/raid1/www/Hosts/bankrupt/TCREUR_Public/030508.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Thursday, May 8, 2003, Vol. 4, No. 90


                              Headlines

* B E L G I U M *

SABENA: Sells Prized Painting and Other Memorabilia at Auction

* C Z E C H   R E P U B L I C *

UNION BANKA: FPV to Borrow CZK3 Billion to Pay UB Clients

* F R A N C E *

ALCATEL: Selects HPs Service to Save 30% on Documentation Costs
EADS: Confirms 2003 Forecast With Results for First Quarter
RHODIA SA: Executive Urges Sustainability Measures for Industry
VIVENDI UNIVERSAL: Unit Stands to Pay Damages to TVT Records
VIVENDI UNIVERSAL: Receives Bids From Investments Funds for UGC

* G E R M A N Y *

BERTELSMANN AG: Invests EUR160 Million in Printing Presses
COMMERZBANK AG: Defies Expectation, Returns to Black in Q1
HVB GROUP: Sale of Vereins- un Westbank Generates Low Offers
MOBILCOM AG: KPN Denies Report It Agreed to Acquire UMTS Network
MUNICH RE: Online Platform for Reinsurance to Be Sold or Closed
THYSSENKRUPP AG: Fulfills Government's Code Recommendations

* H U N G A R Y *

MALEV AIRLINES: Appointed Lasklo Sandor President and CEO at EGM

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

HELIX CAPITAL: Moody's Downgrades Several Classes of Notes
KONINKLIJKE AHOLD: Extends Funding Cover for U.S. Foodservice
KONINKLIJKE AHOLD: Argentine Unit Pays Debt to Chilean Retailer
KONINKLIJKE AHOLD: Cencosud CEO Hopes to Grab Deal at Month's End

* P O L A N D *

BRE BANK: Measure Adopted in Mid-2002 Ushers Return to Black
NETIA HOLDINGS: Reports Net Loss of PLN80 MM for First Quarter

* S P A I N *

LYCOS EUROPE: Losses Strongly Improved Compared to Q1/02

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

ABB LTD.: Offers US$85 Million Worth of Shares in Sinopec
SWISS INTERNATIONAL: To Reduce Capital, Elect New Board Members
VON ROLL: Has Two More Months to Devise Rescue Plan

* U N I T E D   K I N G D O M *

ASCOM: Supplements Board, Changes Representation of Muller-Mohl
BRITISH AIRWAYS: Issues Traffic and Capacity Statistics for April
BRITISH ENERGY: Presents Output From Power Stations for April
CHRISTIAN SALVESEN: Conditional Sale of German Business Agreed
GLAXOSMITHKLINE PLC: Chief Executive Accrues Large Pension
LE MERIDIEN: Managers to Present Restructuring Plan to Investors
IMPERIAL CHEMICAL: Chitwood & Harley Files Class Action Lawsuit
NMT GROUP: Benefits From Cost Reduction, But Remains Cautious
SEYMOUR PIERCE: Sells Antfactory Investments, Changes Board
THUS GROUP: Meets Target, Says on Track for Further Growth


=============
B E L G I U M
=============


SABENA: Sells Prized Painting and Other Memorabilia at Auction
--------------------------------------------------------------
Bankrupt Belgian airline Sabena has sold the "L'Oiseau de Ciel"
or "Sky Bird" painting by Belgian surrealist Rene Magritte at an
auction last Monday.

The picture went to an anonymous buyer for USD3.8 million, almost
USD1.12 million more than the auctioneers expected.

Auction house representative Francois de Jonkheere told Dow Jones
Newswires the mystery bidder was a family friend of a "well-known
and patriotic Belgian industrialist".  According to the go-
between who bid on the painting for the buyer the artwork would
remain in Belgium but gave no other details.

Sabena had commissioned the painting in 1965, featuring a
stylized bird in flight over an illuminated runway, its body
filled with clouds against a light-blue sky.  The image appeared
in Sabena advertising campaigns and became the carrier's symbol,
some people referring to it as a national icon.

The Magritte painting was put up for auction along with 461 other
memorabilia including posters, photographs and even passenger
seats.  The EUR4 million earned at the two-day auction will help
pay for redundancy packages.

Thousands of employees lost their jobs when Sabena went bankrupt
in November 2001.  Many believe the order of 34 Airbus jets was
the beginning of the end for Sabena.


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


UNION BANKA: FPV to Borrow CZK3 Billion to Pay UB Clients
---------------------------------------------------------
Part of the money for the payment of CZK12.5 billion to clients
of bankrupt Union Banka will come from a syndicated loan drawn up
by the Deposit Insurance Fund (FPV).

Information from Pravo indicated that FPV opened a tender for the
loan provider and received offers from five banks.  Interest
should move moderately above interest on securities issued by the
state, the daily press added.

FPV spokesman Pavel Bidlo confirmed the report.

According to Czech Happenings, Bidlo said the FPV would borrow
CZK3 billion from Komercni banka, Ceska sporitelna and CSOB, with
the contract to be signed next week.

The Czech news agency also said the FPV has gathered all data on
insured deposits in UB and submitted the last background
documents necessary for securing the payments to GE Capital Bank
representatives on Monday.  Payments at GE outlets will begin on
May 17.

Clients are entitled to 90% of their deposits or a maximum of
close to CZK800,000.  However, they are reportedly opposed to it
and want to be paid 100% of their deposits, like clients of some
previous banks that went bankrupt.

Union Banka closed down on February 21 due to insufficient
liquidity.  Its trouble stemmed from an unmanageable expansion
when it took over struggling financial houses in mid-1990.  A
restructuring plan was submitted on March 3, but was later
rejected by the Finance Ministry.

CONTACT:  UNION BANKA
          ul. 30 dubna c. 35
          70200 Ostrava
          Phone: 596108111
          Fax: 596120134
          Home Page: http://www.union.cz
          E-mail: union@union.cz


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


ALCATEL: Selects HPs Service to Save 30% on Documentation Costs
----------------------------------------------------------------
Paris, May 6, 2003 - In conjunction with its Adaptive Enterprise
launch, HP (NYSE: HPQ) announced a major services agreement with
Alcatel (Paris: CGEP.PA and NYSE: ALA) worth US 45 million
dollars.

Under this contract, HP will audit and redesign Alcatel's
installed printing and copying base, replacing printers and
copiers throughout Europe with a complete managed print service
and giving Alcatel a more flexible output environment and
increased operational efficiencies.

This service uses HP's latest technology including multi-function
printers offering scanning, faxing, copying and email file
transfer functionalities. It is complemented by integrated
management tools enabling daily accounting and tracking of print
volumes and jobs, offering transparent and easy cost control
across Alcatel's offices, based on a usage payment.

The contract is currently being rolled out in more than 100
European sites.

"This five year contract will contribute to our fixed cost
reduction program and will allow us to decrease our current
printing and copying costs by 30 percent," said Jean-Jacques
Lang, director, Corporate Purchasing of Alcatel. "We wanted to
move from a product approach to an "all-in-one" service approach,
which HP has rightly understood and been able to meet".

"The project leverages the breadth of experience that we have
across HP, combining the expertise in solutions and services that
our customers want and value," said Isabelle Roux-Buisson,
general manager, Imaging and Printing Services, EMEA of HP. "With
Alcatel, we placed their requirements at the centre of the
solution development to provide them with a system that ensured
their business agility."

About Alcatel
Alcatel provides end-to-end communications solutions, enabling
carriers, service providers and enterprises to deliver content to
any type of user, anywhere in the world. Leveraging its long-term
leadership in telecommunications networks equipment as well as
its expertise in applications and network services, Alcatel
enables its customers to focus on optimizing their service
offerings and revenue streams. With sales of EURO 16.5 billion in
2002, Alcatel operates in more than 130 countries.

About HP
HP is a leading global provider of products, technologies,
solutions and services to consumers and businesses. The company's
offerings span IT infrastructure, personal computing and access
devices, global services and imaging and printing. HP completed
its merger transaction involving Compaq Computer Corp. on May 3,
2002. More information about HP is available at
http://www.hp.com.


EADS: Confirms 2003 Forecast With Results for First Quarter
-----------------------------------------------------------
EADS Confirms 2003 Forecast
-- First quarter EBIT of EUR 130 million
-- Strong seasonal influences on EADS businesses
-- Order intake increases by 41%
-- Recent Airbus orders: continuous strong market success
-- CEOs: "EADS expects to achieve full-year 2003 targets"

EADS, the world's second largest aerospace and defence group,
confirms its forecast for the 2003 business year. The company
expects 2003 EBIT (Earnings before interest and taxes, pre
goodwill amortization and exceptionals) in the same range as
2002, based on 300 deliveries by Airbus.

The EADS CEOs, Philippe Camus and Rainer Hertrich, noted: "In the
first quarter of 2003, EADS results reflect the strong seasonal
influences on our businesses. Nevertheless, we expect to achieve
our full year targets for 2003 thanks to ongoing commercial
success and strict financial discipline."

In the first quarter, the company's EBIT amounted to EUR 130
million. This reflects the impact of higher Research and
Development (R&D) costs, as planned, particularly for the Airbus
A380, and the number of Airbus deliveries in the first quarter
that was, as expected, slightly lower than in 2002. This,
however, does not impact the overall delivery target for 2003.
The first quarter 2002 EBIT of EUR 315 million had also included
a positive effect of EUR 63 million from the sale of Aircelle.

Total EADS revenues in the first three months of 2003 amounted to
EUR 5.5 billion (first quarter 2002: EUR 6.4 billion), reflecting
lower Airbus deliveries and a weaker US-Dollar, as the company
reported on Tuesday on the day of its third Annual General
Shareholders Meeting in Amsterdam.

The EADS CEOs said: "We are confident that the business figures
will stay on track according to our plan during the course of the
year. Seasonality is normal for the aerospace industry in general
and for EADS. Whilst the conclusion of the war in Iraq gives us
hope for a gradual improvement in the international business
climate, we continue to closely monitor the possible impact of
SARS on the aviation market and the general economic slowdown.
However at this point in time there is no reason for changing our
forecast."

"EADS remains a strong and stable company with a solid balance
sheet, industry-leading order book, commercial aircraft
leadership, and growth in defence," the CEOs emphasized. "EADS is
actively and prudently managing the business, with a focus on
cash, control of costs, and the development of new business. The
recent commitments from JetBlue and Chinese Airlines,
representing a total of 95 Airbus aircraft, are strong evidence
of our continued commercial success in two fast growing market
segments: low cost carriers and China - despite SARS."
Actions taken in the first quarter reinforced EADS' growing focus
on defence. The CEOs noted that "our recent decision to reinforce
our Defence and Security Systems Division through the inclusion
of our military combat aircraft business, will further enhance
our ability to deliver integrated systems able to meet the
demands of future defence markets."

EADS subject to strong seasonal influences

EADS' defence and parapublic businesses, which are mainly part of
the Aeronautics and Defence and Civil Systems Divisions, are
subject to strong seasonal influences. Typically, revenues and
earnings are significantly stronger in the second half of the
year.

At Airbus, the second and the fourth quarter of each year are
usually the strongest.

EADS' order intake increased in the first three months of 2003 by
41% from EUR 3.8 billion to EUR 5.4 billion, thanks to higher
orders received by Airbus, which signed contracts for 42 aircraft
(first quarter 2002: 18 aircraft). The EADS order book amounted
to a total of EUR 162.7 billion at the end of March and remains
the strongest in the global aerospace industry.

EADS recorded Net Income pre-goodwill and exceptionals of EUR 62
million, or EUR 0.08 per share, for the first quarter of 2003.

This compares with EUR 139 million, or EUR 0.17 per share, for
the same period last year, reflecting the EBIT decrease which was
partly offset by tax effects. As usual at EADS, Net Income was
significantly affected by non-cash amortisation of goodwill,
amounting to EUR -140 million in the first quarter. Net Income
after goodwill and exceptionals stood at EUR -93 million (first
quarter 2002: EUR -25 million).

EADS reported a positive Net Cash position of EUR 538 million at
the end of March 2003 (EUR 1,224 million on 31 December 2002).
The Net Cash position figure was impacted by the seasonality
effects in operations and the first-time 100% consolidation of
Astrium.

In February, EADS successfully launched its first Eurobond
transaction, raising EUR 1 billion.

At the end of March 2003, EADS had 107,263 employees,
representing an increase of 3% compared to year-end 2002, due to
the full consolidation of Astrium and the A380 ramp-up.

Divisional revenues and earnings

The Airbus Division recorded first quarter revenues of EUR 3.8
billion (same period 2002: EUR 4.6 billion). EBIT amounted to EUR
166 million (first quarter 2002: EUR 396 million). The decrease
in EBIT is mainly due to the expected increase in R&D cost (EUR
445 million compared to EUR 320 million in the first quarter
2002) primarily related to the A380 ramp-up. However, the
operating performance of Airbus before R&D remains very strong,
with an EBIT margin pre-R&D above 15%. EBIT was also impacted by
lower deliveries: From January to March 2003, Airbus delivered 65
aircraft, compared with 72 aircraft in the same period last year.
The revenues and profit recognition of three delivered aircraft
has been deferred, due to the customer payment terms of the
respective contracts. In addition, the figure for the first
quarter of last year included a positive one-time effect on EBIT
of EUR 63 million from the sale of EADS' participation in the
company Aircelle.

Order intake at Airbus was considerably up, amounting to EUR 3.4
billion (first quarter 2002: EUR 1.3 billion). In January, a
Memorandum of Understanding was signed with Malaysia Airline
Systems on six A380 aircraft (not yet in the firm order book),
demonstrating the market success of this programme. In early
April, the Spanish carrier Iberia signed a contract to acquire 12
A340-600 aircraft (five firm orders and seven options).

Revenues at the Military Transport Aircraft Division remained
close to last year's level, at EUR 96 million compared to EUR 101
million in the first quarter 2002. EBIT amounted to EUR -11
million (first quarter 2002: EUR -12 million). Order intake
doubled from EUR 61 million to EUR 122 million. The performance
of Military Transport Aircraft is expected to improve
substantially as a result of the A400M order which is expected to
be finalized soon.

The Aeronautics Division slightly increased revenues in the first
quarter 2003 to EUR 969 million (first quarter 2002: EUR 936
million). EBIT of EUR 33 million was double last year's first
quarter result (EUR 16 million), reflecting the good performance
of most businesses. Order intake decreased from EUR 1,458 million
to EUR 915 million in the first quarter comparison but is still
in the order of magnitude of revenues. The 2002 first quarter
order intake included significant contracts for NH90 and Tiger
helicopters.

The Space Division, now consolidating 100% of Astrium, recorded
revenues of EUR 403 million in the first quarter 2003, down from
EUR 426 million in the same period last year. EBIT was negative
at EUR -21 million (January to March 2002: EUR -33 million). The
cost of the planned restructuring estimated at about EUR 280
million will be accounted for in the following quarters. First
quarter 2003 order intake increased from EUR 316 million to EUR
341 million.

Revenues for the Defence and Civil Systems Division amounted to
EUR 530 million (first quarter 2002: EUR 539 million). Double-
digit revenues growth at MBDA, thanks to the ramp-up of Storm
Shadow and Meteor missiles, was offset by a weaker performance
from EADS Telecom. However, the biggest part of the Division's
revenues is traditionally recorded towards the end of each
calendar year. This is again a key factor in negative EBIT of EUR
-72 million (first quarter 2002: EUR -72 million). EADS expects
the Division to post a positive result in 2003 that is higher
than the previous year's EBIT of EUR 40 million. Order intake
amounted to EUR 761 million (same period last year: EUR 858
million). In the future, the Military Aircraft business will be
included in this Division, which will be renamed Defence and
Security Systems.

Outlook
EADS confirms the outlook for 2003, stated by the company on 10
March 2003: EADS anticipates 2003 revenues (assuming an exchange
rate of 1 EUR = 1.10 $) and EBIT in the same range as 2002. This
is based on 300 deliveries by Airbus - with all firm orders
secured by customer pre-delivery payments - and taking into
account the increase in R&D spending to peak levels in 2003 for
the A380 ramp-up.

The EADS 2003 EBIT target also includes a considerable provision
for a significant re-engineering of the Space business in order
to achieve profitability during 2004.
These negative effects will be offset by the expected improved
performance of the Divisions, which are now ramping up defence
programs (Aeronautics, Defence and Security Systems, and Military
Transport Aircraft).

In terms of Cash Flow, EADS reiterates its guidance that Free
Cash Flow before customer financing will be positive and that the
company continues to contain customer financing.

About EADS:
EADS is a global aerospace and defence company and is the world's
second largest in terms of revenues with EUR 29.9 billion in
2002. EADS has a workforce of more than 100,000 and is a market
leader in defence technology, commercial aircraft, helicopters,
space, military transport and combat aircraft, as well as related
services. Its family of leading brands includes the commercial
aircraft manufacturer Airbus, the world's largest helicopter
manufacturer Eurocopter, the space company Astrium and MBDA, the
world's second largest missile company. EADS is the biggest
partner in the Eurofighter consortium and heads the A400M
military transport aircraft programme. The company has over 70
sites in Germany, France, Great Britain and Spain. It is active
in many regions worldwide, including the U.S., Russia and Asia.

To See Financial Statement: http://bankrupt.com/misc/EADS.pdf

CONTACT:  EADS
          Eckhard Zanger
          EADS Communications Finance
          Phone: +49 89 607 27961


RHODIA SA: Executive Urges Sustainability Measures for Industry
---------------------------------------------------------------
A "new mindset" that incorporates the principles of
sustainability into company strategies is necessary for resumed
growth and public acceptance of the chemical industry, according
to a leading industry executive.

Speaking at the industry's largest one-day conference, Rhodia
Inc. (RHA) President Myron Galuskin called on industry leaders to
recognize more than economics in growth strategies. Beyond
economics, he explained, the principles of sustainability also
require consideration of environmental and social impacts from
companies' manufacturing operations.

Galuskin was the keynote speaker last week at Pittsburgh Chemical
Day, where nearly 1,000 leaders also focused on "surviving
change" through entrepreneurship and new techniques in managing
raw materials, logistics and related processes.

In his remarks, Galuskin noted that "for years, our progress in
chemistry was nothing short of amazing: we had a great run of
discovering new compounds and products," including well-known
brand names such as Lycra, Plexiglas, Round-up and Teflon.

"Chemical innovations generated new products, new markets,
financial rewards and admiration from many audiences," he said.

"Yet the business of chemistry, an essential industry, today is
undervalued, its achievements too often unrecognized and its
reputation frequently maligned," he said. "We do not always see
ourselves the way others see us.

"We need to move beyond surviving, to sustaining. By shifting our
paradigm toward sustainability, we can re-earn and restore the
admiration of stakeholders, both old and new," and attract the
"best and the brightest" scientific, professional and managerial
talent in the workplace.

Galuskin identified industry stakeholders beyond traditional
customers and investors, to include neighbors of chemical plants,
educators, current and prospective employees, government
agencies, and even activist groups. "Indeed, social and
environmental factors have been defining our fate for many
years."

He said both new and traditional stakeholders now look beyond
economic factors, to include social responsibility and
environmental performance in determining their support for the
industry's products and operations.

Gakuskin recommended steps to help ensure that principles of
sustainability are incorporated into industry strategies. They
include minimizing manufacturing impacts on natural resources and
neighboring communities; measuring progress on environmental
impacts and energy consumption; and providing greater
transparency and accountability for that progress.

The greatest challenge, he said, is to make strategic decisions
based on social and environmental factors, in addition to
economic considerations.

"When these interests are aligned, the can all work together.
Because in the end, we will be judged by many stakeholders who
don't actually buy our products directly," but hold important
stakes in companies' economic, social and environmental
performance.

Rhodia is one of the world's leading manufacturers of specialty
chemicals. Providing a wide range of innovative products and
services to the consumer care, food, industrial care,
pharmaceuticals, agrochemicals, automotive, electronics and
fibers markets, Rhodia offers its customers tailor-made solutions
based on the cross-fertilization of technologies, people and
expertise.

Rhodia subscribes to the principles of Sustainable Development,
communicating its commitments and performance openly with
stakeholders. Rhodia generated sales of $6.24 billion (6.6
billion euros) in 2002 and employs 24,500 people worldwide,
including 3,000 in North America. Rhodia is listed on the Paris
and New York stock exchanges.


VIVENDI UNIVERSAL: Unit Stands to Pay Damages to TVT Records
------------------------------------------------------------
A Manhattan federal court has ordered unit of Vivendi Univeral
SA, together with its chief executive officer, to pay a total of
US$131 million fine for damages to TVT Records, an independent
label in New York.

The fine includes US$23 million in compensatory damages and
roughly $108 million in punitive damages for blocking the
issuance of a record by rapper Jeffrey ``Ja Rule'' Atkins, a jury
said.

The panel earlier ruled that Vivendi's unit, Island Def Jam,
breached a contract by backing out of an agreement that would
have allowed TVT Records to release an album of early recordings
by Atkins.

The jury also held Island Def Jam's chief executive officer, Lyor
Cohen, jointly responsible for the compensatory damages.  As
such, it ordered Mr. Cohen to pay US$56 million.  Island Def Jam
will shoulder the remaining US$52 million.

TVT Records had sought $40 million in compensatory damages and
$360 million in punitive damages, Island Def Jam lawyer Matthew
Dontzin said. TVT Records attorney Peter Haviland said TVT had
sought only $30 million in total damages when it brought the
case.

Mr. Dontzin said: "We are disappointed with the jury's
verdict.''  He indicated to "vigorously appeal the verdict," according
to Bloomberg.


VIVENDI UNIVERSAL: Receives Bids From Investments Funds for UGC
---------------------------------------------------------------
Investment funds LBO France and CDC Ixis Equity Capital have
reportedly presented beleaguered Vivendi Universal SA with firm
bids for its majority stake in UGC cinema chain.

Les Echos, without citing sources, said both investment funds
have come forward with offers for the business.  Earlier favorite
bidder Paribas Affaires Industrielles has pulled out, the news
agency added.

Vivendi Universal directly owns 55% of UGC, which estimated to be
worth EUR400-500 million, and a further 15.6% indirectly through
its interests in Cine Cite.

Moreover, Les Echos reported that Vivendi is currently
negotiating a deal with the Verrecchia family and other
minorities over its option on a portion of any shares sold -- an
option that could be worth EUR70 million.

French media firm Vivendi Universal targets to dispose a large
chunk of its assets to raise EUR7 billion (US$7.8 billion) by the
end of the year.  Proceeds of the sales will go down to paring
the group's EUR11 billion debt.

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations
          Paris
          Daniel Scolan
          Phone: +33 (1).71.71.3291
          Laurence Daniel
          Phone: +33 (1).71.71.1233
          or
          New York
          Eileen McLaughlin
          Phone: +(1) 212.572.8961


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


BERTELSMANN AG: Invests EUR160 Million in Printing Presses
----------------------------------------------------------
German media giant Bertelsmann AG is reportedly moving to ensure
its position as the market leader in printing in Europe.

Hartmurt Ostroski, managing director of Bertelsmann unit Arvato,
told the Financial Times Deutschland Berteslmann is building a
new printing press in Treviglio, Italy and will invest EUR60
million to upgrade its printing plant in Nuremberg.

The new intaglio printing press in Italy, which costs EUR100
million, is expected to start operating in early 2005.

Bertelsmann, which generates about half of its sales in Germany,
distributes more than 700 magazines through its 70 publishers.
Its earnings before interest, taxes and amortization rose 20% to
EUR71 million last year from 2001.  However, sales fell 2.3% to
EUR731 million as advertising spending declined.

It also incurred liabilities after spending USD2.74 billion to
buy Zomba Music Group, the home of artists such as Britney Spears
and N'Sync, and after an expansion into Internet businesses
failed to pay off.

The German company is currently selling its BertelsmannSpringer
science-publishing unit for USD1 billion, which analysts consider
a reasonable price, to reduce its EUR3 billion debt.

CONTACT:  BERTELSMANN AG
          Carl-Bertelsmann-Strasse 270
          D-33311 GA,AAtersloh, Germany
          Phone: +49-5241-80-0
          Fax: +49-5241-80-9662
          Homepage: http://www.bertelsmann.de

          Analysts and Investors:
          Verena Volpert
          Corporate Finance/Treasury
          Phone: +49-5241-80 23 42
          E-mail: verena.volpert@bertelsmann.de


COMMERZBANK AG: Defies Expectation, Returns to Black in Q1
----------------------------------------------------------
After an encouraging start to the year, the Commerzbank Group was
in the black again in the first quarter of 2003. At 172m euros,
the operating profit almost reached the level of the same period
a year earlier and was thus well above the result for the final
quarter of 2002. In view of this development, the bank`s board of
managing directors expressed their confidence in the newly
published interim report that they can "put Commerzbank back on a
successful course".

The management board used the better-than-expected figures to
provide in the first quarter for all of the restructuring
expenses of 104m euros that are likely to be incurred in 2003 and
2004. These represent the financial burdens arising from the
second cost-cutting offensive, presented at end-March, which
entails a further 3,100 staff reductions, mainly at head office
and selected units outside Germany.

Having already shouldered the restructuring costs, the bank faces
the months ahead without a further burden. Even taking into
account this extraordinary expense, it achieved a pre-tax profit
of 38m euros, representing a substantial improvement on the loss
of 417m euros in the previous quarter.

Earnings-oriented growth sought

All the major items of the income statement contributed to the
upward trend in the first quarter. The increase in the trading
profit to 231m euros was especially striking. Net interest income
also showed signs of recovery; the fact that it was lower than a
year previously is due to the inclusion in the year-earlier
figure of interest income of 110m euros from the former
subsidiary Rheinhyp and to the sharp reduction of risk-weighted
assets last year.

As the credit programme of an extra billion euros for Mittelstand
firms reveals, Commerzbank intends to achieve an earnings-
oriented growth, especially since its core capital ratio has
improved further to 7.4%. The widening of the average interest
margin in corporate business to 1.32% will also have a positive
impact on interest income; a year earlier, it had been no more
than 1.16%.

Easing on the risk front

More dynamic lending also seems called for since there were
perceptible signs of an easing of tension on the risk front in
the first quarter. 252m euros was allocated to loan loss
provisions; after adjustment for Rheinhyp, this represented 12m
euros more than in the previous year. But the provisioning which
was actually needed was very much lower. The cushion for possible
risks that has thus been created reflects experience that in most
cases provisioning increases in the course of the year. As the
board of managing directors point out in the interim report, they
will examine at mid-year whether the amount budgeted up to now
for provisioning is appropriate. The development in the first
quarter demonstrates once again that Commerzbank has a well-
functioning risk management.

Commerzbank also continues to have its costs well under control.
At 1,179m euros, total operating expenses in the first quarter
were 15.7% lower than a year previously, declining for the fifth
quarter in a row. Consequently, in view of the further staff
reductions that have been resolved and the extensive cuts in
other operating costs, the goal of curbing costs to below the 5bn
euro level this year and to 4.5bn euros in 2004 remains
realistic.

Progress in key business lines

The bank`s segment reporting shows that in the first quarter
Commerzbank made progress not simply overall but also in several
of its major business lines. The operating profit in retail
banking, for instance, rose from 4m euros a year earlier to 33m
euros, its operative return on equity increasing to an estimated
7.2%. The securities area returned to the black after three
negative quarters. While group treasury was able to make strong
progress and asset management more or less maintained its level,
corporate banking and institutions suffered a decline. All in
all, the operative return on equity before the amortization of
goodwill and restructuring expenses improved slightly in a year-
on-year comparison to 6.0%.

CONTACT:  COMMERZBANK AG
          Corporate Communications-Press Relations
          Phone: +49 69 136-22830
          Fax: +49 69 136-22008
          E-mail: pressestelle@commerzbank.com


HVB GROUP: Sale of Vereins- un Westbank Generates Low Offers
----------------------------------------------------------------
HVB Group AG, whose shares have been the worst-performing German
bank stock during the past 12 months, may not sell its 75.1%
stake in Vereins- un Westbank AG (V+W) because of insufficient
offers.

German paper Handelsblatt reported, citing banking sources, that
HVB has received far too low offers for the V+W stake.  The paper
said the Munich-based bank wants to raise EUR0.8-1.0 billion from
the sale.

HVB has not said whether it will sell the unit but mentioned that
there are "no holy cows" in its drive to return to profit.  A
final decision about whether to sell will be taken in the next
few weeks.

TCR-Europe recently reported that German insurer Signal Iduna,
Hamburger Sparkasse (Haspa) and Assicurazioni Generali SpA's
German unit, AMB Generali AG, are interested in acquiring the
stake.

HVB incurred losses due to more than EUR2 billion bad loan
charges.  Its investment portfolio was hit by the slide in global
equity markets, notably in cross-shareholdings in Allianz and
Munich Re, which holds 26% of HVB.

In an effort to turn the business around, HVB chief executive,
Dieter Rampl, is disposing non-core assets.  He is also planning
to launch a partial initial public offering of Bank Austria, and
to sell HVB's international property business.

Press reports have indicated that the process to sell its
Norisbank AG unit has begun, with interested parties invited to
submit offers by the end of the week.

According to Handelsblatt, investment bankers have estimated the
Norisbank sale could generate EUR300-500 million.


MOBILCOM AG: KPN Denies Report It Agreed to Acquire UMTS Network
----------------------------------------------------------------
Royal KPN NV spokesman Marinus Potman confirmed its German unit
E-Plus has made a bid for MobilCom AG's UMTS network, but denied
reports it has agreed to acquire the operations for EUR20
million.

Financial Times Deutschland earlier cited sources close to the
negotiations saying MobilCom AG has finalized a contract with E-
Plus.  Major shareholder France Telecom has allegedly agreed to
the contract and MobilCom's supervisory board are due to decide
on the sale Tuesday afternoon.

The transaction involves France Telecom earning 90% of the agreed
price, and MobilCom getting the remaining 10%.

Financial Times Deutschland in another report, however, said the
insolvency administrator of MobilCom AG's founder and former
chairman Gerhard Schmid may yet block the sale.

According to the paper's sources, the deal to sell the network
must be signed within around 14 days or the network will have to
be dismantled, which may cost the company money.


MUNICH RE: Online Platform for Reinsurance to Be Sold or Closed
---------------------------------------------------------------
The online platform for reinsurance of Munich Re and Swill Re,
Inreon, will be sold or closed, as the world's two biggest
reinsurers move to focus in their core businesses.

Munich Re and Swiss Re founded the online marketplace for
reinsurance in late 2000 when reinsurers' margins were under
pressure because of low premiums and excess capital. It was the
first platform to have the "built-in support" of the sector's two
largest companies, with an aim of selling some of the industry's
more commoditized products at a cheaper price.  The scheme cut
transaction fees by as much as 25%.

But falling equity markets, which destroyed billions of dollars
of capital, and the terrorist attack in the US recently made
reinsurance premiums expensive.

The Financial Times says Inreon's owners have been negotiating in
recent days to sell the business to ri3k, an electronic
reinsurance hub.  Talks, however, failed to come up with a
suitable agreement for the parties.  Insurers have so far been
hesitant to take the business, the report noted.

Inreon had a capitalization of some US$37.5 million.  Munich Re,
Swiss Re, and Internet Capital each hold a 25% stake in the
platform.  Andersen Consulting controls 5%, and Inreon management
and participating insurers keeps the remaining 20%.

Inreon has offices in New Jersey, Zurich and Hong Kong, and
employs a total of about 30 staff.  It reported more than 1,500
submissions to reinsurers in the fourth quarter of last year and
through to the first weeks of January.  The transaction
represents a premium value in excess of $320m.


THYSSENKRUPP AG: Fulfills Government's Code Recommendations
-----------------------------------------------------------
On April 30, 2003, the Executive Board and Supervisory Board of
Thyssen Krupp AG issued a new Declaration of Conformity with the
recommendations of the Government Commission on the German
Corporate Governance Code in accordance with Art. 161 of the
Stock Corporation Act (AktG). The declaration stated that
ThyssenKrupp AG now fulfills all the Government Commission's
recommendations.

In addition to the recommendations, the Code contains a number of
suggestions for responsible corporate governance. Compliance with
these suggestions is not subject to statutory disclosure.
ThyssenKrupp complies with all but one of these suggestions:
There are currently no plans to stagger the election dates or
periods of office of Supervisory Board members.

CONTACT:  THYSSENKRUPP AG
          Dr. Jurgen Claassen
          Corporate Communications and Central Bureau
          Phone: +49 211 824-36002
          Fax: +49 211 824-36005
          E-mail: presse@tk.thyssenkrupp.com
          Home Page: http://www.thyssenkrupp.com


=============
H U N G A R Y
=============


MALEV AIRLINES: Appointed Lasklo Sandor President and CEO at EGM
----------------------------------------------------------------
The Extraordinary General Meeting held by Malev Hungarian
Airlines Rt last Monday saw the appointment of Laszlo Sandor as
both president and Chief Executive Officer of the troubled
airline company.

CEO of the State Privatization and Holding Rt Miklos Kamaras
confirmed to the press that Sandor was elected to the board and
was subsequently appointed president and CEO.  Kamaras noted that
Sandor's appointment to two positions was not merely a personnel
change but also involved restructuring.

Cash-strapped Malev has struggled to stay afloat since it posted
losses of EUR36.2 million in 2000.  It has been searching for a
partner when its owner, the State Privatization and Holding Rt
(APV), failed to sell a 50% stake in the company to a strategic
investor through a tender in January.

It expects to have losses of about USD8.5 million in 2002, but
hopes to break even in 2003.

After a failed privatization attempt in 2001, the privatization
of the airline is deemed unrealistic within the next 2-3 years.

However, Kamaras gave assurance that the government has plans to
secure the conditions for the company's long-term operations and
to preserve Mal‚v as a national airline.  He added that the
government is committed to Mal‚v's privatization.

CONTACT:  MALEV HUNGARIAN AIRLINES
          Dsseldorfer Stra e 19-23
          60329 Frankfurt am Main
          Phone: +49-(0) 69-23 85 80-0
          Fax: +49-(0) 69-23 85 80-10


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


HELIX CAPITAL: Moody's Downgrades Several Classes of Notes
----------------------------------------------------------
Moody's Investors Service said it downgraded the notes issued by
Helix Capital (Netherlands) B.V. following the completion of the
settlement mechanism on a credit event, the occurrence of a new
credit event as well as the deterioration of the credit quality
of the notes' underlying portfolio.

The notes downgraded are:

EUR 75,000,000 Variable Redemption Limited Recourse Notes due
October 11, 2006 (Series 2001-5) from Caa2 to Caa3;

USD 75,000,000.00 Variable Redemption Limited Recourse Notes due
October 11, 2006 from Caa3 to Ca (Series 2001-6);

EUR 25,000,000 Variable Redemption Limited Recourse Notes due
January 27, 2007 from Caa1 to Caa2 (Series 2001-9);

EUR 40,000,000.00 Variable Redemption Limited Recourse Notes due
August 31,  2007 (Series 2002-12A) from Aa3 to A3 ;

EUR 44,000,000.00 Variable Redemption Limited Recourse Notes due
August  31, 2007 (Series 2002-12B) from Baa3 to Ba2 ;

EUR 44,000,000.00 Variable Redemption Limited Recourse Notes due
August 31, 2007 (Series 2002-12C) from Caa1 to Caa3;

EUR 25,000,000.00 Variable Redemption Limited Recourse Notes due
August 31, 2007 (Series 2002-15) from A3 to Baa1;

EUR 25,000,000.00 Variable Redemption Limited Recourse Notes due
August 31, 2007 (Series 2002-16) from Aa3 to A2; and

USD 40,000,000.00 Variable Redemption Limited Recourse Notes due
August 31, 2007 (Series 2002-2) from Aaa to Aa1.

Moody's says the ratings does not include the reference entities
rated below Caa1 which are considered as defaulted and for which
a recovery value assumption is made in line with the recent
market quotations.


KONINKLIJKE AHOLD: Extends Funding Cover for U.S. Foodservice
-------------------------------------------------------------
Royal Ahold NV was able to extend for 60 days a US$450 million
securitization program for its U.S. Foodservice unit.

The company will use US$250 million of the facility to further
support the U.S. Foodservice securitization programs, and
amortize the remaining US$200 million over the 60-day period.
The latter will be financed by the US$450 million back-up
commitment.

Ahold also has a pending EUR3.1-billion credit facility, with a
US$915 million tranche available.  The retailer needs to submit
an audited 2002 financial statements for Albert Heijn and Stop &
Shop by May 31 to satisfy conditions of the tranche.

The company's accountants, Deloitte & Touche, have resumed the
audits of the books, the company says.

Ahold needs to furnish an audited fiscal year 2002 consolidated
financial statements by June 30 for the tranche to remain
available.


KONINKLIJKE AHOLD: Argentine Unit Pays Debt to Chilean Retailer
---------------------------------------------------------------
The Argentine supermarket unit of Royal Ahold NV was finally able
to settle its debt with Chilean retailer D&S SA, according to a
Disco spokesman.

Disco S.A. made a ARS128.7-million payment for the 10 stores it
acquired from D&S in 2000 after for some time disagreeing over
what currency to use for the transaction.  The debt was
originally valued at US$90 million.

The conflict emerged after Argentina devalued its currency, the
peso, which had been valued one-to-one with the dollar, to almost
75% against the dollar in 2001.

The crisis prompted the government to issue emergency measures to
contain the fallout from the crisis, including the conversion of
dollar-denominated contracts into devalued pesos.  But Disco
wanted to pay in pesos, and not in dollars, as what D&S argued.

"Disco has effected the payment in pesos and cleared its debt,"
the Disco spokesman said.

He said the payment was made a rate of ARS1.43 to the original
dollar value of the debt, based on the terms of Decree 240/2002,
under which non-bank contracts were "pesified" at a one-to-one
rate but were subject to an interest rate adjustment indexed to
an inflation-based coefficient, known as CER, according to Dow
Jones.

Ahold's North American operations ran into trouble this year
after the discovery discrepancies on its accounts.  The retailer
fell into trouble deeper when it was discovered that Disco is
also involved in some irregularities.

The discovery led to the shakeup in Disco's top management.
Ahold is currently seeking for a buyer for its South American
operations.


KONINKLIJKE AHOLD: Cencosud CEO Hopes to Grab Deal at Month's End
-----------------------------------------------------------------
Cencosud Chief Executive Laurence Golborne said the Chilean
retail holding might close its $150 million takeover of Dutch
peer Royal Ahold NV's Santa Isabel SA's local supermarket
operations by the end of the month, according to daily El
Mercurio.

The transaction, revealed in February, was delayed from an
initial closing date of the end of April due to an additional
audit launched to ensure it complied with proper reporting
procedures.

The review follows the discovery of large-scale accounting
irregularities at Ahold's North American operations, and its
Argentine unit Disco SA, which previously controlled Santa
Isabel.  Disco ceded control of the latter to the Ahold when the
Dutch parent took over some 99.7% of the shares in a buyout that
included a public offer.

According to Mr. Golborne, the remaining shares will be taken off
the market, but it's unclear whether Cencosud will launch a bid,
or whether Ahold will do this.  Ahold made a bid of 190 Chilean
pesos per share ($1=CLP700.15) last August.


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


BRE BANK: Measure Adopted in Mid-2002 Ushers Return to Black
------------------------------------------------------------
The results of BRE Bank in Q1 2003 are best proof that the
measures adopted in mid-2002 in order to put BRE Bank back on the
profitability track were most adequate. In Q1 2003, the BRE Bank
Group generated a net profit of PLN 33,841 thousand. Its total
assets grew to PLN 28,880,658 thousand. The results of BRE Bank
were similar: its net profit was PLN 31,842 thousand and its
total assets grew to PLN 25,431,988 thousand.

Selected financial data, Q1 2003, Q1 2002, and Q4 2002 [PLN'000]


              BANK                       GROUP
            Q1 2003           Q1 2003    Q4 2002     Q1 2002
          (1 Jan 2003     (1 Jan 2003   (1 Oct 2002   (1 Jan 2002
            - 31 Mar       - 31 Mar      - 31 Dec       - 31 Mar
              2003)           2003)       2002)          2002)

I. Net interest income
             235,311         293,923       358,425     448,986

II. Net commission income
              59,311          78,474        79,007      79,092

III. Result on banking operations
             132,382         170,954       116,019     236,531

IV. Result on financial transactions
               1,403           6,219      (121,919)    (37,968)

V. Operating profit
              51,706          53,112      (452,751)     12,415

VI. Gross profit (loss) before taxation
              51,719          46,310      (463,260)      4,080

VII. Net profit (loss)
              31,842          33,841      (308,878)     (6,445)

VIII. Total assets
          25,431,988      28,880,658     27,431,461   27,193,236

IX. Equity, incl. subordinated loan
           2,334,990       2,332,536      2,337,286    2,951,969

X. Book value per share [PLN]
               70.46           70.35          68.84        96.99

XI. Solvency ratio [%]
                9.77            9.77          10.01        14.39

The results of BRE Bank in Q1 were generated in the context of
continuing harsh economic conditions which caused negative trends
in the banking sector, in particular falling deposits and a lower
than expected demand for loans. Nonetheless, the consolidated
result on banking operations was clearly stronger than in Q4
2002; the operating profit of the Bank and the Group, negative in
Q4 due to high provisions, was much higher than in Q1 2002. This
opens prospects of upward trends in the profitability of BRE
Bank's core business, though the Bank and its clients are still
affected by the difficult macroeconomic conditions.

The result of BRE Bank on financial transactions is particularly
noteworthy. According to plans, in the context of continuing
negative trends, BRE Bank has recently strongly reduced the risk
profile of such transactions. This ensured additional profits in
this business (compared to a loss incurred in 2002), although
capital gains from such planned disposals as that of Elektrim
(most of the shares to be sold in Q2), Polcard or Telbank did not
yet materialise in Q1.

In proprietary investment, 2 transactions were particularly
important in Q1 as they helped to significantly reduce the Bank's
risk and exposure in the capital market. First, the Bank executed
agreements to sell the shares of Elektrim SA at a profit of over
PLN 20 million; the Bank also released provisions for loans
secured with Elektrim shares. Second, the Bank signed a letter of
intent concerning refinancing of the debt of ITI. These measures
planned for mid-2003 will reduce the investment in debt
securities of ITI Holdings and give the Bank a stake in the
equity of the promising company TVN.

In Q1 2003, BRE Bank remained the unrivalled leader in money
market operations: it came first in an NBP ranking of banks
active as money market dealers. According to Fitch Polska, the
Bank was the second largest issuer of mid-term debt and moved up
to the second position in terms of issued short-term debt.

In order to relieve the difficult conditions of business of its
corporate clients, especially small and medium-sized enterprises,
in Q1 2003 BRE Bank launched an intensive promotion campaign of a
new SME product package marketed in mid-January 2003. BRE Bank's
EFFECT and EFFECT Plus Packages facilitate SMEs' access to
banking services, including attractive products like overdraft
facilities up to PLN 200 thousand (under simplified lending
procedures); lower thresholds for individually negotiated fx
rates; lower thresholds for automated one-day deposits; and
others. In Q1 2003, BRE Bank was an active partner and lender for
corporate clients. The BRE Bank Group's lending grew 9% (compared
to Q4 2002) while the Bank's loans to clients and the public
sector grew less fast (only 0.5%), mainly due to the repayment of
several large loans and reduced exposure. The share of irregular
loans in the Bank's portfolio was 20.3% under the methodology of
NBP, close to the Q4 figure of 19.9%.

Despite difficult macroeconomic conditions and negative trends in
the banking sector, the results of the retail business of BRE
Bank were a great success.

mBank reported a 15% growth in deposits, the number of accounts
and clients in Q1 2003 compared to 31 December 2002. It now has
over PLN 2.14 billion in over 480 thousand accounts of more than
400 thousand clients. The Investment Fund Supermarket concept is
very popular with mBank clients who have invested ca. PLN 50
million.

MultiBank is also growing fast and now has 28 outlets throughout
Poland. It has over 74 clients who have filed over 3 thousand
credit applications for over PLN 0.5 billion of loans in the
innovative Financial Plan service (loans of over PLN 310 million
have already been granted).

The subsidiaries of the BRE Bank Group also grew successfully in
Q1 2003. Rheinhyp-BRE Bank Hipoteczny reinforced its position as
the unquestionable leader in Polish mortgage banking thanks to a
successful first public issue of mortgage bonds worth PLN 200
million. The demand for the bonds in subscription (PLN 340
million) was 70% greater than the actual size of the issue. BRE
Leasing is still the strong second largest leasing company in
Poland. The company's share in the market of passenger cars grows
dynamically: this new business accounts for 20% of all leased
movable assets in the portfolio. The factors of the Intermarket
Bank Group also grow: they all recorded profits (totalling PLN 4
million) in Q1 2003 while Intermarket Bank, the unparalleled
leader in the factoring market in Central and Eastern Europe,
earned a net income of ca. PLN 12 million. Polfactor SA also
reported good results in Q1 2003: its total turnover was up 25%
compared to Q1 2002, including a growth of 250% in export
factoring.

The Skarbiec Asset Management Holding (SAMH) also prospered: its
assets under management grew to nearly PLN 4 billion in Q1 2003
(up PLN 700 million compared to 31 December 2002). Skarbiec TFI,
part of SAMH, closed Q1 2003 as the fourth largest investment
fund manager with a market share of over 7% and in February 2003
was awarded the prestigious Bull and Bear prize as the Best
Investment Fund Manager. The assets of  the pension fund company
PTE Skarbiec Emerytura were PLN 1,304.5 million, a strong fifth
position in the market.

In the context of the financial results of Q1 2003, the projected
ROE of over 5% at the end of 2003 seems very realistic and will
be a step forward to achieve an ROE of 15% in 2005 pursuant to
the long-term strategy. The Bank entered 2003 with books fully
cleaned up and with high provisions and thus won't need to set up
large additional provisions as it is hedged against risks that
may arise in 2003. Due to the repayment of the loans secured with
Elektrim shares, net provisions were (PLN 34,644 thousand) in Q1
2003 (i.e., more provisions were released than created). Other
positive aspects of the Bank's business in Q1 2003 include the
decrease in its overhead costs by 19.4% compared to Q1 2002 (the
Group's overhead costs fell 13%); however, due to the development
of retail banking, the costs are not expected to go down
dramatically in 2003. The first effects of measures taken to
mitigate the risks of equity investment are also apparent; this
should drive stable growth in the coming quarters, especially in
the context of expected gains from the disposal of Elektrim,
Polcard and Telbank. In addition, and just as importantly, 2003
will be a vital year in terms of growth expectations and
opportunities due to Poland's forthcoming accession to the
European Union. Fully aware of this momentous process, BRE Bank
was the first Polish institution to become actively involved in
the promotion of Poland's membership of the EU as it joined the
recently established Citizens Initiative for a YES Vote in the
Referendum. As of 1 April 2003, the BRE Bank internet portal
www.brebank.com.pl and the websites www.mBank.com.pl,
www.multibank.pl, as well as the web sites of many subsidiaries
of the Group feature banners advocating for the European Union
and encouraging Poles to vote in the referendum. The Bank's
official participation in the Initiative is based on a deep
belief in the idea of a united Europe; BRE Bank also supports EU
assistance programmes, which will be available to Poland after
the accession and may help many Polish companies, including the
Bank, to grow.

CONTACT:  Malgorzata Ciesielska-Stefanczyk
          Deputy Spokesperson, BRE Bank
          Phone: (022) 829-02-98
          Fax: (022) 829-02-97
          E-mail: rzecznik.prasowy@brebank.com.pl


NETIA HOLDINGS: Reports Net Loss of PLN80 MM for First Quarter
--------------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced unaudited
consolidated financial results for the first quarter 2003.

Financial Highlights:

    --  Revenues for Q1 2003 were PLN 161.3m (US$39.8m), a year-
on-year increase of 9%.

    --  EBITDA for Q1 2003 was PLN 43.6m (US$10.8m), representing
an EBITDA margin of 27% and a year-on-year increase of 45%.

    --  Net loss was PLN 80.3m (US$19.8m), a year-on-year
decrease of 67% achieved due to improved operating results and
lower financial expense following the financial restructuring.
The main item affecting the net loss was PLN 41.2m (US$10.2m) of
non-cash one-time write-off of 2002 Notes issuance costs,
following their earlier redemption.

    --  Following the earlier redemption of Netia's 2002 Notes on
March 24, 2003, Netia has only PLN 5.3m or US$1.3m (at present
value of future payments) of long-term outstanding restructuring
liabilities, payable between 2007 and 2012.

    --  Cash at March 31, 2003 was PLN 172.4m (US$42.6m),
including restricted cash and cash equivalents of PLN 61.5m
(US$15.2m).

    Operational Highlights:

    --  Subscriber lines (net of churn and disconnections)
increased to 345,447 at March 31, 2003 from 341,160 at December
31, 2002, a year-on-year increase of 1%.

    --  Business customer lines increased to 108,603, a year-on-
year increase of 8%. Subscriber lines for our business segment
amounted to 31% of total subscriber lines while revenues from
business customers accounted for 57% of telecom revenues in Q1
2003.

    --  Sales of telecommunications products other that
traditional direct voice (such as indirect voice, data
transmission, interconnection, wholesale and other telecom
services) increased their share in total revenues from telecom
services to 23% or PLN 35.9m (US$9.0m) from 10% in Q1 2002.

    --  Average revenue per line decreased by 4% to PLN 119
(US$29) in Q1 2003, compared to PLN 124 in Q1 2002 as a result of
a decrease in tariffs, which to some extent was offset by the
favorable product mix shift within telecom revenues mentioned
above.

    --  New, more competitive tariff plans for international
        long-distance and domestic long-distance calls were
introduced on January 2, 2003 and April 1, 2003, respectively.

    --  Headcount decreased to 1,283 at March 31, 2003 from 1,362
at March 31, 2002 as a result of efficiency measures.

    --  Netia acquired TDC Internet Polska S.A., a Polish
Internet service provider, in April 2003.

Wojciech Madalski, Netia's President and Chief Executive Officer,
commented: "Successful sales and marketing efforts on top of our
now healthy financing structure combined to produce a
considerable improvement in first quarter results. We have
reduced churn rates, successfully reversing the negative trend in
the number of subscriber lines. EBITDA increased 45% year-on-
year, while net loss decreased by 67%. Netia is on course for
solid financial performance and now has a strong base from which
to pursue the ambitious objectives of our strategic plan
currently being developed.

"We are pleased with the strong customer take-up of products
other than traditional direct voice. A growing portion of Netia's
revenues is coming from advanced telecommunications solutions to
business customers including data transmission, Internet and
wholesale services. The acquisition of TDC Internet Polska S.A.
will reinforce our strategic focus on offering sophisticated
products to increasingly demanding business customers."

Zbigniew Lapinski, Chief Financial Officer of Netia, added:
"Revenue from telecom services grew 11% in the quarter compared
to the first quarter 2002. Lower tariffs produced a decline in
ARPU, but this was offset by 8% growth in business customer lines
and increased sales of other than traditional direct voice
telecommunications products. EBITDA margin reached a healthy 27%
thanks to cost controls, while net loss decreased to PLN 80
million from PLN 245 million in the first quarter 2002 due to
lower financial expense following the successful restructuring.

"Distribution of warrants due in second half of May 2003 will
complete the process of Netia's financial restructuring.
Following the redemption of EUR 49.9 million of notes, Netia is
free of interest-bearing long-term debt. I am also pleased to
confirm that the Netia Group is well advanced in the process of
its internal consolidation. We expect the process of merging most
of the operating subsidiaries into the parent company to conclude
early next year.

"Lastly, this quarter we have introduced a more detailed
financial reporting format. This will provide investors with
greater transparency and make Netia's performance easier to
analyze."

    Restructuring and Other Highlights:

    --  Principal guiding directives for finalization of Netia's
five-year strategic plan were adopted by Netia's Supervisory
Board on April 10, 2003. Netia intends to present the outlines of
the strategic plan in late May, following its approval by the
Supervisory Board.

    --  The Restructuring Agreement relating to Netia's debt
restructuring, entered into by Netia, TeliaSonera AB, certain
companies controlled by Warburg Pincus & Co., certain financial
creditors and the ad hoc committee of noteholders on March 5,
2002 (the "Restructuring Agreement"), continues to be
implemented. Pursuant to the Restructuring Agreement, the
following milestones have been achieved:

        --  All necessary share, warrant and notes issuances in
Netia's restructuring have been approved by its shareholders. On
December 2, 2002, Netia published its Polish prospectus relating
to the issuance and registration of new shares (series H, J and K
shares) and notes pursuant to the Restructuring Agreement.

        --  312,626,040 series H shares at the price of PLN
1.0826241 per share were allocated to those creditors who opted
to subscribe for them in accordance with the agreed terms of
Netia's restructuring on December 23, 2002. The series H shares
represent approximately 91% of Netia's share capital. Following
the registration of the capital increase on January 30, 2003,
Netia has share capital of PLN 344,045,212 (344,045,212 shares
issued and outstanding at PLN 1 par value per share). Series H
shares commenced trading on the Warsaw Stock Exchange (separately
from Netia's other series of shares and under the ticker "NET2")
on February 13, 2003.

        --  EUR 49.9m in aggregate principal amount of 10% Senior
Secured Notes due 2008 (the "2002 Notes") were issued in exchange
for the outstanding notes of Netia Holdings B.V. and Netia
Holdings II B.V. and obligations from swap transactions entered
into by Netia Holdings III B.V. on December 23, 2002, in
accordance with the agreed terms of the restructuring and the
composition plans for each of Netia's Dutch subsidiaries. On
March 24, 2003, Netia redeemed the 2002 Notes. Because of this
redemption, Netia is free of interest-bearing long-term debt.

        --  Distribution of warrants. Strike price for warrants
to acquire shares representing 15% of Netia's post-restructuring
share capital (series J shares), established based on the
mechanism agreed within the Restructuring Agreement, was approved
by Netia's Supervisory Board at PLN 2.53. The warrants will be
distributed to the holders of record of Netia's shares as of
December 22, 2002. Polish Securities and Exchange Commission
approved on April 22, 2003 amendments to Netia's Polish
prospectus restricting the warrants with respect to the U.S.
persons. On April 29, 2003 Netia issued notes in order to
facilitate distribution of warrants to be completed in the second
half of May 2003.

        --  Options to acquire series K shares representing 3.09%
of Netia's share capital were allocated by Netia's Supervisory
Board under a key employee stock option plan on April 10, 2003.
In accordance with the Restructuring Agreement, up to 5% of the
post-restructuring share capital, excluding shares to be issued
upon exercise of the warrants related to series J shares, will be
issued under this stock option plan. The exercise price for
granted options was set at PLN 2.53.

The issuance of warrants for series J and issuance of series K
shares will complete the restructuring process.

    --  Changes within Netia's Supervisory Board. Effective
February 20, 2003 Netia's Supervisory Board is composed of the
following 7 members: Nicholas N. Cournoyer (Chairman of the
Supervisory Board), Jaroslaw Bauc, Morgan Ekberg, Richard James
Moon, Andrzej Radziminski, Ewa Maria Robertson and
Andrzej Michal Wiercinski.

    --  Changes within Netia's Management Board. Effective April
10, 2003 Netia's Management Board is composed of the following
four members: Wojciech Madalski (President and CEO), Elizabeth
McElroy (Chief Commercial Officer), Zbigniew Lapinski (Chief
Financial Officer) and Mariusz Piwowarczyk (Chief Technology
Officer).

    --  Payments pursuant to resignation of Management Board
members.  Compensation and other costs (including consulting
agreements) associated with members of Netia' various management
boards during Q1 2003 amounted to PLN 7.6m (US$1.9m). This
compensation includes termination benefits paid to members of the
Management Board pursuant to their resignation.

    --  Netia's subsidiary was reimbursed VAT paid in prior years
of PLN 4.5 m (US$1.1m) pursuant to a decision of Tax Office dated
April 17, 2003.

    --  License fee payments related to Netia's domestic long-
distance license, amounting approximately to PLN 9.2m (US$2.3m),
were made on April 18, 2003.

    --  Outstanding license fee obligations related to Netia's
local licenses (in nominal terms) amounted to approximately PLN
402.6m (US$99.4m) at March 31, 2003. Following the changes
introduced into the Polish telecommunications law in December
2002, Netia has filed for canceling all outstanding local license
fees based on capital expenditures it has already incurred. The
Minister of Infrastructure's decision on this issue is expected
by end-June 2003.

    --  U.S. Bankruptcy Court gave full force and effect in the
United States to Netia's arrangement and composition plans
ratified earlier by Polish and Dutch courts, respectively, in an
order dated March 7, 2003. The court also ordered the turnover to
Netia of US$15.2m that Netia set aside to fund certain interest
payments under its 13.75% Senior Notes due 2010, following the
completion of the final step of Netia's restructuring, which
requires the issuance of warrants to pre-restructuring
shareholders.

    --  Netia's series H shares (NET2) were included into the
WIG20 Index, following the annual review of the indices performed
on March 21, 2003 by the Warsaw Stock Exchange. The WIG20 Index
comprises shares of twenty of the largest companies listed on the
primary market of the Warsaw Stock Exchange. Companies are
selected based on their market capitalization and market
turnover.

Consolidated Financial Information

Please note that due to the changes in presentation format
introduced as of January 1, 2003 and related reclassification of
interconnection charges and revenues as well as part of voice
termination charges and revenues (previously shown net), the
revenues and operating costs figures for periods ended through
December 31, 2002 were adjusted accordingly to reflect these
changes and therefore vary from the figures reported previously.
In addition, ARPUs presented in this release are given for a
relevant three-month period as opposed to figures for a last
month in a period reported previously. Please also see our
condensed consolidated financial statements for the three-month
period ended 31 March, 2003.

Q1 2003 vs. Q1 2002

Revenues increased by 9% to PLN 161.3m (US$39.8m) for Q1 2003
compared to PLN 148.3m for Q1 2002.

Revenues from telecommunications services increased by 11% to PLN
158.8m (US$39.2m) from PLN 142.5m in Q1 2002. The increase was
primarily attributable to an increase in the number of business
lines and an increase in business mix of lines as well as
expansion of other than traditional direct voice products, such
as indirect voice, data transmission, interconnection, wholesale
and other telecom services. The share of revenues from these
products increased to 23% of total revenues from
telecommunications services in Q1 2003 as compared to 10% in Q1
2002. In particular, revenues from wholesale services increased
between these periods by 261% to PLN 11.2m (US$2.8m) in Q1 2003
from PLN 3.1m in Q1 2002 while revenues from indirect voice
services increased by 179% to PLN 13.4m (US$3.3m) in Q1 2003 from
PLN 4.8m in Q1 2002.

EBITDA increased by 45% to PLN 43.6m (US$ 10.8m) for Q1 2003 from
PLN 30.1m for Q1 2002. EBITDA margin increased to 27.0% from
20.3%. This increase was achieved due to increases in revenues
from higher margin products as well as a continuous effort to
optimize the level of operating costs.

Interconnection charges were PLN 31.0m (US$7.7m) for Q1 2003 as
compared to PLN 31.1m for Q1 2002. Interconnection charges
remained at a stable level in spite of an increase in the traffic
and related interconnection charges from provision of indirect
voice services driven by an increased proportion of traffic
carried through Netia's backbone network and lower
interconnection rates on fixed-to-mobile and international long-
distance calls.

Other operating expenses decreased by 1% to PLN 86.7m (US$21.4m)
for Q1 2003, from PLN 87.1m for Q1 2002. Other operating expenses
represented 54% of total revenues for Q1 2003, compared to 59%
for Q1 2002, and are constituted primarily of salaries and
benefits as well as legal and financial services.

Depreciation of fixed assets remained at a stable level amounting
to PLN 48.9m (US$12.1m) compared to PLN 48.8m for Q1 2002, as the
construction stage of additional parts of the network was
completed.

Amortization of intangible assets increased by 11% to PLN 20.2m
(US$5.0m) from PLN 18.3m for Q1 2002 due to an increased level of
amortization costs associated with our information technology
systems.

Net financial expenses decreased to PLN 54.5m (US$13.5m) for Q1
2003 from PLN 207.7m in Q1 2002, due primarily to the successful
financial restructuring and debt-for-equity swap which resulted
in, among other things, the elimination of obligations under
notes issued by Netia in the past. In addition, the net financial
expenses for Q1 2003 included the one-time write-off in the
amount to PLN 41.2m (US$10.2m) related to unamortized part of the
2002 Notes issuance costs, following their earlier redemption.

Net loss decreased by 67% to PLN 80.3m (US$19.8m), compared to a
net loss of PLN 245.4m for Q1 2002. The decrease in net loss
between these periods was mainly attributable to an improvement
in operating results and decrease in the net financial expenses
mentioned above.

Net cash used for the purchase of fixed assets and computer
software decreased by 60% to PLN 37.3m (US$9.2m) in Q1 2003 from
PLN 92.1m in Q1 2002, in accordance with the revised business
plan approved in late 2001, aimed at preserving cash. At the same
time, PLN 199.3m (US$49.2m) deposited in Q4 2002 in a restricted
account as temporary security for obligations arising under the
2002 Notes was released. As a result, cash provided by investing
activities amounted to PLN 162.0m (US$40.0m) in Q1 2003 as
compared to cash usage of PLN 92.1m in Q1 2002.

Cash and cash equivalents at March 31, 2003 amounting to PLN
110.9m (US$27.4m) were available to fund Netia's operations.
Netia also had a deposit in a restricted account of PLN 61.5m
(US$15.2m) as of March 31, 2003, which will be released to Netia
upon issuance of the warrants contemplated in the Restructuring
Agreement.

Q1 2003 vs. Q4 2002

Revenues increased by 3% to PLN 161.3m (US$39.8m) for Q1 2003
compared to PLN 156.9m for Q4 2002. This increase was
attributable mainly to a 21% increase in revenues from
telecommunications products other than traditional direct voice
to PLN 36.3m (US$9.0m) in Q1 2003 from PLN 30.0m in Q4 2002
partially offset by a 1% decrease in direct voice revenues to PLN
122.5m (US$30.2m) for Q1 2003 from PLN 124.2m in Q4.

EBITDA / Adjusted EBITDA increased by 28% to PLN 43.6 (US$10.8m)
for Q1 2003 from PLN 34.2m in Q4 2002. EBITDA margin increased to
27.0% for Q1 2003 from adjusted EBITDA margin of 21.8% for Q4
2002. The increase in EBITDA and growth of margin mentioned above
was mainly associated with a decrease in salaries and benefits
and lower costs of rented lines and network maintenance.

Net loss amounted to PLN 80.3m (US$19.8m) in Q1 2003, compared to
a net profit of PLN 148.6m in Q4 2002. The change was mainly due
to net financial income recorded in Q4 2002 that was associated
with the reversal of interest expenses of PLN 177.4m following
successful financial restructuring and ratification of Netia's
Dutch composition plans. In addition, the net financial expenses
for Q1 2003 included the one-time write-off in the amount to PLN
41.2m (US$10.2m) related to unamortized part of the 2002 Notes
issuance costs, following their earlier redemption.

Operational Review

Connected lines at March 31, 2003 amounted to 501,512. This
number is net of: (i) a decrease in equivalent of lines by
approximately 4,000 connected lines arising from the
reconfiguration of the radio-access system recorded in Q4 2002
(ii) provision for impairment of 27,350 connected lines recorded
in Q3 2002, and (iii) the write-off of 70,200 connected lines in
Q3 2001.

Subscriber lines in service increased by 1% to 345,447 at March
31, 2003 from 342,288 at March 31, 2002 and by 1% from 341,160 at
December 31, 2002. The number of subscriber lines is net of
customer voluntary churn and disconnections by Netia of
defaulting payers, which amounted to 8,196 and 1,683,
respectively, for Q1 2003. The total churn of 9,879 subscriber
lines recorded in Q1 2003, mostly due to the deterioration of
Polish economic conditions, which continue to affect our
customers, and customers moving outside the coverage of Netia's
network, was down from 12,985 subscriber lines in Q4 2002 and
from 14,444 subscriber lines in Q1 2002.

Business lines as a percentage of total subscriber lines reached
31.4%, up from 29.4% at March 31, 2002 and 31.0% at December 31,
2002, reflecting the intensified focus on the corporate and SME
market segments. Business customers accounted for 69% of net
additions in the quarter. Revenues from business customers
accounted for 57% of telecommunications revenues for Q1 2003.

Business customer lines in service increased by 8% to 108,603 at
March 31, 2002 from 100,563 at March 31, 2002 and by 3% from
105,638 at December 31, 2002.

Average monthly revenue per business line amounted to PLN 215
(US$53) for Q1 2003, representing a 12% decrease from PLN 243 for
Q1 2002 and a 3% decrease from PLN 222 for Q4 2002.

Average monthly revenue per residential line amounted to PLN 73
(US$18) for Q1 2003, representing a 3% decrease from PLN 75 for
Q1 2002 and a 3% decrease from PLN 75 for Q4 2002.

Average monthly revenue per line amounted to PLN 119 (US$29) for
Q1 2003, representing a 4% decrease from PLN 124 in Q1 2002 and a
2% decrease from PLN 121 in Q4 2002. Decreasing ARPUs for both
residential and business lines reflect continued overall telecom
tariff reduction trends.

TDC Internet Polska S.A. ("TDC IP"), a Polish Internet service
provider, was the subject of an agreed-upon acquisition by Netia
from TDC Internet A/S in April 2003. TDC IP's service offering
includes fixed-access Internet, hosting and IP VPN services. With
this acquisition Netia expects to complement its current product
portfolio and expand the business customer base.

Premium rate services (0-708) were introduced by Netia on April
1, 2003, adding to the portfolio of intelligent network services
(free-phone and split-charge) offered since February 2002.

The integrated customer relationship management ("CRM") system
was fully implemented in April 2003, being the first solution of
any Polish telecommunications operator that fully integrates
contact and account management with operations support and
billing. This new initiative has been designed to increase Netia
customers' satisfaction while further reducing operating costs.

Product portfolio of Netia's indirect services offered through
Netia's prefix (1055) was extended to international long-distance
calls carried on standard links in January 2003 and currently
includes domestic long distance, fixed-to-mobile and
international long-distance services.

Headcount at March 31, 2003 was 1,283, compared to 1,362 at March
31, 2002 and 1,289 at December 31, 2002.

The number of active lines in service per employee increased by
10% to an average of 275 in Q1 2003, from 249 in Q1 2002.

Monthly average telecommunications revenue per employee increased
by 23% to PLN 42,298 (US$10,441) in Q1 2003 from PLN 34,357 in Q1
2002.

Outstanding license fee obligations related to Netia's local
licenses amounted to approximately PLN 402.6m (US$99.4m) (in
nominal terms) at March 31, 2003. In December 2002, changes were
introduced into the Polish telecommunications law that provided
for cancellation of license fee obligations in exchange for
investments in the telecommunications infrastructure or their
conversion for the shares or debt of companies with outstanding
license fees. Netia has filed for cancellation of all outstanding
local license fees based on capital expenditures it has already
incurred. The Minister of Infrastructure's decision on this issue
is expected by the end of June 2003. Netia is awaiting ultimate
and formal resolution of the application by the authorities
before determining appropriate accounting for license fee
obligations. Furthermore, in connection with an on-going internal
consolidation of the Netia Group by merging most of operating
subsidiaries into the parent company, Netia plans to write-off
its telecommunication licenses.

----------------------------------------------------------------
Key Figures
----------------------------------------------------------------

----------------------------------------------------------------
PLN'000       1Q03       4Q02       3Q02       2Q02       1Q02
----------------------------------------------------------------
Revenues (b) 161,304    156,822    154,829    153,081    148,260
y-o-y %
change         8.8%       6.9%      11.8%      12.7%      19.2%
EBITDA / Adjusted
EBITDA (b)   43,602     34,197     48,689     42,249     30,090
Margin %       27.0%      21.8%      31.4%      27.6%      20.3%
y-o-y
change %     44.9%      16.9%     173.9%     164.5%      98.6%
EBIT       (25,537)   (68,131)  (133,136)   (24,567)   (36,974)
Margin %    (15.8%)    (43.4%)    (86.0%)    (16.0%)    (24.9%)
Net profit/
(loss)     (80,258)   148,576   (328,131)  (250,010)  (245,407)

Total debt    -      (161,756) (3,702,559)(3,622,000)(3,501,988)
Cash and
Cash
equivalents 110,855    132,465    374,100    364,937    389,199
Capex       (37,311)   (49,477)   (56,299)   (72,710)   (92,062)

---------------------------------------------------------------
US$'000 (a)     1Q03       4Q02       3Q02       2Q02       1Q02
----------------------------------------------------------------
Revenues (b)  39,816     38,710     38,218     37,787     36,595

y-o-y %
change       8.8%       6.9%      11.8%      12.7%      19.2%

EBITDA / Adjusted
EBITDA (b)  10,763      8,441     12,018      9,935      7,427

Margin %     27.0%      21.8%      31.4%      27.6%      20.3%

y-o-y
change %     44.9%      16.9%     173.9%     164.5%      98.6%

EBIT        (6,304)   (16,817)   (32,863)    (6,064)    (9,127)
Margin %     (15.8)    (43.4%)    (86.0%)    (16.0%)    (24.9%)

Net profit/
(loss)      (19,811)    36,675    (80,969)   (61,713)   (60,578)

Total debt      -    (39,928)  (913,941)  (894,056)  (864,432)

Cash and cash
equivalents  27,363     32,698     92,343     90,081     96,070

Capex       (9,210)   (12,213)   (13,897)   (17,948)   (22,725)

(a) The US$ amounts shown in this table and in the entire
document have been translated using an exchange rate of PLN
4.0512 = US$1.00, the average rate announced by the National Bank
of Poland at March 31, 2003. These figures are included for the
convenience of the reader only.

(b) Please note that due to the changes of presentation format
introduced as of January 1, 2003 and related reclassification of
interconnection charges and revenues as well as part of voice
termination charges and revenues (previously shown net), the
revenues and operating costs figures for periods ended through
December 31, 2002 were adjusted accordingly to reflect these
changes and therefore vary from the figures reported previously.


----------------------------------------------------------------
Key operational indicators
----------------------------------------------------------------
                    1Q03     4Q02(c)    3Q02(b)      2Q02
1Q02
----------------------------------------------------------------

Network data
Backbone (km) 3,840      3,840      3,580      3,320      3,300

Number of
connected Lines
(cumulative) 501,512    500,552    503,358    529,658    527,562

Subscriber data (with regard to direct voice services)
Subscriber lines (cumulative)
             345,447    341,160    340,232    342,145    342,288
  Incl. ISDN equivalent of lines
             56,510     53,288     50,886     49,262     47,644
Total net
Additions    4,287        928     (1,913)      (143)    (1,514)
Business net
additions    2,965      2,429      1,212      1,434      2,569
Business subscriber lines
(cumulative) 108,603    105,638    103,209    101,997    100,563
Business mix of total subscriber
lines
(cumulative)   31.4%      31.0%      30.3%      29.8%      29.4%

ARPU (PLN)(a)   119        121        121        124        124
ARPU per business
line (PLN)(a)  215        222        232        236        243
ARPU per
residential line
(PLN)(a)        73         75         73         75         75

Churn          9,879     12,985     13,598     10,107     14,444
  Disconnections
   of defaulting
   payers
   originated by
   Netia       1,683      5,279      5,341      5,910      7,299
Voluntary
churn          8,196      7,706      8,257      4,197      7,145

Others
Headcount      1,283      1,289      1,283      1,323      1,362

(a) ARPUs presented in this report are given for a relevant
three-month period as opposed to figures for a last month in a
period reported previously.

(b) The number of connected lines reported for Q3 2002 has been
recalculated in order to reflect the impairment of 27,350 lines
due to the future limited utilization of certain existing parts
of Netia's local access network.

(c) The number of connected lines reported for Q4 2002 has been
recalculated in order to reflect the reconfiguration of the
radio-access system by approximately 4,000 connected lines.

----------------------------------------------------------------
Income statement (according to IAS), unaudited
----------------------------------------------------------------
(PLN in thousands unless otherwise stated)
Time periods:                   1Q03       1Q02       4Q02
----------------------------------------------------------------

Telecommunications revenue
  Direct Voice                122,500    127,686    124,196
  ------------              ----------- ---------- ----------
    -- installation fees          269        352        189
    -- monthly charges         30,618     31,868     31,428
    -- calling charges         91,613     95,466     92,579
    -- local calls             31,308     33,743     31,251
    -- domestic long-distance
        calls                  18,563     17,817     17,888
    -- international
        long-distance calls     7,106      8,473      7,780
    -- fixed-to-mobile calls   28,532     28,921     29,018
    -- other                    6,104      6,512      6,642

  Indirect Voice               13,362      4,773     11,868
  --------------             ----------- ---------- ----------
  Data                          7,490      4,125      5,902
  ----                        ----------- ---------- ----------
  Interconnection revenues       1,451      1,700      1,485
  ------------------------    ----------- ---------- ----------
  Wholesale services            11,178      3,143      6,934
  ------------------          ----------- ---------- ----------
  Other telecommunications
  Revenues                       2,801      1,030      3,854
  ------------------------    ----------- ---------- ----------
Total telecommunications
revenue                        158,782    142,457    154,239
Other revenue                    2,522      5,803      2,583
Total revenues                 161,304    148,260    156,822

Interconnection charges        (31,021)   (31,082)   (30,759)
Salaries & benefits            (29,251)   (35,106)   (33,565)
Legal & financial services     (19,062)   (18,123)   (17,568)
Cost of rented lines & network
maintenance                    (8,306)   (14,210)   (15,662)
Sales & marketing               (7,833)    (2,981)   (10,074)
Other operating expenses       (22,229)   (16,668)   (14,997)
EBITDA / Adjusted EBITDA        43,602     30,090     34,197
Margin (%)                       27.0%      20.3%      21.8%

Depreciation of fixed assets   (48,899)   (48,774)   (42,443)
Amortization of intangible
assets                         (20,240)   (18,290)   (19,221)
Impairment provision for
long-term assets                    -          -    (40,664)
EBIT                           (25,537)   (36,974)   (68,131)
Margin (%)                      (15.8%)    (24.9%)    (43.4%)

Net financial
(expenses) / income            (54,493)  (207,677)   216,827
(Loss) / Profit before tax     (80,030)  (244,651)   148,696

Tax (charges) / benefits         (148)      (651)       315
Minority share in profit of
subsidiaries                     (80)      (105)      (435)
Net loss / profit              (80,258)  (245,407)   148,576
Margin (%)                      (49.8%)   (165.5%)     94.7%

(Loss) / Profit  per share
(not in thousands)               (0.23)     (7.96)      2.56
Weighted average number of
shares outstanding
(not in thousands)             343,576,564 30,817,291 58,135,397

----------------------------------------------------------------
Note to financial expenses
----------------------------------------------------------------
(PLN in thousands unless otherwise stated)
Time periods:                    1Q03       1Q02       4Q02
----------------------------------------------------------------
Net interest (expense)/income  (1,881)  (104,348)    90,810
Net foreign exchange
(losses)/gains                (10,050)  (103,329)   126,144
Write-off of notes issuance costs
due to redemption of notes    (41,161)         -          -
Amortization of discount on
installment obligations          (136)         -          -
Amortization of notes issuance
costs                          (1,265)         -       (127)

----------------------------------------------------------------
EBITDA / Adjusted EBITDA Reconciliation to Loss from Operations
----------------------------------------------------------------
(PLN in thousands unless otherwise stated)
Time periods:                    1Q03       1Q02       4Q02
----------------------------------------------------------------

Loss from operations            (25,537)   (36,974)   (68,131)
Add back:
  Depreciation of fixed assets   48,899     48,774     42,443
  Amortization of intangible
   assets                        20,240     18,290     19,221
  Impairment provision for long
   term assets                        -          -     40,664

EBITDA / Adjusted EBITDA         43,602     30,090     34,197

----------------------------------------------------------------
Balance sheet (according to IAS, unaudited)
----------------------------------------------------------------
(PLN in thousands unless otherwise stated)

Time Periods                       March 31,  December 31,
                                       2003        2002
---------------------------------------------------------------

Cash and cash equivalents           110,855    132,465
Restricted investments, cash and cash
equivalents                         61,534    254,211
Accounts receivable
  Trade, net                        103,451     87,067
  Government value added tax          7,311      2,374
  Other                               4,823      8,147
Inventories                           1,329        854
Prepaid expenses                     14,527      8,260
Total current assets                303,830    493,378

Investments                             834      1,663
Fixed assets, net                 2,217,781  2,245,917
Licenses, net                       625,264    639,176
Computer software, net              111,258    112,685
Other long-term assets                   95          -
Total non-current assets          2,955,232  2,999,441

TOTAL ASSETS                      3,259,062  3,492,819

Short term liabilities for licenses 231,586    211,247
Accounts payable and accruals
  Trade                              55,647     89,864
  Accruals and other                 99,716     85,805
Deferred income                       8,537      6,956
Total current liabilities           395,486    393,872

Long term debt                            -    161,756
Long term liabilities for
licenses                            118,689    112,260
Long term installment obligations     5,276      5,141
Total non-current liabilities       123,965    279,157

Minority interest                    17,578     17,499

Share capital                       344,046    203,285
Share premium                     1,885,730  1,713,865
Treasury shares                     (2,812)    (2,812)
Other reserves                    3,507,086  3,819,712
Accumulated deficit             (3,012,017)(2,931,759)
Total shareholders' equity       2,722,033  2,802,291

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY              3,259,062  3,492,819

----------------------------------------------------------------
Cash flow statement (according to IAS), unaudited
----------------------------------------------------------------
(PLN in thousands unless otherwise stated)

Time periods:                     1Q03       1Q02       4Q02
----------------------------------------------------------------

Net (loss) / profit             (80,258)  (245,407)   148,576

Adjustment to reconcile net loss to
net cash provided by operating
activities
Depreciation of fixed assets and
amortization of goodwill, licenses
and other intangible assets     69,139     67,064     61,664
Amortization of notes
issuance costs                    1,265          -        127
Amortization of discount on
installment obligations            136          -          -
Write-off of notes issuance costs 41,161          -          -
Interest expense accrued on license
liabilities                       2,125      4,969      6,705
Interest expense accrued on long term
debt                              1,127    102,995    (94,523)
Minority share in profits of
subsidiaries                         80        105        435
Impairment provision for long term
assets                                -          -     40,664
Increase in long-term assets         (95)         -          -
Other provisions                      886          -          -
Foreign exchange losses / (gains)  9,055    103,788   (121,483)
Changes in working capital        (20,449)    (3,490)     3,305
Net cash provided by operating
activities                        24,172     30,024     45,773

Purchase of fixed assets and computer
software                         (37,311)   (92,062)   (49,477)
Decrease / (increase) in restricted
cash and cash equivalents       199,293          -   (197,744)
Net cash provided by / (used in)
investing activities            161,982    (92,062)  (247,221)

Redemption of notes              (204,193)         -          -
Payments related to restructuring  (4,475)   (20,487)   (33,655)
Payments for cancellation of swap
transactions                           -    (29,279)         -
Net cash used in financing
activities                       (208,668)   (49,766)   (33,655)

Effect of exchange rate change on
cash and cash equivalents          904     14,057     (6,532)

Net change in cash &
cash equivalents                  (21,610)   (97,747)  (241,635)

Cash & cash equivalents at the
beginning of the period           132,465    486,946    374,100

Cash & cash equivalents at the end of
the period                        110,885    389,199    132,465

----------------------------------------------------------------
Definitions
----------------------------------------------------------------
ARPU                -- average monthly revenue per direct voice
line (business or residential) during the period; ARPU is
obtained by dividing the amount of monthly revenues from direct
voice services (excluding installation fees) by the average
number of subscriber lines, in each case for the referenced
period; Backbone
                     -- a telecommunications network designed to
carry the telecommunications traffic between the main junctions
of the network;

Capex               -- cash spending related to capital
expenditures during the period;

Cash                -- cash and cash equivalents at the end of
period;

Churn               -- termination of direct voice services
contracted by a subscriber, which was originated either by a
subscriber (voluntary churn) or by Netia (disconnection of a
defaulting payer);

Connected line      -- a telecommunications line which was
constructed, tested and connected to Netia's network/switching
node and is ready for activation after signing an agreement for
providing telecommunications services;

Cost of rented      -- cost of rentals of lines and
telecommunications lines & network equipment, as well as
maintenance, services and maintenance related expenses necessary
to operate our network;

Data revenues       -- revenues from provisioning Frame Relay,
lease of lines and Internet fixed-access services;

Direct voice
revenues           -- telecommunications revenues from voice
services offered by Netia to its subscribers. Direct voice
services include the following traffic fractions: local calls,
domestic long-distance (DLD) calls, international long distance
(ILD) calls, fixed-to-mobile calls and other services (incl.
Internet dial-in, emergency calls, komertel and intelligent
network services (0-80x and 0-70x));

EBITDA /Adjusted    -- to supplement the reporting of our
consolidated EBITDA financial information under IAS, we will
continue to present certain financial measures, including EBITDA.
We define EBITDA as net income/(loss) as measured by IAS,
adjusted for depreciation and amortization, net financial
expense, income taxes, minority interest, share of losses of
equity investments and other losses and gains on dilution. EBITDA
for 2001 and 2002 has been further adjusted for impairment of
goodwill, provisions for fixed assets, effects of default on
long-term debt and cancellation of swap transactions and is
therefore defined as Adjusted EBITDA. We believe EBITDA and
related measures of cash flow from operating activities serve as
useful supplementary financial indicators in measuring the
operating performance of telecommunication companies.  EBITDA is
not an IAS measure and should not be considered as an alternative
to IAS measures of net income/(loss) or as an indicator of
operating performance or as a measure of cash flows from
operations under IAS or as an indicator of liquidity. The
presentation of EBITDA however enables investors to focus on
period-over-period operating performance, without the impact of
non-operational or non-recurring items. It is also among the
primary indicators we use in planning and operating the business.
You should note that EBITDA is not a uniform or standardized
measure and the calculation of EBITDA, accordingly, may vary
significantly from company to company, and by itself provides no
grounds for comparison with other companies;

Headcount           -- full time employment equivalents;

Indirect voice      -- telecommunications revenues from the
services revenues offered through Netia's prefix (1055) to
customers being subscribers of other operators.  Indirect access
services include the following traffic fractions: domestic long-
distance (DLD) calls, international long distance (ILD) calls and
fixed-to-mobile calls;

Interconnection     -- payments made by Netia to other operators
for charges origination, termination or transfer of traffic using
other operators' networks;

Interconnection     -- payments made by other operators to Netia
for revenues origination, termination or transfer of traffic
using Netia's network;

Legal and financial -- costs of taxes and fees, insurance as well
as services other financial services provided to Netia by third
parties;

Other operating     -- include primarily costs of office and car
expenses maintenance, information technology services, costs of
materials and energy, mailing services, bad debt expense and
other provisions and external services;

Other               -- revenues from provisioning Internet dial-
in telecommunications services for Netia's indirect customers
(based revenues on a call-back principle (provided currently) and
an access number (0-20) (to be provided in the future)),
Intelligent network services (0-80x and 0-70x), as well as other
non-core revenues;

Other revenue       -- revenues from radio-trunking services
provided by Netia's subsidiary, Uni-Net Sp. z o.o.;

Subscriber line     -- a connected line which became activated
and generated revenue at the end of the period;

Total debt          -- short-term and long-term interest bearing
liabilities;

Wholesale services  -- revenues from providing commercial network
services such as voice termination, incoming Voice over Internet
Protocol (VoIP), telehousing and collocation as well as backbone-
based services.

CONTACT:  NETIA
          IR:
          Anna Kuchnio
          Phone: +48-22-330-2061


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


LYCOS EUROPE: Losses Strongly Improved Compared to Q1/02
--------------------------------------------------------
Compared to the same period last year (EUR 32.1 million) Lycos
Europe`s total revenues decreased by 35% to EUR 20.8 million for
the three months ended March 31, 2003. This decline is the result
of the ongoing weak advertising market, the sale of loss-making
subsidiaries and the loss of the advertising agreement with
Bertelsmann AG in October 2002. Adjusted for the sale of group
companies total revenues decreased by 25 percent compared to the
first three months 2002. On the same pro forma basis advertising
revenues were down by 46 percent, while paid services and
shopping revenues increased significantly by 77 percent compared
to the same period last year to now EUR 4.8 million.

Through the ongoing reduction of operational costs and the sale
of loss-making subsidiaries Lycos Europe succeeded in reducing
its EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) losses to EUR (10.9) million for the first three
months 2003, which is an improvement of 37 percent compared to
the same period last year (EUR (17.4) million). Adjusted for the
sale of group companies EBITDA improved by 28 percent.

Net loss improved by 88 percent from EUR (119.7) million in the
first quarter 2002 to EUR (14.7) million in the same period 2003.
Adjusted for a goodwill impairment loss of EUR (100.4) million in
2002 net loss improved by 24 percent.

On March 31, 2003, Lycos Europe`s cash position amounted to EUR
211.5 million compared to EUR 219.6 million on December 31, 2002.
Lycos Europe`s financial statements have been prepared in
accordance with the United States generally accepted accounting
principles (US GAAP).


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


ABB LTD.: Offers US$85 Million Worth of Shares in Sinopec
---------------------------------------------------------
ABB Ltd. is offering 457.3 million Sinopec shares worth US$85
million, according to copies of the sale document sent to
investors on Tuesday.

The offer prices Sinopec shares in a range of HK$1.43-$1.46 per
share, slightly lower than the closing price of HK$1.49 on
Tuesday in Hongkong.  Shares in the Chinese oil firm were down
0.67% on Tuesday.

ABB invested US$100 million in Sinopec's initial public offering
in 2000.

The Swiss engineering company is divesting non-core businesses to
focus on power and automation technologies and reduce debt,
currently at US$9 billion.

It is also waiting for the decision of the court hearing the case
related to its proposed asbestos package.

In January, ABB Ltd. and its U.S. subsidiary Combustion
Engineering agreed to a pre-packaged bankruptcy plan for CE.  It
set aside US$1.2 billion to settle pending asbestos claims.

CONTACT:  ABB LTD.
          Investor Relations
          Switzerland
          Phone: +41 43 317 3804
          Sweden
          Phone: +46 21 325 719
          USA
          Phone: + 1 203 750 7743


SWISS INTERNATIONAL: To Reduce Capital, Elect New Board Members
---------------------------------------------------------------
SWISS reported to its shareholders on the 2002 financial year at
today's General Assembly. A large majority of shareholders agreed
with all the Board of Directors' proposals. Amongst other things,
shareholders voted in favor of a reduction in capital, elected
two new Board members and formally approved the actions of the
Board of Directors.

Consolidated accounts 2002

As already announced, SWISS generated consolidated sales of CHF
4278 million in 2002 and posted a loss of CHF 980 million.
Excluding non-recurring expenses, losses amounted to CHF 658
million. The enduring economic slowdown, the after-effects of the
conflict in Iraq, the SARS virus and modest demand in the air
travel sector continue to impact negatively on the current
financial year.

Reduction in capital

Given that the company cannot operate profitably for the moment,
and that the possibility of net equity falling below half the
amount of the share capital cannot be ruled out, the General
Assembly approved a motion to cut the company's capital by
reducing the nominal value of each share by CHF 18, i.e. from CHF
50 to CHF 32. The share capital was also reduced by the same
proportion, i.e. from CHF 2.627 billion to CHF 1.681 billion, to
absorb the deficit balance of CHF 946 million. Amounts owing to
creditors remain fully covered, even after this reduction in
capital.

Election of new Board of Directors' members

The Board of Directors has reduced the number of its members from
eleven to nine. Mr Peter Wagner left the Board some months ago,
on 16 December 2002. Messrs Kevin E. Benson, Philip H. Geier and
Riccardo Gullotti resigned with effect from 6 May 2003. The
General Assembly elected the two candidates proposed by the Board
of Directors, Walter Bosch and Jan Audun Rein†s, each for a 3-
year period of office. The new Board now comprises the two most
recently elected members, Pieter Bouw (Chairman), Claudio
Generali, Jacques Aigrain, Andr‚ Kudelski, Michael Pieper, Urs
Rohner and Peter Siegenthaler.

This year's General Assembly was held at the St. Jakobshalle in
Basel. It was attended by around 860 shareholders.

CONTACT:  SWISS
          Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone:  +41 (0) 848 773 773
          Fax:  +41 61 582 35 54
          E-mail: communications@swiss.com


VON ROLL: Has Two More Months to Devise Rescue Plan
-------------------------------------------------------
Shareholders and 33.69% of bondholders agree to the restructuring
concept - now, a two months' extension phase

At Tuesday's General Meeting, the Von Roll Holding shareholders
have approved the Board of Directors' proposal to implement the
balance sheet restructuring scheme. However, the necessary two-
thirds majority of all outstanding bonds required for approving
this restructuring concept was not reached at the bondholders'
meeting held on the same day. Bondholders representing bonds to
the total nominal value of CHF 30'665'000.- did accept the
restructuring proposal; this represents approval of the
restructuring scheme by 33.69 % of the value of the outstanding
bonds.

According to the provisions of Article 1172 of the Swiss Code of
Obligations, the Company now has two months' extension within
which to obtain a sufficient number of approvals from the
bondholders.


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


ASCOM: Supplements Board, Changes Representation of Muller-Mohl
------------------------------------------------------------
At the Annual General Meeting on May 6, 2003, the shareholders of
Ascom Holding Ltd. agreed to the supplementation of the Board of
Directors and the change in the representation of the Muller-Mohl
Group: The shareholders have newly appointed Peter Schopfer, CEO
and Country Manager with T-Systems, to the Ascom Holding Ltd
Board of Directors and Beat Naef, CEO of the Muller-Mohl Group,
as successor to Dr Frank Gulich.

The Ascom Annual General Meeting adopted all proposals put
forward by the Board of Directors. The Board of Directors was
discharged from its responsibilities.

140 shareholders participated in the Ascom Holding Ltd Annual
General Meeting on May 6,2002 in Zurich. They represented 11 037
153 votes, which equates to 49 percent of the shareholder's
capital.

The Board of Directors of Ascom Holding Ltd now comprises:

Juhani Anttila (49), Chairman of the Board of Directors of Ascom
Holding Ltd, CEO of the Ascom Group, member of the board since
2001;

Paul E. Otth (59), Vice Chairman andNon-Executive Lead Director,
Business consultant, member of the board since 2002;

Dr. Wolfgang Kalsbach (49), CEO of Micronas Semiconductor AG,
member of the board since 2002;

Beat Naef (38), CEO of the Muller-Mohl Group (new)
Peter Sch”pfer (46), CEO and Country Manager of T-Systems
Switzerland (new);

About Ascom
Ascom is an international supplier of telecommunications systems,
integrated voice and data communications, wireless and corded
security solutions and networked revenue collection systems for
public and private transport operators. Ascom's business units
plan, build, maintain and operate tailor-made comprehensive
solutions along the whole of the added-value chain with a
service-oriented portfolio and proven technology know-how as well
as its own products. Ascom is active worldwide in markets with a
high growth potential. The Ascom registered shares (ASCN) are
quoted on the SWX Swiss Exchange in Zurich.

CONTACT:  ASCOM
          Home Page: http://www.ascom.com
          Rudolf Hadorn, Chief Financial Officer
          Stettbachstrasse 6
          CH-8600 Dbendorf

          Phone: +41 1 631 14 15
          Fax: +41 1 631 28 00
          E-mail: investor@ascom.com


BRITISH AIRWAYS: Issues Traffic and Capacity Statistics for April
-----------------------------------------------------------------
Summary of the headline figures

In April 2003, overall load factor rose 0.7 points to 64.6 per
cent. Passenger capacity, measured in Available Seat Kilometres,
was 1.3 per cent below April 2002 and traffic, measured in
Revenue Passenger Kilometres, was lower by 2.0 per cent. This
resulted in a passenger load factor down 0.4 points versus last
year, to 69.0 per cent. The fall in traffic comprised a 26.4 per
cent reduction in premium traffic and a 2.7 per cent increase in
non-premium traffic. These numbers were impacted by the timing of
Easter versus last year. Cargo, measured in Cargo Tonne
Kilometres, fell by 7.3 per cent.

Market conditions

Revenue and forward bookings continue to be impacted by global
economic weakness, SARS, and the situation in Iraq. Forward
visibility on revenue and traffic remains limited.

Strategic Developments

British Airways announced the retirement of its Concorde fleet of
seven aircraft with effect from the end of October 2003.

A U.S. Department of Transportation order tentatively gave
British Airways and American Airlines authority to codeshare on a
wide number of flights beyond their gateways in London and the
United States.

British Airways launched a new direct air link from Glasgow to
London City operated by its wholly owned subsidiary, British
Airways CitiExpress, using 110 seat RJ100 jet aircraft. This
follows the launch of flights from London City to Paris and
Frankfurt on March 30th. There will be three return flights on
weekdays and one return service on Sundays.

British Airways resumed flights from Heathrow to Tel Aviv and
Kuwait and re-introduced direct services to Abu Dhabi, Dubai, and
Bahrain, Jeddah and Riyadh. It also announced plans to return to
Baghdad with a thrice weekly service, when it is safe to do so.

British Airways franchise operator, GB Airways, announced the
introduction of another two destinations Fuerteventura and
Tenerife North - to its network from the UK.

May 06, 2003 049/KG/03


BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
                                                Month of April

Change
SCHEDULED SERVICES                2003         2002          (%)
Passengers carried (000)
UK/Europe                         2227         2209         +0.8
Americas                           556          534         +4.1
Asia Pacific                        90          124        -27.3
Africa and Middle East             185          205         -9.9
Total                             3058         3072         -0.5
Revenue passenger km (m)
UK/Europe                         1781         1720         +3.5
Americas                          3760         3618         +3.9
Asia Pacific                       987         1267        -22.1
Africa and Middle East            1303         1382         -5.7
Total                             7830         7986         -2.0
Available seat km (m)
UK/Europe                         2729         2638         +3.4
Americas                          5048         5197         -2.9
Asia Pacific                      1636         1639         -0.2
Africa and Middle East            1942         2030         -4.3
Total                            11354        11503         -1.3
Passenger load factor (%)
UK/Europe                     65.3         65.2         +0.1 pts
Americas                      74.5         69.6         +4.9 pts
Asia Pacific                  60.3         77.3        -17.0 pts
Africa and Middle East        67.1         68.1         -1.0 pts
Total                         69.0         69.4         -0.4 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)               308          333         -7.3
Total RTK                         1087         1127         -3.6
Available tonne km (m)            1682         1765         -4.7
Overall load factor (%)       64.6         63.9         +0.7 pts

Certain information included in this statement is forward-looking
and involves risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
the forward looking statements.

CONTACT:  BRITISH AIRWAYS
          Investor Relations
          Waterside (HCB3)
          PO Box 365
          Harmondsworth
          UB7 OGB
          Phone: +44 (0) 20 8738 6947
          Fax: +44( 0) 20 8738 9602


BRITISH ENERGY: Presents Output From Power Stations for April
-------------------------------------------------------------
A summary of net output from all of British Energy's power
stations in April is given in the table below, together with
comparative data for the previous
financial year:-


                                 2002/03
                    December          Year to Date
                Output   Load Factor  Output    Load
                 (TWh)       (%)      (TWh)    Factor (%)

UK- Nuclear        5.71      83          5.71      83
UK- Other          0.29      21          0.29      21
USA- Amergen       1.06      61          1.05      61

(50% owned)

UK-Nuclear
                                2002/03
                    December          Year to Date
                Output   Load Factor  Output    Load
                 (TWh)       (%)      (TWh)    Factor (%)
UK Nuclear        5.52       80         5.52      80
UK Other          0.38       27         0.38      27
Bruce Power       1.77       97        15.86      76
USA- Amergen      1.73       97         1.73      97

(50% owned)

UK-Nuclear

Planned Outages

-- A statutory outage continued at Dungeness B.
-- Off-load refuelling was carried out on the other reactor at
Dungeness B.
-- Low-load refuelling was carried out on one reactor each at
Hinkley Point B, Hunterston B and Torness.

Unplanned Outages

-- An outage was completed at Heysham 2 to carry out turbine
repairs.

UK - Coal

-- A maintenance outage began on one unit at Eggborough

USA

-- A minor unplanned outage occurred at Clinton.

CONTACT:  BRITISH ENERGY
          Paul Heward, Investor Relations
          Phone: 01355-262201


CHRISTIAN SALVESEN: Conditional Sale of German Business Agreed
--------------------------------------------------------------
Christian Salvesen PLC announces that it has agreed to sell its
German industrial logistics business for a nominal consideration
to its Managing Director for Germany, Mr Torben Sigenstrom.

Following a review of certain of the Group's operations earlier
in the year and the statement issued on April 16, 2003, Christian
Salvesen PLC announces that it has agreed to sell its German
industrial logistics business for a nominal consideration to its
Managing Director for Germany, Mr Torben Sigenstrom. The sale is
subject to conditions that include approval for the assignment of
certain customer contracts and the German statutory requirement
for employee endorsement of the transaction. It is expected that
the sale will be completed by mid May 2003.

The Group's accounts for the year to March 31, 2002 include
turnover of GBP45.9 million in respect of the German business and
an operating loss of GBP5.2 million before exceptional items and
goodwill amortization of GBP17.3 million. The cash outflow for
the German business for that year was GBP7.5 million, before
capital investment and disposals. The business currently has net
assets of approximately GBP19 million and the Group expects to
take an exceptional charge on sale of approximately GBP9.6
million in the year to March 31, 2003. A further exceptional
charge on sale of approximately GBP10.4 million will be taken in
the year to March 31, 2004.

Christian Salvesen remains committed to providing in-market
network coverage of Germany as part of its European strategy.
This will be delivered through arrangements with the business
being sold and through strategic alliances and partnerships.


GLAXOSMITHKLINE PLC: Chief Executive Accrues Large Pension
----------------------------------------------------------
GlaxoSmithKline chief executive Jean-Pierre Garnier accrued a
pension almost equal to his 2002 salary, Bloomberg noted the data
in the company's annual report.

Mr. Garnier was able to accumulate a pension worth GBP929,000 a
year, or 6.4% more than in 2001.  It was little short of his
salary of GBP967,000 for 2002 when GlaxoSmithKline's share value
declined 31%.

Glaxo have stopped paying pensions based on employee salaries at
retirement, thus its CEO will get pensions based on his final
salary.

The increase in Mr. Garnier's stock-related bonuses was delayed
in November due to the opposition of institutional investors.

The general boost in the retirement plans of top executives in
Britain at a year when stock prices are down, and the pension
deficits at U.K. corporations rose to more than GBP30 billion,
were angering shareholders.

Investor groups including the National Association of Pension
Funds were known to have criticized executives receiving generous
pay-offs.

``Shareholders are paying a lot more attention to pensions, which
were previously a hidden benefit,'' said Stuart Bell, research
director at Pension & Investments Research Consultants Ltd, an
investor activist group, according to Bloomberg.


LE MERIDIEN: Managers to Present Restructuring Plan to Investors
----------------------------------------------------------------
Executives at hotel operator Le Meridien are set to present a
proposal on how to manage the troubled group's GBP1.0 billion
debt, according to an industry source.

The management team of the luxury-hotels group will unveil the
restructuring plan to financial creditors and equity investors on
May 19, the source told Dow Jones.

The report, however, did not provide further details of the plan
spearheaded by Le Meridien Chairman Guy Hands and some of
advisers from his private equity firm Terra Firma.

Japanese bank Nomura Holdings Inc., whose principal finance group
is headed by Mr. Hands, bought Le Meridien for GBP1.9 billion
less than two years ago.  It remains the hotel group's majority
equity investor.

Royal Bank of Scotland Group PLC, Abbey National PLC and private
equity house Alchemy Partners, are Le Meridien's other investors.

Le Meridien hotels include the Grosvenor House and Waldorf hotels
in London.  The assets are worth between GBP600 million and
GBP700 million, according to the source.

The group has 20 financial creditors, including most of the major
lending banks.


IMPERIAL CHEMICAL: Chitwood & Harley Files Class Action Lawsuit
---------------------------------------------------------------
-- 35 Days Left to File Lead Plaintiff Papers in Securities Class
Action Proceeding, Chitwood & Harley LLP Reminds Purchasers of
Imperial Chemical Industries Securities -- ICI

Chitwood & Harley LLP, which previously announced a class action
lawsuit in the United States District Court for the Southern
District of New York, against Imperial Chemical Industries PLC,
and certain of its officers, reminds ICI investors that there are
35 days left to file lead plaintiff papers in this matter. The
suit was brought on behalf of purchasers of the publicly traded
securities of Imperial Chemical between August 1, 2002 and March
24, 2003, inclusive. If you have questions about this notice or
your rights in this matter, we would be happy to speak with you.
Please contact Jennifer Morris at 1-888-873-3999 extension 6883
or by email at jlm@classlaw.com or through our website,
http://www.classlaw.comby clicking on Imperial Chemical
Industries.

As previously released, the complaint charges Imperial Chemical
Industries PLC and certain of its officers and directors with
issuing false and misleading statement concerning ICI's business
and financial condition. Specifically, the complaint alleges that
defendants issued numerous press releases in which they stated
that they had resolved the Company's distribution and software
problems that the Company had experienced at its Quest division's
Fragrance & Food businesses. Defendants further stated that the
Company was on track to report strong financial results, that the
Company had cleared its backlog of customer orders and that the
Company had not lost any customers as a result of its production
problems.

The Complaint alleges that these statements were materially false
and misleading because they failed to disclose and/or
misrepresented the following adverse facts, among others: (a)
that ICI's software, distribution and production problems at its
Quest division were not "temporary" problems or "unique" to the
Naarden, The Netherlands location, but impacted company-wide
operations and profitability; (b) that ICI's software,
distribution and production problems at its Quest division had
not been "essentially" or "largely" "resolved" or "rectified";
and ( c) that contrary to ICI's representations that it had
cleared its backlog of orders and not lost any customers as a
result of the software, distribution and production problems at
Quest, ICI's customers were, in fact, obtaining new sources of
supply and discontinuing their relationships with ICI.

On March 25, 2003, before the open of trading, ICI shocked
investors when it issued a profit warning with respect to its
fiscal 2003 first quarter. Defendants announced that its first
quarter profit would drop approximately 24%, as a result of,
among other things, ``business lost following the customer
service problems in 2002.'' Following this announcement, shares
of ICI fell from a close of $9.60 per share on March 24, 2003 to
$6.05 per share on March 25, 2003, or a single-day decline of
more than 36%, on nearly ten times normal trading volume.

Chitwood & Harley LLP is currently investigating these claims. If
you wish to discuss this action or have any questions concerning
this notice or your rights with respect to this matter, you may
contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-
mail at jlm@classlaw.com. You may also contact us through our
website, www.classlaw.com by clicking on Imperial Chemical
Industries. If you wish to serve as lead plaintiff in this
action, you must file a motion to do so no later than June 9,
2003. Any member of the purported class may move the Court to
serve as lead plaintiff through counsel of his or her choice. You
may choose not to move for lead plaintiff and to remain an absent
class member.

Chitwood & Harley LLP is a class action firm that concentrates
its practice in representing victims of securities fraud and
corporate mismanagement, as well as other complex litigation.
Chitwood & Harley has been appointed lead counsel in major
actions throughout the United States and has been instrumental in
recovering billions of dollars on behalf of its clients. Clients
and courts alike have praised the results achieved by Chitwood &
Harley. Recently, the federal judge in In re BankAmerica
Securities Litigation, which resulted in the highest recovery
last year in a securities class action, commented favorably on
counsel's performance stating: "Class members were well served by
experienced attorneys who, through considerable time and effort,
obtained a significant recovery for their clients," and, "(a)s
the Court has remarked throughout this litigation, class counsel
... have performed at exceptionally high levels, and all parties
have been exceedingly well represented."

For more information about Chitwood & Harley LLP, please visit
our website at http://www.classlaw.comor contact Jennifer Morris
at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or
at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.

CONTACT:  CHITWOOD & HARLEY LLP
          Lauren S. Antonino, Esq.
          Jennifer Morris, Director of Investor Relations
          Phone: (888) 873-3999 or (404) 873-3900


NMT GROUP: Benefits From Cost Reduction, But Remains Cautious
-------------------------------------------------------------
NMT announces strong sales during the first four months of 2003.

At the Annual General Meeting of NMT Group PLC held in
Livingston, Scotland, Roy Smith, NMT's Chief Executive, will
update shareholders on the progress made by the Company since the
end of the year. The text of the update is as follows:

The Board is pleased to announce that sales during the first four
months of 2003 were significantly ahead of analyst forecasts. The
increase was driven by strong demand for the first generation
safety syringe, primarily from the Company's pharmaceutical
partner, Roche.

Sales demand has been matched by increased manufacturing output
at the Livingston, Scotland, manufacturing facility. The
continued efforts of the Company's dedicated manufacturing staff
have delivered a steady increase in consistent unit volume
production.

With increased production volumes, the Company is beginning to
benefit from initial reduced unit manufacturing costs. However,
further improvements in productivity and yield must be delivered;
these improvements remain a major priority for the operational
management over the forthcoming months.

We have been making progress in other areas of the business. The
Group continues to seek additional 1st Generation syringe
business, although no material new contracts have been signed
yet.

Licensing discussions with regard to 2nd Generation technology
are progressing, with several parties demonstrating commercial
interest. In addition, the Company has recently signed an
exclusive distribution contract with Alaris Medical Systems for
the supply of the Vaxess IV cannula range within the UK acute
care hospital market.

We continue to assess intellectual property opportunities that
will allow NMT to broaden our safe drug delivery portfolio,
particularly in the pre-filled syringe arena.

The directors remain of the opinion that NMT will successfully
defend the ongoing patent infringement suit brought by
Retractable Technologies, Inc. (RTI), despite the addition of an
earlier RTI patent to the litigation. The addition of the further
patent has delayed the trial date until the summer of 2004.

Commenting on the statement, Roy Smith, Chief Executive Officer
said, "I am delighted with the progress that we have achieved in
the last four months. However, whilst the performance is
encouraging, the management team fully recognises the importance
of continuous financial and operational improvement. We look
forward to reporting on further progress throughout the year."

CONTACT:  NMT Group PLC
          Roy Smith, Chief Executive Officer
          Phone: 01506 445004
          Gerard Cassels, Group Finance Director
          Phone: 01506 445004

          FINANCIAL DYNAMICS
          Phone: 0207 831 3113
          Melanie Toyne-Sewell


SEYMOUR PIERCE: Sells Antfactory Investments, Changes Board
-----------------------------------------------------------
The Board of Seymour Pierce Group Plc announces that it has
reached agreement with Mr Harpal Randhawa whereby Mr Randhawa
steps down from his current role as Executive Vice Chairman of
the Group but remains on the Board as a non-executive director.
This change takes place with effect from May 1, 2003.

In addition, antfactory Investments BV, a wholly owned subsidiary
of the Group, which holds the portfolio of remaining, unrealized
antfactory investments, has been acquired by an unconnected
company, antfactory Holdings Netherlands BV, for a nominal sum.
These investments were fully provided against in the Group's 2002
annual report and accounts. AHNBV has assumed the burden of
certain intra-group debts owed to antfactory Investments BV.  In
reviewing the prospects for the successful realisation of the
investments, which were considered remote, the Board of the
Company reviewed proposals for their additional funding, as well
as the ongoing expenses of their management, and declined to make
further commitments. Agreement has also been reached for the
termination of the investment management agreement relating to
these investments between the Company, antfactory Investments BV
and Gem Investment Management Limited, a company ultimately
controlled by a trust whose beneficiaries include members of Mr
Randhawa's family.

Disposals of investments from the antfactory portfolio have
contributed GBP11m cash to the Company since February 2002.


THUS GROUP: Meets Target, Says on Track for Further Growth
----------------------------------------------------------
Highlights

Sustained growth and margin expansion

-- Statutory turnover up 9% to GBP291.2 million, with like for
like turnover up 12%1

-- Gross profit up 30% to GBP64.2 million, with gross margin up
from 18% to 22%

-- EBITDA2 GBP27.1 million (2002: GBP3.13 million), with EBITDA
margin at 9%

-- (2002: 1%) Loss before tax reduced 44% to GBP58.8 million

-- Capital expenditure GBP44.9 million, down to 15% of turnover
(2002: 29%)

Financially strong

-- Net cash flow from continuing operating activities GBP26.1
million (2002: GBP (1.6) million)

-- Cash outflow before financing costs4 GBP28.3 million (2002:
GBP(67.0) million)

-- Cash GBP12.1 million. Net debt GBP32.7 million. Gearing 11%.
Fully funded.

Commenting on today's results, William Allan, Chief Executive
said:

'Despite difficult trading conditions, THUS has delivered another
strong set of results in line with our objective to become cash
flow positive after interest and capital expenditure by March
2004. THUS is now operating cash flow positive for the full
financial year, with a strong trajectory for our stated
objectives for operating profits.

'Throughout the year, we remained cautious on the outlook for the
UK economy, and highlighted uneconomic pricing by distressed
competitors. As we have previously and consistently stressed, we
are focused on generating quality recurring revenues with sound
operating margins. This strategy has proved effective and has
resulted in 4% statutory gross margin expansion, and a nine-fold
increase in EBITDA from customer growth and the planned operating
efficiencies we implemented last year.

'Our focused marketing through the THUS and Demon brands has
resulted in significant growth in our data services. Our record
on service innovation remains class-leading, allowing us to win a
growing blue chip customer base, including new business from
Shell, Conoco, Orange, UKERNA, Ordnance Survey, the
Scottish Executive and Capital Radio Plc.

'We expect the cautious trends from this year on the economy and
competitor activity to continue. However, the strategy we
outlined at the time of our listing enabled us to scale and flex
our business according to changing market conditions. Assuming
the macro environment remains broadly unchanged, we remain
comfortable with market expectations for the year ahead.'

1   Like for like growth excludes turnover from Interactive
Branded, Scotland On-Line Limited and the residential telephone
service which were either disposed of or ceased in the year ended
March 31, 2002

2   Earnings before interest, tax, depreciation and amortisation
(See Note 4 of the Preliminary Statement)

3   EBITDA for the year ended 31 March 2002 excludes GBP3.2
million exceptional restructuring costs

4   Representing cash outflow before financing of GBP(36.7)
million (2002: GBP(86.3) million) and returns on investments and
servicing of finance of GBP(8.4) million(2002: GBP(19.3)million)

To See Financial Statement:
http://bankrupt.com/misc/THUS_Group.htm

CONTACT:  THUS GROUP PLC
          William Allan, Chief Executive
          Phone: 020 7763 3156
          John Maguire, Chief Financial Officer
          Phone: 020 7763 3156
          Deborah Rodger
          Head of Press & Corporate Communications
          Phone: 07747 770051
          Kathryn Rhinds, Investor Relations Manager
          Phone: 020 7763 3126

          SMITHFIELD FINANCIAL
          John Antcliffe
          Phone: 020 7360 4900
          Nick Bastin

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

       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
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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