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

                           E U R O P E

           Monday, September 15, 2003, Vol. 4, No. 182


                            Headlines


D E N M A R K

MAERSK AIR: Divests 49% Shareholdings in Estonian Air


F R A N C E

ALSTOM SA: Nears Deal on Sale of Power Transmission Unit


G E R M A N Y

HVB GROUP: Fitch Hints of Downgrade if Firm Misses Targets
PLAUT AG: Strengthens International Franchise Network


G R E E C E

M.J. MAILLIS: Fitch Withdraws 'BB+' Senior Unsecured Rating
OLYMPIC AIRLINES: On Lookout for Possible Strategic Investor
OLYMPIC AIRLINES: New Scheme Likely to Come Under Close Scrutiny


I R E L A N D

DAIRYGOLD CO-OP: Sells Charleville Plant, Other Operations
GALEN HOLDINGS: S&P Cuts Senior Unsecured Rating to 'B'


I T A L Y

FIAT SPA: Expects Restructuring to Bear Fruit Later this Year


N E T H E R L A N D S

KLM ROYAL: Clarifies Reports on 'Share Swap' with Air France
KONINKLIJKE AHOLD: Bids for Brazilian Assets Due this Week
KONINKLIJKE VENDEX: Weakening Business Profile Prompts Downgrade


N O R W A Y

PETROLEUM GEO-SERVICES: Discloses Key Dates in U.S. Chapter 11


S W I T Z E R L A N D

ASCOM: Dismisses CASH Article as Incorrect, Untenable
SWISS LIFE: Ratings Unaffected by Half-Year 2003 Results


U N I T E D   K I N G D O M

ABBEY NATIONAL: Mac Millington to Retire as Director
ATCHISON CASTING: U.K. Subsidiaries File for Administration
BAE SYSTEMS: To Continue to Focus on Improving Performance
BIG FOOD: Fitch Assigns 'BB-/B' Ratings, Stable Outlook
BRITISH ENERGY: FPL Energy Agrees to Buy Interest in AmerGen

CALEDONIA INVESTMENTS: Scores Hermes on Plan to Break up Firm
EMI GROUP: Successfully Completes Convertible Bond Offering
MARCONI CORPORATION: Shareholders Opt to Consolidate Shares
NXT PLC: Integration of Technologies to Take Some Time
NXT PLC: Credits Revenue Increase for First-half Progress

NXT PLC: Reports Slightly Reduced Loss in Preliminary Results
PACE MICRO: Completes Management Buyout of VoIP Subsidiary
ROYAL & SUNALLIANCE: Could Announce Divestment of Sequence Soon
SINGER U.K.: Bar Date for Scheme Claims Scheduled November 4
SPORTINGBET PLC: Ballester Resigns; Further Shakeup Expected
STIRLING GROUP: Accelerated Restructuring Starts to Take Effect
TRINITY MIRROR: Independent News May Bid for Irish Titles


                            *********


=============
D E N M A R K
=============


MAERSK AIR: Divests 49% Shareholdings in Estonian Air
-----------------------------------------------------
Maersk Air has concluded an agreement with Scandinavian Airlines to sell its
49% share in Estonian Air.  The agreement also covers Maersk Air's sale of
its wholly owned subsidiary in Estonia, Maersk Air Maintenance Estonia -- an
aircraft maintenance company in Tallinn, which services aircraft for various
airlines.

Maersk Air has been a shareholder in Estonian Air since the privatization of
the Estonian national carrier in 1996, and Maersk Air has been responsible
for management and development of the airline during this period.  Estonian
Air is a profitable and well-run airline with more than 300 employees, a
fleet of four Boeing 737-500 aircraft, and 11 international routes.
Estonian Air operations have no synergy effects on other parts of the Maersk
Air Group, and the share sale will therefore not affect other activities in
Maersk Air.

Flemming Ipsen, president of Maersk Air, sees the share sale as positive for
both Maersk Air and Estonian Air:  "Maersk Air has contributed with its
know-how to the positive development of Estonian Air since 1996, and we are
now able to divest of our ownership in the two Estonian companies with a
positive economic result, and will then be able to focus on our core
activities in Maersk Air and Star Air.  At the same time Estonian Air will
benefit from membership of the Scandinavian Airlines Group in its further
development."

                     *****

The Danish airline previously put in place measures to enhance
competitiveness necessary for its survival.  The carrier said it
has decided to adjust Maersk Air's capacity in response to the
hard pressed market for both scheduled and charter flights.

CONTACT:  Per Brinch, Head of Public Relations
          Phone: +45 3231 4415


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


ALSTOM SA: Nears Deal on Sale of Power Transmission Unit
--------------------------------------------------------
French engineering group, Alstom SA, could soon announce the sale of its
power transmission and distribution unit to Areva SA, according to
Bloomberg.

"We expect an agreement in the coming days," Gilles Tourvieille, a spokesman
for Alstom, said in an interview. "Talks are going on, we're aiming for an
agreement by Sept. 15," said Charles Hufnagel, a spokesman for Areva.

Neither of the companies disclosed the purchase price, but the report cited
people close to the transaction saying Alstom could sell the unit for EUR1
billion.  Alstom is divesting assets to avert a possible bankruptcy.  Chief
Executive Officer Patrick Kron has asked the government to help him in the
process.  He expects to raise EUR3 billion from asset disposals.  The
company has already sold EUR1.5 billion in assets.

Shares in Alstom dropped 40% this year, pegging the company's market value
to EUR800 million.  Alstom has lost 90% of its value since it went public in
June 1998.  It reported annual losses for two years due to the slump in
demand for power and stations, trains and ships and to more than EUR4
billion in costs for fixing faulty turbines.  Business also slowed down
after reports came out that Alstom may run out of cash before it could
finish orders, discouraging potential clients from transacting with the
company, the report said.


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


HVB GROUP: Fitch Hints of Downgrade if Firm Misses Targets
----------------------------------------------------------
Fitch Ratings affirmed Bayerische Hypo- und Vereinsbank's (HVB) ratings at
Long-term 'A', Short-term 'F1', Individual 'C/D' and Support '1'.  The
Long-term rating Outlook remains Stable, but Fitch comments that it expects
substantial improvement in the bank's risk profile and capitalization in the
next couple of months.  If the bank does not deliver on its targets, the
agency could downgrade the ratings by one notch.

Early in 2003 HVB announced an ambitious turnaround program to restore the
bank's profitability, reduce its credit risk and address its insufficient
capitalization.  In Fitch's view it is on schedule to meet these targets,
but is only part of the way through an uphill struggle and slipping behind
could yet result in a downgrade.  As well as measures to recapitalize the
bank, the turn-around program consists of the reduction of risk-weighted
assets by EUR100 billion, through sale of non-core subsidiaries, the
spin-off of HVB's real estate subsidiaries and securitization.  Management
targets a Tier 1 ratio of close to 7% at end-2003.  Credit risk should also
benefit from much needed reduction of concentration risk and more active
portfolio management.  Results are gradually starting to benefit from
stricter risk-adjusted pricing and improved efficiency, but the full impact
of the bank's cost cutting measures, including the streamlining of the
branch network, workforce and group structure, will only really show through
in the bottom line in 2004.

So far in 2003 HVB's performance remains fragile, but the bank has realized
some of the milestones of its transformation program, and the rest is
expected to come through by December 2003.  The emphasis on more profitable
businesses and better risk-adjusted pricing has started to feed through in
the last two months.  However, maintaining revenue levels in a low-interest
rate environment while reducing risk-weighted assets remains a challenge.
Retail banking operations are anticipated to finally approach break even in
2003 as they benefit from early signs of cost synergies.

The bank is on track to realize the main milestones of its transformation
program and these will considerably change the bank's risk profile and
capitalization.  In October 2003, most of HVB's commercial real estate
operations, including its mortgage bank subsidiaries, will be spun off and
regrouped under a newly created holding company, Hypo Real Estate Group,
which will be legally separated from HVB.  This will reduce HVB's
risk-weighted assets by c.EUR60 billion, but will slightly dilute its Tier 1
ratio. Fitch is therefore closely monitoring the measures undertaken to
strengthen the bank's capitalization.  Progress in improving HVB's Tier 1
ratio has been slow, but is picking up momentum.  The listing of 22.5% of
Bank Austria Creditanstalt in July 2003 brought almost EUR1 billion of fresh
capital, combined with the sale of norisbank, a consumer credit bank, and
the shedding of some EUR20 billion risk-weighted assets since the beginning
of the year, has improved the Tier 1 ratio to above 6%.  The planned
securitization of a further EUR20 billion of assets and sales of small
non-core assets and subsidiaries should realistically raise the ratio close
to the targeted level of 7% by year-end.

Management only expects HVB to break even in 2003.  While the pre-provision
operating level is starting to show some improvement, final results will
depend on whether the bank can stick to its forecast level of loan loss
provisions for the year, which Fitch believes it can.

The ratings of HVB's hybrid Tier 1 instruments issued through HVB Funding
Trusts I, II, IV, VII and VIII have been affirmed at 'BBB+'.  At the same
time, the agency has affirmed the 'AAA' Long-term ratings of the Public
Sector Pfandbriefe and the Mortgage Pfandbriefe.


PLAUT AG: Strengthens International Franchise Network
-----------------------------------------------------
The Executive Board of Plaut AG (SCN 918 703) announced that the company has
finalized buy-out negotiations with their country management teams in the
Italian and Spanish subsidiaries.  Ownership for both of these local
operations will be turned over to the local management teams.  All parties
have agreed to maintain confidentiality about the transactions' terms and
conditions.

Nevertheless, Spain and Italy will continue to be part of the Plaut family:
They will still be run as a Plaut franchise, will continue to support
cross-border projects for multinational customers and will adhere to Plaut's
high standards of customer service and consulting expertise.

"In order to maximize synergies between Plaut as a group and the new
franchises, our partnership has been designed to be mutually exclusive",
comments Didier Moscatelli, Member of the Executive Board, responsible for
the area South/West Europe.  "This corresponds to our customers' needs for
predictable and uncompromising business value especially in international
roll-outs.  On the other hand, we are much more flexible in responding to
local market conditions and requirements, installing business leadership
close to our customers."

This model has already proven to be very successful in Australia, where
local management has taken over business ownership in 2001.  Since then
Plaut Australia has gained sustainable momentum and strength thanks to its
entrepreneurial managing director.

Plaut as a group and its shareholders benefit twice from this step: by
removing a notorious, long-time, loss-maker -- Italy -- from its balance
sheet and P&L, as well as by decreasing management overhead cost in the
group.  Through this announcement Plaut therefore also supports its plans
for a slimmer holding structure -- as announced at the end of July -- and
demonstrates the positive continuation of its restructuring efforts.

About Plaut AG

Customers in numerous countries around the globe benefit from Plaut's
comprehensive portfolio in management consulting with business process focus
and IT & hosting solutions, based on Plaut's industry knowledge in
manufacturing and CPG/retail and services.  On the basis of the Plaut
Methodology in controlling and decades of success in systems integration, in
particular in SAP, Plaut has provided tangible economic value since 1946.
Plaut AG, Salzburg, has been listed in the General Standard segment of
Frankfurt stock exchange since January 2, 2003 (PUT; SCN 918 703, ISIN
AT0000954359).  The company, trading on
Frankfurt's "Neuer Markt" from 1999 to 2002, generated revenues of
approximately EUR216 million with 1,366 employees by the end of 2002.

Please find further information about the Plaut group at
http://www.plaut.com

CONTACT:  PLAUT AKTIENGESELLSCHAFT
          Sven Kielgas, Chief Marketing &
          Investor Relations Officer
          Moserstrasse 33a
          A-5020 Salzburg
          Phone: +43 (662) 4092-0
          Fax: +43 (662) 4092-59
          Sven.Kielgas@Plaut.at


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G R E E C E
===========


M.J. MAILLIS: Fitch Withdraws 'BB+' Senior Unsecured Rating
-----------------------------------------------------------
Fitch Ratings affirmed the Senior Unsecured rating of M.J. Maillis Group at
'BB+' with a Negative Outlook and simultaneously withdrawn the rating.
Maillis' management requested the rating withdrawal.  Fitch will no longer
provide analytical services or coverage on Maillis.

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

                     *****

Founded in 1968, M.J. MAILLIS Group is involved in the manufacture and
distribution of end-of-line industrial solutions.  This includes strapping,
wrapping and taping packaging material, strapping tools and machines,
wrapping, shrinking and carton sealing machines and special bands. It offers
complete solutions, covering both the heavy-duty and light packaging markets
and serves all industrial applications. Maillis Group operates in more than
52 countries worldwide, through a network of 34-owned Affiliate companies
and more than 350 independent distributors.


OLYMPIC AIRLINES: On Lookout for Possible Strategic Investor
------------------------------------------------------------
The Greek government pursued its search for a strategic investor for Olympic
Airlines after approving last week a legislation setting up a new company to
replace it, the Financial Times said.

The drive to ensure the survival of Olympic Airlines, formerly Olympic
Airways, is fueled by the desire to provide an official carrier for next
summer's Olympics in Athens.  The new company will take over Olympic's
scaled down fleet and slots at international airports.  The airline would
have 1,850 employees compared with 6,000 at Olympic Airways, and would buy
services from old Olympic's ground-handling and maintenance operations.

Greek investment banks ETVA, Alpha Finance and Commercial Capital were
tasked to find an investor willing to pay EUR75 million (US$84 million) for
a 51% stake in Olympic Airlines and take over management.  They have until
November 30 to look for a buyer.  A transport ministry official said: "We
are looking at a debt-free new Olympic operating flights on existing routes
with a sharply reduced staff."

The old Olympic airlines will be restructured as a separate entity and sold
next year.  It will operate without a catering subsidiary and computer
booking system as the two divisions have been sold to private investors.
Olympic Airways' debt is understood to exceed EUR200 million since its last
restructuring approved by the European Commission in 1998.


OLYMPIC AIRLINES: New Scheme Likely to Come Under Close Scrutiny
----------------------------------------------------------------
The government's scheme of setting up a new slimmed-down company out of the
loss-making state carrier, Olympic Airways, is expected to come under close
scrutiny from the European Commission, according to the Financial Times.

The Greek parliament last week approved legislation launching Olympic
Airlines, a new company that would take over Olympic's aircraft and slots at
international airports.  It would use ground-handling and maintenance
operations of the old Olympic while the latter is being restructured as a
separate entity.

The business plan for the new company could possibly be demanded by the
European Commission in the coming days, according to the report.  European
Union transport commissioner, Loyola de Palacio, is already planning to
request Greece to hand over Olympic's recent accounts, a business plan for
the new company, details on the possible liquidation of the old entity and
on the fiscal and legal status of the new airline.  Olympic Airways has
still to publish a balance sheet for 2002.  Athens would have 20 days to
comply to the demands.

According to the report, a spokesman for Ms. de Palacio said E.U. state aid
law would ban the Greek government from handing over any subsidies to the
new business operating the fleet.  Athens is also facing a separate demand
from the Commission to return EUR194 million in subsidies to Olympic.


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


DAIRYGOLD CO-OP: Sells Charleville Plant, Other Operations
----------------------------------------------------------
Dairygold Co-op, Ireland's multi-purpose businesses that lost nine members
of its board during its annual general meeting in July, has confirmed that
the Charleville beef plant will be the next to go under its massive
rationalization program.

Online news agency, BizWorld, said the troubled co-op is selling the
Charleville operation to Dawn Meats for an undisclosed sum.  The Kilbeggan
boning unit is also being sold as a going concern.  Dairygold previously cut
23 of smaller rural branches and outsourced the bulk of its transport needs.
Major reviews are also now under way on all of the company's operations.
Job-cuts may be inevitable but Dairygold denied suggestions it could cut
2,000 out of its 3,000-strong workforce.

Meanwhile, speculations are rife the next review could target its pig
slaughter operation in Mitchelstown.  The unit is not seen as key to its
highly profitable pig meat processing section.  The company, which has more
than 8,000 shareholders and an annual turnover of almost EUR989 million, has
yet to confirm this.


GALEN HOLDINGS: S&P Cuts Senior Unsecured Rating to 'B'
-------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Galen Holdings PLC
to positive from stable.  At the same time, Standard & Poor's lowered its
senior unsecured rating to 'B' from 'B+' and affirmed the 'B+' corporate
credit rating on the company.  The senior unsecured rating is being lowered
solely to reflect the priority position of the increased senior secured debt
resulting from the company's credit facility and is not indicative of
deterioration in corporate credit quality.

"The ratings on Northern Ireland-based Galen reflect its aggressive use of
debt to fund product acquisitions and the possible threat of generic
competition to several of its key products," said Standard & Poor's credit
analyst Arthur Wong.  "These factors are partially offset by the growing
diversity of the company's portfolio of drugs and its sizable 340-person
sales force."

Galen is a specialty pharmaceutical company focused on the development and
commercialization of branded pharmaceuticals in the areas of women's health
care and dermatology.  The company seeks to acquire mature products and
revive their sales through line extensions and increased promotion.

Galen is headquartered in Ireland but roughly 85% of its sales come from its
Rockaway, N.J.-based Warner Chilcott Inc. unit.

Galen's portfolio has grown substantially in the past year, given the
acquisition of several new products.  The women's oral contraceptives
Estrostep and Loestrin, as well as the combination hormone replacement
therapy femhrt, were acquired from Pfizer Inc. in March 2003 for an initial
cash payment of $359 million (Estrostep and femhrt are patent protected
until 2008 and 2010, respectively.  A maximum contingent payment of $125
million will become payable if femhrt and Estrostep retain market
exclusivity during the lives of their respective patents).  Estrostep,
Loestrin, and femhrt contributed $37 million to Galen's $136 million in
total revenues for the three months ended June 2003.

Other products acquired by Galen include Sarafem, purchased from Eli Lilly &
Co in January 2003 for approximately $295 million in cash.  Sarafem is a
repackaged form of Prozac (fluoxetine) prescribed to treat premenstrual
dysphoric disorder (PMDD), a severe form of premenstrual syndrome.  The
product generated $22 million of sales for the three months ended June 2003.

Generic competition is a major uncertainty for several of Galen's products
in the near term.  Sarafem is protected until 2008 for the treatment of
PMDD.  Nevertheless, Teva Pharmaceutical Industries Ltd is challenging the
patent, and generic Prozac is already being substituted for use in PMDD,
causing Sarafem sales to decline. Galen hopes to reverse this trend through
increased promotion.

Meanwhile, Galen has entered into a proposed agreement with Barr
Laboratories Inc. to remove some of the near-term concerns regarding generic
competition to femhrt, Estrostep and Ovcon. Nevertheless, while Galen has
effectively extended the timeline of its marketing exclusivity on these
products, Ovcon is not patented, and other generic companies may choose to
challenge its patents on femhrt and Estrostep.


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


FIAT SPA: Expects Restructuring to Bear Fruit Later this Year
-------------------------------------------------------------
The Board of Directors of Fiat S.p.A., which met Thursday in Turin under the
chairmanship of Umberto Agnelli, approved the Group's Half-yearly Report.
The operating and financial data contained in the Report were published
previously, after being reviewed by the Board of Directors at its meeting of
July 31, 2003.

Key Developments

Despite the weakness and uncertainty that marked the world markets during
the first half of 2003 -- and which are continuing to affect business
conditions -- the Fiat Group posted improvements in the key indicators of
its operating and financial performance, making progress toward achieving
its stated year-end financial improvement and debt reduction goals.

This achievement is the net result of two periods that were characterized by
markedly different performances.  A difficult first quarter, with results
penalized by the problems that affected the Group in 2002, was followed by a
second quarter during which the benefits that Fiat Auto's restructuring
program is beginning to produce and the acceleration of the divestiture
process yielded significantly better results than both the same period last
year and the first quarter of 2003.

During the first half of this year, the Group presented its Industrial and
Financial Relaunch Plan, which provided clear guidelines for all Company
initiatives.  The Plan calls for operating income to rise to more than 4% of
revenues by 2006.  This improvement will be the result of EUR3.1 billion in
cost reductions and EUR1.6 billion in increased margins from new products,
net of a EUR1.8-billion-rise in expenses.

The principal initiatives taken earlier this year to strengthen the Group's
balance sheet were a capital increase of about EUR1.8 billion, which was
approved by the Board of Directors of Fiat S.p.A. in June 2003 and completed
successfully during the first half of August, and the divestitures of
businesses that no longer fit within the strategic scope of operations as
defined in the Plan.

The main divestitures included:

(a) The sale of Toro Assicurazioni to the DeAgostini Group;

(b) The signing of an agreement to sell FiatAvio's aerospace
    operations to the Carlyle Group and Finmeccanica;

(c) The disposal of Fiat Auto's retail financing operations;

(d) Iveco's sale of Fraikin, a provider of long-term rental
    services for commercial vehicles, to Eurazeo;

(e) The sale of a controlling interest in IPI S.p.A., a company
    that specializes in developing, managing and marketing large
    real estate portfolios, to the Zunino Group.

Performance in the First Half of 2003

Consolidated Group revenues totaled EUR24,774 million in the first half of
2003, down from EUR28,755 million in the same period last year.
Divestitures were partly responsible for this 13.8% decline.  On a
comparable consolidation basis, revenues show a decrease of about 8%.  Other
negative factors include lower unit sales by Fiat Auto and the negative
impact of a strong euro on foreign exchange translations (especially with
respect to the U.S. dollar), which was particularly penalizing for CNH.  Net
of the changes in the scope of consolidation caused by divestitures, Iveco
had revenues in line with the first six months of 2002.  Ferrari, Comau and
Business Solutions posted revenue gains.

The operating result was negative by EUR367 million.  This loss, most of
which was incurred in the first quarter (-EUR342 million), is lower than the
EUR426 million posted in the first half of 2002.  When the data are restated
on a comparable consolidation basis, the year-over-year improvement amounts
to EUR110 million.  The reduction in operating loss is attributable almost
entirely to the improved performance turned in by Fiat Auto in the face of
challenging market conditions.

The consolidated net loss (also incurred primarily in the first quarter)
amounted to EUR737 million, compared with a loss of EUR803 million in the
first six months of 2002.  A smaller operating loss, a decrease in net
financial expenses made possible by lower indebtedness and interest rates,
income from equity investments, and the net gain from the sale of Toro
Assicurazioni (EUR279 million) account for this improvement.  Also, it is
worth noting that, compared with this year, the figure for 2002 benefited
from higher extraordinary income, including the gain of EUR547 million
earned on the sale of a 34% interest in Ferrari.

At June 30, 2003, the net financial position was negative by EUR4,812
million, with an improvement of about EUR1 billion compared with June 30,
2002.  However, indebtedness was higher when compared with December 31, 2002
(-EUR3,780 million) due to the net loss for the period, an increase in
working capital and a decrease in discounted receivables.  These
developments, which occurred primarily in the first quarter, produced an
increase in liquidity needs that could be met only in part through
divestitures.

Performance of the Principal Sectors

Fiat Auto

During the first half of 2003, the Western European automobile market (about
7.5 million cars sold) contracted by an average of 2.6% compared with the
same period last year.  The largest decreases occurred in France (7.8%),
Belgium (9.9%) and Portugal (23%).  In Italy, demand held relatively steady
at a little more than 1,200,000 units.  Sales results were uneven outside
Western Europe, with shipments down sharply (-8.8%) in Brazil, but up 13.5%
in Poland and 80% in China.  Similar patterns characterized the market for
light commercial vehicles.

In this market environment, Fiat Auto had revenues of EUR10,149 million in
the first six months of 2003, compared with EUR11,770 million in the same
period a year ago.  Fiat Auto sold 867,100 automobiles and light commercial
vehicles worldwide, or 12.7% less than in the first half of 2002.  Weak
demand in the Sector's key markets, a marketing strategy focused on
improving the quality of sales even at the expense of sales volumes, the
aggressive sales policies pursued by the competition and Fiat Auto's aging
product line account for this decrease.  The process of renewing the Sector'
s model lineup, which got under way in June with the commercial launch of
the Nuova Punto and Nuova Alfa 156, is accelerating as the year progresses.
The first half of September will see the introduction of the Lancia Ypsilon
and Nuova Panda, followed by the Nuova Alfa 166, the Fiat Idea and the Alfa
GT.  Another negative factor that limited sales during the first six months
of 2003 was the production shortfall caused by a flood at the Termoli engine
plant in January.

At June 30, 2003, Fiat Auto's share of the automobile market stood at 28.2%
in Italy (3.4 percentage points less than in the same period last year) and
7.6% in all of Western Europe (down 0.9 percentage points compared with the
first six months of 2002).  In the area of light commercial vehicles, the
Sector's market share increased by 0.9 percentage points in Italy (Fiat Auto
controlled over 44% of the market), but declined to 11.5% in Western Europe,
down slightly from 12.1% in the first half of 2002.

Fiat Auto reported an operating loss of EUR568 million, an amount
significantly smaller than the loss of EUR823 million recorded the first six
months of 2002.  This improvement can be attributed primarily to
cost-cutting programs, which benefited to a major extent from the synergies
generated by the industrial alliance with General Motors.

Despite the shortfall in revenues, Fiat Auto slightly increased its R&D
spending during the first half of 2003.

CNH Global

The world market for agricultural equipment grew during the first six months
of 2003, expanding by 8% overall compared with the same period last year.
Demand was down in Western Europe (-2%), but increased in North America
(+17%), Latin America (+4%) and the rest of the world (+12%).

During the same period, demand patterns for construction equipment followed
diverging trends in the different markets, with shipments down 1% in Western
Europe, 2% in North America and 17% in Latin America, but up 28% in the rest
of the world.

CNH, which uses the U.S. dollar as its reporting currency, had revenues of
$5,303 million in the first half of 2003, up from $5,104 million in the
first half of 2002.  Translated into euros, CNH's revenues declined from
EUR5,691 million in the first six months of 2002 to EUR4,800 million in the
same period this year (-15.7%), due mainly to the strengthening of the euro
versus the U.S. dollar.  On a comparable foreign exchange translation basis,
the decrease amounts to 5% and primarily reflects lower sales of
construction equipment.

Unit sales of agricultural equipment held relatively steady, as declines in
North and Latin America were offset by gains in the rest of the world.
However, shipments of construction equipment were down 12%, with decreases
affecting sales both of heavy equipment (which are more profitable) and
light equipment.

CNH reported operating income of $116 million, compared with $144 million in
the first half of 2002.  When stated in euros, operating income declines to
EUR105 million (EUR161 million in the same period last year).  Other
negative factors that affected the Sector's operating performance, in
addition to the impact of a weak U.S. dollar, include lower unit sales of
construction equipment, a less profitable sales mix and higher employee
medical and retirement benefit costs.

Nevertheless, CNH's profitability remained at a satisfactory level due to
the improved margins earned on new models of agricultural equipment, the
higher prices charged to customers and the significant cost savings made
possible by newly developed synergies.  The significant progress CNH made
during the first six months of 2003 in integrating Case and New Holland
produced benefits quantifiable at $59 million by decreasing overhead,
lowering logistics costs and streamlining the supplier base and reducing the
manufacturing facilities.

Additional savings should come from the continued implementation of
cost-cutting programs and the introduction of new products with common
components in the second half of the year.  During this period, sales
volumes should begin to benefit from the introduction of numerous new
agricultural and construction equipment models during the first six months
of this year.

Iveco

During the first half of 2003, the Western European market for commercial
vehicles experienced a modest overall contraction of 0.5% in new
registrations.  Large decreases occurred in France (-6.7%) and especially in
Italy (-12.6%), where the end of the incentives provided by the Tremonti Bis
Law was a major negative factor.  Compared with the first six months of
2002, demand was down in all market segments (-8.1% for intermediate
vehicles and -0.8% for light vehicles) with the exception of heavy-load
vehicles (+3.1%).

Iveco had revenues of EUR4,175 million in the first half of 2003, or 7.4%
less than the EUR4,508 million booked in the same period a year ago.  The
sale of Fraikin and a change in the method used to consolidate Naveco (a
joint venture with the Yueijin Group in China) are the main reasons for this
decrease.  On a comparable consolidation basis, revenues show little change
from the first six months of 2002.

Operating income for the first half of 2003 declined to EUR22 million,
compared with EUR36 million in the same period last year, due almost
exclusively to changes in the scope of consolidation.  On a comparable
basis, this year's figure is close to the amount earned in the first six
months of 2002.

Ferrari

Ferrari's revenues grew 6.3% to EUR624 million in the first half of 2003.
Higher unit sales made possible by demand for the new products introduced
last year (the 575M and, more importantly, the limited edition Enzo Ferrari)
account for this improvement. However, the operating result was negative by
EUR16 million (positive EUR10 million in the first six months of 2002) due
to the increased R&D spending incurred to develop new Ferrari and Maserati
models and the negative impact on currency translations of the appreciation
of the euro versus the U.S. dollar.

Other Sectors

Despite the negative impact of the difficult business conditions facing
carmakers and an unfavorable dollar-euro exchange rate, the components
Sectors posted good results overall.

Revenues were down 9.7% (-1.9% on a comparable consolidation and foreign
exchange basis) at Magneti Marelli due to unfavorable exchange rates and
weak demand from carmakers.  However, the operating result improved from a
loss of EUR10 million in the first half of 2002 to income of EUR3 million in
the same period this year.  This positive performance (the comparison is
even better on a comparable consolidation basis) was made possible by the
programs implemented to increase efficiency and cut costs.

Comau's revenues rose 9.1% to EUR1,082 million, up from EUR992 million in
the first six months of 2002.  The Sector's operating loss widened slightly
(EUR7 million, compared with EUR5 million in the first half of 2002), as a
drop in contract work in Europe more than offset gains in North America.

Teksid had lower revenues (EUR439 million in the first six months of 2003,
compared with EUR950 million in the same period last year).  On a comparable
consolidation basis (excluding the impact of last year's sale of the
Aluminum Business Unit), revenues show a decrease of 8%, due mainly to
unfavorable foreign exchange rates.  At the Business Unit level, production
volumes for Cast Iron were substantially in line with those recorded last
year (-0.3%) and increased for Magnesium (+6.8%).

Operating income totaled EUR5 million, compared with EUR12 million in the
first half of 2002 (operating loss of EUR3 million on a comparable scope of
consolidation basis).  The result achieved this year was made possible by
reductions both in overhead and variable costs, which helped offset the
negative impact of exchange rates on prices.

Business Solutions had revenues of EUR943 million in the first six months of
2003, for a gain of 2.3% over the same period last year.  The decrease in
operating income (EUR17 million compared with EUR38 million in the first
half of 2002) reflects the deconsolidation of IPI, which in 2002 contributed
operating income of approximately EUR16 million.

Itedi increased its revenues by 5% to EUR190 million.  Operating income rose
to EUR5 million, compared with an operating loss of EUR1 million in the
first six months of 2002.  Gains in efficiency and the higher advertising
revenues generated by Publikompass are the main reasons for this
improvement.

Outlook for the Balance of the Year

During the balance of this year, the Fiat Group will continue to face a
difficult and challenging environment.  Nevertheless, it will press on,
adhering to its schedule, with the important restructuring and cost-cutting
programs it launched earlier this year.

The potential of the 2003-2006 Relaunch Plan, which is expected to begin
producing major benefits in the last quarter of 2003, is already becoming
apparent, particularly in terms of new product momentum.  Dealer orders
totaled more than 140,000 units for the Nuova Punto, 32,000 for the Nuova
Panda and 15,000 for the Lancia Ypsilon.  Before the end of the year, these
new models, which have been well received both by the press and the public,
will be followed by the Fiat Idea, Nuova Alfa 166 and Alfa GT.

Important financial developments that have occurred since June 30, 2003
include the sale of the aerospace operations of FiatAvio, which will produce
an improvement of EUR1.4 billion in the Group's net financial position, and
the successful completion of the capital increase approved by the Board of
Directors on June 26, 2003.  All ordinary Fiat shares available through the
rights offering (367,197,108 shares) were subscribed without the
intervention of the Underwriting Group, generating proceeds of EUR1,836
million.  CNH issued eight-year senior notes with a face value of $750
million, later increased to $1,050 million.

Based on the current scenario, the Group expects to attain its stated
objective of reporting by year's end a significantly smaller operating loss
and a healthier financial position than at the end of 2002.

To view financials: http://bankrupt.com/misc/Fiat_Results.pdf


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


KLM ROYAL: Clarifies Reports on 'Share Swap' with Air France
------------------------------------------------------------
Dutch airline KLM Royal, reacting to comments by French Transport Minister
Gilles de Robien, said an exchange of shares with potential alliance
partner, Air France, was just one option under consideration and no decision
has yet been made.

According to Dow Jones Newswires, the minister told a weekly magazine that
Air France and KLM were "very complementary" and any tie-up between the two
would involve an exchange of shares.
However, KLM spokesman Bart Koster denied the information.  He said: "That's
an option that's on the table, but no final decision has been made yet."

The ailing Royal Dutch Airline has been looking for a strong European
partner to ensure long-term viability, with directors insisting that
independence is not an option for medium-sized carriers.  It has been
flirting with Air France for weeks and reports from France suggest a share
swap is being considered whereby KLM investors would take 15% of a merged
airline and the French Government stake in Air France would fall to 20%.


KONINKLIJKE AHOLD: Bids for Brazilian Assets Due this Week
----------------------------------------------------------
The deadline for the submission of final offers for the Brazilian assets of
Dutch retailer, Ahold, was again pushed back, according to sources privy to
the process.

After several postponements, ABN Amro, the Dutch bank managing the sale,
again moved the date to September 18, Reuters' sources said.  The schedule
was delayed previously at the request of Brazil's Companhia Brasileira de
Distribuicao, Wal-Mart Stores Inc., and France's Carrefour.  All are
reportedly interested in the assets.

Ahold is selling northeastern supermarket chains Bompreco Supermercados do
Nordeste and G.Barbosa Comercial, and credit card business, Hipercard.
Bompreco, with 119 stores, is Brazil's third largest selling retailer in
2002, after market leader CBD and Carrefour, according to figures from the
Brazilian Association of Supermarkets.

The assets were put up for sale as part of the Dutch retailer's move to
leave South America after getting hit with an accounting scandal in the U.S.
They received interests from the three groups, but the parties are still at
the stage of analyzing the assets and studying partnerships with financial
companies interested in the credit card wing, according to the sources.


KONINKLIJKE VENDEX: Weakening Business Profile Prompts Downgrade
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate credit
rating on leading Dutch nonfood retailer Koninklijke Vendex KBB to 'BB+'
from 'BBB-', following a further weakening of the group's business profile.
The outlook is stable.

At the same time, Standard & Poor's withdrew its 'A-3' short-term rating on
Vendex at the group's request.  The group had about EUR874 million ($986
million) of total debt outstanding at July 31, 2003.

"The downgrade reflects that Vendex's financial profile, which should remain
broadly flat in the coming years, is no longer commensurate with an
investment-grade rating, given the weakening in the group's business
profile," said Standard & Poor's credit analyst Omar Saeed.  "Vendex's
operational performance declined in the first half of financial 2004,
primarily as a result of higher losses at its Vroom & Dreesmann department
store chain."

V&D's continued underperformance -- despite the revitalization program
launched last year, which resulted in an exceptional EUR48 million charge in
the first half of 2003 -- reflects deep-rooted internal issues, in
particular its high operational gearing.  Vendex is now taking radical
actions at Vroom & Dreesmann, including the closure of at least 12 and
possibly up to 24 stores and a 20% reduction in headcount.  This will result
in an essentially EUR80 million - EUR100 million cash restructuring
provision to be taken in the second half of financial 2004, which will be
disbursed in financial 2005.

This restructuring cash outflow could be offset by a combination of lower
capital expenditures (EUR50 million-EUR55 million) and a reduction in
dividend payouts next year.  Vendex's financial profile should,
nevertheless, remain broadly flat in the coming years.

"Standard & Poor's expects Vendex to successfully refinance its upcoming
debt maturities and improve its overall debt maturity profile," added Mr.
Saeed.  "Furthermore, Vendex's operational performance is not expected to
decline further despite the current weak consumer spending in the
Netherlands, and the group is expected to maintain its current financial
profile."


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


PETROLEUM GEO-SERVICES: Discloses Key Dates in U.S. Chapter 11
--------------------------------------------------------------
Petroleum Geo-Services ASA (debtor in possession) (OSE: Petroleum
Geo-Services; OTC: PGOGY) announced that its ongoing restructuring efforts
are progressing as planned.

As previously announced, the company voluntarily filed a petition for
protection under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York on July 29, 2003.  In
a hearing in the U.S. Court yesterday the proposed Disclosure Statement for
the company's First Amended Plan of Reorganization was approved in the form
submitted and an order confirming court approval of the Disclosure Statement
is expected to be entered shortly.

As previously announced, the Disclosure Statement includes, among other
things, background information regarding the company and the circumstances
giving rise to its Chapter 11 filing, a description of the terms and
conditions of the Plan (including the treatment proposed for holders of
claims and interests) and relevant valuation analyses and financial
projections which are updated from the analyses and projections previously
disclosed on June 18, 2003.  Petroleum Geo-Services intends to make
available copies of the co documents on its website at http://www.pgs.com

The company anticipates this timetable for completion of the restructuring:

September 15 Distribution of disclosure material to creditors and
shareholders, including Disclosure Statement, the First Amended Plan of
Reorganization for the company, a calling notice for the extraordinary
shareholder meeting to be held in October and a prospectus as required by
Norwegian law

October 14, 2003 Creditor voting deadline

October 16, 2003 Extraordinary General Meeting of Petroleum Geo-Services
ASA for shareholder approval of restructuring

October 21, 2003 Confirmation Hearing at the U.S. Court

October 22 to November 5, 2003 Offer Period for the offering of new PSG
shares for purchase by existing Petroleum Geo-Services shareholders

November 5, 2003 Anticipated date for consummation of the Plan of
Reorganization

November 6, 2003 Anticipated date of registration of the New Shares to
Existing Shareholders pursuant to the Plan of Reorganization on subscribing
shareholders' accounts at the VPS

The company believes that the offering of shares for purchase by its
existing shareholders will qualify for an exemption from registration under
the Securities Act pursuant to section 1145 of the United States Bankruptcy
Code.  If approval has not been obtained under section 1145, the offering
will have to be made on a registered basis, implying that the Offer Period
(both start date and end date) and the settlement of the Offering will be
delayed.

The board of Petroleum Geo-Services has approved the calling of the EGM to
be held on October 16 and the Norwegian prospectus that will be distributed
to shareholders with the calling notice.

Petroleum Geo-Services is pleased with the reception the proposed
restructuring has had, and encourages all stakeholders to support the
process which is intended to maximize recovery to stakeholders of the
company.  Petroleum Geo-Services believes the proposed restructuring will
provide it with a solid capital structure to support the company's future
business development.  As previously announced, the proposed restructuring
involves a reduction of the Petroleum Geo-Services Group's total debt to a
sustainable level, from approximately US$2.5 billion to approximately US$1.3
billion.  This will be achieved through conversion of the existing bank and
bond debt into new debt and a majority of Petroleum Geo-Services 's
post-restructuring equity.

The Petroleum Geo-Services Chapter 11 case affects the parent company
(Petroleum Geo-Services ASA) level only and does not involve the company's
operating subsidiaries, which will continue full operations, leaving current
and future customers, lessors, vendors, employees and subsidiary creditors
unimpaired.  None of the company's subsidiaries are involved in the Chapter
11 case.

The company intends for the restructuring to be completed before the
year-end 2003 following creditor and shareholder approval in accordance with
the above timetable.

                     *****

Petroleum Geo-Services is a technologically focused oilfield service company
principally involved in geophysical and floating production services.
Petroleum Geo-Services provides a broad range of seismic- and reservoir
services, including acquisition, processing, interpretation, and field
evaluation.  Petroleum Geo-Services owns and operates four floating
production, storage and offloading units.  Petroleum Geo-Services operates
on a worldwide basis with headquarters in Oslo, Norway.  For more
information on Petroleum Geo-Services visit http://www.pgs.com

CONTACT:  PETROLEUM GEO-SERVICES
          Sverre Strandenes, SVP Corporate Communications
          Svein T. Knudsen, VP Finance & Treasury
          Phone: +47 6752 6400

          Suzanne M. McLeod, U.S. IR
          Phone: +1 281-589-7935


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


ASCOM: Dismisses CASH Article as Incorrect, Untenable
-----------------------------------------------------
The speculation in the CASH article about Ascom pulling out of France and
the apparent consequences of this for the company are incorrect and
untenable.

The facts are:

(a) Ascom is not planning to pull out of France.  The closing down of the
two business areas Manufacturing and Payphones is not a topic for the Group.

(b) As was announced at the half-year press conference on September 4, 2003,
Ascom plans an adaptation of the capacity in the areas

(c) Manufacturing and Payphones to meet the market conditions.

(d) Negotiations with the unions have been initiated.  Under consideration
of the discussions that are currently taking place, the company is not in a
position to provide any detailed information about the extent of the
restructuring costs.  Provisions have been made in accordance with the legal
requirements.

In the CASH article, restructuring costs of CHF40 million are referred to.
This figure is not comprehensible and much too high.  The consequences
derived from this for the company's balance sheet are incorrect.

About Ascom

Ascom is an international solution supplier with a comprehensive technology
know-how.  In the areas Transport Revenue (revenue collection and parking
systems), Security Solutions (applications for security, communications,
automation and control systems for infrastructure operators, public security
institutions and the army), Network Integration (network solutions in the
data/voice convergence market) and Wireless Solutions (high quality on-site
communications solutions) with many years of experience in the execution of
complex projects for demanding customers the company has established itself
in important key markets.  Ascom's offering covers analysis and consulting,
system design and system integration, project management, engineering and
implementation, and goes right through to maintenance and support.  The
company has subsidiaries in 23 countries and has a staff of more than 5,000
employees worldwide.  The Ascom registered shares (ASCN) are quoted on the
SWX Swiss Exchange in Zurich.

CONTACT:  ASCOM
          Group Finances and Investor Relations
          Rudolf Hadorn, Chief Financial Officer

          Stettbachstrasse 6
          CH-8600 Dubendorf
          Phone +41 1 631 14 15
          Fax: +41 1 631 28 00
          E-Mail: investor@ascom.com
          Homepage: http://www.ascom.com


SWISS LIFE: Ratings Unaffected by Half-Year 2003 Results
--------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and outlook on
Switzerland-based life insurer Swiss Life/Schweizerische
Lebensversicherungs- und Rentenanstalt
AG (A-/Negative/--) are unaffected by the group's strategic update and
half-year results, published yesterday.  Swiss Life's announcement that it
has returned to profitability and strengthened its balance sheet is in line
with Standard & Poor's expectations.  Pretax profits reached CHF162 million
($116.9 million), compared with a loss of CHF460 million in the first half
of 2002.  The Swiss government's announcement that it has lowered the
guaranteed rate on group life products to 2.25% will have a positive effect
on future earnings.  Swiss Life is delivering on its restructuring plan, and
the outlook could be revised to stable if the group continues its trend of
improving operating results.


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


ABBEY NATIONAL: Mac Millington to Retire as Director
----------------------------------------------------
Mac Millington announced on June 25, 2003 his intention to take early
retirement.  Following the announcement of the appointment of his successor,
who took up the role of Customer Operations Director from September 1, 2003,
Mac will now be standing down from the Board with effect from Monday 8th
September 2003.  Mac will continue to assist with the handover of his
responsibilities in an executive capacity until September 30, 2003.

                     *****

U.K.'s sixth largest bank, Abbey National posted GBP1 billion in losses last
year.  It is now in the process of restructuring its ailing finances.


ATCHISON CASTING: U.K. Subsidiaries File for Administration
-----------------------------------------------------------
Atchison Casting Corporation's (OTC Bulletin Board: AHNCQ) U.K. subsidiaries
(with the exception of Sheffield Forgemasters Engineering Ltd.) filed for
administration on September 8, 2003.

Atchison Casting U.K. Ltd., Atchison Casting's U.K. subsidiary serving as
the holding company for its U.K. operations, filed its petition in the Leeds
High Court.  ACUK has requested that the filings be jointly administered for
procedural purposes.

In England, administration proceedings allow an administrator to continue to
operate the businesses while attempting to sell them in an orderly manner.
ACUK's operations at Sheffield Forgemasters Engineering Ltd. in the oil and
gas, ingot, petrochemical and power generation markets have not been
included in any filing and are operating as usual.

PricewaterhouseCoopers has been appointed as the administrator and is
operating the cast roll making operations of Sheffield Forgemasters Rolls
while it markets these operations for sale in the proceeding.  Atchison
Casting intends to sell all of its U.K. operations (including Sheffield
Forgemasters Engineering) for the highest value.  Management is unable to
predict how much cash will be generated from these sales.  At this time, it
appears unlikely that any funds will be left for Atchison Casting, as the
controlling stockholder, after payment of creditors.

Atchison Casting Corporation, headquartered in St. Joseph, Missouri,
together with its affiliates, produce iron, steel and non-ferrous castings
and machining for a wide variety of equipment, capital goods and consumer
markets.  The Company filed for chapter 11 protection on August 4, 2003
(Bankr. W.D. MO. Case o. 03-50965).  Mark G. Stingley, Esq., and Cassandra
L. Writz, Esq., at Bryan Cave LLP represent the Debtors in their
restructuring efforts.  When the Company filed for protection from its
creditors, it listed $136,750,000 in total assets and $96,846,000 in total
debts.


BAE SYSTEMS: To Continue to Focus on Improving Performance
----------------------------------------------------------
BAE Systems disclosed these latest financial results recently. These are the
highlights:

(a) A solid operating performance in the first half with results in line wit
h expectations

(b) North America, Customer Solutions & Support and Commercial Aerospace
businesses have continued to perform well

(c) Good cash performance with net debt at the end of the period better than
expectations

(d) Decisive steps taken to ensure best practice program management is
applied consistently across the company

(e) Interim dividend maintained at 3.7p per share

Results in brief

Order book(1)               GBP46.4 billion
Sales                       GBP5,682 million
Profit before interest(2)   GBP465 million
Earnings per share(2)        7.2p
Dividend per share           3.7p
Operating cash inflow       GBP273 million
Net debt                    GBP1,254 million

Outlook

The good progress underlying the company's defense businesses in the first
half is expected to continue through the second half of the year.  The U.K.
government's announcement to proceed with the acquisition of new generation
Hawk aircraft has removed a major uncertainty for near term performance
delivery.  As previously indicated, we anticipate the underlying trading
performance for the company's defense businesses to remain broadly in line
with 2002, before taking account of the exceptional charges last year.

Airbus delivered a good first half performance in what remains a difficult
market and we anticipate a similar number of aircraft deliveries to last
year.

(1) including joint ventures and after the elimination of intra-group orders
of GBP2.4bn

(2) before goodwill amortization and impairment and exceptional items
(statutory presentation is shown in the Consolidated profit and loss account
below)

Chairman's letter to shareholders

"Our key priorities are to deliver sustained profitable growth and increased
shareholder value.  We will do this by continuing to focus on improving
performance across our businesses."

Dear Shareholder,

The company produced a solid operating result in the first half of this year
which supports our plans for the full year.  The management team focused on
delivering an improved performance across our businesses and addressing the
key issues arising from the challenges of 2002.  While good progress has
been made, we recognize that there is much more to do to deliver acceptable
profitable growth and increased shareholder value.

We made good progress in building our capabilities in the higher value, and
growing, systems sector of the defense market on both sides of the Atlantic.
Our systems integration expertise gives us a clear competitive edge as
customers put greater emphasis on increasingly sophisticated defense
systems, as seen in the recent Iraq conflict.  Our international reach and
the breadth and quality of our offering mean we are well positioned to
capitalize on future growth in the global defense market.

Given the progress made in the first half of the year and the underlying
strength of the business, the Board is recommending a maintained interim
dividend of 3.7p per share.

At our Annual General Meeting in April, Sir Robin Biggam retired from the
Board and was succeeded by Sir Peter Mason, as our nominated senior
independent non-executive director.  Sir Peter now chairs the Nominations
Committee and is leading the search for my successor.  I am also pleased to
welcome to the Board another independent non-executive director, Michael
Hartnall, who chairs the Audit Committee.  These two new directors, with
their strong business backgrounds, will be valuable additions to our Board.

Under chief executive Mike Turner's leadership we have made considerable
progress in reducing specific risks in our businesses.  The agreements
struck at the beginning of the year with our major U.K. customer, the
Ministry of Defense, were a major step forward.  In addition to addressing
risk in our programs, we have identified areas where the management of our
key programs can be improved and action is being taken to good effect.  Only
customer satisfaction, underpinned by sound commercial contracts, will
deliver the success our shareholders demand.

Our key priorities are to deliver sustained profitable growth and increased
shareholder value.  We will do this by continuing to focus on improving
performance across our businesses.  The outlook for the second half of the
year is positive and I am confident that the management team will continue
to build on our solid first half and deliver sustained improvement in
performance.

Sir Richard Evans
Chairman
September 10, 2003

To See Full Copy of Results:
http://bankrupt.com/misc/BAE_Interim_Report.htm


BIG FOOD: Fitch Assigns 'BB-/B' Ratings, Stable Outlook
-------------------------------------------------------
Fitch Ratings, the international rating agency, has assigned Senior
Unsecured and Short-term ratings of 'BB-' (BB minus) and 'B' respectively to
The Big Food Group plc.  The agency has also assigned a rating of 'B' to the
GBP150 million 9.75% Senior Subordinated Notes due 2012.  The Outlook is
Stable.

The ratings reflect The Big Food Group's market position as the U.K.'s
leading integrated food provider, incorporating both the strong market
position of Booker (acquired in June 2000) in the consolidated U.K. grocery
wholesale market, as well as Iceland's position as the second largest player
in the frozen food retailing segment.  Although the majority of Booker sales
have been generated historically from the long-term declining cash & carry
segment, the group is gradually focusing its wholesale strategy on delivered
wholesaling by growing its Premier symbol group which should allow Booker to
attract independent retailers as captive customers on an ongoing basis.  In
addition, management plans to enhance its market position in the wholesale
segment by supplying the value-added growing independent catering business.

Fitch believes that the wholesale business will continue to be the largest
contributor to both consolidated revenues and profits going forward, with
the recent poor group margin development caused principally by the problems
experienced at Iceland.  Whilst the wholesale business has inherently lower
operating margins than the retail business, notwithstanding Iceland's recent
problems, Fitch recognizes that these are heavily influenced by the large
proportion of tobacco revenues within total divisional sales.

FYE03 results were broadly in line with market expectations, with an
improved H203 EBIT, highlighting the achievement of cost savings across the
group and the return of Iceland to its more traditional Buy-One-Get-One-Free
offering, following an overly aggressive move towards an
Every-Day-Low-Pricing proposition in H103.  While the latter negatively
affected FYE03 consolidated profits, operating margins were further impacted
by higher operating leases.  In relation to the pension scheme position, the
deficit appears to be at the higher end of the range seen for other
retailers in the sector, taking the group's pension-adjusted leverage ratio
to 4.6x (YE02: 4.0x), although the agency recognizes that the level of the
pension liability is exacerbated by the decline in the equity markets.

Notwithstanding its cash generative profile as a food retailer, Iceland is
exposed to the highly competitive U.K. retail market. In March 2002, the new
management team unveiled a three-year plan to turn around the retail
operations through a store segmentation program, including a broader-based
convenience store format, which evidenced a positive outcome for the initial
62 re-formatted stores (8% of the retail store portfolio) up to June 2003.
Fitch believes that the initial positive results of the program need to be
assessed across a larger universe of stores and over a longer period of time
in order to establish whether the improvements can be maintained while
enabling the group to generate sufficient cash flows to meet investment and
debt service obligations in the medium to longer term.  The latter would be
particularly relevant if cost savings arising from the combined purchasing
power of the group are to be continually reinvested in lower pricing to
remain competitive, hence limiting the uplift in net operating cash flow
going forward.

Fitch gains some comfort from the favorable debt refinancing closed in June
2002, which had a positive impact upon the fixed charge coverage ratio and
the lengthening of the group's debt profile.  Big Food Group maintains
substantial off-balance sheet operating lease obligations.  Using Fitch's
lease-adjusted ratios, the group's leverage of 4.1x at YE03 is consistent
with the rating category.  However, the adjusted interest cover ratio of
2.1x, as measured by EBITDAR/Interests+ Rents, is relatively weak for the
category.  Although cost efficiencies and improved working capital
management are expected to benefit cash flows in the medium term, a
demanding capex plan, coupled with fierce competition, will be unlikely to
translate into material improvement in these financial ratios over the next
couple of years.

The two-notch differential between the 'B' rating assigned to the Notes and
the 'BB-' Senior Unsecured rating reflects the weaker position of the Notes
(and their subordinated guarantee) in the capital structure as they are
structurally subordinated to the new senior facilities, the lease guarantee
entered into in connection with the S&L transaction and trade creditors at
the group's operating subsidiaries.  This implies that Noteholders would not
have a direct claim on the cash flow or assets of the operating subsidiaries
in the event of a distress situation.

In addition, Fitch considers that irrespective of the upstream guarantee
provided by the intermediate holding company (BF Limited) and the effective
ranking of the Noteholders as unsecured creditors at this level, potential
recovery prospects for them are further threatened in the event of any
future forced restructuring or break-up scenario due to the low tangible
asset value (as the group owns only 11% of its retail store portfolio).
This view is also influenced by the low indicative multiples being quoted
currently in the mature U.K. retail industry, which may constrain recoveries
even assuming a sale of the business as a going concern.

These ratings were initiated by Fitch as a service to users of its ratings
and are based on public information.


BRITISH ENERGY: FPL Energy Agrees to Buy Interest in AmerGen
------------------------------------------------------------
FPL Energy, LLC, a subsidiary of FPL Group, Inc. (NYSE: FPL) announced
Thursday it has reached an agreement to buy British Energy's 50% ownership
in AmerGen Energy Company, LLC. for $276.5 million.  AmerGen currently owns
three nuclear power plants in the United States representing approximately
2,480 megawatts.

Under the terms of the agreement, an affiliate of FPL Energy will purchase
100% of the outstanding stock in British Energy US Holdings Inc., which owns
a 50% interest in AmerGen Energy Company, LLC.

AmerGen Energy Company is a partnership formed in 1997 between PECO Energy
Company and British Energy.  In 2000 PECO merged with Unicom to form Exelon.
AmerGen currently owns and operates the Clinton Power Station, Three Mile
Island Unit 1 and the Oyster Creek Generating Station.

Under the terms of the partnership agreement and associated power purchase
agreements, Exelon is obligated to purchase 100% of the output not already
under contract from the AmerGen plants through the expiration of their
current operating licenses.

Exelon has a 30-day right of first refusal to elect to purchase British
Energy's 50% interest in AmerGen, at the same price and on the same terms
and conditions as specified in the agreement with FPL Energy.  If Exelon
exercises its right of first refusal and purchases the British Energy
shares, FPL Energy will receive a transaction fee.

In addition, under the partnership agreement, Exelon has the right to elect
to participate in the sale of British Energy's interest in AmerGen (the
"Tag-along Right") on the same timetable and terms and conditions as the
right of first refusal.  If Exelon were to exercise its Tag-along Right, the
consideration offered by FPL Energy for a 50% interest in AmerGen would be
applied pro rata to the interests of British Energy and Exelon, leaving each
with a 25% interest in AmerGen.

Subject to Exelon's right of first refusal, FPL Energy expects to close the
acquisition in the first quarter 2004 as soon as all regulatory approvals
have been obtained.  The company expects the transaction to be immediately
accretive to earnings per share.

"This transaction will further diversify our generating fleet and supports
our strategy of building a moderate risk, well-hedged portfolio," said Jim
Robo, president of FPL Energy.

"Our investment in AmerGen will be financially attractive and provide a
stable revenue stream.  We look forward to working closely with Exelon in
identifying opportunities for additional value creation."

All of the plants will continue to be operated by Exelon. However, according
to the terms of the partnership agreement, FPL Energy will have the right to
appoint three of the six representatives of the Management Committee of
AmerGen that oversees the affairs of the company.

The Clinton Power Station is a 1,017-megawatt boiling water reactor located
near Clinton in Central Illinois.  The plant began commercial operation in
1987 and was sold to AmerGen in late 1999.  Its current operating license
expires in 2026.

Three Mile Island Unit 1 is a 837-megawatt pressurized water reactor located
near Harrisburg, Pennsylvania.  The plant began commercial operation in 1974
and was sold to AmerGen in late 1999.  Its current operating license expires
in 2014.

The Oyster Creek Generating Station is a 627-megawatt boiling water reactor
located in Lacey Township, near the New Jersey shore.  The plant began
commercial operation in 1969 as the first large-scale commercial nuclear
power plant in the United States and was sold to AmerGen in 2000.  Its
current operating license expires in 2009.

The transaction is subject to various regulatory approvals including the
Federal Energy Regulatory Commission and the Nuclear Regulatory Commission,
as well as U.S. antitrust agency review.  In addition, the transaction is
subject to approval by British Energy shareholders, if required, and the
Secretary of State for Trade and Industry of the United Kingdom.

Merrill Lynch & Company acted as financial advisor to FPL Energy and Shaw
Pittman LLP acted as legal advisor to the company.

FPL Group, with annual revenues of more than $8 billion, is nationally known
as a high-quality, efficient, and customer-driven organization focused on
energy-related products and services.  With a growing presence in 26 states,
it is widely recognized as one of the country's premier power companies.
Its principal subsidiary, Florida Power & Light Company, serves more than 4
million customer accounts in Florida.  FPL Energy, LLC, an FPL Group
energy-generating subsidiary, is a leader in producing electricity from
clean and renewable fuels. Additional information is available on the
Internet at http://www.FPLGroup.com,http://www.FPL.comand
http://www.FPLEnergy.com


CALEDONIA INVESTMENTS: Scores Hermes on Plan to Break up Firm
-------------------------------------------------------------
The chief executive of Caledonia Investments, Tim Ingram, criticized the
proposal of Hermes, 9.9% shareholder, to break up the investment trust,
according to the Financial Times.

Hermes, which Mr. Ingram described as a "short-term" investor is acting with
Schroders, another shareholder, to convince Cayzer Trust, the private family
company that owns 37.5% of Caledonia, to back proposals to realize
Caledonia's holdings.

The holders of 9.9% and 5.1% of Caledonia, respectively, are at the same
time proposing to restructure Cayzer Trust if its boards do not present a
better plan.  They told Cayzer Trust shareholders that the plan put forward
last week "or similar alternative proposals" presented an opportunity "to
seek to gain full value for your beneficial ownership".

The Cayzer Trust board intends to call an extraordinary meeting in October.

Mr. Ingram, referring to Hermes, said: "My interpretation is that they want
to cash in their chips and believe they'll get more from liquidation than
from placing 10%."

He, meanwhile, called Schroders' involvement a "puzzle."  He plans to talk
to Any Brough, fund manager at Schroders.

Caledonia had produced a total shareholder return of 24%, against an 11%
negative return for the market as a whole, since July 2001.


EMI GROUP: Successfully Completes Convertible Bond Offering
-----------------------------------------------------------
EMI Group plc announces the successful issue of US$243 million Guaranteed
Convertible Bonds due 2010.  The issue was significantly oversubscribed and
EMI has achieved the tightest terms relative to the initial pricing range,
with a conversion premium at the top of the range and a coupon at the bottom
of the range.  Additionally the reference price was at a premium to
yesterday's closing share price.

The Bonds will be issued by EMI Group Finance (Jersey) Limited and
guaranteed by EMI and Capitol Records, Inc.  They will be convertible into
new EMI ordinary shares.  The Bonds will be issued at par.  The coupon on
the Bonds will be 5.25% payable semi-annually and the conversion price will
be 193.38p, a premium of 40% to the reference price.  Settlement is expected
on or about October 2, 2003.  Applications will be made for the bonds to be
admitted to the Official List of the U.K. Listing Authority and to trading
on the London Stock Exchange's market for listed securities.

Roger Faxon, Chief Financial Officer of EMI, stated:

"We are very pleased with the market's reception of our convertible bond
offering, which was significantly oversubscribed.  This is a great result
that recognises the value being created at EMI.  The bond issue allows us to
reposition existing debt, diversify our sources of capital, and lengthen the
maturity of our debt."

BNP Paribas, HSBC and JPMorgan are Joint Lead Managers and Joint Bookrunners
to the offering.  Cazenove and UBS are Co-managers.

CONTACT:  EMI GROUP PLC
          Claudia Palmer, Head of Investor Relations
          Phone: 020 7795 7635

          Amanda Conroy, Senior VP, Corporate Communications
          Phone: 020 7795 7529

          BNP PARIBAS
          Bertrand Lussigny, Equity Syndicate Desk
          Phone: 020 7595 8640

          Simon Piney, Managing Director, ECM Global Head
          Phone: 020 7595 4565

          HSBC
          Peter Harrison, Managing Director
          Phone: 020 7991 5189

          JPMORGAN
          Tim Elliott, Managing Director
          Phone: 020 7325 4996

          Ian Hannam, Chairman ECDM
          Phone: 020 7325 1168

          Arjun Khullar, Vice President ECDM
          Phone: 020 7325 1675

          CAZENOVE (Financial Adviser to EMI)
          Francis Burkitt, Director
          Phone: 020 7155 8855

          UBS
          Mark Dalton
          Phone: 020 7568 2101


MARCONI CORPORATION: Shareholders Opt to Consolidate Shares
-----------------------------------------------------------
Marconi Corporation plc's (London: MONI) shareholders voted overwhelmingly
(99.7%) at the Company's Annual General Meeting Monday last week in favor of
a share consolidation that will lead to each five existing shares being
consolidated into one new share.

The consolidation took effect from the start of trading on the London market
Tuesday, September 9, 2003.  All other resolutions were passed at the
meeting, each having achieved the requisite majority.

Commenting, John Devaney, Marconi Corporation's Chairman, said: "The
consolidation of the shares is an important further step in normalizing
Marconi's share register.  The consolidation will help us achieve meaningful
savings against the cost of managing a large number of very small
shareholdings."

As first announced on August 19, 2003, following the AGM Douglas McWilliams
joined the Board as a non-executive director.  The company can confirm that
there are no details to be disclosed in respect of Mr. McWilliams pursuant
to paragraph16.4 of the Listing Rules.

Pursuant to the share consolidation, a total of 200,400,000 ordinary shares
of 25p each were listed; 200,001,968 of which were issued on September 9,
2003 and the balance of 398,032 will be block listed for future issuance in
relation to the exercise of warrants.  Application has been made to the U.K.
Listing Authority for the new shares to be admitted to the Official List and
to trading on the London Stock Exchange.  Dealings in the new shares
commenced on September 9, 2003.

The table below sets out the final voting figures.

Resolution      FOR       %    AGAINST    %   ABSTENTION      %
1 Receive   427,432,460  99.51  1,032,507  0.24  1,080,252  0.25
report and accounts

2 Approve   416,417,346  96.94  12,044,290 2.80  1,080,476 0.25
directors'remuneration

3 Re-appoint 428,419,194 99.74      43,309 0.01  1,081,259 0.25
Mr M K Atkinson

4 Re-appoint 428,421,126 99.74      41,376 0.01  1,081,259 0.25
Mr. I M Clubb

5 Re-appoint 428,426,233 99.74      36,484 0.01  1,081,044 0.25
Mr J F Devaney

6 Re-appoint 428,428,563 99.74      36,130 0.01  1,081,054 0.25
Ms. K R Flaherty

7 Re-appoint 428,426,131 99.74      36,570 0.01  1,081,054  0.25
Mr. C C Holden

8 Re-appoint 428,417,201 99.74      45,300 0.01  1,081,259  0.25
Mr. W K Koepf

9 Re-appoint 427,437,460 99.51   1,027,313 0.24  1,080,289  0.25
Deloitte & Touche as auditors

10 Approve  428,380,399  99.73   84,100  0.02    1,080,252   0.25
consolidation of share capital

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services
and solutions company.  The company's core business is the provision of
innovative and reliable optical networks, broadband routing and switching
and broadband access technologies and services.  The company's customer base
includes many of the world's largest telecommunications operators.  The
company is listed on the London Stock Exchange under the symbol MONI.
Additional information about Marconi Corporation can be found at
http://www.marconi.com


NXT PLC: Integration of Technologies to Take Some Time
------------------------------------------------------
Operating Review

Our business focus remains to support our key customers.  Over the course of
the year we have continued to build our Customer Service team and to locate
key personnel where they can provide day-to-day support to our customers.
We have strengthened our operations in the USA, Hong Kong, Taiwan and Japan.
This has had a noticeable benefit in speeding the commercialization process
and we are confident about the future pipeline of products that feature our
technology.  However, we remain involved in a challenging venture as the
inclusion of our technologies in diverse applications and widespread
geographies will take time and dedication.

New Technologies

As announced in February, 3M has taken an exclusive worldwide license to
jointly develop and commercialize one of our non-loudspeaker technologies.
The license involved an upfront payment of $4 million, a further $750,000 if
additional functionality is achieved, continued support for further Research
& Development, and royalty payments for the life of the patents.  The
arrangements with 3M are significant not just because of the income involved
but because they clearly evidence the benefits of long-term, deeply-built
customer relationships.  3M has not only signed the Group's largest contract
to date but also, in the VikuitiT XRVS-120 rear projection screen, brought
out one of the first SoundVu-enabled products

Automotive

We remain confident that a vehicle featuring NXT technology will be on the
market by the close of 2004.  Our route to market is two-fold: first, by use
of our SurfaceSound technology either in direct excitation of the trim or in
modular drive units; and, secondly, by the inclusion of our Audio Full Range
(AFR) drivers in place of conventional speakers.  In both cases we have made
good progress.

Johnson Controls (JCI) has this week demonstrated a General Motors Zafira
car with built-in, direct drive SurfaceSound panels at the Frankfurt
International Motor Show.  This is a significant development by one of the
automotive industry's foremost Tier 1 suppliers and we are encouraged by its
stated intention to make the technology available from model year 2007,
calendar year 2006.  JCI has been drawn to NXT by the many benefits of NXT
technology in the automotive environment.  Weight savings (one or two
kilograms in their estimate); improved acoustics thanks to the better
interaction of NXT loudspeakers with reflective surfaces and the wide
directivity of the panels' sound output; greater design freedom as a result
of the ability to build NXT panels into unconventional areas within a
vehicle such as the head-liner and pillars between the windows; the
opportunity to use the space once occupied by conventional speakers for
other purposes such as for the integration of electronic products; reduced
exterior noise pollution due to the absence of holes in the trim; and, the
removal, thanks to the invisible nature of the implementation, of enticing
targets for thieves.  More encouraging still is the result of JCI's consumer
research, which indicated that 75% of respondents had a preference for a
flat panel solution.

Integral to the JCI demonstration was the role of Philips Sound Solutions
(PSS).  In July of last year we announced that PSS had signed a two year
agreement to develop, manufacture and market an exciter for automotive use.
JCI are using this exciter in their demonstrator and this confirms our dual
approach of establishing the supply chain and encouraging key industry
players to adopt our technology.

In addition to developments with JCI and PSS we have had a positive response
to our AFR technology.  AFR is capable of delivering a frequency range of
60Hz to 20kHz by combining the efficient low radiation of a piston at low
frequencies with all the key acoustic advantages of a Distributed Mode
Loudspeaker.   Because it is shaped like an existing conventional drive unit
AFR represents a drop-in solution, and as a result we do not have to wait
for a re-design before our technology can be included in a vehicle.

Commercial Audio

Penetration of our technology into the commercial and architectural audio
market is hampered by the fragmented nature of those markets and by the
absence of any dominant brands.  Our approach of working with leading
companies to introduce our technology is therefore more difficult.

Armstrong, the world's largest provider of suspended ceilings has seen its
i-ceilings NXT-based ceiling tile installed across a number of high profile
sites in the UK including buildings belonging to Honda, H&M, Hard Rock
Casinos, ASDA and Holiday Inns as well as York, Loughborough and Edinburgh
universities.  NXT technology was employed by Dimension Audio to turn
perimeter advertising hoardings into loudspeakers at last year's
Commonwealth Games.  Mission has brought out a commercial version of its
acclaimed fs2 home theatre system, the fs2 PRO.  First exhibited at PLASA
2002, the U.K. industry's show case event, the fs2 PRO is now part of an
audio system supplied by Mission to the new development at the Birmingham
Bullring.  The practical benefit of the broader coverage in intelligible
sound provided by NXT solutions is one of cost saving as the installer at
the Bullring complex needed to use approximately 60% fewer NXT-based
speakers to deliver the same audio coverage as a system using conventional
speakers.

In Belgium long-term NXT licensee Deltavox has now completed its 100th
installation using NXT technology.  Deltavox has created a successful
business out of pioneering NXT installations and has found a receptive
market for the technology thanks to the fact that NXT speakers can deliver
uniform sound distribution and good intelligibility without intruding on the
aesthetics of any particular venue.

The benefits of NXT technology are also relevant to the pro-audio market
where the life of the "roadie" can be much improved thanks to our recently
developed Bass panel and Mini-Pro system, the latter of which was recently
demonstrated at PLASA 2003 by Fane Acoustics Ltd.  The combined system has
power handling of between 250 and 300 watts and will cover a bandwidth of
between 45HZ and 20 kHz, clear evidence that NXT technology can be both loud
and deliver deep bass.

Consumer Audio

One of the outstanding developments of the year was the launch by Pioneer,
one of the world's leading audiovisual companies, of two NXT-based systems.
The 2.1 speaker package, which is sold bundled with a combined mini-disc, CD
and DVD system, is available in Japan and the 5.1 home theatre system is
available both in Japan and across Europe.  These two systems are the first
to use acrylic plastic for the speaker panels, a true revolution in speaker
design.

In the USA Brookstone has had tremendous success with the Wafer Thin CD
system which was one of its best selling items last Christmas, helped by the
ringing endorsement from Oprah Winfrey on her Holiday Season show watched by
some 25 million people.  Brookstone has launched a second product, a CD case
with built-in NXT speakers, with more products to follow this autumn.

The CD case concept has proven popular with other licensees too.  TDK has
brought out two models, a single case mono version and a double case stereo
version, which are now being distributed in Asia, Australasia, Europe and
the USA.  In the USA Savier, a subsidiary of Nike, has recently launched a
backpack called the Sonic Bag with integrated Sonic Impact SI5 speakers.
These backpacks along with separately available SI5 speakers are now
available in the leading US electronics chain, Best Buy, with other major
retailers to follow in the run-up to Christmas.

Multimedia and Computing

In July, Synaptics, a leader in touch pads and other human interface
solutions for mobile computing and communications devices, announced that it
is to develop integrated NXT-based audio solutions for laptops. Synaptics is
a supplier of touch pads to the world's leading laptop OEMs and its
interface solutions are used in 70% of laptops with touch pads.  Synaptics
intend to integrate NXT's audio technology with their capacitive sensing
technology to develop a touch pad that doubles as a speaker.  Demonstrations
of prototype products will be made to Synaptics' customers by the end of the
year and we have high hopes of penetrating the 40 million units per year
laptop market. In the peripheral multimedia loudspeaker market NXT
technology is present in products available in retail stores around the
world thanks to the activities of brands such as Philips, TDK, Maxell and
Packard Bell.

Mobile Communications

With 5 out of the top 6 mobile phone manufacturers now licensing NXT
technology we remain optimistic of our ability to take a share of this huge
market.  NEC subsidiary Authentic has already publicly shown PDA and mobile
phone demonstrators in Japan.  These prototypes help demonstrate the
superior sound quality of NXT technology, particularly in hands-free mode,
where the broader dispersion pattern of the sound output ensures better
intelligibility.  In addition the fact that the whole screen is the
loudspeaker removes the need for precise coupling to the ear, greatly
enhancing the ease of use. Importantly Authentic has confirmed that both
demonstrators meet the required audio standards for both GSM and 3G.  It
remains the case that, if the plans presented to us by our licensees remain
unaltered, we expect a mobile phone that uses our technology to be in the
market by the end of this year.

Key to our success in the mobile telephony market has been the development
of the supply chain.  The NXT solution in mobile phones requires the
excitation of the viewing lens of the handset and to do this effectively in
the space available our patented Distributed Mode Actuator (DMA) is
required.  Great effort has been made in establishing an effective supply of
this and, to date, ten separate companies have signed licenses to
manufacture the DMA: four in each of Taiwan and Japan and two in Korea.

Special Applications

The retail proposition for our SoundpaX loudspeakers did not deliver as
expected.  Our experience suggests that whilst they provide excellent audio
they are, nonetheless, a difficult concept to market: cardboard has low
value associations; the market for a secondary pair of loudspeakers is small
and undeveloped; and, the retail floor space required was judged to be too
much to provide a valuable return.  However, manufacturing has now been
established in China, greatly reducing cost, and new, smaller sized samples
sent to prospective customers and distributors and we remain hopeful that
these initiatives will generate revenue in the near future, particularly in
the promotional market.

In the toy industry there has been a positive response to NXT technology
thanks to its acoustic advantages, design flexibility and ability to
dispense with grilles, a weakness in the toy's defenses against destructive
children.  This is a significant market with a requirement for tens of
millions of speakers each year.  However, the prices paid for loudspeakers
by the toy companies can be very low.  NXT is at the beginning of its
commercialization process and the price of our components reflects this.
Progress, however, is being made in reducing the cost of our solutions and
the toy industry could one day be a valuable market for NXT.

TV and Display

In October of last year SoundVu technology became a practical reality with
the launch by NEC of its Valuestar T desktop computer complete with a
SoundVu enabled 17" LCD monitor.  Since then NEC has added more than 20
additional models in the range.  The Valuestar range has been a great
success for NEC and has helped the company regain market leadership in
Japan. The SoundVu implementation uses two exciters placed on either side of
the screen to turn the protective acrylic screen into the Distributed Mode
Loudspeaker.  The results are stunning, with clear, crisp sound coming
direct from the screen.  NEC's successful implementation has done much to
stimulate interest in the market.

3M announced in June of this year the launch of a rear projection screen
using SoundVu technology. Known as the VikuitiT XRVS-120 eXtended Resolution
Video Screen with Sound Enhancement, the product is part of 3M Optical
Systems Division's suite of Vikuiti display enhancement products for the
professional rear projection screen market.  In addition, we are currently
engaged in discussions with all the major plasma and LCD TV brands and have
made great progress in scaling up SoundVu technology for use in larger
screen sizes, thanks in large part to extra power delivered by second
generation exciters. SoundVu requires an additional transparent panel,
already available in all plasma screens and increasingly in LCD monitors
which have extra panels for the enhancement of brilliance, or for privacy.

Where such panels are not available SurfaceSound can be a solution.  Indeed,
we are encouraged by the response of the key manufacturers to the advances
we have made with our SurfaceSound technology for this market.  These new
developments  offer design advantages, not least the removal of the speaker
grille in addition to our established acoustic benefits.   If the customer
plans we have seen remain unchanged we are confident that a major brand will
launch a mass market TV with integrated SurfaceSound technology by the end
of the next financial year.

20/20 Speech

20/20 Speech remains at an early stage of its commercial development and
continues to operate in a difficult market.  However, the year has seen an
important shift in 20/20 Speech's reliance on revenues from the Ministry of
Defense to new, commercial sources.  By the last quarter of the year
revenues from the MoD had fallen from 98% of total income in the first
quarter to just 12%.  Our success in this respect has come from the
deployment of new products in new markets.  A significant breakthrough for
the business has been the development of automatic text and video
synchronization for the US legal market.

The US legal market relies heavily on pre-trial recorded interviews, known
as depositions. It is estimated that 10,000 depositions are taken a day in
the US, with an increasing number being "videoed" for post interview
analysis and presentation. 20/20 Speech's technology enables the text to be
automatically aligned to the video, at a fraction of real-time, and hence
provide an index for searching the video content. 20/20 Speech has signed a
number of US resellers and is experiencing significant growth in the number
of hours processed.

Elsewhere, 20/20 Speech has built upon its success in the subtitling sector,
by developing a product that further increases the efficiency of subtitling
production. Screen Subtitling Systems, the largest and most experienced
supplier of subtitling systems in the world, is amongst the first companies
to utilize the new technology.

In the "people on the move" mobile workforce sector, 20/20 Speech has
launched its Activator product through retail outlets, including Dixons and
Argos as well as through various e-commerce websites. 20/20 Speech has
extended its presence in the professional market through agreements with
Unitec and Codeway to utilize the Activator product in the logistics sector.
This is used for voice controlled data capture and for alerting mobile
workers to contents of e-mails and SMS messages.

In terms of new software development, 20/20 Speech is building upon its
expertise in paralinguistic software to develop "audio mining" technology,
which is capable of analyzing and retrieving information from on-line and
off-line video and audio files. The on-line technology allows real-time
validation of voice in areas such as call centers and radio and also aids
quality assurance processes, such as ensuring that certain phrases are
stated to customers. The off-line technology enables the analysis of
recorded video and audio to retrieve all occurrences of particular phrases
or sounds. 20/20 Speech has signed a Non-Disclosure Agreement with a major
content provider to assist them in the analysis and retrieval of specific
types of audio and video from very large volumes of stored information.

Cyrus

Cyrus has had another good year, buoyed by strong growth in the UK and by
robust maintenance of its margins.  The year 2002/03 saw the launch of a
range of new products including the entry level 6 series; the 8 series which
replaces the 7 series and now constitutes our main range of home
entertainment products; and, the X series, Cyrus' most technically advanced
and highest performing product range to date.

In addition we have taken important new steps to enter the custom home
installation market.  The new Cyruslink system combines the latest in
wireless and digital media storage and now offers very high quality audio
along with the convenience of a central library of music that can be
accessed from anywhere in the user's home.  Progress in the core technology
has been matched by progress in growing distribution channels and we have
established new partners in Italy, Spain, Korea and Canada.

IP

Eleven of NXT's earliest patent applications filed in the European Patent
Office in 1996, have now been granted.  A German trade association had
originally opposed the eleven but opposition was withdrawn in early 2003
following robust counter arguments from NXT.  The European Patent Office
(EPO) has reviewed the inventions again and accepted that ten of the patents
required no changes to their claims. The eleventh, the fundamental and very
broad Base Case required some very minor changes to the wording in a small
proportion of the device claims and, we believe, should soon be accepted by
the EPO.  This again is evidence that NXT's intellectual property claims can
stand up to the high standards of scrutiny set by the EPO.  Further good
news is that the basic patent for SoundVu technology has been granted in
Europe.

In line with our strategy of rationalizing our patent portfolio to maintain
coverage of key inventions as they go to grant whilst dropping peripheral
applications in unimportant markets, we have, during the last financial
year, reduced the number of patent applications from 930 to 361 and the
number of granted patents from 663 to 379.  Patent protection in key
markets, a core part of our strategy, has improved, however, and we now have
three patents in China, 21 in Hong Kong and 19 in Taiwan in addition to
which granted patents in the USA have increased from 47 to 57.

The year ending June 2003 has been one of enormous challenge for the Company
as we have simultaneously sought to build our customer base and re-organize
the Company to support that process.  In the course of events we have lost a
number of people who over time have made a valuable contribution to the
Company's business and I want to join the Chairman in thanking them for
their efforts.  The remaining team at NXT, 20/20 Speech and Cyrus is highly
motivated and focused on supporting the commercialization of our
technologies amongst our customers.  I believe we have the right people,
strategy and technology and remain confident about the long-term future of
NXT.

David Pearson
Chief Executive

About NXT

NXT's business is the invention, patenting, licensing and marketing of
enabling technologies in sound and speech. NXT is setting a new
world-standard in loudspeakers.  It offers a superior alternative to
existing technologies across most product sectors while creating new
opportunities where conventional technology has been unable to deliver.  NXT
has developed industry-specific expertise and is focused on helping its
licensees advance product to market efficiently and cost effectively.

NXT has more than 250 licensees for its patented SurfaceSoundŽ flat panel
loudspeaker technology.  Licensees include 3M, Acer Computers, Armstrong,
Authentic (mainly owned by NEC), DaimlerChrysler, Fujitsu Ten, General
Motors, Intier, LG Electronics, Matsushita MEI, Philips, Pioneer, Siemens,
Sony Ericsson Mobile Communications, TDK and Visteon. The company, which is
fully listed on the London Stock Exchange (symbol NTX), has Technology
Centers in Cambridge and Malvern and operations in London, Yokohama, Hong
Kong, California and Detroit.
For more information, please refer to: http://www.nxtsound.com


NXT PLC: Credits Revenue Increase for First-half Progress
---------------------------------------------------------
Chairman's Statement

In the year to June 30, 2003 NXT plc achieved revenues of GBP8.0 million, a
60% increase on the previous year.  The retained loss for the Group was
GBP9.3 million compared with GBP10.8 million in the previous year.  At the
end of the year cash balances were GBP6.0 million compared with GBP12.2
million at June 30, 2002 and thus cash outflows in the year were GBP6.2
million, compared with GBP10.5 million in the previous twelve months.  This
progress has been achieved both by increases in revenue, helped
substantially by a major contribution from the license with 3M announced in
February, and by further reductions in overheads.  Volume sales of
loudspeaker products using NXT technology grew in the year by 40% and we
expect this strong trend to accelerate.


On July 29 we announced a proposed 1 for 5 rights issue, fully underwritten
by our new advisers Bridgewell, which was approved by shareholders at an EGM
held on August 14, 2003.  On September 8 and 9, 2003 the company issued an
aggregate of 14,850,425 ordinary shares pursuant to the rights issue for a
net cash consideration of GBP9.5 million after expenses.  These proceeds
will be used to strengthen the balance sheet:

(a) to place the Group in a stronger financial position which should assist
in negotiations with our potential customers;

(b) to allow NXT to defend robustly its intellectual property should it be
necessary; and

(c) to ensure that the Company is not at risk from any delays in its
customers' product launch plans.

The great majority of shareholders (91.3%) took up their rights and the
Board has asked me to express our thanks for your continued support to the
company.

In the last twelve months sales growth in New Transducers Ltd. has been over
200%, strongly supported by a major license with 3M.  Work on the 3M project
continues to run ahead of plan.  Key developments in the year have been the
further strengthening of relationships with major corporations such as NEC,
TDK and Pioneer in Japan; 3M and Brookstone in North America; and, Philips
in Europe.  NEC successfully launched the world's first SoundVu LCD monitors
in October 2002 and has expanded the range to 20 models.  In June 2003 NEC
announced that it has developed mobile phone prototypes for the 3G market
using NXT SoundVu technology.  Based on this and information from other
licensees we expect the world's first mobile phone using SoundVu technology
to be introduced this year, as we announced at the time of our interim
results in February 2003.

This week at the International Motor Show in Frankfurt NXT licensee Johnson
Controls (JCI) has been demonstrating a General Motors Zafira automobile
with NXT direct drive loudspeakers powered by special exciters produced
under license by Philips Sound Solutions.  JCI has stated that its research
shows a strong consumer preference for NXT SurfaceSound speakers in the
vehicle and it expects to supply the product from model year 2007.

To some of our shareholders this may seem a long time to wait and it is
worth emphasizing that while we are confident of increasing take-up of our
technology, the time to market can be slow, and the roll-out of new products
gradual, as companies gain confidence in our technology and learn to deal
with all the issues that arise from its adoption.  However, when the
technology is adopted on an automotive platform the volumes are likely to be
substantial and sustainable for the long term.  In any event, based on
information from our licensees, we still expect the first car using NXT
technology to be produced in 2004.

20/20 Speech has maintained its previous levels of performance but remains
at an early stage in its commercial development and continues to operate in
a difficult market where a number of its competitors have failed to make an
impact.  However, there has been a marked change in the profile of the
company's customer base as business with the Ministry of Defense declines
and is replaced by new commercial business.  The most promising feature is
the opportunity to adapt our transcription software, first developed for use
in broadcasting, to new markets such as the legal deposition market in the
U.S.  It must be recognized that whilst these new opportunities represent an
exciting potential source of new business, they are still in the very early
stages of commercialization.  The shareholders, NXT plc and QinetiQ, are
therefore constantly mindful of the appropriate structure for 20/20Speech
and are keeping this under close review.

Cyrus Electronics has continued to perform well with sales growth of 7%,
supported by innovative product development and the introduction of products
into new markets.

Your Board and management are very conscious of the need to keep costs
firmly under control while still taking all the necessary actions to support
customer relationships and drive the business. The business is evolving from
a research-based operation to one that is highly customer focused. As a
result there has been about a 25% reduction in the headcount of the two
technology businesses. Many of these people contributed great service to the
Company and I take this opportunity to thank them for their efforts.

The remaining staff are highly motivated and know what they have to do to
make NXT successful.  I am confident that under David Pearson's leadership
the Company will go on from strength to strength.  All of us are committed
to the creation of long-term, profitable growth and shareholder value.

Gordon Owen CBE
Chairman

About NXT

NXT's business is the invention, patenting, licensing and marketing of
enabling technologies in sound and speech. NXT is setting a new
world-standard in loudspeakers.  It offers a superior alternative to
existing technologies across most product sectors while creating new
opportunities where conventional technology has been unable to deliver.  NXT
has developed industry-specific expertise and is focused on helping its
licensees advance product to market efficiently and cost effectively.

NXT has more than 250 licensees for its patented SurfaceSoundŽ flat panel
loudspeaker technology.  Licensees include 3M, Acer Computers, Armstrong,
Authentic (mainly owned by NEC), DaimlerChrysler, Fujitsu Ten, General
Motors, Intier, LG Electronics, Matsushita MEI, Philips, Pioneer, Siemens,
Sony Ericsson Mobile Communications, TDK and Visteon.  The company, which is
fully listed on the London Stock Exchange (symbol NTX), has Technology
Centers in Cambridge and Malvern and operations in London, Yokohama, Hong
Kong, California and Detroit.
For more information, please refer to: http://www.nxtsound.com


NXT PLC: Reports Slightly Reduced Loss in Preliminary Results
-------------------------------------------------------------
NXT plc, the British audio and speech technology company, announces its
preliminary results for the year ended June 30, 2003.

Highlights

(a) Overall group sales up 60% at GBP8.0 million (2002: GBP5.0 million).

(b) Core flat-panel technology sales of GBP4.1 million up 216% on previous
year (2002: GBP1.3m), including major contribution of license with 3M.

(c) Loss for the period was GBP9.3 million (2002: GBP10.8 million).

(d) Cash balances at June 30, 2003 of GBP6.0 million (2002: GBP12.2
million).

(e) Rights Issue successfully completed to raise an additional GBP9.5
million net of expenses since year-end.

(f) Net cash outflow of GBP1.5 million, including 3M cash, in six months to
June 30, 2003.

(g) Significant new licenses with 3M and Pioneer.

(h) NEC launch range of SoundVu-based LCD monitors and exhibit SoundVu-based
mobile phone technology demonstrator.

(i) Johnson Controls and Philips Sound Solutions demonstrate General Motors
Zafira with NXT direct drive loudspeakers this week.

(j) 20/20 Speech signs US resellers for legal deposition market.

Commenting on the results, Gordon Owen, Chairman, said:

"Key developments in the year have been the further strengthening of
relationships with major corporations such as NEC, TDK and Pioneer in Japan;
3M and Brookstone in North America; and, Philips in Europe.  NEC
successfully launched the world's first SoundVu LCD monitors in October 2002
and has expanded the range to 20 models.  In June 2003 NEC announced that it
has developed mobile phone prototypes for the 3G market using NXT SoundVu
technology."

About NXT

NXT's business is the invention, patenting, licensing and marketing of
enabling technologies in sound and speech. NXT is setting a new
world-standard in loudspeakers.  It offers a superior alternative to
existing technologies across most product sectors while creating new
opportunities where conventional technology has been unable to deliver.  NXT
has developed industry-specific expertise and is focused on helping its
licensees advance product to market efficiently and cost effectively.

NXT has more than 250 licensees for its patented SurfaceSoundŽ flat panel
loudspeaker technology.  Licensees include 3M, Acer Computers, Armstrong,
Authentic (mainly owned by NEC), DaimlerChrysler, Fujitsu Ten, General
Motors, Intier, LG Electronics, Matsushita MEI, Philips, Pioneer, Siemens,
Sony Ericsson Mobile Communications, TDK and Visteon.  The company, which is
fully listed on the London Stock Exchange (symbol NTX), has Technology
Centers in Cambridge and Malvern and operations in London, Yokohama, Hong
Kong, California and Detroit.
For more information, please refer to: http://www.nxtsound.com

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

CONTACT:  NXT PLC
          David Pearson, Chief Executive
          Phone: 020 7343 5050

          CAPITAL MS&L
          Peter Thoms, Finance Director
          Nick Lockwood
          Phone: 020 7878 3181 or 07941 783 324
          Paula Crymble


PACE MICRO: Completes Management Buyout of VoIP Subsidiary
----------------------------------------------------------
Pace Micro Technology has completed the negotiations for the management
buyout of its VegaStream subsidiary.

VegaStream develops Voice over Internet Protocol (VoIP) gateways for the
small and medium enterprise and service provider CPE (customer premises
equipment) markets.  As previously announced Pace will receive as
consideration a 20% stake in the new company at a subscription price valued
at approximately GBP0.6 million.

The transaction will have no material impact on Pace.

                     *****

Pace Micro recently said that despite its steady progress in the U.S., the
world's largest digital television market, its operations in the region will
continue to lose money for the next six months.


ROYAL & SUNALLIANCE: Could Announce Divestment of Sequence Soon
---------------------------------------------------------------
Talks between Royal & SunAlliance and Skipton Building Society regarding the
sell-off of Sequence residential real-estate brokerage have already reached
exclusive status, according to The Scotsman.

The sale of Skipton, Britain's seventh largest building society, is part of
Royal & SunAlliance's drive to raise capital to repair finances hit by
asbestos claims and three years of falling stock markets.

The sale, which could be announced within days, could fetch the company as
much as GBP50 million, the report said.

Royal & SunAlliance is also underwriting fewer policies to contain the
crisis.  It further disclosed last week plans to raise GBP960 million in a
share sale.  It may also raise provisions for claims by as much as GBP800
million in the third quarter.


SINGER U.K.: Bar Date for Scheme Claims Scheduled November 4
------------------------------------------------------------
No:763 of 2003
In the High Court of Justice
Chancery Division Companies Court
In the Matter of SINGER U.K. LIMITED
(In Administration)
And in the matter of The Companies Act 1985

Notice is hereby given that an order of the High Court of Justice (Chancery
Division) dated July 10, 2003 sanctioned a Scheme of Arrangement in relation
to Singer U.K. Limited (in Administration).

All Scheme Claims must be received by the Joint Scheme Administrators by
November 4, 2003, the Bar Date.  Each Scheme Creditor shall be deemed to
have waived his Scheme Claim against the company and will receive no payment
in respect of it, unless the joint Scheme of Administrators have received
the completed Claim Form within this time limit (subject to the Joint Scheme
Administrators' absolute discretion to allow late claims in certain
circumstances).

Copies of the Scheme and Claim Forms are available by request in writing
made to Philip Cake of Gibson Hewitt, 5 Park Court, Pyrford Road, West
Byfleet Surrey, KT14 65D, fax number +44(0)1932 336150, telephone number
+44(0)1932 336149.

Dated August 21, 2003
Lynn Gibson and Robert David Hewitt
Joint Scheme Administrators


SPORTINGBET PLC: Ballester Resigns; Further Shakeup Expected
------------------------------------------------------------
The Board of Sportingbet Plc announces that Mr. Alfred Francis Ballester has
tendered his resignation as a Non-Executive Director of the company with
effect from the company's AGM to be held next month on Thursday October 23,
2003.  The Board wishes to thank Mr Ballester for his help and guidance over
the past two years.

In addition, the Board has decided that, in light of the very substantial
growth the company has undergone since flotation, a formal review of the
Board's composition will shortly be undertaken in order to ensure its
composition reflects the forthcoming needs of the Sportingbet Group.

                     *****

In June, Sportingbet entered into discussions with a view to securing
additional funding in order to meet earn out obligations due September,
including an offer for the whole of the issued share capital of Sportingbet.


STIRLING GROUP: Accelerated Restructuring Starts to Take Effect
---------------------------------------------------------------
At Thursday's Annual General Meeting, Robert Coe, Chairman of Stirling Group
PLC, gave this statement:

"The benefits of the accelerated restructuring of our core business which
took place last year are becoming evident in the current performance of this
division.  Our brand business, meanwhile, has a number of challenges still
to be addressed and progress remains slower than we had hoped.

I announced last December that the executive directors had been given
permission to explore the possibility of a management buy out.  This was
followed in June by a second announcement reporting that they had received
initial indications of support at an offer level of 22p per share.  At the
present time I can report that discussions with potential providers of debt
and equity funding are at an advanced stage and I expect to be able to make
a further announcement clarifying the outcome of these discussions in the
near future."

CONTACT:  STIRLING GROUP
          Steven Bentwood, Chief Executive
          Phone: 0161 926 7000
          Peter Rusby, Finance Director

          Josh Royston
          Phone: 020 7067 0700
          Weber Shandwick Square Mile


TRINITY MIRROR: Independent News May Bid for Irish Titles
---------------------------------------------------------
Talks are underway for a possible bid from Independent News & Media for
Trinity Mirror's Irish titles, which include the Belfast News Letter and
Derry Journal, according to The Guardian.  The newspapers are valued at
about GBP40 million.

The publisher of the Independent and Belfast Telegraph is considering the
possibility of buying the entire portfolio, but it is likely to come under
close scrutiny with the competition commission.  Questions could arise in
relation to its possible acquisition of the Belfast News Letter as it
already owns the market-leading Belfast Telegraph.

But chairman Tony O'Reilly is reportedly planning a consortium bid, which
would see the News Letter being acquired by a local company or businessman,
leaving Independent News with the remaining titles in the portfolio.  His
party is already talking to a number of key business figures in Northern
Ireland, and it emerged that Ulster David Burnside, is interested in the
Trinity Mirror titles.

A possible transaction is perceived likely to become controversial even if
it does not involve the Belfast News Letter.  The report noted that the
competition commission cleared the acquisition three years ago of the
Belfast Telegraph, a newspaper with a moderate unionist editorial line, only
after Independent News gave assurances that its editorial integrity would
stay intact.

The deadline for initial bids is set September 19.


                            *********


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
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Gonzales, Editors.

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

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