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

                           E U R O P E

             Friday, August 8, 2003, Vol. 4, No. 156


                            Headlines


C Z E C H   R E P U B L I C

CK FISCHER: Partner's First Attempt to Rescue Firm Fails
UNION BANKA: Invesmart Files Arbitration Actions vs. Govt


F I N L A N D

F-SECURE CORPORATION: Streamlines Organization in Finland


F R A N C E

ALSTOM SA: Secures EUR2.8 Billion Financing Package from Banks
ALSTOM SA: Refinancing to Bring Relief, But Concerns Persist
ALSTOM SA: Shares Resume Trading on London Stock Exchange
ALSTOM SA: Finance Ministry to Review France's Bankruptcy Law
ALSTOM SA: Amicus Asks U.K. Government to Defend 2,000 Jobs


G E R M A N Y

BASLER AG: Second Quarter Results Show Return to Profitability
COMMERZBANK AG: First-half Results up 56% this Year
LOEWE AG: Warns Full-year Results Could be in Red
WESTLB AG: Increases Risk Provisions to EUR615.2 Million


I R E L A N D

AER LINGUS: 2003 First Half Results Show Continuing Progress


I T A L Y

CIRIO FINANZIARIA: 'Receivers' to be Known Over the Weekend


L U X E M B O U R G

MILLICOM INTERNATIONAL: Posts 29% Increase in 2nd Quarter EBITDA


N O R W A Y

NORSKE SKOG: Improvement Program Brings in NOK320 Million
STOREBRAND BANK: Moody's Ups Financial Strength Rating to C-


P O L A N D

BANK MILLENNIUM: To Submit Semi-annual Reports Ahead of Schedule
ELEKTRIM SA: Appointment of Piotr Rymaszewski Causes Dispute


R U S S I A

YUKOS OIL: Discloses Proposed Board Composition of YukosSibneft
YUKOS OIL: Internet Technology Subsidiary Under Investigation


S W I T Z E R L A N D

CENTERPULSE AG: Smith & Nephew Quits Bid Battle with Zimmer
MOVENPICK GROUP: Attributes 1st-half Income to Asset Disposals
SWISS INTERNATIONAL: Suspends New Commission Rate for Agents
VON ROLL: Bond-to-share Conversion Receives no Objection


U N I T E D   K I N G D O M

AES DRAX: U.S. Parent Withdraws Support for Restructuring
EXETER INVESTMENT: To Sell Fund Management Rights to New Star
EXETER INVESTMENT: Sale of Management Rights May Threaten Jobs
EXETER INVESTMENT: Discloses Terms of Management Rights Disposal
EXETER INVESTMENT: Sale Proceeds to Strengthen Balance Sheet

EXETER INVESTMENT: Retains Management of Investment Portfolio
EXETER INVESTMENT: Two Executive Directors to Resign October
EXETER INVESTMENT: No Writedown Expected for Rights Disposal
KLEENEZE PLC: Thwarted Buyer Questions DMG Sale to Rival Bidder
SPIRENT PLC: First-half Operating Profits Fall 56%


                            *********


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


CK FISCHER: Partner's First Attempt to Rescue Firm Fails
--------------------------------------------------------
The creditors of Vaclav Fischer, owner of CK Fischer, Czech's biggest travel
agency, refused the rescue proposed by the entrepreneur's partner, Karel
Komarek, Czech Happenings reported citing Lidove noviny LN.

Komercni banka, Czech Airlines and Czech Airports Authority, which are owed
some CZK470 million, rejected the offer as too little.  Under the proposal,
the creditors will only get back half of the amount they were owed.  The
report cited a source saying, Komercni Banka, which has the largest claims
on Fischer's firms, wants to give chance to other investors.  The bank holds
buildings, aircraft and the Fischer trademark as collateral.

Fischer's debts might be sold to investors but the source said:    "The bank
wants to choose from a greater number of offers and only then will it decide
on whether to continue with the distraint or sell the debts."

The delay in the talks regarding the rescue of the Fischer group increases
the likelihood that the entire group -- composed of Fischer Air and Fischer
s.r.o. -- will not be saved, according to the report.

Karel Komarek is acting through his firm Atlantik FT.


UNION BANKA: Invesmart Files Arbitration Actions vs. Govt
---------------------------------------------------------
Invesmart, the majority stakeholder of failed Union Banka, has filed against
the Czech Republic two arbitration proceedings backed by its 98%
shareholder, Paolo Catalfarmo.

PR agent for Invesmart, Michal Donath, told Interfax that the investment
firm has sent a letter to the Finance and Foreign Ministries detailing the
firm's charges.  It is noted that Invesmart and Catalfamo claim the Czech
Republic failed to protect their investment in Union Banka.

Radek Nemecek of the Finance Ministry's PR department, however, said the
ministry has not yet received any letter from Invesmart or Catalfamo and
that they are prepared to begin dealing with the matter immediately upon
receipt of the letter.  Mr. Donath said the Czech authorities are given six
months to reach a settlement agreement, and if it won't happen, Invesmart
will launch arbitration proceedings that could mount up to CZK10 billion in
damages.  Catalfamo has expressed confidence that the dispute can be
resolved without going to an international arbitration tribunal, Interfax
said.

Invesmart B.V. acquired a majority stake in Union Group and Union Banka in
June of 2002.  The Ostrava-based bank later closed its branches after the
state refused to provide Invesmart with CZK1.7 billion in state aid, which
it was seeking.  With its banking license revoked by the Czech National
Bank, Union Banka was sent into liquidation and was declared bankrupt soon
after due to insolvency and high debts.  The bankruptcy was proposed by 33
of Union Banka's creditors, including the state's deposit insurance fund.


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


F-SECURE CORPORATION: Streamlines Organization in Finland
---------------------------------------------------------
F-Secure Corporation has submitted an employee negotiations proposal
according to the Finnish Labour Statute.  The goal is to seek cost savings
to ensure the continuation of positive cash flow.  The proposed actions will
include a headcount reduction of approximately 20 people in R&D, Customer
Advocacy and Business Information Services.  The negotiation proposal was
submitted August 6, 2003.

F-Secure Corporation

Risto Siilasmaa
President and CEO

CONTACT:  F-SECURE CORPORATION
          Risto Siilasmaa, President and CEO
          Phone: 358 9 2520 5510
          Taneli Virtanen, Director of Finance
          Phone: 358 9 2520 5655
          Home Page: http://www.F-Secure.com


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


ALSTOM SA: Secures EUR2.8 Billion Financing Package from Banks
--------------------------------------------------------------
ALSTOM presented a new strategic action plan on March 12, 2003, comprising
three main elements: an extended disposals program, actions to significantly
improve operational performance and measures to strengthen the Group's
financial structure, including a capital increase.  Significant progress has
already been achieved with many elements of this plan, as previously
reported.

At the Group's Annual General Meeting on July 2, 2003, it was indicated that
a precondition to proceeding with the capital increase would be the
refinancing of debt facilities maturing in the first half of 2004.  ALSTOM
is facing a difficult environment, notably a power generation market that
remains at a historically low level.  The Group's commercial activity has
also been increasingly impacted by uncertainty as to ALSTOM's future, which
contributed in part to the low level of order intake reported for the first
quarter of fiscal year 2003/04.  In addition, ALSTOM now expects half-year
operating profit and cash flow to be negatively impacted by specific
difficulties related to project execution (detailed below).  These negative
trends, coupled with short-term liquidity needs pending the sale of its
Transmission & Distribution Sector (T&D), have led ALSTOM to accelerate and
broaden discussions with its banks in order to put in place a long-term
structural solution for the Group.

ALSTOM announced Wednesday that it has secured a comprehensive financial
package with the signature of an agreement with more than 30 of its banks.
This will enable the Group to repay the existing debt facilities maturing in
the first half of 2004 while providing adequate short and medium term
liquidity.  It will substantially increase the Group's equity and ensure it
has adequate contract bonding capacity to support its ongoing business
activity level.  This agreement includes commitments from the French State,
given the potential impact of ALSTOM's situation in the industrial, social
and financial domains across a number of countries, and particularly in
Europe.

The main features of the financing package will be:

Strengthening of the Group's equity through:               EUR million

(a) Underwritten capital increase                          300
(b) Capital increase reserved for the French State         300
(c) Underwritten issue of Bonds Mandatorily Reimbursable
    with shares (ORA) with 5-year maturity:                900*


New financing
Subordinated Loans, with 6-year maturity:                1 300
                                                         2 800

* may be increased up to EUR1 billion

Existing shareholders will be offered preferential rights to subscribe to
the underwritten capital increase and the bonds mandatorily reimbursable
with shares.

In addition, a syndicate of banks will provide a contract bonds and
guarantees facility of EUR3,500 million, counter-guaranteed in part by the
French State, to support ALSTOM's commercial activity.  The agreement also
provides EUR600 million of additional short-term facilities.

This financial package will be integrated in the ALSTOM's business plan and
is subject to shareholder approval at an Extraordinary General Meeting,
which will be held on September 24 (date of the probable second call).  The
French State will notify the European Commission of the measures it has
taken.

Commenting on ALSTOM's current situation and the agreement, Mr. Kron,
Chairman & CEO, stated: "This agreement is a major step forward in the
implementation of ALSTOM's plan announced in March of this year.  It
represents a considerable and exceptional effort of our shareholders, banks
and the French State and clearly demonstrates their confidence in the future
of the Group.  This Agreement will serve to ensure customer and investor
confidence in ALSTOM's long-term future and permits ALSTOM to look forward
with renewed confidence and vigor.  ALSTOM still faces considerable
challenges to deliver adequate and reliable profits and cash generation: the
severe downturn in the power and marine markets, the implementation of the
necessary strong restructuring and cost reduction programs, improved control
of risks on large projects.  The financing package announced [Wednes]day
gives us the foundation on which to re-build."


I) DETAILS OF THE FINANCING PACKAGE

Capital Increase

The EUR600 million capital increase approved at the AGM on July 2, 2003 will
be re-submitted for approval at an Extraordinary General Meeting as:

(a) EUR300 million capital increase carried out either with preferential
subscription rights for existing shareholders or through the issuance of
warrants to existing shareholders, fully underwritten by a syndicate of
banks.

(b) EUR300 million capital increase reserved for the French State.
Following the capital increases, the French State will hold 31.5% of
ALSTOM's shares and voting rights, with a commitment not to sell the
acquired shareholding until the Group's full recovery.

The subscription price will be EUR1.25 per share.

Bonds Mandatorily Reimbursable with shares

In parallel with the capital increase, ALSTOM will issue EUR900 million in
bonds mandatorily reimbursable with shares (obligations reimbursable en
actions) fully underwritten by a syndicate of banks, which may be increased
up to EUR1 billion.  Existing shareholders will have preferential rights to
subscribe to such bonds. The principal terms of the bonds are:

           Coupon: 2%, capitalized for the first year.
           1 bond will be mandatorily reimbursed with 1 share.
           Issuance price EUR1.40 per bond.
           Maturity: December 31, 2008.

Subordinated loans

ALSTOM will be provided with a total of EUR1,300 million in subordinated
loans.  The French State has agreed to participate in EUR200 million of the
total amount.  The principal terms of the loans are:

           Interest rate per annum: Euribor + 450 bps.
           Maturity: 6 years.
           Early repayment allowed at ALSTOM's option.


Debt repayment

The bonds mandatorily reimbursable with shares and the subordinated loans
will be partly used by ALSTOM to repay the EUR550 million of outstanding
bonds maturing in February 2004 and the EUR1,250 million revolving credit
facility maturing in April 2004.

Bonds and Guarantees

A EUR3,500 million contract bonds and guarantees facility will be
underwritten by a syndicate of banks.  65% of each bond will be
counter-guaranteed by the French State.

Short-term facility

Pending receipt of proceeds from the financing package, short-term liquidity
will be assured by the banks for EUR300 million and the Caisse des Depots et
Consignations for EUR300 million.  These short-term facilities will remain
available until receipt of the proceeds from the disposal of ALSTOM's T&D
Sector.

Disposal of T&D Sector

It is envisaged, on the basis of Areva's offer dated 1 July 2003, to
conclude a binding agreement by September 15, subject to normal closing
conditions and anti-trust approvals.

Advisors

Lehman Brothers acted as ALSTOM's sole advisor. Merrill Lynch acted as sole
advisor of the French State.

II) BUSINESS UPDATE

Good progress is being made in the operational aspects of our action plan.
Recent field trials on the first fully modified GT24 and GT26 gas turbines
have shown performance results above expectations and these modifications
are now being deployed across the fleet.  The restructuring program has been
initiated in full consultation with the European Works Forum.

The difficult economic and market environment referred to in previous
trading statements continues to prevail.  In addition, following the
discovery of accounting irregularities on one contract at the Hornell, USA
Transport Unit, announced on 30 June 2003, a review of all projects managed
by this unit has now been undertaken.  This has identified the need for
additional provisions on certain other contracts, which is expected to
reduce first half 2003/04 operating income by around EUR100 million.  An
operating margin of around 2% is now expected for the first half of
financial year 2003/04.  The 6% margin target for 2005/06 is maintained,
supported by ALSTOM's extensive cost reduction plans and the development of
higher margin businesses such as service.

                     *****

The Group has requested the Paris, London and New York stock exchanges to
resume trading in its shares from 11.30 a.m. CET on Wednesday

CONTACT:  ALSTOM SA
          E. Chatelain, Investor Relations
          Phone: +33 1 47 55 25 33
          E-mail: investor.relations@chq.alstom.com


ALSTOM SA: Refinancing to Bring Relief, But Concerns Persist
------------------------------------------------------------
Fitch Ratings, the international rating agency, says that Alstom SA's EUR6.3
billion refinancing package announced on Wednesday, of which the French
government will contribute EUR2.8 billion, will provide some relief for the
group in the short-term.  However, concerns persist over the group's
longer-term financing requirements, its EUR650 million bond maturing in July
2006 and the strength of its remaining businesses.

Under the proposed package the group will proceed with the EUR600 million
capital increase approved at the AGM on July 2, 2003, but which will be
resubmitted for approval at the Extraordinary General Meeting on September
24, 2003.  Of the capital increase, EUR300 million will have preferential
rights or warrants for existing shareholders and will be fully underwritten
by a syndicate of banks, and the balance will be taken up by the French
state.  Following this capital increase the French state will own 31.5% of
the group's shares and voting rights, with Alstom's current market
capitalization at roughly EUR850 million.  The government has also agreed
not to sell its stake until the group has recovered, hence supporting Alstom
for an unknown time period.  Proceeds from this capital increase are likely
to be used for the repayment of the group's outstanding bridge facility of
EUR140 million maturing in December 2003, as well as the EUR400 million
syndicated and EUR75 million bilateral facilities, which mature in January
2004.

In conjunction with this capital increase the group will issue EUR900
million of mandatorily convertible bonds (ORAs) with a maturity in December
2008.  The capital increase may be raised to EUR1 billion, and will be fully
underwritten by a syndicate of banks.

The remaining EUR1.3 billion will be provided to Alstom by banks in the form
of subordinated loans with a six-year maturity, of which the French state
has agreed to purchase EUR200 million.  The margin on the loan consisting of
cash and a payment-in-kind is reflective of the distressed nature of the
group, and the cross-over characteristics of the group.  Fitch notes that
early repayment of the loan is allowed at Alstom's option but considers that
the probability of this happening is low.

The proceeds raised from the convertible bonds and subordinated loans
totaling EUR2.2 billion will largely be used to repay its EUR550 million
bond maturing in February 2004 and the EUR1.25 billion revolving credit
facility maturing in April 2004.  This will provide some comfort to the bond
investors and participating banks.  The balance of EUR400 million will be
used for working capital purposes.  Prior to the repayment of any existing
debt in FY03 and FY04 the group's total and net debt will increase to around
EUR8.5 billion (EUR6.3 billion at FYE03) and EUR6.7 billion (4.5 billion at
FYE03) respectively.  However, concerns remain over Alstom's weak cash
generation, given the negative EBITDA of EUR615 million it reported for
FYE03 (positive: EUR787 million at FYE02).

EUR3.5 billion of performance bonds and guarantees will be underwritten by a
syndicate of banks.  This represents roughly a third of the group's total
off-balance sheet contract guarantees at FYE03.  The French state will
counter-guarantee 65% of each bond, with the government's total exposure to
these facilities amounting to EUR2,275 million.  Performance bonds and
guarantees are standard practice for the industry, with companies providing
such facilities in return for cash advances on projects.

Fitch notes that this refinancing package is subject to shareholders
approval at the EGM in September 2003 and to EU investigation regarding
state aid issues.  The state aid issues are likely to encompass both the
French state's direct involvement in the refinancing package and Areva's, in
which the French state has a majority shareholding, offer to purchase the
group's transmission and distribution business for roughly EUR1 billion.
Management aims to conclude a binding agreement for the sale of this
division by 15 September 2003, the proceeds from which are crucial for the
remaining businesses.


ALSTOM SA: Shares Resume Trading on London Stock Exchange
---------------------------------------------------------
These securities has been restored to trading on the London Stock Exchange
from August 6, 2003 at 10:30 a.m. following the release of an announcement
on August 6, 2003 clarifying the company's financial position:

ALSTOM
           Ordinary Shares of EUR6 each
(0-438-775)(FR0000120198)
           fully paid

           United Kingdom Depositary Receipts
(0-290-384)(GB0002903846)
           fully paid
           (Each representing 1 Ordinary Share of EUR6 each)


This restoration notice follows the earlier Restoration to Official Listing
Notice issued by the Financial Services Authority.

If you have any queries relating to the above, please contact Issuer
Implementation at the London Stock Exchange on 020 7797 3545.


ALSTOM SA: Finance Ministry to Review France's Bankruptcy Law
-------------------------------------------------------------
The French government plans to review the country's bankruptcy law to
justify its involvement in the rescue of Alstom amidst threat of an
investigation by Brussels authorities.

French Finance Minister Francis Mer, who indicated he would undertake the
review, promised to pursue reform with the justice ministry, according to
the Financial Times.  The minister called France's provision of half of the
EUR600 million capital increase needed by the engineering group as "an
exceptional act in an exceptional situation."  The participation awarded the
state a 31.5% stake in Alstom and two seats on its board.

He will seek the reform to equip France with measures necessary to deal with
cases similar to Alstom.  It was found out that foreign banks were reluctant
to participate in the rescue of Alstom because France's bankruptcy laws
provide no protection for creditors.  Unlike that of U.S. Chapter 11, French
laws makes banks viable for all debts if they make new financing available
to a company whose viability is in doubt.

Meanwhile, Mr. Mer dismissed concern of serious objections from the European
Union Commissioner.  The report recalled him to have said "an understanding"
could be found with the competition authorities.


ALSTOM SA: Amicus Asks U.K. Government to Defend 2,000 Jobs
-----------------------------------------------------------
Labor group, Amicus, has called on the British government to change its
nonchalant attitude towards the possible loss of 2,000 jobs in the local
Alstom plants.  Accordingly, this indifference could also lead to the death
of the local train manufacturing industry.

Derek Simpson, Joint General Secretary of Amicus, said:
"While the French government decide whether to intervene to save French
manufacturing jobs, the U.K. government presides over our country's terminal
manufacturing decline.  The approach by the two governments couldn't be any
more different and the results are stark -- the French retain a healthy
manufacturing base while the U.K.'s is sacrificed in favor of our
government's 'flexible' approach to employment."

Joint General Secretary Roger Lyons said: "I am appealing to the British
government not to allow what remains of its' train building industry to
disappear.  The DTI must intervene in parallel to any action taken by the
French government.  Over 2,000 highly skilled and irreplaceable U.K. jobs
are at stake at Washwood Heath, Birmingham and Preston."


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


BASLER AG: Second Quarter Results Show Return to Profitability
--------------------------------------------------------------
Basler AG, a leading company in the field of vision technology, the
technology behind machine vision, swung to a profit in second quarter 2003
confirming its turnaround plan for the 2003 fiscal year.  Sales in second
quarter increased 5% to EUR8.5 million (Q2/2002: EUR8.1 million).

Sales also rose 28% to EUR14.8 million (1 HY 2002: EUR11.5 million) over the
first six months.  All the business divisions contributed to this revenue
growth, particularly the Vision Components division (high-performance
cameras for industrial applications).  In light of improved sales revenues
and optimized cost structures, net earnings in second quarter 2003 totaled
EUR62,000, compared to a loss of -EUR368,000 in the same quarter last year.
This marks the first time a modest profit was made since third quarter 2002.
In this first half year, the loss arising in part from the typical seasonal
factors in first quarter was reduced to -EUR801,000 (1st HY 2002: -EUR3.2
million).  The volume of new business continued progressing favorably.
Orders valued at EUR9.4 million were booked in second quarter - a slight
drop of only -3% from the exceptional year-earlier quarter (EUR9.7 million).
This means that new business in this first half year improved 11% to EUR17.6
million (1st HY 2002: EUR15.8 million).

This second quarter of 2003 and the overall first fiscal half simply
reconfirm the Managing Board's plans to increase sales in 2003 to more than
EUR30 million (2002: EUR26.7 million) and post a profit for the full year
(2002: -EUR3.5 million).

The complete quarterly report is available for downloading at
http://www.baslerweb.com

Issuer's information/explanatory remarks concerning this
ad-hoc-announcement:

Basler Returns to Profit Zone

Both business divisions -- Vision Systems and Vision Components --
contributed to increased sales and improved earnings in both second quarter
and the first fiscal half of 2003.

The Vision Systems division posted sales revenues of EUR5.7 million
(Q2/2002: EUR5.5 million, +4%) in second quarter 2003.  This improvement is
attributable primarily to the continuing high demand for DVD inspection
systems from its Optical Media Inspection unit.  Vision Systems generated
sales for this first half-year totaling EUR9.6 million (1st HY 2002: EUR7.4
million,
+30%) and even improved its volume of new orders.  Vision Systems booked
orders totaling EUR6.5 million in second quarter -- a slight drop of -8%
compared to the same quarter a year ago (EUR7.0 million).  This slip is due
mostly to the effects that cut-off dates have when making year-on-year
comparisons.  These will balance themselves out in the course of this third
quarter in comparison to the prior year.  Vision Systems had net earnings in
second quarter 2003 of EUR274,000, a figure that was much better than that
of the same quarter last year (Q2/2002: -EUR216,000, +227%).  This allowed
the loss for the first half of
2003 to be reduced to -EUR658,000, which was significantly lower than the
year-earlier loss (1st HY 2002: -EUR2.4 million, +73%).

The Vision Components business division (high-performance digital cameras
for industrial applications) continues to evolve and grow extremely well.
In second quarter this division recorded sales revenues of EUR2.8 million,
or an improvement of 12% over the same quarter last year (Q2/2002: EUR2.5
million).

The division closed out this first half year of 2003 with sales of EUR5.2
million -- an increase of 26% over last year's first fiscal half (1st HY
2002: EUR4.1million).  Vision Components posted orders valued at EUR2.9
million in second quarter bringing its total for this first fiscal half to
EUR5.5 million.  This equates to an increase of 7% over the same quarter a
year ago (Q2/2002: EUR2.7 million) and a jump of 28% over the prior year's
first half (1st HY 2002: EUR4.3 million).  What made this solid sales
performance possible was a growing target market and the division having won
new market shares.  Net earnings for Vision Components in second quarter
2003 totaled EUR66,000, or just below that of the year-earlier quarter
(Q2/2002: EUR276,000, -76%).  First-half-year profits in 2003 increased to
282,000 euros, for a remarkable improvement over last year (1st HY
2002: -EUR153,000, +284%).

The liquidity situation remains stable.  Although cash and cash equivalents
diminished slightly by -EUR269,000 in the second quarter, they were still at
an adequate level of EUR899,000 as of June 30, 2003.  All together the
liquid assets in the first half of 2003 increased 41% or EUR526,000 over the
amount reported in the 2002 annual financial statements (EUR373,000).   In
June Basler signed an agreement with its banks and senior shareholders for
long-term financing of its planned organic growth.  The agreement runs until
the end of 2004 and includes both new lines of credit and provisions to
extend or increase existing shareholder loans.

The economic equity as of June 30, 2003 totaled EUR9.8 million (2002: EUR9.8
million, Q2/2002: EUR10.0 million) and includes shareholders' equity of
EUR3.3 million (2002: EUR4.1 million, Q2/2002: EUR5.9 million), subordinated
shareholder loans (EUR5.0 million, 2002: EUR4.1 million, Q2/2002: EUR4.1
million), as well as a dormant holding and its related long-term loans
(EUR1.5 million, 2002: EUR1.5 million, Q2/2002: EUR0.0 million
).  This corresponds to an economic capital ratio of 58% (2002: 60%,
Q2/2002: 55%).

The total number of employees as of the reporting date was 258, which is
slightly higher than the staffing strength of the same quarter a year ago
(Q2/2002: 256, +1%).

Basler AG develops, produces and markets vision technology -- the technology
behind machine vision -- worldwide.  Our quality-assurance systems and
vision components are superbly tailored to meet client application needs.
They are the preferred systems for use in industrial production processes,
where they help optimize the effectiveness and operating efficiency of
automated manufacturing.

The CD/DVD, rubber, elastomer, flatscreen-display and foil-products
industries form Basler AG's principle target markets.  The company also
serves industry with a range of high-performance, branch-configured
component products like cameras.

CONTACT:  BASLER AG
          Christian Hock,
          Phone: +49(0)4102-463175
          E-mail: christian.hoeck@baslerweb.com
          Home Page: http://www.baslerweb.com


COMMERZBANK AG: First-half Results up 56% this Year
---------------------------------------------------
In the first half of 2003, the Commerzbank Group achieved an operating
profit of EUR366 million, 56% stronger than the corresponding year-ago
result.  The second quarter confirmed the turnaround at the start of the
year; at EUR194 million, the operating profit was again higher than in the
first quarter, climbing by almost 13%.  As no more restructuring expenses
had to be borne, the consolidated profit improved -- despite considerably
higher taxes on income -- from EUR3 million in the first quarter to EUR70
million.

While net interest income recovered further and net commission income was
barely changed, the bank was able to raise its trading profit again in the
second quarter to EUR278 million.  For prudential reasons, provisioning was
increased to EUR303 million.  The reduction of operating expenses continues
to proceed fully according to plan.

In view of these figures, the management board confirm in the interim report
that the bank will be back in the black in 2003 as a whole and will be able
to lay the foundations for a sustained upward trend.

Issuer's information/explanatory remarks concerning this
ad-hoc-announcement:

Selected income statement items (in million euros):

                          1st half   1st half     2Q     1Q
                             2003       2002     2003
Net interest income        1,451       1,734     746    705
Provision for               (555)       (562)   (303)  (252)
possible loan losses
Net commission income      1,036       1,129     516    520
Trading profit               509         417     278    231
Net result on investments/
securities portfolio         159         152      54    105
Operating expenses         2,320       2,706   1,141  1,179
Operating profit             366         235     194    172
Regular amortization of
Goodwill                      60          57      30     30
Profit from ordinary
Activities                   306         178     164    142
Restructuring expenses       104          -        -    104
Pre-tax profit               202         178     164     38
Taxes on income               80          58      78      2
Consolidated profit           73          74      70      3

Minus figures appear in parentheses.

The complete interim report is available on the internet at
http://www.commerzbank.de/aktionaere/konzern/index.html


LOEWE AG: Warns Full-year Results Could be in Red
-------------------------------------------------
In the first half of 2003, the 25% decline in sales to EUR132 million led to
a negative EBIT of EUR9.2 million.  The noticeable consumer buying restraint
for consumer electronics products has intensified in the high-end and high
price segment in particular and will probably not revive significantly by
yearend.

Against this backdrop, the previous objective of achieving sales at the
previous year's level and EBIT above EUR10 million is no longer realistic.

Despite the positive stimuli still expected from the International Consumer
Electronics Fair, the introduction of attractive new products and an
extensive cost-cutting program, it appears from the present perspective that
sales in fiscal year 2003 will be under the previous year's value so that a
positive EBIT will probably not be achieved.

CONTACTS:  LOEWE AG
           Investor Relations
           Peter Staab
           Phone: +49 (0)9261 / 99-771
           Fax: +49 (0)9261 / 99-994
           Cell phone: (0)170 / 766 72 12
           E-mail: ir@loewe.de

           Public Relations
           Dr. Roland Raithel
           Phone: +49 (0)9261 / 99-217
                  +49 (0)9261 / 99-444
                  (0)171 / 200 54 76
           E-mail: roland.raithel@loewe.de


WESTLB AG: Increases Risk Provisions to EUR615.2 Million
--------------------------------------------------------
"My aim is to put WestLB on a stable footing again.  The risk provisions
charged against the first half result are a first step in this direction.  I
will not shy away from taking further tough measures should they become
necessary.  2003 must form the basis for a new direction of the Bank,
without the burdens of the past," said Dr. Johannes Ringel, Chairman of the
Managing Board of WestLB AG, on the occasion of the presentation of the
half-year results for the Banking Group.

Despite a good operating result, WestLB AG reported a loss for the first six
months of this year.  The operating result before risk provisions/result of
evaluation rose by EUR313.9 million to EUR480.4 million (+188.5%) on a
mark-to-market basis.  Risk provisions amounted to EUR615.2 million.  This
figure for the first half includes provisions for all currently known credit
risks for the full year, resulting in a loss of EUR195.6 million on a
mark-to-market basis and EUR359 million according to the German Commercial
Code (HGB).  The mark-to-market valuation, which conforms to International
Accounting Standards and represents common international practice, discloses
unrealized market value reserves in the net income from trading operations.
In the first six months of the year, the market value reserves amounted to
EUR163.4 million.  In addition, the Bank has further substantial market
value reserves in the trading portfolios.  WestLB continues to report
according to German Commercial Code, but plans to switch over to
International Accounting Standards reporting in 2005.

The provisions for loan losses of EUR526 million cover all currently known
credit risks.  They also include additional risk provisions for BoxClever,
which take full account of the requirements of the German Financial
Supervisory Authority (BaFin).  The risk result/result of evaluation of
securities and equity holdings amounts to roughly EUR89 million and does not
include risk provisioning expenses for market price risks in the industrial
holdings portfolio.  A decision on whether further write-downs will be
necessary will depend on how the capital markets perform in the next six
months.

Good Operating Result

In the first six months of the year, WestLB reported a result before risk
provisions/result of evaluation of EUR480.4 million on a mark-to-market
basis, which is equivalent to EUR317.0 million in HGB terms.  This
represents an increase of 188.5% (mark-to-market) and 49.7% (German
Commercial Code) on the same period of the previous year.  The result was
once again driven primarily by net interest income, which rose sharply by
26.1% to EUR968.3 million (2002: EUR767.8 million), mainly due to higher
income from money market transactions.  Net commission income declined from
EUR343.2 million to EUR275.2 million and net income from trading operations
from EUR63.4 million to EUR41.9 million.  The sharp increase in the
operating result was also attributable in large measure to the planned cost
reduction of EUR118 million.  Total cost reductions of approximately EUR200
million have been targeted for the full year.  Following the EUR340 million
in cost cuts in 2002, this means that costs will have been reduced by
approximately EUR540 million within a 2-year period.  The sustained
improvement in the cost base has enhanced the Bank's structural
profitability and therefore its capacity to absorb risk.

Personnel expenses declined from EUR599.6 million to EUR497.8 million (-
17%).  At June 30, 2003, the total number of full-time employees in the
Banking Group was down by 1,022 (-12%) on the figure for June 30, 2002.  In
the context of the restructuring program initiated in 2002, headcount is to
be reduced to 7,100 by the end of this year (excluding WestImmobank).
Further staff reductions in Germany and abroad are planned in the context of
the strategic reorientation of the Bank, which is currently at the
development stage.  Following the strong decline last year, operating
expenses fell to EUR510.3 million, a drop of 3.1%.  The Bank intends to tap
additional cost-saving potential in the second half of the year through
increased standardization and outsourcing of certain IT services.  The
respective measures have been initiated.

Dr. Ringel: "I am satisfied with the revenue situation, particularly as it
shows that we are able to hold our ground even in this difficult economic
environment.  I am therefore optimistic that the Bank will report a clearly
improved operating result for the full year.  Nevertheless, the result for
the year as a whole will greatly depend on the development in the capital
markets, even though we will see a significant improvement on the cost
front."

The total assets of the WestLB Banking Group rose by 11% from EUR264.1
billion at December 31, 2002 to EUR293.0 billion, while the business volume
increased by 4.9% to EUR414.2 billion (2002: EUR395.0 billion).  Claims on
customers rose by 7.1% to EUR96.3 billion and claims on banks by 19.5% to
EUR92.1 billion.  Securities/equalization claims fell slightly by 3.8% to
EUR69.5 billion.  On the liabilities side, liabilities to customers rose by
43.5% to EUR96.8 billion and liabilities to banks by 3.6% to EUR121.4
billion.  Certificated liabilities declined by 6.8% to EUR50.6 billion.

Internal Risk Management Strengthened

Since taking office, Dr. Ringel has stepped up efforts to further improve
the Bank's risk management system, including the initiation of the measures:

(a) sale of credit receivables as regular policy

(b) refinement of internal rating processes

(c) reduction of major risk concentrations and country risks together with
differentiated and timely limit management

(d) external review of model-driven transactions (e.g. in leveraged finance
transactions)
(e) significant reduction of country risks.

Strategy Development Making Good Progress

At its meeting on August 6, 2003, the Managing Board submitted to the
Supervisory Board a comprehensive interim report on the future strategic
orientation of WestLB for the period after the elimination of institutional
liability and guarantor liability in mid-2005.  The Supervisory Board had
already approved the proposed cornerstones of the new strategy at its
meeting on July 2, 2003.  These envisage a three-pillar structure for WestLB
as an international commercial bank and a competence center for small and
medium-sized companies and the savings banks. The detailed strategy will be
presented to the Supervisory Board at its meeting on September 16, 2003.
Dr. Ringel: "With the new strategy we will present a convincing business
model which builds on our strengths in, for example, the structuring of
capital market products, and makes them attractive to medium-sized corporate
clients and the savings banks.  This will enable us to broaden our customer
base and generate additional business potential for the savings banks and
WestLB.  This can only succeed, however, if WestLB as an organization
actively embraces change and does not lose sight of its ambitious
medium-term objective to secure access to the capital market.  The
comprehensive elimination of risks in 2003 and the further development of
our business strategy will ensure that we have a good chance of quickly
regaining our former strength.  The foundations for this have now been
laid."

To See Income Statement: http://bankrupt.com/misc/WestLB_Income.htm

To See Balance Sheet:
http://bankrupt.com/misc/WestLB_Balance_Sheet.pdf


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


AER LINGUS: 2003 First Half Results Show Continuing Progress
------------------------------------------------------------
Aer Lingus announced this week an operating profit of EUR14.3 million for
the first half of 2003 against an operating loss of EUR12.6 million for the
same period last year and an operating loss of EUR38.1 million for the first
half of 2001.

Turnover at EUR414.1 million was down 8.6% from EUR453.1 million for the
first half of 2002 driven by the continuing reduction in fares.

However, costs were also down significantly at EUR399.8 million, a 14.2%
reduction compared with EUR465.7 million in the first half of 2002 and a 30%
reduction compared to EUR571.1 million in 2001.  This represents the
airline's continuing relentless campaign to drive out cost and pass on the
savings to the customer in the form of lower fares.

The low fares strategy sustained by a much lower cost base has led to a
significantly higher passenger load factor at 80% for the first half of 2003
compared with 73% for the same period last year and 69% in the first six
months of 2001.

EBITDAR at EUR59.6 million compares with EUR42.1 million for the first half
of 2002 and EUR26.9 million for the first six months of 2001.

Commenting on these results, Chief Executive Willie Walsh said; "We continue
to make good progress towards the goal of transforming Aer Lingus into a low
fares airline delivering a quality service.  The strategy is working with
our customers benefiting from significantly lower fares, 16 new routes
offering enhanced direct access into and out of Ireland and growing usage
and international success of our website aerlingus.com.  The result is
improved profitability in the first half of 2003 against a tough background
including the war in Iraq and the SARS scare. We remain on track to achieve
our full-year forecast outcome."

Looking at the broader market Willie Walsh said: "We are excited by the
opportunities opening up in the Irish air travel market. Independent
airports at Cork, Dublin and Shannon represent great growth potential and we
are poised to take advantage of the impending change in the Ireland/U.S.
bilateral which will open up new US gateways for Aer Lingus."

However, Willie Walsh warned that Aer Lingus would not become complacent:
"We will continue until the process of transformation in Aer Lingus is
complete.  There are many challenges ahead -- we must further improve
profitability, continue to reduce costs, add new routes and continue to
lower our fares.  The progress we have made will act as a spur to further
change."

Results for the half year ended 30 June 2003

               2003     2002     2001    2003 v     2003 v
               EURm       EURm       EURm      2002       2001
Turnover - Continuing
Operations   414.1     453.1    533     -8.6%      -22.3%

Operating Costs 399.8   465.7    571.1  -14.2%        -30%

Operating Profit (Loss)
- Continuing Operations (1)
               14.3     -12.6    -38.1    n/a         n/a

Operating Profit (Loss) %
                3.5%     -2.8%    -7.1%  +6.3 points  +10.6 points

EBITDAR - Continuing Operations (2)
               59.6      42.1     26.9   41.6%        121.6%

Passenger Load Factor %
                80%       73%      69%    +7 points    +11 points

(1) Operating profit on continuing operations before employee participation.

(2) Earnings before employee participation, interest, tax, depreciation,
amortization and aircraft rentals.


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


CIRIO FINANZIARIA: 'Receivers' to be Known Over the Weekend
-----------------------------------------------------------
Commissioners for the Prodi Bis procedure for Cirio Finanziaria, the Italian
canned goods maker that recently appointed liquidators, may likely be
nominated on today, Agenzia Geornalistica Italia said.

According to the report, the Rome Court Bankruptcy sector will examine the
admission requests for the special administration procedures presented by
Cirio Del Monte Italia SpA, Cirio Finanziaria and Cirio Holding.  Afterwards
the Court will contact the Minister of Productive Activities for the further
examination of the requests.

The Ministry has 24 hours to decide who will be appointed.  The ones chosen
will have to prepare a report for the restructuring or the bankruptcy of the
company within 30 days.

A restructuring could give Cirio 12 month of special administration for
industrial recovery and 24 months financially.  Cirio may extend the
administration up to 3 months.

If a special administration is decided, the court will send the report of
the judiciary commissioners to the ministry which will then choose the
special commissioners, who are generally those who acted as judiciary ones.

Cirio was put into liquidation after it failed to convince bondholders to
accept a recovery plan put forward by the group's advisors, which involved a
debt-for-equity swap that could effectively wipe off up to 80% of the value
of their bonds.

The company was unable to repay ungraded bonds totaling EUR1.1 billion in
November, forcing it to seek new financing from creditor banks.


===================
L U X E M B O U R G
===================


MILLICOM INTERNATIONAL: Posts 29% Increase in 2nd Quarter EBITDA
----------------------------------------------------------------
Millicom International Cellular SA:

Highlights of Results for the Quarter Ended June 30, 2003:

(a) 29% increase in EBITDA to US$73.4 million (Q2 02: US$56.8
    million)*

(b) 13% increase in revenue to US$143.9 million (Q2 02: US$127.8
    million)*

(c) 98% increase in quarterly EBITDA in Africa from Q2 2002*

(d) 38% increase in quarterly EBITDA in Asia from Q2 2002*

(e) 41% reduction in interest expense for the 6 months to June
    30, 2003

(f) EBITDA Margin of 51%*

Millicom International Cellular SA (Nasdaq:MICC), the global
telecommunications investor, announces results for the quarter ended June
30, 2003.  Financial summary for the quarters ended June 30, 2003 and 2002


                                 June 30,    June 30,     Change
                                   2003        2002
Worldwide subscribers (i) *
-    proportional cellular      3,083,955   2,472,960     25%
-    gross cellular             4,471,835   3,483,573     28%
USUS$ '000
Revenues*                         143,862     127,750     13%

Operating profit before
  depreciation and                  73,403      56,763     29%
  amortization, EBITDA(ii)*

EBITDA margin*                        51%         44%       -

Profit before financing, taxes
  and other                        103,821      55,566       -
income
Profit (loss) for the quarter     176,035    (14,038)       -
Basic and diluted earnings (loss) per                       -
common share (USUS$)                10.81      (0.86)
Weighted average number of shares and
  diluted potential shares (thousands)  16,284      16,305

(i) Subscriber figures represent the worldwide total number of
     subscribers of cellular systems in which Millicom
     International Cellular has an ownership interest.
     Subscriber figures do not include divested operations or
     the subscribers of Tele2 AB, in which Millicom
     International Cellular has a 6.0% interest at August
     6,2003.

(ii) EBITDA; operating profit before interest, taxation,
     depreciation and amortization, is derived by deducting cost
     of revenues, sales and marketing costs, and general and
     administrative costs from revenues.

* Due to local issues in El Salvador, Millicom International Cellular has
discontinued consolidating El Salvador on a proportional basis with effect
from May 2001.  All comparatives in this press release, other than those
noted in the appendices, exclude divested operations and El Salvador in
respect to subscribers and for financial results, up to and including
EBITDA.

Marc Beuls, Millicom International Cellular's President and Chief Executive
Officer stated: "The second quarter of 2003 has been positive for Millicom
International Cellular and I am pleased to report a 29% increase in EBITDA
for the quarter from the same period in 2002, the highest increase for over
two years.  Millicom International Cellular Africa was the best performer in
terms of EBITDA, producing growth of 98%, which is a record result
representing a turnaround for the region.  Group revenues increased by 13%
from the second quarter of 2002 and the EBITDA margin rose to 51%,
evidencing the benefit of our recent cost cutting exercise and the renewed
focus on our core businesses.

Millicom has taken several steps in the first half of 2003 to reduce total
net debt on the balance sheet and at June 30, 2003, this figure stood at
US$875.1 million, a 35% reduction from the same time last year, and interest
payments are now 41% lower.  These and subsequent initiatives to retire
high-yield debt will result in an increase in free cash flow going forward,
allowing MIC to grow its mobile businesses faster and deliver increased
value to shareholders."

FINANCIAL AND OPERATING SUMMARY

Subscriber growth:

OE An annual increase in worldwide gross cellular subscribers of 28%to
4,471,835 as at June 30, 2003

OE An annual increase in worldwide proportional cellular subscribers of 25%
to 3,083,955 as at June 30, 2003

OE In the second quarter of 2003 Millicom International Cellular added
223,121 net new grosscellular subscribers

OE An annual increase in proportional prepaid subscribers of 31% to2,764,099
as at June 30, 2003

Financial highlights:

OE Revenue for the second quarter of 2003 was US$143.9 million, an increase
of 13% from the second quarter of 2002

OE EBITDA increased by 29% in the second quarter of 2003 to US$73.4million,
from US$56.8 million for the second quarter of 2002

OE The Group EBITDA margin was 51% in the second quarter of 2003increasing
from 44% in the second quarter of 2002

(a) Total cellular minutes increased by 32% for the three months
    ended June 30, 2003 from the same quarter in 2002, with
    prepaid minutes increasing by 62% in the same period

(b) In April 2003 MIC launched GSM services in the Lao People's
    Democratic Republic (Laos) under the Tango brand name.

(c) On May 5, 2003 MIC announced that approximately US$781
    million or 85%of the outstanding amount of Millicom's 13-
    1/2% Senior Subordinated discount Notes due 2006 or the "Old
    Notes" had been tendered in Millicom's private exchange
    offer and consented to certain amendments to the existing
    indenture covering the Old Notes.

(d) Upon closing of the exchange offer on May 7, 2003, Millicom
    issued approximately US$562 million of Millicom's 11% Senior
    Notes due 2006 and approximately US$64 million of Millicom's
    2% Senior Convertible PIK(payment in kind) Notes due 2006 in
    exchange for the US$781 million of Old Notes tendered.  In
    addition Millicom also paid to holders of Old Notes, who
    consented to the amendments of the Old Notes indenture,
    US$50 perUS$1,000 of Old Notes so consenting (excluding
    affiliates of Millicom) or approximately US$38 million in
    the aggregate.  Millicom's 2% Senior Convertible PIK Notes
    due 2006 are convertible into Millicom common stock at a
    conversion price of US$10.75 per share.  If the original
    principal amount of approximately US$64 million of the new
    2% Senior Convertible Notes were converted into Millicom's
    common stock, the 2%Notes would convert into approximately
    5.93 million shares of Millicom's common stock (which, when
    issued, would constitute approximately 26.7%of the then
    issued and outstanding common stock).

(e) As at June 30, 2003, Millicom International Cellular reports
    total net debt, after cash and time deposits, of US$875.1
    million, a reduction of 23% compared with total net debt of
    US$1,141.9 million as at December 31, 2002, and a reduction
    of 35% compared with total net debt of US$1,356.1 million as
    at June 30,2002.  Of this debt, US$49.7 million is in
    respect of PIK Notes convertible at any time into MIC shares
    at a price of US$10.75.

(f) In the second quarter of 2003, Millicom International
    Cellular sold 1,000,000 B shares in Tele2AB realizing a gain
    of US$2.0 million.

Subsequent events:

OE On July 18, 2003 MIC launched a mandatory exchangeable bond offering of
approximately SEK 2,556 million (US$310 million).  The bonds will be
convertible into MIC's total current holding of 8,968,400 Tele2AB Series B
shares.  The bonds, which will mature in August 2006, carry a coupon of 5%
and the exchange premium has been set at 30% with a reference price of SEK
285.

REVIEW OF OPERATIONS

SUBSCRIBER GROWTH*

At June 30, 2003 Millicom International Cellular's worldwide gross cellular
subscriber base increased by 28% to 4,471,835 cellular subscribers, from
3,483,573 as at June 30, 2002.  Particularly significant percentage
increases were recorded in Cambodia, Vietnam, Ghana, and Senegal.

Millicom International Cellular's proportional cellular subscriber base
increased by 25% to 3,083,955 at June 30, 2003, from 2,472,960 at June 30,
2002.

Within the 3,083,955 proportional cellular subscribers reported at the end
of the second quarter 2003, 2,764,099 were pre-paid customers, representing
a 31% increase on the 2,110,002 proportional prepaid subscribers recorded at
the end of June 2002.  Pre-paid subscribers currently represent 90% of gross
reported proportional cellular subscribers.

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2003*

Total revenues for the three months ended June 30, 2003 were US$143.9
million, an increase of 13% from the second quarter of 2002.  This increase,
following two successive quarters with growth of 11%, reflect the increasing
trend of growth in Millicom International Cellular's operations.  Millicom
International Cellular recorded revenue growth in Asia of 24% in the second
quarter of 2003 compared with the same period in 2002, with Pakcom in
Pakistan producing growth of 38%, and revenues for Africa for the second
quarter of 2003, increased by 30% to US$18.5 million from the same period
last year.

Second quarter revenues for Latin America decreased by just over 2% from the
second quarter of 2002 as a result of currency devaluations in South America
in the second half of 2002, although the Central American market continued
to perform strongly with Guatemala producing a revenue increase of 17% from
the second quarter of 2002.  Against the first quarter of 2003, revenues in
Latin America increased by over 2% reflecting increased stabilization in the
region.

EBITDA for the three months ended June 30, 2003 was US$73.4 million, an
increase of 29% from the quarter ended June 30, 2002.  EBITDA for Asia
increased by 38% from the second quarter of 2002 to US$38.2 million, with a
particularly strong increase produced by Cambodia, which recorded growth
from the second quarter of 2002 of 164%.  The strong EBITDA growth in the
region as a whole reflects the buoyancy of this market and the impact of
stringent cost cutting measures.  Millicom International Cellular Africa
produced impressive EBITDA growth of 98% from the second quarter of 2002 to
US$8.3 million, a record for the region.  The EBITDA margin in Africa
increased from 30% in the second quarter of 2002 to 45% in 2003.

The positive impact of cost cutting in Latin America was reflected in the
EBITDA for the region, which increased by 7% from the second quarter of 2002
to US$26 million, with margins increasing from 43% to 48%.  The main
contributors to EBITDA increase were Guatemala and Honduras, which recorded
increases of 36% and 16% respectively from the second quarter of 2002.
Against the first quarter of 2003, EBITDA in Latin America increased by over
4%.

As a result of the debt exchange in May 2003, Millicom International
Cellular recorded a book gain of US$97.1 million.

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2003*

Total revenues for the first half of 2003 were US$282.6 million with
revenues for Asia and Africa increasing by 24% and 28% to US$131.7 million
and US$36.5 million respectively, relative to the first half of 2002.
Revenues for Latin America for the first half of the year decreased by 4% to
US$107.9 million, due significantly to currency devaluations and an economic
slow-down in South America.

EBITDA for the first half of 2003 was US$142.4 million, an increase of 25%
over the first half of 2002.  Most notably Africa recorded a 67% increase in
EBITDA for the six months ended June 30, 2003.  The respective increases for
Asia and Latin America were 36% and 4%.  The EBITDA margin for the six
months to June 30, 2003 was 50%, an increase over the 45% recorded for the
same period in 2002, with a notable increase from 32% to 42% in Africa.

Total cellular minutes increased by 31% for the first half of 2003 compared
with the same period in 2002.

In the first six months of 2003, Millicom International Cellular reduced its
interest expense by 41% to US$55.7 million from US$94.1 million as at June
30, 2002 as a result of debt restructuring and the divestment of certain
highly leveraged operations.

In the first half of 2003, the market value of Millicom International
Cellular's holding in Tele2 AB has increased by US$99.9 million.

During the second quarter of 2003, Millicom International Cellular cancelled
the circular stock that had previously been disclosed as treasury stock in
equity.

CORPORATE LIQUIDITY AND DEBT INDICATORS


                                         At June 30, 2003

Cash at the corporate level         US$22.1 million
Cash upstreamed from operations     US$48.1 million
Toronto Dominion debt outstanding   US$60.2 million
13.5%                               US$136.4 million
11%                                 US$562.2 million
2%                                  US$49.7 million
Subsidiary debt                     US$155.2 million
Total Tele2 shares                  8,968,414

Millicom International Cellular S.A. is a global telecommunications investor
with cellular operations in Asia, Latin America and Africa.  It currently
has a total of 16 cellular operations and licenses in 15 countries.  The
Group's cellular operations have a combined population under license
(excluding Tele2) of approximately 382 million people.  In addition,
Millicom provides high-speed wireless data services in five countries.
Millicom also has a 6.0% interest in Tele2 AB, the leading alternative
pan-European telecommunications company offering fixed and mobile telephony,
data network and Internet services to 18.7 million customers in 22
countries.  The Company's shares are traded on the Luxembourg Bourse and the
Nasdaq Stock Market under the symbol MICC.


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


NORSKE SKOG: Improvement Program Brings in NOK320 Million
---------------------------------------------------------
Improvement 2003 has contributed to NOK320 million.  However, Norske Skog's
result is still characterized by weak markets and low prices for publication
paper.  Operating earnings were slightly better in Q2 than in Q1 2003, if
gains from electricity trading are excluded.  Net earnings in Q2 were
negative NOK190 million, including a currency hedging loss of NOK148
million.  Operating revenue in the first half of 2003 is NOK11.4 billion,
while operating earnings are NOK685 million.  Pre-tax earnings are NOK100
million in the first half of 2003. A weaker Norwegian krone is positive to
Norske Skog's business.

(a) Improvements amounting to NOK320 million, show that we are on track
towards our goal of reaching NOK1 billion in improvements this year.  The
impact of already implemented initiatives will give further results in the
coming months.  The whole company has put forward a considerable effort,
which will enable us to reach our goal of NOK2 billion by 2004.  I am also
very pleased by the excellent results achieved from combined efforts in
health and safety, especially given this demanding period with workforce
reductions and change of work tasks, says President and CEO Jan Reinas.

Health and safety is always on top of the agenda in Norske Skog, and the
high priority is showing remarkable results.  In June 2003, the Company's
mills could point to the lowest H-value (lost time injuries) ever recorded.
The H-value the last 12 months was 3.1.  The favorable trend is the result
of systematic focusing on health and safety for many years.  The target for
2003 as a whole is an H-value of less than 3.

Financially, Norske Skog has a good position.  The equity ratio is 41.3% as
of 30.06.2003, and shareholder equity is higher than net interest-bearing
debt.  At the end of the first half 2003, the Company had approximately
NOK7.6 billion in liquid assets and unutilized drawing rights.

The market situation did not change essentially during Q2 compared to Q1.
Total deliveries of newsprint and magazine paper from Norske Skog
year-to-date is a little less than 2.6 million tons, an increase of 8%
compared to the same period in 2002, which suffered from very low deliveries
in Q1.  Seasonally higher volumes compared to Q1 2003 positively influenced
operating earnings in the quarter.

In Europe, operating revenue for newspaper declined by 5.5% in Q2 2003
compared to Q2 2002.  The reduction is mainly caused by lower sales prices.
The market for newsprint is still very weak, and demand is at the same level
as in the first half of 2002.  Operating revenue for magazine paper was on
the other hand 7.2% higher than 2002, mainly due to higher volumes.

In South America, operating revenue is up 12.5% compared to Q2 last year.
Operating earnings are also up.  The increase reflects favorable exchange
rates.  Terminating Norske Skog Klabin JV has also had a positive impact on
costs and margins.

Australasia has so far in 2003 developed well and demand has increased.
From July, 1 prices in Australia will be adjusted in accordance with
long-term contracts.  The new prices, in Australian dollars, will be about
4% lower than the price that has been in place since July last year.
Operating earnings in Australia are therefore expected to be weaker in
second half of 2003.

In PanAsia (50% owned by Norske Skog), operating revenue declined 17.7%
compared to Q2 2002.  This is primarily due to weaker demand in Korea.  In
addition, a competing mill in Korea had a lengthy strike last year, giving a
higher market share to PanAsia during that period.  Product prices in
several Asian markets have weakened, while raw material prices and energy
costs have increased.  Compared to Q2 2002, there is also a significant
negative exchange rate effect when results are converted to NOK.

NorskeCanada (30.6% owned by Norske Skog) saw its result negatively affected
by a stronger Canadian dollar compared to the American dollar.  The
newsprint market remains weak.  Newsprint prices increased during Q2, and an
additional increase this year has been announced.  The company is
implementing an improvement program, with the goal of cutting costs by CAD
100 million during 2003/2004.

The outlook does not indicate any significant near-term improvements in
newsprint and magazine paper markets.  Demand can be expected to increase
only when economic growth increases, primarily in North America and Europe.
Therefore, Norske Skog expects weak, but stable markets and will make plans
based on the assumption of low demand during the coming quarters, and keep
focusing on the Improvement program.

To See Financial Statements:
http://bankrupt.com/misc/Norske_Skog_2Q.pdf

CONTACT:  NORSKE SKOG
          Financial market: Vice President
          Jarle Langfjeran
          Phone: +47 67 59 93 38
          Mobile: +47 909 78 434


STOREBRAND BANK: Moody's Ups Financial Strength Rating to C-
------------------------------------------------------------
Moody's Investors Service upgraded the financial strength of Norwegian bank
Storebrand Bank from D+ to C-, reflecting the significant reorganization of
the bank over the past 18 months.  The outlook is stable.

The reorganization in the Oslo-based bank resulted to significant cost
savings and the implementation of a more cost-efficient business model.

Its merger with Finansbanken - expected to be completed in September - is
hoped to help the bank achieve break even by the end of the year.

Moody's views positively the progress of the merger, but it remains closely
observant about the bank's doubtful and risky exposures.

Storebrand Bank's Baa3/Prime-3 long- and short-term debt and deposit ratings
remain unchanged with a stable outlook.  The ratings, however, could be
reconsidered once the review for possible downgrade of the Baa3 rating of
Storebrand ASA (the group's holding company and Storebrand Bank's parent) is
concluded, Moody's said.

The bank had total assets of NOK27 billion (EUR3.7 billion) at the end of
March 2003.


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


BANK MILLENNIUM: To Submit Semi-annual Reports Ahead of Schedule
----------------------------------------------------------------
The Management Board of Bank Millennium SA informs that the reports:

(a) Semi-annual report of the Bank for the period from January 1, 2003 to
June 30, 2003, the disclosure date of which was previously set up for
September 4, 2003 and

(b) Consolidated semi-annual report of Bank Millennium Group for the period
from January 1, 2003 to June 30, 2003, the disclosure date of which was
previously set up for October 2, 2003 (current report of January 31, 2003)

will be published on August 14, 2003.

                     *****

Bank Millennium, formerly BIG Bank Gdanski, completed a restructuring
program, which includes job cuts, improvements in risk management
procedures, capital injection, and new product launches.  However, Fitch
says, "overall profitability at Bank Millennium remains fragile, distorted
in 2001 and 2002 by large one-off items."


ELEKTRIM SA: Appointment of Piotr Rymaszewski Causes Dispute
------------------------------------------------------------
A conflict has emerged in Elektrim S.A. over the appointment of Piotr
Rymaszewski as bondholder representative, Warsaw Business Journal reported,
citing Polish newspaper Puls Biznesu.

According to the report, Polsat Media, one of the major shareholders in
Elektrim, is opposed to Rymaszewski and that Zygmunt Solorz, owner of Polsat
and chairman of Elektrim's supervisory board, might suggest that bondholders
choose a new representative during the next supervisory board meeting
scheduled for August 18.

However, bonds trustee of Elektrim The Law Deventure Trust Corporation was
recently reported to have threatened the company that if it does not
reinstate Rymaszewski, it would violate the agreement on repaying PLN2
billion bonds.  Subsequently, immediate repayment of the bonds could be
demanded and Elektrim's assets seized.

Solorz and Rymaszewski declined to comment.  A bondholders' representative
was quoted, saying: "We are now waiting to see the company's official
statement in 30 days."

Headquartered in Warsaw, Poland, Elektrim remains one of the largest
companies in Central and Eastern Europe.  Since 1999, the company has
re-focused its operations on its key businesses of telecommunications and
power.


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


YUKOS OIL: Discloses Proposed Board Composition of YukosSibneft
---------------------------------------------------------------
YUKOS Oil Company on Wednesday announced that it has been informed that the
principal shareholders of OAO Sibneft and the principal shareholders of
YUKOS, as a part of the combination of Sibneft and YUKOS, have agreed on
certain policies for YukosSibneft following completion of the Transaction.

It has been agreed that the YukosSibneft board of directors will be elected
by cumulative voting; the chairman of YukosSibneft's board of directors will
be nominated by Sibneft's principal shareholders; and YUKOS' principal
shareholders will nominate the management of YukosSibneft.

In addition, YukosSibneft will not take certain major actions exceeding
specified thresholds without the consent of both YUKOS' principal
shareholders and Sibneft's principal shareholders, including among others,
the approval of strategic plans, asset sales or acquisitions, and borrowings
or guarantees for third-parties.  If such shareholders fail to agree on any
such actions, then the parties may appeal to an independent expert to
resolve their disagreement.

YUKOS' principal shareholders and Sibneft's principal shareholders currently
intend to procure that YukosSibneft would declare and pay quarterly and
year-end dividends of not less than 40% of net income calculated in
accordance with US GAAP.  YukosSibneft would not declare aggregate dividends
in respect of any financial year in excess of US$2.2 billion without
approval by the principal shareholders of YukosSibneft.

Except under limited circumstances, transfers of YukosSibneft shares by the
principal shareholders of either YUKOS or Sibneft would be subject to
certain restrictions, including among other things rights of first refusal,
tag-along rights and special restrictions applicable to transfers resulting
in a change of control.  YUKOS' principal shareholders and Sibneft's
principal shareholders have also agreed to procure that YukosSibneft grant
them preemptive rights to maintain their respective percentage interests in
connection with any new share issue.

The principal shareholders of YukosSibneft intend to implement the foregoing
policies, including through amendments to YukosSibneft's charter in the
manner required and to the extent permitted by Russian law.

CONTACT:  YUKOS OIL COMPANY
          Investor Relations
          Alexander Gladyshev
          Phone: (+7 095) 7880033
          E-mail: investors@yukos.ru


YUKOS OIL: Internet Technology Subsidiary Under Investigation
-------------------------------------------------------------
The state security forces have investigated Yukos' important Internet
technology subsidiary, Sibintek, Bluebull said citing a statement from the
troubled oil giant.

The Russian company did not disclose details of the probe, nor reveal the
forces involved, but it said the move is another attack against the company.

To recall, Yukos' key shareholder, Platon Lebedev, was detained early in
July on accusations of theft of state property during a privatization deal
in the 1990s.  A police commando afterwards made a search at the company's
archives -- an investigation it condemned as unlawful.

Separately, Yukos was also subjected a tax probe, a move the company
believes to have been part of efforts to discourage Yukos CEO Mihail
Hodorovskiy to involve in politics.


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


CENTERPULSE AG: Smith & Nephew Quits Bid Battle with Zimmer
-----------------------------------------------------------
Orthopaedic and woundcare group Smith & Nephew has refused to increase its
GBP1.5 billion offer for Swiss rival Centerpulse, effectively making U.S.
company Zimmer frontrunner in the race.

The Telegraph quoted Smith & Nephew chief executive Sir Chris O'Donnell
saying: "This was quite a tough decision to make, much tougher than just
carrying on...But that is what I get paid for and what the board are there
for."

Mr. O'Donnell said he felt that Zimmer, which made a GBP2 billion bid, is
"paying a pretty full price" for the orthopedic implants maker.

According to the report, the British company is entitled to break fees of
more than GBP9 million if Zimmer takes over Centerpulse.  The costs,
however, is already in the GBP18 million range.  It would still increase
even if the offer is pulled out because the Swiss, UK and US regulatory
authorities are already involved, the report says.

Smith & Nephew's pull out means it is abandoning plans to save GBP45 million
in costs a year by 2005.

Centerpulse, formerly Sulzer Medical, nearly collapsed under the weight of
lawsuits over faulty hip implants.


MOVENPICK GROUP: Attributes 1st-half Income to Asset Disposals
--------------------------------------------------------------
Proceeds from disposals enabled the Movenpick Group to report a consolidated
net income of CHF155.7 million in the first half of 2003.  This compares
with the -CHF13,0 million reported for the same period last year.  The Group
's business operations were adversely affected by what is still a difficult
business environment: The adjusted consolidated sales of CHF353.7 million
fell below the CHF 376.3 million reported last year and operating income
(EBIT) was -CHF13.1 m, as against the previous year's result of -CHF2.5
million.  Movenpick will continue with the comprehensive restructuring
program already initiated, especially in its Gastronomy and Foods Divisions.
Substantial provisions have been set aside to cover the costs of this
program.

Movenpick's hospitality business had to contend with extremely adverse
business conditions in the first few months of 2003.  A sluggish economy,
the war in Iraq and the SARS epidemic not only resulted in an ongoing slump
in consumer demand, but also exacerbated the crisis in the tourism and
airline industries.  Demand in Central Europe, the Middle East and Asia, all
important sectors and markets for Movenpick, fell below the previous year's
low levels.

This difficult business environment is reflected in the Movenpick Group's
figures for the first half of 2003.  After adjusting to exclude the sale of
business activities and the effects of closures and openings, consolidated
group sales fell by 6% to CHF353.7 million.  The Group's total adjusted
sales (including franchise and management operations) fell by 10.5% to
CHF472.9 million.

The influence of exceptional factors nevertheless resulted in a satisfactory
consolidated net income of CHF163.0 million (previous year: -CHF2.5
million).  This sum includes proceeds from disposals of business activities
totaling CHF205.6 million as well as the CHF29.5 million set aside for
restructuring.  Movenpick has a solid balance-sheet structure with liquid
funds of CHF226.4 million, which ensure adequate security for financing
further entrepreneurial activities.

The operating result (EBIT -CHF13.8 million; EBITDA CHF2.4 million) would
have been significantly lower had Movenpick not resolutely adjusted its cost
structures.  The total workforce (converted into full-time equivalents) was
reduced by 10.8% to 5,317.

Movenpick Gastronomy

The restructuring process is to be continued with unchanged vigor,
especially in the Gastronomy Division.  A strategic analysis of the various
locations showed that the portfolio needs to be thoroughly refocused.  An
action plan for both Germany and Switzerland has been set up.

Growth in motorway locations with the Marche Movenpick brand, on the other
hand, is being aggressively pursued.  Six new Marche operations are planned
for 2003 and three of these have already been opened.  While the franchise
business with Marche in Asia remains an important mainstay, the agreement
with the Canadian franchise partner was terminated as of May 2003.

Movenpick Hotels & Resorts

Movenpick's Hotels & Resorts intends to continue expanding in the
first-class segment, even though in recent months this division has likewise
been hit by the negative influences of the crisis in the travel and tourist
industry.  As per July 2003, Movenpick Holding increased its stake in
Movenpick Hotels & Resorts from 60% to 66.7 %, the new shares being taken
over from the investment bank, J.P.  Morgan.  As a Swiss hotel management
company, Movenpick Hotels & Resorts is still a much sought-after partner for
important hotel investors.  New management operations are to be opened in
Bahrain, Dubai and Berlin in the second half of the year.  There are further
projects in the pipeline, including France's first Movenpick Hotel, which is
due to open next year at Euro Disney in Paris.

Movenpick Wine

The Wine Division will remain in the Group portfolio.  The wine business has
asserted itself against the trend and reported pleasing growth rates,
especially in Germany.  Movenpick Wine is expanding in the direct consumer
business and will open two new wine outlets in Lucerne and Berlin.

Movenpick Fine Foods

The decline in sales reported by Movenpick Fine Foods is attributable mainly
to the sale of the ice-cream business.  A further consequence of this
divestment was the decision to initiate the sale of the ice-cream factory,
Chateau Creme Delight in New Zealand.  July saw the sale of Movenpick's
share in the Lupfig frozen food centre.  Various strategic options are now
being evaluated for the rest of the Fine Foods business.

All divisions are giving high priority to implement measures aimed at
increasing sales and enhancing efficiency.  With a business environment that
is still unstable, it is not possible to forecast how business operations
will develop.

Journalists please note:
The Movenpick Group Half-Year Report with detailed financial information is
available at http://www.moevenpick.com/investor

CONTACT:  MOVENPICK GROUP
          Lilly Frei, Head of Corporate Communications
          Zurichstrasse 106
          CH-8134 Adliswil
          Phone: +41 1 712 22 01
          Fax: +41 1 712 24 81


SWISS INTERNATIONAL: Suspends New Commission Rate for Agents
------------------------------------------------------------
SWISS has decided to maintain the basic commission rate for Swiss travel
agents at 7% and will not introduce a 0% commission rate until January 1,
2005.

Since the beginning of this year, SWISS has been conducting intensive talks
with travel agency representatives on the future commission policy.  The
decisive factors in the examination of the currently valid 7% basic
commission model were the present economic situation at SWISS and also the
pressure of many European airlines to cut travel agency commission payments
in their home markets.

Against the background of the difficult economic environment, which also
affects the travel branch, SWISS has decided to introduce the 0% commission
model in the year 2005, thus giving the agencies adequate time to prepare
for this new form of collaboration.

New fare structure

In Autumn this year, SWISS will introduce a completely new product and fare
concept for European destinations.  The new fares will make travel in Europe
simpler, more flexible and cheaper.  Based on the new competitive fares and
a transparent commission policy, SWISS looks forward to the continuation of
the partnership with Swiss travel agencies.

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
          Homepage: http://www.swiss.com


VON ROLL: Bond-to-share Conversion Receives no Objection
--------------------------------------------------------
The statutory period of 30 days for contesting the financial
restructuring -- after the bondholders' approval given on June 16, 2003 --
expired without any objections having been received.  The financial
restructuring of Von Roll Holding Ltd. is thus final and absolute.

The bonds shall be converted into shares in Von Roll Holding Ltd. as from
August 6, 2003.  Conversion for the former bondholders will be automatic.
New shares issued in conjunction with the conversion and capital increase
are delivered on August 11, 2003.

The share capital of Von Roll Holding Ltd. is now 110.725.089 new shares
with a nominal value of CHF0.10.


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


AES DRAX: U.S. Parent Withdraws Support for Restructuring
---------------------------------------------------------
The AES Corporation announced Tuesday that it has withdrawn its support for
the Restructuring Proposal set out in AES Drax Holdings Limited Form 6-K
filed on June 30, 2003.

Paul Hanrahan, said, "For the past 12 months, AES has worked diligently to
navigate the interests of Drax stakeholders through all of this turmoil,
beginning with the onset of TXU Europe's demise, through their bankruptcy
and beyond.  We have operated the plant extremely well, we have committed
top management resources, we have preserved the claims of Drax in the TXU
Europe administrative proceeding and we have led the process of
restructuring and reorganizing the very complex and oft-times conflicting
set of creditor concerns.  We have done all of this in good faith towards
preserving as much value for all Drax stakeholders, and most importantly, we
have done this without any compensation to AES.  In fact, we have offered to
put more money in to Drax as part of the restructuring.  AES looked at its
participation as it would any new investment, applying rigorous investment
criteria to its commitment.

At this time, we feel it appropriate that the creditors of Drax exhibit a
commitment to AES as part of the solution.  We have communicated to the
creditors that we are no longer willing to participate without this
commitment, and that we are not willing to increase our offer.  The
creditors have not given us that commitment, and therefore we have withdrawn
our offer and support for the business.  AES will maintain it's financial
and investment discipline in all its business dealings, and this is an
example of that discipline."

During the first half of 2003, AES Drax has generated a significant net loss
before tax of approximately $89 million, or approximately $0.10 per share.
If AES has no continuing involvement in the operations of Drax, its previous
results (including current year losses) will be reflected as discontinued
operations. AES wrote off its entire investment in Drax during 2002.

AES is a leading global power company comprised of contract generation,
competitive supply, large utilities and growth distribution businesses.

The company's generating assets include interests in 158 facilities totaling
over 55 gigawatts of capacity, in 28 countries.  AES' electricity
distribution network sells 108,000 gigawatt hours per year to over 16
million end-use customers.

For more general information visit our web site at http://www.aes.comor
contact investor relations at investing@aes.com

CONTACT:  AES CORPORATION
          Kenneth R. Woodcock
          Phone: 703-522-1315


EXETER INVESTMENT: To Sell Fund Management Rights to New Star
-------------------------------------------------------------
Further to the announcement on July 21, 2003 that [Exeter Investment] was in
discussions which might lead to the sale of the management contracts of its
open-ended funds to another investment management group, the company
announces on Tuesday that its subsidiary, EFM, has conditionally agreed to
sell the rights to manage the Funds to New Star for a maximum cash
consideration of GBP10.0 million.  The initial consideration comprises up to
GBP9.0 million in cash payable at Completion, and deferred cash
consideration of up to GBP1.0 million payable one year and ten days after
Completion.

In view of its size, the Disposal is conditional inter alia on Shareholders'
approval at an extraordinary general meeting of the Company to be held on
August 26, 2003.  The Directors have undertaken to vote in favor of the
Resolution in respect of their own aggregate beneficial and non-beneficial
holdings of 4,066,977 Shares representing (in aggregate) approximately 39.4%
of Exeter's issued Shares.

Background to and reasons for the Disposal

Since it was established in 1986, Exeter has built an investment services
business that largely comprises the management of portfolios for
closed-ended investment companies and open-ended funds.  Separately, Exeter
has also developed a successful fund administration business that has a
client base consisting of funds managed by a wide range of third party fund
management groups, as well as funds managed by Exeter.

At September 30, 2000 the assets in the Funds total ed approximately GBP363
million.  This had risen to GBP402 million by 30 September 2001.  However,
as a result of redemptions and the lack of new investments in the Funds, the
significant falls in world equity markets since their highs in 2000 and the
well-publicized difficulties in the Splits Sector, the figure had fallen to
approximately GBP270 million by 30 September 2002 and GBP250 million by
March 31, 2003.  As a result the Funds are now collectively of insufficient
size to generate enough revenue for Exeter to cover their direct costs,
particularly if professional service levels are to be maintained.

EFM made an audited loss before tax of approximately GBP788,000 in the six
months ended March 31, 2003.  EFM's results have had a material adverse
effect on the recent trading performance of the Exeter Group.

As announced in the Interim Statement, the Board undertook a strategic
review of the Group earlier this year.  The Directors concluded that it
would take a relatively long time for the Funds to recover the necessary
levels of income and that it was unlikely that the associated losses could
be turned into profit within an acceptable timeframe.  The Directors
considered a series of options to improve the company's prospects and
decided to seek a purchaser for the rights to manage the Funds.  This
process has resulted in the Disposal Agreement exchanged on Tuesday with New
Star.

Information on the Rights

The asset management rights that are the subject of the Disposal are in
respect of the 11 authorized unit trusts and two OEIC sub-funds listed below
which are currently managed by EFM.  Assets under management for each of the
Funds as at August 4, 2003, being the latest practicable date prior to the
date of this announcement, were:


                                                  Assets under
                                                  management
                                                  (excluding
                                                  internal
                                                  holdings)
Fund name                                                            GBP
million
Exeter Capital Growth Fund                        58.66
Exeter Equity Income Fund                         6.21
Exeter European Fund                              0.55
Exeter Fixed Interest Fund                        4.49
Exeter Global Opportunities Fund                  18.51
Exeter High Income Unit Trust                     21.11
Exeter Managed Growth Fund                        44.53
Exeter Money Market Fund                          0.85
Exeter Pacific Growth Fund                        14.86
Exeter Smaller Companies Unit Trust               5.36
Exeter Zero Preference Fund                       122.60
Exeter Hidden Value Portfolio                     1.21
Exeter Zero Portfolio                             12.70
                                                  ---------
Total                                             311.64
                                                  ---------


In the six months ended March 31, 2003 unaudited fees from funds under
management attributable to the Rights totaled approximately GBP1.6 million.
As the Rights are not a discrete business with their own balance sheet,
there were no net assets attributable to the Rights at March 31, 2003.
Exeter's unaudited interim balance sheet at March 31, 2003 included
approximately GBP356,000 relating to the goodwill on the acquisition of
certain investment mandates from Sanwa Asset
Management (U.K.) plc and DLUM.  There were no other intangible assets held
on Exeter's unaudited interim balance sheet as at March 31, 2003 in respect
of the Rights.

To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: Sale of Management Rights May Threaten Jobs
--------------------------------------------------------------
The Disposal [of Exeter Investment's fund management rights to New Star] is
structured as a sale by EFM [Exeter's subsidiary] of the rights to manage
the Funds with no transfer of tangible assets, liabilities or infrastructure
from Exeter to New Star.  The Disposal is, however, a transfer of an
undertaking for employment law purposes.  Prior to Completion a consultation
process will commence with all Exeter employees who are affected by the
Disposal and whose employment would transfer to New Star on Completion.  New
Star has informed EFM that following Completion it proposes to carry on the
management of the Funds from its premises in London and that, as a
consequence, employees engaged by EFM and other Exeter Group companies in
the management of the Funds may be made redundant.  Therefore EFM and other
Exeter Group companies as appropriate will, as part of its consultation
process, offer redundancy terms to affected employees.  If any affected
employees do not accept such terms and consequently transfer to New Star
then, if they are made redundant by New Star within ten business days from
Completion, such redundancy costs will be borne by EFM and other Exeter
Group companies.  It is estimated that total redundancy costs could amount
to up to approximately GBP700,000.
To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: Discloses Terms of Management Rights Disposal
----------------------------------------------------------------
Principal terms and conditions of the Disposal

Exeter has agreed to sell the Rights [to manage its open-ended fund
management contract] for a maximum cash consideration of GBP10.0 million in
cash, of which up to GBP9.0 million will be paid on Completion and up to
GBP1.0 million will be paid one year and ten days after Completion.

The precise level of consideration is based upon the values of the Funds at
Completion and one year after Completion.  If Completion had occurred on
August 4, 2003 (being the latest practicable date prior to the date of this
announcement), when the value of the Funds was GBP311.6 million, the full
GBP9.0 million would have been payable.

In practice the maximum GBP9.0 million initial consideration will be payable
if the Funds have a value on Completion of GBP300.0 million or more, being
95% of GBP315.7 million.  If they are less than GBP300.0 million the initial
consideration will reduce by the proportion that Funds at Completion are
less than GBP315.7 million.  It is a condition of Completion that the Funds
are worth at least GBP236.8 million on Completion. Assuming, that Completion
occurs, the minimum initial consideration therefore would be GBP6.8 million.

The maximum deferred consideration of GBP1.0 million can only be achieved if
the maximum GBP9.0 million initial consideration is achieved and if the
value of the Funds does not fall in the 12 months after Completion.  If the
value of the Funds falls by more than GBP45.0 million between Completion and
such first anniversary then no deferred consideration is payable.

The Disposal Agreement contains warranties and restrictive covenants
appropriate for a transaction of this type and indemnities by Exeter in
favor of New Star in respect of the management of the Funds prior to
Completion.

The FSA has consented to New Star Funds becoming ACD of the OEIC Sub-Funds
and manager of the Unit Trusts and to their re-branding with the name New
Star.  HSBC as the trustee of the Unit Trusts and the depositary of the
Exeter Open-Ended Investment Company has also given its consent and will
continue to perform such functions in relation to the Funds after
Completion.  The Disposal is further conditional on the Completion Proforma
Revenue being not less than GBP2.03 million on August 29, 2003, which would
equate to funds under management of GBP236.8 million.

In the course of negotiations leading up to the Disposal Agreement exchanged
on Tuesday with New Star, Exeter has had discussions with a number of
parties and has received unsolicited approaches with regard to an
acquisition of the Rights.  The levels of such offers have been such that
the Directors consider that the value to Exeter justifies the cash
consideration payable to Exeter for the Rights under the Disposal Agreement.

The company has also received a preliminary approach for the entire issued
share capital of Exeter, which was conditional on several factors, including
the Disposal not proceeding.  The Board has considered this approach in the
light of its conditionality and the value that, as a share for share offer,
it potentially puts on the Company as a whole.  However, the Board concluded
that as the Disposal represented greater certainty and value to the Company
and Shareholders as a whole, it should proceed with the Disposal.
To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: Sale Proceeds to Strengthen Balance Sheet
------------------------------------------------------------
Use of Proceeds from Disposal of Rights to Manage Open-ended fund to New
Star

It is not possible to state with any accuracy what the initial and deferred
net cash proceeds will be.  However, if the initial consideration were
GBP9.0 million it is estimated that the initial net cash proceeds would be
approximately GBP8.4 million after deduction of transaction expenses.  As a
result of the Disposal, Exeter also anticipates a tax charge of
approximately GBP2.3 million and redundancy costs of up to approximately
GBP700,000.  Exeter intends to use the net proceeds (after transaction
expenses, tax and redundancy costs) of approximately GBP5.4 million to
strengthen the Group's balance sheet.  The use of the net proceeds by the
Continuing Exeter Group is restricted by the requirements of the FSA as
described in the section below headed 'Financial effects of the Disposal'.

To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: Retains Management of Investment Portfolio
-------------------------------------------------------------
The Continuing Exeter Group and its prospects

The Continuing Exeter Group has agreed to withdraw from managing open-ended
funds for two years, but it will continue to manage investment portfolios
for its seven existing closed-ended investment company clients.  At March
31, 2003 these portfolios had funds under management totaling approximately
GBP152 million.  Exeter expects to continue to perform this role for the
foreseeable future.  The continuing operating costs of the fund management
operation will be significantly reduced as a result of the Disposal.

The main focus of Exeter will, however, be the further development of the
Group's successful fund administration business.  This is conducted through
EFA, which currently provides services to 48 open-ended funds, Sinclair
Henderson, which acts for 48 closed-ended investment company clients, and
ACD Services, which provides services for three of EFA's clients.  On
Completion, it is proposed that EFA and New Star Funds will enter into the
Service Agreements under which, EFA will continue to provide fund accounting
services for the Funds for a minimum of six months following Completion and
fund administration and registration services for such period as EFA and New
Star Funds shall agree.

To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: Two Executive Directors to Resign October
------------------------------------------------------------
It is intended that two executive Directors, Ian Jolliffe, Unit Trust
Director, and Christopher Whittingslow, Investment Director, will resign
from the Board and as directors of the Group subsidiaries and that they will
leave the employment of Exeter in October 2003.

The Directors believe that the Disposal [of the management of open-ended
trusts to New Star] will:

(a) crystallize the value of the rights to manage the Funds

(b) release financial and management resources thereby enabling the
Continuing Exeter Group to focus its efforts on the further development of
its successful fund administration business

(c) enhance the overall financial and trading prospects of the Continuing
Exeter Group.

Consequently, the Directors are confident about the financial and trading
prospects of the Continuing Exeter Group for at least the current financial
year and consider the administration business to represent a significant
asset to the Group with growth potential over the long term.
To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc


EXETER INVESTMENT: No Writedown Expected for Rights Disposal
------------------------------------------------------------
Financial effects of the Disposal of the Fund Management Rights to New Star

The level of distributable reserves in various Group subsidiaries will
prevent the net proceeds of the Disposal from being distributed to
Shareholders by way of a dividend.  At the time of admission of the
Company's shares to AIM in 1996, a reconstruction took place to remove
minority holdings and to create a new holding company, Exeter.  The
reconstruction transactions resulted in a total carrying value of subsidiary
companies within the accounts of this holding company of GBP12.1 million.
Subject to minor increases in the share capital of subsidiary companies,
this figure has remained relatively constant since 1996 and stood at GBP12.2
million at the Company's most recent financial year end, 30 September 2002.

The Disposal fixes the value of certain subsidiaries and, as a result, the
Board has had to compare the carrying values of subsidiaries with the value
achieved for the Disposal and the value of the Group's remaining businesses.
In 1996, the bulk of the value of the subsidiary companies was attributable
to EFM and EAM, the carrying values of which will be reassessed following
the sales of the Rights by EFM and the resultant fall in the value of funds
under management for EAM.

There is no impairment to the carrying value of EFM due to the amounts
receivable by this subsidiary for the Disposal. Therefore, there will be no
requirement for a writedown within the accounts of Exeter in respect of EFM.

However, the position relating to EAM is less favorable as the ongoing value
of the business without the Funds is likely to be significantly less than
its carrying value of GBP5.7 million.  As a result, the Directors believe
the carrying value of EAM should be reduced to net assets, which will
require a writedown of approximately GBP3.4 million within Exeter's
accounts.

The impairment review of subsidiary valuations will therefore affect
distributable profits within Exeter even though the Disposal results in a
consolidated profit for the Group.  When combined with the writedown of EAM
within the holding company's accounts, the operating results and the
Disposal is likely to be insufficient to permit a distribution for this
financial year ending 30 September 2003 and, based on the unaudited interim
balance sheet as at March 31, 2003 for Exeter, a deficit of GBP1.2 million
is expected to be carried forward.

The share premium account of GBP2.6 million could be reduced to eliminate
the deficit and enable a distribution to be made. However, this would
require both Shareholder and court approval and any future distributions
would also depend upon future profitability.

The Group has given undertakings to the FSA that the net proceeds of the
Disposal receivable by EFM (after deduction of all costs, which may
legitimately be deducted, as well as the ongoing costs of operations), shall
be retained within EFM until all complaints to the FOS regarding split
capital investment trusts relating to the Group have been resolved.  In
addition, the company has agreed that neither it nor EAM will make any
transfers of capital assets without FSA consent until such complaints are
resolved.

However, the FSA has confirmed that these undertakings are wholly
precautionary and it has not reached any concluded view as to whether the
investigation underway discloses evidence that EAM has failed to meet its
regulatory obligations or has thereby incurred liabilities, and FOS
complaints against EFM remain undetermined.

In addition, the company has agreed that neither it nor EAM will make any
distributions without FSA consent.  The combined effect of such undertakings
could prevent further payment of dividends by the Group if outstanding FOS
complaints are not resolved by the time the Group would otherwise be in a
position to pay such dividends or if FSA consent is not otherwise obtained.

To See Full Copy of Proposed Disposal:
http://bankrupt.com/misc/Exeter_Proposed_Disposal.doc

CONTACT:  EXETER INVESTMENT
          Mark Kemp-Gee, Chief Executive
          John Wynne, Finance Director
          Phone: 01392 256600

          Roland Cross, Director
          Broadgate
          Phone: 020 7726 6111

          TR Van Oss, Joint Financial Adviser
          Phone: 0777 553 1500

          Tom Griffiths
          Arbuthnot, Joint Financial Adviser
          Phone: 020 7002 4600

          Home Page: www.exeter.co.uk


KLEENEZE PLC: Thwarted Buyer Questions DMG Sale to Rival Bidder
---------------------------------------------------------------
Kleeneze is facing legal proceedings in relation to the sale of its DMG
division, the loss-making unit mainly responsible for its GBP36 million
pre-tax loss last month.

According to The Guardian, Gillian Wilmott, a former senior director at
Royal Mail, is initiating a lawsuit on the direct marketing group for
reneging on a contractual obligation to negotiate the sale of its DMG
division exclusively with her.

Ms. Wilmott claimed that Kleeneze sold DMG to Premier Direct just hours
before she was about to complete her own purchase deal.

"I think it is very disappointing that a PLC has acted in this way. It has
broken a contract and behaved dishonorably.  I was due to complete my deal
on Friday July 25, and they sold on the Thursday night," said Ms. Wilmott,
according to the report.

Kleeneze countered by accusing Ms. Wilmott of "unhelpful behavior."

"Ms Wilmott knew as early as July 7 or 8 that we were meeting with other
people [about a possible sale] and she was always fully aware of what was
going on," said Kleeneze's chief executive, William Rollason.

"I asked her to a meeting on Wednesday [July 23] but she point blank
refused to come.  It's completely untrue to say this [Friday's planned
talks] was a completion meeting.  There was a compensation clause in our
agreement and we were ready to honor this.  This has got out of hand.
Negotiating through the press is unhelpful," said Mr Rollason.

The company sold DMG, which sells books and soft toys direct to office
workers, to Premier for GBP4.1 million last month.

Ms. Wilmott, who is confident of turning around the unit with the help of
its 150 staff, said: "I am very serious about pursuing the legal case and am
appointing City litigators."


SPIRENT PLC: First-half Operating Profits Fall 56%
--------------------------------------------------
Announces Interim Results for the Six Months to June 30, 2003
Spirent plc (LSE:SPT) (NYSE:SPM), a leading international network technology
company, announced its interim results for the six months to June 30, 2003.

Summary


GBP million      Six months to    Six months to   Six months to
                   30 June 2003 31 December 2002    30 June 2002

Turnover                 229.2            247.9          311.0
Operating profit(a)       14.3             15.3           35.2
Profit before             12.8             15.0           31.4
taxation(a)
Headline                  0.96             0.98           2.42
earnings per
share(a) (pence)

(a) Turnover from ongoing businesses of GBP224.4 million was down 5% and
operating profit(a) of GBP14.6 million was up 6% relative to the second half
of 2002.  Turnover from divestments was GBP4.8 million and operating loss
was GBP0.3 million.

(b) All operating groups delivered operating profit(a) and generated cash,
with total cash generation from operations of GBP28.6 million, after
investment in product development of  GBP32.9 million.

(c) Cost reduction actions resulted in savings of GBP16.6 million being
realized in the period.

(d) Net debt reduced to GBP99.5 million at June 30, 2003 from GBP161.8
million at the end of 2002.

(e) Communications group turnover of GBP117.5 million was down 13% but
operating profit(a) of GBP5.1 million was up 11% compared with the second
half of 2002.

(f) Network Products group turnover was up 7% at GBP85.9 million and
operating profit(a) was up 5% at GBP7.7 million relative to the second half
of 2002.

(g) Reported loss before taxation, after goodwill amortization and
exceptional items, was GBP9.6 million (first half 2002 loss GBP22.4 million)
and basic loss per share was 1.34 pence (first half 2002 loss 3.42 pence).

(h) Divestments of WAGO and Aviation Information Solutions businesses
completed in the period.

(a) Before goodwill amortisation and exceptional items

Commenting on the results, Nicholas Brookes, Chief Executive, said: "During
the first six months of 2003 we experienced difficult economic conditions
worldwide and continuing tough conditions in the telecoms sector, with our
Communications group's customers further cutting their capital spending.
Despite this, our focus on cost control and cash management has enabled all
our operating groups to continue to be cash generative and profitable at the
operating level in the period.

"We believe that our focus on next-generation technologies, our ability to
provide integrated solutions for our customers and the quality of our people
provide us with competitive advantages.  Throughout the downturn we have
maintained the pace of product development investment to keep us at the
forefront of next-generation technologies and to enable us to meet our
customers' needs when the upturn comes.

"We continue to drive our efforts in the telecoms test and monitoring
sector, which we believe will provide attractive growth opportunities in the
future.  However, our current plans do not anticipate any improvement in the
telecoms market for the remainder of the year."

About Spirent

Spirent plc is an international network technology company providing
state-of-the-art systems and solutions for a broad range of customers
worldwide.  Our Communications group is a worldwide provider of integrated
performance analysis and service assurance systems for next-generation
network technologies.  Spirent's solutions enable customers to develop and
deploy network equipment and services more economically and efficiently by
emulating real-world conditions and assuring end-to-end performance of
large-scale networks.  Our Network Products group provides innovative
solutions for fastening, identifying, insulating, organizing, routing and
connectivity that add value to electrical and communication networks in a
wide range of applications. Our Systems group offers integrated product
solutions for the power controls and aerospace markets.  Further information
about Spirent plc can be found at http//www.spirent.com

Spirent plc is listed on the London Stock Exchange (LSE:SPT) and on the New
York Stock Exchange (NYSE:SPM) (CUSIP number: 84856M209) with one American
Depositary Receipt representing four Ordinary shares.

To See Financial Statements: http://bankrupt.com/misc/Spirent_H1_Results.htm


                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc.,
Washington, DC USA.  Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

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

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