/raid1/www/Hosts/bankrupt/TCREUR_Public/030926.mbx              T R O U B L E D   C O M P A N Y   R E P O R T E R

                              E U R O P E

                  Friday, September 26, 2003, Vol. 4, No. 191


                               Headlines



F R A N C E

AERIS: Crisis in Airline Industry Claims Another Victim
ALSTOM SA: Concern on Long-term Financing Remains, Fitch Says
VIVENDI UNIVERSAL: New York Court Holds Payment to Messier
VIVENDI UNIVERSAL: Narrows Net Loss to EUR632 MM in First Half


G E R M A N Y

ALLIANZ AG: Allianz Life's Sale of Business Won't Affect Ratings
FARMATIC BIOTECH: Moves to General Standard to Save Costs
GRUNDIG AG: Creditors Give Go-ahead for Sales Process


H U N G A R Y

RABA RT: Establishes Joint Venture With Chinese Partners


N E T H E R L A N D S

KONINKLIJKE AHOLD: Completes Sale of Operation in Paraguay


P O L A N D

KREDYT BANK: To Reorganize Branches, Implement Return Leasing
INSTAL PLOCK: Seeks Investors To Save Company From Going Under


S P A I N

EUROPEAN CITY GUIDE: Shut Down, Fined for Advertising Fraud


S W I T Z E R L A N D

SWISS INTERNATIONAL: Joins Oneworld to Enhance Prospect


U N I T E D   K I N G D O M

ABBEY NATIONAL: Simplifies Business to Turn Banking on its Head
ABBEY NATIONAL: Relaunches Business, Shortens Brand to Abbey
ANITE GROUP: Issues Profits Warning for First Half Results
BOXCLEVER: Largest Creditor Calls in Administrative Receivers
BRITISH AIRWAYS: Opens Pakistan Trips; Flights to Start December

CALEDONIA INVESTMENTS: Cayzer Challenges Performance Record
CLUBHAUS PLC: Debt Burden Erases Prospect of Profit for the Year
CORUS GROUP: Pre-exceptional Operating Loss Narrows to GBP36 MM
KLEENEZE PLC: Reports Improvement in Sales in First Quarter
MAL HOLDINGS: Royal Bank Calls in Joint Administrative Receivers

MANGANESE BRONZE: Reports Pre-tax Loss on Ordinary Activities
MARCONI CORPORATION: Sells Shareholding in Bookham Technology
NETWORK RAIL: Rob Den Besten Appointed Non-Executive Director
NORTHUMBRIAN WATER: First Day in Bourse Far from Encouraging
PEDSHIRE LIMITED: Administrators Seek Investors To Rescue Firm

ROOM SERVICE: Publishes Accounts, Restores Trading in AIM
ROYAL MAIL: Says No Signs of Possible Strike in London


*********



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


AERIS: Crisis in Airline Industry Claims Another Victim
-------------------------------------------------------
France's third-largest carrier, Aeris, filed for bankruptcy on
Tuesday in light of a bleak prospect of turning in cash needed to
renew license, and sustain operations.

The Toulouse-based carrier said it had reached a preliminary
agreement for a EUR18 million (US$20.7 million) funding with its
aircraft rental companies, but it does not expect to finalize the
deal ahead of a government-imposed deadline to secure a permanent
license.  The government has given it until the end of September
to raise EUR10 million to continue operating with the license.

According to the company it had enough cash to continue
operations "for the coming weeks," but it may run out of funds
due to the "the steady increase" of low cost business during the
coming months when charter activities are traditionally
difficult.

The Financial Times said the commercial court of Toulouse will
decide next month if there is a viable offer for the company.  If
there was none, the court will either give the carrier more time,
or put it into liquidation.  Aeris said it already received
indications of interest from two potential bidders.

The company, whose majority shareholder is private equity group
TS&P Partners, plans to continue normal operations during the
receivership.

Aeris' bankruptcy follows that of French airlines Air Lib and Air
Littoral this year.


ALSTOM SA: Concern on Long-term Financing Remains, Fitch Says
--------------------------------------------------------------
Fitch Ratings, the international rating agency, said that Alstom
SA's revised refinancing package will provide the group with some
cushion in the short-term, but concerns persist over the group's
longer-term financing requirements, in particular the EUR650
million bond maturing in July 2006, and the strength of the
underlying operations.

Fitch said concerns remain regarding weak cash flow generation.
Alstom continues to burn cash, reflecting additional costs
relating to provisions for the GT24/26 contracts, slowdown in
customer deposits and lower orders due to the lack of bonding
facilities.  This is not expected to change in the short-term
because of scheduled cash outflows relating to the GT24/26
contracts and a 25% decline in the order book to about EUR7
billion at 1H04, against a backdrop of challenging market
conditions.  In line with this the agency still views Alstom at
the lower end of the non-investment grade category.

With regard to the outstanding bonds, there is comfort for
holders of the EUR550m bond maturing in February 2004, with a
proportion of the facilities earmarked to repay this liability.
However, the repayment of the July 2006 bond remains in the
balance.  Fitch notes that the group has existing facilities
totaling EUR1.46bn maturing in the period through to FYE07.  As a
result of the revised package announced yesterday, Alstom has a
EUR1.5 billion-subordinated loan and EUR200 million bond maturing
in December 2008 and December 2018, respectively (as per Alstom's
September 2003 presentation).  Details of the covenants contained
in the facilities and the events of default are yet to be
provided by Alstom, notably whether or not the European
Commission's rejection of the subordinated bond's conversion into
shares would comprise an event of default.  Some relief for the
repayment of these facilities should be provided by disposal
proceeds, which are estimated to total EUR2.7 billion by FYE04.
Roughly EUR950 million of the total will be accounted for by the
sale of the Transmission and Distribution business to Areva,
93.4% of which is directly or indirectly owned by the French
state.  This disposal is scheduled to be completed in January
2004, subject to European Commission clearance.

The EUR8.2 billion refinancing package, of which the French
government will contribute EUR4.275 billion, still includes
EUR3.5 billion of performance bonds and guarantees, which will be
underwritten by a syndicate of banks.  The French state will
counter-guarantee 65% of each bond, with the government's total
exposure to these facilities amounting to EUR2.275 billion.
Collectively, these guarantees provide support for the group's
ongoing operations.  The agency notes that the European
Commission has not made any explicit comments or implemented any
restrictions on support through off-balance sheet facilities,
which are crucial to running a business such as Alstom's.

Under the revised package the French government will no longer
participate in the capital increase, which would have resulted in
it owning 31.5% of the group's shares and voting rights.  In
place of this, the government will provide a EUR300 million 20-
year subordinated bond, which can be converted into shares
subject to European Commission approval.  This reflects the
latter's objection to the long-term nature of the government
support in the original package, but there remains the
possibility that the European Commission could reject future
conversion plans.

Fitch believes that the shareholders are likely to support this
revised package, which has been approved by the board, at the
rescheduled EGM on November 18, 2003.  The compromise agreement
between the European Commission's Competition Commission and the
French Finance Ministry demonstrates a commitment to provide a
more stable policy environment for Alstom's restructuring and
potential rehabilitation.

As regards the banks' exposure to the revised package, it now
accounts for EUR2.4 billion of the financing, with French banks
representing around half of this amount, in addition to the
EUR3.5 billion of performance bonds and EUR300 million of short-
term facilities.  This is only slightly higher than the previous
package announced in August 2003.  Moreover, some of this
probably replaces existing exposure.  As stated in Fitch's
previous comments, the French banks most exposed to Alstom are
BNP Paribas, Societe Generale and Credit Agricole/Credit
Lyonnais.  The agency has already taken their exposure into
account in determining their present ratings and still believes
that, while the exposure of these banks to Alstom is substantial
in absolute terms, it does not endanger their solid equity bases
and that if any problems occur they will be largely manageable.


VIVENDI UNIVERSAL: New York Court Holds Payment to Messier
----------------------------------------------------------
At the request of the U.S. Securities and Exchange Commission,
pursuant to Section 1103 of the Sarbanes-Oxley Act, the United
States Federal Court in New York City entered an order
prohibiting [former CEO Jean-Marie] Messier from executing on the
judgment rendered by the New York State Court on September 11,
2003.

This decision, which will stay in place until a further order of
the Federal Court, also prevents Vivendi Universal SA and its
banks from paying any funds to Mr. Messier pursuant to the
September 11, 2003, judgment.  The Court also ordered Vivendi
Universal SA to place the funds that it would otherwise be
required to pay to Mr. Messier into an escrow account opened by
Vivendi Universal SA under the control of the Federal Court in
New York.

In addition, Vivendi Universal SA will continue to pursue its
appeal from the New York State Court judgment that confirms Mr.
Messier's arbitration award.

                      *****

The New York State Court has ordered Vivendi Universal to pay
EUR20.5 million (GBP14.6 million) in severance payment to its
former CEO Jean-Marie Messier.  The decision upheld the ruling
made by the American Arbitration Association in the summer.

Mr. Messier was ousted more than a year ago after leading the
company into near breakdown.  He filed a claim in the U.S. after
a French court suspended the payment when regulators complained
that just one other director signed the contract in July 2002.


VIVENDI UNIVERSAL: Narrows Net Loss to EUR632 MM in First Half
--------------------------------------------------------------
Vivendi Universal's operating income (+20%) and cash flow from
operations (+24 %) showed improved performance

First Half 2003

(a) Operating Income of EUR1,677 million, up 20% on a pro forma
     basis.

(b) Adjusted net income2 almost at break-even, with a loss of
     EUR14 million.

(c) Net loss of EUR632 million versus EUR12,306 million for the
     first half 2002.

(d) Consolidated Cash-flow from operations3 of EUR2.2 billion,
     up 24% on a pro forma basis.

(e) Proportionate Cash-flow from operations4 of EUR1.3 billion,
     up 83% on a pro forma basis.

(f) Net debt5 of EUR13.7 billion (including the EUR4 billion
     acquisition of 26% of Cegetel Groupe on January 23, 2003),
     down 60 % compared to net debt, as of June 30, 2002, of
     approximately EUR35 billion (including Veolia
     Environnement's net debt of EUR16.1 billion, which has been
     equity accounted for since December 31, 2002).

In view of the improved operating performance for the first half
2003 and despite the negative impact of the Euro/Dollar exchange
rate, Vivendi Universal reiterates its full year 2003 operating
guidance:

(a) Very strong growth in operating income;
(b) Significant growth in cash flow from operations;
(c) Very strong growth in proportionate cash flow from
     operations;
(d) Return to profit excluding non-recurring items and goodwill.

Due to the expected closing of the VUE-NBC merger in 2004,
Vivendi Universal's net debt, at the end of 2003, should be
around EUR13 billion.  At the end of 2004, Vivendi Universal's
net debt is expected to be below EUR5 billion.

Comments on the Group's earnings:

Due to substantial perimeter reductions, the straightforward
comparisons of 2003 versus 2002 results, on an actual basis, may
not be meaningful.  This is why the comparisons below are
presented with an illustrative perimeter identical to existing
fully consolidated subsidiaries.

The operating income was EUR1,677 million for the first half of
2003, up 34% compared to the same period last year.  On a pro
forma basis, i.e., as if InterActiveCorp's entertainment assets
had been acquired as of January 1, 2002, the first half operating
income was up 20%, despite a EUR120 million negative impact from
the euro/dollar average exchange rate (at EUR1= US$1.09) on
operating income.  On a constant currency basis, pro forma
operating income growth would have been 29%.

The operating income improvement was achieved mainly through:

(a) The continued progress at Cegetel (operating income up 32%
     compared to last year same period) and Maroc Telecom (up
     39%);

(b) The progress in the turn-around of Canal+ Group which has a
     positive half year operating income of EUR245 million
     (including a reversal of provisions of EUR129 million) to be
     compared with a loss of EUR68 million in the same period
     last year;

(c) The continued and fast reduction in losses in other cash-
     draining activities (Internet and Holding & Corporate);

(d) And despite declines in Vivendi Universal Games and Music.

The adjusted net income in the first half 2003 is almost at break
even, with a loss of EUR14 million.  This compares to a profit of
EUR173 million a year earlier.  Last year's results included a
large gain on the sale of Vinci, BskyB and Saint Gobain shares
(EUR189 million) and a EUR302 million adjusted net income from
Vivendi Universal's stake in Veolia Environment (versus EUR11
million this year before impairment charge).  This year's results
reflect the progress of the operating income and the significant
reduction of equity losses in affiliates in the Internet, foreign
telecom and TV businesses.  It also includes higher financing
expenses and foreign exchange losses related to the decline in
the U.S. dollar.

Net loss of EUR632 million in the first half 2003, versus a net
loss of EUR12.3 billion in the first half 2002.  This includes a
negative impact of EUR190 million resulting from the impairment
of certain assets of Veolia Environment which remains accounted
for by the equity method.  However the net value of Veolia in
Vivendi Universal's consolidated accounts represents as of June
30, 2003, only EUR9 million, whereas the current market value of
these shares is approximately EUR1.5 billion and the strike of
the call options, expiring in December 2004, stands at EUR2.2
billion.  If Vivendi Universal had not consolidated Veolia by the
equity method and had retained it only as a temporary residual
financial investment, the net result would have been improved by
EUR179 million.

Consolidated cash flow from operations of EUR2.2 billion for the
first half was up 24% compared to the same period last year, on a
pro forma basis.  Proportionate cash flow from operations for the
first half is EUR1.3 billion, up 83% when compared to the first
half of 2002, on a pro forma basis.

This strong performance is the result of Vivendi Universal's
focus on cash generation.

Net debt at the end of June 2003 of EUR13.7 billion is to be
compared with net debt of approximately EUR35 billion (including
Veolia Environnement), as of June 30, 2002, and EUR12.3 billion
on December 31, 2002.

The change in net debt since the beginning of the year reflects
the EUR4 billion acquisition of 26% of Cegetel Groupe on January
23, 2003, as well as the impact of closed divestitures totaling
EUR2.8 billion in enterprise value, including the divestitures of
Express-Expansion-Etudiant (EUR200 million), Canal+ Technologies
(EUR191 million), 60 million USA Interactive warrants (EUR600
million), Telepiu (EUR871 million7), Hungary Telecom (EUR325
million), Comareg (EUR135 million), VUE real estate (EUR194
million), Sithe Asia (EUR40 million) and other divestitures
(EUR220 million).

On September 2, 2003, Vivendi Universal has signed an agreement
with General Electric to conduct exclusive negotiations for a
merger of Vivendi Universal Entertainment (VUE) and NBC.  The
merger would create one of the world's most profitable and
fastest-growing media companies.  The proposed transaction would
result in GE, NBC's parent company, owning 80% of the new company
and Vivendi Universal owning 20%.  As part of the transaction,
the shareholders of VUE would receive at closing US$3.8 billion
of cash consideration as well as the benefit of a US$1.6 billion
debt reduction.  Vivendi Universal and General Electric have
committed to work toward a quick resolution of pending matters
before closing, in particular the negotiation of a definitive
agreement, due diligence and regulatory approvals.

Since June 30, 2003, Vivendi Universal also signed agreements in
principle for the sale of Canal+ Nordic (EUR54 million), VUE real
estate (EUR40 million) and other divestitures (EUR80 million).
Year to date, and excluding the proposed merger between VUE and
NBC, Vivendi Universal has signed divestiture transactions worth
a total of EUR3 billion in enterprise value.

In addition, since March 31, 2003, Vivendi Universal has
successfully restructured its debt and lengthened its average
maturity by:

(a) completing the placement of EUR1.2 billion high yield notes
     in April;

(b) implementing a three-year EUR2.5 billion bank facility in
     May;

(c) making a private placement of high yield notes of EUR1.35
     billion in July, which have been used to repay the loan
     contracted by Societe d'Investissement pour la Telephonie
     (SIT) to buy 26% of Cegetel from BT, allowing the group to
     fully strengthen its access to the related dividends from
     Cegetel Groupe;

(d) amending the terms of its EUR527.4 million - 1.00% Bonds due
     March 1, 2006 exchangeable for ordinary shares of Vinci,
     improving Vivendi Universal's financing capacity by more
     than EUR572 million.

Lastly, Vivendi Universal Entertainment LLLP (VUE) has put in
place a new $920 million 5-year term loan in June to refinance
the outstanding portion (after the $750 million successful film
securitization transaction by VUE, on March 31, 2003) of the
$1.62 billion bridge loan contracted in 2002.

Vivendi Universal has also managed to cancel two significant
contingent liabilities that could have had a substantial impact
on the group's liquidity:

The disposal in cash in April of the junior preferred shares in
AOL Europe to AOL Time Warner allowed to put an end to a $812
million Total Return Swap and therefore to eliminate the
corresponding risk.

The disposal in August of a stake in the Spanish telecom operator
Xfera allowed to cancel some bank guarantees amounting to EUR840
million that were weighing on Vivendi Universal.

Vivendi Universal S.A.'s liquidity at June 30, 2003 was EUR3.9
billion, including EUR1.7 billion net cash cumulated and EUR2.2
billion undrawn credit facilities.

Vivendi Universal's liquidity is expected to be at around EUR3.3
billion by year-end, after repayment of BskyB exchangeable bonds
of EUR1.5 billion in July, 2003.

Comments on operating income for Vivendi Universal's Media and
Telecom businesses:

Telecom activity (as fully consolidated at 100%)

Represents 8 35% of Vivendi Universal's revenues for the first
half of 2003.  It has generated operating income of EUR1.3
billion and EUR1.5 billion of cash flow from operations.

SFR- Cegetel (approximately 56% Vivendi Universal economic
interest):

In millions of euros     H1 2003    H1 2002    % variation
                          Actual     Actual

Revenue                   3,612      3,442         +5%
Operating Income            984        747        +32%

SFR-Cegetel's operating income grew 32% to EUR984 million, due to
efficient cost management, including reducing customer costs.

Mobile telephony revenues increased 7% to EUR3.2 billion and
operating income grew 24% to EUR988 million.

SFR was successful in increasing profitability through efficient
cost management, with a 9% decrease in acquisition costs per
gross addition (excluding promotions) and a strong reduction of
bad debts compared to the same period of last year.

Fixed telephony operating losses were reduced by 92% to EUR4
million despite an 8% decline in revenues due to the unfavorable
impact of year end 2002 voice price decreases and an unfavorable
traffic mix.

Maroc Telecom (35% Vivendi Universal economic interest):

In millions    H1 2003   H1 2002  % variation   % variation
  of euros       Acutal    Actual                 at constant
                                                   currency

Revenue          714        716         0%          +5%
Operating Income 283        204       +39%         +46%

Maroc Telecom operating income experienced a strong 39% growth to
EUR283 million, due to an efficient control of costs.

Operating Income is up 39% and up 46% at constant exchange rates
compared to the same period last.

This good performance has been driven mainly by a continuing
growth in the mobile activity, a decrease in interconnection and
handsets costs, with continuing reduction in overhead costs.

Media activity (as fully consolidated at 100%)

Represents 8 55% of Vivendi Universal's revenues for the first
half 2003.  It is, for the moment, marginally profitable overall.
Vivendi Universal's management is working on its turn around: its
cash flow performance has already improved significantly, due to
the strong performance of VUE and the significant improvement of
Canal+.

Universal Music Group (92% Vivendi Universal economic interest):

In millions    H1 2003   H1 2002  % variation   % variation
  of euros       Acutal    Actual                 at constant
                                                   currency

Revenue         2,168     2,873       -25%         -15%
Operating Income (42)       169        NA           NA

UMG reported an operating loss on decline in revenue

The global music market continued to show weakness in the first
half.  UMG reported an operating loss of EUR42 million in the
first half of 2003, reflecting the margin lost on the revenue
decline and restructuring costs and other income from the sale of
assets in 2002 not repeated in 2003.  The full impact was partly
offset by reductions in marketing spend and catalogue
amortization expenses.  2002 also had a stronger release schedule
in its first half as compared to the same period in 2003.

For the first half of this year, best sellers included the first
release of 50 Cent (it has now shipped over 8 million copies) and
strong carryover sales from 2002 by t.AT.u.  and Eminem.  The 8
mile OST featuring Eminem and Eminem's "The Eminem Show" sold an
additional 5 million copies in the period.  Other major releases
scheduled for the second half of 2003 include albums from Bon
Jovi, Sheryl Crow, Enrique Iglesias, Ronan Keating, Limp Bizkit,
No Doubt, Luciano Pavarotti, Sting, Texas, Busted, and Safri Duo.

Furthermore, UMG will launch in the fourth quarter an aggressive
plan to reduce the cost consumers pay for CDs by significantly
reducing its wholesale prices on virtually all top line CDs in
the U.S., with the aim of bringing music fans back into retail
stores and driving music sales.  While the company believes this
sort of fundamental pricing change is necessary for the long term
health of the industry, there may be negative implications on
near term results.

Vivendi Universal Entertainment (86% Vivendi Universal economic
interest):

In millions    H1 2003   H1 2002  % variation   % variation
  of euros       Acutal    Actual                 at constant
In French                                         currency
  G.A.A.P.

Revenue         2,962      3,151      - 6%          +16%
Operating Income  495        529      - 6%          +15%

In millions of dollars      H1 2003   H1 2002    % variation
In U.S.  G.A.A.P.             Actual   Pro Forma9

Revenue                      3,124     3,286         - 5%
Operating Income               537       366         +47%

On a comparable basis (stand alone, pro forma, in dollars and in
U.S. GA.A.P.), VUE's operating income increased 47%.

For the first half of 2003, the operating income for VUE
decreased by 6% in euros and in French G.A.A.P., but increased
47% versus last year on a stand alone, U.S. G.A.A.P., pro forma9,
U.S. dollars comparable basis.  The main difference stems from
the weakening of the U.S. dollar.  For the second quarter 2003,
operating income increased 60% versus last year on a comparable
basis.

Universal Pictures Group's operating income increased by 60% in
the first half, on a comparable basis.

This was driven primarily by the video successes of Bourne
Identity and 8 Mile and the box office performance of Bruce
Almighty and 2 Fast 2 Furious.

Universal Television Group's operating income decreased by 7% in
the first half.  This was driven by higher programming costs at
Universal Television Networks due to increased investment in
original programming, which will drive an increase in future
advertising, as well as licensing fees at Universal Television
Production (Just Shoot Me went into off-network syndication in
2002 and there is no comparable sale in 2003)

Universal Parks & Resorts' performance declined in the first half
due to lower attendance at Universal Studios Hollywood and
Universal Studios Japan as a result of continued security
concerns and softness in the travel industry.

VUE's corporate costs were lower due to the restructuring charges
in prior year as a result of the acquisition of USA Networks.

Canal+ Group (100% Vivendi Universal economic interest):

In millions    H1 2003   H1 2002  % variation   % variation
  of euros       Actual    Actual                 at constant
                                                   currency

Revenue         2,215     2,344       -6%           -3%
Operating Income  245      (68)        NA            NA

Significant improvement in Canal+ Group's operating income in the
first half.  Positive operating income confirmed for the full
year 2003.

Canal+ Group's improved operating results reflect the strategic
recovery plan implemented by the new management team.  Operating
income for the first half of 2003 totaled EUR245 million
(including a reversal of provisions of EUR129 million), compared
with a pro forma operating loss of EUR52 million in 2002.

The pay television business in France was the main source of
operating income (up 79% from first-half 2002), thanks primarily
to Canal+ (49% Vivendi Universal economic interest),
Canalsatellite (66% Vivendi Universal economic interest) and
Media Overseas.  Theme channel publishing also showed significant
growth following restructuring at Multithematiques (64% Vivendi
Universal economic interest).

Operating income from the cinema business (StudioCanal) rose 50%,
lifted by the catalog's growing profitability and a general cost-
reduction plan.

Aside from Telepiu, non-recurring items included new provisions
and provision recoveries that offset each other.  In light of
seasonal variations in program and marketing costs, full-year
operating income will be lower than the half-year result.  The
figure will, however, be positive for the first time since 1996
and noticeably higher than expected.

At June 30, 2003, Canal+ Group in France (Canal+, Canalsatellite,
Numericable and Media Overseas) had 7.9 million individual and
collective subscriptions in metropolitan and overseas France.

Vivendi Universal Games (99% Vivendi Universal economic
interest):

In millions    H1 2003   H1 2002  % variation   % variation
  of euros       Actual    Actual                 at constant
                                                   currency

Revenue          240        336        -29%        -17%
Operating Income (52)        39         NA          NA

Vivendi Universal Games performance suffered a decline.

Through the first half of the year, VUG posted an operating
income loss of -EUR52 million.  The prior year operating income
was EUR39 million, fueled by the strong second quarter results.
Significantly higher returns/price protection in the first half
of 2003, primarily in North America and to a lesser extent in
Europe, drove the year-over-year profit decline.  The increase in
less profitable console titles versus PC titles contributed to
the profit variance with a partial offset from lower operating
expenses.

Other profit and loss highlights

Financing and other expense net amounted to - EUR666 million, to
be compared with a loss of EUR4,230 million for the same period
last year.

(a) Last year's number resulted mainly from losses related to
     the put options on treasury shares (-EUR585 million),
     provisions accruals related to certain international
     telecoms operations (mainly Elektrim Telekomunikacja: -
     EUR622 million and Hungary Telecom: -EUR385 million),
     Echostar (-EUR598 million), Sithe Energies (-EUR284
     million), the potential market risk on AOL Time Warner
     shares in connection with the LineInvest total return swap
     (-EUR270 million), premium on Vivendi Universal call options
     granted to BNP (-EUR226 million), DuPont (-EUR173 million),
     the contingent purchase price of Rondor Music (-EUR127
     million) and Softbank Capital Partners investment (-EUR120
     million).

(b) This year's number includes: EUR377 million in financing
     expenses, declining 44% when compared to the same period in
     2002, and representing an average cost of the debt of
     approximately 4.5%; EUR289 million of other financial
     expenses, net of provisions, including a gain on the sale of
     InterActiveCorp warrants (EUR125 million), foreign exchange
     losses (-EUR145 million), the positive impact of the
     termination of the LineInvest total return swap related to
     the sale of AOL Europe shares (EUR97 million), a provision
     on interest rate swaps (-EUR82 million), the amortization of
     deferred charges on bond issuances, facilities and others (-
     EUR107 million).

Exceptional items amounted to a profit of EUR337 million, i.e.,
mainly reversal of provisions on Telepiu (EUR213 million),
capital gains on the consumer press division (EUR104 million),
Comareg (EUR43 million) and the sale of international telecom
assets (EUR36 million).

Last year, in the first half of 2002, net exceptional income
totaled EUR2.1 billion, reflecting the gains on the BSkyB sale
(EUR1.6 billion), on the Veolia Environnement transactions
(EUR630 million) and on the disposal of Canal Digital (EUR144
million), partially offset by the loss on the disposal of VUP's
business-to-business and Health activities (EUR253 million)

Income taxes amounted to EUR633 million, an increase of 73% over
the prior year.  In the first half of 2002, the tax expense was
partially offset by deferred tax income related to the French
fiscal group tax losses generated by the financial provision
accruals.  In 2003, for reasons of prudence, the additional tax
loss within the French tax group was not made use of as deferred
tax because of the difficulties of certainty.  Excluding holding
companies and before financial provisions, exceptional items,
goodwill amortization, equity losses and minority interest,
Vivendi Universal's effective tax rate in the first half of 2003
was 38% compared to 43% for the same period in 2002.

Goodwill impairment amounted to EUR122 million related to Canal +
Group's subsidiaries: Canal+ Nordic and Canal+ Benelux.

As at June 30, 2002, management recorded an impairment charge of
approximately EUR11 billion.

To View Financials:
http://bankrupt.com/misc/Vivendi_Universal_Financials.pdf

CONTACT:  INVESTOR RELATIONS
           Paris
           Daniel Scolan
           Phone: +33 (0) 171 71 32 91

           Laurence Daniel
           Phone: +33 (0) 171 71 12 33

           New York
           Eileen McLaughlin
           Phone: +(1) 212 572 8961



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


ALLIANZ AG: Allianz Life's Sale of Business Won't Affect Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that Allianz Life
Insurance Co. of North America's (Allianz Life) (AA-/Negative/--)
announcement that it has entered into a definitive agreement with
Reinsurance Group of America Inc. (NYSE:RGA) to sell -- through
coinsurance -- its traditional U.S. life reinsurance business for
a ceding commission of US$310 million will have no affect on the
ratings.

Standard & Poor's believes this announced divestiture is
consistent with Allianz Life and its parent, Allianz AG's,
strategy to continue to leverage its strong position in the U.S.
retail annuity market.  Though reducing earnings diversification,
this transaction is expected to assist Allianz Life in its
continued growth objective within the retail annuity segment.

The ratings on Allianz Life reflect its core position within
Allianz AG, strong business position in the retail annuity
market, and strong capitalization and very strong liquidity.
Partially offsetting these strengths are the challenges
associated with improving its overall earnings performance given
the impact of spread compression.


FARMATIC BIOTECH: Moves to General Standard to Save Costs
---------------------------------------------------------
Farmatic Biotech Energy AG has applied at the Frankfurt Stock
Exchange for moving from the Prime Standard (segment of the
Regulated Market with extended follow-up obligations) to the
General Standard.  This is part of the consequent realization of
cost-reducing measures in the course of the company's current
restructuring.  Apart from this change Farmatic will continue to
realize a high degree of transparency in communicating with
shareholders and media and will hold to the fulfillment of the
Corporate Governance Codex.

"We give highest priority to the trust of our shareholders and
institutional investors, especially with regard to the present
situation", Ulrich Wogart, CFO, explains. Farmatic does not rule
out a move to the Prime Standard at a later date and will
actually seek this, after restructuring has been accomplished
successfully.

                      *****

The Executive Board of Farmatic Biotech Energy AG in May said it
believes at least one half of the firm's current equity capital
has been eroded by losses from revaluation of loans granted on
the one hand to an investment company and on the other to a
(biogas) plant operating company.

CONTACT:  FARMATIC BIOTECH ENERGY AG
           Ms. Vibeke Krey
           Corporate Communication
           Kolberger Strasse 13
           D-24589 Nortorf
           Germany
           Phone: +49 (4392) 9177-200
           Fax: +49 (4392) 9177-197
           E-mail: krey@farmatic.com


GRUNDIG AG: Creditors Give Go-ahead for Sales Process
------------------------------------------------------
After the creditors' meeting on the 23rd of September 2003, the
insolvency administrator Dr Siegfried Beck stated: "The general
position of Grundig AG i. Ins. has stabilized.  We are on target
in terms of all aspects of our plan, in some cases results have
exceeded the targets."

After the success in ensuring that the company business could be
maintained in the first phase of the insolvency proceedings, the
insolvency administrator now also regards the second phase of re-
orientating the company as having been concluded.  According to
Dr. Siegfried Beck, the company is now at the end of the third
phase, which involves negotiations with investors.

The report covering the current status of the company, the
response from specialist dealers as a result of Grundig's
presence at the World Consumer Electronics Exhibition and the
status of negotiations with investors was acknowledged with
approval by the creditors' committee.  The extremely positive and
broad support from specialist dealers at the World Consumer
Electronics Exhibition was especially emphasized.  Part of the
reason for this was the presentation of an attractive range of
products with which Grundig will tackle the important Christmas
market.

Dr. Siegfried Beck commented on the status of investor
negotiations: "It remains the case, that no overall investor will
come on board.  The Grundig businesses HIS (Home
IntermediaSystems), GCIS (Grundig Car InterMedia System), GBS
(Grundig Business Systems) and SAT Systems will all be handed
over to different investors.  Whereas we have made significant
progress with GCIS and have already signed an exclusivity
agreement one potential investor, we still have various offers
for the other areas to consider.  We will now continue the
process of concrete contract negotiations."  Dr. Beck was not
able to disclose details of the negotiations for GCIS as the
interested parties have agreed to remain silent on the issue.

The insolvency administrator emphasized that there was no time
pressure for the negotiations to be concluded.  This will not
change as long as the budget figures continue their positive
trend.



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


RABA RT: Establishes Joint Venture With Chinese Partners
--------------------------------------------------------
Raba Rt, the vehicle and vehicle parts manufacturer that posted
losses of HUF2.5 billion on HUF39.4 billion in revenues last
year, has signed a letter of intent with Chinese partners to set
up a joint company.

The Budapest Business Journal, citing Raba's investor relations
officer, Attila Deak, said the company is conducting talks on
setting up several joint companies in China and the first
contract will be signed within six months.

The plan is for Raba to eventually hold majority stakes in the
companies, targeting partners that conform to its own size,
product line and technology specialized in making bus and lorry
axles.  Raba would deliver the most technologically demanding
parts of the axles and axle-units.

Raba is one of Hungary's largest automotive manufacturers,
producing axles, automotive components, commercial vehicles and
engines.  It is one of the largest independent manufacturers of
axles in the world.

Suffering from declining export revenues, it previously signed a
HUF4.2 billion contract to supply all-terrain trucks to Hungary's
defense forces.  However, analysts indicated that the deal may
not be enough to offset the crisis the firm is currently
experiencing.



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


KONINKLIJKE AHOLD: Completes Sale of Operation in Paraguay
----------------------------------------------------------
Ahold Wednesday announced it has successfully completed the sale
of its 100% interest in Supermercados Stock SA to A.J. Vierci.

This transaction is limited to Ahold's supermarket activities in
Paraguay.  A.J. Vierci is owner and managing director of Grupo
A.J. Vierci.  Grupo A.J. Vierci currently operates media,
industry and trade businesses in Paraguay.

The divestment of Supermercados Stock SA is part of Ahold's
strategic plan to restructure its portfolio, to divest
consistently underperforming assets, and to concentrate on its
mature and most stable markets.

Supermercados Stock SA operated 10 supermarkets at year-end 2002
and has been part of Ahold's portfolio since 1998.  At year-end
2002, the company was a subsidiary of Santa Isabel SA in Chile
and employs approximately 800 employees.

CONTACT:  KONINKLIJKE AHOLD
           Corporate Communications
           Phone: +31.75.659.57.20



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


KREDYT BANK: To Reorganize Branches, Implement Return Leasing
-------------------------------------------------------------
Kredyt Bank S.A, the Polish subsidiary of KBC Bank NV that is
undergoing financial restructuring, has announced plans to
reorganize its nationwide network of branches with a view of
introducing the element of return leasing.

The Warsaw Business Journal reports that the strategy is based on
the idea of selling premises to an agent and simultaneously
leasing it back, allowing the bank to free capital which was
frozen in property and lower its level of tax liabilities.

Supervisory Board Member Bohdan Mierzwinski gave an assurance
that the strategy will not lead to a fall in the number of its
outlets.

BRE Bank conducted a similar operation a while back, as part of
efforts to put the bank back on the profitability track after
registering net losses in the first half of 2002 as a result of
declining revenues, significant write-downs of equity stakes,
increased provisions against irregular loans and losses reported
by subsidiaries.

Analysts gave a positive response to the planned reorganization,
saying the introduction of return leasing will lead to an
improvement in the financial results of Kredyt Bank in a
relatively short period of time, according to the report.

TCR-Europe recently reported that the board of directors of
Kredyt Bank decided to propose a PLN665,564,256 capital increase
as part of a restructuring plan intended to address losses in the
past financial year.  The scheme is aimed at improving Kredyt
Bank's capital ratios and protecting its strong position.


INSTAL PLOCK: Seeks Investors To Save Company From Going Under
--------------------------------------------------------------
A Polish company specializing in constructing installations for
the petrochemical industry is looking for an investor that would
help it secure its future, the Warsaw Business Journal reported.

Executive Director Bohdan Pociej confirmed that 52.6% of Instal
Plock's controlling stake has been put up for sale and if efforts
to find a buyer fail, the company "will probably have to declare
bankruptcy."

Mr. Jacek Zaglewski, the present owner of the controlling stake
further explained: "All our investments have been suspended and
the company is going downhill.  In the beginning of this year,
the court accepted a debt restructuring program, but in order to
function properly we need extra financing."

He added that negotiations are in progress with several potential
sector investors.

Instal Plock has been recording losses since 1999, but at the
same time posting annual revenues of several million zloty, the
report said.  The remaining shares of the company belong to the
State Treasury.



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


EUROPEAN CITY GUIDE: Shut Down, Fined for Advertising Fraud
-----------------------------------------------------------
A Spanish company that misled U.K. businesses into paying for
adverts in its directory has been shut down and fined by a
Catalan court.

The court ruled that European City Guide, based in Barcelona, was
to be temporarily shut down for one year and fined EUR300,000
(over GBP200,000) for its deceitful advertising.  Over the last
four years the Catalan authorities have received more than 3,500
complaints from companies and professionals in 40 European
countries about European City Guide.

The penalties come after European City Guide sent mailshots to
mostly British and French companies.  The mailings gave the
impression that the directory entries were free.  However, the
small print meant that the businesses which signed and returned
an enclosed form - even if simply correcting or adding to the
details provided - were committed to paying up to GBP1,455 for
three entries and a copy of the European City Guide directory.
The OFT received complaints from over 280 British businesses
which claimed they had been misled by the company's mailshots.

European City Guide was originally found to have infringed
Catalan laws on misleading advertising in March 2001.  This
followed cooperation between the Catalan authorities and the OFT.
The present sanctions come after European City Guide's appeal
against an earlier ruling by the Spanish court was rejected.

John Vickers, OFT Chairman, said: "This case shows how
international cooperation can help protect British business
against deceptive practices.  We urge businesses to be alert
against practices of this sort."

                      *****

The Control of Misleading Advertisements Regulations 1988, which
implemented an EC Directive, seek to protect consumers and
traders from the effects of misleading advertising.  Under these
Regulations, the OFT can seek a court injunction to put a stop to
advertisements which are against the public interest.  However,
effectively using these powers against businesses that are based
abroad but are advertising in the U.K. is difficult.  Therefore,
in this instance, the OFT sought the co-operation of the Catalan
authorities.

The original ruling by the Catalan authorities was made on March
28, 2001 (see PN 13/01).  European City Guide appealed and this
was dismissed in June 2002 (see PN 37/02).



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


SWISS INTERNATIONAL: Joins Oneworld to Enhance Prospect
-------------------------------------------------------
SWISS has accepted an invitation from the oneworld alliance to
become a member of this global grouping of leading air carriers.
SWISS's customers will benefit from this development in the form
of a substantially-expanded range of services.  SWISS's
passengers will also enjoy the benefits of the frequent flyer
programs of all the oneworld partners and of better connections
and easier transfer service.  In a parallel move, SWISS and
British Airways signed a memorandum of understanding, which will
lead the two airlines into a strategic alliance.  Its membership
of oneworld and its agreement with British Airways significantly
enhance SWISS's business prospects and perspectives.  The
oneworld members also aim to make greater use of Zurich Airport
as a hub for the Central European market.

After intensive negotiations, SWISS has achieved one of its most
important strategic objectives: membership of a leading global
airline alliance.  SWISS becomes the ninth member of the oneworld
partnership, joining reputed carriers American Airlines, British
Airways, Qantas, Cathay Pacific, Iberia, LanChile, Finnair and
Aer Lingus.  SWISS's customers will benefit from new connections
and more frequencies: oneworld operates over 8 600 flights a day
to more than 570 destinations in 136 countries.  SWISS customers
can earn and redeem frequent flyer miles on all oneworld
services.  They will also enjoy access to the 380 airport lounges
on all six continents provided by oneworld's members.

A new oneworld member

As a fully-fledged member of oneworld, SWISS can substantially
enhance its existing collaborations with the various other
members and expand these throughout the alliance.  In extending
their invitation to join the alliance, the current oneworld
members have also confirmed their confidence in SWISS and its new
business plan.  SWISS expects its membership of oneworld to
produce a direct commercial benefit of some CHF100 million a
year.  The existing oneworld members have jointly generated
additional revenues of more than US$2 billion over the past three
years through their membership of the alliance.

SWISS's oneworld membership will benefit Zurich Airport: the
airport is set to become a new hub in the global alliance's
network.  The oneworld members intend to direct more of their
services via Zurich, to make full use of the airport's available
capacity and high comfort levels.

Alliance with British Airways

SWISS and British Airways have also concluded a memorandum of
understanding, which will lead to a fully-fledged strategic
alliance between the two partners.  The memorandum outlines the
content of a series of commercial agreements, including an
Alliance Agreement, which the carriers will formally sign by
October 24.

The Swiss TravelClub, SWISS's current frequent flyer program,
will be gradually integrated into British Airways' Executive
Club.  Miles already earned with SWISS will retain their current
validity.

The parties will also establish joint-venture flight operations
between Switzerland and the U.K. that will include extensive
code-sharing.  British Airways will obtain the right to enter
into slot-exchange agreements in respect of eight of the 14 daily
slot pairs, which SWISS currently holds at London's Heathrow
Airport.

SWISS to continue on its chosen business course

The membership of oneworld and the alliance with British Airways
will enhance SWISS's business prospects and perspectives in a
number of key respects.  This in turn will put the current SWISS
business plan on an even firmer foundation.

While oneworld membership marks a key strategic milestone for the
company, SWISS will continue its current program towards sounder
business health.  These efforts will focus in particular on
bringing cost down to (and maintaining them at) highly
competitive levels.

SWISS has already successfully introduced a number of cost-
cutting measures over the past few months.  The implementation of
the new business plan is well on track:

Some 80 per cent of the company's "Foundation for Winning"
restructuring program has already been put into effect.  SWISS
expects the program to generate total bottom-line improvements of
CHF1.6 billion a year.

The SWISS network and fleet have been resized, with capacity
lowered by 35% and fleet size reduced from 137 to 79 aircraft.
The associated workforce downsizing will be completed by the end
of the year.

Negations with supplier brought cost reductions over target.

The proportion of overhead has been sizably reduced.

The new "SWISS in Europe" product launched at the end of August
has got off to a strong start.  The concept of permanently low
fares to all European destinations, improved online booking
facilities and an enhanced inflight service (for a fee) in
Economy Class has been very well received, and bookings were up
50 per cent in the product's first month.

SWISS will continue to maintain its successful premium product on
its long-haul services, which will in future be performed by a
fleet of nine Airbus A340 and nine Airbus A330 aircraft.

Provision of adequate liquidity reserves

SWISS has been conducting intensive and constructive discussions
with the major banks and a number of its main shareholders
(including the Swiss Confederation) over the last few days.
These discussions have centered on SWISS's desire to secure
sufficient liquidity reserves to cushion the company against the
impact of any unforeseen events.

In the course of these consultations, UBS and Credit Suisse have
had the opportunity to examine the business plan presented by
SWISS and the collateral, which the company would be able to
offer.  On the strength of their current findings, both banks see
possibilities of financing part of the liquidity reserves desired
on terms, which are customary for such activities within the
banking sector.  They would be prepared, subject to certain
conditions, to jointly assume a certain amount thereof against
securities.  SWISS is also in discussion with further possible
sources of the credit facilities it requires, including certain
major shareholders.  In addition to this, British Airways, its
new alliance partner, has agreed to provide a guarantee for CHF50
million, secured against slots at London Heathrow.  The Swiss
Confederation is also considering possible means of enhancing
certain framework conditions.

SWISS is confident of bringing its current negotiations with
possible financing partners and the Swiss Confederation to a
successful conclusion.  And this, together with the contribution
to its bottom-line results, which is expected to derive from its
membership of the oneworld alliance, should ensure that the
company can retain adequate liquidity reserves in the longer
term.

BA AND SWISS AGREE COMMERCIAL PACT

British Airways and Swiss International Air Lines (SWISS) have
signed a legally binding Memorandum of Understanding (MOU)
setting out the principal terms under which the two airlines
envisage entering into a commercial agreement.

British Airways and SWISS plan joint operations between the UK
and Switzerland with codesharing on Heathrow Swiss routes from
October 26th that will give customers convenient access to
worldwide destinations via London and Zurich.

The Swiss TravelClub, SWISS's current frequent flyer program,
will be gradually integrated into British Airways' Executive
Club.  Miles already earned with SWISS will retain their current
validity.

In addition, BA will enter into a slot exchange agreement for
eight Heathrow daily slot pairs from SWISS.

British Airways will support a CHF50 million credit facility for
SWISS, to be secured against slots at London Heathrow.

SWISS will also enter the oneworld alliance, of which British
Airways is a founder member.  This will provide the grouping with
an additional high-quality carrier and an important additional
hub in central Europe, serving one of the world's most important
financial centers and providing customers with greater choice of
destination, airline and global alliance.

Rod Eddington, Chief Executive of British Airways said: "I am
delighted to welcome SWISS into the oneworld alliance.  This
commercial deal will benefit British Airways and the new SWISS
which has a quality product, network and hub in Zurich which
makes it a logical fit to oneworld in Central Europe."

Andre Dose, Chief Executive Officer of SWISS said: "We are proud
to be a member of oneworld, one of the world's leading airline
alliance.  SWISS as well as oneworld clients will benefit from
the enhanced network and the joint frequent flyer programs."

CONTACT:  SWISS
           Corporate Communications
           P.O. Box, CH-4002 Basel
           Phone:  +41 848 773 773
           Fax:  +41 61 582 3554
           E-mail: communications@swiss.com
           Homepage: http://www.swiss.com

           BRITISH AIRWAYS
           Press office
           Phone:  +44 20 8738 5100

           ONEWORLD MANAGEMENT COMPANY LTD.
           PO Box 365
           Harmondsworth UB7 0GB UK
           Phone:  +44 20 8738 5173
           E-mail: mblunt@oneworldmgmt.com
           Homepage: http://www.oneworld.com



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


ABBEY NATIONAL: Simplifies Business to Turn Banking on its Head
---------------------------------------------------------------
Abbey is taking the first steps to simplify its range of accounts
and services, starting with savings, mortgages and current
accounts.  Investment advice is also being aligned with Abbey's
commitment to provide advice for all its customers.  This is a
part of Abbey's aim to 'turn banking on its head' - a radical
and fundamental transformation of how it thinks about customers,
talks with them and serves them.

Abbey says banks make accounts and services too confusing and
complicated, and it is doing something about it -- by simplifying
what it offers, it aims to help people get on top of their money
without getting in the way.

Similar accounts grouped together
As a start, Abbey is reducing the number of accounts on sale and
also making it easier for customers to choose the right sort of
account for them by putting them into groups.  For example,
savings accounts are now in three groups - Easy Reach, Put Aside
and Lock Away.  Once a customer has decided how easily they want
to be able to get hold of their money, they can choose from a
range of different accounts within that group.  Abbey likens it
to buying a car -- where customers choose the model they want,
then pick the color, accessories and extras according to their
taste and budget.  In some cases, such as mortgages, Abbey can
add or take away options one by one, according to what the
customer wants.

As well as making it easier for customers to choose the right
type of account, the new groups make it easier for Abbey people
to guide customers towards the right specific account within the
group.  The groups also gives Abbey the opportunity to start
reducing the inconsistencies between similar accounts, and
simplifying the groups even further by only keeping the best
accounts within each group.

Luqman Arnold, Chief Executive of Abbey, said: "We're not the
only bank to recognize the need to make our offers easier to
understand - but we are fully committed to applying this to
everything we do - our services, our tone of voice and our
behavior."

No more jargon
Abbey has promised to get rid of complex jargon and tell
customers about changes in a direct and engaging way.  It has
already begun to rewrite its range of letters, with all its
letters to current account customers now complete and the rewrite
of mortgage letters underway.  Each letter is written in a simple
style with a friendly tone of voice and is free from financial
jargon.  By the end of the year, all customer letters will have
been rewritten.  Abbey says customers will then no longer have to
grapple with baffling bank language or put up with the brusque
style of many bank letters.

As a result of these changes, Abbey says it will be increasingly
able to offer customers what they really want, give them better
help and advice at every level and get rid of confusion.

Banking
Abbey is replacing six different current accounts with just one
- The Account - which will be flexible enough to grow with an
individual customer throughout their life, starting at age 11.
Once they're 16, the Account offers everything a customer would
expect: checkbook, card, monthly statements, direct debits and
standing orders.

Customers can use The Account by telephone, internet, in branches
or at cash machines.  They can also choose a higher rate of
interest on their money (2.50% gross p.a./2.53% AER), or a lower
rate on what they owe (8.7% APR), if they put at least GBP1,000
into their account each month.  Customers under 18 and students
in full-time education do not have to put in a set amount each
month to receive the 2.50%.  Students are offered interest-free
borrowing, or alternatively, they can choose to have 2.50% paid
on the money in their account instead.

Abbey will also offer a Basic Account if customers have much
simpler needs or don't require an overdraft.  The Business
Account will also remain for small business customers.

Mortgages
Customers value the choice of mortgages Abbey offers and have
told the bank they want them to be presented in a simpler way.
This will be done by splitting the core range into three basic
types, which reflect what customers are really looking for  Easy
Start, Sure and Freedom.  This will ensure that advice is based
on what's right for the customer, not simply the rate.

Easy Start mortgages will suit people who want the reassurance of
reduced payments in the early years of their mortgage.  The range
will include tracker variable rate mortgages and cashback
mortgages.

Sure mortgages will appeal to people who want the peace of mind
of paying the same amount for their mortgage each month.  The
range will therefore include fixed rates and capped rates.
Freedom mortgages will allow people to keep their options open,
including the opportunity for them to vary monthly payments,
repay the loan early without any extra cost, take a payment
holiday, or use some of their savings to shorten the life of the
mortgage.

Savings
Reflecting the different ways customers tell Abbey they want to
save, accounts will be presented in one of three categories: Easy
Reach, Put Aside and Lock Away.

Easy Reach accounts are designed for anyone who wants fast access
to their cash.  All Instant Access accounts such as Flexible
Saver, Direct Saver, Postal Account, eSaver and Instant Saver
will be in this category.  However, plans are being drawn up to
withdraw Instant Saver from sale in the new year.

Put Aside accounts are for customers who want help to put away
regular amounts, earn more interest, or make their money harder
to raid.  Monthly Saver, Branch Saver, Investor 60, First Home
Saver and Cash mini ISA will be in this category.

Lock Away accounts are for people who want to lock a chunk of
money away for a longer fixed time and in return get more
interest.  Customers can choose from a range of bonds including
Choices Bond, Retirement Income Bond, Children's Savings Bond,
eBond and Stepped Bond, all of which require customers to leave a
set amount of money untouched for a year or more.

All accounts within the Easy Reach and Put Aside categories will
now have GBP1 opening balances, and the number of savings
accounts will also be reduced starting with the removal of
Regular Saver from sale as of Wednesday.  Customers will be
transferred to Monthly Saver, which offers them a better rate of
interest and more ways of getting at their money.

Over time, Abbey expects to simplify further the range of
accounts in each group.

Investments
Advice on investments is also being changed so customers can
select one of three levels of service they need.  Abbey doesn't
expect customers to know the ins and outs of ISAs and Unit
Trusts, which is why it is introducing an expert advice service
to help see them through the jargon and choose what they need.

The Comprehensive advice service is for anyone who needs thorough
investment help. It will involve a full financial health check
that will help the customers decide the appropriate trade-off
between risk and reward, given their personal circumstances,
before helping them to design a portfolio that's right for them.
Self-service will give people everything they need to build their
own portfolio, using Abbey's sharedealing service over the phone
or its online FundsCentre to buy the shares and funds they want.
The Walk-in service, currently being piloted (and subject to FSA
approval), will give customers access to quick basic help on
simple savings and investments, without an appointment.

Abbey has introduced many changes to roles in branches and
telephone centers to provide this improved service, and is adding
450 extra staff to branches and 150 to telephone centers.  Over
the next few months, this will be complemented by the re-launch
of Abbey's investment range, including a new portfolio of
structured investments and a Multi Manager investment service.

Multi Manager gives customers a choice of five different
portfolios, ranging from very low risk to more aggressive.
Investment management of these funds will be placed with third
party managers, hand-picked by Abbey.  The result will be a
quality of service normally only available at private banks, but
at a much lower cost.

Abbey is also launching an internet-based Wrap service for
independent financial advisers.  This will provide a single up-
to-date view of a customer's investment portfolio, which is often
scattered across a range of companies, and includes investments
such as shares, bonds, unit trusts and pensions.  Wrap brings
them all together on one web page, which provides advisers with a
complete view of their clients' investments and value.  As Wrap
is online, the valuation of the investments is always up to date,
and they can be bought and sold online.

Abbey says its employees are essential to making the new business
work.  The company is improving how it recruits, trains and
retains its employees and is committed to providing customer-
facing employees with an extra 60,000 training days in the second
half of the year.  It stresses that the change has to work from
the inside out - success is assured when employees believe in
the process and what the bank is trying to achieve.

Angus Porter, Abbey's Customer Director, said: "The banking
industry has taken advantage of its customers for too long.  We
are refocusing our entire business to concentrate on the things
that really matter to our customers, so that we can improve the
way they relate to their money, without getting in the way.

"This is the start of a new era, but it won't be instant - there
is a lot more to follow.  Today is the first step on a long road
to becoming the new Abbey.  In the next weeks and months we will
be simplifying even more of our accounts and services, getting
more of the basics right, re-writing more of our letters so that
they make sense and starting to introduce the new Abbey brand to
our branches.  By early next year, customers will start to see
and experience a real difference."

                      *****

Abbey National plc, which is authorized and regulated by the
Financial Services Authority, only advises on its own life
assurance, pension and collective investment scheme products.
Rates are variable.  Gross interest only payable to eligible non-
taxpayers.


ABBEY NATIONAL: Relaunches Business, Shortens Brand to Abbey
------------------------------------------------------------
Abbey National is re-launching its business with plans to 'turn
banking on its head', and is announcing a radical shift in how it
means to treat customers.  The new approach centers on 'helping
people get on top of their money'.

Customers will see the first signs of the new bank from
Wednesday, including: simpler accounts and services; a new
catalogue, presenting its full range of services in one place; an
end to banking jargon, with all customer letters being rewritten;
a shortening of the bank's brand to Abbey and a new look
introduced for literature and branches; a new advertising
campaign on the theme of 'turning banking on its head'; plans to
change the name of some of Abbey's other brands to Abbey 60,000
extra training days this year for people who deal directly with
customers to help deliver the new approach; 600 extra people who
deal directly with customers being recruited for branches and
telephone centers.

Simpler and fewer accounts and services

From Wednesday, Abbey will start to simplify its accounts and
services, but says it recognizes there is a great deal more to be
done both in reducing the number of accounts on offer and
removing inconsistencies between them.

It will also now group its savings accounts into three types
(Easy Reach, Put Aside and Lock Away), and do the same for
mortgages (Easy Start, Sure, and Freedom), making it easier for
customers to find the right account for them.

Abbey will replace six different current accounts with just one -
The Account.  This will be flexible enough to grow with an
individual customer throughout their life.  Abbey will also
continue to offer its Basic Account for people with simpler
banking needs, and its Business Account for small businesses.

Advice on investments is also being changed so customers can
select one of three levels of service: Self Service, Walk in
Service and Comprehensive Advice Service.

The new service levels will be introduced gradually, between now
and next spring.  Abbey has already reorganized its branch
network and, to provide this improved service, is recruiting a
further 450 staff in branches and 150 in telephone centers to
deal directly with customers.

New catalogue for customers
To reflect the simplified range of new accounts and services,
Abbey will be bringing together key account information into a
single catalogue, written in an informal style and published
regularly.  It will do away with the need for many of its
different leaflets and pieces of literature, and will also
contain interesting features about money and real life issues,
from having a new baby to divorce and death.

The first catalogue, called Winter Warmer, will be delivered to
seven million Abbey customers over the coming weeks and will be
available from branches and telephone centers and can be ordered
from http://www.abbey.com

An end to jargon
Abbey is promising to get rid of complex financial jargon and to
talk with customers in a direct and engaging way.  It has already
begun to rewrite its range of letters, with all of the letters to
current account customers now complete and the rewrite of
mortgage letters underway.

Each letter is written in a simple style with a friendly tone of
voice and is free from financial jargon.  By the end of the year,
all customer letters will have been rewritten.

Abbey also acknowledges that it should offer a better service for
customers who have a complaint.  It will be making significant
improvements in this area including introducing the new writing
style.

New brand and design
The change in approach is being expressed through a new look for
the bank, including dropping National from the Abbey National
brand, so from today it will be known simply as Abbey.  Many of
Abbey's main offices will have the new name in place from today.

The new name is accompanied by a very different design.  Rather
than adopting a separate name and logo in pre-set corporate
colors, the Abbey name will serve as the logo and appear either
in white, or in one of four colors, which will be used
interchangeably and in combination.

It will feature in all new literature, checkbooks and cards.
Branch fronts will get an initial makeover in the coming months
with a full refurbishment program rolling out from the second
quarter of 2004.

New advertising
A new advertising campaign on the theme of 'turning banking on
its head' starts today, with the first TV ad breaking during
Coronation Street and Channel Four News.  This will be followed
by an extensive national press advertising campaign.

Fewer brands
During the next few months, Abbey will also simplify and
rationalize its brands helping employees and customers to see
Abbey as one company.  The strapline 'because life's complicated
enough' will no longer be used and the umbrella couple logo will
go.

cahoot, Abbey's internet bank, will remain as a separate brand
but will be more closely aligned to Abbey.  It will have a remit
to be innovative and used as a testing ground for new services
and accounts.  What works well will be brought back for the
benefit of all Abbey customers.


Most brands with Abbey National in the name -- such as Abbey
National for Intermediaries and Abbey National business - will
drop the National from their title.

During 2004, the Inscape and City Deal brands will be replaced by
Abbey, as will Scottish Mutual and Scottish Provident, for new
business.

The James Hay and Cater Allen brands, which have a distinctive
presence in their markets, will be retained, although some of
their services will, in due course, be offered under the Abbey
brand to its customers.

Abbey's people
Abbey's employees are essential to making the new business work.
The company is improving how it recruits, trains and retains its
employees.  It is committed to providing employees who deal
directly with customers with an extra 60,000 training days in the
second half of the year.

Abbey's new Customer Board, made up of representatives from Abbey
and people from outside the business, is working to ensure the
company continually improves its understanding of consumers and
that it designs and delivers better services to meet their needs.

Luqman Arnold, Chief Executive of Abbey, said: "Banks have
managed to make money scary, confusing and boring.  In talking to
customers, we have all been guilty of being patronizing and
overbearing.  Worst of all, banks have got in the way of
customers and their money.

"We want to turn banking on its head.  We've got a long way to go
before we've fully achieved that, but when we do, the new Abbey
will be part of the real world, the customer's world, not the
baffling world of banking.  We won't use jargon.  We want the
services we offer to be easier to understand and based on how
people actually think about their money.  We want to be the first
choice for the individual.  Not the biggest, just the best.

"To achieve all this, we will be investing in our marketing and
customer activities.  We have 18 million customers and we want to
do things that make them want to stay with us, do more business
with us, and recommend us to their family and friends.  This will
drive business growth, which we would expect to result in
stronger financial performance in the future."

Angus Porter, Abbey's Customer Director, said: "Abbey is much
more than a shorter name and new design.  We are undertaking a
radical transformation in how we think about customers, talk with
them and do business with them.  We still have a long way to go
and we won't change everything overnight but we are sending a
clear signal to our customers that we intend to be truly
different.

"The heartening thing is that Abbey people are really
enthusiastic about these changes.  This change is going to work
from the inside out.  There is a real desire amongst us all to
take up this challenge and move forward."

                      *****

Abbey is the new trading brand of Abbey National plc.  The
company will continue to be registered at Companies House, and
listed on the London Stock Exchange, as Abbey National plc.

Changing the subsidiary brands to Abbey will be subject to legal
and regulatory requirements.

The Abbey brand has already been registered as a trademark.


ANITE GROUP: Issues Profits Warning for First Half Results
----------------------------------------------------------

t the Annual General Meeting of Anite Group plc, the
international IT solutions and services company, on Wednesday,
Alec Daly, Chairman, made these remarks:

Current Trading and outlook

"The current financial year has started slowly but in line with
our expectations with overall trading conditions remaining tough.
As previously indicated, in view of these trading conditions, the
restructuring program and other one off costs, together with
higher development spending, profitability in the first half will
be down on the previous half year but again in line with our
expectations.  Although only four months into the current
financial year, our full year expectations have not changed.

In early September we reached a final settlement with the Group's
former Chief Executive.  The severance payment of GBP725,000,
which has been paid in part, is subject to full mitigation
provisions.

John Hawkins made a significant contribution to Anite but his
departure recognized that a different kind of Chief Executive was
required to achieve the consolidation of the business.  We wish
him well in his future ventures.

We continue to make progress in restructuring the business having
successfully completed the headcount reduction of 130 at a cost
of GBP2.1 million, as well as resolving a number of other issues
in respect of past acquisitions and contracts.

As previously indicated the local government applications
solutions part of our Public Sector business continues to present
a challenge to management and whilst the implementation of the
cost reduction and cash management plans are well underway and
achieving results, making the fundamental changes to its business
will take time.

Strong cash generation has remained a characteristic of Anite's
business and will enable the Group to pay out GBP7.8 million of
acquisition and earnout commitments by the end of September (out
of GBP11 million anticipated to be paid in the first half) whilst
keeping well within its banking facilities.  Net debt is, as
expected, anticipated to peak in the first half due to lower
profitability, restructuring costs and earnout payments.

In the year to date order intake has progressed well, although
sales are slightly lower than the previous year.  This combined
with continuing progress on cash management and cost reduction
plans means that profitability for the full year remains
consistent with our expectations.

The Group has seen encouraging order intake of GBP54.6 million in
the year to date.  The strongest performance continues to be
within Public Sector where a number of new orders have been
signed, and also with some encouraging orders in Telecoms -
Travel and Consultancy have remained weak as expected.

We intend to announce a trading update for the six months ended
October 31, 2003 in November.

Earnout renegotiations update

"In July we indicated that 100% of the Group's total potential
earnout liabilities had been realized, renegotiated or capped.
Further progress has been made in renegotiating Parsec's earnout
due to some major changes in that business.

Agreement has therefore been reached with the vendors of Parsec
to settle their outstanding earnout (maximum total of GBP6.8m
payable in Anite's financial year 2005/6) for GBP873,000, to be
paid in guaranteed loan notes, repayable after one year.  This,
together with other minor adjustments, has reduced the total
future cash earnout liability from GBP25.4 million to GBP19.5
million, whilst bringing forward all remaining 2005/6 financial
year liabilities, thus ensuring that all outstanding earnouts
will have been paid out by the year ended April 30, 2005, subject
to performance."

Chief Executive & succession planning

"I am pleased to report considerable progress in our search for a
new Chief Executive.  We are currently in final negotiations with
an individual and hope to make an announcement very soon.

Following an appointment, David Thorpe, the Group's interim Chief
Executive, after a short period of transition, will revert to
being a non-executive director of the Group.

Against the recent changes, the key task of the Board has been to
stabilize and strengthen the management of the business whilst
ensuring an element of continuity.  Thus I have stood for re-
election with the intention of remaining Chairman for at least
another year to bring about a restructuring and strengthening of
the Board.

Once the new Chief Executive has been appointed, and assuming
that continuing progress is made by the Group in 2004, having
been Chairman for nearly 8 years it is right and proper that I
stand down and my successor be identified.  To that end the Board
will be strengthened during the current financial year and
succession plans announced at the 2004 AGM."

CONTACT:  ANITE GROUP PLC
           Home Page: htt://www.anite.com
           David Thorpe, interim Chief Executive
           Phone: 0118 945 0129
           Christopher Humphrey, Group Finance Director

           Weber Shandwick Square Mile
           Reg Hoare/Sara Musgrave
           Phone: 020 7076 0700


BOXCLEVER: Largest Creditor Calls in Administrative Receivers
-------------------------------------------------------------
German bank WestLB on Wednesday called in receivers
PricewaterhouseCoopers to administer over parts of British TV
rental group Boxclever, according to the Financial Times.

WestLB is Boxclever's largest creditor.  It reported record
EUR1.7 billion (US$1.9 billion) loss for 2002 after taking EUR1.9
billion in provisions and write-downs on a range of investments,
the largest of which was on a Boxclever securitisation deal.

The bank is understood to have approached Goldman Sachs to look
at strategic alternatives for Boxclever.

Receivership gives WestLB power to restructure loss-making units
-- including the Endeva group of companies -- and possibly offer
them for sale.

Bankers said Endeva, which provides back-up services for the core
rental business and employs most of Boxclever's 4,000 staff, will
be maintained as going concerns while a review was conducted.

They also insisted Boxclever's core rental business would be
unaffected.  It has enough revenues to meet obligations,
according to them.


BRITISH AIRWAYS: Opens Pakistan Trips; Flights to Start December
----------------------------------------------------------------
British Airways is set to resume its direct flights to the
Pakistan capital, Islamabad this winter.

Flights will restart on Monday, December 1, 2003 and will be
available for sale from today (Wednesday, September 24, 2003).

The thrice-weekly flights from London Heathrow will depart on
Mondays, Wednesdays and Saturdays and from Islamabad on Tuesdays,
Thursdays and Sundays.

Dale Moss, British Airways director of sales, said: "We are
delighted that we are now able to resume our flights to
Islamabad.  As the only European carrier operating flights to the
northern region of the country, we provide an important link
between Europe and Pakistan.  We look forward to being able to
offer our customers a direct service once again."

Flights were suspended in September 2001 due to concerns about
security in the region.

Geoff Want, the airline's director of safety and security, said:
"Since our flights were suspended our team of security experts
has worked closely with the Pakistan authorities and the British
government to keep the situation under close review.  A number of
additional, robust and sustainable security measures have been
introduced.

"We have undertaken a thorough review of security arrangements at
Islamabad airport and we are now satisfied that it is safe for us
to resume our flights.  We will not fly to any destination unless
we are satisfied it is safe for us to do so."


CALEDONIA INVESTMENTS: Cayzer Challenges Performance Record
-----------------------------------------------------------
Since the announcement by Cayzer Continuation Limited and
Caledonia Realisation Limited of proposals for the reconstruction
of Caledonia and The Cazyer Trust Company Limited on September 5,
2003, a number of claims have been made by both Caledonia and The
Cazyer Trust Company Limited about Caledonia's 'outstanding
record of performance'.  The boards of Cayzer Continuation and
Cayzer Realisation challenge those claims.

In a statement made on Wednesday, the boards of Cayzer
Continuation and Cayzer Realisation said:

"We announced Proposals on 5 September which, in the view of the
boards of Cayzer Continuation and Cayzer Realisation, provide the
best opportunity for existing shareholders in both Caledonia and
The Cazyer Trust Company Limited to maximize value.  These
Proposals are supported by approximately 37% of the Free Float.
The boards of Caledonia and The Cazyer Trust Company Limited have
repeated their claims that Caledonia has delivered long-term
outperformance.  In a letter to The Cazyer Trust Company Limited
shareholders on September 15, 2003, the board of The Cazyer Trust
Company Limited referred to 'Caledonia's outstanding record in
delivering value and its belief that its successful long-term
strategy should continue to deliver outperformance going
forward."

These claims simply do not stand up to scrutiny.

"These statements are refuted by data from Mercer Investment
Consulting, the independent investment consulting company.  The
boards of Cayzer Continuation and Cayzer Realisation believe this
data demonstrates that shareholders in Caledonia -- and by
extension shareholders in The Cazyer Trust Company Limited, which
holds 37.7% of Caledonia -- have received indifferent capital
growth, a low yield (or income) and are seeing their reserves
being frittered away to pay dividends that Caledonia cannot pay
out of current earnings.  Meanwhile, Caledonia's management costs
continue to rise substantially.  Caledonia's performance is
highly volatile and dependent on the performance of a high-risk
portfolio which is highly concentrated and lacks liquidity."

The key points drawn by the boards of Cayzer Continuation and
Cayzer Realisation from the compelling data produced by Mercer
are set out:

(a) Caledonia's performance is inconsistent.  Measured by total
return (capital growth plus dividends), on the basis of its
financial year (to March 31) Caledonia underperformed the FTSE
All Share Total Returns Index between 1988 and 1992, outperformed
it in 1993 and 1994, underperformed it from 1995 to
2000, and has outperformed it since then.  When measured on
rolling 5-year and 10-year bases from April 1, 1988, Caledonia
has underperformed the FTSE All Share Total Returns Index
approximately half the time.  The overall picture, the boards of
Cayzer Continuation and Cayzer Realisation believe, is not
superior performance in the short, medium and long term as
presented at Caledonia's last AGM and now on its website.  The
boards of Cayzer Continuation and Cayzer Realisation believe much
of the recent improvement in the Caledonia share price is due to
the pressure for change exerted by some shareholders and,
latterly, the publication by Cayzer Continuation and Cayzer
Realisation of the Proposals for a restructuring of Caledonia.

(b) The market has shown little faith in Caledonia's performance.
The discount of Caledonia's share price relative to net asset
value -- a measure of the market's confidence in Caledonia's
performance, management and liquidity -- was on a widening trend
from 1995 to the end of 2002.  It has fallen from about 30% to
under 20% this year.  The boards of Cayzer Continuation and
Cayzer Realisation believe that this narrowing of the discount
owes much to recent changes -- such as conversion to investment
trust status and splitting the roles of chairman and chief
executive -- which supporters of the Proposals began to champion
several years ago.  Market expectations of further reforms to
Caledonia and the way it is run have also influenced the
discount.  The boards of Cayzer Continuation and Cayzer
Realisation believe that this discount will widen again if
proposals to further restructure Caledonia and The Cazyer Trust
Company Limited are not pursued.

(c) Caledonia's dividend yield is below average and in the past
two years has not been covered by income generated.  Although
Caledonia's dividends have risen for 36 consecutive years, in
fact, Caledonia was yielding just 2.8% on its share price and
only 2.3% on its net asset value compared with 3.3% for the FTSE
All Share Index as at 23 September 2003.  Moreover, Caledonia's
dividends have gone up in increments of only 1p a year since
1999.  Even the recent small increases in annual dividend in 2002
and 2003 have depended on dipping into Caledonia's accumulated
reserves.  Clearly, this is not sustainable.

(d) Caledonia's portfolio is high risk. The board of Caledonia
claims to run a medium risk portfolio with an eye on 'wealth
creation over the long term'.  In fact, Caledonia's portfolio is
disproportionately invested in two stocks where Caledonia has no
management control (by value, 22.7% in Close Brothers and 13.4%
in Kerzner International), which together account for about 36%
of Caledonia's net asset value.  Approximately 25% of the
portfolio is also invested in unquoted investments/companies.
This over-concentration of, and lack of liquidity in, more than
60% of net asset value would be more characteristic of a high-
risk fund -- from which investors would expect a much higher
performance than Caledonia has produced on any measure of total
shareholder return.

Furthermore, in the 12 months to 23 September 2003, Close
Brothers and Kerzner International's share prices have
experienced a swing of 82% and 91% respectively whilst
Caledonia's share price has suffered a 63% swing during this same
period (high of 973p; low of 595p).  In October 2001, Caledonia
was forced to issue a profit warning (interim profit down 65%)
with the poor performance at Close Brothers cited as a principal
reason.  The value of shareholders' investment in Caledonia and
The Cazyer Trust Company Limited is clearly very volatile and
highly vulnerable to the performance of only a few of its
investments.

(e) The cost of Caledonia's modest and erratic performance has
rocketed.

Between the year ended March 31, 1998 and the year ended March
31, 2003 annual management fees charged to Caledonia have soared
from GBP6.1 million to GBP9 million, an average annual rate of
increase of 8.1%.  This generous treatment of managers contrasted
sharply with the fortunes of investors who, between the same
dates, saw Caledonia's closing net asset value fall.  Investors
are entitled to ask whether they have received value for money in
the management of their investments and whether the distribution
of benefits between management and shareholders has been
equitable and in the interest of the whole company.

The boards of Cayzer Continuation and Cayzer Realisation believe
that this continuing rise in management fees is not in the
interest of Caledonia's shareholders.  Why is it costing
Caledonia approximately 12.5p a share to yield a dividend of 26p
when simply investing the underlying assets with less risk in the
FTSE All Share Index could yield 38p as at September 23, 2003?

Caledonia and The Cazyer Trust Company Limited have cited alleged
long-term outperformance as a principal reason for rejecting the
Proposals.  But Caledonia's investment record is notable for
long-term underachievement, volatility and inconsistency.  The
weight of the evidence does not inspire confidence that Caledonia
will be an adequate store of value for future generations.
Caledonia's investment management has not served shareholders
well.  The boards of Cayzer Continuation and Cayzer Realisation
believe the Proposals provide the best opportunity for
shareholders to maximize value, increase liquidity and give
shareholders greater choice between maximizing cash proceeds and
having the opportunity to have a direct say in the investment of
their assets.  The boards of Cayzer Continuation and Cayzer
Realisation urge the board of Caledonia to seize the opportunity
presented by the Proposals to maximize shareholder value.  The
status quo is not an option.

                      *****

Caledonia's performance relative to the FTSE All Share Index has
been calculated based on total return data drawn from Datastream
for the period from March 31, 1988 to July 4, 2003.  This data
takes the form of total return indices for both Caledonia and the
FTSE All Share Index.  Annual total shareholder returns are
calculated by dividing the index value at the date of measurement
by that which prevailed a year earlier.  Similarly, rolling five-
year and ten-year returns are calculated in the same way but with
the denominator being the value five years or ten years prior to
the calculation date respectively.  These returns are then
annualized.  The relative return is calculated by taking the
geometric difference between the annualized return calculated for
Caledonia and that for the FTSE All Share Index.

The discount at which Caledonia has traded relative to net asset
value has been calculated by subtracting the share price from the
net asset value and dividing this difference by the net asset
value.  The net asset value figure has been drawn from the
relevant Interim Report or Annual Report, adjusted where
subsequent restatements have been published.  The share price has
been obtained from Datastream.

The dividend yield has been drawn from Datastream.  The dividend
amount and net asset value have been obtained from the relevant
Annual Report, adjusted where subsequent restatements have been
published.  The calculation of dividend cover (i.e. dividends
compared to profits after tax and minority interests) has been
based on the Profit and Loss Account in the relevant Annual
Report.

Caledonia's exposure to Close Brothers and Kerzner International
is as stated in the Investor Presentation of September 16, 2003
on Caledonia's website.

The exposure to unlisted investments is drawn from the Annual
Report for 2003.

Share price data has been sourced from Datastream.


Change from 52
  Company         52 week low   52 week high    week low ('swing')
-----------------------------------------------------------------
Caledonia Investments plc
                  595.0p         972.5p                  63%

Close Brothers plc
                  427.5p         777.5p                  82%

Kerzner International
                 US$18.8        US$35.9                  91%

Source: Datastream and the Daily Official List (23 September
2003)

The management fees and net asset values have been drawn from the
Annual Reports to which they relate.  The calculation of the
management cost of 12.5p per share is based on the 2003 cost of
managing the group's investment operations (GBP9.0 million as per
page 25 of the 2003 Annual Report) and the weighted average
number of ordinary shares in issue over the corresponding period
(72,133,756 as per page 57 of the 2003 Annual Report).  The yield
that could have been earned had the underlying assets been
invested in the FTSE All Share Index is calculated based on the
net asset value of 1,154p per share (as per the Monthly Fact
Sheet for August 2003) and the FTSE All Share Index dividend
yield as at September 23, 2003 (sourced from Datastream).

The reference to the profit warning by Caledonia is drawn from
the 'Statement on the Forthcoming Interim Results' issued by
Caledonia on October 23, 2001.

Save as referred to above, the source of all further information
relating to Caledonia or The Cazyer Trust Company Limited in this
announcement comprises public statements made by Caledonia or
documents sent to shareholders of Caledonia or The Cazyer Trust
Company Limited.

CONTACT:  CALEDONIA REALIZATION LIMITE
           Sir John Craven
           Phone: 020 7409 5649

           CAYZER CONTINUATION LIMITED
           Anthony Cardew

           CARDEWCHANCERY
           Phone: 020 7930 0777

           DEUTSCHE BANK
           Phil Brown, Corporate Advisory
           Phone: 020 7545 8000
           James Agnew, Corporate Broking


CLUBHAUS PLC: Debt Burden Erases Prospect of Profit for the Year
----------------------------------------------------------------
Clubhaus PLC announces that following the successful disposal of
all of its non-core businesses, the core portfolio of 11 clubs
has performed in line with management's expectations during the
first 11 months of the current financial year, which ends on
September 30, 2003.  On a like for like basis the results for the
11 clubs for the full year will be significantly ahead of those
achieved in the previous year.  However due to the high level and
cost of debt within the company, it is unlikely that the company
will report a profit for the year ended 30 September 2003.

In this year's Interim Report, which was published on May 16,
2003, the Chairman made reference to the strategic objectives of
the Group, namely to continue to focus on the U.K. Country Club
business and secondly to develop the four remaining clubs, which
do not offer health and fitness facilities, into Country Clubs.
The development of the portfolio, specifically the four clubs, is
precluded by the current capital structure, which contains a high
level of expensive and restrictive borrowings.  The Chairman also
made reference to the fact that the Board was working on
initiatives to reduce the burden of debt to allow the development
projects to be completed.

During the past few months it has become apparent that there are
a number of alternative options that the Board can pursue to
achieve its objectives, including the possible sale of the
company.  However the review of the options is at an early stage
and there is no certainty that a sale will be pursued.  In the
event that a sale of the company is considered to be in the best
interests of shareholders, certain members of the Board have
indicated that they would be interested in pursuing a management
buy-out to determine if this produced the best deal for
shareholders.  As a result of the initiatives described above,
the company appointed Close Brothers Corporate Finance Limited on
September 22, 2003 to assist the Board in reviewing all the
options available.  A further announcement will be made in due
course.


Close Brothers Corporate Finance Limited and KBC Peel Hunt
Limited are acting exclusively for Clubhaus PLC in connection
with the matters referred to in this announcement and will not be
responsible for anyone other than Clubhaus PLC for providing the
protections afforded to their respective clients or for providing
advice in relation to the matters referred to in this
announcement.

CONTACT:  CLUBHAUS PLC
           Charlie Parker, Managing Director
           Paul Stephens, Finance Director
           Phone: 0870 240 8924

           KBC PEEL HUNT LIMITED
           Capel Irwin
           Phone: 020 7418 8900

          CLOSE BROTHERS CORPORATE FINANCE LIMITED
          Alka Bali
          Phone: 020 7655 3100

          FINANCIAL DYNAMICS
          Giles Sanderson
          Phone: 020 7831 3113


CORUS GROUP: Pre-exceptional Operating Loss Narrows to GBP36 MM
---------------------------------------------------------------
This Interim Report sets out the results for the six months to
June 28, 2003 and, unless otherwise stated, comparisons are to
the six months to June 29, 2002.  Figures for the twelve months
ended December 2002 have been extracted from the audited
accounts, which have been delivered to the Registrar of Companies
and on which the auditors have issued an unqualified report.  The
audit report referred to a fundamental uncertainty in respect of
the application of the going concern basis.  The matter leading
to this fundamental uncertainty has been resolved, as described
on "Cash flow and financing".

KEY FINANCIALS AND HIGHLIGHTS

Corus announces interim results for the half year to June 28,
2003:

Key financials                               2003   2002    2002
GBPm                                         H1      H2     H1

Turnover                                   4,023   3,612   3,576

EBITDA (before exceptional items) (1)        120      27     (80)

Operating loss (before exceptional items)    (36)   (141)   (252)

Group operating loss                         (57)   (239)   (207)

Loss before taxation                         (89)   (170)   (234)

Net borrowings at end of period           (1,506) (1,236) (1,680)

Losses reduced in first half:
(a) Growth in turnover driven by both higher prices and volumes
(b) U.K. operations stabilised and manufacturing performance
improved across the Group
(c) Significant increases in underlying raw material costs

Cautious outlook for second half:
(a) Market conditions remain difficult and weak European demand
is expected to limit immediate further progress
(1):  see note 11,  "Supplementary information"

"Restoring Success" launched:
(a) New appointments to top teams
(b) New divisional structure established
(c) First phase of U.K. restructuring launched
(d) Further significant measures to improve performance underway
(e) Progress being made towards building a stronger financial
base

COMMENTS BY CHAIRMAN AND CHIEF EXECUTIVE

Commenting on today's announcement, Jim Leng, Chairman, said:

"These results demonstrate that some progress has been made in
reducing operating losses, but much remains to be done.  We are
taking radical measures to put the company on a sound basis and
allow it to realize its full potential.  Philippe Varin is
leading and accelerating the pace of change and has begun the
process of renewal which the Board believes is essential if Corus
is to generate value for shareholders."

Philippe Varin, Chief Executive, said:

"Corus has some strong businesses but is currently producing
unsatisfactory results.  Our "Restoring Success" initiatives are
designed to improve our performance and allow us to build a firm
platform for future growth.

Already we have made progress.  We have established a new
divisional structure, which will sharpen strategic focus,
increase accountability and help secure benefits across business
units.  We are rejuvenating the management team, reducing
bureaucracy, encouraging interdivisional co-operation and
fostering a can-do culture.  Today we have launched the first
phase of our U.K. restructuring plans to restore the
profitability of our Engineering Steels business.  This first
phase will be funded from a combination of disposals and ECA -
backed finance.

Although we have developed considerable momentum, implementing
all our plans will take some time.  Meanwhile, we foresee
difficult market conditions which will limit further improvements
in our financial results in the immediate future."

INTERIM STATEMENT

Half-year results

The half-year results for the Group were significantly better
than those of last year, with an operating loss before
exceptional items of GBP36 million for the first half of 2003, as
compared with losses of GBP252 million and GBP141 million
respectively for the first and second half years of 2002.  The
Group operating loss amounted to GBP57 million as compared with
GBP207 million in the first half of 2002 and GBP239 million in
the second half.

The main factor contributing to the better performance was an
improvement in the Group's carbon steel operations, driven by
higher selling prices, a more stable U.K. plant configuration and
a recovery in sales volumes.  The impact of exchange rate effects
from the strengthening Euro also contributed positively.  These
benefits were, however, partially offset by the impact of higher
raw material input costs.

The net loss after tax and minority interests amounted to GBP125
million and the Board has decided that no interim dividend will
be paid.  There was an operating cash outflow of GBP101 million
during the first half year, principally arising from an increase
of GBP219 million in working capital as a consequence of higher
selling prices and volumes.  Net borrowings at the end of the
half-year amounted to GBP1.5 billion as compared with GBP1.2
billion at end-December 2002, and GBP1.7 billion at end-June
2002.

Current trading and market outlook

Although there are early signs that a global economic recovery
will take place during 2004, the immediate outlook remains
difficult.  Conditions in the Group's key European markets are
challenging with continuing weakness in demand within
manufacturing and construction sectors.  In addition to the
adverse impact of these market factors, the second half of 2003
will be subject to the normal seasonal impact (around GBP25
million) of planned Summer and Christmas maintenance periods.
These factors are expected to offset the combined benefits of
further improvements in manufacturing performance, ongoing
efficiency gains and the impact of the strengthening of the Euro
that was seen in the first half of 2003.

"Restoring Success" plans

Since joining Corus on May 1, 2003, Philippe Varin has undertaken
a review of the Group and established priorities for the future.
These initiatives to set Corus on the road to recovery are known
as "Restoring Success".  Some of these plans are already being
implemented and the pace of change is expected to accelerate
going forward.  The "Restoring Success" plans cover three main
areas: management and leadership; operational performance; and
finance.

Management and leadership

Change has started at the top.  Philippe Varin became Chief
Executive on May 1, and Jim Leng succeeded to the chairmanship of
the Group on 1 June.  In addition, two new non-executive
directors were appointed to the Board in June and August, and
three new members have been appointed to the Executive Committee.
The top 50 senior managers have participated in a rigorous
external assessment process.  Going forward we will ensure that
our management gains further international experience.  New
appointments will then be drawn from a broader, more
international pool of talent.  We have established a new
divisional structure with each division headed by a member of the
Executive Committee in order to bring greater accountability to
the management process and a clearer focus on revenues, costs and
customer service.

Operational performance

Although results from operations have improved, they continue to
be unsatisfactory, particularly in the U.K.  The absolute
priority is the restructuring of the Group's U.K. operations in
order to improve efficiency, reduce costs and be cash positive
even at the bottom of the cycle.  Steel production in the U.K.
will be focused on three sites: Port Talbot for flat products,
Scunthorpe for long products; and Rotherham for engineering
steels, with capacity aligned to a realistic assessment of the
available market.  The decision to proceed with the first phase
of U.K. restructuring has been announced today with the launch of
a major investment at Corus' Engineering Steels business.

Work is ongoing to assess the potential for refocusing Teesside
as a cash-generative slab and bloom producer feeding
international markets.  As part of this work, partnership and
joint venture opportunities will be explored.

Within the Group's new operating divisions, plans are being
developed for each business unit focusing on manufacturing
excellence and supply chain optimization.  Corporate resources
will be directed at supporting these activities.  In addition, a
rigorous review is underway covering purchasing, logistics and
support services.

Finance

A new EUR1.2 billion banking facility was signed on July 31,
replacing the facility that was due to expire at the end of
January 2004.  The new facility has a final maturity date of June
30, 2006 and provides committed bank financing for Corus' working
capital requirements.

As to the funding of the U.K. restructuring plans, the first
phase covering Corus Engineering Steels, which is announced
today, will be funded from a combination of disposal proceeds and
Export Credit Agency backed finance.  Options for funding the
measures to be taken in the Group's Flat Products and Long
Products divisions are currently being assessed.  Important
medium term goals are: to reduce the level of the Group's
borrowings; to regain investment grade status; and, in due
course, to resume the payment of dividends to shareholders.

REVIEW OF THE PERIOD

Summary of operating results

Group turnover for the first half of 2003 totaled GBP4,023
million (2002: GBP3,576 million) and operating costs amounted to
GBP4,080 million (2002: GBP3,783 million), including exceptional
items of GBP21 million (2002: credit of GBP45 million).  Turnover
and operating costs for the first half were influenced by the
impact of exchange rate effects as a result of the strengthening
Euro and weakening of the U.S. dollar.  The Group operating loss
before exceptional items amounted to GBP36 million as compared
with GBP252 million in the first half of 2002 and GBP141 million
during the second half.  After taking account of exceptional
items, the Group incurred an operating loss of GBP57 million as
compared with losses of GBP207 million in the first half of 2002
and GBP239 million during the second half.  Half-yearly
comparisons of the results are discussed in more detail below in
the context of "Carbon steel" and "Aluminium".

Carbon steel

Total carbon steel turnover for the half year totaled GBP3,513
million (2002: GBP3,076 million) and included the impact of
exchange rate effects as a result of the strengthening Euro, and
an increased level of distribution and further processing
turnover and other turnover which together amounted to GBP790
million (2002: GBP715 million).  Product turnover was 15% higher
at GBP2,723 million (2002: GBP2,361 million) reflecting the
combination of a 9% increase in average revenue and a 6% rise in
sales volume.  As compared with the second half of 2002, average
revenue and sales volume increased by 6% and 8% respectively,
resulting in product turnover being up by 14%.

The U.K. market saw an estimated fall of 4% in steel demand
reflecting declines in the industrial building sector and most
manufacturing industries.  However, Corus' total carbon steel
sales volume in the U.K. was 3.14mt, 5% above the level of the
first half of 2002 (2.99mt) which, together with a 6% rise in
average revenue, resulted in turnover of GBP922 million being 11%
higher than in the corresponding period last year (GBP830
million).  As compared with the second half of 2002, product
turnover in the U.K. rose by 13% with increases of 8% in sales
volume and 5% in average revenue.  These improvements mainly
reflect the combination of higher underlying selling prices in
most product areas (both in terms of contract and spot prices)
and a more stable plant configuration including the successful
resumption of a two-blast furnace operation at Port Talbot.

In other European markets, carbon steel product turnover amounted
to GBP1,372 million and was 21% above the level of the first half
of 2002 (GBP1,134 millin) as a result of sales volume, which
increased by 8% to 4.47mt (2002: 4.13mt), and average revenue
which rose by 12%.  As compared with the second half of last
year, product turnover increased by 19% as a result of higher
sales volume (up 12%) and improved average revenue (up 7%),
despite subdued levels of demand.  Outside of Europe, sales
volume was broadly unchanged at 1.28mt (2002: 1.27mt) but
turnover of GBP429m (2002: GBP397m) was 8% higher mainly as a
result of improved selling prices, with average revenue up by 7%.

Total carbon steel operating costs for the first half of 2003
amounted to GBP3,584 million (2002: GBP3,304 million).  Operating
costs excluding exceptional items amounted to GBP3,564 million
and were 6% above the level of the corresponding period in 2002
(GBP3,349 million), reflecting the 6% rise in sales volume
together with substantial increases in underlying costs of raw
materials (particularly iron ore, coke and scrap), the impact of
which was partially mitigated by the weaker U.S. dollar.

Comparisons of operating costs were also influenced by exchange
translation effects of a strengthening Euro and continuing
benefits from ongoing manpower productivity and efficiency
improvement measures, launched in 2001 and 2002 and including the
"World Class IJmuiden" and "High Performance Strip" programs.  A
net charge of GBP20 million for exceptional items was made in the
first half of 2003, mainly in respect of the announced closure of
the electro-zinc line at Shotton in North Wales.  This compared
with a net credit of GBP45 million in the first half of 2002 and
a net charge of GBP90 million in the second half.

Against the above background, the first half year for carbon
steel resulted in an operating loss of GBP51 million before
exceptional items.  This compared with losses of GBP273 million
in the first half and GBP149m in the second half of last year.
After taking account of exceptional items, the carbon steel
operating loss amounted to GBP71 million as compared with GBP228
million in the first half of 2002 and GBP239 million in the
second half.  The carbon steel operating loss of GBP51 million
before exceptional items comprised a profit of GBP76 million from
Corus Nederland's carbon steel operations and a loss of GBP127
million from Corus U.K.

Aluminum

Turnover during the first half of 2003 totaled GBP510 million and
was 2% above the level of the corresponding period in 2002
(GBP500 million), with a 5% increase in average revenue being
partially offset by a 3% net fall in sales volume.  The exchange
translation effects of a strengthening Euro and a reduced level
of sales of primary aluminum were the principal factors
contributing to the increase in average revenue.  The net fall in
sales volume was mainly due to lower sales of primary aluminum.
For rolled products and extrusions, sales volumes increased as
the European market saw some recovery particularly in the first
quarter of 2003 from its low point in mid-2002.

Total aluminum operating costs amounted to GBP496 million and
were 4% above the level of the first half of 2002 (GBP479
million) mainly reflecting a combination of exchange translation
effects of a strengthening Euro, higher energy costs, and
commissioning costs relating to the start-up of new equipment.
The underlying LME price averaged US$1,376 per ton during the
first half year (2002: US$1,366) but, over the same period, the
weakness of the U.S. dollar led to a fall of 14% in the Euro
equivalent.  A net charge of GBP1 million was made in the first
half of 2003 in respect of exceptional items.  This compared with
GBPnil in the first half and a charge of GBP8 million for the
second half of 2002.

Against the background outlined above, the first half-year for
aluminum resulted in an operating profit of GBP15 million before
exceptional items.  This compared with profits of GBP21 million
in the first half and GBP8m during the second half of last year.
After taking account of exceptional items, the aluminium
operating profit amounted to GBP14 million, as compared to GBP21
million in the first half of 2002 and GBPnil in the second half.

Restructuring and impairment exceptional items

A net charge of GBP21 million was incurred in respect of
exceptional items and included a charge of GBP20 million relating
to the announced closure of the electro-zinc line at Shotton.
This compared with a net credit of GBP45 million in the first
half of 2002 and a net charge of GBP98m in the second half.  No
provisions were made in Corus' accounts for the half year in
respect of costs associated with the key findings of the U.K.
asset review, which were announced at Corus' AGM on April 29,
2003 and were and remain dependent on appropriate funding.

In addition to the restructuring and impairment exceptional
items, operating costs for the first half of 2003 also include
one-off items in respect of: the cost of the Pechiney break fee
(GBP14 million); costs of renegotiating the syndicated facility
(GBP9 million); and, the final insurance settlement received in
respect of the Port Talbot blast furnace (credit of GBP23
million). The only significant one-off items in 2002 were in the
second half-year, in respect of transaction costs (GBP23
million).

Profit and loss account

The Group operating loss amounted to GBP57 million and translated
into a total operating loss of GBP52 million after taking account
of Corus' GBP5 million share of the operating results of its
associated undertakings which, since July 1, 2002, has excluded
AvestaPolarit following the sale of Corus' 23.2% stake in that
company.  A profit of GBP11m was realized on sale of fixed
assets, mainly as a result of property disposals in the U.K.
during the half-year.  After taking account of net interest
payable of GBP48 million, a loss before taxation of GBP89 million
was incurred.  The net tax charge amounted to GBP36 million and
the Group incurred a net loss for the half year of GBP125
million.

Cash flow and financing

There was a net cash outflow from operating activities of GBP101
million during the half year.  The key feature was an increase in
working capital requirements of GBP219 million principally as a
result of the combination of improvements in underlying selling
prices and higher sales volume.  A net cash outflow of GBP46
million from capital expenditure and financial investment
included gross capital expenditure of GBP63 million.  The effect
of changes in foreign exchange rates resulted in an increase in
debt expressed in sterling terms of GBP39 million.  After taking
account of these and other movements, net borrowings amounted to
GBP1,506 million as compared with GBP1,236 million at December
28, 2002 and GBP1,680 million at June 29, 2002.

On July 31, 2003, Corus signed a new EUR1.2 billion secured
banking facility which replaced the facility that was due to
expire at the end of January 2004.  The new amortizing syndicated
facility has a final maturity date of June 30, 2006 and provides
committed bank financing for the Group's working capital
requirements.  The facility size of EUR1.2 billion reduces: to
EUR1.0 billion from the end of January 2004; to EUR800 million
from the end of June 2005; and, to EUR600 million from the end of
December 2005.

The financial statements for the year ended December 28, 2002
were drawn up on a going concern basis but highlighted the
fundamental uncertainty surrounding the requirement to replace
the existing syndicated bank facility which was due to expire at
the end of January 2004.  Discussions on a new three year
facility were successfully concluded on July 31, 2003 and this
removes the fundamental uncertainty.  Compliance with the terms
of the new facility is dependent on the financial performance of
the Group having regard to the adequacy of facilities available
and various financial covenants including gearing levels and
EBITDA/net interest cover.  The directors believe, based on
current projections which remain dependent upon steel market and
broader economic conditions, that the facilities available are
sufficient to meet the Group's current financing needs and the
Group will be able to comply with the new covenants.  On the
basis of the foregoing the financial statements for the 6 months
to June 28, 2003 are drawn up on a going concern basis.

Employees

Employees at June 28, 2003 totaled 50,400 as compared to 50,900
at December 28, 2002.  The net reduction of 500 comprised some
700 job losses relating to previously announced efficiency and
manpower productivity improvement measures partly offset by some
200 job additions through acquisition.

Accounting policies

The accounts for the half year have been produced in accordance
with the applicable accounting standards in the U.K., which have
been consistently applied, and in accordance with the accounting
policies set out in the Report and Accounts for the period to
December 28, 2002.  They also include a reconciliation of
earnings and equity under U.S. GAAP as set out in note 14 of
"Supplementary Information" in this release.  There have been no
new U.K. standards issued by the Accounting Standards Board since
the last Report & Accounts.  However, one standard, FRS 17
"Retirement Benefits" which was issued in November 2000 has
measurement requirements which do not need to be met in the
primary statements until accounting periods which begin on or
after January 1, 2005.  The standard has not been adopted,
although the required transitional disclosure requirements were
made in the Report & Accounts for 2002.  Disclosure information
on the net pension asset determined in accordance with FRS 17 is
set out in note 13 of "Supplementary Information" in this
release.  On April 18, 2002, Corus launched a revolving-period
trade debtor securitisation program in the U.K.  Under FRS 5
"Reporting the substance of transactions" the cash advanced has
been offset against the assigned trade debtors as set out in note
9 of "Supplementary Information" in this release.

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

Independent Review Report to Corus Group plc

Introduction

We have been instructed by the company to review the financial
information, which comprises the profit and loss account, the
balance sheet, the cash flow statement, the statement of total
recognized gains and losses and the related notes.  We have read
the other information contained in the interim report and
considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by the
directors.  The directors are responsible for preparing the
interim report in accordance with the Listing Rules of the
Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should
be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for
them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in
Bulletin 1999/4 issued by the Auditing Practices Board for use in
the United Kingdom.  A review consists principally of making
enquiries of group management and applying analytical procedures
to the financial information and underlying financial data and,
based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise
disclosed.  A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and
transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards
and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial
information.  This report, including the conclusion, has been
prepared for and only for the company for the purposes of the
Listing Rules of the Financial Services Authority and no other
purpose.  We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.

Review conclusion

On the basis of our review we are not aware of any material
modifications that should be made to the financial information as
presented for the six months ended June 28, 2003.

PricewaterhouseCoopers LLP

Chartered Accountants

London

September 24, 2003

Notes:

(a) The maintenance and integrity of the Corus Group plc website
is the responsibility of the directors; the work carried out by
the auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any
changes that may have occurred to the interim report since it was
initially presented on the website.

(b) Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from
legislation in other jurisdictions.

CONTACT:  CORUS GROUP PLC
           Investor Relations
           Phone: (44) (20) 7717 4503/4504/4501
           or
           Corporate Relations
           Phone: (44) (20) 7717 4502/4597/4505
           Home Page: http://www.corusgroup.com


KLEENEZE PLC: Reports Improvement in Sales in First Quarter
-----------------------------------------------------------
William Rollason, Chief Executive of Kleeneze plc, the leading
direct to home shopping group, made this statement at the Annual
General Meeting held Wednesday:

"At Kleeneze U.K. sales in the first quarter were slightly ahead
of last year, however, further growth was hindered by our main
catalogue which had become tired.   We have re-designed the
catalogue and the new design was launched during the summer.  The
initial indications are positive with an increase in the average
order value per ordering distributor.  At the beginning of this
month we held our biggest ever Christmas conference with over
6,000 attendees.  We issued our Christmas catalogue together with
new exclusive partnership programs to increase the range of
products and services offered by our distributors thereby further
aiding recruitment and retention.  We have also introduced for
the first time a dedicated occasion-based catalogue for Halloween
and propose to exploit other seasonal events in this way.

At Farepak, activity for the busy Christmas period, which
commences in September, is currently getting underway and the
order book is in line with last year.

We remain focused on exploiting the many opportunities to develop
Kleeneze U.K. and Farepak and overall we remain confident of
meeting our expectations for the full year."

                      *****

Kleeneze reported a GBP36 million-pre-tax loss in July mainly due
to its loss-making division DMG.

CONTACT:  KLEENEZE PLC
           Phone: 01793 606 000
           W P Rollason, Chief Executive
           C J S Hulland, Finance Director

           BUCHANAN COMMUNICATIONS
           Phone: 020 7466 5000

           Richard Oldworth
           Catherine Miles


MAL HOLDINGS: Royal Bank Calls in Joint Administrative Receivers
----------------------------------------------------------------
Former company name: MAL OPERATIONS LIMITED

Nature of business: Full design-to-manufacture capability in the
aerospace sector

Trade classification: 7415

Date of appointment of Joint Administrative Receivers: September
15, 2003

Name of appointer: The Royal Bank of Scotland plc

CONTACT:  RSM ROBSON RHODES LLP
           186 City Road, London EC1V 2NU
           RSM Robson Rhodes LLP, Centre City Tower
           7 Hill Street, Birmingham B5 4UU and

           RSM Robson Rhodes LLP, St. George House
           40 Great George Street, Leeds LS1 3DQ

           Contacts:
           Simon Peter Bower
           John Neville Whitfield
           Charles William Anthony Escott


MANGANESE BRONZE: Reports Pre-tax Loss on Ordinary Activities
-------------------------------------------------------------
Manganese Bronze Holdings PLC, the specialty automotive and taxi
services group, announces its unaudited preliminary results for
the year to July 31, 2003.

Group structure transformed

(a) Disposal of Components Division for GBP8 million successfully
completed;

(b) Sale and leaseback of Coventry site raised GBP8 million

(c) Dispute with Brilliance settled, GBP1.25 million received

(d) Special dividend of 25p per ordinary share

(e) Manganese Bronze now a focused specialty automotive and taxi
services group

Financial headlines

(a) Turnover from continuing operations down 1% on previous year
from GBP86.9 million to GBP86.0 million

(b) Core vehicles division produced GBP4.5 million operating
profit (including GBP1.1 million of China profit) (2002: GBP3.7
million) on sales of GBP86.0 million

(c) Total loss on ordinary activities before finance charges and
tax of GBP9.6 million (2002: GBP2.2 million) reflects significant
one-off factors -- including the loss on disposal of discontinued
operations (Components) of GBP7.5 million, Zingo development
costs of GBP3.3 million and pension contributions to the closed
scheme of GBP2.4 million

(d) Recommended final dividend for the year of 2p (2002: 1p)
reflects confidence in future strategy of the Group

(e) Total dividend for the year 27p (2002: 1p)

Operational highlights

(a) Taxi sales declined by 10.8% to 2,320 vehicles (2002: 2,602)
reflecting weak economic climate in London

(b) Zingo, the mobile phone taxi hailing service, now installed
in over 700 taxis in London and experiencing steady growth.

(c) Good progress being made with potential new partners in China

(d) Certification of taxis for US market complete, first 26
vehicles delivered to U.S. distributor

(e) Initial orders received from Spain and Thailand for 77 taxis.


Tim Melville-Ross, Chairman, said;

"It has been a year of transformation for Manganese Bronze.  We
are now a focused specialty automotive and taxi services group.

"The economic outlook remains uncertain and any improvement in
U.K. taxi sales will depend on an upturn in activity for our taxi
driver customers.  We will continue our strategy of controlled
international expansion and growth of our service activities.  We
expect to make steady progress with a new partner in China.
Early experience with our Zingo service is promising, and
progress with this will have a significant impact on our results
for the current year."

CONTACT:  MANGANESE BRONZE HOLDINGS PLC
           Ian Pickering, Chief Executive
           Phone: 020 7153 1325

           Mark Fryer, Group Finance Director
           Phone: 020 7153 1325

           FINANCIAL DYNAMICS
           Andrew Lorenz
           Phone: 020 7831 3113
           Jon Simmons
           Phone: 020 7831 3113
           Peter Otero
           Phone: 020 7831 3113


MARCONI CORPORATION: Sells Shareholding in Bookham Technology
-------------------------------------------------------------
Marconi Corporation plc (London: MONI) announces that it has
today sold its holding of 12,891,000 shares in Bookham Technology
plc (LSE: BHM; Nasdaq: BKHM) through a placing with institutional
investors carried out by Cazenove & Co. Ltd for a total cash
consideration of GBP16,758,300.  The cash proceeds will be paid
into a mandatory redemption escrow account and will be used, in
due course, to fund a further partial redemption of the Group's
Junior Notes.

Marconi acquired its holding in Bookham Technology in February
2002 as consideration against the sale of its Optical Components
business to Bookham.

About Marconi Corporation plc Redemption Escrow Account (MREA)

When the balance of the MREA reaches US$30 million, this triggers
a mandatory partial redemption of Marconi's Junior Notes at 110
per cent of par value.

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


NETWORK RAIL: Rob Den Besten Appointed Non-Executive Director
-------------------------------------------------------------
Network Rail is pleased to announce the appointment of Rob den
Besten as a non-executive director.  Mr den Besten, 62, was
President and CEO of Netherlands Railways from 1992 to 2000.
Between 1998 and 2000 Mr den Besten was also President of the
Community of European Railways.  He brings a wealth of business
and international transport experience to the Network Rail Board
of Directors.

Previously, he was President and CEO of Amsterdam Airport Schipol
(1989-1992), Secretary-General of the Ministry of Transport and
Public Works (1984-1989) and Managing Director of the Rotterdam
Municipal Transport Corporation (1980-1984).

His early career, was spent at Hoogovens, the Dutch iron and
steel company.  He holds a masters degree in economics and
politics from Erasms University, Rotterdam.

Rob den Besten's other positions include membership of the
Supervisory Boards of Strukton Group (the construction and
maintenance business of Netherlands Railway) and Deutsche Bahn
Cargo, and he is a member of the Advisory Council of Deloitte and
Touche.  He was previously a member of the Supervisory Board of
Royal Dutch Airlines, advisory council of ABN-AMRO Bank and the
General Council of the Federation of Netherlands Industries.

In addition, Sir Robert Smith has confirmed his intention to step
down from the Board of Network Rail.  Sir Robert was appointed as
a non-executive Director in August 2002, and has made a
significant contribution to the Board's deliberations.

Ian McAllister, Network Rail Chairman said:

"I am delighted to welcome Rob den Besten to the Network Rail
Board.  He has enjoyed an impressive career and will bring real
insight to the Board's work.

"I would like to thank Sir Robert Smith for his invaluable
contribution to the first year of Network Rail's stewardship of
Britain's railway."

                      *****

Network Rail, the successor to Railtrack, has agreed to cut its
financial requirements by GBP5 billion over the next five years.

The rail operator in June said it will need GBP29.5 billion
between April 2004 and April 2009.  But due to pressure from the
rail regulator, Tom Winsor, it now consented to trimming this to
GBP24.5 billion by postponing some renewal work -- such as
replacing track -- for two years and instead increasing
maintenance.

CONTACT:  FINANCIAL DYNAMICS
           Phone: 020 7831 3113
           Jon Simmons


NORTHUMBRIAN WATER: First Day in Bourse Far from Encouraging
------------------------------------------------------------
Analysts at Merrill Lynch rated shares in Northumbrian Water
"sell," as the utility acquires full listing in the London Stock
Exchange on Tuesday.

In a research note Merrill Lynch referred to the North-East water
group's financial structure as "unsustainable."  It expects the
company to launch a rights issue within months.

Sector analyst Robert Miller-Bakewell said:  "We see a risk of a
rights issue in early 2004 which we would not expect 25%
shareholder Suez to support."  This is considering that static
revenues from water are likely to bring a 20% fall in profits
this year and Ofwat might undertake a tough price review.

He also raises concern over the utility's GBP1.7 billion debts,
taking note that Standard & Poor's has rated the debt only two
notches above junk status.

Northumbrian Water shares, floated in May at 100p, were down 3/4p
at 107p.


PEDSHIRE LIMITED: Administrators Seek Investors To Rescue Firm
---------------------------------------------------------------
Administrators for Pedshire Limited, trading as Martin Roberts,
are looking for rescuers for the Skelmersdale lighting
manufacturer, and its parent, Able Safety Systems.  Ten jobs were
lost when the company was placed in administration; another 30
are in danger of being axed if the company does not get help
soon, according to the Daily Post.

Administrators Gary Lee from Begbies Traynor blamed the company's
difficulties in recent months on the "difficult market," and the
decision of its American investor to withdraw its promised
investment into the business.

Regarding the outlook of the company, Mr. Lee said:  "The company
has only been in its present guise for a short period of time."
It will carry on trading until a new investor is found, he said.

He further indicated that having been "a profitable business in
the past," Pedshire "could still grow with the right investment."
He also expect the company to benefit from the new Enterprise Act
that aims to help companies in trouble to survive.  The Act came
into force Monday this week.


ROOM SERVICE: Publishes Accounts, Restores Trading in AIM
---------------------------------------------------------
Room Service has published its accounts for the year ended
December 31, 2002.  The accounts were posted to shareholders on
the evening of Wednesday and the restoration of trading in its
ordinary shares on AIM is expected to become effective on
September 25, 2003.

Copies of the accounts are available from John East & Partners
Limited, Crystal Gate, 28-30 Worship Street, London EC2A 2AH.

                      *****

The company's food delivery subsidiary Room Service (U.K.)
Limited, having made a loss of GBP430,000 during the year, was
put into members' voluntary liquidation in January 2003.

Room Service itself recently reported operating loss for the year
of GBP1.091 million (2001: loss GBP3.574 million) from turnover
of GBP0.017 million (2001: GBP0.991 million).


ROYAL MAIL: Says No Signs of Possible Strike in London
------------------------------------------------------
Royal Mail said that the Communications Workers Union's statement
on Tuesday night, making clear its intention to stage strike
action over London Weighting, showed that it remains out of touch
with customers and postmen and women alike.

Chief Executive Adam Crozier said: "If one thing is clear this
week, it is that there is not an appetite for strike action in
Royal Mail, in Post Office branches or in Parcelforce Worldwide.
Only four out of ten postmen and women in London supported a
strike.  In Post Office branches and in our parcels business,
it's fewer than three out of ten.  There is no majority and no
mandate for strike action."

Nationally, postmen and women voted against industrial action,
with only 28% of the workforce in favor.

"There is already a fair offer on London Weighting on the table
that puts postmen and women in the top third of the London
Weighting league table," said Mr. Crozier.

"Everyone agrees that postmen and women in London, as elsewhere,
deserve better pay.  That's why we should all concentrate on
getting people their 14.5% increase in basic pay, as well as
increases in London Weighting of between 8.6% and 12.6%.  Postmen
and women in London will be GBP50 a week better off as a result
of this deal.  We've now got one simple objective - and that's
to get everyone onto the new pay rates as soon as possible. It's
something the union should support on behalf of postmen and women
throughout the U.K.

"There is no more money to come.  Our final pay offer will cost
GBP340 million a year, on top of the GBP100 million a year extra
for our pension scheme.  A strike won't generate more money.  It
will do exactly the opposite."

Mr. Crozier said that a strike would be damaging to customer
service and customer confidence, but that robust contingency
plans were ready to make sure that disruption to Post Office
services, mail collections and deliveries is minimized, and to
keep all customers fully updated.

"Last week's ballot result has given everyone in Royal Mail the
opportunity to focus on moving forward.  It's an opportunity we
should all take," he said.

Pay and London Weighting  key points

Royal Mail's offer for postal employees will:

(a) increase Inner London Weighting by 8.6% to GBP3,784 per year
(from GBP3,484)

(b) increase Outer London Weighting by 12.6% to GBP2,667 per year
(from GBP2,368)

(The offer includes consolidation into pensionable pay of
existing supplements plus GBP300 of new money, with no link to
productivity changes)

(c) increase basic pay by 14.5% over 18 months

(d) once all the changes are introduced, deliver a new full-time
London basic pay of GBP19,437 per year (Inner - up 14.7%) and
GBP18,321 per year (Outer - up 16.6%)  a real increase of more
than GBP50 a week.

Our London pay already compares well:

(a) As well as London Weighting and regional pay supplements,
London employees have the opportunity to earn more from overtime,
allowances and supplements.

(b) Postal staff turnover is significantly lower in London than
in many areas in the Home Counties

(c) Other employers generally pay the same or less than we do. Of
course there are a few exceptions  for example the Police pay
more, but they face significant recruitment problems and very
special demands in the Capital.

(d) According to the independent Incomes Data Services Study in
2002, inner London nurses on similar pay get about GBP3,800. Most
other NHS staff got about GBP2,500 or less. British Gas paid less
than GBP3,300. Local authority staff receive between GBP1,400 and
GBP2,600. In 2002 Royal Mail paid GBP3,400 in weighting and
regional pay supplements in inner London.

Our service needs to improve in London:

(a) 1st class quality is worse for a letter posted in London than
in the rest of the U.K., despite easier geography and a high
proportion of mail going to other London addresses.

(b) Office productivity, with some exceptions, remains poor in
London, with many London units at the bottom of national league
tables.

(c) Previously agreed changes have yet to be properly introduced.

A letter sent by Royal Mail's Chairman, Allan Leighton, to Royal
Mail employees earlier this week:

Dear XXXX

This last week has been difficult for everyone.  But what matters
now, is that we all pull together to make this company, strong,
successful and profitable -- so we can all share in success, and
feel confident about our futures.

So what happens now?

(a) Firstly, we want to get you onto GBP300 per week as soon as
possible. That's why we're going to let you get on with the
changes locally. Make your savings and hit your local targets and
we'll pay you the GBP26.28.  Hit the targets for four consecutive
weeks and we'll make it pensionable.

(b) Secondly, we're going to press ahead with the voluntary
redundancies.  We've already had a huge response to our
preference exercise and we're going to let 4,500 people, who want
to leave the business, go on generous redundancy terms.

(c) Thirdly, as promised, you will get the 3% pay rise from
October 6, 2003.

Adam, Elmar and I came here to help turn this business around.
It's about doing the right thing for our people, our customers
and the business as a whole.  We've started something very
important -- and with your help we'll see it through.

So ... the 3% will be in your October pay ... you can move ahead
with your revisions ... the GBP26.28 is yours if you hit the
local targets ... and pensionable after four consecutive weeks.

Let's crack on!

Kind regards,

Allan Leighton
Chairman

A letter sent earlier this week from Tony McCarthy, Group
Director, People and Organisational Development, to Dave Ward,
the CWU''s Deputy General secretary.

22 September 2003

148 Old Street
London
EC1V 9HQ

Phone: 020 7250 2129
Fax: 020 7250 2115

Dave Ward
Deputy General Secretary Communication Workers' Union
150 The Broadway
LONDON
SW19 1RX

Dear Dave

Further to your letter dated 19 September and following on from
our meeting on Thursday 18 September where we met to discuss next
steps after the result of the union's ballots for strike action.
During the meeting we discussed the following issues:

(a) Pay and Major Change
(b) London Weighting
(c) Joint Behaviors and Standards
(d) IR framework

I thought it might be helpful if I confirmed in writing the
contents of the meeting and the actions discussed.

Pay and Major Change
We have been negotiating elements of the Major Change section for
over two years.  We commenced discussions on the pay element in
June and these negotiations are now concluded.  As I said during
the meeting I am keen that the union sign the agreement and work
with us to deploy the change, in order that our people can get
the GBP300 in their hands as soon as possible.

London Weighting
Throughout our negotiations I have made it clear that the
business would not be able to afford anymore than the GBP340
million on offer.  As I repeated on Wednesday this position has
not changed, we do not have any additional money to meet the
union's claim for a further increase in London Weighting.  This
situation will not change if the union decides to take industrial
action; there is no more money.

Joint Behaviors and Standards
During the meeting I shared with you a document identifying the
behaviors and standards I would expect both parties to observe
when working together.  It is important that representatives from
both Royal Mail and the CWU demonstrate a professional and
respectful approach on all occasions and we, therefore, need to
discuss and agree this approach.  We all know that both sides
have some way to go before this is achieved.

There has been much speculation about the company de-recognizing
the union.  For clarity the company will not de-recognize the
union.

IR Framework
In terms of the IR framework, this agreement was produced nearly
ten years ago and is out of date and no longer fit for purpose.
As I explained on Wednesday I will be sharing with the union a
proposed agreement in the next few weeks. I would like both
parties to discuss this proposition, and jointly look at
opportunities for modernizing our ways of working.  To
demonstrate Royal Mail's commitment to a new professional
relationship I will share with the union the nominated IR
interfaces for all businesses.  I would also like to discuss with
you the re-engagement in partnership.

At the conclusion of Wednesday's meeting you explained that the
unions Postal Executive would be discussing Royal Mail's offer
and providing a formal response.

I look forward to hearing from you.

Yours sincerely

Tony McCarthy
Group Director, People & Organizational Development

CONTACT:  ROYAL MAIL
           148 Old Street
           London
           EC1V 9HQ
           http://www.royalmail.com




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

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA.  Larri-Nil
Veloso, Ma. Cristina Canson, and Laedevee Gonzales, Editors.

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

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