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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, March 28, 2003, Vol. 4, No. 62


                              Headlines

* C Z E C H   R E P U B L I C *

UNION BANKA: To Give Out Compensations to Clients in May

* F R A N C E *

AIR LIB: Takeover Talks With Virgin Express Still at Early Stage
ALSTOM S.A.: Nuclear Fuel Handling Firm Considers Possible Offer
VIVENDI UNIVERSAL: B1 Ratings for Debt Instruments Unchanged

* G E R M A N Y *

COMMERZBANK AG: Agrees to Resolve Long-time Tax Advice Suit
DAB BANK: Close to Break-even in the First Quarter of 2003

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

KONINKLIJKE AHOLD: To Undertake Further Review at Disco
KONINKLIJKE AHOLD: CEO of U.S. Unit Promised to Remain in Post
PROVIMI S.A.: Outlook at Negative After Offer for Rolimpex Stake

* N O R W A Y *

VISA NORGE: Fitch Ratings Assigns 'C' Individual Rating

* P O L A N D *

DAEWOO-FSO: Plans to Continue Operations Without MG Rover
LOT POLISH: Search for New Investor Could Be Hampered

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

ABB LTD.: Export Bank Sells Car Leasing Portfolio for US$18.5 MM
BANQUE CANTONAL: Posts Loss Due to Balance Sheet Restructuring
SWISS RE: Reports Net Loss of CHF91 Million for 2002

* U N I T E D   K I N G D O M *

AMEY PLC: Posts After-tax Loss of GBP118.5 Million for 2002
BIRMINGHAM MINT: Administrators Sell Business as a Going Concern
BRITISH AIRWAYS: Flight Schedules to Tel Aviv to Resume
BRITISH AIRWAYS: Makes Changes to Counter Effects of War in Iraq
BRITISH AIRWAYS: Will Hasten Job Cuts, Intensify Scale-Down
BRITISH AIRWAYS: Employees Warn of Possible Industrial Action
BRITISH MIDLAND: To Post Worst Single Year Loss in History
COMPASS GROUP: Expects Trading to Be in Line With Expectations
EDINBURGH FUND: GBP120 Million Contracts Went Down the Drain
EQUITABLE LIFE: Overstated Pension Bonus Values, Per Action Group
MAN AG: Board Particularly Concerned on Profitability
MARCONI PLC: Restructuring to Collapse Annihilate Shares
MOTHERCARE PLC: Issues Update on Daventry Warehouse Review
MVI: Succumbs Into Receivership After Losing Major Contract
NOVASIDE TIMBER: Strathclyde Homes Buys Business for GBP1M
PACE MICRO: Amstrad Chairman Denies Having Interest to Bid
PENNANT INTERNATIONAL: Losses Continue in the Second Half
PIZZAEXPRESS PLC: Firm Offer From GondolaExpress Is Imminent
RETAIL STORES: Narrows Pre-tax Losses to GBP1.5 Million


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


UNION BANKA: To Give Out Compensations to Clients in May
--------------------------------------------------------
Clients of Ostrava-based Union Bank, which recently had its
banking license revoked by the Czech National Bank, will receive
compensation from the troubled bank starting May.

Deposit Insurance Fund (FPV) head Josef Tauber revealed that the
first 60% of clients should receive the money in the first month,
30% in the second and the rest in the third month after the
launch of payments.

The clients are entitled to 90% of their deposits, but only up to
EUR25,000 (CZK790,000), and they can claim the compensations
within 5 years, according to Prague Business Journal.

Preliminary estimates show that FPV needs CZK12.44 billion to pay
all UB clients, but with only CZK9.5 billion, the fund will have
to borrow the rest on financial markets.

Recently, CNB revoked UB's license on grounds that the rescue
plan that would guarantee a renewal of the bank's payment
capacities is unrealistic.

Invesmart, the majority shareholder of Union Banka, has made
plans to appeal the removal of the bank's license.

The rescue plan counted on receiving CZK12 billion from the
Insured Deposits Fund to be repaid over five years, with the
provision that UB kept its license.

Under the scheme, UB would pay out client deposits of up to CZK5
million over the same period, and clients with deposits above
that would receive shares in UB. The restructured UB would then
function as an investment bank.

It is noted, however, that the Czech banking law only allows for
the fund to guarantee client deposits if a bank cannot meet its
obligations.


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


AIR LIB: Takeover Talks With Virgin Express Still at Early Stage
----------------------------------------------------------------
The possible takeover of bankrupt airline Air Lib by Virgin
Express still remains a possibility since, as the Brussels-based
airline itself said, negotiations are still "at an early stage."

The opportunities for serving the Paris market were "very
significant," he told the Financial Times.  But that is if the
"right terms" could be finalized with all parties including
staff.

Air Lib, which served the French Antilles, Algeria, Cuba and a
number of European and French destinations, was forced to ground
its fleet earlier this month after loosing its operating license.

Virgin Express is vying for Air Lib's take off and landing slots
at Orly with other airlines, including Europe's largest low cost
airline, EasyJet of the UK, which is interested in taking about
20,000 slots in total.

The chairman of Virgin Express, David Hoare, reiterated a plan to
set up a second operating base at Paris Orly airport using some
Air Lib assets through a joint venture with CMA-CGM, the French
shipping group.

CONTACT:  AIR LIB
          42 Rue F. Forest
          Imm. Le Sommet
          97122 Jarry-Baie Mahault
          Phone: +590-(0)5.90.32.56.00
          Fax: +590-(0)5.90.26.64.02
          Home Page: http://www.air-liberte.fr/


ALSTOM S.A.: Nuclear Fuel Handling Firm Considers Possible Offer
----------------------------------------------------------------
French nuclear fuel handling company Areva did not rule out a
possible future acquisition of the assets of troubled transport
engineering company Alstom SA.

The chief executive of the company, Anne Lauvergeon said: "We've
looked at it in the past and said 'no.' But we don't exclude
looking at this or that asset in the future."

She particularly mentioned the company's loss-making connectors
division, which made an operating loss of EUR77 million in the
first half of 2002, saying it wouldn't "weigh" on the company's
operating profit by the end of 2003.

She offered two of their possible options: restore it to
profitability, or sell it.

"Both options exist," she said.

Alstom is currently disposing assets to offset an expected EUR1.3
billion loss in the year to March 2003.  Included in its EUR3
billion asset disposal program are its power, transmission and
distribution division as well as its industrial turbines
business.


VIVENDI UNIVERSAL: B1 Ratings for Debt Instruments Unchanged
------------------------------------------------------------
Moody's B1 ratings for Vivendi Universal's senior unsecured debt
instruments (Ba3 senior implied) remained unchanged despite the
company's announcement of a refinancing program.  The rating has
a negative outlook.

The rating agency says: "The ratings highlight Vivendi
Universal's continued reliance, in the absence of free cash flow
from its fully controlled operating activities, on substantial
asset sales to make scheduled debt repayments over the next
twelve months."

Vivendi has upcoming debt maturities over the next twelve months,
including a EUR1.7 billion bond convertible into the company's
own shares in January 2004.

But a successful implementation of the refinancing package--
which involves the issuance of EUR1 billion in high yield notes
and the placement of a new EUR2.5 billion bank facility--could
have more positive rating implications, Moody's says.  A timely
refinancing of debt at Vivendi Universal Entertainment subsidiary
could further enhance the favorable proposition.

The program, if carried out as planned, is expected to create
significant financial flexibility for the French company.  It
would, in particular, allow Vivendi to achieve the best possible
timing for its asset disposal.

While recognizing Vivendi Universal's track record of successful
asset sales, Moody's warns of considerable execution risk for the
program.  The rating agency highlighted this concern by
mentioning the cancellation of IPOs for Canal+ and Vivendi
Universal's games business, which is now up for sale.


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


COMMERZBANK AG: Agrees to Resolve Long-time Tax Advice Suit
-----------------------------------------------------------
Commerzbank has agreed to settle a protracted tax advice case
filed against the bank in 1996.

The lawsuit relates to the case filed by the Frankfurt public
prosecutors against 130 Commerzbank employees whom they said had
advised customers to shift money to tax havens, such as Luxemburg
and Gibraltar, in order to avoid German taxes.

According to a spokesman, Commerzbank will pay the fine demanded
by the prosecutors, without admitting guilt, just to end the
legal battle.

Provisions for the fine, which amounts to EUR31.2 million, have
already been taken.  Commerzbank assured the sum would not affect
the company's earnings.

The Commerzbank spokesman also revealed that suits against 100 of
the accused employees were dropped due to lack of evidence.  Only
one former Commerazbank board member was fined.

He further said that 29 other employees, including two former
board members, were fined under similar conditions as that of
Commerzbank; and, like the bank itself, those employees may
choose to pay the fines without admitting guilt in order to end
the suits.

CONTACT:  COMMERZBANK AG
          Kaiserplatz
          60261 Frankfurt, Germany
          Phone: +49-69-136-20
          Fax: +49-69-28-53-89
          Homepage: http://www.commerzbank.com
          Contacts: Klaus-Peter Muller, Chairman
                    Axel Frhr. v. Ruedorffer, Managing Director


DAB BANK: Close to Break-even in the First Quarter of 2003
----------------------------------------------------------
-- Extensive restructuring concluded in 2002 to secure break-even
in 2003 - 88 % of Group's negative 2002 pre-tax earnings
attributable to resizing and losses from former subsidiaries

DAB bank group expects a Q1 2003 pretax result between Euro -0.5
million and Euro -1 million (Q1 2002: Euro -25.4 million). Even
with an approx. 25% decline in transactions in comparison to the
year 2002 to roughly 6.0 transactions per average account
(annualized) in Q1 2003 DAB bank managed to significantly improve
its result through tight cost management.

DAB bank group has posted a pre-tax result of Euro -243.1 million
for the year 2002 (2001: Euro -229.3 million). This result
includes Euro -184.5 million from the former subsidiaries of Self
Trade SA and Direkt Anlage Bank (Schweiz) AG as well as Euro 28.7
million of resizing costs which together made up 88% of the total
pre-tax result.

Group revenues for the year 2002 were Euro 192.3 million (2001:
Euro 167.2 million) including Euro 102.4 million of gross
commission income (2001: Euro 114.6 million) and Euro 41.9
million of net interest income (2001: Euro 45.3 million).

Total expenses in 2002 came to Euro 258.6 million (2001: Euro
277.6 million) of which Euro 208.6 million of administrative
expenses (2001: Euro 232.6 million).

The write-off of deferred taxes of Euro 42.0 million led to a
post tax result of Euro -285.1 million (2001: Euro -196.0
million).


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


KONINKLIJKE AHOLD: To Undertake Further Review at Disco
-------------------------------------------------------
In light of the ongoing investigations at Ahold, and in keeping
with the company's intent to cooperate with all regulatory
authorities, Ahold has decided to undertake a further review of
certain transactions and related matters at its Argentine
subsidiary Disco. The decision is also intended to ensure that
Disco's books and records are in compliance with all applicable
regulations.

Disco has requested from the Buenos Aires Stock Exchange (Bolsa)
and the Argentine Securities Regulatory Authority (CNV) a further
extension to May 12, 2003, of Disco's 2002 financial statement
filing deadline.

As reported on February 27, 2003, the results of the initial
investigation into transaction irregularities conducted by Ahold
showed that there was no material adverse impact on Ahold's
financial results. The company has no reason to believe at this
time that this further review will alter this finding.
Attachments:


KONINKLIJKE AHOLD: CEO of U.S. Unit Promised to Remain in Post
--------------------------------------------------------------
James L. Miller, founder and chief executive of U.S. Foodservice,
tried to show he is not shaken by the current investigations
being launched into the company by promising to remain in his
post.

Refusing to follow the steps of Ahold CEO Cees van der Hoeven and
CFO Michael Meurs, Mr. Miller vowed "to stay and run the
company."

"I have been running this company for 30 years and I don't see
any reason to step down," Mr. Miller said in an interview,
according to The Wall Street Journal.

The U.S. unit of Dutch retailer Ahold disclosed last month an
overstatement of profits by at least US$500 million for 2001 and
2002.  The error was due to improper accounting for supplier
rebates.

The U.S. attorney's office in Manhattan and the Securities and
Exchange Commission are currently looking at the irregularities.

Mr. Miller weathered the management cleanup that saw two
procurement and marketing executives, Mark Kaiser and Tim Lee
being suspended.

The move left industry executives asking why.  The company jumped
in his defense by explaining that Mr. Miller had no knowledge of
the problems.

He also fortified his stand with his pronouncement that "we were
extremely dismayed by what appears to be a few trusted employees
working outside our accepted accounting procedures."

CONTACT:  CONTACT:  KONINKLIJKE AHOLD
          Albert Heijnweg 1
          1507 EH Zaandam, The Netherlands
          Phone: +31-75-659-9111
          Fax: +31-75-659-8350
          Home Page: http://www.ahold.com
          Contact:
          Henny de Ruiter, Interim CEO
          Dudley Eustace, Interim CFO


PROVIMI S.A.: Outlook at Negative After Offer for Rolimpex Stake
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Netherlands-based Provimi S.A., the leading
international animal-feed producer, to negative from stable,
reflecting the company's plans to undertake a debt-funded
acquisition against a backdrop of only slight improvement in debt
measures. At the same time, the 'BB+' long-term corporate credit
rating on Provimi was affirmed.

The outlook revision followed Provimi's announcement of its 2002
results, which showed little improvement in debt measures, and of
a roughly EUR14 million, debt-funded offer for the 57.3% stake in
Polish animal feed manufacturer Rolimpex that it does not already
own. Rolimpex is an existing supplier of Provimi's Polish
operations. As of Dec. 31, 2002, Provimi had about EUR473 million
of net financial debt, including about EUR43 million linked to
its existing holdings in Rolimpex.

"The group's debt measures are moderate for the rating category
and the proposed acquisition increases its exposure to central
and Eastern Europe," said Standard & Poor's credit analyst
Patrice Cochelin.

"Moreover, the group will need to increase its discretionary cash
flow after dividends (currently at about EUR20 million per annum)
in order to meet its bank debt amortization, which will rise
significantly from 2006 onward. However, we expect Provimi to
retain its solid positions in the animal nutrition business and
its focus on value-added segments. The company's cash flow
generation should to be constrained by ongoing, albeit moderately
sized, acquisitions."

Provimi's distributions to shareholders will remain limited, as
required by its banking arrangements. To sustain the current
rating, Provimi needs to maintain adjusted EBITDA net interest
coverage at about 4x, with FFO covering at least 15% of net debt.


===========
N O R W A Y
===========


VISA NORGE: Fitch Ratings Assigns 'C' Individual Rating
-------------------------------------------------------
Fitch Ratings, the international rating agency, has assigned an
Individual rating of 'C' to Visa Norge, the Norwegian card
payments company.

The rating reflects Visa Norge's low risk business and strong
franchise in the Norwegian card payment market but also its small
capital base and the challenge it faces as its core market is
opened to competition.

Established in 1977, Visa Norge provides Visa card support
services to banks, including transaction handling, emergency cash
cards, a card-stop service, a charge-back service, card blocking,
card authorising and fraud detection. It processes over 99% of
Visa transactions in Norway and its business has grown rapidly,
with all of Norway's banks signed up. VN's remaining business is
'merchant acquiring', an area in which it ranks among the market
leaders in Norway with more than 55,000 retail merchant clients.
VN faces new competition from foreign card payment companies
entering the Norwegian market as well as card acquirers.


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


DAEWOO-FSO: Plans to Continue Operations Without MG Rover
---------------------------------------------------------
The management of Daewoo-FSO Motor Polska plant in Zeran revealed
that they are working on a new business plan that would ensure
the continuation of operations without having to deal with
Britain's MG Rover.

Since June, MG Rover and Daewoo-FSO have been in talks over a
possible takeover that could result in MG Rover taking 25% in the
new company, and Poland's Treasury and Daewoo-FSO's creditors
taking shares in exchange for debt.  The Treasury holds 9.2% of
Daewoo.

But MG Rover broke negotiations to rescue the company last month
by demanding that the Polish side of the business shoulder the
whole financial burden with a special guarantee given to the
British.

The current plan involves the formation of the New Small Company,
which shareholders of the ailing Polish carmaker petitioned in
October.

Member of the Board at Daewoo-FSO and director for planning,
Michal Relewicz, said: "We want to start negotiations with GM
Daewoo concerning extension of our rights to produce the Matiz
and Lanos models. Currently, we can maintain production for the
next two years, and continue selling them for the next three."

It is known that Daewoo-FSO's financial trouble started when it
posted a net loss of PLN2.3 billion in 2000. General Motors took
over most of the operations, although it did not include the
Polish investments in its acquisition.

However, GM has offered to hand over intellectual property rights
that concern production of the company's Matiz and Lanos models
by the plant owned by Daewoo-FSO.

TCR-Europe previously quoted a source, saying: "The Warsaw plant
would receive rights worth USD16 million. Currently, under an
agreement between Daewoo Motor Co. and GM, the new investor in
the Korean parent company, Daewoo-FSO is allowed to produce these
models for a period of two years and to sell them for three."

According to the report, these intellectual rights seem priceless
in the event that the current negotiations with Rover fail.

CONTACT:  DAEWOO-FSO MOTOR CORPORATION
          Ul. Jagielloivska 88
          03-215 Warszawa
          Phone: +48-22-676-3955
          Fax: +4822-676-1501
          Homepage: http://www.daewoo.com.pl


LOT POLISH: Search for New Investor Could Be Hampered
-----------------------------------------------------
The revelation that the management board members of LOT Polish
Airlines received EUR678,000 for consultancy services from its
bankrupt stakeholder could scuttle the troubled airline's search
for an investor.

The treasury ministry recalled the three remaining members of
LOT's management board after it was discovered that the
executives violated employment contracts by receiving the sum
from SAirGroup, owner of bankrupt Swissair.

LOT president Jan Litwinski resigned in mid-March over
allegations that he received money from Swissair for advisory
services.

"We shouldn't have expected that an alliance with a partner
[Swissair] who in a dubious way expands his firm at the expense
of smaller airlines would turn out any better," said Elzbieta
Marciszewska, an airline industry analyst from the Warsaw School
of Economics.

Swissair holds a 25.1% stake in LOT.  The holdings went to the
airline's receiver when the carrier succumbed into bankruptcy in
the late 2001.

Efforts to sell the stake failed to yield results, prompting
analysts to believe it may seek a financial institution to
dispose the stake.

The financial institution can serve as buffer "that help to sit
out a slump," an analysts said according to Warsaw Business
Journal, although eventually the institutional investor has to
get rid of the holdings too.

The conflict in Iraq also made the prospect of a bailout from
Lufthansa, LOT's partner in the Star Alliance, remote.

But even if LOT sits the trouble out, its survival could still be
threatened by mounting competition from smaller domestic
airlines.


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


ABB LTD.: Export Bank Sells Car Leasing Portfolio for US$18.5 MM
---------------------------------------------------------------
ABB said on Wednesday it has agreed to sell the car-leasing
portfolio of ABB Export Bank to the Swiss leasing company, Auto-
Interleasing AG for US$ 18.5 million. Auto-Interleasing AG, based
in Basle, Switzerland, is specialized in fleet management.

The deal is part of ABB's strategy to divest non-core businesses
to focus on power and automation technologies and reduce debt. It
is scheduled to close on March 31, 2003, and ABB said proceeds
from the sale would be used to further reduce its net debt.

"This is part of our ongoing divestments this year of non-core
businesses, and was instrumental for the upcoming sale of the
main business of ABB Export Bank in export, trade and project
financing," said Peter Voser, ABB's chief financial officer. "We
reached a fair price above book value for the leasing portfolio,
reflecting the quality of the assets."

ABB Export Bank was part of the Structured Finance business area
of ABB's former Financial Services division. ABB sold most of its
Structured Finance business area last year to GE Commercial
Finance for US$ 2.3 billion.

ABB (http://www.abb.com)is a leader in power and automation
technologies that enable utility and industry customers to
improve performance while lowering environmental impact. The ABB
Group of companies operates in more than 100 countries and
employs about 139,000 people.

Established in 1949, Auto-Interleasing AG is the oldest and
largest privately-held and completely independent service
provider for vehicle leasing in Switzerland and specialized in
fleet management for corporate customers. As part of the Fleet
Synergy alliance Interleasing can help provide its customers with
a solution to their vehicle requirements in 35 countries.


BANQUE CANTONAL: Posts Loss Due to Balance Sheet Restructuring
--------------------------------------------------------------
Business trends were satisfactory despite the difficult economic
and financial context

In spite of the unfavorable economic and financial trends in
2002, BCV Group's operating income for fiscal 2002 is
satisfactory. Gross profits fell by only 3% YoY, and amounted to
CHF 320 million for the period under review. The net loss posted
(CHF1.2 billion) results from last fall's decision to restructure
the Bank's balance sheet by increasing provisions and
shareholders' equity. BCV's recapitalization was completed at the
end of February 2003, which means the Bank has a strong capital
base to support its moves to return to net profitability.

Revenues Up in 2002
BCV Group's total revenues rose by 2.25% in 2002, to CHF 858.5
million. The subsidiaries' share of total revenues rose from
11.7% in 2001 to 18.3% in 2002 as a result of the full
consolidation of the IT company Unicible on July 1, 2002. On a
like-for-like basis in terms of the scope of consolidation, Group
total revenues were down 3%.

Net interest income was stable during the period (down 1.6% to
CHF 429 million), which constitutes a solid performance given the
marked decline in interest rates during the year. The interest
margin as a percentage of balance-sheet total actually improved
slightly, from 1.21% in 2001 to 1.22% in 2002.

Net commission income for the period came in at CHF 276 million.
Although net income from wealth-management activities declined by
12.5%, other commission income rose by 9.3%. Trading posted a
profit of CHF 60.4 million thanks to increased earnings from
transactions on currencies, banknotes and precious metals and a
sharp reduction in losses on securities. Other operating income,
boosted in the period under review by CHF 50 million linked to
the consolidation of Unicible, amounted to CHF 93.3 million in
2002. This was 25.7% or CHF 32.3 million less than in 2001, when
a large non-recurring profit on the sale of shares in Orange
Communication was booked.

Expenses Held Under Control
Uncible's consolidation is behind a 12% increase in Group
personnel, to 2,679 full-time equivalents, and a 9.6% increase in
personnel costs, to CHF 346.5 million. On a like-for-like basis
in terms of the scope of consolidation, BCV Group employed 2,322
full-time equivalents at end-2002 as against 2,326 at end-2001.
The Group held other operating expenses steady, at CHF 192
million (down 0.9% on 2001). Group-wide total operating expenses
amounted to CHF 538.5% (up 5.6%), with subsidiaries accounting
for 24.2% of the total. On a like-for-like basis, operating
expenses were down 0.5%.

Operating Income Practically Stable
Falling as it did by only 3% to CHF 320 million, BCV's 2002 gross
profit shows that the Group performed well, given the very
difficult climate prevailing in 2002. On a like-for-like basis in
terms of the scope of consolidation, gross profits amounted to
CHF 307.1 million (down 6.9%).

Net Income Affected by Need to Boost Equity and Provisions
The Consolidated Income Statement shows a net loss of CHF 1.2
billion for the period, which is a direct result of the measures
to strengthen BCV's capital base announced on October 29, 2002.
The net loss thus comprises CHF 850 million booked to valuation
adjustments, provisions and losses as well as CHF 250 million
booked to the reserve for general banking risks. This loss has
already been covered by a participation-certificate issue
amounting to CHF 1.25 billion, which was completed on 28 February
2003.
BCV provided detailed information on these operations at the EGMs
held on 30 October 2002 and 5 February 2003.

Balance Sheet Slightly Down
The Balance Sheet total fell by 2.7% or CHF 965 million to CHF
35.1 billion. This was mostly due to a voluntary reduction in the
items "loans and advances to banks" and "funds due from banks".
As in 2001, these items were reduced in order to lower equity-
requirement-related needs.

A Decline in the Demand for Loans
Total loans and advances to customers fell by 3.7%, or CHF 959.4
million, to CHF 25.03 billion. This decline relates to the
troubled economic conditions during the period, as is shown by
commercial loans' having dropped far more (down CHF 871.5 million
or 8.6% to CHF 9.25 billion) than mortgage loans (down by CHF
87.9 million or 0.5% to CHF 15.78 billion). As for the other
items listed under Assets, financial investments fell by 14.8%,
or CHF 332 million, to CHF 1.92 billion, with two-thirds of the
drop resulting from reduced equity-security positions. The sharp
rise in other assets (up 54.8% or CHF 816 million to CHF 2.31
billion) relates in particular to increased replacement values of
derivative financial instrument transactions.

Client Deposits Held Up Well
On the liabilities side, customer accounts and long-term
borrowings amounted to CHF 27.2 billion at end-2002, a slight
drop (CHF 291 million or 1%) from the previous year. The amount
booked under customer accounts diminished by 2%, or CHF 176
million, and stood at CHF 8.34 billion on 31 December 2002.
Medium-term notes (off 7.8%, or CHF 48 million, to CHF 577
million) were hit by falling interest rates. Valuation
adjustments and provisions rose significantly (up 47.5%, or CHF
788 million, to CHF 2.45 billion) in line with the decisions made
last fall. As for shareholders' equity, the 2002 share-capital
increase added CHF 628 million, and CHF 250 million was booked to
the reserve for general banking risks during the period. After
recognition of the net loss on 2002 of CHF 1.2 billion,
shareholders' equity amounted to CHF 1.17 billion at 31 December
2002, or CHF 332 million less than a year earlier.

Back on Track in 2003
BCV Group's operating income in 2002 shows that it can generate
solid cash flows. This augurs well for 2003. The Group now has
the capital base to meet the challenges of a difficult economic
climate. The participation-certificate issue of February 2003,
which totaled CHF 1.25 billion, brought shareholders' equity back
up to over CHF 2.3 billion, while provisions now amount to over
CHF 2.4 billion. This gives the Bank a solid capital base.
The Bank's goal for 2003 is to post a net profit. The cost-
control, risk-management, and process-streamlining measures which
are being rapidly implemented within the Bank should make this
goal a reality in spite of the continuingly difficult trends on
the markets and in the economy in general.


SWISS RE: Reports Net Loss of CHF91 Million for 2002
----------------------------------------------------
Proposed dividend reduced to CHF 1.00 per share - Net premium
income up 15% at CHF 29.1 billion - Improved operating
performance overshadowed by asset impairments

Swiss Re's 2002 result was a loss of CHF 91 million due to the
decline in world stock markets. Premiums grew 15% to CHF 29.1
billion, benefiting from the acquisition of Lincoln Re and the
positive conditions in the non-life reinsurance business. During
2002, Swiss Re registered strong improvements in operating
performance and is well placed to take advantage of the
favourable conditions in the reinsurance business. In light of
the 2002 loss, the Board of Directors will propose to the Annual
General Meeting a reduced dividend of CHF 1.00 per share.

Capital market downturn undermines Group result

Swiss Re's 2002 result was a net loss of CHF 91 million.
Impairment charges, primarily on equities, of CHF 3.9 billion
ultimately led to the loss.

Positive developments in operating performance in 2002

During 2002, the benefits of the excellent insurance and
reinsurance market conditions in property and casualty were
evident. Overall, net premiums earned increased 15% to CHF 29.1
billion and management expenses declined, reflecting the positive
impact from efficiency gains.

The combined ratio of the Property & Casualty Business Group was
on target at 104% and the Life & Health Business Group produced a
return on operating revenues of better than 9% for the fourth
year in a row.

John Coomber, Swiss Re's Chief Executive Officer, comments,
"Swiss Re's improved operating performance during 2002 was offset
by the severe capital markets' downturn leading to a second
consecutive loss. As a result of the loss, the Board will propose
a dividend reduction to shareholders. The favourable business
outlook for our reinsurance operations should lead to a strong
recovery in earnings in the coming years."

Dividend Recommendation

Reflecting the 2002 loss, the Board of Directors will recommend
to the Annual General Meeting that the dividend be reduced to CHF
1.00 per share.

Challenging investment conditions require a new target

Swiss Re's return on investment was 4.7% in 2002, compared to an
above average return of 8% in the prior year. As the investment
strategy has been adjusted to reduce exposure to equities, and
with capital market returns expected to be lower, Swiss Re's
return on investment target will be reduced to 5%.


Property & Casualty's combined ratio meets 104% target

The Property & Casualty Business Group capitalised on the
positive reinsurance market conditions. Operating income
excluding the impact of capital gains rose substantially to a CHF
920 million profit from a loss of CHF 1.6 billion in 2001, which
was heavily affected by the 11 September 2001 event. Earned
premiums rose to CHF 15.1 billion, an increase of 9%. In original
currency, the increase was 16%. In addition to premium growth,
the quality of business written continued improving through
strong underwriting policies and the shift to non-proportional
covers.

The combined ratio improved to 104%, hitting the target and far
outstripping 2001's 124%, which included the 11 September 2001
event. Swiss Re's determined approach to underwriting quality and
a reduction in the expense ratio to 4.9% were instrumental in
achieving the improvement.

Swiss Re believes the hard market will be sustained for a number
of years and with continued rigorous underwriting discipline and
management of costs, the combined ratio will be further reduced.
The target for the combined ratio will be reduced to 100% in 2003
and to 98%, on average, over the 2003-2005 period.

Life & Health operating result up 15% as operating revenues grow
20% and Lincoln Re is fully integrated

Life & Health's operating revenues jumped 20% to CHF 14.7
billion, outperforming the 13% target. Lincoln Re's contribution
to this increase was significant. The operating result increased
15% to CHF 1.34 billion from CHF 1.17 billion in 2001. The
operations of Lincoln Re were successfully integrated in 2002 and
there were three Admin ReSM deals completed during the year.
Swiss Re sees positive opportunities for further Admin ReSM
transactions in 2003.

Swiss Re expects that the growth in traditional life reinsurance
will continue to outpace the primary market and GDP, although at
a slower rate than experienced in the past. The business group
will also have to face the challenge of historic low interest
rates. As a result, the life and health performance targets will
be modified to a return on operating revenues of 9%, and an
operating revenue growth target of 7%.

Financial Services' premiums up 11% but impact of negative
investment conditions and prior year claims lead to a loss

Financial Services' net premiums grew 11% to CHF 2.7 billion in
2002. However, poor investment conditions, US surety losses, and
prior year claims from large corporate client business, had a
significant negative impact leading to a loss of CHF 633 million
compared to a CHF 932 million loss in 2001.

2002 saw improvements and efficiency gains throughout Financial
Services Business Group. In particular, Corporate Risk
Underwriting's combined ratio improved to 97% and Asset
Management increased its third party assets under management by
CHF 4.9 billion.

Financial Services will in future separate its performance
targets between the reinsurance business (Corporate Risk
Underwriting and credit) and the fee based businesses of Advisory
and Capital Markets. As a result of the current favourable
conditions, the target combined ratio for the reinsurance
business will be set at 95%. Advisory & Capital Markets will
benefit from efficiency gains as the operations of Financial
Products and Fox-Pitt, Kelton are merged. However, lower
investment return expectations will moderate results across the
business group. Performance targets for 2003 to 2005 will be a
return on total revenue target of 15% and a total revenue growth
target of 10%. Swiss Re is confident the business group will see
a return to profitability in 2003.

Changes to the Board of Directors

At the Annual General Meeting on May 12, 2003, Swiss Re will
propose Raymund Breu and John F. Smith for election to the Board
of Directors. Raymund Breu is Chief Financial Officer and a
member of Novartis's Executive Committee, John F. Smith is the
former Chief Executive Officer and current Chairman of General
Motors Corporation. Their biographies are available on the Media
Kit. The term of office of Jorge Paulo Lemann will expire at the
next AGM. He will be standing for re-election.

Swiss Re is a leading reinsurer and the world's largest life and
health reinsurer. The company is global, operating from 70
offices in 30 countries. Since its foundation in 1863, Swiss Re
has been in the reinsurance business. Swiss Re has three business
groups: Property & Casualty, Life & Health and Financial
Services. Swiss Re offers a wide range of traditional reinsurance
products and related services, which are complemented by
insurance-based corporate finance solutions and supplementary
services. Swiss Re is rated "AA+" by Standard & Poor's, "Aa1" by
Moody's and "A++" by A.M. Best.


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


AMEY PLC: Posts After-tax Loss of GBP118.5 Million for 2002
--------------------------------------------------------
Focus on core business following fundamental restructuring

Key financials
-- Group turnover up 10% to GBP867.5 million
-- EBIT (before exceptional items) of GBP9.6 million (2001 - loss
GBP2.5 million)
-- EBITA (before exceptional items and FRS 17) from core
continuing businesses up to GBP26.9 million (2001 - GBP6 million)
-- Exceptional charges of GBP110.2 million, resulting in a post-
tax loss of GBP118.5 million
-- Results consistent with recent trading statements
-- Positive net cash inflow from core continuing operations
-- Net debt at December 31, 2002 GBP150.8 million
-- Option to take up equity position in Tube Lines
-- Forward order book of GBP3.7 billion - workload for 2003
substantially secured

Results of the restructuring exercise
-- Bank facilities secured until July 2004
-- Focus on core strengths: Transport and BPO Services
-- Reduced cost base
-- Strict cash flow management

Ian Robinson, Chairman, commented:
The year 2002 proved a challenging twelve months for Amey. A
major restructuring of the Company, its management, business
operations and financing arrangements was required. This
corporate reorganization is now substantially complete with Mel
Ewell, formerly Chief Operating Officer, taking up the position
of Chief Executive in February.

Amey's business operations are now focused on Transport and BPO
Services, commanding a significantly reduced cost base. During
2002 we continued to deliver quality services to our customers
whose support we continue to enjoy. I am pleased to report that
our core businesses have experienced some positive momentum since
the outset of 2003. Our workload for the current year is
substantially secured and the Company is in significantly better
shape to capitalize on future opportunities."

CHIEF EXECUTIVE'S REPORT

Actions taken to refocus the Group
In the face of severe difficulties arising in 2002, the Board
agreed that radical measures were required and action plans have
been initiated from the third quarter of 2002 onwards in the
following areas:

Concentrate on core businesses and divest non-core activities:
-- Amey has been re-organized around two strong and focused
businesses: Transport (including Amey Highways, Amey Rail and
Fleet Services) and BPO Services (including Amey Business
Services). Amey Ventures, the specialist PFI/PPP business,
supports the other two core businesses of the Group.

-- The Group also announced the sale of non-core activities and
businesses. These include the portfolio of investments in PFI
special purpose companies, which were sold to Laing Investments
Limited in March 2003 and the smaller businesses Vectra N Jones
and Amey Resources Management Solutions. Amey Vectra, as well as
Amey's stake in the BCN remote monitoring technology business are
currently in the process of being sold.

Restore confidence in Amey's financial management:
-- Regaining the confidence of the Group's banking syndicate has
been a major priority and the Acting Finance Director and his
team have made great strides towards this end by improving the
transparency of accounting systems and processes and the prudence
of the Group's financial assumptions; Banking facilities
extending to mid 2004 were agreed with Amey's banking syndicate
in February 2003

-- Cash management processes have significantly been strengthened

Effect improvements and efficiencies in the Group's operating
structure:
-- The Group underwent a major restructuring program to deliver
efficiency measures, streamline management and improve the
effectiveness of all management controls. Reorganization and
redundancies have been effected in late 2002 and early 2003, and
the cost benefits these will bring (estimated to be of the order
of GBP15 million on an annualized basis) are anticipated to
filter through from the second half of 2003 onwards.

Reduce working capital required to support bidding activities:
-- Bidding activities on large-scale opportunities have been
reduced for the immediate future to conserve cash. Major bids
currently under way and where the Board believe that the chances
of success are good, are going to be seen through to conclusion.
In addition strict project selection criteria will be used before
new bids are initiated.

-- A partnership arrangement to share bid costs and investments
has been entered into with Laing Investments Limited.

Conclude the LUL PPP transaction:
-- An alternative structure was established in December 2002 for
the investment in the equity in the LUL PPP transaction. This
structure enabled the contract to close and Amey to recover its
bid costs in 2002 while maintaining its opportunity to take up
full equity participation during 2003.

-- Amey is working towards concluding the arrangements that will
allow the Group to exercise its option by the end of June 2003
and to secure fully its position in this valuable contract.

Operational Review 2002
Amey provides services that are integral to the core operations
of its customers. In return for the quality service that the
Group's businesses maintained during a difficult period, Amey is
grateful for having enjoyed the continuing support of its
customers throughout 2002.

Amey Transport
Highways: Amey now manages and maintains 25% of English and 50%
of Scottish trunk roads and motorways and we are leaders in the
shift from maintenance to management and operation.

Amey Highways bidding activities were extremely successful in
2002, and the Group was awarded a number of new contracts
including the innovative contract to provide comprehensive
highways services to Hertfordshire County Council and four
contracts for the management of parts of the Highways Agency's
national road network. In addition this business has won the
Street Lighting PFI contract for Walsall Metropolitan Borough and
is well placed to win a number of other major PFI Street Lighting
contracts.

Rail: This business manages and maintains substantial parts of
the UK's railway infrastructure, currently having a 12% market
share of the maintenance market, and being a leading provider of
track and signal renewals services. The period during which
Railtrack was in administration was a difficult one, but the
Group was not asked to make any changes in existing contracts.
Amey Datel as a subsidiary of Amey Rail specialises in the
provision and maintenance of 'realtime' customer information and
integrated control and communication systems to the
transportation industry.

Amey Rail won a major extension for the Great Western Zone
contract in 2002 and has a strong orderbook for 2003 and future
years. In March 2003, the Group was pleased to announce the
extension of the Exeter contract until April 2004.

Amey Fleet Services: Amey Fleet Services operations currently
consist of more than 2,500 road vehicles - from utility cars to
bespoke heavy trucks, and more than 12,000 items of specialist
equipment and plant which are leased to rail, highways and a
variety of other sectors.

This business offers both good margins and potential for
significant future growth and its diverse fleet provides a key
element of support and delivery across a number of the Group's
other operations as it works closely with Amey Highways and Amey
Rail. In addition, Amey Fleet Services sells a significant part
of its business directly to third party clients both in the
public and the private sectors.

BPO Services
Ameysis Services, now trading as Amey Business Services: In the
Interim Report and Accounts we announced that all our Business
Process Outsourcing and Information Technology activities were
brought together to form Ameysis Services. As part of the
continuing streamlining of Amey's business, these activities were
merged in late 2002 with the Group's FM and estates services
businesses. In this way Amey now delivers all its clients'
outsourced services through a single business, called Amey
Business Services. This business has a number of key contracts
including those with QinetiQ, Centrica, DSTL, West Berkshire
District Council, Glasgow Schools and the Ministry of Defence.

Major new contracts or extensions won in 2002 included the PFI
contract to provide services to the Electronic Libraries for
Northern Ireland, white collar outsourcing contracts with the DTI
and West Berkshire and further extensions to the well established
contract with Centrica. The business has an extensive and long
order book.

Amey Ventures
Amey Ventures is a specialist business that has led the Group in
the development of projects that require cross-disciplinary
teams, structured finance or a combination of both. Its revenues
are derived from project fees charged to establish and manage
consortia, joint ventures and other special purpose companies,
and from returns on equity investments in companies set up under
the Private Finance Initiative (PFI) and Public Private
Partnerships (PPP).

In 2002, Amey's involvement in the long-delayed London
Underground PPP and the rising cost of bidding for a growing
number of major opportunities that happened concurrently, has
meant that it faced a difficult year. Nevertheless, Amey
continued to develop successfully its valuable pipeline of
opportunities, culminating with the financial close of the LUL
PPP contract in December 2002 and the achievement of preferred
bidder position in three major opportunities, one of which
reached financial close in 2002, whereas the other two are
expected to be concluded in 2003.

In the second half of 2002, Amey Ventures initiated the process
to sell the Group's portfolio of PFI equity investments to Laing
Investments Limited. This transaction was completed on 14 March
2003, and the equity interests in eight PFI project companies
were sold for a total consideration of GBP43 million. Amey has
maintained the long-term service delivery contracts associated
with these projects. In addition, Amey Ventures, in collaboration
with Laing, will continue to 15 pursue projects in the current
pipeline and selectively, new opportunities.

Working capital requirements for this activity in certain sectors
is to be shared between Amey and Laing. This arrangement
preserves Amey's strong position in the PFI/PPP market and its
ability to win new bids, but has unlocked value from the projects
Amey Ventures has won to date. The Group's interests in the
poorly performing Croydon Tramlink concession have not been
included in this arrangement with Laing, and Amey Ventures is
involved in restructuring this project in order to secure best
value.

The delay to the closure of the London Underground PPP was a
major contributor to Amey's financial difficulties during the
year. By identifying an alternative structure that enabled the
Group to close the contract and recover bid costs without
investing its share in the equity of the transaction, GBP25
million cash inflows were generated in December of 2002. The
option for Amey to fully take up its equity position in this
project remains a valuable opportunity and the Group is fully
engaged in actions that will allow this option to be exercised by
the end of June 2003 deadline.

Businesses in the course of being discontinued
The sale of the Vectra business is progressing and negotiations
are ongoing with a number of parties.

Dividends
As a result of the lack of distributable reserves the Group will
not be able to pay a dividend for the immediate future.

Board changes
On January 2 the Board announced the departure of Brian Staples
as Group Chief Executive. At that time the appointment was also
announced of Mel Ewell as Chief Operating Officer and on 26
February, the Board appointed him to the position of Chief
Executive Officer.

David Miller, the Group Finance Director, resigned and left the
Group on 10 September 2002 and was replaced by Michael Kayser who
resigned on 15 October 2002. He was replaced by Eric Tracey as
Acting Group Finance Director. Eric Tracey is a senior partner at
Deloitte & Touche. Mr Tracey attends all Board and Executive
Meetings but is not a Board Member. He will remain with us until
June 2003 and his experience has been invaluable in rebuilding
confidence in the Group's finances.

Robert Osborne and John Robinson also both left the board during
the year as a result of the strategic review of the business,
which merged the Business Development Unit with Amey Ventures and
disbanded Amey Technology Services.

David Gemmill retired as a Non-Executive Director on 16 May 2002.

Orderbook The Group has a secured workload (including extensions
anticipated in its current contracts) with projected revenues in
excess of GBP700 million for 2003, similar levels for 2004 and
some GBP2 billion for 2005 and beyond. In addition, turnover in
excess of GBP6 billion is expected to flow to Amey through fees,
other income and consolidation of the Group's share of the Tube
Lines business, should the option for Amey to take up its
position in the LUL PPP transaction be exercised.

Further to a strong order book, Amey's current pipeline of
opportunities is extensive and the Group operates in sectors
where business activity is expected to remain strong.

Outlook
Amey has started 2003 with a much changed and more focused
organisation. The Group has a strong order book and a good track
record with its customers and has now successfully completed the
negotiations with its lenders.

A new management team is in place and the Board intends to drive
forward the Group's core businesses that are all facing strong
markets with good long-term prospects.

In November 2002 the Board announced that it had decided to
review the options of rebuilding the value of the Group and that
it had appointed Hawkpoint Partners Ltd, alongside the Company's
existing financial advisers, Deutsche Bank, to assist in this
process. The Board announced in January 2003, that in the light
of press speculation at the time regarding a possible offer being
made for the Company, very preliminary interest had been
expressed in it. Whilst the Board has outlined its strategy to
take Amey forward, the Board has already stated its intention to
explore further this preliminary indication of interest.

The early part of the year has produced results in line with the
Board's expectations. Core continuing operations during 2003 are
performing satisfactorily and are expected to reach broadly
similar levels of activity to 2002. In addition Amey is fully
engaged in actions to allow its equity position in the London
Underground PPP project to be fully taken up, which when
achieved, will add substantial further benefits to the Group.

To see financials: http://bankrupt.com/misc/AmeyPLC.pdf

CONTACT:  CARDEWCHANCERY
          Anthony Cardew
          Nadja Vetter
          Phone: 020 7930 0777


BIRMINGHAM MINT: Administrators Sell Business as a Going Concern
---------------------------------------------------------------
The Joint Administrators offer for sale as a going concern the
business and assets of The Birmingham Mint Limited, a
manufacturer and supplier of coins, coin blanks, medals and
tokens.

The principal feature include: direct supplier of circulation
coins and blanks to central banks and mints worldwide, contracts
in progress, established for over 200 years, specialist plant and
machinery and skilled workforce, and turnover of circa GBP10
million pa.

CONTACT:  KPMG CORPORATE RECOVERY
          2 Cornwall Street
          Birmingham B3 2DL
          Phone: 0121 232 3278
          Fax: 0121 335 2501
          Contact:
          Richard Voice
          Will Wright


BRITISH AIRWAYS: Flight Schedules to Tel Aviv to Resume
-------------------------------------------------------
British Airways will resume a daily daytime service between
London Heathrow and Tel Aviv in Israel from this Friday (March
28).

Mike Street, British Airways Director of Customer Service and
Operations, said: "Our security team remains in close contact
with the government and other agencies. We have reviewed the
situation and we are confident it is safe to resume services to
Tel Aviv.

"The safety and security of our operation is our absolute
priority and we would not consider operating any flight unless we
were satisfied totally that it was safe to do so."

Flight BA165 from London Heathrow to Tel Aviv (and its return
flight BA164) will operate daily from this Friday, March 28.

The airline temporarily suspended flights to Tel Aviv from
Thursday March 20.

British Airways' flights to Kuwait remain suspended until further
notice. The airline's flights to Bahrain, Doha, Jeddah, Dubai,
Abu Dhabi and Riyadh will continue to operate via Larnaca in
Cyprus.


BRITISH AIRWAYS: Makes Changes to Counter Effects of War in Iraq
----------------------------------------------------------------
British Airways on Wednesday announced a package of measures in
response to the impact on its business of the conflict in Iraq.

Following the actual and anticipated downturn in passenger
traffic, the airline will implement a reduced flying programme
and an acceleration of its Future Size and Shape restructuring
program.

The measures include:

-- An overall capacity reduction of four per cent in April and
May, involving reduced frequencies and the use of smaller
aircraft.

-- The Future Size and Shape programme's overall manpower
reduction target of 13,000 by March 2004 will be accelerated to
September this year.

-- An extension of the company's unpaid leave scheme for staff.

-- A review of all capital expenditure and external spend.

Chief executive Rod Eddington said today: "There are clearly
tough times ahead and experience has shown us that conserving
cash is critical at these times.

"We have had the opportunity to plan our response on this
occasion and go into this downturn a leaner, fitter company.
Before today's adjustments to our flying program, we had already
reduced our capacity by 20 per cent in the last two years and
reduced our manpower by 10,000.

"We are still assessing the impact on passenger demand but the
industry has been feeling the effects of war for some weeks now.
However, we are in good shape with more than o2 billion in cash
and committed facilities available and we will survive this
conflict.

"We will continue to review our capacity and forward bookings on
a regular basis."


BRITISH AIRWAYS: Will Hasten Job Cuts, Intensify Scale-Down
---------------------------------------------------------
British Airways hopes to complete its plan of cutting 3,000 jobs
in September of the present year instead of March next year.

The airline is, at the same time, planning to cut its capacity by
a total of 4% in April and May through a combination of reduced
frequencies and the use of smaller aircraft.

Services that would be affected mainly are those in North
America, which showed the sharpest decline in demand for air
travel following the outbreak of war in Iraq.

Capacity in the region is being cut by 6% including the
suspension until the end of May of one of seven daily London
Heathrow/New York JFK services and the cancellation of one of two
Heathrow/Chicago services until April 8.

The company's planned introduction of extra services from
Heathrow to Newark and Toronto and from London Gatwick to Houston
will also be delayed.

Its services in the Middle East will be pared down by 26% with
the continuing suspension of services to Kuwait and the reduction
of services to Dubai from two a day to ten a week.

The job cuts are part of a restructuring program that calls for a
reduction of 23% in its workforce or 13,000 jobs from August
2001.   British Airways expects to shed 10,000 by the end of
March.

To further cut cost, the airline plans to extend its scheme of
offering unpaid leave for staff.

Chief Executive Rod Eddington also announced a review of the
airline's capacity and forward bookings on a regular basis.
British Airways had more than GBP2 billion (US$3.1bn) of cash and
committed loan facilities and had already taken action to reduce
capacity by 20% during the past two years.

He assured to "survive the conflict" by conserving cash.

CONTACT:  BRITISH AIRWAYS PLC
          Waterside, Harmondsworth
          London UB7 0GB, United Kingdom
          Phone: +44-20-8562-4444
          Fax: +44-20-8759-4314
          Toll Free: 800-545-7644
          Homepage: http://www.british-airways.com


BRITISH AIRWAYS: Employees Warn of Possible Industrial Action
-------------------------------------------------------------
Pilots, who claimed British Airway's subsidiary CitiExpress had
mismanaged the restructuring of the unit, are threatening to
stage a strike.

The pilots' union Balpa demanded an urgent meeting with British
Airways chief executive, Rod Eddington, and gave him a deadline
to agree to talks or face a campaign for industrial action.

"We give them ten days to take positive action, which includes a
meeting with Rod Eddington," the union said.

They wanted Mr. Eddington to "take control" after CitiExpress cut
21 routes, along with bases at Cardiff and Leeds-Bradford, as
part of the restructuring in British airway's short-haul
operations.

The union explained that their move "is not a pay issue. It's a
relationship issue. The problems are now serious."

According to The Times, Balpa has already begun taking soundings
from its CitiExpress officials.

Employee discontent is the least issue British Airways needs as
it seeks to hasten plans to cut another 3,000 jobs, according to
the report.

Refusing to give other comments, British Airways said it would
not negotiate in public.


BRITISH MIDLAND: To Post Worst Single Year Loss in History
----------------------------------------------------------
BMI British Midland is expected to post its worst financial
result in April when it reports a loss of at least GBP12 million.

It is "the biggest single year loss in the company's history,"
according to Austin Reid, chief executive of BMI, who said the
last financial year left an "ugly scar" on the group.

It is expected to be more significant than its pre-tax loss of
GBP11.9 million in 1990 since the expected loss is for a turnover
of GBP758 million, as compared with only GBP294 million in 1990.

BMI's operating loss in 2001 was GBP29 million, including
exceptional charges of GBP17 million for restructuring,
redundancies and start-up costs associated with the troubled
launch of transatlantic services from Manchester to the US.

But the loss was transformed into a pre-tax profit of GBP12.4
million when the GBP40.9 million profit on the disposal of its
discontinued operations was accounted.  The bulk of the profit
came mainly from the sale of its ground handling operation to the
Go-Ahead Group.

Lufthansa holds a 30% minus one share in the airline after
increasing its take from 20% in October by acquiring a 10% stake
from BBW Partnership, the holding company of BMI chairman and
controlling shareholder Sir Michael Bishop.

It guaranteed a US$43 million loan for BMI in 2001.


COMPASS GROUP: Expects Trading to Be in Line With Expectations
--------------------------------------------------------------
Compass Group PLC will issue its interim results for the six
months ending March 31, 2003 on May 21, 2003. Prior to its close
period, the Group today issues the following trading update.

Compass Group continues to build on the solid performance of 2002
and expects trading in the first half of this financial year to
be in line with management expectations. The Group remains on
track to deliver at least 6% like for like turnover growth,
together with a 20 to 30 basis point improvement in like for like
margin. In addition, the Group continues to expect to deliver
improved free cash flow generation over the full year compared to
last year.

Despite a challenging global environment, Compass Group continues
to deliver a resilient performance, and assuming no material
change in global economic conditions, the Group believes it is in
a strong position to maintain its progress in all divisions. This
is due to the successful implementation of its unique business
model - which combines contract and concession foodservice with
vending, alongside the use of its portfolio of foodservice
brands.

Like for like turnover growth

Trading in the financial year to date has continued to be in line
with management expectations. Compass Group therefore remains
confident of achieving at least 6% like for like turnover growth
for the full year.

In the first half, like for like turnover growth for the UK
division is expected to be 5% (excluding fuel, Travelodge/Little
Chef and two remaining hotels), in the Continental Europe and the
rest of the world division it is expected to be 6% and in the
North American division it is expected to be 7%. This results in
overall like for like growth rate of 6% for the first half of the
year.

The Group is maintaining its contract retention rate of 95% and
continues to win excellent new contracts. Compass Group is
pleased to announce today the retention of its national contract
with BT for a further seven years. The contract has annual
revenues of GBP25 million. Further contract renewals and gains
are detailed below, and include Pfizer, Exxon Mobil, Suncor and
DZ Bank.

Like for like margin growth

The Group's like for like margin is expected to increase by
between 20 to 30 basis points for the full year, with the like
for like margin moving forward in all three divisions in the
first half. The full year like for like margin improvement will
include the final tranche of the Granada merger synergies,
bringing the total annual synergies from the transaction to GBP70
million.

Free cash flow

Compass Group continues to anticipate an improvement on last
year's strong free cash flow generation for the full year.

The Group anticipates that first half free cash flow in 2003 will
exceed that achieved in the first half of 2002. However, the
Group's business profile is such that its cash flows are seasonal
and free cash flow generation will be second-half weighted as in
previous years.

Acquisitions

The Group remains committed to its strategy of focusing on its
core foodservice and vending businesses, and management's
expectation is that the aggregate value of acquisitions made
during the 2003 financial year will be approximately GBP200
million. This includes the already announced acquisition of a 60%
stake in Onama S.p.A, based in Milan, Italy. Management are
pleased with progress of the integration of Compass Group's
existing Italian business into Onama and the market leading
position in contract foodservice this acquisition has brought.

Disposals

In February, the Group successfully completed the sale of
Travelodge and Little Chef for a total cash consideration of
GBP712 million. Proceeds were used to reduce borrowings and fund
an on market share buy back programme of up to GBP300 million,
which began on February 4, 2003. As of March 24, 2003, the
Company has purchased 14,790,000 shares at a total cost of
GBP41,700,000.

Outlook

The Group remains committed to delivering solid organic growth,
continued margin improvement, strong free cash flow generation
and improving its return on capital employed.

Michael J Bailey, Chief Executive, said:

"I am pleased to report that trading in the first half of the
current year is in line with management expectations.

"Compass Group is the leader in the GBP250bn foodservice and
vending markets. Our consistently strong performance in a
challenging economic environment is due to the commitment of our
employees to the successful implementation of our unique business
model that continues to drive excellent contract retention rates
and new business gains. We are well placed to take advantage of
the growth potential in our markets and benefit from our global
purchasing power and flexible cost structure."

CONTACT:  COMPASS GROUP PLC
          Phone: 01932 573000
          Michael J Bailey, Chief Executive

          Andrew Lynch, Finance Director
          Brunswick
          Phone: 020 7404 5959
          Timothy Grey
          Simon Sporborg


EDINBURGH FUND: GBP120 Million Contracts Went Down the Drain
------------------------------------------------------------
Edinburgh Fund Managers (EFM) lost another two institutional
mandates worth about GBP120 million, according to a report in the
Tuesday edition of the Herald.

According to the report, the company lost a GBP100 million
(USD217 million) mandate for Caisses Desjardins du Quebec, a
Canadian financial institution that is the equivalent to Quebec's
central bank.

EFM also lost the contract to manage about GBP17 million of the
GBP1.7 million Lothian Council pension fund. This was a
specialist smaller companies mandate that had been run since 1996
by Alistair Currie, one of the four EFM executives made redundant
last month, said the report.

However, the issue of the Company's performance was not in
question, clarified a spokesman for the Company.

"Caisses decided to pull the mandate in-house as part of an
internal restructuring," the source explained. "The Lothian fund
was Alistair's (Currie) mandate. Again, performance wasn't the
issue, it was Alistair coming out of the company at the time of
the redundancies."

The report added that this is not good news for EFM shareholders,
especially as the outlook of the Company's annual results is not
promising.

In a related news, EFM is reportedly discussing with Tilney & Co.
and Thornhill concerning the purchase of its private client arm.
The said unit recently lost Harry Morgan to rival Newton, said
the report.


EQUITABLE LIFE: Overstated Pension Bonus Values, Per Action Group
-----------------------------------------------------------------
A policyholder's investigation on Equitable Life claimed to have
uncovered an overstatement in the mutual's pension bonus values
that spanned 10 years, according to the Financial Times.

Equitable Members' Action Group (Emag), which commissioned the
research said: "This fuelled what was effectively a pyramid
scheme, with those retiring or transferring throughout the 1990s
receiving excessive handouts funded by newcomers."

Colin Slater, a partner with accountants Burgess Hodgson, and at
the same time a long-standing policyholder, conducted the
analysis on Equitable's reports.

He said he believes the huge deficit of more than GBP1.3 billion
had been there in 1990, before the guaranteed annuity crisis,
when the firm's with-profits fund was at GBP5 billion.

The assets of the funds were allegedly less than the declared
value of its policies in every year of the last decade apart from
1993.  The exempted year was when the mutual's investment return
was at a high of 29%, according to the report.

Mr Slater said: "These figures suggest that the directors
repeatedly voted bonuses to the extent that policy values
exceeded assets."

He estimated the annual deficiency to be between GBP1 billion and
GBP2 billion.

Mr. Slater also attacked regulators "who had at their fingertips
all the same information we analyzed," but "failed to protect
policyholders."

To repair the damage done to investors, Alex Henney, chairman of
Emag, asked the government for a guarantee it would compensate
the losses.

Equitable responded to the issue saying, "Given the report's
content and the actions being taken by us against former
directors and auditors, it would be inappropriate for us to say
anything."

The FSA, meanwhile, said it is waiting for the results of the
Treasury- commissioned inquiry into Equitable by Lord Penrose.
The investigator said it hopes to submit his findings this
summer.

CONTACT:  EQUITABLE LIFE
          City Place House, 55 Basinghall St.
          London EC2V 5DR, United Kingdom
          Phone: +44-20-7606-6611
          Fax: +44-20-7796-4824
          Home Page: http://www.equitable.co.uk
          Contact:
          Vanni Treves, Chairman
          Charles Thomson, Chief Executive
          Charles Bellringer, Chief Finance and Investment
          Officer


MAN AG: Board Particularly Concerned on Profitability
-----------------------------------------------------
Report of the Supervisory Board

At four meetings held during the 2001 financial year, the
Supervisory Board was presented with detailed information by the
Executive Board on the economic situation of the companies
belonging to the MAN Group, as well as on business developments
and company policy in the form of both written and personal
reports.

On these occasions, events of significance for business
operations were also discussed with the Executive Board, as well
as matters of corporate planning. Furthermore, a constituent
meeting of the Supervisory Board was held and written reports on
current business developments were again submitted to the
Supervisory Board on a quarterly basis.

During several meetings of the Supervisory Board and outside
these meetings, the members of the Board held in-depth
discussions on issues relating to implementation of the proposals
and recommendations included in the German Corporate Governance
Code. Following agreement with the Executive Board, the necessary
decisions were made to comply with these recommendations and
proposals, except where deviations were considered appropriate in
individual cases. On 12 December, a joint statement was issued by
the Supervisory and Executive Boards, confirming that the company
complied with the recommendations of the Government Commission on
the German Corporate Governance Code. In view of the binding
nature of the company's prevailing memorandum and articles of
association, it was necessary to announce one deviation in that
no separate remuneration is paid to the deputy chairmen of the
Supervisory Board, nor to chairmen or members of Supervisory
Board committees. However, at the forthcoming Annual General
Meeting,
the Executive and Supervisory Boards will be proposing an
amendment to the memorandum and articles to allow for the
introduction of separate remuneration for the Deputy Chairman of
the Supervisory Board and for the Chairman and members of the
Audit Committee, which was newly formed at the Supervisory Board
Meeting held on December 12, 2002.

Report of the Supervisory Board 03
As part of its responsibilities, the Supervisory Board
participated in preparing and implementing the conversion of
preference into ordinary shares, as passed at the Annual General
Meeting of the Shareholders.

The conversion scheme has meanwhile been brought to a successful
close, the conversion ratio reaching around 83.5%.

The Supervisory Board attached particular importance to
considering, together with the Executive Board, the problems
relating to capacity and profitability, which emerged in the
course of the 2001 financial year and increased during the 2002
financial year as a result of overall economic conditions. This
also included an appraisal of the countermeasures, which have
meanwhile been introduced. Special focus was directed at the
sectors of printing machines and buses.

The Chairmen of the Executive and Supervisory Boards were also in
constant contact, meeting on a regular basis to discuss all
important issues relating to company policy and current business
operations. As in previous years, the minutes of the monthly
meetings of the Executive Board were submitted to the Supervisory
Board Chairman, providing him with details of all topics on the
agenda. In this way, it was ensured that information required by
the Supervisory Board to duly carry out its duties was made
available at all times.

The Supervisory Board's Standing Committee met on three occasions
during the financial year to deal with measures for canceling
preference shares and converting preference into ordinary shares,
as well as issues involving the company's acquisition policy.
Matters relating to implementation of the German Corporate
Governance Code were also discussed.

The Committee for Executive Board Personnel Affairs met three
times during the financial year. No meetings of the Arbitration
Committee formed in accordance with Sec. 27 para. 3 Co-
Determination Act were required in 2002. On December 12, 2002,
the newly-formed Audit Committee commenced work.

BDO Deutsche Warentreuhand Aktiengesellschaft,
Wirtschaftspr�fungsgesellschaft, Munich, which was appointed as
auditor of the company at the Annual General Meeting, has audited
the financial statements of MAN Aktiengesellschaft and the
consolidated financial statements, as well as the review of
business, which also includes Group operations, each of which has
been certified without qualification of any kind. The auditor
attended the financial-audit meeting of the Supervisory Board and
reported accordingly. We have taken note of and approved the
results of the audit proceedings.
Nor are there any objections to be raised by the Supervisory
Board based on the final result of its own audits of the
financial statements, the consolidated financial statements and
the review of business. We endorse the annual financial
statements prepared by the Executive Board, which have therefore
been duly adopted, along with the consolidated financial
statements.

We furthermore agree with the proposal for the appropriation of
retained earnings submitted by the Executive Board. The term of
office of all members of the Supervisory Board expired at the
close of the Annual General Meeting held on May 17, 2002. The
newly-elected Supervisory Board, composed according to the
provisions of the Co-Determination Act of 1976, held its
constituent meeting immediately following the Annual General
Meeting.

Dr. Volker Jung was elected as Chairman, Dr. Gerlinde Strauss-
Wieczorek as Deputy Chairwoman and Dr. Hans-Jurgen Schinzler as
additional Deputy Chairman. We should like to thank all the
gentlemen who retired from office at the end of the Annual
General Meeting for their commendable service in the interest of
the company. We should also like to take this opportunity of once
again extending our special thanks to Dr. Klaus G"tte for his
many years of successful service as Chairman of the Executive
Board, and subsequently as Chairman of the Supervisory Board.

At the end of 2002, Dr. Klaus von Menges left the company, having
reached retirement age. We should like to thank him for his 37
years of successful service in the MAN Group, since 1993 as a
member of the Executive Board of MAN Aktiengesellschaft, and at
the same time Executive Board Chairman of Ferrostaal AG.

With effect from January 1, 2003, the Supervisory Board appointed
Dr.Matthias Mitscherlich as a new member of the Executive Board.
As of the same date, he also assumed the position of Chairman of
the Executive Board of Ferrostaal AG.

Furthermore, we should like to give our warm thanks to all
members of the executive boards and boards of directors, as well
as the staff of MAN Group companies for their achievements and
active commitment. Our thanks also goes to the workforce
representatives for their objective and constructive cooperation
in furthering the interests of the company.

Chairman of the Supervisory Board
Volker Jung

Letter to shareholders

Neither the economic nor the political landscape showed a
tendency to encourage more positive news from the industrial
sector in 2002. Along with broad sections of German and European
industry, the MAN Group was also intensively engaged in adjusting
its capacities in line with stagnating or falling sales volumes
and adapting its cost basis to coincide with changing reality.
Key challenges in our case were the plummeting market for
printing systems and critical developments among our customers in
the aircraft and aerospace industries.

Following 2001, another difficult year has therefore come to a
close, which began by raising hopes of an economic recovery and
increased momentum in the second half, but ultimately brought
only stagnation and declining markets for capital goods. Nor are
there yet any signs of a full-scale improvement in 2003,
especially since the state of political uncertainty is likely to
persist in the face of the Iraq conflict.

In view of this scenario, and following the drop in earnings in
2001, our main aim was to reinforce the stability and competence
of your company to master its future, as well as improve its
profitability in the long term. Considering these goals, our
achievements are by no means dissatisfying. We succeeded in
increasing earnings before tax to a marginally higher level than
2001, in spite of adverse economic trends and contrary to the
restrained expectations of last autumn.

During 2002, priority was given throughout the Group to pushing
ahead with schemes to enhance efficiency, optimize processes and
reduce costs, some of which were already initiated in 2001.

We regard the developments in 2002 and our expectations for 2003
as renewed confirmation of our strategy of operating in several
different sectors of mechanical engineering, commercial vehicles
and industrial facilities. Your company is stable and enjoys
considerable compensatory potential as protection against
dramatic setbacks impacting the Group as a whole. This was
demonstrated during the year under review, when although the
printing-system sector and MAN Technologies suffered a marked
downturn in earnings, commercial vehicles, which represent a good
40% of our total business volume, achieved a turnaround
in earnings and recorded a significantly improved result.

The earnings generated in 2002 allow us to once again propose a
dividend of EUR0.60 per share. This is of course still far from
what you may consider to be an adequate return on your
investment, although based on the low share price at the end of
2002, it nevertheless represents a return of 4.6%. Having
recorded returns of 6.9% and 1.4% on capital employed and sales,
we are also far behind our return targets of 15% and 5%, which
continue to apply. In 2003, we intend to take a significant step
towards achieving these goals. Since support can hardly be
expected from macroeconomic developments, we shall have to draw
solely on internal measures and further cost reductions to
realize this improvement. We hope that with a little tailwind
from the overall economic situation, we shall again come close to
our targeted returns in the coming year.

In 2002, we were confronted with two new significant problem
areas. One resulted primarily from the recession in the
advertising sector caused by the economic slowdown, which in turn
led to a steep decline in global demand for printing presses. The
MAN Roland Druckmaschinen Group, the second-largest supplier of
printing systems in the world and global market leader in the
sector of newspaper rotary printing, felt the effect on sales and
earnings, especially in the field of high-speed sheetfed presses.

Coupled with the extraordinary costs incurred for restructuring
measures and customer financing in the U.S., this gave rise to
earnings before tax for the entire Printing Machines division of
only EUR10 million. Strong countermeasures are now being
implemented in the form of a comprehensive restructuring program
at the sheetfed-press site in Offenbach, as well as other
realignment measures throughout the entire company. Several
negative developments in the European aircraft and aerospace
industry impacted MAN Technologie simultaneously, leading to a
loss of EUR39 million. This resulted largely from the crisis
experienced by our main customer Arianespace, which received far
fewer orders for launches than planned. It was necessary to write
down our interest in Arianespace, resulting in lower sales and
restructuring expenses. Added to this was the insolvency of
Fairchild Dornier, depriving us of a customer and calling for
extensive obligatory depreciation.

In mid-2002, a restructuring and cost-reduction program was
initiated at MAN Technologie with a view to realigning the
company to significantly reduced market volumes in the medium
term.

On the positive side, Commercial Vehicles deserve special
mention, moving back into the black after reporting a loss in
2001. It was especially gratifying to note that earnings improved
in the truck sector in spite of a 14% decline in the number of
new vehicles sold, owing to considerable progress in curbing
costs as a result of the turnaround projects introduced in 2001.
A marked reduction in the additional costs incurred by the
British truck subsidiary ERF also contributed to this trend,
following closure of its manufacturing operations and
reorientation as a marketing company for vehicles based on TGA
technology. In view of the loss situation, special efforts are
required in the bus sector, where the product range, the
manufacturing structure and organization of the administration
and marketing activities will be undergoing elemental changes.
Overall, we are confident that the Commercial Vehicles division
will show a marked improvement in its earnings contribution in
2003.

Contrary to the general economic situation, our Industrial
Services division (Ferrostaal) performed well. A series of
important major projects was successfully completed, underscoring
once again the worldwide demand for its competence in industrial
plant contracting and related financing activities. A high level
of earnings was maintained, without however reaching the record
figure reported for 2001. The situation was similar in the MAN
B&W Diesel Group, which leads the world market for large two-
stroke diesel engines. Its earnings fell only marginally short of
the previous year's record figure, in spite of considerable
expenditure on restructuring measures at its English subsidiary,
MAN B&W Diesel Ltd.

In the Industrial Equipment and Facilities sector, positive
earnings generated by MAN TURBO, RENK, SHW and also by the SMS
Group, ensured that as a whole, the division remained clearly in
plus, in spite of the loss contributed by MAN Technologie.

One of the key goals set for 2002 was to reduce the level of
debt, which in recent years had risen more strongly than before
as a result of acquisition activity. This was accomplished in
spite of the adverse pressure on earnings already outlined. As of
December 31, 2002, net financial liabilities amounted to EUR261
million, compared with EUR347 million one year earlier. Although
our net indebtedness has always remained within very narrow
limits, we shall continue to pursue this course to ensure an even
sounder balance sheet.

Nor was investment in our future neglected during 2002, both
capital expenditure and expenditure on research and development
maintaining a high level. However, in neither case did investment
equal the record amounts of previous years, which were well above
average due to development of the TGA commercial-vehicle series
and conversion of the necessary production facilities. Capital
expenditure of EUR0.5 billion, excluding financial investments,
reached a good long-term level, as did expenditure of some EUR580
million on R&D, representing 4.6% of sales generated by our
manufacturing companies.

For many years, one of our main concerns has been to ensure the
highest possible level of transparency in our work and our
financial situation to provide you, our shareholders, with a
sound basis for evaluating your company. The Annual Report, which
this year is being presented with a new, even clearer layout, is
one of the key tools for achieving this. From the point of view
of transparency and cooperation between the Executive Board and
the Supervisory Board, we also welcome the impetus deriving from
the discussion on improved corporate management and corporate
control and more recently, on the German Corporate Governance
Code. Following the relevant amendments, which in some cases
still require the consent of the Annual General Meeting in 2003,
our provisions will fully coincide with the recommendations
contained in the Code. Further details on this subject can be
found on page 41 of the report and in-depth information in the
internet at http://www.man-group.com

MAN remains a sound, future-oriented enterprise with a
highlyresilient portfolio. Our five core areas of operation in
the sectors of commercial vehicles, mechanical engineering and
industrial facilities, are highly asset-based areas which have
completed or are currently undergoing fitness and optimization
programs.

This year, we are prepared to increase earnings, even in the
absence of an economic recovery, meeting all the requirements to
participate to a proportionately greater extent in the next
upswing and achieve a sustained increase in the value of your
company and consequently also of your shares.

May I thank you on behalf of the entire Executive Board for
placing your trust in the company and ask you to continue to
accompany us along our way.

Rudolf Rupprecht
Chairman of the Executive Board, MAN Aktiengesellschaft

MAN Group Consolidated financial statements
Fiscal year ended December 31, 2002

Since fiscal 1998/99, MAN has prepared its consolidated financial
statements in accordance with the International Accounting
Standards (IAS), thus offering detailed information, enhanced
transparency and terse presentation regarding the net assets,
financial position and results of operations of the MAN Group and
its segments. This financial information is rounded off by
comprehensive reports on the various business operations in the
form of voluntary annual reports and subgroup accounts of the
major companies, viz. MAN Nutzfahrzeuge, Ferrostaal, MAN Roland
Druckmaschinen, MAN B&W Diesel, MAN Turbomaschinen, RENK, and the
SMS Group.

To see financials: http://bankrupt.com/misc/ManAG.pdf


MARCONI PLC: Restructuring to Collapse Annihilate Shares
--------------------------------------------------------
Marconi investors will receive only one share for every 560
shares they currently have under the restructuring terms of the
telecoms equipment maker.

According to The Times, the terms, which were recently approved
by the High Court, mean that 88.4% of investors will receive less
than two shares in the restructured company.

But to further help the company reduce administrative costs,
investors might as well give up the shares, according to the
board.

The shares are expected to start trading at 50p a share, or a 95%
fall in value.

The report noted that the campaign to give up the shares all
together came together with the report that Marconi will pay
GBP74 million to its advisers to cover restructuring costs.
GBP24.8 million of this will go to Allen & Overy, the City law
firm.

Chief Executive Mike Parton stands to receive more than GBP17
million in bonuses once he steers the company towards a long-term
recovery.

He and 60 other managers will be awarded options over 3% of the
shares in the new company if they meet set performance targets.


MOTHERCARE PLC: Issues Update on Daventry Warehouse Review
----------------------------------------------------------
Mothercare plc is providing an update on its Warehouse review
which was initiated by Ben Gordon following his appointment as
Chief Executive in December 2002.

Mothercare has decided to remain at its current facility in
Daventry with Tibbett & Britten as principal contractor and has
signed a revised contract.

This conclusion was reached after a thorough financial and
operational review of a wide range of options, which included
changing both site and contractor. The reasons for the decision
are as follows:-

-- The Daventry warehouse is working effectively and costs are
beginning to reduce.

-- The contract with Tibbett & Britten has been amended to a two-
year rolling contract with a management fee that includes an
element payable against the achievement of performance measures.

-- Remaining at the Daventry site is low risk as Mothercare will
avoid the disruption and costs which would arise from another
warehouse move.

Ben Gordon is currently undertaking a fundamental operational
review of the business, including the Supply Chain. The new
contract arrangements with Tibbett & Britten gives Mothercare the
flexibility to reassess its warehouse requirements in the light
of that review.

Ben Gordon, Chief Executive, Mothercare, said

'We have worked with rigour and speed to reach this conclusion.
We have considered every option and looked for the most
appropriate solution to support the business at this time.  We
believe that the decision to remain at Daventry with Tibbett &
Britten gives Mothercare stability now and the flexibility to
review our requirements in two years time and to accommodate the
conclusions of the supply chain work we are undertaking.
Working closely with Tibbett & Britten, we are making good
progress in improving the cost structure and performance of the
warehouse and continue to meet customer needs effectively.'

CONTACT:  BRUNSWICK
          Susan Gilchrist/Philippa Power
          Phone: 020 7404 5959


MVI: Succumbs Into Receivership After Losing Major Contract
-----------------------------------------------------------
MVI, an East Yorkshire motor business, went into receivership
after losing its distribution contract with Indian conglomerate
Tata to MG Rover.

The car distributor ended its contract to distribute Tata cars in
December.  The latter transferred the rights to sell Tata's
Indica hatchback under its own brand as well as to distribute its
other vehicles, to MG Rover last month.

The move resulted to MVI, who also has a vehicle refurbishment
business and a parts division, losing "a third of its business
overnight," according to administrator Stuart Mackellar.

Mr. Mackellar disclosed that contract fell through after MVI
demanded for "greater support in terms of cash and resources."

The receivership led to the redundancy of 14 of MVI's 85
employees.

Mr. Mackellar said he is optimistic about the company's future
and is attempting to complete the sale of the of the vehicle
refurbishment business, which employs 80 staff, to a company
called Carmasters.

The spare parts division is still without a clear future since MG
Rover will also handle parts under the terms of its deal with
Tata.

The dwindling demand for spares for Russian car Lada, which MVI
used to import until 1997, also added to the uncertainty of the
division.

MVI had a turnover of GBP8 million last year.


NOVASIDE TIMBER: Strathclyde Homes Buys Business for GBP1M
----------------------------------------------------------
Novaside Timber, a company under receivership, sold its assets
for around GBP1 million to Strathclyde Homes, one of Scotland's
largest privately owned house builders.

The deal is expected to secure Novaside's operations, as well as
the jobs of its remaining 25 employees.

According to Strathclyde founder and managing director John
O'Neill, the deal includes Novaside's 15-acre site, and its
plant, machinery, buildings and offices and fixtures and
fittings.

"It does not include the order book, which falls with the
receivership, but we are actively pursuing the orders," he added.

Currently, Strathclyde is using a number of companies to supply
timber frames.  O'Neillsaid that business "will be consolidated
in Novaside," allowing the house builder to better control the
supply chain.

Novaside Timber, which also has a subsidiary, Novaside Homes, had
a turnover of GBP5 million last year and currently has an order
book worth GBP4 million.  The numbers are lower than what the
group expected, prompting company directors to call in a
receiver.

It was also the subject of a management buyout only two years
ago.

Novaside offers both standard designs and oneoffs. It offers help
with plot finding, design services, project management, full
client support and provide its own serviced plots to clients with
full build if required.

Strathclyde, which O'Neill started in 1988 with two semi-detached
homes, is now a major player in the independent newbuild market
in Scotland. It achieved turnover in the year to December 2002 of
GBP18.2m, up from GBP4.7m the previous year, and a pre-tax profit
of GBP1.2m. It employs 34 full-time and some 200 contract
employees.

CONTACT:  Novaside Timber Systems Ltd
          Castlecary, Cumbernauld
          Cumbernauld
          G68 0DT
          Phone: 01324 840909
          Fax: 01324 840907

          Novaside Timber Frame Ltd
          Castlecary, Cumbernauld
          Glasgow, G68 0DT
          Phone: 01324 840909
          Fax: 01324 840907
          Homepage: http://www.novaside.co.uk


PACE MICRO: Amstrad Chairman Denies Having Interest to Bid
----------------------------------------------------------
Amstrad PLC chairman Alan Sugar denied that he and his company
have any interest in acquiring a controlling interest in Europe's
largest set-top box maker, Pace Micro Technology.

He was earlier rumored to be planning a bid by his secret
building of shares in the company through Amshold, his family-
controlled investment company.

He said: "In view of recent media speculation and continuing
persistent press enquiries, I would like to make it perfectly
clear that I have no intention or desire at this time to acquire
control of Pace.

"That is also the position with regard to Amstrad, which has much
the same technology as Pace, and has the same important customer
base available to it.

"One of my private companies once owned some Pace shares but no
longer does so."

In January, Pace Micro posted a GBP15.9 million loss before tax
and goodwill compared to a profit of GBP22.2 million in 2001 due
to a fall in demand of set-top boxes.

CONTACT:  PACE MICRO TECHNOLOGY PLC
          John Dyson, Acting Chief Executive

          Ginny Pulbrook
          Director, Citigate Dewe Rogerson
          Phone: 020 7282 2940 until 17:30
          Thereafter: 01274 538005


PENNANT INTERNATIONAL: Losses Continue in the Second Half
---------------------------------------------------------
The AIM listed specialist in computer based training systems and
logistic support and data management software for the defence
industry announces its results for the year ended December 31,
2002.

'As indicated in my Interim statement in August 2002, the Board's
expectations were for an improving situation in the second half
of the year resulting from significant cost reductions and an
upturn in order intake.  I am pleased to say that these
expectations were realized.   Whilst losses continued in the
second half they were at a reduced level and the year ended with
a healthy firm order bank, a strong cash position and significant
new business prospects. '

Christopher Powell, chairman.

Full Chairman's Statement and financial details:

CHAIRMAN'S STATEMENT

For the year ended December 31, 2002

As indicated in my Interim statement in August 2002, the Board's
expectations were for an improving situation in the second half
of the year resulting from significant cost reductions and an
upturn in order intake.  I am pleased to say that these
expectations were realized.  Whilst losses continued in the
second half they were at a reduced level and the year ended with
a healthy firm order bank, a strong cash position and significant
new business prospects.  Delays to contract awards in the early
part of 2002, combined with delays in the provision of data by
customers, resulted in revenues being deferred to the second half
and into 2003.  Other delayed contracts were placed late in the
second half and made little contribution to the 2002 results.
2003 is expected to benefit from these delayed revenues and the
significant increase in orders which has resulted in a near
doubling of the order bank.

RESULTS AND DIVIDEND

The Group loss on ordinary activities after taxation was
GBP1,483,329 (2001: Loss GBP2,311,058).  Again, as last year,
your Board is not recommending a dividend.

At the year-end the Group had cash balances of GBP599,265, and
unused overdraft facilities of GBP1,500,000, compared with a net
overdraft of GBP1,678,125 at December 31, 2001.  This financial
improvement follows the Placing and Open Offer in March 2002,
which raised GBP1,995,112 net of expenses, the sale of surplus
property in Southampton, a reduction in working capital as work
in progress continues to be converted to cash and by improved
progress payments. In March 2002, the Company's short-term bank
loan of GBP1,500,000 at December 31, 2001 was converted to a ten-
year term loan repayable by monthly installments. Gearing at
December 31, 2002 was 50% (2001: 140%).

CURRENT TRADING AND OPERATIONS

I am pleased to report that the higher levels of tendering
activity and order intake achieved in the final quarter of 2002
have continued into the first quarter of 2003.  All parts of the
Group have contributed to the significantly strengthened firm
order bank, even under the difficult market conditions being
experienced last year.   The near doubling of the firm order
bank, compared to the December 2001 figure, has the potential to
generate revenues of approximately GBP10,000,000.  Much of the
new business was secured in competitive tender, with some 45% by
value with new customers.

Pennant Training Systems Limited started the year with a major
contract from Westland Helicopters Limited for two training
devices in support of a new sale by the manufacturer of Lynx 300
helicopters, having a significant value and with revenues
extending into the first quarter of 2004.   Also in the early
part of the year, the company received the renewal and extension
to the Full Contractor Support and Post Design Services contracts
by the Ministry of Defence, with revenues extending out to 2005.
In addition, the company announced in November
2002 the award by BAE Systems of Phase 1a of a program to supply
a Computer Based Training and Virtual Aircraft Training System in
support of the South African Air Force Hawk Lead-In Fighter
Trainer program.  Phase 1a has been completed and the order for
Phase 1b was received in March 2003.  Work is on going whilst
detailed discussions leading to a contract for Phase 2, the main
design and production phase, are in progress.  Phase 2 has a
significant value and is expected to generate revenues in the
period 2003 to 2005.  A third phase to this program is
anticipated, to bring the training systems up to the final
technical standard of the aircraft, starting in 2005 and for
delivery in 2006.

Another major order, in the second half, was the software upgrade
program awarded to Pennant Australasia Pty Limited by the
Australian Defence Organisation that was announced in November
2002.  This program has a significant value with the main
revenues in 2003 and 2004, but with support revenues extending to
2009.

In addition to regular maintenance and support contract work,
numerous smaller orders were received in all businesses.  Pennant
Training Systems Limited recorded a two-year high for a single
month's intake when lower value, short schedule orders
aggregating GBP1,000,000 were received in November 2002 for
completion and delivery in 2003.  Pennant Information Services
Limited secured the renewal of key enabling contracts including a
BT corporate contract, a Ministry of Defence contract in support
of Naval documentation and a new business outsourcing contract
from a major defense industry prime contractor.
The company also completed orders from a major defense
contractor, in support of their Private Finance Initiative new
equipment program for the Ministry of Defence.  These orders
included the design of a training system, production of the
training media and production of technical manuals for the
equipment.  A further order with a substantial value is
anticipated covering the delivery of training on this new
equipment over a 27-month period to the Army, Royal Marines and
the Royal Air Force.  This is a new activity that extends the
company's portfolio of services.

Pennant Software Services Limited, in addition to product sales
in the UK and Europe, provided software development and product
support to Pennant companies in Australia, the USA and Canada,
and also recorded repeat product sales in the Czech Republic and
Taiwan.  In North America, the Canadian office was particularly
busy providing specialist consultancy for the implementation of
the major logistic support software developed and in service with
agencies of the Department of National Defence.  The USA office
continued to provide technical support to its major defense
contractor clients as well as recording product sales to a number
of existing and new clients.  In Australia, product support and
the introduction of the OmegaPS Analyzer product into the
Materiel Systems Branch in midyear was followed by the award,
referred to above, of the major software upgrade contract by the
Commonwealth of Australia in November.  Work on this program is
underway and the Commonwealth of Australia decision has opened
the door for discussions with Australian defence industry prime
contractors for the upgrade of their logistic support analysis
software, with the first product sales forecast for the second
half of 2003.

PROSPECTS AND THE FUTURE

Building relationships and the promotion of the Pennant
businesses as an integrated suite of capabilities, products and
services has been a prominent activity in past months.  Promoting
Group companies and getting the key messages to current and
prospective clients in Defence Ministries, defense contractors
and prime contractors in our target non-defence industries -
information technology and telecommunications, oil and gas,
petro-chemical, consumer goods retail, rail transport and
aerospace - is an important channel for keeping them abreast of
product and technology developments.    It is also the platform
to outline the business objectives of Pennant companies, which
has been doubly important as the Group has been re-positioning
itself in the market place as a technology partner, a provider of
services and with the capability to deliver solutions.

Pennant businesses depend on data and the Pennant approach is
aimed at coordinating the one-off collection, collation and
analysis of that data as a base to a coherent integrated logistic
support process.  Organized data creates information and putting
information into context generates knowledge.  It is
Pennant's objective to deliver those elements of data,
information and knowledge required by an individual to carry out
a specific task when, where, in the form and at the time it is
needed.  This approach applies equally to defense and non-defense
applications.  This reflects the need for major contractors and
operating organizations to put the delivery of solutions and
through-life support of products into sharper focus.

The immediate future for Group businesses is based on the strong
order bank and its position and potential in its markets.
Notwithstanding the many new business opportunities in prospect,
the directors have taken a prudent approach in their 2003
business plan.  This is predicated on the experience of the
extremely difficult market conditions of 2001 and 2002.  Much
depends, as ever, on orders being placed and contracts awarded in
a timely fashion and then running to schedule.

CONCLUSION

With the benefit of cost reducing measures taken in 2002,
efficiency gains during the year and with further cost reductions
in the first quarter of this year, combined with the high level
of activity arising from the order intake in the second half of
last year, the prospects for a return to profitability in 2003
are very strong.   Unlike the situation described in my statement
last year, we enter 2003 with a solid platform on which to
develop and there is no doubt that the Group, with its lower cost
base, a healthy firm order bank and sound cash position, is very
much stronger than it was 12 months ago.  It is these reasons
that give your Board every confidence in the future.

Finally, I express my thanks to our clients for their confidence
and business, to our shareholders for their support to the
Placing in March 2002, and to my colleagues and staff for their
commitment and energy throughout the year.

Christopher Powell
CHAIRMAN
March 24, 2003

To See Financial Statements:
http://bankrupt.com/misc/Pennant_International.htm

CONTACT:  PENNANT INTERNATIONAL
          Joe Thompson
          Phone: 01452 714881
          Ken Rees, Winningtons
          Phone: 0117 317 9477
          Mobile: 07802 466567
          Mike Coe
          Rowan Dartington
          Phone: 0117 9330020


PIZZAEXPRESS PLC: Firm Offer From GondolaExpress Is Imminent
------------------------------------------------------------
GondolaExpress moved to assure the shareholders that a firm offer
is imminent in what appears to be an attempt to persuade
shareholders of struggling pizza chain PizzaExpress PLC not to
accept the offer of entrepreneur Luke Johnson.

Capricorn Ventures International, the owner of the Nando's chain,
and TDR Capital, the private equity firm, has been threatening to
trump Mr Johnson's 367p-a-share offer.

CVI and TDR declined to comment, but City sources believe the
partners could make an offer soon of between 380p and 390p a
share.  Latest rumors suggest a figure of 385p, which could value
PizzaExpress at GBP276 million.

A source close to Mr Johnson's bidding vehicle, Venice Bidder,
refused to say whether the entrepreneur had the resources to be
able to raise his offer in the event of a competing bid.  ABN
Amro Capital backs Mr Johnson.

PizzaExpress, which admitted having tough trading following a
slump in tourism and downturn in the economy, posted a year of
dwindling sales and falling share value.

It put the business up for sale after receiving an approach from
Mr Osmond in November.

By the first closing date for acceptances, Mr Johnson spoke for
14.4% of the struggling chain's shares, although that included
the 8.6% stake he has previously acquired.

Losing out to a higher bid could mean a GBP2.6 million break fee
for the entrepreneur.

Meanwhile, some shareholders, undeterred by the likelihood of a
higher offer from CVI and TDR, still insist to wait for
improvements in the economic and political climate to proceed
with the sale.

A representative of Analyst Investment Management, which has a
stake of almost 3% in PizzaExpress, insisted that a bid of "367p
or 385p makes very little difference" since "this is the wrong
time and the wrong price".

CONTACT:  PIZZAEXPRESS PLC
          1 Union Business Park
          Florence Way
          Uxbridge
          UB8 2LS
          Contacts:
          Nigel Colne, Chairman
          David Page, Chief Executive
          Paul Campbell, Group Finance Director
          Phone: 01895 618618
          Sue Pemberton, Citigate Dewe Rogerson
          Phone: 020 7638 9571



RETAIL STORES: Narrows Pre-tax Losses to GBP1.5 Million
-------------------------------------------------------
HIGHLIGHTS

-- Sales over period increased by almost 10% to GBP26.1m
-- Significant improvement of EBITDA to GBP1.1m from GBP0.2m last
year
-- Pre-tax losses greatly reduced to GBP1.5m from GBP13.1m last
year, after charging for brand impairment last year
-- Impact of newly opened Regent House:

    -- footfall increased by 40%
    -- attracting new customers
    -- greater draw for remaining store

-- Strengthened management team with appointment of Iain Renwick
and Lucille Lewin
-- Strong Christmas and New Year Sale trading
-- A further 10,000 sq ft of sales area to be reinstated during
2004
-- Autumn launch of Liberty own label clothes and accessories
commencing with a childrenswear range followed by an edited range
of ladieswear, menswear and accessories

'We believe we are reaching a very exciting stage in Liberty's
development where, for the first time in many years, there is a
clearly defined strategy aimed at creating both a strong brand
and a profitable business,' Richard Balfour-Lynn, Chairman.

CHAIRMAN'S STATEMENT
For the six months ended December 28, 2002

The six months under review has been an extremely eventful period
for the Company.  The full impact of Liberty's newly opened
Regent House was felt for the first time, as was the refurbished
ground floor of the Tudor building, and the new Carnaby Street
entrance. Even more importantly, there is a new sense of purpose
and leadership within Liberty following a strengthening of the
senior management team.

The redesigned and refurbished Regent House has been a great
success, both with our existing customers, as well as attracting
new customers into the store. The exciting range of branded
luxury goods presented in a modern retailing environment has
proved to be very popular among the shopping public. The
increased footfall has heightened awareness and drawn more
customers into the rest of the store.

Since Regent House was re-launched a year ago, footfall has risen
by 40% and remained at this level until only a few weeks ago when
the combined effects of the Congestion Charge, Central Line tube
closure and the build up to war in the Gulf have deterred
shoppers from the West End of London.

The other key events were the appointment last autumn of Iain
Renwick as Chief Executive and Lucille Lewin as Creative
Director. We anticipate that the combined strength of Liberty's
management team will considerably enhance the store's product
mix, merchandising and marketing through the remainder of 2003
and well into the future. This strengthened management team is
also laying the foundations for the long-term development of the
Liberty brand.

The effect of all these positive changes is that sales for the
six months to December 28, 2002 advanced by almost 10% to
GBP26.1m from GBP23.8m for the same period a year ago.  Much
effort has been directed towards improving gross margins together
with ensuring a clean stock position.

Overheads net of operating income and excluding last year's
impairment cost increased by GBP1.2m to GBP10.4m. The increase
principally comprises GBP0.5m of Regent House overheads, which
was not open during the comparative period last year, and
GBP0.4m of additional marketing costs. We continue to focus on
reducing costs and the effect of our current restructuring
program will be seen later in the year.


CHAIRMAN'S STATEMENT
For the six months ended December 28, 2002

Earnings before interest, tax, depreciation and amortisation
(EBITDA) improved significantly to GBP1.1m from GBP0.2m last
year. Overall, we produced a greatly reduced loss before tax of
GBP1.5m against a pre tax loss of GBP13.1m for the same period a
year ago after charging for brand impairment.

Liberty traded well during the critical Christmas period and
through the New Year Sale. However, trading over the past few
weeks has become increasingly tough due to the build up and
commencement of war in the Gulf.

Although there is a degree of uncertainty in the present climate
we are implementing a number of changes and initiatives that, we
believe, will lay solid foundations for Liberty's future
viability and success.  A total review of the entire Liberty
management structure has been completed and we are now in the
process of reorganising, which will result in significant cost
savings and increased operational efficiency.

We also anticipate that during the course of 2004 we will be able
to reinstate the fourth floor of the Tudor building as retail
space, increasing our sales area by 10,000 sq ft.

The other major initiative that is currently underway is a
comprehensive development program for the introduction of Liberty
own label products.  In the early autumn, we expect to introduce
a range of Liberty children's wear clothing and accessories,
which will be followed by an edited range of own label ladies'
wear, men's wear and accessories.

We believe we are reaching a very exciting stage in Liberty's
development where, for the first time in many years, there is a
clearly defined strategy aimed at creating both a strong brand
and a profitable business. However we cannot look at Liberty in
isolation, there are many external factors, not least of all,
international conflict, that will impact on consumer spending.
With this in mind, we view the future with caution.

Richard Balfour-Lynn
Executive Chairman
London
March 25, 2003

To See Financial Statements:
http://bankrupt.com/misc/Retail_Stores.htm

CONTACT:  RETAIL STORES PLC
          Phone: 020 7734 1234
          Iain Renwick, Chief Executive
          Nick Mather, Finance Director

          Baron Phillips Associates
          Phone: 020 7600 2288
          Baron Phillips


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

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

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
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Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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