/raid1/www/Hosts/bankrupt/TCREUR_Public/030905.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, September 5, 2003, Vol. 4, No. 176


                            Headlines


C Z E C H   R E P U B L I C

CESKE RADIOKOMUNIKACE: Bivideon Offers to Buy All Common Shares
CZECH AIRLINES: Retools Board to Achieve German-style Management


F R A N C E

RHODIA SA: Sells Paper and Textile Additives Business to Kemira
VIVENDI UNIVERSAL: Rating on Watch Positive Pending NBC Merger


G E R M A N Y

BERTELSMANN AG: First-half Operating Results Up 30% Year-on-year
IESY HESSEN: Moody's Withdraws Ratings on Refinanced Debts
MG TECHNOLOGIES: Settles Row with Major Shareholder


I R E L A N D

AN POST: To Miss 2003 Efficiency Target, Says ComReg
AN POST: ISME Wants Full Privatization Following ComReg's Report
AN POST: Insists Cost can be Minimized Without Survival Plan


N E T H E R L A N D S

KONINKLIJKE AHOLD: Denies Tax Row Would Complicate Disco Sale
UNITED PAN-EUROPE: Completes Balance Sheet Restructuring


P O L A N D

ELEKTRIM SA: CEO Willing to Compromise with Vivendi on PTC Sale


R U S S I A

ALFA BANK: Standard & Poor's Affirms 'C' Short-term Rating
MDM BANK: Short-term 'C' Rating Affirmed
MENATEP: S&P Affirms 'CCC+' Long-term Rating; Outlook Revised
OJSC COMMERCIAL BANK: S&P Affirms Short-term Ratings at 'C'
URAL-SIBERIAN: Short-term 'C' Ratings Affirmed


S W E D E N

SCANDINAVIAN AIRLINES: Farms out Parts of Revenue Division


S W I T Z E R L A N D

SWISS INTERNATIONAL: Concludes Additional Sales Agent Agreement
ZURICH FINANCIAL: Financial Strength, Debt Ratings Affirmed


U N I T E D   K I N G D O M

ARC INTERNATIONAL: Announces Appointments and Resignations
AVIS EUROPE: Half-year Profits Fall 69%; Chief Executive Quits
BAE SYSTEMS: India Picks Hawk Advanced Jet Trainer
BRITANNIC GROUP: Resumes Annual Bonus, Dividend Payments
BRITISH AIRWAYS: Passenger Traffic Up Year-on-year

CABLE & WIRELESS: May Sell U.S. Business to Avoid Closure Costs
GOSHAWK INSURANCE: Changes Board, Management Composition
IQ LUDORUM: Holt Resigns; Wills Appointed Non-executive Chairman
JOHN LAING: Business Strategy Now Clear, Says Chairman
KERESFORTH THREE: High Court Sanctions Scheme of Arrangement

PHOTO-ME INTERNATIONAL: Issues Positive Trading Update
POWERHOUSE: Receivers Offer Business, Assets for Sale
ROYAL & SUNALLIANCE: Calls for Finance Chief to Quit Intensify
WESTPOINT STEVENS: Joint Administrators Sell Business, Assets
WESTPOINT STEVENS: Court Fixes Oct. 3 as General Claims Bar Date


                            *********


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


CESKE RADIOKOMUNIKACE: Bivideon Offers to Buy All Common Shares
---------------------------------------------------------------
Bivideon B.V., having its registered office at Herengracht 450, 1017CA
Amsterdam, the Netherlands, registered at the Chamber of Commerce for
Amsterdam number 34152379, hereby in accordance with Section 183e(3) of the
Act No. 513/1991 Coll., the Commercial Code, as amended, announces that
Bivideon B.V. has reached a decision on intention to make a voluntary public
takeover offer to all owners of participating securities, being the ordinary
bearer shares issued by Ceske Radiokomunikace a.s., having its registered
office at U nakladoveho nadrai 3144, 130 00 Praha 3, the Czech Republic,
identification number 60193671 (CRa).  The Offer will be unconditional and
unlimited and the price offered for one participating security will be
commensurate with the actual value of such security.  The adequacy of the
price will be supported by an expert valuation.  As a result, the Offer will
satisfy the requirements set out in Section 183b(15) of the Code.  If, as a
result of the Offer, the Offeror's total share in the voting rights in CRa
reaches or exceeds three-fourths of the voting rights, the Offeror shall not
be obligated (pursuant to Section 183b (15) of the Code) to make a public
takeover offer to all owners of participating securities of CRa.

According to Section 183e(9) of the Code, the Securities Commission shall
pass a decision with respect to the Offer within eight (8) business days
following the submission of the Offer by the Offeror, with possible
extension for additional five (5) business days or alternatively, request
revisions of the terms of the Offer within a time period specified by the
Securities Commission.  If the Offer is approved by the Securities
Commission and subject to arranging financing of the Offer, the Offeror
intends to publish the Offer no later than the end of September 2003.  The
price, which the Offeror intends to offer for one CRa share is 245 Czech
Crowns.

                              * * *

Ceske Radiokomunikace posted a net loss of CZK108 million last year, down
from a profit of CZK809 million in 2001.  The company expects to return to
profitability this year.


CZECH AIRLINES: Retools Board to Achieve German-style Management
----------------------------------------------------------------
CSA, Czech Airlines' supervisory board made these decisions at Tuesday's
meeting:

It removed the current CSA board of directors and appointed new members.
They are: Jaroslav Tvrdik, Frantisek Slaby, Vaclav Kral, Tomas Heczko, Peter
Jusko, Kamil Slavik, and Jaroslav Svabik.  The decision became effective
Tuesday.

The main reasons for the decision are:

(a) Finalization of the changeover to a new so called "German-
    style" management model in accordance with effective
    articles of association adopted at CSA's general assembly;

(b) Achievement of a more dynamic development of CSA;

Thee supervisory board members representing individual shareholders as well
as other members believe the newly appointed board of directors can achieve
the above objectives.  The supervisory board also tasked the new board of
directors with preparation of new strategic materials to meet the objective.
The newly appointed board of directors held a meeting immediately after its
appointment and adopted these decisions:

(1) Jaroslav Tvrdik was elected the chairman of the board of
    directors and Kamil Slavik the vice-chairman.

(2) President Miroslav Kula and vice-president, Human Resources
    Michal Kraus were removed from their positions.

(3) Jaroslav Tvrdik was appointed the president of CSA and
    Jaroslav Svabik vice-president, Human Resources.

The decision became effective Tuesday.


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


RHODIA SA: Sells Paper and Textile Additives Business to Kemira
---------------------------------------------------------------
Rhodia announced Wednesday the sale of its textile and paper additives
business based in Sausheim (Alsace), France, to the Finnish group, Kemira.
The transaction includes the plant at Sausheim, its employees and all of its
assets.  These industrial additives are mainly used in the textile, paper
and polymerization markets in Europe, and includes products such as
defoamers and textile sizing agents.

The paper and textile additives activity generated sales of EUR14 million in
2002.  Industrial additives production is not a core technology for Rhodia's
PPMC enterprise, which has withdrawn from the textile and paper markets and
is focusing on the production of performance latex products and aliphatic
isocyanates for paints, coatings and adhesives applications.

This divestment is in line with Rhodia's strategy to divest non-strategic
assets that are inconsistent with a business model based on the
cross-fertilization of technologies and the delivery of high value-added
solutions to customers.

Rhodia PPMC (Performance Products for Multifunctional Coatings) offers a
wide range of products, services and technologies (performance latex
products, aliphatic isocyanates) for formulating industrial and
architectural coatings and construction materials.  These ranges of products
are constantly being enhanced by the introduction of new innovative products
meeting the dual requirement of the coatings producers: enhanced performance
levels and environmental protection

About Kemira Group

The Kemira Group operates in the chemicals industry, focusing on sectors
demanding versatile chemical technology.  Its total turnover in 2002 was
EUR2.6 billion, and it employs 10300 people worldwide.  Kemira is a leading
global supplier of pulp and paper chemical as one of its core businesses and
growth areas with a turnover of EUR600 million.

CONTACT:  RHODIA
          Investor Relations
          Fabrizio Olivares
          Phone: +33 1 55 38 41 26


VIVENDI UNIVERSAL: Rating on Watch Positive Pending NBC Merger
--------------------------------------------------------------
Standard & Poor's Ratings Services said it had placed its long-term credit
ratings -- including its 'BB' corporate credit ratings -- on Vivendi
Universal SA and its U.S.-based media subsidiary Vivendi Universal
Entertainment LLP on CreditWatch with positive implications.  At the same
time, Standard & Poor's affirmed its 'B' short-term rating on Vivendi
Universal.

The ratings actions follow Tuesday's announcement that Vivendi Universal had
reached a preliminary agreement with General Electric Co. (GE;
AAA/Stable/A-1+) to merge its approximately 86%-owned subsidiary Vivendi
UniversalE with GE's fully owned media subsidiary, NBC, to form one of the
largest media groups worldwide.

"The CreditWatch placement primarily reflects the positive impact that the
transaction would have on Vivendi Universal's debt protection measures and
liquidity," said Guy Deslondes, a credit analyst in Standard & Poor's Milan
office.

If executed according to the terms announced yesterday, Vivendi Universal
Entertainment and NBC will merge, forming a new GE subsidiary.  Vivendi
Universal Entertainment's shareholders will receive US$3.8 billion in GE
shares -- which Vivendi Universal expects to monetize -- and about US$1.67
billion of Vivendi UniversalE's debt will be transferred to the new entity.
The transaction would therefore result in a significant reduction of
approximately US$5 billion (EUR4.62 billion) in Vivendi Universal's
consolidated net debt, which was estimated to be about EUR13.5 billion at
end-June 2003.  At the same time, Vivendi Universal will retain a 20% stake
in the newly formed subsidiary.  For Vivendi Universal, these benefits may
well offset the effects of disposing of a relatively strong business like
Vivendi Universal Entertainment.

"Nevertheless, Standard & Poor's estimates that Vivendi Universal's credit
metrics will remain relatively weak, and that its reduced business scope and
uncertainties over its future business strategy would likely limit any
ratings upgrade to one notch," said Mr. Deslondes.

The resolution of the CreditWatch placement of the long-term corporate
credit rating on Vivendi Universal will occur upon closing of the
transaction.  The resolution of the CreditWatch placement of the long-term
corporate credit rating on Vivendi Universal will occur once its agreement
with GE is binding and the main antitrust hurdles have been removed.
However, given that the finalization of the negotiation process and
antitrust review is likely to be a lengthy process, Standard & Poor's will
seek to indicate rapidly whether its corporate credit rating on Vivendi
Universal is likely to be upgraded or affirmed, assuming the transaction is
closed according to the terms disclosed yesterday.

To do so, Standard & Poor's will examine:

(a) The conditions and timing of the monetization of the GE
    shares that Vivendi Universal will receive, and the future
    status of its stake in the newly formed entity;

(b) The pro forma credit metrics of Vivendi Universal after the
    closing of the transaction, including the treatment of
    Vivendi UniversalE's existing preferred shares, which will
    remain Vivendi Universal's liabilities, and related 56.6
    million USAi shares;

(c) The business strategy that Vivendi Universal's management
    will follow after the closing of the transaction --
    including the review and likelihood of any pending and
    future asset disposals and acquisitions (such as any
    transactions regarding Elektrim and Maroc Telecom);

(d) Confirmation that no support for the new entity should be
    expected from Vivendi Universal; and

(e) The use of the cash proceeds from the deal, which could
    reduce the degree of subordination of Vivendi Universal's
    outstanding bonds.

"The future ratings on Vivendi Universal Entertainment will depend notably
on pro forma credit metrics and on the degree of support that can be
expected from GE if the deal goes through. The ratings on Vivendi Universal
Entertainment could be upgraded several notches to reflect GE's
80%-ownership in the new entity," added Mr. Deslondes.

Although significant financial support may be forthcoming from GE, at this
point Standard & Poor's does not expect to equalize the corporate credit
rating on Vivendi Universal Entertainment with that on GE, given the partial
ownership structure of the new subsidiary and given Standard & Poor's
current lack of information concerning GE's long-term strategy for the new
media entity.


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


BERTELSMANN AG: First-half Operating Results Up 30% Year-on-year
----------------------------------------------------------------
In the first half of 2003, Bertelsmann continued the progress it made in the
previous year and further improved its operating profit.  Operating EBITA
reached EUR228 million, topping the EUR175 million achieved for the first
half of 2002 by 30%.  The major reasons for this improvement in results were
decreased losses at Direct Group, positive performance at RTL Group and the
group-wide optimization of business processes and cost structures.  Lower
consumer demand reduced results at Random House and BMG.

At EUR7.9 billion, revenues were below the previous year (EUR8.8 billion).
The decrease was affected by a weak U.S. dollar as well as the overall state
of the global economy.  Media markets in which Bertelsmann has a significant
presence were affected by lower consumer demand, particularly in the U.S.
Adjusted for exchange rate effects, acquisitions and disposals, revenues
declined by 3.1% compared with the first half of 2002.  The change in
revenues was also induced by the divisions' intensified focus on their core
businesses.  Sales levels were also influenced by the timing of new releases
in the music and book publishing divisions, which will be tilted more
strongly towards the second half of the year in 2003 than they were in 2002.

Net income for the first half of the year was EUR142 million (previous year,
mainly due to the sale of shares in AOL Europe: EUR1.6 billion).  Special
items of -EUR53 million in the first half of 2003 were mainly expenditures
for integrating the Zomba music company into BMG and for restructuring
within the music division.

Bertelsmann Chairman and CEO Gunter Thielen stated: "Bertelsmann has further
improved the results of its operating businesses in the first half of 2003.
This confirms our focus on strengthening core businesses and improving
earnings potential. Based on the seasonal nature of many Bertelsmann
businesses, we expect higher revenues and a higher operating profit for the
second half of the year than during the first half.  We are keeping our
forecast of achieving an Operating EBITA for the whole of 2003 that exceeds
previous-year levels."

Bertelsmann CFO and Deputy Chairman Siegfried Luther stated: "Bertelsmann
has further improved the structure of its financing instruments and
resolutely continued its focus on the capital market.  Once we are in
receipt of the proceeds from the Bertelsmann Springer sale, we again will
achieve our self-imposed financing goals."

Other key financials

Investments for the first half of 2003 totaled EUR342 million (previous
year: EUR2.1 billion), mainly relating to the acquisition of program rights
(RTL Group) as well as replacement and expansion projects (Arvato, Gruner +
Jahr).  The amount for the first half of 2002 included in particular the
purchase of a further 22% of RTL Group for EUR1.5 billion.

Net financial debt amounted to EUR2.6 billion on June 30, 2003 and will
decrease by the end of the year following receipt of the proceeds from the
sale of Bertelsmann Springer.  In May 2003, Bertelsmann sold the
specialist-publishing group Bertelsmann Springer to a syndicate made up of
the private equity firms Cinven and Candover effective April 1, 2003.  The
purchase price, free of debt, amounts to EUR1.05 billion.  The deal is
scheduled to close in mid-September.  A capital gain of EUR630 million was
recorded in the first half of 2003.

Divisions

RTL Group (Revenues: EUR2.2 billion, Operating EBITA: EUR250 million)
continued to build on the positive progress it made in 2002.  Despite the
ongoing difficulties in advertising markets, particularly in Germany, the
Group was able to grow against the overall industry trend and recorded a
clear increase in profit.  RTL Television in Germany contributed
significantly to this performance and attained its best audience levels
since 1997 with innovative program formats such as "Deutschland sucht den
Superstar", the German adaptation of "Pop Idol", and the "70's" and "80's"
shows.  FremantleMedia's success around the world with "Pop Idol", together
with M6's satisfactory performance in France and Five's breakeven in the UK,
also contributed to this performance.  At the same time rigorous savings
ensured that cost structures were tightened across the Group.

The majority of the six-month Random House (Revenues: EUR747 million,
Operating EBITA: EUR29 million) revenue decline from prior year was due to
the weakness of the U.S. dollar.  Random House was also significantly
impacted by weak consumer demand in the U.S. and Germany and by the closure
of several German publishing imprints, including the how-to book publishers
Falken and Mosaik.  The decrease of revenues was partially offset by such
major bestsellers as "The Da Vinci Code" by Dan Brown and "The King of
Torts" by John Grisham as well as by the audiobook for J. K. Rowling's fifth
"Harry Potter" novel.  Achievements in ongoing cost savings and a solid
performance from Random House's U.K. group also helped offset Random House's
revenue decline.

Despite difficult market conditions, Gruner + Jahr (Revenues: EUR1.2
billion, Operating EBITA: EUR112 million) was able to maintain its operating
results at the same level as for the first half of 2002, and even improve
return on revenues over the first six months of the previous year.  The
decrease in revenues compared with the first half of 2002 was due to soft
advertising volumes driven by the weakness of the economy as well as to the
disposal of newspaper activities.  Extensive investments in innovative
magazines, such as "Woman" and "Neon" in Germany, "Shopping" in France and
"Glamour" in Poland strengthened Gruner + Jahr's portfolio in its core
business as well as its position in growing markets.  With steadily growing
circulation and readership, the "Financial Times Deutschland" is Germany's
fastest-growing nationwide daily.

BMG's business (Revenues: EUR1.0 billion, Operating EBITA: EUR-117 million)
was considerably influenced by the continuing decline in the global music
market.  Major new releases were pushed back into the second half of the
year.  The resulting drop in revenues was partly offset by the first-time
inclusion of Zomba.  Profits were also affected by artist advance
write-offs.  However, BMG achieved major artistic successes and improved its
market position in several areas.  Artists such as R. Kelly, Avril Lavigne,
"American Idol" finalist Kelly Clarkson, Justin Timberlake and Christina
Aguilera were among the top sellers in North America, where BMG had No. 1
debuts from Monica and Luther Vandross.  The new release from Annie Lennox
debuted at No. 3 in the U.K., while BMG was market leader in Germany with
"Deutschland sucht den Superstar."  Italy's Eros Ramazzotti reached top 10
in 10 territories.

The media services provider Arvato (Revenues: EUR1.6 billion, Operating
EBITA: 54 million EUR) withstood difficult conditions in its core markets
and was able to increase its Operating EBITA.  In addition to the overall,
continuing weak state of the economy, the slight decline in revenues was
mainly due to the weakness of the U.S. dollar.  While Arvato Print's
printing business was confronted with increased pricing pressure, Arvato
Services raised both revenues and profits.  Arvato Storage Media held up
well in a globally shrinking CD market.  Sales volumes in the DVD segment
rose sharply over the first half of 2002.

The decline in revenues at Direct Group (Revenues: EUR1.1billion, Operating
EBITA: -EUR17 million) is due to the withdrawal from pure e-commerce with
media products, the focus on book and music clubs, the change in new member
strategy for the U.S. music club and currency effects relating to the U.S.
dollar and British pound.  By focusing on its core business and rigorously
pursuing cost reductions in all areas of its operations, Direct Group was
able to almost entirely eliminate its losses.  The profitable club
activities were further expanded, particularly in Spain and France.  The
clubs in Germany and Great Britain are making significant progress.  The
U.S. music club, BeMusic made a positive contribution to profits and was
able to resist the overall trend on the music market.

Overview of Figures (EUR in millions)

Group           Jan 1 - Jun 30, 2003    Jan 1 - Jun 30, 2002

Revenues               7,883                   8,830

Operating EBITA          228                     175

Special items            -53                     -18

Amortization of goodwill* and similar rights
- scheduled             -348                    -360

- unscheduled            -37                  -1,000

Capital gains/losses (-) 628                   2,849

Profit before financial result and taxes
                         418                   1,646

Net interest             -52                     -24

Other financial expenses and income
                        -120                    -110

Income taxes            -104                     120

Net income before minority interests
                         142                   1,632

Minority interests       -32                     -18

Net income after minority interests
                         110                   1,614

Investments              342                   2,112

                     Jun 30, 2003          Dec 31, 2002

Total assets          20,894                  22,188

Equity (incl. Minority interests)
                       7,505                   7,744
Net financial debt     2,637                   2,741

No. of employees      73,972                  80,632

* Including amortization of goodwill from associated companies

Division        Revenues                 Operating EBITA

           1/1/ - 6/30/03 1/1/ - 6/30/02 1/1/ - 6/30/03  1/1/ - 6/30/02

RTL Group         2,212       2,102          250              173

Random House        747       1,010           29               68

Gruner + Jahr     1,240       1,443          112              121

BMG               1,086       1,166         -117              -45

Arvato            1,639       1,672           54               44

Direct Group      1,134       1,374          -17             -119

TOTAL SEGMENTS    8,058       8,767          311              242

Bertelsmann Springer 158        359           0                26

Intercompany Revenues -333     -296

REVENUES             7,883    8,830

Corporate/Consolidation -83     -93

OPERATING EBITA                               228            175

About Bertelsmann AG: The Bertelsmann media and entertainment company
commands leading positions in major markets all over the world.  Its core
business is the creation of first-class media content: The group
incorporates Europe's No.1 in television and radio, the RTL Group, as well
as the world's biggest book publisher Random House, comprised of over 100
individual publishing companies.  Europe's biggest magazine publisher Gruner
+ Jahr and the BMG music company with its about 200 labels stand for
creativity and powerful brands.  Direct Group bundles Bertelsmann's
direct-to-customer businesses: book and music clubs with a worldwide
membership of more than 40 million.  The international media services
provider Arvato includes expanding distribution companies, service centers
and customer loyalty systems, along with state-of-the-art printing plants,
storage media production and comprehensive IT services.

CONTACT:  BERTELSMANN AG
          Oliver Herrgesell
          Senior Vice President Media Relations
          Phone: + 49 - 5241 - 80-24 66
          E-mail: oliver.herrgesell@bertelsmann.com


IESY HESSEN: Moody's Withdraws Ratings on Refinanced Debts
----------------------------------------------------------
Moody's Investors Service withdrew the ratings of broadband communications
network operator, iesy, following the company's refinancing of essentially
all rated debt.

The rating action, which affected approximately EUR1.4 billion of debt
instruments, were undertaken on iesy (fka eKabel) Hessen GmbH's 'Caa2'
senior implied rating, 'Ca' senior unsecured issuer rating, and 'Ca' senior
unsecured bond ratings.  It was also done on iesy (fka eKabel) Hessen GmbH &
Co. KG's 'B3' guaranteed senior secured credit facility rating.

iesy serves approximately 1.3 million subscribers in the Hessen region of
Germany.


MG TECHNOLOGIES: Settles Row with Major Shareholder
---------------------------------------------------
Mg technologies AG and Dr. Otto Happel, who is the major shareholder and now
a member of the Supervisory Board, have amicably settled the special audit
relating to the mg Group requested by Dr. Happel in August 2001 before the
Frankfurt District Court as well as all other open legal proceedings between
them.  The resulting potential burdens and risks have thus been eliminated.

                     *****

Moody's Investors Service recently placed MG Technologies' long-
term debt ratings on review for possible downgrade because of the
deterioration of its operating performance and weak cash flow generation
over the past quarters.  The group reported a pre-tax loss of EUR21 million
(US$23 million) for the second quarter of 2003.  It does not expect
improvements in its performance in the second-half.


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I R E L A N D
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AN POST: To Miss 2003 Efficiency Target, Says ComReg
----------------------------------------------------
The Commission for Communications Regulation (ComReg) published the results
of a survey of An Post's quality of service performance for the second
quarter of this year.  The survey, which was conducted by TNS MRBI, shows
that only 71% of single piece mail items were delivered the next day.

The result for the first quarter of the year was 73% and the target set by
ComReg for 2003 was 94%.  It is clear at this point that An Post will not
meet the 2003 target.

The core policy goal of the Government in respect of the postal sector is to
ensure that Irish industry and domestic customers enjoy competitively
priced, high-quality postal services on par with the highest quality
standards in comparable economies elsewhere in the E.U.  The current
situation would clearly indicate that this objective is not being met.  To
ensure that consumers get the level of service they need, ComReg has again
requested that An Post gives this issue the priority it needs and deserves
and will also continue working on other remedies to ensure compliance.

It is imperative that significant improvements are secured in the day-to-day
performance for the remainder of this year.  Equally important it is also
imperative that An Post complies with its assurance that there will be no
repetition of the delays experienced by its customers last Christmas.

The full document ComReg 03/107 is available on the ComReg Web site,
http://www.comreg.ie

Issued By
Tom Butler
Public Affairs Manager, ComReg
Phone: 01 804 9639
Mobile: 087 2536358
E-mail: tom.butler@comreg.ie

                              * * *

An Post made this response to the regulator's statement:

An Post has received the ComReg report and we will be studying it carefully
over the next few days.  We are disappointed to note that the results are
down relative to the previous quarter.

An Post also carries out an extensive quality of service survey, which shows
a more positive performance of 88 percent for the same period.  The company
is concerned about this variance in findings and we will be working with
ComReg in an effort to identify the reasons behind it.


AN POST: ISME Wants Full Privatization Following ComReg's Report
----------------------------------------------------------------
ISME, the Business Organization, has called into question the role and
judgment of ComReg in approving postal increases in advance of a report
commissioned by them verifying increased levels of inefficiencies in An
Post.

The report confirms, if confirmation was needed, the highly inefficient
operation being run by An Post management, whereby 71% of single piece mail
items were delivered next day against a target of 94% laid down by ComReg.
Interestingly it does not mention the 300,000 letters that are currently
piled up in a warehouse in Athlone, which have not been delivered.

Commenting, Mark Fielding ISME Chief Executive stated: "It is
incomprehensible that the old dinosaur, which is An Post, has been recently
rewarded with price increases of between 17% and 104%, based on improved
efficiencies and less than a week later a report is issued confirming that
the problem is worse than ever.  It is clear that An Post are not delivering
on cost reduction, not delivering on efficiency and in some cases are not
delivering at all.

The ease with which An Post has pulled the wool over the eyes of the
Regulator is inexcusable, incomprehensible and begs the question what is the
role of the Regulator in ensuring a competitively priced quality postal
service".

He called on the Minister for Communications Dermot Ahern to stop the
charade and bring An Post into the real world by implementing the full
privatization of the Organization without delay, which would help introduce
efficiencies to ensure that customers are provided with the appropriate
service required.


AN POST: Insists Cost can be Minimized Without Survival Plan
------------------------------------------------------------
An Post insisted it does not need a survival plan as it emerged that it will
record another loss this year and the next, BizWorld said citing the Irish
Times.

The courier increased the price of stamps from 41c to 48c, giving it renewed
hopes that it could recover from its loss last year.  An Post Group reported
a pre-tax operating loss of EUR17.4 million in 2002.  Costs, which rose 11%
have for a second year, pushed it into deficit.

When an exceptional charge of EUR52.5 million -- for
restructuring -- is included, the total losses reported for 2002
are EUR70.5 million, its biggest ever deficit since An Post was
established as a commercial State company in 1984.  But a new review of its
business revealed that instead of posting a profit of EUR1 million as it
previously expected, it will plunge into another loss this year and in 2004.

An Post, which is expected to base its new business strategy on the review,
however, told the Government it does not need a survival plan.  It is
scheduled to present a new business model to the Minister for Communications
Dermot Ahern later this month.


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


KONINKLIJKE AHOLD: Denies Tax Row Would Complicate Disco Sale
-------------------------------------------------------------
Disco, the Argentine unit of Dutch retailer Ahold, said its planned sale of
the retail chain will go on as scheduled despite a dispute with the local
tax agency, according to Reuters.  Argentina's No.2 supermarket chain is
currently facing demands from the Argentine tax agency for taxes on US$350
million in bonds it issued in May 1998.

"Disco believes the agency's demands are unjustified and have no legal
basis," a company spokesman said.  He also believes the case won't block
Ahold's plan of selling the unit.  Ahold expects to resolve the
administrative phase of the process by year's end.

But according to the report, a government source familiar with the matter
said the row would complicate a possible transaction.

"We have asked that the company's assets be blocked... It goes without
saying this will complicate the sale," the source said, speaking on
condition of anonymity.

The world's third-largest food retailing company is selling operations in
Argentina, Chile, Brazil, Peru and Paraguay to reduce its debt of EUR12
billion (US$13.2 billion).  Both parties can sue in federal court if they
cannot settle the matter themselves, according to the report.

Ahold said it is also currently challenging to overturn the freezing of
Disco's assets as part of a case brought by former account holders at failed
Uruguayan bank, Banco Montevideo, part of the Velox group that was Ahold's
partner in Disco from 1998 to 2002.


UNITED PAN-EUROPE: Completes Balance Sheet Restructuring
--------------------------------------------------------
United Pan-Europe Communications N.V. (EURONEXT Amsterdam: UPC) announced
Wednesday the Effective Date of the company's emergence from its Chapter 11
proceedings, Dutch Moratorium and Akkoord proceeding.  The company has
completed all the required actions and satisfied all the conditions to the
effectiveness of its Second Amended Plan of Reorganization.

The Plan was confirmed by the U.S. Court on February 20, 2003.  The Dutch
District Court ratified the Dutch Moratorium and Akkoord proceeding on March
13, 2003.  An appeal by InterComm Holdings L.L.C., a creditor in the Dutch
Moratorium proceeding with a EUR1.00 claim and one vote for voting purposes,
was rejected by the Dutch Supreme Court on August 26, 2003.

The Company's recapitalization has substantially de-leveraged UPC's balance
sheet through the conversion of EUR925 million accreted value of Belmarken
Notes, and EUR4.31 billion accreted value of UPC Notes into common stock of
UGC Europe, Inc. (previously known as New UPC, Inc.), a newly formed U.S.
holding company incorporated in Delaware.  UPC will become a private
subsidiary of UGC Europe.  The recapitalization has resulted in the
elimination of approximately 65% of UPC's outstanding consolidated debt and
all of its convertible preference shares, substantially reducing its annual
interest costs and putting UPC in a significantly stronger financial
position.

Gene Schneider, Chairman and Chief Executive Officer of UGC Europe said: "We
are delighted to announce UPC's emergence from restructuring.  This is a
memorable day for the company and marks the end of a challenging period for
all involved in the reorganization process.  UPC today emerges with a strong
balance sheet, confident that it has the ability to realize its full
potential.  I would like to sincerely thank our employees, customers and
creditors who have continued to support us through this process.  We look
forward to achieving the results that underlined their confidence in the
company".

Consistent with the recapitalization, UPC's ADR program will be cancelled as
of [Wednesday].  It is expected that September 4, 2003 will be the last day
of trading for UPC ordinary shares A on the Euronext Amsterdam with the
listing terminating on September 5, 2003.

UGC Europe expects to issue 50 million shares of its common stock to UPC's
creditors and equity holders as described below.  These shares will be
quoted on the NASDAQ National Market as of [Wednesday].  Approximately 16.25
million of these shares were issued to third party holders of UPC Notes and
32.75 million shares were issued to UnitedGlobalCom, Inc. in exchange for
the Belmarken Notes and UPC Notes owned by UGC.  In addition, an aggregate
of 1 million UGC Europe shares will be issued to holders of UPC's Preference
Shares, Ordinary Shares A and Priority shares (including UGC) pursuant to
the Plan, including the Dutch Implementing Offer, and this distribution
began [Wednesday].  In addition, UGC Europe has reserved additional shares
of its common stock to settle any additional claims in accordance with the
Plan and the Akkoord.

As previously announced, bank lenders under the UPC Distribution Holding
B.V. bank facility had extended until September 30, 2003, waivers of the
defaults arising as a result of the Company's decision not to make interest
payments under its outstanding UPC Notes.  As a result of the company's
emergence from restructuring, the waivers are no longer needed and the bank
facility remains in place.

United Pan-Europe Communications N.V. is one of the leading broadband
communications and entertainment companies in Europe.  Through its broadband
networks, UPC provides television, Internet access, telephony and
programming services.  UPC's shares are traded on Euronext Amsterdam
Exchange (UPC).  UPC is majority owned by UnitedGlobalCom, Inc. (NASDAQ:
UCOMA).


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


ELEKTRIM SA: CEO Willing to Compromise with Vivendi on PTC Sale
---------------------------------------------------------------
Elektrim Chairman Piotr Nurowski is positive that he will be able to find a
compromise with Vivendi Universal SA over the sale of their jointly held 51%
stake in polish mobile telephone company Polska Telefonia Cyfrowa.

According to AFX News, Nurowski told a press conference recently Elektrim
and Vivendi may propose that Deutsche Telekom raise its EUR1 billion bid.  A
raise of the bidding price "would be satisfactory for everybody," he said.

Zygmut Solorz, Elektrim's largest shareholder and president of its
supervisory board, agreed a compromise with Vivendi could be found.  He
said: "According to Elektrim's creditors, the Deutsche Telekom offer can be
accepted only if the interests of Elektrim are guaranteed."

Deutsche Telekom recently offered to buy the 51% stake of Polska Telefonia
from telecom holding Elektrim Telekomunikacja, owned by both Vivendi and
Elektrim.  The French have supported the bid, while Elektrim had shown
hostility, saying it won't be pushed around by the telecom giants and will
prevent a sale of its assets should it choose so.

Elektrim has filed a case against Vivendi, contesting its ability to respond
on its own to the Deutsche Telekom bid.  TCR-Europe previously said analysts
suspect Elektrim is trying to force Deutsche Telekom to hike its offer.

Polska Telefonia is Poland's largest mobile operator and is profitable.  It
has 5.6 million subscribers as of the end of June, and is expected to post
EUR100 million in net profit this year.  Poland is also one of the most
populous states in Eastern Europe, and only has a mobile phone penetration
rate of 40%, leaving plenty of space for growth.


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


ALFA BANK: Standard & Poor's Affirms 'C' Short-term Rating
----------------------------------------------------------
Standard & Poor's affirmed Alfa Bank's 'C' short-term rating at 'C' and
upgraded its long-term rating to 'B' from 'B-', reflecting the improvements
in the economic and operating environment in Russia.  The outlook is stable.

Russia's economic and operating environment is now into its fourth year of
rebound and expansion, according to Standard & Poor's credit analyst Scott
Bugie.  The development is influenced by Russia's oil and gas exports,
high-energy prices, as well as progress in economic reforms.  The
government's balanced budget and reduced debt also contributed to the
favorable condition.

"A direct consequence of these trends is that the loan and security
portfolios of Russian banks are in better shape than a few years ago," added
Standard & Poor's credit analyst Irina Penkina.

But Standard & Poor's credit analyst Ekaterina Trofimova warns that upward
potential for Russian bank ratings remains limited:
"The Russian banking industry is still vulnerable to a reversal of the
fortunes of the national economy."


MDM BANK: Short-term 'C' Rating Affirmed
----------------------------------------
Standard & Poor's affirmed MDM Bank's 'C' short-term ratings at 'C' and
upgraded its long-term rating to 'B' from 'B-', reflecting the improvements
in the economic and operating environment in Russia.  The outlook is stable.

Russia's economic and operating environment is now into its fourth year of
rebound and expansion, according to Standard & Poor's credit analyst Scott
Bugie.  The development is influenced by Russia's oil and gas exports,
high-energy prices, as well as progress in economic reforms.  The
government's balanced budged and reduced debt also contributed to the
favorable condition.

"A direct consequence of these trends is that the loan and security
portfolios of Russian banks are in better shape than a few years ago," added
Standard & Poor's credit analyst Irina Penkina.

But Standard & Poor's credit analyst Ekaterina Trofimova warns that upward
potential for Russian bank ratings remains limited: "The Russian banking
industry is still vulnerable to a reversal of the fortunes of the national
economy."


MENATEP: S&P Affirms 'CCC+' Long-term Rating; Outlook Revised
-------------------------------------------------------------
Standard & Poor's revised its outlook on Menatep St. Petersburg to
developing from stable, and affirmed its 'CCC+' long-term and 'C' short-term
ratings on the bank.  The action reflects improvements in the economic and
operating environment in Russia.

Russia's economic and operating environment is now into its fourth year of
rebound and expansion, according to Standard & Poor's credit analyst Scott
Bugie.  The development is influenced by Russia's oil and gas exports,
high-energy prices, as well as progress in economic reforms.  The
government's balanced budged and reduced debt also contributed to the
favorable condition.

"A direct consequence of these trends is that the loan and security
portfolios of Russian banks are in better shape than a few years ago," added
Standard & Poor's credit analyst Irina Penkina.

But Standard & Poor's credit analyst Ekaterina Trofimova warns that upward
potential for Russian bank ratings remains limited:
"The Russian banking industry is still vulnerable to a reversal of the
fortunes of the national economy."


OJSC COMMERCIAL BANK: S&P Affirms Short-term Ratings at 'C'
-----------------------------------------------------------
Standard & Poor's affirmed OJSC Commercial Bank Petrocommerce's short-term
ratings at 'C' and upgraded its long-term rating to 'B' from 'B-',
reflecting the improvements in the economic and operating environment in
Russia.  It also raised its Russia national scale rating on Petrocommerce
Bank to 'ruA' from 'ruBBB+'.  The outlook is stable.

Russia's economic and operating environment is now into its fourth year of
rebound and expansion, according to Standard & Poor's credit analyst Scott
Bugie.  The development is influenced by Russia's oil and gas exports,
high-energy prices, as well as progress in economic reforms.  The
government's balanced budged and reduced debt also contributed to the
favorable condition.

"A direct consequence of these trends is that the loan and security
portfolios of Russian banks are in better shape than a few years ago," added
Standard & Poor's credit analyst Irina Penkina.

But Standard & Poor's credit analyst Ekaterina Trofimova warns that upward
potential for Russian bank ratings remains limited:
"The Russian banking industry is still vulnerable to a reversal of the
fortunes of the national economy."


URAL-SIBERIAN: Short-term 'C' Ratings Affirmed
----------------------------------------------
Standard & Poor's revised its outlook to positive from stable on
Ural-Siberian Bank OJSC, and affirmed its 'B-' long-term and 'C' short-term
ratings on the bank.  The action reflects improvements in the economic and
operating environment in Russia.

Russia's economic and operating environment is now into its fourth year of
rebound and expansion, according to Standard & Poor's credit analyst Scott
Bugie.  The development is influenced by Russia's oil and gas exports,
high-energy prices, as well as progress in economic reforms.  The
government's balanced budged and reduced debt also contributed to the
favorable condition.

"A direct consequence of these trends is that the loan and security
portfolios of Russian banks are in better shape than a few years ago," added
Standard & Poor's credit analyst Irina Penkina.

But Standard & Poor's credit analyst Ekaterina Trofimova warns that upward
potential for Russian bank ratings remains limited:
"The Russian banking industry is still vulnerable to a reversal of the
fortunes of the national economy."


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


SCANDINAVIAN AIRLINES: Farms out Parts of Revenue Division
----------------------------------------------------------
As an element of Turnaround 2005 -- SAS Group's comprehensive savings
program -- SAS Management has decided to outsource parts of Revenue
Information to an external company.

The Revenue Information department performs a list of tasks for Scandinavian
Airlines and other airlines.  The department is in charge of settlement with
travel agencies all over the world, inter-airline settlement as well as
several revenue and information systems.

The decision is the result of an intensive study, which has been underway
since the beginning of 2003.  Assisted by an external consulting firm;
management, employees and the employees' organizations have studied various
savings options, internal as well as external.

The conclusion was that by applying an internal solution, SAS would be able
to save DKK40 million annually (SEK50 million), while DKK70 million (SEK85
million) could be saved by moving parts of the activities outside the
company.  In return, SAS keeps the IT platform and the work with SAS'
revenue and information systems.

"The decision we have taken is entirely in line with what several other
European airlines did several years ago," says Steen Wulff, Director of SAS
Revenue Information.

The decision means that the staff in the affected departments in Copenhagen
will be reduced from 275 to about 105 employees.  SAS will offer various
support schemes to the redundant employees.

During the process, negotiations have been carried out with several
potential external suppliers.  The relevant suppliers now under evaluation
are all based in India.  The move is expected to take place in the summer of
2004.

Earlier this year, SAS signed the United Nations Global Compact.  This
agreement obliges the signatories to observe standards for environmental
protection, human rights and employees rights such as described in the Human
Rights Convention.  This has meant that SAS has introduced a new purchasing
policy.  The new requirements have been included since the start of the
process and will be elaborated and specified during the negotiations with
the new partner.


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


SWISS INTERNATIONAL: Concludes Additional Sales Agent Agreement
---------------------------------------------------------------
Swiss WorldCargo, the air cargo division of Swiss International Air Lines
Ltd., and Polar Air Cargo concluded an Appointed Sales Agent (ASA)
agreement.  The new accord covers all sales activities in the Emirates for
Polar Air flights.

Swiss WorldCargo and Polar Air Cargo are newly cooperating in the United
Arab Emirates with flights out of Dubai. Both parties have signed an
Appointed Sales Agent (ASA) contract, which became effective on September 1.
The parties have signed and built a solid cooperation deal for prosperous
air cargo business into and out of the United Arab Emirates via Polar Air
flights.

The dedicated Swiss WorldCargo staff in Dubai will ensure the highest
customer care performance not only for Swiss WorldCargo services but also
for all Polar Services out of Dubai and the United Arab Emirates.  The
cooperation agreement includes all sales duties as well as additional
services like loading and warehouse supervision in order to optimize the
allocated capacity for each Polar Air Cargo flight.

Effective September 1st, Polar Air Cargo implemented a third weekly flight
from India (Bombay BOM - Madras MAA) to Europe (Amsterdam - AMS), routed via
Dubai (DXB).

Oliver Evans, Executive Vice President, Serge Tripet, Vice President Area
Management Far East and Asia, and Vasco Furtado, Regional Manager Gulf, Iran
& Sri Lanka from Swiss WorldCargo together with Hendrik Falk, Vice President
Sales Europe, Middle East, Africa and Indian Subcontinent from Polar Air
Cargo are pleased to conclude this new partnership, which will ensure that
customers of both airlines continue to receive the outstanding professional
service and attention that they have come to expect from the Swiss
WorldCargo organization.  Now Polar Air Cargo customers will also profit
from these Swiss-style services.

Swiss WorldCargo's responsibility for selling Polar Air Cargo products and
services in the United Arab Emirates will complement the already existing
General Sales Agent contract in India.  The new duties include all aspects
of customer services and indoor sales such as cargo consignment
reservations, providing product and service information and responding to
customer feedback.  Swiss WorldCargo is committed to offering its customers
superior service and advice as a niche belly carrier.  Polar Air Cargo
complements the offer to the customer base as a provider of global freighter
services which are cost effective and specialized time-definite airport to
airport solutions.  Both service providers are now offering a full range of
services and variety of capacity and destinations not only out of India but
now also out of the United Arab Emirates

Swiss WorldCargo is the cargo division of Swiss International Air Lines Ltd.
With its global network of more than 150 destinations in over 80 countries
and its broad range of airfreight products and services, Swiss WorldCargo
generates genuine added value for its customers and makes a substantial
contribution to SWISS' earnings results.
Please find more information on http://www.swissworldcargo.com

Polar Air Cargo Inc. is a wholly owned subsidiary of Atlas Air Worldwide
Holdings Inc. [NYSE: CGO].  Polar operates a fleet of Boeing 747 freighters
on a time-definite, cost-effective, scheduled service network connecting
Asia, Europe, Australia and the Americas. Learn more at
http://www.polaraircargo.com

CONTACT:  SWISS WORLDCARGO
          Bernd Maresch
          General Manager, Marketing, Communications and PR
          E-mail: bernd.maresch@swiss.com
          Phone: +41 1 564 50 50


ZURICH FINANCIAL: Financial Strength, Debt Ratings Affirmed
-----------------------------------------------------------
A.M. Best Co. has affirmed the financial strength ratings of A (Excellent)
of Zurich Financial Services Group, Switzerland, and its core subsidiaries.
At the same time, A.M. Best has affirmed the ratings on debt instruments
issued or guaranteed by Zurich Financial Services Group or its core
subsidiaries. (See detailed debt issues listed below).  The outlook remains
positive.

The ratings reflect Zurich Financial Services Group's improved earnings
(earnings in the first half of 2003 were US$0.7 billion -- an improvement of
US$2.7 billion since the first half of 2002), in line with A.M. Best's
expectations; the reduction of the reported half year consolidated combined
ratio to 98.8% from 119.7%; excellent business position as a general insurer
in its selected core markets (Switzerland, Germany, Italy, Spain, United
Kingdom and North America); and excellent consolidated risk-based
capitalization.  The main offsetting factor continues to be the weak
performance and the potential for further reserve strengthening at Centre
(currently rated A (Excellent) and under review negative).  Any
deterioration over and above that factor could trigger a review by A.M. Best
of Zurich Financial Services Group's ratings outlook.

Excellent business profile -- Zurich Financial Services Group has a global
presence as a leading and diversified provider of non-life and life
insurance products. A.M. Best expects consolidated non-life premium to
continue growing during 2003, benefiting from rate increases and favorable
exchange rates, but they are to stabilize from 2004 onwards.  During 2003,
life premium will be negatively affected by lower demand level resulting
from weakened capital markets and the divestment of the U.S. and U.K. life
operations (Zurich Life U.S. and Zurich Life Assurance Company).  However,
A.M. Best believes that the 2002 acquisition of Deutsche Bank's insurance
operations and Zurich Financial Services Group's access to Deutsche Bank's
distribution network will partially offset the effect of this fall in
demand.

Improved operating performance since 2002 -- Consolidated profitability is
being restored through Zurich Financial Services Group's strict
implementation of its aggressive global profit and risk-based capital
improvement programs focused on reducing costs and enhancing efficiency
(underwriting and claims management) and by disposing of non-core
subsidiaries not meeting Zurich Financial Services Group's profitability
target.  Results in 2002 were negatively impacted by operational improvement
charges, weakening financial markets, European floods and specifically, by
the write-off of US$950 million of intangible assets and a US$1.8 billion
reserve strengthening after-tax.  The effect of the profit improvement
program is likely to be fully reflected in 2003 and 2004 when Zurich
Financial Services Group will move towards its medium-term operating
consolidated return on equity (ROE) target of 12%.

Restored risk-based capitalization-- Zurich Financial Services Group's
capitalization is excellent according to the A.M. Best risk-based capital
model.  The losses borne in 2002 were partially offset by the successful
completion of a US$2.5 billion rights issue in October 2002, ensuring that
Zurich Financial Services Group's consolidated capital base remained at a
level commensurate with an Excellent rating.  The divestment of some
subsidiaries, the exit from some lines of businesses and the reduction in
equity exposure will lead to capital savings of approximately US$2 billion
in 2003.  This, coupled with a potential US$500 million hybrid issue in the
second half 2003, will further strengthen Zurich Financial Services Group's
capital base.

A.M. Best will continue to monitor the core status of Zurich Financial
Services Group's subsidiaries as the group strategy unfolds.

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

CONTACT:  A.M. BEST CO.
          Public Relations:
          Jim Peavy
          Phone: +(1) 908-439-2200, ext. 5644
          E-mail: james.peavy@ambest.com

          Rachelle Striegel
          Phone: +(1) 908-439-2200, ext. 5378
          E-mail: rachelle.striegel@ambest.com

          Analysts
          Jose Sanchez-Crespo
          Phone: +(44) 20-7626-6264
          E-mail: jose.sanchez-crespo@ambest.com

          Simon Martin
          Phone: +(44) 20-7626-6264
          E-mail: simon.martin@ambest.com


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


ARC INTERNATIONAL: Announces Appointments and Resignations
----------------------------------------------------------
ARC International plc (LSE: ARK), a world leader in configurable
System-On-Chip platform technologies, announces the appointment of a new
non-executive chairman, two non-executive directors and the resignation of
three non-executive directors.

Appointments

The Board of ARC announces the appointment of Dr. Peter van Cuylenburg as
Non-executive Chairman, replacing Jan Tufvesson who resigned earlier this
year.  In addition, Richard Barfield and Dr. Geoff Bristow will also join
the Board as Non-executive Directors effective September 3, 2003, to sit
alongside Jez San who was appointed to the Board in November 2002.  Dr.
Geoff Bristow will serve as Senior Independent Director.

Dr. Peter van Cuylenburg, 55, has had a distinguished career in the hi-tech
industry, spanning more than 30 years.

He is currently Executive Chairman of SealedMedia Ltd. and Non-executive
Chairman of Anadigm Ltd., Transitive Corporation and Elixent Ltd.  He also
serves on the Boards of JNI Corporation and QAD Inc., both NASDAQ listed
corporations.

Dr. Geoff Bristow, 49, currently runs a portfolio of privately held
technology companies in the U.K. and California.  Previous U.K. public
company positions have included Chief Executive of Wordplex Information
Systems plc, Executive Chairman of Alphameric plc and Chairman of Future
Internet Technologies plc. In California, he was Chief Operating Officer of
Poqet Computer Corp, before its sale to Fujitsu.

Richard Barfield, 46, is the Chief Executive of Spring Group plc, the U.K.'s
leading IT staffing and technology recruitment company.  Prior to this he
held the position of Finance Director of Northgate Information Solutions
plc.  He has also occupied senior financial positions with BellSouth
Corporation and SmithKline Beecham.

Departures

In addition, the Board of ARC today announces the resignation of
Dennis Millard as Non-executive Director, following his three-year term of
office.  Mike Risman, who joined in March 2000 and Gregorio Reyes, who
joined in August 2000, have also announced their intention to resign as part
of the Board transition process and will leave the Company on 21 October
2003.

Mike Gulett, Chief Executive of ARC International PLC, said: "I would like
to thank Dennis Millard, Mike Risman and Greg Reyes for their valuable
contribution and commitment to the business over the last three years, a
period which included great change and progress for the Company as well as
its flotation on the London Stock Exchange.  I'd personally like to pass on
my thanks and best wishes.

"I am delighted to welcome Peter van Cuylenburg, Richard Barfield and Geoff
Bristow to the Board.  They offer a wealth of experience and knowledge
gained from their strong background in the high-technology industry and I
believe they will be an excellent asset to the business."

                              * * *

Arc International reported pre-exceptional net losses of GBP5.6 million last
month.  Its turnover was GBP2.4 million, down 17% sequentially.

CONTACT:  ARC INTERNATIONAL PLC
          Mike Gulett, Chief Executive Officer
          Phone: +1 (408) 437 3400
          Monica Johnson, Chief Financial Officer
          Phone: +1 (408) 437 3400

          TULCHAN COMMUNICATIONS
          Julie Foster, Consultant
          Phone: +44 (0) 20 7353 4200


AVIS EUROPE: Half-year Profits Fall 69%; Chief Executive Quits
--------------------------------------------------------------
Avis Europe CEO Mark McCafferty resigned in the wake of a significant fall
in half-year pre-tax profits of the car hire group.  The company posted a
69% drop in half-year pre-tax profits to EUR15.3 million (GBP10.6 million)
due to the war in Iraq and the economic downturn.  It also slashed its
interim dividend from 2p to 1.3p.

Mr. McCafferty, who agreed to stay on until early next year, predicts no
recovery yet on the long-haul travel, although he said progress has been
made in the leisure market over the past two months.  He also did not
predict any imminent recovery in the corporate level.

But he maintained: "the business is well positioned for recovery. Although
the absolute profit is down, many people would say it's been extremely
well-managed during the most difficult period the travel industry has ever
seen."

For himself, Mr. McCafferty said earlier he wanted to pursue opportunities
in the private equity market.

According to him, he had had "some approaches" from private equity houses
"to work with them on deals", though no job to go to, according to the
Telegraph.

The fact prompted one transport analyst saying, "The fact that he's resigned
with nothing to go to suggests he can't get too excited about recovery at
Avis."


BAE SYSTEMS: India Picks Hawk Advanced Jet Trainer
--------------------------------------------------
BAE SYSTEMS welcomes the news that the Indian Government has selected the
Hawk advanced jet trainer aircraft for the Indian Air Force and looks
forward to finalization of the contract with the appropriate authorities.
This is the third selection of Hawk this year (India, U.K. and Bahrain).
The proposal for 66 aircraft will cover not only the aircraft but also
support.

The first batch of 24 aircraft will be built in the U.K. and the remaining
42 aircraft manufactured in India through a partnership with India's
Hindustan Aeronautics Limited.

Commenting on the news BAE SYSTEMS Chief Executive Mike Turner said, "I am
delighted that the Indian Government have chosen the world's best selling
advanced jet trainer -- the Hawk -- for the Indian Air Force.  This proposal
is not only great news for BAE SYSTEMS but also for the manufacturing
capability and aerospace industries of the U.K. and is a reflection of the
support given by the U.K. Government in this bid.  The company is looking
forward to continue working with Hindustan Aeronautics Limited, a long term
partner on a variety of programs".

The aircraft will be manufactured at the company's Brough site in East
Yorkshire, with flight testing taking place at Warton in Lancashire.

The Indian Air Force are to receive an advanced version of the Hawk 100
series featuring a glass cockpit with Hands-On-Throttle-And-Stick (HOTAS)
controls, head down Multi-Function Displays (MFD) and a Head Up Display
(HUD).

About BAE SYSTEMS:

BAE SYSTEMS is an international company engaged in the development, delivery
and support of advanced defense and aerospace systems in the air, on land,
at sea and in space.  The company designs, manufactures and supports
military aircraft, surface ships, submarines, radar, avionics,
communications, electronics and guided weapon systems.  It is a pioneer in
technology with a heritage stretching back hundreds of years.  It is at the
forefront of innovation, working to develop the next generation of
intelligent defense systems.  BAE SYSTEMS has major operations across five
continents and customers in some 130 countries.  The company has 100,000
people and generates annual sales of approximately GBP12 billion through its
wholly owned and joint venture operations.  BAE SYSTEMS, innovating for a
safer world.


BRITANNIC GROUP: Resumes Annual Bonus, Dividend Payments
--------------------------------------------------------
At the beginning of the year we embarked upon a series of actions to
reposition the Group and improve its financial strength with the objective
of recommencing the payment of annual bonuses to Britannic Assurance with
profit policyholders and dividends to shareholders.  In very tough market
conditions, we have made good progress with these actions and produced a
robust set of results.

During the first-half we completed the closure of Britannic Assurance to new
business and disposed of Britannic Money.  In addition, we reduced the
equity exposure of Britannic Assurance to protect solvency against the
continued equity market falls in the first quarter.  We also continued with
our program of reducing the risks within Alba Life.  These actions have
resulted in a much-improved free asset ratio of 10% for Britannic Assurance.

Achieved operating profit before tax and exceptional items of GBP44 million
reflects reduced profits at Britannic Assurance as a result of lower opening
asset values, partially offset by better performances from Britannic
Retirement Solutions and Britannic Money.  Britannic Asset Management
produced a good result in difficult market conditions.

Achieved profit shareholders' funds were flat at 502 pence per share, mainly
being held back by the loss on disposal of Britannic Money.

Retail investment, life and pension sales of GBP38 million APE are now
beginning to reflect the closure to new business at Britannic Assurance
during the period and the concentration at Britannic Retirement Solutions on
margin improvement over sales growth.

As indicated in our 2002 year-end results, we will not be paying an interim
dividend for 2003.

Outlook

As outlined above, we have made good progress against our plan for the
resumption of annual bonus declarations and the payment of dividends.  In
addition, equity markets have returned to some stability and our preliminary
assessments of our risk based capital requirements are encouraging.  During
the balance of the year we plan to finalize the revised support arrangements
for
Alba Life, complete our risk based capital assessments and renegotiate our
banking arrangements.  We are confident of achieving these steps, which
should then allow us to resume annual bonus and dividend payments.

We continue to believe that the group has a sustainable annual dividend
paying capacity, before any debt capital repayments, of between 20p and 25p
per share.

This is based on medium term assumptions of total equity returns of 7% per
annum from the 2002 year-end market level.

Business and financial review

This business commentary refers to profits on an achieved profits basis as
these best reflect the underlying performance of the long-term assurance
businesses.

Britannic Assurance

(a) Achieved operating profit before tax and exceptional items
    of GBP44 million (HY 2002: GBP58 million).

(b) Sales GBP10 million APE (HY 2002: GBP13 million).

(c) Equity backing ratio stabilized at 30%.

(d) Closure to new business complete.

(e) Accrual of bonuses.

Achieved operating profit of GBP44 million before tax and exceptional items
(HY 2002: GBP58 million) is lower largely due to lower opening assets
following the poor investment market in 2002.  However, the result was
positively impacted by better than expected new business profits, a
reduction in the risk discount rate of 0.5% to bring us more into line with
industry practice and the absence of the impact of annuitant mortality
reserve strengthening experienced last year.

We have successfully completed the closure of Britannic Assurance to new
business.  This action will reduce the on going cost base of the business
from approximately GBP65 million to GBP45 million.  The one off cost to
implement the closure is GBP16 million, of which the shareholders' impact is
GBP4 million. Sales of GBP10 million APE are beginning to reflect the phased
withdrawal from writing new business.

Following a review of all our lines of with profits business, we believe
that certain of them will warrant an annual bonus at the end of the year
based on the performance of the fund to date. Accordingly, we have accrued a
level of bonus at the half-year for this business.

Further action was taken during the first quarter of the year to protect the
solvency of Britannic Assurance by reducing the equity backing ratio to 30%.

We continue to expect that medium term returns from equities will exceed
returns on fixed interest investments and as such do not anticipate further
significant reductions in the equity backing ratio.

Our focus on capital management resulted in a much-improved free asset ratio
of 10.0% including implicit items and 6.7% excluding implicit items as at
June 30, 2003.

Britannic Asset Management

(a) Operating profit, before exceptional item, of GBP4 million
    (HY 2002: GBP6 million).

(b) Retail sales of GBP102 million (HY 2002: GBP110 million).

(c) Continued focus on improving investment performance, product
    development and managing costs.

Whilst operating profit of GBP4 million is lower than last year, it is a
very robust result bearing in mind the pressure on revenues from the
significantly lower average level of equity markets during the period.  This
result has benefited from the action taken last December to reduce headcount
and from tighter control over discretionary spending during the first half
of this year.

Total retail sales of GBP102 million are similar to this period last year,
despite the loss of sales resulting from the closure of distribution
channels at Britannic Assurance and against a market that experienced a
severe contraction.

We benefited from more than 20% growth through the partnership distribution
channel.  In particular, Britannic Asset Management successfully launched a
Secured Growth ISA and Secured Growth Plan for this channel that resulted in
almost GBP30 million of new business.  IFA sales are also ahead of target
for the period.

The Britannic Corporate Bond Fund remains popular with the IFA and
partnership distribution channels and continues to perform well.  The
product is one of the most recommended bond products by IFA's, where sales
are up more than 100% over the same period last year.

On the institutional side of the business, new business from pooled pension
funds is down only slightly on the same period last year, while a GBP14
million fixed interest mandate on the segregated side of the business
contributed to growth. Innovative product developments in this area of the
business, including the launch of a Long Corporate Bond Fund, are also
attracting client interest.  However, the international institutional arm is
behind target and consequently we have adopted a prudent approach and
written off the remaining goodwill (GBP4 million) from the Blairlogie
acquisition.

Britannic Asset Management's focus is to continue to improve fund
performance whilst seeking out new higher margin business opportunities.
Additional resources continue to be added in growth areas, such as the fixed
interest team, and innovative products continue to be developed to meet
customer needs.
Britannic Retirement Solutions

(a) Achieved operating profit of GBP4 million (HY 2002: loss of
    GBP4 million).

(b) Sales of GBP174 million (HY 2002: GBP158 million).

(c) Continued focus on profitability.

Achieved operating profit for the period of GBP4 million (HY 2002: loss of
GBP4 million), puts us well ahead of our objective of break-even during
2003.  This was achieved against the backdrop of a better annuity market
generally, from the focus on margin improvement over sales growth and from a
cost reduction exercise during the period.

Investment variances were significantly lower during the period following
much closer investment matching.

Sales growth during the period was modest at GBP174 million (HY 2002: GBP158
million) reflecting the focus on improving margins, which increased from
9.5% to 28.1%.

Having now established Britannic Retirement Solutions as a major participant
in the enhanced annuity market, the focus will be on profitability over
growth for the remainder of the year.  The annuity market is now, however,
showing signs of increased competition.

Britannic Money

(a) Operating loss of GBP1 million (HY 2002: loss of GBP4
    million).

(b) Loss on disposal of GBP25 million before tax.

Britannic Money was disposed of for GBP19 million in cash on 30 June 2003.
The transaction has resulted in a loss of GBP25 million before tax.  The
sale proceeds will remain as part of shareholders' retained capital in the
Britannic Assurance life fund.

Whilst, as expected, Britannic Money broke even at the operating level (the
GBP1 million loss resulting from re-structuring costs), the business was
considered no longer core to the Group's strategy.  In addition, the
continued competitiveness of the mortgage market and the lack of synergies
of this business with the rest of the Group made it difficult for Britannic
Group to earn an acceptable return on invested capital.

Alba Life

Alba Life is an investment of the estate of the Britannic Assurance with
profit fund.  It is a relatively weak fund, with a free asset ratio of 4.5%
including implicit items and 1.9% excluding implicit items as at June 30,
2003.

During the period we continued with the program to reduce the risks within
Alba Life as much as possible, in order to secure the long-term benefits of
policyholders. This has involved the disposal of all of the equity holdings,
entering into a number of derivative transactions to hedge guaranteed
annuity options, and starting to reduce significantly the exposure to
property through selected disposals.  This is designed at moving to a more
closely matched balance sheet position, thereby substantially removing
investment risk.  We have further strengthened reserves for mortality and
mortgage endowment mis-selling.

We are also reviewing the arrangements between Britannic Assurance and Alba
Life for the provision of capital to support solvency, bonus and investment
policy.

This is aimed at securing an outcome, which is fair to both Britannic
Assurance and Alba Life policyholders.  It is hoped that these arrangements
can be concluded shortly.

Capital

Britannic Assurance had a realistic estate of approximately GBP150 million
as at December 31, 2002.  This is based upon a realistic assessment of
liabilities and after allowing for approximately GBP300 million for the
expected costs of guarantees and the glidepath.  This excludes all of the
assets in the shareholders' retained capital (SRC) and the shareholders'
funds of Britannic Assurance in aggregate amounting to GBP750 million.  Alba
Life has a positive value on a realistic basis and accounts for a large
proportion of the GBP150 million estate in Britannic Assurance.

A preliminary internal assessment of our risk based capital requirements for
Britannic Assurance and Alba Life indicates that just under half of the
requirement will be provided by the estate of Britannic Assurance and the
balance from the SRC.  Consequently more than half of the SRC and all of the
Britannic Assurance shareholders' funds may represent headroom over these
requirements.  The framework for assessing risk based capital is still under
development both from a regulatory and best practice perspective and as such
these are very preliminary estimates.

To View Full Report And Financials:
http://bankrupt.com/misc/BRITANNIC_GROUP.htm

CONTACT:  BRITANNIC GROUP
          Harold Cottam/Paul Thompson
          Phone: 01564 202271

          CITIGATE DEWE ROGERSON
          Anthony Carlisle/Stephanie Barrett
          Phone: 020 7282 2972


BRITISH AIRWAYS: Passenger Traffic Up Year-on-year
--------------------------------------------------
In August 2003, overall load factor increased 0.1 points to 69.6%.
Passenger capacity, measured in Available Seat Kilometers, was 3.6 %above
August 2002 and traffic, measured in Revenue Passenger Kilometers, was
higher by 4.8%. This resulted in a passenger load factor up 0.9 points
versus last year, to 77.4%.  The increase in traffic comprised a 1.1%
increase in premium traffic and a 5.3% increase in non-premium traffic.  The
statistics are distorted by the power outage in Canada and the East Coast of
the United States.  Cargo, measured in Cargo Ton Kilometers, fell by 0.3 %.

Market conditions

Overall market conditions are broadly unchanged with traffic volumes
remaining very sensitive to yield. Premium volumes have stabilized, but are
however still significantly below levels seen previously.

Strategic Developments

British Airways announced further steps to reduce its distribution costs in
order to improve profitability.  From December 1, 2003, the airline will
introduce a commission based payment scheme of 1% for U.K. travel agents who
make British Airways bookings.  This replaces sector payments, which were
introduced in April 2001.

The airline announced its first set of codeshare flights with OneWorld
partner American Airlines that will ultimately add more than 100 new
destinations to its network.  The codeshare routes, on destinations beyond
British Airways $B!& (B18 US gateway cities and American Airlines (BUK
gateways, will be introduced in phases.  The first cities are Raleigh
Durham, Nashville, Cincinnati, Indianapolis, Minneapolis St Paul,
Pittsburgh, New Orleans, Panama City and San Antonio, bookable now for
travel from September 17.

Speedwing International Limited, a subsidiary of British Airways Plc,
disposed of its trading division Speedwing Mobile Communications to AirRadio
Limited, a company forming part of the Spice Holdings Plc Group.  The
consideration for the sale of the business and assets is  $B!W (B4.6
million.

British Airways was given permission to start flights to Basra in Iraq.  The
airline plans to fly twice a week, via Kuwait, using a Boeing 777 aircraft,
once safety and security clearances have been finalized.

To see figures:
http://bankrupt.com/misc/BRITISH_AIRWAYS_MONTHLY_TRAFFIC_AND_CAPACITY_STATISTICS.htm

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


CABLE & WIRELESS: May Sell U.S. Business to Avoid Closure Costs
---------------------------------------------------------------
Cable & Wireless is involved in negotiations that could possibly save it
from having to shoulder a potential GBP850 million closure costs related to
its U.S. business, according to The Times.

The report said the telecoms carrier is in talks regarding the sale of the
unit to its own management led by Chief Executive Simon Cunningham.  Mr.
Cunningham is said to be working with Blackstone, a private equity and
banking group, which has a mandate to advise U.S. business.

But a deal is yet uncertain due to certain considerations, including the
availability of sufficient financial backing.  Besides, Cable & Wireless is
also still examining other proposals.  A deal could come but several weeks
more.

A spokesman for Cable & Wireless said: "The company is in the process of
reviewing all options for the U.S. business.  We will update investors when
there is something to announce."   He refused to comment further.

A sale of the operation is seen as the better option for Cable & Wireless
considering the potential cost of the closure.  This is because the U.S.
business includes a string of Internet data centers that operate out of
large properties.  The sites are secured on long leases and would incur
substantial penalties if these are broken ahead of schedule.

Cable & Wireless, though, could still opt to shut down the operation with
its more than GBP1.6 billion reserves.

City analysts have given the U.S operation a negative value due to its poor
financial health.  But Mr. Cunningham still believes the U.S. business could
still be saved.

The operation, which includes a coast-to-coast Internet network, lost GBP211
million in cash in the year to March on sales of GBP512 million.

One private equity investor, who has studied the books, and decided not to
bid, said: "The management team have done a great job in taking costs out.
But this remains a big risk: you're stuck with long-term leases and you're
left hoping for an upturn in the market."


GOSHAWK INSURANCE: Changes Board, Management Composition
--------------------------------------------------------
Goshawk Insurance Holdings plc, the specialist international insurance and
reinsurance underwriter, announced Tuesday board and management changes as
the first stage of the Company's operational review announced on July 3,
2003.

Board

David Hooker, Goshawk's Chairman since 1996, will step down from the Board
at the end of the year.  David's retirement, which had originally been
planned for 2002, was postponed at the request of the board.  He has played
a key role in Goshawk's transition from a small Lloyd's agency business into
a listed insurance group.

Goshawk's Nominations Committee, chaired by Simon Miller, the senior
independent non-executive director, has initiated a search to identify an
appropriate successor to David as Chairman.

Senior Management

Russell Brooke joins Goshawk Re, Goshawk's wholly owned reinsurance business
in Bermuda, as Chief Executive and Chief Underwriting Officer.  Russell
joins from ACE Tempest Re where he spent seven years in senior underwriting
roles, most recently as Chief Underwriting Officer for international
business.  Prior to joining ACE Tempest Re Russell worked for the Willis
Group in London where he was a director in non-marine property reinsurance.

Russell's appointment is subject to approval from the Bermuda immigration
authorities.

Andrew Gammell, who is Group Underwriting Director, will relinquish his
day-to-day underwriting responsibilities for Goshawk Re.  This will enable
Andrew to focus more attention on the underwriting of Syndicate 102,
Goshawk's wholly-owned Lloyd's business.  Andrew was responsible for the
formation of Syndicate 102 in 1982 and for building it into a strong Lloyd's
performer over 18 years.

External underwriting review

Following Goshawk's July 3 announcement, KPMG was appointed to undertake an
external underwriting review of Syndicate 102.  This review will be
completed prior to the announcement of the Company's interim results on
September 26, 2003.

Chief Executive, Chris Fagan, commented:

"I am delighted that Russell Brooke has agreed to join us in Bermuda.  His
appointment is a major coup for Goshawk.  Russell's underwriting record as a
catastrophe underwriter at ACE Tempest Re is exceptional and his expertise
will be hugely beneficial to Goshawk Re as we continue to grow our
successful Bermuda operation.

"Our Bermuda reinsurance business continues to perform very strongly.  On
completion of the underwriting review we expect to announce further
appointments in our London operations.  I expect Andrew Gammell's renewed
focus on Syndicate 102 will result in an improved underwriting performance.

"The actuarial and underwriting reviews are progressing well and will help
to provide Goshawk with a more stable underwriting platform from which to
develop our London operations."

CONTACT:  GOSHAWK INSURANCE HOLDINGS PLC
          Chris Fagan, Chief Executive
          Phone: 020 7621 0777

          COLLEGE HILL ASSOCIATES
          James Henderson
          Phil Wilson-Brown
          Phone: 020 7457 2020


IQ LUDORUM: Holt Resigns; Wills Appointed Non-executive Chairman
----------------------------------------------------------------
The company announces that Bill Holt has resigned as executive chairman of
the board and as a director with effect from August 15, 2003 in order to
pursue other interests.

Nicholas Wills, who has been a director since the company's flotation in
August 2000, has been appointed as non-executive chairman.

The board would like to thank Bill for all of his hard work in helping
achieve a successful flotation and throughout his relationship with the
Company.

                     *****

In June, chairman William L. Holt reiterated his prediction in 2001 that
2002 will be a challenging year.  He admitted that the company's primary
goals of increasing revenue and returning to profit were not met.

For the year ended December 31, 2002, IQ-L's turnover amounted to $5,878,000
versus $6,037,000 for 2001. Expenses of $11,259,000 ($12,169,000 in 2001)
resulted in a loss before depreciation, amortization, interest and taxes of
$5,381,000 ($6,132,000 in 2001).  Non-cash charges amounted to $2,104,000
resulting in an operating loss on ordinary activities before taxation of
$7,447,000 ($7,644,000 in 2001) and a loss on ordinary activities after
taxation of $7,468,000 ($7,667,000 in 2001).  This resulted in a loss per
share of 9.34 cents (9.59 cents in 2001).


JOHN LAING: Business Strategy Now Clear, Says Chairman
------------------------------------------------------
During the first six months of the current year we have taken further steps
to complete the restructuring of our operations and to grow our
infrastructure business into one of the U.K.'s leading companies in the
sector.  John Laing is now a focused investor, developer and operator of
infrastructure projects.

The U.K. program of PFI/PPP projects will continue to represent 10-15% of an
expanding total public sector investment as confirmed in the Treasury's
recent publication 'PFI: Meeting the Investment Challenge'.  Overseas
markets for privately financed infrastructure projects are also growing.

The substantial backlog of refurbishment, maintenance and upgrading of
infrastructure in the U.K. and overseas presents a growing market in the
sectors in which we operate.  We have now established a scale of operations
and skill base that allows us to capitalize on these opportunities.

RESULTS AND DIVIDENDS

The profit before tax for the six months to June 30, 2003 was GBP5.1
million.  The comparative for the first half of 2002 was a profit before tax
of GBP17.9 million which included the U.K. housing business that was sold
last November and contributed GBP18.3 million during the comparative period.
The continuing businesses have produced a profit before interest and tax of
GBP5.9 million which compares to GBP2.1 million for the first half of 2002.
This result for the continuing businesses includes losses of GBP0.3 million
on the residual housing businesses that are held for sale.  The results of
WL Homes LLC and Beechcroft are included within discontinued operations in
our financial statements.

Our results are stated after introducing FRS 17 - Retirement Benefits, and
further refinement of project accounting to produce consistency across the
Group following the Amey portfolio acquisition.  All comparatives have been
restated.

We stated in our report and accounts in April this year that it was the
Board's intention to align dividends more closely to earnings.  Clearly we
need to recognize the change in our earnings profile and that in future
shareholders' returns will derive from capital as well as earnings growth.

The company will pay an interim dividend of 1.0 pence per Ordinary Share
(2002 - 2.0 pence) on November 3, 2003 to shareholders registered at the
close of business on September 12, 2003.  Subject to achievement of our
internal targets, this interim dividend represents one third of our
anticipated full year dividend.

ACQUISITIONS AND DISPOSALS

During the period we have undertaken a number of transactions aimed at
enhancing our portfolio of infrastructure assets and disposing of non-core
activities.

On March 14, 2003 we completed the purchase of a portfolio of eight PFI
projects from Amey plc for GBP42.8 million including GBP13.8 million of
future equity commitments.  Subsequent to that purchase, a subsidiary of Sir
Robert McAlpine Limited exercised its call option over the interest in the
A19 DBFO road project at a price of GBP2.3 million, which was equivalent to
the book value.

Coterminous with the acquisition of the portfolio, and to maintain a 50%
shareholding, we sold a 9.9% interest in Modus, the project company for the
MoD main office building in Whitehall.  The remainder of the acquired
portfolio has been successfully integrated within our business and has
provided a further step change in the scale of our infrastructure investment
operations.

Last month, we completed the acquisition of the equity interest in the
Firearms Training Facility for the Cleveland police force.  This acquisition
complements our larger Firearms and Public Order Training project for the
Metropolitan Police at Gravesend in Kent, which became operational in
February 2003.

During the first six months of 2003 we sold our equity in the National
Physical Laboratories at Teddington and in Manchester Metro, at a combined
profit against book value of GBP1.0 million.

Following the sale of Laing Homes Limited in 2002, we have concentrated on
completing the exit from our residual housing activities.  On May 1, 2003 we
sold our interest in Beechcroft Developments Limited, the retirement housing
business, for GBP34.0 million at no profit or loss.  In addition, on July 1,
2003 we completed the sale of our entire interest in WL Homes LLC, the U.S.
house builder in which we had a 22.5% equity interest for GBP26.4 million,
generating a book profit of GBP0.7 million which will be included in the
second half results.

We continue to work towards completing the exit from our two remaining
housing businesses - John Laing Partnership Limited and the 30% stake in
Octagon Developments Limited.  We anticipate completing at least one of
these disposals during the second half of the current year.

TRADING

The infrastructure investment business has had a successful first six
months.  We completed the financial close on the first Norwegian DBFO road,
the E39, in joint venture with Skanska which, when taken with the Amey
portfolio, brings our total number of PFI/PPP projects up to 32, of which 23
are fully operational and revenue producing in the relevant project
companies.  Of particular note has been the strong performance of Chiltern
Railways, which continued to grow in terms of passenger numbers and
revenues.

We continue to expand our portfolio through bidding activity and now have a
pipeline that includes 14 preferred bidder projects.  We expect that up to 5
projects will reach financial close in the second half, one of which has
already been achieved - Project Red Dragon delivering new aircraft
maintenance facilities at St Athan in South Wales.  In addition, we have
been short listed on 21 projects which, taken with those at preferred
bidder, will provide a steady flow of new projects over the coming two
years.

ExcellCare, our joint venture with Halifax Bank of Scotland targeted on the
primary healthcare sector, has had a highly successful first half in
achieving preferred bidder status on three NHS LIFT projects.  We have also
signed a Memorandum of Understanding with WALTER BAU to pursue the
substantial German DBFO roads program.

Prior to its sale, Beechcroft, the retirement homes business experienced
difficult market conditions and recorded a loss of GBP0.7 million in the
four months of ownership.  Octagon Developments has also experienced slow
sales.  The U.S. based WL Homes LLC has enjoyed continuing buoyant market
conditions and its profit, prior to the sale, was in line with our
expectations.

Further progress has been made on the retained construction liabilities
arising from the sale of Laing Construction in 2001, with completion of the
physical works on the National Physical Laboratories.  The provision for
future costs on all retained construction liabilities now stands at GBP32.0
million which the
Board considers to be adequate.

BALANCE SHEET

On March 31, we received the second installment of GBP120.0 million deferred
consideration from the sale of Laing Homes Limited.  The company had net
cash balances of GBP36.7 million at 30 June 2003 (2002 - net debt GBP129.0
million), excluding the remaining GBP64.0 million of non-recourse bridge
financing against the GBP95.2 million receivable from George Wimpey Plc, and
the GBP241.6 million non-recourse financing of PFI project companies.

Consolidated shareholders funds of GBP110.1 million now reflect the net
pension deficit under FRS 17 accounting of GBP97.9 million.  The company has
postponed its plans to apply to the Courts for a capital reduction having
received further advice on the restrictions that the Courts would be likely
to apply in respect of distributable reserves.

While not included in the financial statements, the portfolio valuation* of
our PFI/PPP assets continues to demonstrate growth.  After adjusting for
acquisitions and disposals, the valuation at 31 December 2002 would have
increased from GBP215 million to GBP233 million, however further growth in
value has taken the valuation at 30 June 2003 up to GBP253 million,
representing growth of 8% on a like for like basis over the first six months
of 2003.

PROSPECTS

We are now clearly focused on our infrastructure investment development and
operations business.  Our markets are growing both in the U.K. and overseas
and there is considerable demand for our skills and capability.  The
opportunity to build a larger business with a robust earnings stream is
exciting.

The performance of our core business is encouraging and our growth
underlines the ability of our experienced team to select, win and manage
projects to provide both earnings and capital growth.

From July 1, 2003 having completed the groundwork of achieving financial
stability and refocusing the business, I relinquished my executive
responsibilities and handed over executive responsibility to Andy Friend who
became Chief Executive.  The Board is confident that the executive team will
continue to capitalize on the opportunities facing our business and we
expect to make further progress in the second half of the year.


W W FORRESTER
1 September 2003


*The valuation of the portfolio has been carried out on a consistent basis
for each 6 month period since June 2000.  The exercise does not seek to
establish the market value of the assets in the portfolio - but does
illustrate movements
in value between periods through application of a consistent methodology on
the assumption that investments are held to maturity

To View Financial Statements:
http://bankrupt.com/misc/John_Laing_Interim.htm

CONTACT:  JOHN LAING PLC
          Phone: 020 7647 8800
          Andy Friend, Chief Executive Officer
          Adrian Ewer, Finance Director

          FINSBURY
          Phone: 020 7251 3801
          Edward Orlebar / Faeth Birch / Robin Walker


KERESFORTH THREE: High Court Sanctions Scheme of Arrangement
------------------------------------------------------------
Notice is hereby given that by an order dated July 30, 2003 made in the High
Court of Justice in the above matters by Mr. Justice Jacob, the Scheme of
Arrangement between Keresforth Three Limited (formerly Enron Metals Group
Limited) (in Administration) and its Scheme Creditors (as therein defined),
which was sent to persons believed to be Scheme Creditors of the company on
shortly after June 24, 2003, was sanctioned without modification, pursuant
to Section 425 of the Companies Act 1985.

A copy of the Scheme was delivered for registration to the Registrar of
Companies under Section 428(3) of the 1986 Act on July 31, 2003.
Accordingly, for the purposes of the Scheme the Effective Date is July 31,
2003.

Under the terms of the Scheme M J A Jervis, D M Ghosh, S A Pearson and A V
Lomas of PricewaterhouseCoopers LLP of Plumtree Court, London EC4A 4HT,
United Kingdom were appointed the Scheme Supervisors.

All persons who claim to be creditors of the company must notify the Scheme
Supervisors of their interest by submitting a Notice of Claim to the address
noted below on or before the Bar Date of September 15, 2003.  This is not
withstanding the fact that they may have given earlier notification of
claim.

CONTACT:  M J A JERVIS, Joint Supervisor
          KERESFORTH THREE LIMITED
          (formerly Enron Metals Group Limited)
          c/o PricewaterhouseCoopers LLP
          Cornwall Court, 19 Cornwall Street
          Birmingham B3 2DT
          United Kingdom


PHOTO-ME INTERNATIONAL: Issues Positive Trading Update
------------------------------------------------------
Following completion of its first quarter's accounts, Photo-Me
International, the world's leading operator of photo booths and a
significant manufacturer of digital photo processing equipment, now
anticipates that its results for the year ending April 30, 2004 will be
substantially ahead of market expectations.

This reflects the Board's increasing confidence, since the preliminary
announcement of June 30, 2003, in improved trading by both Photo-Me
International's businesses - Operations and Manufacturing.

(a) Operations in France are trading strongly whilst those in the U.K. and
Japan are set to recover well, as predicted in the preliminary announcement.

(b) With regard to manufacturing, the agreement with Flextronics
International Ltd., announced on July 18, 2003, will permit output from
Photo-Me International's factory in Grenoble to be supplemented by lower
cost units manufactured in Poland with effect from the end of this calendar
year; the volume manufacturing process at Grenoble has continued to improve;
demand for minilabs continues to exceed supply; and the early success of
PMI's April 2003 re-launch of Gretag's high volume 'central lab' business
has been sustained.

A further trading update will be given on Wednesday November 5, 2003, the
day of Photo-Me International's annual general meeting.

                     *****

Photo-Me International's range of digital minilabs comprises the
award-winning DKS 1500, the DKS 750 and the DKS 550, which are capable of
1,500, 750 and 550 prints an hour respectively, covering 95% of the market,
together with the System 89 and System 88 variants for Kodak.  Photo-Me
International's digital minilabs will replace analogue minilabs, which are
incapable of processing digital photographs -- a fast increasing proportion
of the market -- and are inferior at processing non-digital photographs.

Volume production of the DKS 1500 and System 89, which are the
top-of-the-range models as well as the largest sellers, started in Grenoble
in December 2002 and rollout has gradually been increased.

CONTACT:  PHOTO-ME INTERNATIONAL PLC
          Phone: 01372-453 399
          Vernon Sankey, Deputy Chairman
          Phone: 01372-455 544

          Serge Crasnianski, Chief Executive Officer
          Phone: 00336-11 95 63 63

          BANKSIDE CONSULTANTS LIMITED
          Charles Ponsonby
          Phone: 020-7444 4166


POWERHOUSE: Receivers Offer Business, Assets for Sale
-----------------------------------------------------
The Joint Administrative Receivers, N J Dargan and N Kahn, offer for sale
the business and assets of PowerHouse.

PowerHouse is the U.K.'s largest independent electrical retailer with over
230 stores throughout England, Scotland and Wales.

The assets available include: turnover GBP380 million, 4% total Market
Share, over 3,000 employees, 62 High Street and 161 superstore locations,
total U.K. cover, 2 warehouses with total of 210,000 sq ft leasehold, 8
distribution depots, Internet sales operation, and dedicated business to
business sales channel.

For details of PowerHouse business and assets, please contact Robin Allen or
Richard Mayall at PowerHouse, Talisman Road, Bicester, Oxfordshire, OX26
6HR; Phone: 01869 329329; E-mail: deloitte@powerhouse.co.uk


ROYAL & SUNALLIANCE: Calls for Finance Chief to Quit Intensify
--------------------------------------------------------------
Investors were on Tuesday expecting Royal & Sun Alliance finance director
Julian Hance to quit as the company prepares for a rights issue, according
to The Independent News.

The calls for his resignation came as the insurer prepares to unveil the
status of its asbestos claims reserves in the U.S., to which Mr. Hance has
authored a number of increases.

Mr. Hance is the surviving board member from the administration of Bob
Mendelsohn, who resigned after announcing record losses and 12,000 job cuts.

"If they are under-reserved, there is not much justification for him to be
there.  He has been there throughout previous reviews of reserving levels,"
one analyst said, according to the report.

The possible GBP1 billion rights issue aimed at boosting reserves for
asbestos claims came unexpectedly after the company opted to dispose assets
rather than raise cash from investors last November.  Royal & Sun has
already completed a disposal program -- that included a GBP550 million float
in Australia -- aimed at plugging its GBP650 million capital shortfall.

According to the report, any rights issue is expected to be deeply
discounted, and may be set at a two-for-three offer at 100p.

Mr. Hance is entitled to a GBP538,000 pay-off.  He could receive a further
GBP250,000 bonus if he stays on until the end of December.


WESTPOINT STEVENS: Joint Administrators Sell Business, Assets
-------------------------------------------------------------
The Joint Administrators, N G Edwards and N B Kahn, offer for sale the
business and assets of WestPoint.

WestPoint acts as a retailer and wholesaler of soft furnishings, principally
bed and bath linen, across U.K. and Europe.

The assets available include: a retail business trading through 22 large
department store concessions, primarily in the U.K. and France; a wholesale
operation including over 600 customer accounts throughout Europe; turnover
of GBP17 million; 123 employees; finished goods and work-in progress stocks;
and exclusive license and distribution agreements.

Customers include, Harrods, Harvey Bichols, House of Fraser, John Lewis,
Selfridges and El Cortes Ingles

For details of WestPoint's business and assets, please contact, Nick
Edwards, Phil Bowers or Daniel Hough at WestPoint Stevens (Europe) Limited.
Phone: 01442 877 444 Fax: 01442 870 996 E-mail: wpsesaleofbusiness@wpstv.com


WESTPOINT STEVENS: Court Fixes Oct. 3 as General Claims Bar Date
----------------------------------------------------------------
WestPoint Stevens Inc., and its debtor-affiliates ask the Court to establish
September 26, 2003, at 5:00 p.m., as the last day and time to file proofs of
claim.  The Debtors also ask Judge Drain to establish November 28, 2003 as
the last date for government units to file a claim.

For the Debtors to develop a Chapter 11 plan, they will need
complete and accurate information regarding the nature, amount
and status of all claims against them.  In the absence of an
accurate forecast of their liabilities, the Debtors will be
unable to develop, and creditors will be unable to evaluate
meaningfully, any proposed Chapter 11 plan.

The Debtors filed their schedules of assets and liabilities and
statements of financial affairs on August 18, 2003.  The
Schedules list all the Debtors' known creditors.  Pursuant to
Rule 3003(c)(3) of the Federal Rules of Bankruptcy Procedure, the
Court may set the Bar Date by which proofs of claim must be filed
in the Debtors' Chapter 11 cases.  In addition, Bankruptcy Rule
3003(c)(2) requires, inter alia, that proofs of claim be filed by
all persons, entities, or governmental units whose claims do not
appear on the Schedules or whose claims are listed in the
Schedules as "disputed," "contingent," or "unliquidated."

Bankruptcy Rule 2002(a)(7) provides that creditors must be given
"not less than 20 days notice by mail" of "the time fixed for
filing proofs of claims pursuant to Rule 3003(c)(2)."  The
General Order of Adoption of Procedural Guidelines for Filing
Requests for Bar Orders of the United States Bankruptcy Court for
the Southern District of New York, dated January 15, 2003,
(Bernstein, C.J.), suggests a notice period of 30 to 35 days, be
provided.

Pursuant to the proposed Bar Date Order, these entities are not
required to file a proof of claim:

   (a) any person or entity that has already properly filed with
       the Clerk of the United States Bankruptcy Court for the
       Southern District of New York a proof of claim against
       the applicable Debtor or Debtors utilizing a claim form
       which substantially conforms to Official Form No. 10;

   (b) any person or entity whose claim is listed on the
       Debtors' Schedules of Assets and Liabilities;

   (c) any person having a claim under Sections 503(b) or
       507(a)(1) of the Bankruptcy Code as an administrative
       expense of any of the Debtors' Chapter 11 cases;

   (d) any person or entity whose claim has been paid or
       otherwise satisfied in full by any of the Debtors;

   (e) any person or entity holding a claim for which specific
       deadlines have previously been fixed by the Court;

   (f) any Debtor having a claim against another Debtor;

   (g) any person or entity that has or may have a claim that
       has been allowed by a Court order entered on or before
       the Bar Date; and

   (h) any person or entity whose claim is limited exclusively
       to the repayment of principal, interest, or other
       applicable fees and charges on any bond or note issued by
       the Debtors pursuant to an indenture qualified under the
       Trust Indenture Act of 1939.

The proposed Bar Date Order also provides that any entity with a
claim arising from the authorized rejection of an executory
contract or unexpired lease must file a proof of claim.  If the
order authorizing the rejection is dated after the Court enters
the Bar Date Order, the claimant must file a proof of claim on or before the
date the contract or lease is set to be rejected.

The proposed Bar Date Order further provides that holders of
equity security interests in the Debtors need not file proofs of
interest with respect to the ownership of equity interests.  This is
provided that if any of these holders assert a claim against the Debtors, a
proof of claim must be filed before the Bar Date or the Governmental Bar
Date.

Each proof of claim must:

  (i) be written in English;

(ii) be denominated in lawful currency of the United States;

(iii) include supporting documentation or an explanation as to
      why documentation is not available;

(iv) conform substantially with the Proof of Claim provided or
      Official Form No. 10;

  (v) indicate the Debtor against which the claimant is
      asserting a claim, and if the holder asserts a claim
      against more than one Debtor or has claims against
      different Debtors, a separate proof of claim form must be
      filed with respect to each Debtor; and

(vi) be signed by the claimant or, if the claimant is not an
      individual, by an authorized agent of the claimant.

The Debtors also propose that any holder of a claim against them
who fails to file a proof of claim on or before the Bar Date will be forever
barred, and enjoined from asserting the claim.

The Debtors will mail a notice of the Bar Date Order and a Proof
of Claim form to:

   -- the Office of the United States Trustee for the Southern
      District of New York;

   -- each member of the Statutory Creditors' Committee and its
      attorneys;

   -- all known holders of claims listed on the Schedules;

   -- all counterparties to the Debtors' executory contracts and
      unexpired leases listed on the Schedules;

   -- the District Director of Internal Revenue for the Southern
      District of New York;

   -- the Securities and Exchange Commission;

   -- the attorneys for the Debtors' lenders;

   -- the United States Attorney for the Southern District of
      New York; and

   -- the entities in the Debtors' Master Service List.

The Debtors also intend to publish a notice of the Bar Date once
in The Wall Street Journal, The New York Times, and the Atlanta
Journal-Constitution at least 25 days before the Bar Date.  The
Debtors will also publish the Bar Date Notice on their Web site,
http://www.westpointstevens.com


                          *     *     *


Judge Drain sets October 3, 2003 at 5:00 p.m. Eastern Time as the General
Claims Bar Date and November 28, 2003 at 5:00 p.m.
Eastern Time as the Governmental Bar Date. (WestPoint Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc., 609/392-
0900)


                            *********


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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