally, our broad geographic expansion is
paying off with the hedging resulting from the diversity of our
markets and customers. Overall, in this very challenging market,
Alcatel employees have performed extremely well, keeping their
motivation despite adverse conditions."

Business Highlights:

Segment Breakdown Third  Second  Third   First Nine   First Nine
In Euro millions Quarter Quarter Quarter Months       Months
                   2002   2002    2001   2002         2001

Sales:
Carrier Networking 1,720  1,969  2,490   5,774        8,584
Optics               704  1,012  1,777   2,763        5,674
e-Business           506    603    732   1,700        2,359
Space & Components   660    748    793   2,110        2,653
Other & Eliminations (82)  (97)  (179)   (308)        (683)
Total              3,508  4,235  5,613  12,039       18,587
Income from Operations:
Carrier Networking    30     24   (104)   (65)         (105)
Optics              (225)  (176)    29   (554)          435
e-Business           (32)   (18)  (144)   (78)         (486)
Space & Components    19     31     35     65           159
Other                (19)   (38)   (31)  (115)            4
Total               (227)  (177)  (215)  (747)            7

Third Quarter Business Update (Sequential):

Carrier Networking

Third quarter revenue of Euro 1,720 million was down
sequentially12.6% from Euro 1,969 million, due to decreases
across the segment. Broadband networking revenues were down due
primarily to the U.S. DSL market and not entirely offset by the
pickup toward the end of the quarter in Europe and China. GSM
infrastructure performed well thanks to continuing commercial
successes, particularly outside Western Europe. Applications
software and voice switching declined slightly. Revenues for
network design, build and operational services were also down
slightly due to market conditions.

Income from operations amounted to Euro 30 million, a slight
increase over Q2. Profitability was maintained despite the
decrease in sales as fixed cost reductions are having a
significant impact. Mobile networking continued to have a good
level of profitability, while broadband networking resisted well
despite an adverse market environment. Advances were also
recorded in network management, services and software
applications.

Optics

Third quarter revenue of Euro 704 million was down sequentially
30.4% from Euro 1,012 million. This decrease is primarily due to
terrestrial optical networking revenues, particularly in Europe
and the U.S. Submarine sales declined over the previous quarter
as well as optical fiber as operators are still working through
their inventories. Optronics revenues amounted to Euro 13 million
as compared to Euro 25 million last quarter.

Loss from operations was Euro (225) million compared to a loss of
Euro (176) million in Q2. The segment's profitability continued
to deteriorate, as the effect of intensive cost cutting is not
yet fully felt, particularly in the terrestrial business.
Operating margins slightly decreased for optical fiber,
reflecting the drop in sales. Submarine networking margins
continued to improve, due to a substantial reduction in fixed
costs. Optronics posted an operating loss during the quarter of
Euro (45) million.

Full details of Alcatel Optronics 3rd quarter 2002 performance
are explained in a separate earnings release today.

e-Business

Third quarter revenue of Euro 506 million was down sequentially
16.1% from Euro 603 million primarily due to the seasonal drop in
GSM handset volumes, which decreased to 2.6 million units
compared with 3.0 million in Q2. Enterprise market conditions
deteriorated toward the end of the quarter, with little
investment by small and medium businesses and a push-out of
demand by large companies. Genesys' software applications sales
were maintained despite the market downturn. Voice and data
networking solutions sales were also stable.

Loss from operations was Euro (32) million compared to a loss of
Euro (18) million in Q2. There was a slight margin deterioration
across the board resulting from the drop in volumes. The handset
business was impacted by the usual seasonality effect.

Space & Components

Third quarter revenue of Euro 660 million was down sequentially
11.8% from Euro 748 million. There was a decline across all
component product lines, primarily due to the economic slowdown.
Satellite revenues also declined slightly.

Income from operations was Euro 19 million compared with Euro 31
million in Q2. Margins were effected by the drop in sales but
resisted due to the lower fixed cost structures that have been
put into place.

Third Quarter 2002 Results (unaudited)

PROFIT AND LOSS STATEMENT:

- Net Sales: Euro 3,508 million vs. Euro 5,613 million 3Q 01
(down 37.5%) and vs. Euro 4,235 million sequentially (down
17.2%).

- Geographical distribution of sales:
W. Europe: 45%
Other Europe: 7%
USA: 15%
Asia: 19%
RoW: 14%

- Gross margin: 27.5% (25.5% for Q2 2002).

- Selling, general and administration ("SG&A") costs: Euro (669)
million (19.1% of sales).

- Research and development ("R&D") expenses: Euro (523) million
(14.9% of sales).

- Income from operations: Euro (227) million, which included Euro
(65) million in inventory depreciation vs. Euro (177) million,
which included Euro (45) million in inventory depreciation in Q2
2002.

- Earnings before tax and amortization of goodwill: Euro (1,113)
million and included:
- Net financial loss of Euro (520) million compared to Euro (291)
million during the second quarter.
- Restructuring costs of Euro (331) million compared to Euro
(504) million in Q2 2002.
- Net other revenue/(expenses) of Euro (35) million [composed of
Euro 217 million in capital gains and Euro (252) million in
provisions] vs expenses of Euro (254) million in Q2
- Net Income Pre-Goodwill: Euro (1,210) million vs. Euro (1,261)
million in the second quarter.

- Net Income: Euro (1,352) million and included a related tax
charge of Euro (85) million, share in net income of equity
affiliates and discontinued activities of Euro (12) million and
goodwill amortization of Euro (152) million.

- Diluted A share EPS: Euro (1.14) [USD(1.13) per ADS] based on
an average of 1,168 million A shares.

BALANCE SHEET ITEMS:

- Operating working capital: Euro 2,696 million, a sequential
decrease of Euro 536 million:
*Net Inventory: Euro 3,219 million, a sequential decline of Euro
197 million.
*Trade Receivables: Euro 4,828 million, a sequential decrease of
Euro 529 million.
*Trade Payables and customers' deposits: Euro 5,351 million, a
decrease of Euro 191 million.
- Cash and equivalents: Euro 5,101 million, compared to Euro
4,805 million at the end of Q2 2002.

- Net Debt: Euro 1,029 million.

- Gearing: 16%

- Operating Cash Flow: Euro (68) million.

First Nine Months 2002 Results (unaudited)

PROFIT AND LOSS STATEMENT:

- Net Sales: Euro 12,039 million vs. Euro 18,587 million in
corresponding period 01 (down 35.2%)

- Geographical distribution of sales:
W. Europe: 42%
Other Europe: 7%
USA: 17%
Asia: 18%
RoW: 16%

- Gross margin: 26.0% (27.1% in corresponding period 01).

- Selling, general and administration ("SG&A") costs: Euro
(2,215) million (18.4% of sales).

- Research and development ("R&D") expenses: Euro (1,664) million
(13.8% of sales).

- Income from operations: Euro (747) million

- Earnings before tax and amortization of goodwill: Euro (3,141)
million and included:
- Net financial loss of Euro (882) million compared to Euro
(1,319) million in corresponding period 01.
- Restructuring costs of Euro (974) million compared to Euro
(1,526) million in corresponding period 01.
- Net other revenue/(expenses) of Euro (538) million [composed of
Euro 413 million in capital gains and Euro (951) million in
provisions] vs Euro 242 million in corresponding period 01.
- Net Income Pre-Goodwill: Euro (3,191) million vs. Euro (1,731)
million in corresponding period.

- Net Income: Euro (3,626) million and included a related tax
credit of Euro 81 million, share in net income of equity
affiliates and discontinued activities of Euro (131) million and
goodwill amortization of Euro (442) million.

- Diluted A share EPS: Euro (3.06) [USD(3.05) per ADS] based on
an average of 1.160 million A shares.

About Alcatel
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, Alcatel
operates in more than 130 countries.

To see Alcatel's full financial results:
http://bankrupt.com/misc/Alcatel1.pdf


ALCATEL: Alcatel Optronics' Sales Down 48.8% to EUR13.0 MM
----------------------------------------------------------
Alcatel Optronics (Paris: CGO and NASDAQ: ALAO) on Wednesday
reported third quarter results with sequential sales down by
48.8% to Euro 13.0 million. Loss from operations was registered
at Euro (45.4) million. Net loss amounted to Euro (78.6) million.
Sales decreased by 86.3% over the same period last year.

To see table: http://bankrupt.com/misc/Optronicstable.htm

*This Notional EPS is calculated on the net results of the
Alcatel Optronics division, divided by the notional number of
Alcatel Class O shares. E/ADS has been calculated using the US
Federal Reserve Bank of New York noon Euro/dollar buying rate of
USD0.9879 as of September 30, 2002.

Jean-Christophe Giroux, CEO:

"During the third quarter we saw a further deterioration of our
markets: inventory is still backed up at the customer level and
demand remains very weak, at least for the short term. However,
even in a further deteriorating market, I am confident that we
will from now on deliver a sequential improvement of our
financial structure, thanks to cost-cutting actions."

"To accelerate on restructuring, we've launched on September 17th
our Strategic Refocus Plan that will eventually articulate our
business model in 2 streamlined centers of excellence: Nozay,
France, for active components and Livingston, Scotland, for
passive components. This is coherent with our belief that Hybrid
integration represents the next evolution of this industry, with
Alcatel Optronics being in a position to leapfrog competition and
confirm its position as a key player in the next generation
markets."

"Looking ahead, visibility is still very poor for the medium to
long term. For the fourth quarter, we are anticipating sales to
be down sequentially by 30-40% with an improvement in operating
profit resulting from our cost cutting efforts. "

Third Quarter 2002

Sales for third quarter 2002 decreased by 86.3 % to Euro 13.0
million compared with Euro 95.0 million in third quarter 2001.
Gross profit/(loss) amounted to Euro (24.3) million compared with
Euro 10.8 million in the same period last year. SG&A amounted to
Euro 9.9 million and R&D amounted to Euro 11.2 million. Loss from
operations was registered at Euro (45.4) million. Financial loss
amounted to Euro (2.5) million. Restructuring costs amounted to
Euro (10.7) million. Other revenue amounted to Euro 2.8 million.
Net loss was registered at Euro (78.6) million compared with net
loss of Euro (9.9) million in third quarter 2001.

About Alcatel Optronics
Alcatel Optronics designs, manufactures and sells high
performance optical components, modules and integrated sub-
systems for use in terrestrial and submarine optical
telecommunications networks. Alcatel Optronics is a leading
supplier of DWDM lasers, photodetectors, optical amplifiers,
high-speed interface modules and key passive devices such as
arrayed waveguide multiplexers and Fiber Bragg Grating filters.
It also has experience in integrating active and passive
components and modules into sub-systems. The Optronics Division
is part of Alcatel's Optics Group which comprises Alcatel's
world-leading activities in optical networking, including
submarine and terrestrial transmission systems, fiber optics and
optical components.

To see the company's full financial results:
http://bankrupt.com/misc/AlcatelOptronics.pdf


ALCATEL: Announces Partial Sale of Its Shareholding in Nexans
-------------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA) announced on Wednesday the
sale to Nexans of 1.5 million shares of Nexans i.e. 6.5% of the
share capital of Nexans and 30% of Alcatel's share in Nexans at
today's average weighted price. This transaction amounts to Euro
19.14 millions.

Upon the closing of the transaction, Alcatel's shareholding in
Nexans will amount to 15%.

About Alcatel
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, Alcatel
operates in more than 130 countries.


ALCATEL: Provides Expansion for NextGenTel in Norway
----------------------------------------------------
Alcatel's Broadband Portfolio is Foundation for Rapid Expansion
in Norwegian Home and Business Market

Alcatel (NYSE:ALA), the world leader in broadband access
technology, announced that NextGenTel has selected Alcatel to
provide a managed portfolio of high-speed access equipment to
offer nationwide broadband services to Norwegian residential and
corporate users.

Determined to take a substantial share of a growing Norwegian
broadband market, NextGenTel will deploy the Alcatel 7300
Advanced Services Access Manager for both Asymmetric Digital
Subscriber Line (ADSL) and symmetrical DSL broadband services to
home and business subscribers.

"Alcatel's product offering significantly enhances our drive to
maintain a cost-efficient, high-growth business model in a very
demanding market. The solution offered by Alcatel smoothly
integrates to our existing IP-based network infrastructure.
Compact and reliable, the Alcatel broadband access platforms are
a powerful addition to our operations, both in terms of
technology and in terms of business credibility," said Olav
Stokke, managing director of NextGenTel.

NextGenTel's choice of Alcatel's solutions is further evidence of
Alcatel's market leading position and commitment to its
customers. To date, Alcatel has reached a solid market base in
Norway with a current market share of 70 percent.

"Alcatel's DSL solution offers advanced functionality and an
evolutionary path that matches NextGenTel's needs," said Michel
Rahier, president of Alcatel's broadband networking activities.
"Alcatel's leadership in broadband access solutions will ensure
NextGenTel remains at the forefront of delivering new broadband
services to its customers."

About NextGenTel

NextGenTel Ltd, headquartered in London, is the parent holding
company of NextGenTel Norway AS and its subsidiary NextGenTel AS.
In addition, NextGenTel Ltd. has registered companies/offices in
Sweden and other European countries. NextGenTel is a DSL provider
offering DSL based services, access to contents via its broadband
portal BroadPark, full Internet services, IP based services (VPN)
and IP based telephony in the future. NextGenTel focuses on
residential users, small and medium businesses and home office
concepts for large enterprises. Its IP and Web based home office
concept is unique, cost efficient and adds to the total profile
of NextGenTel of providing the best value for money solutions to
sophisticated users. The company bases its operations and
deployment on a concept of outsourced activities enabling sales
and market driven operations with a fast, cost efficient and
massive rollout allowing the company to offer new services in new
areas at a remarkable pace. Further, strong process control and
focus on capital employed has successfully established the
company as a strong market player in Norway with a minimum of
investments per active customer. Company Web site at
http://www.nextgentel.com.
About Alcatel

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, Alcatel
operates in more than 130 countries. For more information,
http://www.alcatel.com.

Note:

It is reported in TCR-Europe's October 14 issue that analyst Ben
Cohen of UBS Warburg believes that Alcatel will be pressured to
launch a capital increase--although fellow analyst, Sean Faughnan
of Credit Suisse First Boston, believes otherwise. Mr. Cohen
predicts the need for the company to increase capital, with
negative consequences for its stock-market performance.

JP Morgan, meanwhile, estimates that the junk-bond status of the
company's debts will cost the group EUR380 million in the third
quarter.

CONTACT:  Alcatel
          Investor Relations
          Peter Campbell
          Phone: 972/519-4347
          Peter.campbell@alcatel.com
          or
          Industry Analyst Contact
          Julie Buckley
          Phone: 707/792-7820
          E-mail: Julie.buckley@alcatel.com


PPR: Confirms Discussions With Credit Agricole on FINAREF
---------------------------------------------------------
The PPR Group confirms holding exclusive discussions with Credit
Agricole SA regarding the sale of its Credit and Financial
Services activity.

The scope of the sale would cover all of FINAREF's activities
excluding Facet, the sale of which is the subject of discussions
that had already been announced on October 25th. The total amount
of this transaction would exceed Euro 2.5 billion, or 18 times
the average of the estimated net income of those activities over
the 2002-2003 period.

The sale would be completed in two stages : 61% in January 2003
and 29% in January 2004. The remaining 10% interest in Finaref
that the PPR Group would maintain, would underscore the will of
the two groups to reinforce the long-term relationship between
Finaref/Credit Agricole on the one hand, and PPR's Retail
companies on the other hand, which mirrors the transaction under
consideration regarding Facet. Pursuant to these agreements,
PPR's Retail companies would retain full control over the
customer relationship, of their client databases and of their
marketing policies.

For PPR, the valuation of all the divested activities, including
the exceptional dividends received by the Group in relation to
the Facet and Finaref transactions, would exceed 3.6 billion
euros. This would enable the substantial reinforcement of the
Group's financial structure.

For Credit Agricole SA, this acquisition would significantly
strengthen the Group's position in the consumer credit industry,
a business in which Credit Agricole has become one of Europe's
leaders in only ten years. Already today, with Sofinco, Credit
Agricole is among the top players in consumer credit in Europe.
The integration of Finaref, which has outstanding loans of Euro
4.3 billion and a portfolio of 6.5 million private cardholders,
would be accompanied by long-term agreements with the large
retail formats of the PPR Group such as La Redoute, Fnac,
Printemps and Ellos in Scandinavia. It would therefore constitute
a major strategic opportunity for Credit Agricole.

Serge Weinberg, Chairman of the Pinault-Printemps-Redoute
Management Board and CEO, stated "this transaction is a further
illustration of the quality of our assets. It also reflects the
superb work achieved by Finaref's teams. Thanks to their know-
how, Finaref has become the leader of private cards in France.
Through this agreement Finaref will become a full subsidiary of
Credit Agricole Group and will therefore be backed by a first-
rank banking partner which will provide Finaref with the means to
pursue its growth and enable its employees to benefit from new
development prospects. Thanks to this sale, the Group confirms
its capacity to lead its development on a solid financial basis."

Jean Laurent, Chief Executive Officer of Credit Agricole SA also
commented: "The Finaref acquisition is a fantastic transaction
which reflects the strategic will of Credit Agricole to
strengthen its leadership in retail banking in France, all the
while continuing the development of its European dimension. The
French Retail Banking activity already accounts for 35% of the
ordinary income of Credit Agricole SA and the acquisition of
Finaref will further strengthen the basis of our activities with
recurring revenues."

The transaction is subject to the approval of the regulatory
authorities.

CONTACT:  PPR
          Analysts/Investors:
          David Newhouse
          Phone: + 33 1 44 90 63 23
          Alexandre de Brettes
          Phone: + 33 1 44 90 61 49
          Home Page: http://www.pprlive.com
                     http://www.pprfinance.com
          or
          Credit Agricole S.A
          Analysts/Investors:
          Claude Rosenfeld
          Phone: + 33 1 43.23.23.81
          Emmanuelle Yannakis
          Phone: + 33 1 43.23.40.42
          Home Page: http://www.credit-agricole-sa.fr


SCOR: Warns of EUR250 MM Net Loss for 2002
------------------------------------------
Before the Extraordinary General Meeting of shareholders which
will take place on 5th November 2002 and the announcement of the
Q3 2002 results, the Board of Directors of SCOR has asked the
Company for a detailed statement of its situation as at June 30
2002 and of its prospects for the current financial year. This is
also in order to respond to the legitimate questions asked by the
financial markets and the Company's shareholders. To achieve
this, the Company has been assisted by independent actuarial
firms for North America, Europe and Asia.

The result of this analysis was communicated to the General
Management of the Group on October 26 and was the subject of a
special meeting of the Audit Committee and of the Board of
Directors on October 29 2002. Following a net profit of EUR 21
million as at June 30 2002, a net loss estimated at around EUR
250 million is expected for the full year 2002, due to the
following factors:

--  A high level of claims in the third quarter as a result of
flooding in Central Europe and Germany (EUR 70 million(a)) and
the Group's credit activities (EUR 38 million(a))

--  The Company has had to mark to market its investment in Swiss
Life through a provision for the financial year of a total of EUR
100 million(a), following a recently announced reorganisation of
this company (planned Share Exchange offer). In total, in 2002,
SCOR will make around EUR 230 million(a) in provisions for
depreciation and capital losses incurred on its equity portfolio.
After these measures, SCOR's investment portfolio presents net
unrealised capital gains of EUR 254 million(a) as at the end of
September 2002, compared to EUR 87 million(a) as at June 30 2002

--  The aforementioned actuarial analysis carried out with
respect to the June 30 financial statements confirmed that the
technical reserves were sufficient to allow the Group to fulfil
its commitments. On the recommendation of the General Management,
the Board of Directors has nonetheless decided to make an
additional provision of EUR 225 million(a) for the Group, to
bring the technical reserves concerned in line with the actuarial
best estimates.

--  The additional provisions stem, in part, from the situation
of SCOR's Bermudan subsidiary CRP for the 1999 and 2000
underwriting years, the impact of which was highlighted by the
actuarial review whose results have just been made known. They
concern a limited number of contracts covering Workers
Compensation in the United States. These contracts have been
subject to an unusually high level of accumulated claims during
the year, leading to a net loss for this subsidiary, estimated at
EUR 100 million for the 2002 financial year. Immediate corrective
measures have been taken:

--  Future estimated losses, which make up part of the estimate
of the Group's results, will be provisioned as at September 30

--  CRP will shift the orientation of its activities and
drastically cut back on its underwriting activities, which will
be subject to tougher checks

--  The management of this subsidiary will be restructured

--  For SCOR US, these additional provisions concern underwriting
years prior to 2001, and mainly Program Business, which ceased to
be underwritten at the end of 2001, but which continues to show
unusual deteriorations.

--  All of these factors will lead to the restructuring and
reinforcement of the Risk Control Department and the Group
Internal Audit Department.

In addition, the Board notes that the Group's underwriting
results in 2002 in Property & Casualty and Large Corporate
Accounts are, as at September 30 2002, in line with expectations,
presenting a gross combined ratio of 92% and a net combined ratio
of 98%.

Consequently, the Board of Directors has decided to centre SCOR's
strategy as from 2003 on restoring profitability. Following the
Extraordinary General Meeting of shareholders on November 5, the
Board will call a rights issue for an amount at least equal to
the estimated loss for the financial year. The Board will take
its decision on November 15 after the closing of the accounts for
the third quarter.

The General Management will recommend to the Board a plan of
action taking into account the following main factors:

    -- A drastic reduction in ART and Credit & Surety reinsurance

    -- The confirmed progress in Life reinsurance, the Group's
most profitable activity, which is the least exposed to dramatic
variations in the level of claims

    -- The continued development of the Large Corporate Accounts
activity, in which pricing improvements are already producing
excellent results by favouring short-tail risks

    -- More stringent profitability requirements for the Property
& Casualty business, insuring growth through premium rates, and
non-proportional business, mainly in Europe and Asia

    -- A significant reduction in operating costs over the course
of the next two years.

Overall, the Group expects in 2003 and 2004, taking into account
its activities which have been discontinued or which are being
restructured (Program Business in the United States, American
ART, Health, Credit & Surety), a stabilisation of its turnover
and a return to profitability as from 2003.

N.B. (a) pre-tax figures

CONTACT:  SCOR
          Clare Brennen
          Phone: 33 (0)1 46 98 74 71
          Delphine Deleval
          Phone: 33 (0)1 46 98 71 64
          Valentine Semet
          Phone: 33 (0)1 46 98 72 32
                  or
          Brunswick
          Andrew Dewar
          Phone: 33 (0)1 53 96 83 83
          Home Page: http://www.scor.com


SCOR: A.M. Best Places Rating of SCOR Under Review
--------------------------------------------------
A.M. Best Co. has placed the financial strength rating of A
(Excellent) of SCOR (Paris, France) and its guaranteed
subsidiaries under review with negative implications.

The rating action also applies to the group's debt and commercial
paper ratings (see list below). This follows SCOR's announcement
today of an estimated loss of EUR 250 million (USD 250 million)
for the full year 2002 due to reserve deterioration, depreciation
in its equity portfolio and losses arising from Central European
floods and the group's credit underwriting. The current rating,
affirmed in September 2002, reflected both the expectation of
substantially stronger performance in 2002 and a successful
capital raising by the end of the first quarter 2003. A.M. Best
will be discussing SCOR's revised plans with senior management
over the next few weeks.

The financial strength rating of A (Excellent) of the following
SCOR subsidiaries have been placed under review with negative
implications:

--  SCOR Canada Reinsurance Company
--  SCOR Deutschland Ruckversicherungs AG
--  SCOR Italia Riassicurazioni S.p.A
--  SCOR Reinsurance Asia-Pacific Pte Ltd
--  SCOR Reinsurance Company*
--  SCOR UK Company Ltd
--  General Security Property and Casualty Company
--  General Security Insurance Company
--  General Security Indemnity Company
--  General Security Indemnity Company of Arizona
--  General Security National Insurance Company
--  Commercial Risk Reinsurance Company Ltd
--  Commercial Risk Re-Insurance Company
--  SCOR Life U.S. Re Insurance Company
--  Republic-Vanguard Life Insurance Company
--  Investors Insurance Corporation

*SCOR Reinsurance Company is a U.S. trading company.

The following ratings on existing debt have also been placed
under review with negative implications:

    -- AMB-2 rating on EUR Commercial Paper Program
    -- "a+" rating on senior unsecured EUR medium term note
program
    -- "a+" rating on five-year convertible bonds
    -- "a-"rating on EUR 100 million cumulative subordinated
notes, due 2020
    -- "a-" rating on USD 100 million subordinated step-up notes,
due 2029
    -- "a-" rating on EUR 50 million subordinated perpetual step-
up notes issued by Societe d'Etudes et de Placements Financiers
and guaranteed by SCOR

A.M. Best Co., established in 1899, is the world's oldest and
most authoritative insurance rating and information source. For
more information, visit A.M. Best's Web site at www.ambest.com.

CONTACT:  A.M. Best Co.
          (Public Relations)
          Jim Peavy
          Phone: +(1) 908 439 2200, ext. 5644
          E-mail: james.peavy@ambest.com
          or Rachelle Striegel, +(1) 908 439 2200, ext. 5378
          E-mail: rachelle.striegel@ambest.com
          or (Analysts)
          Miles Trotter
          Phone: +(44) 20 7626 6264
          E-mail: miles.trotter@ambest.com
          or Jose Sanchez-Crespo
          Phone: +(44) 20 7626 6264
          E-mail: jose.sanchez-crespo@ambest.com


SCOR: S&P Puts SCOR on CreditWatch on Warning of EUR250MM Loss
--------------------------------------------------------------
Standard & Poor's Ratings Services said on Wednesday it lowered
its long-term counterparty credit and insurer financial strength
ratings on France-based reinsurer SCOR and subsidiaries to
single-'A'-minus from single-'A'.

At the same time, the ratings were placed on CreditWatch with
negative implications.

In addition, Standard & Poor's lowered its short-term
counterparty credit and commercial paper ratings on SCOR to 'A-2'
from 'A-1'. The short-term ratings were not placed on
CreditWatch.

"The downgrade reflects SCOR's revised capital adequacy position,
its marginal operating performance, and continuing concerns with
regard to the group's ability to control and monitor some
underwriting areas," said Standard & Poor's credit analyst Marcus
Rivaldi. The ratings on SCOR also reflect the group's strong
business position within the reinsurance sector.

The CreditWatch placement follows SCOR's unexpected announcement
today that it is to post a loss of about EUR250 million for 2002,
and reflects the need for Standard & Poor's to discuss with SCOR
management the various issues that this loss raises -- in
particular management control, revisions to the group's business
mix, and the potential for a successful rights issue.

The SCOR group continues to be viewed skeptically in terms of its
ability to control and monitor some underwriting areas. Standard
& Poor's earnings expectations for SCOR have been frequently
reassessed in light of surprising results not in line with
expectations. Today's announcement continues this unfortunate
trend. The news that the risk control and group internal audit
departments are to be restructured (also announced today) is
welcomed.

SCOR has a strong business position in the reinsurance sector,
predominantly due to its very strong Pan-European brand. SCOR's
underwriting strategy post-September 11 is increasingly focused
on traditional property/casualty reinsurance and, more
specifically, on the property sector. The group today announced
that it will be drastically reducing its involvement in
alternative risk transfer and credit and surety classes. Balance
is provided to its portfolio via a substantial life reinsurance
segment.

In common with its peers, SCOR's recent operating performance has
been marginal. The group has been unable to translate its strong
business franchise and brand into sustainable earnings
commensurate with a higher rating.

Against the background of an increasingly attractive underwriting
environment, reported improvements in operating performance for
2002 to date have been sluggish. This stems primarily from the
earnings drag of less profitable business from earlier years and
the immediate impact of high-level protection costs. In addition,
SCOR announced today that it will be making significant
adjustments to the reserves of its subsidiaries Commercial Risk
Partners Group and SCOR U.S. Corp., totaling EUR225 million. As a
result, Standard & Poor's does not foresee a genuine improvement
in reported earnings until at least 2003.

For 2002, capital adequacy is now expected to decline further to
a good level, and is not currently expected to improve
significantly in 2003. SCOR has revised its communications with
regard to the amount it aims to raise through a rights issue,
from a maximum of EUR400 million at the beginning of October to a
minimum of EUR250 million today. Standard & Poor's now views this
capital injection as extremely important in light of the group's
revised capital adequacy position and also as an indicator of the
group's financial flexibility -- that is, its ability to source
capital relative to capital requirements.

Standard & Poor's will meet with SCOR group management in the
near future to discuss the various issues raised by today's
announcement. "If all issues are satisfactorily addressed, the
CreditWatch placement will be resolved. If SCOR fails to resolve
these issues, however, there is the possibility that the ratings
could be lowered to the triple-'B' range," added Mr. Rivaldi.


SCOR: Profit Warning Prompts Moody's to Put Ratings Under Review
----------------------------------------------------------------
Moody's Investors Service placed the ratings of reinsurance firm,
SCOR, on review for possible downgrade following the company's
announcement that it expects to post a loss of approximately
EUR250 million for the year 2002.

The Paris-based company is rated A1 for insurance financial
strength, A2 for senior debt, and A3 for subordinated debt.

The following ratings have been placed on review for possible
downgrade:

Scor-A1 insurance financial strength rating

A2 senior debt rating

A3 subordinated debt rating

The rating agency said it would focus its review on: outlook for
earnings after two successive years of losses, the robustness of
the company's reserve levels, the potential for further asset
impairment charges, the quality of risk management and internal
controls, and its increasing level of financial leverage.

Moody's acknowledges that SCOR is launching a refocusing of its
strategy for 2003 and 2004.  It also notes SCOR's plan for a
rights issue that is expected to raise an amount at least equal
to the estimated loss for the current year.

The rating agency believes that the company's review of its
strategy and rights issue may stabilize the company's financial
condition. Moody's, however, warns that the closure of some of
SCOR's businesses, as part of its new strategy, may require
further charges.


VIVENDI UNIVERSAL: Moody's Lowers Senior Implied Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service downgraded its senior implied rating on
Vivendi Universal from Ba2 to Ba3 after Vivendi announced that it
rejected Vodafone Group Plc's offer to buy its stake in French
mobile phone operator Cegetel SA.

The rating downgrade dragged along the senior unsecured bond
rating of Vivendi's subsidiary, Houghton Mifflin. The bond rating
was also changed from Ba2 to Ba3. The subsidiary's ratings will
remain aligned with its parent until transaction for its sale is
definite and treatment of its bonds is clarified.

According to Moody's, Vivendi's stand "removes a significant
mitigant of its current liquidity and refinancing risk profile as
the company remains dependent on the timely disposal of a number
of small to medium-sized asset sales to meet its debt repayment
obligations and to fund other cash outflows over the next six to
twelve months."

The rating agency believes that following the rejection there is
now a great possibility that Vivendi Universal will exercise its
right to pre-empt Vodafone's offer to at least one of the
remaining Cegetel shareholders. If the event so happens, Vivendi
Universal's near term risk profile will be further heightened,
leading to a downward rating inclination.

Moody's, however, adds: "in the absence of any evidence that the
company can access Cegetel's cash flows and funding capacities
for more than a limited dividend payment following the pre-
emption, ratings would likely be downgraded even if Vivendi
Universal manages to raise the necessary finance to fund a pre-
emption bid.

These ratings as well as Vivendi Universal SA's unchanged B1
senior unsecured ratings remain under review for possible
downgrade. The ratings stand due to the protection offered to
bondholders by the company's broad and deep asset base.

Ratings downgraded that remain under review for possible
downgrade are:

Vivendi Universal SA: - senior implied rating to Ba3 (from Ba2)

Houghton Mifflin Company: - senior unsecured ratings to Ba3 (from
Ba2).

Ratings that remain under review for possible downgrade are

Vivendi Universal SA: - senior unsecured ratings at B1.


CONTACT:  VIVENDI UNIVERSAL
          42 avenue de Friedland
          75380 Paris Cedex 08, France
          Phone: +33-1-71-71-10-00
          Fax: +33-1-71-71-11-79
          Home Page: http://www.vivendiuniversal.com


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


ABB: Maintains Commitment to Keep U.S.-based Operation
------------------------------------------------------
Industrial engineering group, ABB, assured it is keeping its US
operation, Combustion Engineering, amidst speculations about its
USD800 million cost-cutting plan due to be presented in November.

"Our U.S. operations are running normally and there are
absolutely no plans to withdraw from the U.S.,'' ABB chief
financial director Peter Voser told Reuters.

Investors are anxious about the details of the company's plans
amidst rumors that ABB have difficulties obtaining short-term
financing from banks, the report says. The Banks did not comment
on the issue.

ABB is currently waiting approval from the European Union of a
USD2.3 billion sale of its finance activities to GE Commercial
Finance. It is believed that the sale as well as the divestment
of the metering business to Germany's Ruhrgas and some other
concluded deals would provide ABB with sufficient liquidity for
"well into 2003'' and help it meet USD3.7 billion in debt
payments.

Sales of the Building Systems unit and the Oil, Gas and
Petrochemicals division are also expected to provide additional
funds for a later date.

But analysts fear ABB may also have problems restoring
profitability. And although it has said it could put Combustion
Engineering under Chapter 11 bankruptcy protection to limit the
costs of liability claims, the company is not yet free from
potentially costly asbestos liability payments for which it had
allotted USD940 million in provisions.


=============
I R E L A N D
=============


ELAN CORPORATION: Reports 3Q Results and Recovery Plan Update
-------------------------------------------------------------
Elan Reports Third Quarter 2002 Financial Results and Recovery
Plan Update Third quarter financial highlights

    - Total revenue of USD340.0 million in the third quarter of
2002
    compared to USD484.3 million in the third quarter of 2001.

-  Total product revenue of USD219.9 in the third quarter of 2002
compared to USD381.0 million in the third quarter of 2001.

-  Net loss of USD60.7 million for the third quarter of 2002, or
a loss per share of USD0.17, before other charges of USD943.1
million. Including other charges, net loss of USD1,003.8 million
for the third quarter of 2002, or a loss of USD2.87 per share.

-  Cash balances at September 30, 2002 were USD632.9 million.

    Recovery plan highlights (July 31, 2002 to date)

    - Pro-forma cash balances will be in excess of USD1.0 billion
    after including cash proceeds of USD420 million from
    Abelcet(TM)and Actiq(TM)upon the closing of these
    transactions.

    - Aggregate cash proceeds from asset divestitures in excess
of USD460 million.

    - Targeted headcount reduction of 1,000 by year-end 2002 70%
    complete.

    R&D Update

    - Antegren(TM) and Prialt(TM), the most advanced pipeline
    programs in Phase 3, and Alzheimer's programs are progressing
    as targeted in the recovery plan.

    - Expect to file four New Drug Applications ("NDAs") by the
end of 2004 and up to five Investigational New Drug Applications
("INDs") by the end of 2003 as targeted in the recovery plan.

Introduction

Elan Corporation, plc (NYSE: ELN) on Wednesday announced a net
loss of USD1,003.8 million, after other charges, for the third
quarter of 2002 (USD2.87 loss per share) compared to net income
of USD128.6 million, after other charges, for the third quarter
of 2001 (USD0.35 earnings per diluted share).

Losses, before other charges of USD943.1 million, amounted to
USD60.7 million or USD0.17 per share in the third quarter of
2002. Total other charges, which include non-cash charges of
approximately USD773 million, arose primarily from investment
related charges, an intangible asset write-down and other costs
associated with the implementation of the recovery plan.

"I am pleased to report that the recovery plan is proceeding as
outlined on July 31, 2002," stated Dr Garo Armen, Elan's
Chairman. "I am confident that we will reach our divestiture
targets with greater realisations of cash and ahead of schedule.
In addition, we remain focused on our very important research and
development efforts, which are progressing according to plan."

The following analysis is based on the pro-forma income statement
data excluding other charges set out on page 17.

Revenue

Total revenue decreased to USD340.0 million in the third quarter
of 2002 from USD484.3 million in the third quarter of 2001 and
from USD456.1 million in the second quarter of 2002.



    Total revenue can be further analysed as follows:

                3 months ended     3 months ended  3 months ended
                 September 30,        June 30,      September 30,
                     2001               2002             2002
                   USUSDm               USUSDm             USUSDm
(a) Product Revenue
Product sales          243.2            325.0              211.3
Rationalisation
revenue                116.2            34.6                8.6
Pharma Marketing/
Autoimmune               21.6            15.1                  -
                  ---------      -------------    ---------------

Total product revenue   381.0           374.7              219.9
                  ---------      -------------    ---------------
(b) Contract Revenue
Amortisation of fees       68.9          50.0              101.3
Research revenue and
milestones                19.2          16.9               18.8
Pharma Marketing/
Autoimmune                15.2          14.5                  -
                  ---------      -------------    ---------------
Total contract
revenue                  103.3          81.4              120.1
                  ---------      -------------    ---------------
Total Revenue             484.3         456.1              340.0
                  ---------      -------------    ---------------

(a) Product Revenue

Product revenue for the third quarter of 2002 was USD219.9
million representing a decrease of 42% when compared to the third
quarter of 2001. While prescriptions for Elan's principal
products (including Skelaxin(TM), Sonata(TM) and Zonegran(TM))
continued to grow, the reduction in product revenues compared to
the second quarter of 2002 was principally due to the
genericization of Zanaflex(TM), the reduction in product
rationalisation revenue and the termination of the arrangements
with Autoimmune Research and Development Corp Ltd.. The remaining
reduction is attributable to a change in Elan's discounting
strategy, short-term product supply problems due to third party
manufacturing constraints and the asset divestiture program.

In the third quarter of 2002, prescriptions for Skelaxin, Sonata
and Zonegran increased by 13%, 1% and 87%, respectively, over the
third quarter of 2001. Regarding Elan's hospital products, demand
for Maxipime(TM) is strong and continues to grow, with audited
sales volumes in the two months ended August 2002, 42% higher
than the same period in 2001 and 47% higher in the eight months
ended August 2002 compared with the same period in 2001. Audited
sales volumes for Azactam(TM) in the two months ended August 2002
were 3% higher than the same period in 2001 and similar in the
eight months ended August 2002 compared with the same period in
2001. Myobloc(TM)/Neurobloc(TM) global product sales were USD3.8
million in the third quarter of 2002 compared to USD3.1 million
in the third quarter of 2001.

Although prescriptions increased by 87%, Zonegran revenues were
USD9.6 million, 41% lower than the third quarter of 2001 due to
the change in Elan's discounting strategy and the resulting
reduction in wholesaler inventories. Revenues for the nine months
ended September 30, 2002 from Zonegran were 30% higher than in
the same period in 2001. Frova(TM), which was launched in the
second quarter of 2002 by the combined Elan and UCB sales forces,
generated revenues of USD0.9 million in the third quarter of 2002
following revenues of USD6.2 million in the second quarter of
2002, which reflected stocking of the wholesale channel ahead of
launch.

The reduction in product revenues for the quarter of USD154.8
million compared to the second quarter of 2002 is as follows:



                                                  USUSDm of
                                                 reduction

Zanaflex                                           59.5
Hospital Products                                  33.4
Rationalization Revenues                           26.0
Autoimmune                                         15.1
Dermatology                                        13.8
Others (net)                                       7.0
                                             -----------------
                                                  154.8
                                             -----------------

On June 28, 2002, Elan announced that Eon Labs had received FDA
approval to market a generic alternative for Zanaflex. A number
of other generic applications for Zanaflex have since received
approval from the FDA. Sales of Zanaflex have been significantly
impacted by generic competition and by the impact of wholesalers
reducing their inventories of Zanaflex given the consequent
decrease in demand.
The reduced revenue in the third quarter of 2002 from hospital
products reflects, principally, a combination of short-term
product supply problems due to third party manufacturing
constraints, the pending sale of North American and any Japanese
rights to Abelcet and a change in the discounting strategy for
these products.

As previously announced, during the third quarter of 2002, Elan
acquired all the royalty rights held by Autoimmune and the
arrangements were terminated. Consequently no co-promotion
revenues were received from Autoimmune during the third quarter
of 2002 compared to USD15.1 million in the second quarter of
2002.

On June 30, 2002, Elan decided not to exercise its option to
acquire the rights to the dermatology products from
GlaxoSmithKline. Under the terms of the arrangement, Elan
continues to hold inventories, which it has the right to sell
prior to December 31, 2002. Consequently, during the third
quarter of 2002, USD3.1 million of product was sold and Elan is
in discussions with a view to selling the remaining inventories
and transferring the related sales force and infrastructure to a
third party(s).

(b) Contract Revenues

Contract revenue in the third quarter of 2002 was USD120.1
million compared to USD103.3 million in the same period of 2001.
The amortisation of license fees amounted to USD101.3 million in
the third quarter of 2002 compared to USD68.9 million in the same
period of 2001. Of the USD101.3 million in amortised license fees
in the third quarter of 2002, USD95.1 million related to business
ventures. As part of the recovery plan outlined in July 2002,
Elan has undertaken a review of its business venture program and
has commenced the termination of non-core business ventures. The
increase in amortised license fees during the third quarter of
2002 arose from the termination of business ventures. The
amortised license fee revenue arising from business ventures
terminated in the third quarter of 2002 was USD79.7 million, of
which USD51.4 million represents the recognition of fee revenue
upon termination.

Research revenue and milestones amounted to USD18.8 million in
the third quarter of 2002 compared to USD19.2 million in the same
period of 2001. Research revenue from business ventures was
USD2.3 million in the third quarter of 2002, offset in part by
costs of USD2.3 million included in research and development
expenditure. In the third quarter of 2001, research revenue from
business ventures amounted to USD3.9 million, offset in part by
costs of USD3.6 million.

No revenues were received under the arrangements with Pharma
Marketing Ltd. ("Pharma Marketing") and Autoimmune during the
third quarter of 2002. Research revenues of USD15.2 million were
received from Pharma Marketing in the third quarter of 2001. No
further research revenues will be received from Pharma Marketing
or Autoimmune.

Gross profit

The gross profit margin on product revenues was 58% in the third
quarter of 2002 compared to 76% in the third quarter of 2001,
reflecting changes in the mix of product revenue, in particular
the decrease in revenue from product rationalisations, Pharma
Marketing and Autoimmune, Zanaflex and the hospital products.

Operating expenses

Selling, general and administrative expenses increased by 14%
from USD153.0 million in the third quarter of 2001 to USD174.5
million in the third quarter of 2002 reflecting principally
higher sales and marketing expenditure. However, reflecting the
implementation of the recovery plan, selling, general and
administrative expenses in the third quarter 2002 were 6% less
than in the second quarter of 2002. Research and development
expenses increased by 25% from USD81.7 million in the third
quarter of 2001 to USD102.0 million in the third quarter of 2002
principally reflecting increased clinical trial expenditure,
particularly on Antegren.

Elan adopted SFAS No. 142 "Goodwill and Other Intangible Assets"
effective January 1, 2002, and on that date Elan ceased
amortisation of all goodwill. Goodwill amortisation in the first
second and third quarter of 2001 was USD6.9 million, USD7.4
million and USD7.4 million, respectively.

Net interest and other income/(loss)

Net interest and other income/(loss) amounted to a loss of
USD28.3 million in the third quarter of 2002 compared to income
of USD31.8 million in the same period of 2001. Net interest
expense amounted to USD16.5 million compared to net interest
income of USD15.0 million in the third quarter of 2001 reflecting
lower bank interest and investment income. Other main movements
from the third quarter of 2001 are a reduction in investment
gains and an increase in investment losses incurred in the
current quarter. These losses principally reflect investment and
other losses of USD6.0 million in the quarter, together with a
charge of USD4.4 million in respect of investments accounted for
in accordance with SFAS No. 133, which requires mark to market
accounting. Business venture funding amounted to USD3.7 million
for the quarter ended September 30, 2002, compared to USD5.4
million in the third quarter of 2001.

Other charges

The results for the third quarter of 2002 have been arrived at
after providing USD943.1 million in other charges of which
approximately USD170 million were cash charges, as follows:



                                                      3 Months
ended
                                                   September 30,
2002

USUSDm
(a) Investment Related Charges
Impairment of
investments held
by Elan                                                    324.4
Guarantee related
to EPIL II                                                  92.0
Guarantee related
to EPIL III                                                 74.3
                                                     ------------
                                                            490.7
Guarantee related
to sale of
assets by EPIL
III in June 2002                                          141.6
                                                     ------------
Total investment
related charge                                             632.3
                                                     ============

    (b) Recovery Plan Related Charges

In-process research
and development
("IPR&D") associated
with purchase of                                            72.5
Autoimmune
pairment of goodwill                                         54.7
Severance costs                                              35.1
Write-down of tangible
and intangible assets                                       24.3
Costs related to
business restructuring,
litigation and SEC
related legal costs                                         16.5

Total recovery plan
related charges                                            203.1

(c) Intangible Assets

Impairment of intangible
asset relating to
pain products                                              107.7

Total Other Charges                                         943.1

Approximate cash component                                  170.0


    (a) Investment Related Charges

The financial markets for biotechnology, drug delivery and
pharmaceutical companies have been in significant decline during
2002. Elan has a substantial portfolio of investments in this
sector. In addition, Elan has guaranteed the debts of two
Qualifying Special Purpose Entities ("QSPE's"), which are not
consolidated, EPIL II and EPIL III, to the extent that the
investments held by them are insufficient to repay the debt when
it falls due in 2004 and 2005, respectively. The aggregate
principal amount outstanding under the loan notes issued by EPIL
II and EPIL III was USD840.0 million at September 30, 2002.

During the third quarter of 2002, Elan recorded an impairment
charge of USD324.4 million relating to its investment portfolio.
This charge relates to the impact of the declining financial
markets on Elan's investment portfolio and the impact of the
recovery plan on Elan's business venture programs and related
investments. Included in this amount was a charge for USD100.1
million related to a decline in the prices of quoted equities
held by Elan during the third quarter. Elan considers the
movement in prices of quoted equities between June 30, 2002 and
September 30, 2002 to be other than temporary and has accordingly
recorded the charge in the income statement.

After providing for an impairment charge of USD324.4 million,
Elan's investment portfolio can be analysed as follows: As at
September 30, 2002 USUSDm


                                                    As at
                                               September 30, 2002
                                                     USUSDm

Marketable investment
securities (a)                                      532.4
Investments and
marketable investment
securities                                          396.7

Total                                                929.1
-----------------------------------------------------------------
(a) Includes USD93.3 million in managed funds


Elan also made further provisions of USD92.0 million and USD74.3
million to cover the potential shortfall in the investment
portfolios of EPIL II and EPIL III, respectively. Elan had
previously made provisions of USD139.4 million and USD179.6
million to cover potential shortfalls in the value of the
investment portfolios of EPIL II and EPIL III, respectively, in
the second quarter of 2002. These charges have been arrived at
based on the estimated value of the investment portfolios at
September 30, 2002, on the basis that the investments will be
held for the medium term and accordingly do not reflect any
liquidity discount. The estimated value has been arrived at using
established financial methodologies.

After providing for the potential investment shortfalls, the
estimated value and cash positions of EPIL II and EPIL III at
September 30, 2002 was as follows:



                                    EPIL II  EPIL III    TOTAL
                                       USUSDm      USUSDm
USUSDm

Investments in public companies        76.6      95.4    172.0
Investments in private companies       88.9      11.6    100.5
Cash                                   65.9      37.7    103.6
Accrued interest and expenses        (12.8)     (8.6)   (21.4)
                                   ------------------------------
Total assets                          218.6     136.1    354.7
Provisions for guarantees             231.4     253.9    485.3
                                   ------------------------------
Total indebtedness                    450.0     390.0    840.0
-----------------------------------------------------------------

On September 30, 2002, Elan made a USD141.6 million cash payment
to satisfy its previously disclosed commitment under a guarantee
in connection with the sale of certain financial assets by EPIL
III. As a result of the payment under the guarantee, Elan
recorded a cash charge of USD141.6 in the third quarter of 2002.

Included as an appendix on page 20 is an analysis of the impact
on the nine months ended September 30, 2002, results, assets and
liabilities of consolidating the QSPEs. If the QSPEs were
consolidated, "net interest and other loss" would be increased by
USD41.5 million in the nine months ended September 30, 2002.
Other charges would be reduced by USD164.0 million.

On September 30, 2002, Elan announced expected investment charges
for the third quarter of 2002 of USD141.6 million related to the
guarantee in connection with the sale of assets by EPIL III in
June 2002, and a charge of up to USD400.0 million related to
Elan's investment portfolio and the EPIL II and EPIL III
guarantees. The actual charge increased from the original
estimate following a more detailed analysis of the investment
portfolio held by Elan during the third quarter.

(b) Recovery plan related charges

In July 2002, Elan acquired royalty rights held by Autoimmune for
a total consideration of USD121.0 million. The consideration paid
for the royalties has been allocated to these rights based on
their estimated fair values. Of the total consideration, USD72.5
million has been allocated to Antegren. This component of the
consideration constitutes acquired IPR&D and was expensed in the
third quarter of 2002.

In accordance with SFAS No.142, Elan performed its annual
impairment review of goodwill on September 30, 2002. As a result
of this review Elan recorded an impairment charge of USD54.7
million in the third quarter of 2002. All of this charge arose on
reporting units that are expected to be sold.

The write-down of other tangible and intangible assets of USD24.3
million reflects the impact of the implementation of the recovery
plan, including the decision to close Elan's facility at Trinity
College, Dublin, Ireland.

As the recovery plan continues to be implemented, Elan expects to
record gains and may incur further charges related to product and
asset disposals. Elan expects these gains to exceed such charges.
The company expects to generate a profit of approximately USD42
million arising from the disposal of rights to Actiq and a
further profit of approximately USD92 million subject to the
completion of the sale of certain rights to Abelcet and related
assets. Elan also expects to incur other charges including
severance, retention and similar restructuring costs. The cash
element of any such charges is not expected to exceed USD150
million over the 15-month period to December 31, 2003. Elan may
also incur additional impairment charges related to investments
and intangible assets.

(c) Intangible assets

During the third quarter of 2002, Elan recorded an impairment
charge of USD107.7 million for the intangible asset relating to
the pain product portfolio acquired from Roxane Laboratories,
Inc., a division of Boehringer Ingelheim, Inc. This is a
portfolio of four pain products acquired in September 2001 for
USD200 million, of which USD120 million remained payable at
September 30, 2002. The impairment charge arises from continuing
supply difficulties since acquisition leading to diminished
selling support from Elan as well as changed commercial
expectations related to generic competition.

Liquidity

At September 30, 2002, Elan had USD632.9 million in cash and cash
equivalents, compared with USD1,373.7 million in cash and cash
equivalents at June 30, 2002. Cash balances would exceed USD1.0
billion on a pro-forma basis if proceeds from the disposal of
Abelcet and Actiq were included.

In the third quarter of 2002, Elan repaid the revolving credit
facility of USD325.0 million and terminated the facility, repaid
the USD62.6 million 3.5% convertible notes at maturity and
acquired the royalty rights held by Autoimmune for a total
consideration of USD121.0 million which, after taking account of
the redemption of Elan's investment of USD38.5 million in
Autoimmune, resulted in a net cash cost of USD82.5 million. Elan
made cash payment of USD141.6 million to satisfy a guarantee
related to a sale of investments by EPIL III in June 2002. In
addition, Elan made fixed and contingent product payments
totalling USD82.8 million in respect of Sonata, Myambutol(TM),
Maxipime, Azactam and the dermatology products. Capital
expenditure resulted in a cash outlay of USD46.7 million.

Based on the recovery plan, Elan believes it has sufficient cash,
liquid resources, investments and other assets that are capable
of being monetised to meet its liquidity requirements. The focus
of the recovery plan is on maintaining financial flexibility
through cash generation. Elan's cash position will in future
periods be dependent on a number of factors, including its asset
divestiture program, its balance sheet restructuring, its debt
service requirements and its future operating cash flow. In
addition to the actions and objectives outlined with respect to
Elan's recovery plan, Elan may in the future seek to raise
additional capital, restructure or refinance its outstanding
indebtedness, repurchase its equity securities or its outstanding
debt, including its Liquid Yield Option Notes, in the open market
or pursuant to privately negotiated transactions, or take a
combination of such steps or other steps to increase or manage
its liquidity and capital resources.

Elan expects committed cash outlays such as capital expenditures,
restructuring costs, product payments and other commitments,
excluding operating cashflows, to be approximately USD650 million
through the 15-month period to the end of December, 2003.
The following table sets out, as at September 30, 2002, the major
contracted and potential cash payments relating to Elan's
business, excluding capital expenditures or future investments in
financial assets such as in business venture partners, which
together could amount to USD150 to USD175 million through the 15-
month period to the end of December, 2003.


--------------------- ---------- -------- -- ------------ -------
              Q4 2002       2003     2004      Thereafter   Total
       USUSDm       USUSDm     USUSDm         USUSDm       USUSDm
--------------------- ---------- -------- -- ------------ -------

Contracted

7.25% Senior
Notes (2008)       -          -        -      650.0        650.0
Fixed Product
Payments        70.4      140.5     28.5       22.9        262.3
Contingent
Product
Payments (1)    14.5      111.8     74.4       32.0        232.7
EPIL II &
III (1)            -          -    450.0      390.0        840.0
3.25% Zero
Coupon
Subordinated
Notes             -    1,013.4        -          -      1,013.4
("LYONs")

            ---------   --------  --------- ------------ --------
Total Contracted
& LYONs         84.9    1,265.7    552.9    1,094.9      2,998.4

Potential

Pharma Marketing
(1) (3)           -      385.0        -          -        385.0
Product
Acquisitions (1)  -          -        -       46.2         46.2
            --------   --------  --------  ------------ --------

Total Potential    -      385.0        -        46.2        431.2
            ---------   -------- -------- -------------- --------
Total Contracted,
Potential &
LYONs          84.9    1,650.7    552.9     1,141.1      3,429.6
-----------------------------------------------------------------

(1) In order to comply with US GAAP, these amounts are not
included on the balance sheet (2) If the LYONs are put to the
company, Elan has the option to repay the LYONs for cash or
shares or any combination thereof. (3) Elan can acquire the
royalty rights from Pharma Marketing prior to June 30, 2003

Recovery Plan Update

In July 2002 Elan announced its plans to restructure its
business, assets and balance sheet and to create a new Elan,
which will be a biopharmaceutical company focused in neurology,
pain and autoimmune diseases. The objective of the recovery plan
is to enable Elan to continue to meet its financial obligations
and support its research and development pipeline thereby
restoring value to shareholders and other stakeholders. A
cornerstone of the recovery plan is the divestiture of non-core
businesses, products and assets together with a cost reduction
program implemented through headcount and infrastructure
reductions and business rationalisations.

The recovery plan targeted USD1.5 billion in proceeds by the end
of 2003 and a reduction in headcount of 1,000 by the end of 2002.
Elan believes that it is progressing well against these targets
with a reduction in headcount of 15%, from 4,700 to 4,000 (before
taking account of asset disposals and business rationalisations)
and with cash proceeds of over USD460 million from the disposal
of assets to date, including the sale of Abelcet which is
expected to close by the end of November 2002. Discussions on
other asset divestitures and business rationalisations are
ongoing.

In addition, Elan has completed a full review of its business
venture portfolio to reflect Elan's core therapeutic areas,
maximise value and conserve cash. Elan intends to maintain active
engagement in a core group of business ventures focused in
neurology. Elan is actively working with its business venture
partners to restructure other ventures with the aim of
substantially reducing or eliminating future cash outlays by Elan
while retaining upside participation in the products under
development.

R&D Update

The most advanced products in the pipeline are Antegren and
Prialt. In addition, Elan has one of the world's largest research
efforts in Alzheimer's disease ("AD"), which is anticipated to
deliver up to five INDs by the end of 2003.

Antegren

Elan and Biogen are collaborating on a number of Phase 3 trials
for Antegren in the treatment of both Crohn's disease and
multiple sclerosis ("MS"). Patient enrollment for all pivotal
Phase 3 trials, with approximately 3,000 patients, is expected to
be completed by year-end 2002.

The two pivotal Phase 3 trials in Crohn's disease will enroll
approximately 850 patients, which will represent the largest
Phase 3 trials undertaken in Crohn's disease. The trials are
progressing with a filing of the NDA for Crohn's disease expected
in the fourth quarter of 2003.

For the MS indication, the AFFIRM study is a Phase 3 trial
designed to determine whether Antegren is effective in slowing
the rate of disability in MS and reducing the rate of clinical
relapses. AFFIRM has completed enrollment with over 900 patients.
The SENTINEL Phase 3 trial, which will be one of the largest
trials conducted in MS, is designed to determine whether the
treatment of MS with Antegren in combination with Avonex(TM) is
more effective than Avonex treatment alone in slowing the rate of
disability in MS and in reducing the rate of clinical relapses.
The SENTINEL trial is progressing to complete enrolment by year-
end.

Elan continues to believe that Antegren will provide a meaningful
advance for patients with these debilitating diseases.

Prialt

The final Phase 3 trial for Prialt is currently recruiting
patients in line with planned enrollment. The FDA has granted
approval for a treatment IND program, which will follow the
completion of enrollment for the current Phase 3 trial.

Alzheimer's Immunotherapy Program

Elan and Wyeth have formed one of the broadest research alliances
in the pharmaceutical industry to develop immunotherapeutic
approaches to treat and prevent AD. We are making significant
progress in the Alzheimer's immunotherapy program and have a goal
of generating two INDs from this program during 2003. These INDs
include the previously announced monoclonal antibody program, as
well as a novel immunotherapeutic Abeta peptide conjugate. Elan
and Wyeth are leveraging the innovate conjugate technology that
Wyeth uses in some of their other products. This is engineered to
provide a strongly immunogenic non-self T-cell epitope in concert
with the critical N-terminus of the Abeta peptide.

The novel immunotherapeutic approach to treating AD was recently
highlighted in two publications in Nature Medicine. In one of
these papers, an independent group of investigators at the
University of Zurich studied a subset of patients in the Phase 2A
study of AN-1792 carried out by Elan and Wyeth (in which dosing
was suspended earlier in the year following reports of
inflammation within the central nervous system). The authors
concluded that most of the patients developed antibodies against
beta-amyloid, which is a critical step in plaque clearance.
Moreover, the investigators found that the antibodies in the
cerebrospinal fluid had unique specificity for the targeted
pathogenic structures containing beta amyloid. In another
independent study from the University of Toronto, the study
authors demonstrated in transgenic mice that the relevant and
beneficial immune response to beta-amyloid can safely be directed
to the amino terminus of that peptide. According to the editorial
in Nature Medicine, these two new studies raise the possibility
that a modified immunotherapeutic approach may effectively
counteract AD.

Elan is focused on the discovery, development, manufacturing,
selling and marketing of novel therapeutic products in neurology,
pain management and autoimmune diseases. Elan shares trade on the
New York, London and Dublin Stock Exchanges.

To see Financial Statements:
http://bankrupt.com/misc/ElanCorp.htm

CONTACT:  ELAN PHARMACEUTICALS MANAGEMENT CORP.
          Investors:  (U.S.)
          Jack Howarth
          Phone: 212/407-5740 or 800/252-3526
                     or
          Investors:  (Europe)
          Emer Reynolds
          Phone: 353/1-709-4000 or 00800 28352600
           or
          Media:
          Sunny Uberoi
          Phone: 212/332-4766 or 800-252-3526


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


NETIA HOLDINGS: Telefonia's Owner Pushes Telefonia Dialog Merger
----------------------------------------------------------------
The owner of Telefonia Dialog intends to merge the operator with
Netia, Poland's largest alternative telecoms provider, following
restructuring of Telefonia's liabilities, Warsaw Business Journal
says.

"The consolidation strategy prepared by our consultant will be
approved by the board in November, currently it is being
presented to banks Pekao and PKO BP," said deputy president
Andrzej Szczepek of KGHM, Telefonia's owner.

In April, Netia said it its interested in taking part in market
consolidation plans involving the assets of state-owned Telefonia
Dialog, Niezalezny Operator Miedzystrefowy, Tel-Energo and
Polkomtel, provided it gains shareholder approval for its debt
restructuring plan.

The Warsaw Business Journal report noted that Netia is now close
to completing the restructuring of its debt--a plan expected
complete by the end of the year.

Telefonia Dialog, meanwhile, has confirmed it has signed a
contract with Tel-Energo, under which both companies will start
cooperation on leasing the nationwide fiber optic network.

The deal if pushed through, would see Netia's creditors
controlling 91% of the operator, the report added.


NETIA HOLDINGS: Introduces New Tariff Plans for ILD Calls
---------------------------------------------------------
Netia Holdings S.A.(WSE: NET). Poland's largest alternative
provider of fixed-line telecommunications services (in terms of
value of generated revenues) on Wednesday announced the
introduction of new tariff plans for international long-distance
("ILD") calls.

Netia currently offers two ILD services: one based on standard
lines and Netia's alternative offer based on Voice over Internet
Protocol ("VoIP") technology. As of November 1, 2002 customers
will be offered new rates for ILD fixed-to-fixed and fixed-to-
mobile connections. The tables below present new tariff plans for
ILD services.

1. ILD tariffs (standard)

1.1.Netia ILD tariff for Fixed to Fixed (FtF) calls:

For customers using Relaxed, Practical and Chatty (analog),
Versatile and Professional (ISDN) tariff plans:

                 Net price                            Gross price
Netia FtF        per minute            VAT             per minute
zone (#)         (PLN/min)           (PLN/min)        (PLN/min)
   1                 1.20               0.26               1.46
   2                 1.39               0.31               1.70
   3                 1.53               0.34               1.87
   4                 2.00               0.44               2.44
   5                 3.15               0.69               3.84
   6                 5.50               1.21               6.71

For customers using Effective tariff plans (analog and ISDN
tariffs with per-second billing and additional call set up charge
of PLN 0.1 net):
                 Net price                            Gross price
Netia FtF        per minute            VAT             per minute
zone (#)         (PLN/min)           (PLN/min)         (PLN/min)
   1                 1.35               0.30               1.65
   2                 1.42               0.31               1.73
   3                 1.6                0.35               1.95
   4                 2.1                0.46               2.56
   5                 3.2                0.70               3.90
   6                 5.7                1.25               6.95


1.2. Netia ILD tariff for Fixed to Mobile (FtM) calls:

For customers using Relaxed, Practical and Chatty (analog),
Versatile and Professional (ISDN) tariff plans:

                Net price                             Gross price
Netia FtM        per minute            VAT             per minute
zone (#)         (PLN/min)           (PLN/min)          (PLN/min)
   1                 1.39               0.31               1.70
   2                 1.53               0.34               1.87
   3                 2.00               0.44               2.44
   4                 3.15               0.69               3.84
   5                 5.50               1.21               6.71

For customers using Effective tariff plans (analog and ISDN
tariffs with per-second billing and additional call set up charge
of
PLN 0.1 net):

                Net price                             Gross price
Netia FtM        per minute            VAT             per minute
zone (#)         (PLN/min)           (PLN/min)          (PLN/min)
   1                 1.42               0.31               1.73
   2                 1.6                0.35               1.95
   3                 2.1                0.46               2.56
   4                 3.2                0.70               3.90
   5                 5.7                1.25               6.95


2. Internet Telephony tariffs (VoIP):

2.1. Netia Internet Telephony tariffs for Fixed to Fixed (FtF)
calls:

For customers using Relaxed, Practical and Chatty (analog),
Versatile and Professional (ISDN) and Economic (Netia 1055)
tariff
plans:

                Net price                             Gross price
Netia FtF       per minute             VAT             per minute
zone (#)         (PLN/min)          (PLN/min)          (PLN/min)
   1                 0.9                0.20               1.10
   2                 0.9                0.20               1.10
   3                  1                 0.22               1.22
   4                 1.3                0.29               1.59
   5                 2.5                0.55               3.05
   6                  4                 0.88               4.88


For customers using Effective (analog and ISDN) and Active (Netia
1055) tariff plans with per-second billing and additional call
set up
charge of PLN 0.1 net:

                 Net price                            Gross price
Netia FtF        per minute            VAT             per minute
zone (#)         (PLN/min)           (PLN/min)         (PLN/min)
   1                  1                 0.22               1.22
   2                  1                 0.22               1.22
   3                 1.15               0.25               1.40
   4                 1.4                0.31               1.71
   5                 2.6                0.57               3.17
   6                 4.05               0.89               4.94


2.2 Netia Internet Telephony tariffs for Fixed to Mobile (FtM)
calls:

For customers using Relaxed, Practical and Chatty (analog),
Versatile and Professional (ISDN) and Economic (Netia 1055)
tariff
plans:

                 Net price                            Gross price
Netia FtM        per minute            VAT             per minute
zone (#)         (PLN/min)          (PLN/min)          (PLN/min)
   1                  1                 0.22               1.22
   2                  1                 0.22               1.22
   3                 1.3                0.29               1.59
   4                 2.5                0.55               3.05
   5                  4                 0.88               4.88


For customers using Effective (analog and ISDN) and Active (Netia
1055) tariff plans with per-second billing and additional call
set up charge of PLN 0.1 net:

                 Net price                            Gross price
Netia FtM        per minute            VAT             per minute
zone (#)         (PLN/min)          (PLN/min)          (PLN/min)
   1                 1.15               0.25               1.40
   2                 1.15               0.25               1.40
   3                 1.4                0.31               1.71
   4                 2.6                0.57               3.17
   5                 4.05               0.89               4.94

Further details of the tariff plans are available on request from
Netia.

CONTACT:  Netia
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061


NETIA HOLDINGS: Requests Review of Nasdaq De-Listing
----------------------------------------------------
Netia Holdings S.A. (WSE: NET), Poland's largest alternative
provider of fixed-line telecommunications services (in terms of
value of generated revenues), announced on Wednesday that on
October 29, 2002 it submitted a request to the Nasdaq Listing and
Hearing Review Council to review the earlier decision of the
Nasdaq Listing Qualifications Panel to de-list Netia's American
Depositary Shares from The Nasdaq Stock National Market,
effective as of the opening of the business on October 15, 2002.

CONTACT: NETIA HOLDINGS S.A., Poland
         Investor Relations:
         Anna Kuchnio
         E-mail: +48-22-330-2061


===========
R U S S I A
===========


OAO UNITED: S&P Affirms 'CCC+' Long-Term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its national scale
corporate credit and senior secured debt ratings on OAO United
Heavy Machinery to 'ruBBB' from 'ruBB+', and affirmed its its
triple-'C'-plus long-term corporate credit rating on the Russia-
based capital goods company.

The rating upgrade reflects improvements in the company's
operating performance and cash flows, according to Standard &
Poor's credit analyst Mikhail Galki. Gradually improving market
conditions and growing order books supported the results.

Yet, Mr. Galki noted that the improvements are at a low level
basing on the company's funds from operation, which stands at
only USD17 million in 2001 (according to U.S. GAAP accounts), and
UHM's increasing debt levels. The holding company incurred debt
in its acquisitions and major asset modernization program.

As for the company's liquidity, the rating agency perceives UHM
to have "sufficient liquidity reserves to mitigate the
refinancing risk" on short-term debts.

The ratings also reflect "increasing competition that the group
faces from global competitors, aggressive financial policy, as
well as its still weak operating performance and limited
financial flexibility, " says S&P. These factors, though, are
partly offset by strong positions in the local market, diversity
of operations, and lower costs compared with international
competitors.

UHM is a holding company with controlling stakes in a number of
leading heavy engineering facilities in Russia and Romania, as
well as design bureaus in Ukraine and the U.S.


RUSSIAN BANKS: Moody's Places B1 Ratings on Review
--------------------------------------------------
Moody's Investors Service placed on review for possible upgrade
the B1 long-term deposit ratings of Moscow-based banks
Vnesheconombank, Vneshtorgbank and Gazprombank.

The ratings were raised following the agency's announcement of
placing the B1 foreign currency bank deposit ceiling of the
Russian Federation on review for possible upgrade.

Vnesheconombank's ratings were maintained at the ceiling of such
deposits in Russia as the bank is government-owned and can count
on Russia's support in case of crisis. Vnesheconombank reported
total IAS assets of USD4.45 billion (unconsolidated) as of June
30, 2002.

Vneshtorgbank's ratings were also placed on possible upgrade
because of its inherent financial strength and Russia's implicit
support for the institution. As of June 30, 2002, Vneshtorgbank
has total IAS assets of USD6.13 billion (consolidated).

Gazprombank, meanwhile, was placed on the same status because of
the expected support from Gazprom, its ultimate parent.
Gazprombank reported total IAS assets of US$3.97 billion
(consolidated) as of June 30, 2002.

Moody's also placed on review for possible upgrade the Ba3 rating
of the EMTN program of Gazinvest Finance B.V. Gazprombank
unconditionally and irrevocably guarantees the program. This
action follows the announcement by Moody's, placement of the Ba3
foreign currency bond ceiling of the Russian Federation on review
for possible upgrade.


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


LM ERICSSON: Signs Contract to Supply Overlay System in Brazil
--------------------------------------------------------------
Ericsson on Wednesday announced a Letter of Understanding (LOU)
with V,sper to supply a CDMA2000 1xEV-DO overlay system in Rio de
Janeiro, Brazil.

Ericsson's CDMA2000 1xEV-DO solution will support such 3G
applications as streaming audio, video and data transfers.
Deployment is expected to begin in Q1 2003 and the 1xEV-DO
network is expected to be commercial by mid-2003.

"V,sper has an aggressive plan to roll out 3G data services
across multiple Brazilian markets and we are committed to
supporting them with our leading products and expertise in 3G
services and applications," said �ke Persson, president of
Ericsson Mobile Systems CDMA.

Offering peak data rates up to 2.4 Mbps in a standard 1.25 MHz
carrier, with a minimum average throughput of 600 Kbps,
Ericsson's CDMA2000 1xEV-DO solution is fully compliant with IS-
856. It can be simply added to existing CDMA2000 radio base
stations or overlaid on an existing CDMA network, enabling
operators to provide customers with high speed Mobile Internet
capabilities while efficiently utilizing radio spectrum.

"It is our goal to continuously provide advanced communications
services for our customers. As the world leader in wireless
technology, Ericsson is a significant and strategic resource in
allowing V,sper to deliver 3G services and advanced data
communications to our customers," said Luiz Kaufmann, president
of V,sper.

"As the only supplier of systems for all major 2G (GSM, CDMA,
TDMA), and 3G (EDGE, WCDMA/UMTS, CDMA2000) mobile standards, this
agreement reaffirms a long-standing relationship with V,sper and
we are proud to be chosen to supply 1xEV-DO in Rio," said Peter
K"llberg, president of Ericsson in Brazil.

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.

About Ericsson's total CDMA solution:
Ericsson's total CDMA2000 solution, which includes
infrastructure, applications, devices, services and proven market
expertise, is optimized for delivering advanced data solutions.
Developed by the industry's premier CDMA experts, Ericsson's true
3G CDMA2000 solution offers operators unique performance and
cost-saving advantages by leveraging the full strength of
Ericsson's expertise in wireless, IP/datacom and Mobile Internet
technologies. Ericsson's CDMA2000 solution, based on innovative
product design, global platforms and open standards, provides the
flexibility operators need to succeed in an always-evolving
wireless market.

CONTACT:  Charlotte Rubin, Public Relations Manager
          Ericsson Business Unit CDMA Systems
          Phone: +1 858 332 6589
          E-mail: charlotte.rubin@ericsson.com

          Kathy Egan, Vice President
          Ericsson Inc., Corporate Communications
          Phone: +1 212 685 4030
          E-mail: kathy.egan@ericsson.com


LM ERICSSON: Signs Contract to Deploy Network in Nicaragua
----------------------------------------------------------
PCS Digital has selected Ericsson (NASDAQ:ERICY) as the sole
supplier of equipment and services for deployment of a GSM/GPRS
1900 MHz network in Nicaragua. The network will have nation-wide
coverage. PCS Digital Nicaragua is part of the group America
Movil, which also includes Telgua (Guatemala) and Telcel
(Mexico), among others.

"Nicaragua is experiencing significant development in
telecommunications. There are now more operators, more coverage
and many more services. We are proud to be part of this positive
change, providing state-of-the-art technology and our global
leadership in telecommunications to PCS Digital Nicaragua," said
Jorge Aguiar, Vice President of Sales and New Business of
Ericsson for the America Movil account.

According to the agreement, the new network will offer value
added services such as Short Message Services (SMS), Voice Mail
(VMS) and PrePaid. Ericsson will also handle the implementation
and maintenance of the system, as well as technical training for
PCS Digital's engineering staff.

Additionally, Ericsson will provide consultative professional
services to support PCS Digital in developing the best services
for the Nicaraguan market.

"We believe in Ericsson's worldwide telecommunications experience
and specifically in their GSM expertise. Their leadership makes
them an excellent partner for this kind of project, so we are
pleased to work with Ericsson in deploying this state of the art
network," said Marvin Par-Gonzalez, General Manager for PCS
Digital in Central America.

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.

Note:

Ericsson is currently planning to cut jobs as part of the
company's plan to have annual breakeven costs of SEK 120 billion
(EUR12.87 billion) in 2003.

Earlier, Ericsson made a prediction that the telecom equipment
environment will remain "uncertain with few signs of stabilizing
in the near term."

CONTACT:  For Ericsson
          Investor Relations
          Glenn Sapadin
          Phone: 212/685-4030
          E-mail: Investor.relations@ericsson.com


=====================
S W I T Z E R L A N D
=====================


ZURICH FINANCIAL: Announces Completion of Capital Increase
----------------------------------------------------------
Zurich Financial Services on Wednesday announces the completion
of the ordinary capital increase approved by its shareholders on
October 11, 2002. The nominal share capital increased by CHF
576,027,820 from CHF 864,041,730 to CHF 1,440,069,550 through the
issuance of 57,602,782 fully paid registered shares with a
nominal value of CHF 10 each at an issue price (Ausgabebetrag) of
CHF 65 per share, generating aggregate gross proceeds of CHF
3.744 billion. This is equivalent to approximately USD 2.5
billion.

Trading of the new shares on virt-x and the London Stock
Exchange's market for listed securities is expected to commence
on October 31, 2002.

Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs well over 70,000 people.

This press release is neither an offering memorandum pursuant to
Art. 652a of the Swiss Code of Obligations nor a listing
prospectus pursuant to the listing rules of the SWX Swiss
Exchange.

This document does not constitute, or form part of, an offer, or
solicitation of an offer, or invitation to subscribe for or
purchase any rights, shares or other securities.  In addition,
the securities of the company issued in the rights offering have
not been registered under the united states securities laws and
may not be offered, sold or delivered within the united states or
to u.s. persons absent registration under or an applicable
exemption from the registration requirements of the united states
securities laws.

CONTACT:  Zurich Financial Services,  Investor Relations
          8022 Zurich, Switzerland
          Phone +41 (0)1 625 22 99, Fax +41 (0)1 625 36 18
          Home Page: http://www.zurich.com


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


ABERDEEN ASSET: Former Director Says 35 Trusts Face Collapse
------------------------------------------------------------
Chris "Mr Splits" Fishwick, AAM's former investment director in
overall charge of split capital trusts, said around 35 of UK's
controversial split capital investment trusts face collapse
should the markets fall further.

The Treasury Select Committee is currently investigating Mr.
Fishwick on the split capital trust debacle. He resigned from
Aberdeen two weeks ago following the scandal.

The Scotsman says Mr. Fishwick told MPs that all 19 trusts that
have so far been suspended from the stock market, including three
of Aberdeen's, were likely to go bust.

Aberdeen's shares have crashed more than 90 per cent since the
start of the year as sliding stocks, heavy borrowing and cross-
shareholdings in other trusts hit the split capital sector.

Aberdeen's three split caps went into receivership along with
eight others among the 19 that were suspended from the stock
market. A fourth one is seeking a wind-up while the firm is
working to bail out investors in a fifth fund.

The firm is reportedly set to announce the sale of at least one
of its Businesses to reduce EUR250 million of debts, and will
soon announce job cuts across the group to cut costs.

CONTACT:  ABERDEEN ASSET MANAGEMENT
          1 Albyn Place
          Aberdeen, Grampian AB10 1YG
          United Kingdom
          Phone: +44-1224-631-999
          Fax: +44-1224-647-010
          Home Page: http://www.aberdeen-asset.com


ABERDEEN ASSET: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company: ABERDEEN ASSET MANAGEMENT PLC

Name of shareholder having a major interest:
LEGAL & GENERAL INVESTMENT MANAGEMENT LIMITED

Notification: NON BENEFICIAL INTEREST

Name of the registered holder(s)/shares held by each holder:

HSBC GLOBAL CUSTODY NOMINEE (UK) LTD A/C - 775245 - 795,959
HSBC GLOBAL CUSTODY NOMINEE (UK) LTD A/C - 360509 - 179,380
HSBC GLOBAL CUSTODY NOMINEE (UK) LTD A/C - 357206 - 3,878,623
HSBC GLOBAL CUSTODY NOMINEE (UK) LTD A/C - 866203 - 193,400

Number of shares / amount of stock acquired: N/A

Percentage of issued class: N/A

Number of shares / amount of stock disposed: 470,000

Percentage of issued class: 0.27%

Class of security: ORDINARY SHARES OF 10 PENCE

Date of transaction: 28 OCTOBER 2002

Date the company is informed: 30 OCTOBER 2002

Total holding following this notification: 5,047,362

Total % holding of issued class following the notification: 2.87%

Contact:  JOHN BRETT
          Phone: 01224 631999

Authorised company official making the notification:
         JOHN BRETT, COMPANY SECRETARY

Date of notification: 30 OCTOBER 2002


BRAINSPARK PLC: Appoints Nominated Broker
-----------------------------------------
Brainspark is pleased to announce that Evolution Beeson Gregory
Limited has been appointed as the company's Nominated Broker with
immediate effect.

Note:

On October 3, Brainspark announced the appointment of Evolution
Beeson Gregory Limited as the company's Nominated Adviser with
immediate effect.

CONTACT: Brainspark plc
         The Lightwell
         12/16 Laystall Street
         Clerkenwell
         London EC1R 4PF
         Tel: +44 20 78 43 66 00
         Fax: +44 20 78 43 66 01
         E-mail: email@brainspark.com


INTERNATIONAL POWER: Moody's Affirms Ba3 Senior Unsecured Rating
----------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 senior unsecured
ratings of International Power plc, and changed the outlook on
the ratings from positive to stable.

The action is due to the loss in value of International Power's
tolling contract with TXU Europe for the Rugeley power plant, as
a result of the deterioration in credit quality of TXU Europe,
the rating agency says.

Moody's believes that the contract may now no longer have ongoing
value for International Power. Should the agreement be
terminated, the rating agency predicts the loss to be limited to
the company's equity investment of GBP 56 million.

Moody's says it understands that International Power is unlikely
to inject additional capital to support the project financing
under these circumstances. The rating agency further notes that
the electricity generating company may eventually have additional
exposure through a GBP 70 million letter of credit that it has
posted to install flue gas desulphurisation equipment to Rugeley.

Moody's says it will continue to monitor the company's reliance
on its lower quality cashflows, as well as its growth. It will
focus on the maintenance of International Power's liquidity in
the context of any refinancing commitments, including potentially
the USD 350 million convertible bonds.

CONTACT:  INTERNATIONAL POWER
          Senator House, 85 Queen Victoria St.
          London EC4V 4DP, United Kingdom
          Phone: +44-20-7320-8600
          Fax: +44-20-7320-8700
          Home Page: http://www.internationalpowerplc.com


MARCONI PLC: Admits Acquiring GBP3.5 Million Worth of Real Estate
-----------------------------------------------------------------
Cash-strapped telecoms equipment maker Marconi admitted acquiring
two houses worth GBP3.5 million from its employee.

The company, which posted net debt of GBP2.8 billion at the end
of September, confirmed it had spent GBP1.75 million on a luxury
house in Buckinghamshire, to honor an agreement with a sales
manager who had just been laid off by the firm. It had further
disclosed it had bought another property from the same employee,
says The Scotsman.

Marconi executed the first deal when it asked sales manager
Charlie Foreman to move from London to Coventry to take up a new
role.

The revelation is likely to anger shareholders who were affected
by the collapse of the company's shares, the report says.

Troubled British telecoms equipment maker Marconi posted a 6%
drop in second-quarter core sales to GBP 482 million pounds
compared to the previous quarter, as market conditions continue
to worsen. The firm reassured that its core loss had narrowed by
20%, although it has to launch cost-cutting measures and cut
2,000 jobs in the quarter.


MYTRAVEL GROUP: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company: MYTRAVEL GROUP PLC

Name of shareholder having a major interest:
PRUDENTIAL PLC AND THE PRUDENTIAL ASSURANCE COMPANY LIMITED

Name of the registered holder(s)/the number of shares held by
each holder:


PRUDENTIAL PLC                   Total      Notifiable Interest
                                 18,910,368      3.82%

REGISTERED HOLDERS


MAGIM HSBC GIS NOM (UK) SALI
                                 45,361

PRUCLT HSBC GIS NOM(UK) PAC AC   18,100,119

PRUCLT HSBC GIS NOM(UK) PPL AC
                                 500,000

ROY NOMINEES 578079
                                  52,033

ROY NOMS LTD 578052
                                  23,302

ROY NOMS LTD 578141
                                  61,608

ROY NOMS LTD 578192
                                 127,945

THE PRUDENTIAL ASSURANCE COMPANY LIMITED

HOLDING
                                 18,645,480          3.76%
REGISTERED HOLDERS

MAGIM HSBC GIS NOM (UK) SALI
                                  45,361

PRUCLT HSBC GIS NOM(UK)PAC AC     18,100,119

PRUCLT HSBC GIS NOM(UK) PPL AC
                                 500,000

Number of shares / amount of stock acquired: Not supplied

Percentage of issued class: Not supplied

Number of shares / amount of stock disposed: Not supplied

Percentage of issued class: Not supplied

Class of security: Ordinary shares of 10p each

Date of transaction: Not supplied

Date company informed: 30 October 2002

Total holding following this notification: 18,910,368

Total percentage holding of issued class following notification:
3.82%

Contact:  Michael Vaux - Assistant company secretary
          Phone: +44 161 232 6567

Authorised company official making the notification:
Greg McMahon - Group company secretary

Date of notification: 30 October 2002


P&O PRINCESS: Fitch Maintains Rating Watch Negative Status
----------------------------------------------------------
International rating agency, Fitch Ratings, maintained its Rating
Watch Negative status of the 'BBB+/F2' Senior Unsecured and
Short-term ratings of P&O Princess Cruises plc, where it was
placed after the proposed merger with Royal Caribbean was
announced on 20 November 2001.

The action follows the announcement of the board of P&O that it
welcomes Carnival's dual-listed company proposal. P&O Princess
withdrew its recommendation of Royal Caribbean's DLC proposal and
paid the USD62.5 million break fee to Royal Caribbean as
contemplated under the implementation agreement. The board,
though, has not yet formally recommended Carnival's proposal.

Fitch says it believes that this timing has to do with the
underlying understanding in the Southern European joint venture
agreement with Royal Caribbean that any change of control before
1 January 2003 would trigger a loss of management control and
voting rights in the joint venture.

But, whatever offer is formalized after January 1, 2003, Fitch
believes that the recent board announcement has increased the
likelihood of a merger between P&O Princess and Carnival
Corporation.

Under the DLC concept, the two companies would operate as a
"single unified economic entity" with agreed joint management
control, although  each is expected to remain as two legal
entities with their own respective creditors.

Under the details of the deal, financial obligations incurred
after the implementation of the DLC should be cross-guaranteed,
but it is not clear currently if both companies' existing
creditors will benefit from a similar arrangement, says Fitch.


                                 *************

     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 and Ma. Cristina Canson, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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