/raid1/www/Hosts/bankrupt/TCREUR_Public/031117.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

            Monday, November 17, 2003, Vol. 4, No. 227


                            Headlines

F R A N C E

ALSTOM SA: First-half Net Income EUR624 Million Below Par
ALSTOM SA: Wins EUR250 Million Supply Contract in Sudan
METALEUROP NORD: SITA Hired to Decontaminate Noyelles Site
MOULINEX SA: Antitrust Regulator Finally Clears Takeover


G E R M A N Y

COMMERZBANK AG: Deutsche Telekom Reacquires T-Online Shares
DEUTSCHE TELEKOM: Hits Debt-reduction Targets Ahead of Schedule
JENOPTIK AG: Group Income for First Nine Months Negative
MOLOGEN AG: Key Indicators Improve, But Figures Remain Negative
PROSIEBENSAT.1 MEDIA: Third-quarter EDITDA Up 83% Year-on-year


I R E L A N D

DESMONDS: Closes Last Manufacturing Plant in Northern Ireland


I T A L Y

ALITALIA SPA: Govt Bolsters Bid for Tie-up with KLM, Air France
FIAT SPA: Family Fully Behind Rehab Plan, Says Agnelli Patriarch
PARMALAT FINANZIARIA: Remains on S&P's CreditWatch Negative


L U X E M B O U R G

MILLICOM INTERNATIONAL: Consent Solicitation for Notes Amended


R U S S I A

ROSTELECOM: Ratings Raised to 'B' on Improved Debt Profile


S W I T Z E R L A N D

ABB LTD.: Signs Railway Parts Supply Deal with Bombardier
ASCOM: Plan to Boost Capital Via Share Issue Underway


U N I T E D   K I N G D O M

BASE GROUP: Divests Underperforming Soccer Businesses
BNFL: Chairman Collum Bares Plan to Step down Next Year
BRITISH ENERGY: Issues Output Statement, Update on Power Outages
CANARY WHARF: Franklin Mutual Advisors Backs Brascan Bid
CORUS GROUP: Open Offer Prospectus Now Available at UKLA

HARTLEPOOL FABRICATIONS: Cordell Acquires Part of Operation
IMPERIAL CHEMICAL: Falling Profit Triggers Revamp of Starch Biz
INVENSYS PLC: Posts GBP149 Mln Loss after Corporate Exceptionals
MARCONI CORPORATION: Cuts 1st-half Operating Loss to GBP149 Mln
NETWORK RAIL: Dismisses 40 Managers in Scotland

RANK GROUP: Acquires New Multi-currency Credit Facility
REGUS PLC: Exits Creditor Protection; Launches Rights Issue
ROYAL MAIL: Profit Does Not Mean Turnaround, Says Chairman
SOMERFIELD PLC: Sales Growth Slows Down this Year
YELL GROUP: Posts GBP89.2 Million After-tax Loss


                            *********


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


ALSTOM SA: First-half Net Income EUR624 Million Below Par
---------------------------------------------------------
Alstom released its first-half results late last week.  These are the
highlights:

(a) Orders received: EUR7.4 billion, down 23% on a comparable
    basis

(b) Sales: EUR8.9 billion, down 9% on a comparable basis

(c) Operating margin: 1.5%

(d) Net income: -EUR624 million

(e) Free cash flow: -EUR674 million

(f) Economic debt reduced to EUR4.5 billion

Progress on action plan

(a) EUR2.5 billion proceeds from disposals secured

(b) Financing package announced September 22 to strengthen the
    Group's financial structure, with positive feedback from
    customers

(c) Significant progress made on GT24/GT26 gas turbines issue

(d) Operational performance: restructuring accelerated with
    cost-reduction programs underway

Commenting on the results Patrick Kron, Chairman & Chief Executive Officer,
said: "Alstom's results for the first half of fiscal year 2004, though
unsatisfactory, are generally in line with previous guidance.

"Our low level of order intake mainly reflects weak demand for new power
equipment, the impact of customer concerns surrounding Alstom's past
financial position and difficulties experienced during the period in
obtaining contract bonds.  Our income was hit by additional charges on some
U.S. contracts and a significant increase in financial and restructuring
charges.

"The financing package announced on September 22, 2003 is designed to
strengthen substantially the Group's financial structure and we are now
seeing positive reactions from customers, as illustrated by EUR700 million
in orders having been secured in October by our Transport Sector.  Despite
difficult circumstances, we managed during the first half to win good orders
such as trams and metros in Europe, gas turbines in Algeria, a combined
cycle plant in Bahrain, Power service in the U.S. and Brazil and a major
utility boiler in China.

"We also made significant progress on the action plan announced last March
designed to improve Group profitability and cash generation, to close out
past operational issues and reduce our level of debt.  To date we have
secured EUR2.5 billion proceeds from disposals, including our small and
medium-sized industrial turbines and our transmission & distribution
activities; we continue to make encouraging headway on the GT24/GT26 issue,
while major restructuring and cost-reduction programs are underway worldwide
to drastically cut our cost base.

"My priority, and that of Alstom's management team, remains the continued
full implementation of this action plan.  The September financing agreement
will be submitted for approval at a Shareholders' Meeting on November 18,
and will be fully implemented as soon as possible thereafter.  It will
substantially increase our equity base through a capital increase and issue
of bonds redeemable in shares, while providing the Group with adequate
medium to long-term financing and on-going liquidity and contract bonding
coverage.  I believe the financing agreement is also a strong signal to the
market that Alstom is back in normal business, not only with a commitment to
meeting its operational improvement objectives, but above all its customers'
needs and expectations."

To view full financial report:
http://bankrupt.com/misc/Alstom_First_Half_Results_2004.pdf


ALSTOM SA: Wins EUR250 Million Supply Contract in Sudan
-------------------------------------------------------
Alstom has just been awarded a contract by the Ministry of Irrigation and
Water Resources of the Republic of the Sudan to supply the
electro-mechanical equipment for the Merowe Dam Project, located on the Nile
River.  The value of the contract is in excess of EUR250 million.

Alstom's scope of supply includes 10 hydro turbines and generators, each
with an output of 125 MW, the balance of plant, control system and
engineering.  The scope also includes erection and commissioning.  One of
the key factors in Alstom winning this contract has been its unrivalled
experience in the field of hydropower.  This new contract confirms Alstom's
No. 1 position in this worldwide market.

This contract marks a milestone in the economic progress of Sudan.  On
completion of this project, the power generation capacity will be more than
doubled.  The project, due to commence in December 2003 will be executed
over a period of five years and will involve several engineering and
manufacturing units in Alstom including Brazil, Switzerland, France and
Germany.

Philippe Soulie, President of Alstom's Power Environment Sector said,
"winning this contract represents a major success for us. At this particular
point in Alstom's recovery plan, we regard this award as a strong and
encouraging demonstration of confidence on the part of our Customer and we
are proud to be associated with this prestigious project"


METALEUROP NORD: SITA Hired to Decontaminate Noyelles Site
----------------------------------------------------------
The Bethune District Court has chosen SITA, a subsidiary of SUEZ
Environnement, to take over the Metaleurop Nord site at Noyelles-Godault in
the Nord Pas de Calais region of France.  SITA's project, AGORA, will
decontaminate and reconvert the 88-acre, former Metaleurop Nord foundry
site.

Specialized in global waste services management and soil decontamination,
SITA conceived AGORA as a community-driven restoration project, which blends
respect for the environment with achieving a long-term economic reconversion
of a heavily polluted industrial site.

Decontamination and site reconversion in 3 phases

Over the next few weeks, SITA will implement the AGORA project's three main
stages:

Phase 1. Site decontamination

This first phase is a real technical challenge since the Metaleurop Nord
site is the most contaminated industrial site in France.  It will call upon
the entire spectrum of SITA's expertise and of its subsidiaries specialized
in soil decontamination and treatment.  The cost of decontamination will
amount to EUR22 million and will be financed by the French government, the
Region, and the resale of site equipment and materials.

Phase 2. Economic reconversion

Upon completed decontamination of the first parcels (in 6 to 18 months),
eco-industrial units can be installed:

(a) A unit for dismantling electronic equipment that has reached
    the end of its useful life;

(b) A wood, plastic, and tyre recovery platform;

(c) A recycling center for non-hazardous industrial waste; and

(d) A composting facility.

These eco-industrial and recycling activities will create 190 permanent
jobs.

Phase 3. Growth initiatives

This last phase will entail the establishment of enterprises concerned by
environmental and solidarity initiatives.  Local assets, companies and
knowledge will be paired with innovative environmental projects.  Thanks to
the mobilization of SITA's local partners (Envi Mat, Activ-coeur
Environnement, Espace Biotique, etc.) this "regional AGORA" will promote the
return of jobs, and preserve the site's history.  Over time, nearly 230 new
jobs will be created.

Patrice Dauvin, CEO for SITA France commented: "SITA's staff [were] able to
meet the technical challenge by providing the very best environmental
solution in the face of tough competition.  With the decontamination and
reconversion of Metaleurop Nord, our teams will win the race to the finish,
harnessing all their expertise for the benefit of this historic site."

                              *****

The Bethune County Court placed Metaleurop Nord under compulsory
administration in January after parent Metaleurop S.A. announced it would
not re-inject fresh capital into the subsidiary.  The company has been
producing lead and zinc for over a century now and the site at
Noyelles-Godault is by far the most polluted in the country, including an
area of 45 square-kilometers heavily contaminated by heavy metals.


MOULINEX SA: Antitrust Regulator Finally Clears Takeover
--------------------------------------------------------
The European Union gave its approval to the sale of troubled appliance
maker, Moulinex, to rival SEB S.A. on Tuesday, according to the Associated
Press.

The antitrust regulators, which reviewed competitive consequences of the
deal for the second time, ruled that the merger will not jeopardize
competition in Britain, Finland, Ireland, Italy, and Spain.

A French court allowed SEB's management takeover in 2001.  In January 2002,
the Commission granted conditional approval to the deal, but required SEB to
grant licenses to the Moulinex brand for five years to its competitors in
nine of the 15 E.U. nations.  SEB was also not to use the Moulinex brand for
a further three years after those licenses expired.

But rival Royal Philips Electronics N.V. and French Babyliss appealed the
approval of the merger to the E.U.'s European Court of Justice.  The
Commission subsequently annulled the merger decision in April in those five
E.U. countries where SEB failed to grant Moulinex license agreements.  But
SEB re-filed its application, and the Commission opened a review into the
transaction in May.

Moulinex has US$731 million in debt.


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


COMMERZBANK AG: Deutsche Telekom Reacquires T-Online Shares
-----------------------------------------------------------
Under the terms of the contractual agreement between Deutsche Telekom and
Commerzbank, Deutsche Telekom took over the two-percent stake held by
Commerzbank in subsidiary, T-Online International AG.

This is a package of approximately 24.9 million, which Commerzbank took over
in the year 2000.  The takeover of the shares in 2000 included an obligation
to offer the T-Online International shares to Deutsche Telekom if
Commerzbank should intend to sell them.

The transaction is being concluded based on an average share price, in
accordance with the terms of an earlier agreement.  Deutsche Telekom is thus
acquiring the shares at a price lower than the current share price, and
Commerzbank is making a profit on the sale of these shares.

CONTACT: DEUTSCHE TELEKOM AG
         Corporate Communications
         Phone: +49(0) 228 - 181 49 49


DEUTSCHE TELEKOM: Hits Debt-reduction Targets Ahead of Schedule
---------------------------------------------------------------
The Deutsche Telekom Group continued its successful growth course in the
third quarter of 2003.  The debt reduction target for the full 2003
financial year was achieved at the end of the third quarter ahead of
schedule -- meaning that the "6+6" program can be concluded earlier than
planned.  The free cash flow before dividend payment in the third quarter of
2003 increased quarter-on-quarter by almost 75% to approximately EUR3.4
billion; adjusted net income excluding special factors almost tripled to
EUR463 million.

Following a reduction of EUR8.1 billion in the first half of 2003, net debt
was decreased by a further EUR3.8 billion in the third quarter of 2003.  The
reduction of net debt in the third quarter of 2003 was mainly a result of
positive free cash flow, exchange rate effects, and the sale of additional
non-core activities, in particular real estate.  Compared with the third
quarter of 2002, net debt has decreased by a total of EUR15.1 billion to
EUR49.2 billion.  A reduction of almost EUR12 billion has been achieved
since the end of 2002.  Deutsche Telekom's debt reduction target for the
full 2003 financial year -- net debt of between EUR49.5 billion and EUR52.3
billion -- has thus been achieved ahead of schedule.

"We have achieved the turnaround -- earlier than we had planned or
expected," said Kai-Uwe Ricke, Chairman of the Board of Management of
Deutsche Telekom AG, on Thursday in Bonn.  "Yet this certainly does not mean
that we have passed the finish line.  This was the first step.  The second
will be to see to it that the company again generates an appropriate return
on capital."

In the first nine months of 2003, Group EBITDA increased by 25.6 percent, or
EUR2.9 billion, to EUR14.3 billion.  Adjusted EBITDA in the first three
quarters increased by 15.3% to EUR13.8 billion.  In the third quarter of
2003, the Group generated adjusted EBITDA of approximately EUR4.7 billion.
This indicator of the Group's operating performance has increased for six
consecutive quarters.  The largest contribution to adjusted EBITDA growth in
the third quarter of 2003 was made by the T-Mobile division, whose adjusted
EBITDA increased by EUR0.5 billion year-on-year.  Excluding the effect of
exchange rate fluctuations, adjusted Group EBITDA increased by 19% in the
first nine months of this year to EUR14.2 billion.

In the same period, the adjusted EBITDA margin improved to 33.4% compared
with 30.5 percent in the first nine months of 2002.  This development was
attributable to high-quality growth in the customer base as well as synergy
effects and economies of scale.  At T-Systems, the considerable progress
achieved in cost savings contributed to the increase in adjusted EBITDA,
while T-Com succeeded in stabilizing adjusted EBITDA at a high level in
spite of a decline in revenue.  T-Online improved profitability through the
continued optimization of network utilization.

Net income increased by EUR26.1 billion year-on-year to EUR1.6 billion in
the first three quarters of 2003.  This increase was attributable in part to
the improvement in results from ordinary business activities, which was
reduced in the same period last year by negative special factors totaling
EUR22.3 billion as a result of the strategic review.  In addition, the
increase in results from ordinary business activities clearly reflects the
progress made with the Group's EBITDA.  Excluding special factors, the Group
recorded net income of EUR0.7 billion in the first nine months of this year
compared with a net loss of EUR4.2 billion in the same period last year.  In
the third quarter of 2003 alone, net income excluding special factors almost
tripled to EUR463 million.  The Deutsche Telekom Group is thus a step closer
to achieving its goal of breaking even this year.

Successful completion of the "6+6" program Free cash flow before dividend
payments amounted to EUR7.4 billion in the first nine months of 2003,
approximately EUR2.7 billion higher than in the same period last year.  This
clear increase is mainly attributable to the increase in cash generated from
operations and the reduction of approximately EUR1.8 billion in investments
in property, plant and equipment and intangible assets.  With free cash flow
before dividend payment totaling EUR7.6 billion since September 30, 2002,
the target set in November of last year of generating EUR5.5 billion to
EUR6.0 billion in free cash flow for the fourth quarter of 2002 and the full
2003 financial year has been exceeded by far.

Proceeds of approximately EUR6.3 billion have been generated or agreed for
the fourth quarter of 2003 through the sale of non-core assets since the
initiation of the "6+6" program.  These proceeds also contributed to
reducing Deutsche Telekom's debt. As the debt reduction target has been
achieved ahead of schedule, the "6+6" program is now completed.

The main revenue drivers in the Group in the third quarter of 2003 were,
once again, the T-Mobile and T-Online divisions.  Both divisions increased
their revenue figures further by healthy double-digit percentages.  The net
revenue of the Group in the third quarter of 2003 increased by approximately
4.9 percent year-on-year to almost EUR14.1 billion.  Revenue in the first
nine months of 2003 increased by 5.4% year-on-year to EUR41.3 billion.
Adjusted to exclude exchange rate fluctuations, organic growth for the first
three quarters of 2003 would have been 8.7% with net revenue of the Group of
EUR42.6 billion.

With an increase of 19.5% to over EUR5.5 billion in the third quarter of
2003, revenue generated outside Germany also developed very positively.
Despite continued negative currency translation effects, revenue generated
outside Germany accounted for 39.2% of total revenue, compared with 34.4% in
the same period last year.

"The last 12 months have been a particularly successful period for the
company.  The emphasis that we placed on restructuring, on deleveraging and
on profitable growth has allowed us to regain our operating and financial
flexibility.  We are now in a position where we can look to the future with
confidence", said Dr. Karl-Gerhard Eick, Chief Financial Officer.

For further information click:
http://www.telekom3.de/en-p/medi/2-pr/2003/11-n/031113-qu-results-3-2003-ar.html


JENOPTIK AG: Group Income for First Nine Months Negative
--------------------------------------------------------
The Jenoptik Group achieved EUR933.0 million in sales over the first nine
months of 2003, up 10% from the same period in 2002 (EUR847.7 million).  In
2002, the Jenoptik Group EBITDA, EBIT and income for the period included
over EUR30 million from the sale of DEWB shares.  Adjusted for this income,
the EBITDA, EBIT and income for the period fell only slightly from last
year's nine-month totals.  The Jenoptik Group EBITDA amounted to EUR1.7
million, the EBIT to -EUR26.6 million (EUR18.0 million); and the Group
income for the period to -EUR38.8 million (EUR1.2 million).

The Jenoptik Group's order intake of EUR1,477.1 million for the period
roughly matched the nine-month figure a year ago (EUR1,487.5 million).  The
Jenoptik Group reached a new all-time order backlog high, nearing the
three-billion-euro threshold for the first time at EUR2,919.5 million as of
September 30, 2003 (Sept. 30, 2002: EUR2,505.0 million).

Jenoptik Group sales in 2003 are expected to rise considerably over 2002,
returning to around EUR2 billion.  The Clean Systems business division, with
just under EUR1.7 billion in projected sales for 2003, is acting as the
driving sales force within the Group.  Due to project delays in Asia, the
EBIT margin, however, is expected to fall in 2003 somewhat below the range
of 1.8% to 2.5% originally projected early this year, as reported in the
half-year interim report.  This presupposes, however, that all other
projects are fully paid and accounted for within deadlines.

Photonics business division sales are expected to rise to between EUR280
million and EUR300 million with an EBIT margin of between 9 and 10%.

In TEUR                9M 2003    9M 2002    Q3 2003    Q3 2002
Sales                  933,000    847,713    267,744    283,692
EBIT                   -26,602    17,997*    -13,378     -1,531*
Income for the period  -38,822     1,185*    -18,753    -11,923*
*incl. income from the sale of DEWB shares

                              *****

Fitch Ratings assigned Jenoptik AG's EUR150 million seven-year senior notes
a final rating of 'BB', in line with the 'BB' Senior Unsecured rating
assigned to Jenoptik on September 26, 2003.  The rating action follows a
review of the final offer documents confirming information already received
when Fitch assigned the expected rating.

The notes carry a coupon of 7.875% and are guaranteed by Jenoptik Photonics
AG and Jenoptik Laser, Optik, Systeme GmbH, both of which are 100% owned by
Jenoptik.  Jenoptik concluded the issue of the notes on November 4, 2003.
The refinancing plan announced by Jenoptik in September 2003, which includes
the issuance of 8.14 million shares and the above-mentioned notes, will
strengthen the company's capital structure and improve its debt maturity
profile, according to Fitch.

CONTACT:  JENOPTIK AG
          Investor Relations
          Steffen Schneider
          Phone/Fax: +49(3641)-652290/2157
          Home Page: http://www.jenoptik.com


MOLOGEN AG: Key Indicators Improve, But Figures Remain Negative
---------------------------------------------------------------
In the first nine months of 2003, the MOLOGEN Group reduced its deficit by
approximately EUR1.1 million, or 31%, to -EUR2.5 million compared with the
first nine months of 2002.  EBIT was reduced to the same extent to -EUR2.6
million.  Earnings per share improved by 31% from -EUR0.71 to -EUR0.49.

Outflow of liquidity was significantly reduced in comparison to the
reference period: from EUR2.9 million in the reference period of the
previous year to EUR1.7 million in the first nine months of 2003.

On September 30, 2003, MOLOGEN had a financial holding of EUR3.2 million.
Sales revenues from other services and products for the first nine months of
2003 were down to EUR0.3 million (EUR0.6 million proforma in the reference
period).

In the period under review, MOLOGEN implemented writedowns and value
adjustments on existing debt claims from past years.  These one-off expenses
of EUR0.5 million had no impact on liquidity and are taken into account in
the above figures.  Adjusted by these one-off expenses, negative EBIT
decreased by 44%.

Outlook

The sales revenues for 2003 will be between EUR0.4 million and EUR0.5
million (previous year's adjusted figure: EUR0.6 million), while EBIT will
equal between -EUR3.2 million and
-EUR3.5 million (previous year proforma: -EUR4.5 million).

MOLOGEN achieved considerable cost reductions in 2003 and successfully
reduced the outflow of funds.  These measures did not affect the performance
of the main function areas.  Business development was considerably
strengthened.  With strict expenditure and costs controls in addition,
MOLOGEN presents itself as an innovative and competitive partner for
pharmaceutical companies.  The focus for 2004 is expanding business
relationships, which is expected for the first time to guarantee MOLOGEN
substantial earnings from development services.

Encouraging provisional data on dSLIM from Phase 2 study

On July 3, 2003, MOLOGEN announced the conclusion of a clinical Phase 2
study, in which the safety of its dSLIM immunomodulator was successfully
tested in combination with chemotherapy in patients with metastatic
colorectal carcinoma.

This puts MOLOGEN in a position to test combinations of dSLIM and its MIDGE
DNA transfer vectors in further clinical studies on renal cell and
intestinal carcinoma as well as other types of frequently occurring
carcinomas.  MOLOGEN's preparations for a corresponding clinical Phase 1/2
study are well advanced.

One of the most important conferences on cancer takes place in December in
the USA, organized by the American Society of Hematology (ASH).  Scientists
from MOLOGEN will be there to make two presentations and to deliver the
results obtained from using the MIDGE(R) and dSLIM key technologies.  At the
subsequent conference of the International Society of Cancer Gene Therapy
(ISCGT), MOLOGEN will give three presentations and one lecture.

Clinical trial of a vaccine against leishmaniasis in dogs goes ahead as
planned

The results are expected in Q4 of 2004.  In Q3, MOLOGEN's German-Spanish
development team commenced the preparation for a further field study with
dogs planned for the middle of 2004 and a few weeks ago registered a patent
on the combination of certain components (antigens) of the DNA vaccine used
in the current trial.

MOLOGEN has contacted pharmaceutical companies, which are interested in
participating in the field study.  There is still no vaccine against
leishmaniasis available anywhere in the world.

To carry out these further studies, greater amounts of the MIDGE vectors
patented by MOLOGEN are required.  As a result, the expansion of production
capacity under clean-room conditions in Berlin is currently planned.  The
processes required to produce more than ten times the amounts hitherto
produced in one cycle have already been developed and will be verified in
the months to come.

Merger effective

The merger of the 100%-owned subsidiaries Mologen GmbH and Soft Gene GmbH
into Mologen Holding AG became valid on 2003-09-10.  In October, the change
of name to MOLOGEN AG decided at the Annual General Meeting was entered in
the Commercial Register.

The substantial simplification of the company structure will bring about
further reductions in administration costs and increased transparency for
investors.

These measures have no effect on the published consolidated financial
statements.

For the detailed report please visit our website http://www.mologen.com

About MOLOGEN

MOLOGEN is focused on using its proprietary DNA technologies in the creation
and development of treatment for high-unmet-need illnesses.  Included is
MOLOGEN's unique and patented MIDGE technology platform.  Based on this
platform, MOLOGEN is developing DNA-based vaccines and therapeutics to
prevent or cure a wide range of diseases. MOLOGEN is currently in the
process of approaching biotechnology and pharmaceutical companies in order
to form development and commercial alliances to bring its products to the
market more quickly and efficiently.

Going public in 1998, MOLOGEN was one of the first German biotechnology
companies to be floated on the stock exchange.  The MOLOGEN shares are
traded on the Geregelter Markt in Frankfurt.

CONTACT:  MOLOGEN AG
          Matthias Reichel
          E-mail: investor@mologen.com
          Phone: +49 (0)30 - 85 75 76 -0
          Fax: +49 (0)30 - 85 75 76 -50
          Home Page: http://www.mologen.com


PROSIEBENSAT.1 MEDIA: Third-quarter EDITDA Up 83% Year-on-year
--------------------------------------------------------------
The ProSiebenSat.1 Group boosted its operating income significantly in the
third quarter of fiscal 2003.  EBITDA at the Group level improved EUR31.8
million from the same quarter last year, from -EUR11.8 million to EUR20.0
million.  Group revenues were up 3% from July to September, to EUR362.7
million.  Thus, Germany's largest television corporation showed rising
revenue during the quarter for the first time since fiscal 2000.  Group
pre-tax income improved from -EUR53.6 million to -EUR8.8 million, while the
consolidated loss narrowed from -EUR49.3 million to -EUR6.9 million.  The
third quarter is traditionally the weakest period in the seasonal television
business.

"The gratifying quarter results for the ProSiebenSat.1 Group indicate that
we've been able not just to continue the second quarter's uptrend, but
actually amplify it considerably," said ProSiebenSat.1 Media AG CEO Urs
Rohner.  "Our cost-cutting efforts and the systematic optimization of our
organization over the past few months are beginning to pay off sustainably.
Even in the long-term we will profit from having reduced our cost base
substantially."

In the first nine months of the year, the ProSiebenSat.1 Group boosted
EBITDA by 6.4% to EUR78.1 million.  Group pre-tax income improved
from -EUR28.3 million to -EUR6.4 million.  EBIT was EUR50.3 million,
following on EUR34.9 million last year.  The revenue drop caused by the
protracted crisis in the advertising industry also slowed substantially at
the Group level.  Where Group revenues were down 10.9% for the first half of
2003, the decline from January to September shrank to only 7.1%.  Group
revenues for the first nine months of the current year were EUR1.241
billion, following EUR1.336 billion for the same period the year before.
Cash flow calculated by DVFA/SG methods was EUR734.3 million, and DVFA/SG
earnings per share were EUR0.01, following -EUR0.25 for the first nine
months of 2002.

Rigorous cost management continues

The ProSiebenSat.1 Group continued its rigorous cost management in the third
quarter of 2003. Programming and material costs were down EUR41.7 million,
or 14.6%, from the comparable quarter last year, to EUR244.5 million.  Other
operating expenses were down by 9.3%, to EUR55.6 million.  Other operating
income was EUR7.0 million, off EUR30.9 million from the comparable period
last year.  This drop is largely the consequence of the first consolidation
of SevenOne Intermedia, the deconsolidation of CM Community Media and the
early redemption of Eurobonds in 2002.  In all, programming and material
costs were down 11.8% in the first nine months of 2003, to EUR875.5 million.
Other operating expenses were EUR161.8 million, following on EUR185.9
million.

Programming assets up from previous year

Programming assets grew eight% from the same period last year, to EUR1.232
billion.  With a share of 66% of total assets, programming is the
ProSiebenSat.1 Group's most important asset item.  Scheduled depreciation,
at EUR665.3 million, was down 8.3% from last year's comparable figure.
Programming investments for the first nine months of 2003 rose 25.1% against
the same period last year, from EUR720.3 million to EUR901.4 million.

Net financial debt reduced ten%

The ProSiebenSat.1 Group reduced its net financial debt to EUR850.7 million
in the first nine months of 2003.  This figure is 10.1% below the comparable
period for 2002.  Bank debt was reduced 33.1%, to EUR231.2 million.  The
previous year's equivalent figure was still EUR345.7 million.  In all, the
ProSiebenSat.1 Group's liabilities, at EUR1.152 billion, were down 4.8% from
the previous year's EUR1.210 billion.  The equity ratio was approximately
33%.

Personnel expenses down about five percent

As part of its cost-cutting measures, the ProSiebenSat.1 Group has generally
foregone any salary increases for 2003.  In the first nine months of fiscal
2003, personnel expenses totaled EUR154.4 million, compared to EUR162.2
million for the same period last year - a 4.8% drop.

As of the September 30, 2003, reporting date, the ProSiebenSat.1 Group had
2,878 employees.  This is equivalent to a decline of 9.4% from the same
period last year.  The number of full-time equivalent jobs in the Television
segment was down to 1,707 - 12.5% less than as of the same date last year.
The staff of the Services segment was down 3.4% to 1,068.  The figure for
the Merchandising segment was down 11.9% to 104.  The average age of all
employees was 34.

ProSiebenSat.1 Group improves audience share

In the first nine months of 2003, the ProSiebenSat.1 Group stations managed
to increase their combined share of the highly desirable 14-to-49 audience
by 0.8%age points against the first nine months of 2002, to 28.7%.  Among
viewers over age three, the group's market share was 21.7%.  Sat.1 achieved
a market share of 11.3% from January to September 2003 - a gain of 0.3%age
points from the same period last year.  ProSieben made especially
substantial gains in audience share during September and October.  With a
12.4% share among the 14-to-49 group, the station's performance in September
was up 1.6%age points from the previous month.  In October, ProSieben earned
a share of 12.5%.  In all, ProSieben's share of the 14-to-49 audience was
11.9% for the first nine months, and thus at the same level as last year.
Kabel 1's share for January through September was 4.9%, down 0.1%age point
from the same period last year.  News channel N24, whose ratings have been
reported only since January 1, 2003, earned a share of 0.6% among the
14-to-49 target-audience in the first nine months of the year.  Despite its
lower technical reach, N24 caught up with its major competitor n-tv among
the 14-to-49 audience for the first time in September and October.

Television: Revenue and income improve in third quarter

In Television, its core business, the ProSiebenSat.1 Group reported
quarterly improvements in both revenue and income for the first time in 30
months.  From July to September 2003, the broadcasting family logged
revenues of EUR351.9 million - 4.1%, or EUR13.8 million, more than the same
quarter last year.  The multimedia company SevenOne Intermedia, which has
been fully consolidated as of September 2002, has contributed substantially
to this increase in revenues.  Operating income in the Television segment
for the same period improved 86.5%, from
-EUR29.7 million to -EUR3.6 million.

In the first nine months of 2003, revenues in the Television segment were
EUR1.210 billion -- a drop of roughly six% from the previous year's period.
Externally generated revenues were EUR1.199 billion.  Despite the lower
revenues, operating earnings improved from -EUR14.7 million to EUR0.9
million.

Sat.1 shows first positive EBITDA since 2000 in third quarter
Sat.1 continued to improve its performance.  For the first time since 2000,
the station showed a positive EBITDA, amounting to EUR0.5 million.  EBITDA
for the same quarter last year had been -EUR39.7 million.  Revenues from
July to September 2003 rose from the EUR139.4 million of last year's third
quarter to EUR149.9 million.  This represents a gain of 7.5%.  Rigorous cost
management improved pre-tax income substantially, from
-EUR42.7 million to -EUR3.0 million.

All in all, during the first nine months of 2003 Sat.1 generated revenues of
EUR523.1 million, compared to EUR543.3 million for the same period last
year.  The station's pre-tax income showed a substantial improvement, to
EUR-8.0 million.  The pre-tax loss for the first nine months of 2002 had
been -EUR115.6 million. For the first nine months of this year, Sat.1 can
point to a positive EBITDA of EUR2.8 million, following last year's -EUR98.8
million.

ProSieben boosts quarter profit to EUR19.5 million

Station ProSieben's performance still suffered from the ongoing weakness of
the advertising market.  The station booked revenues of EUR138.9 million for
the third quarter, following on EUR146.8 million for the same period of
2002.  Despite the lower revenue, the station improved its pre-tax income
substantially, from prior year's EUR8.4 million to EUR19.5 million.  EBITDA
grew from EUR7.7 million to EUR19.5 million.

All in all, during the first nine months of 2003 ProSieben generated
revenues of EUR480.2 million, as compared to EUR559.3 million.  Pre-tax
income declined from EUR135.9 million to EUR82.0 million.  EBITDA reached
EUR80.3 million, following EUR133.0 million in the same period the previous
year.

Third-quarter revenues and earnings up at Kabel 1

Station Kabel 1 generated revenues of EUR38.5 million in the third quarter
of 2003 -- up 6.4% or EUR2.3 million from the same quarter the year before.
Pre-tax income improved by EUR5.3 million, to reach -EUR1.9 million.  EBITDA
was -EUR2.1 million, following -EUR7.0 million in the same quarter the
previous year.

In the first nine months of 2003, Kabel 1 generated revenues of EUR132.8
million, compared to EUR138.8 million last year.  Despite the revenue drop
of EUR6.0 million, the station improved its pre-tax income for January to
September 2003 from -EUR1.0 million to EUR4.4 million.  EBITDA grew from
EUR0.9 million to EUR3.9 million.

N24 still performing as projected

News channel N24 generated third-quarter 2003 revenues of EUR17.8 million,
following EUR23.1 million for the same quarter the year before.  Revenues
for the first nine months of 2003 were EUR50.8 million, compared to EUR70.2
million for the same period last year.  The drop is solely the result of
lower internally generated revenues because of substantial cost cuts in news
production, which benefited stations Sat.1, ProSieben and Kabel 1.  Even so,
pre-tax income for the third quarter of 2003 improved 74.4% to -EUR2.0
million, following the comparable period's -EUR7.8 million.  EBITDA
was -EUR1.6 million, following -EUR7.3 million.  From January to September
2003, N24 showed a pre-tax result of -EUR15.2 million.  The figure for the
comparable period of 2002 was -EUR22.6 million.  EBITDA was
-EUR13.7 million, after -EUR20.5 million.

Transaction television: Revenues and earnings grow

ProSiebenSat.1 Media AG holds 48.4% of Euvia Media AG & Co. KG. With Neun
Live and sonnenklar tv, Euvia operates two successful stations that are
largely independent from advertising revenues.  Up to September 30, 2003,
Euvia Media generated consolidated Group revenues of EUR69.8 million,
compared to EUR38.4 million the year before.  EBITDA grew from -EUR5.1
million to EUR16.7 million.

Merchandising: Improved outlook for the fourth quarter

MM MerchandisingMedia is the Merchandising unit of ProSiebenSat.1 Media AG.
This subsidiary markets the company's own media brands, such as logos and
television programming (including "Popstars - Das Duell" and "Star Search"),
and also acts as an autonomous licensing and service agency.  Operations
suffered especially severely from the slump in the music industry and from
market consolidation.  As a consequence, many recording companies did
without cooperative ventures with the media.  Amid this setting, the
Merchandising segment of the ProSiebenSat.1 Group generated revenues of
EUR40.8 million in the first nine months of 2003, off 20.3% from a year
before. Externally generated revenues were EUR35.5 million.  Operating
income amounted to EUR6.1 million, following on EUR14.9 million last year.
In view of the more positive outlook for the fourth quarter, the company
expects that its revenue and income figures for the full year 2003 will only
be slightly lower than the corresponding prior-year figures.

Services: Revenue decrease due to cost cutting

The Services segment includes Seven Senses, SZM Studios and ProSieben
Information Service, all of which serve mainly as internal service providers
for the ProSiebenSat.1 Group.  In this line of business as well, rigorous
cost management within the Group pulled internal revenues down.  In the
first nine months of 2003, the Services segment of the ProSiebenSat.1 Group
generated total revenues of EUR102.6 million, following EUR123.0 million in
the same period last year -- a 16.6% drop. All the same, operating income
rose from EUR2.8 million to EUR3.8 million.

Outlook: TV advertising market to shrink five to seven% in 2003

There was no change in the German economy's weakness this year.  In 2003,
the current fall assessments of the country's six leading economic research
institutes anticipate zero growth.  But for next year they expect growth of
1.7%.  This is consistent with an uptick in various indicators of the
economic climate: In October, the Ifo business climate index rose for the
sixth time in a row.  The stock markets have also made substantial
recoveries in the past few months.  The economy appears to have bottomed
out.

The advertising market in Germany is also showing its first positive signs.
According to Nielsen Media Research, the gross advertising market grew 2.4%
from January to September 2003.  Thus, for the first time since the
advertising crisis began in 2001, there was growth -- at least in terms of
gross values.  The TV advertising market profited more than average from
this revival.  Gross TV advertising expenditures were up nearly five% in the
second quarter, and nearly eight% in the third quarter.  But the gross
figures are not especially indicative, because they include such factors as
volume discounts from the broadcasters.  No one in the market assumes at the
moment that net TV advertising spending grew so much, even though the
situation in the market has definitely brightened.  Visibility in this
market remains as low as ever.

Because of these factors, the ProSiebenSat.1 Group assumes that the
television advertising market will show a net drop of five to seven%.  In
this estimation, the Company is taking account of the market's positive
performance in the third quarter, and has made an upward correction in its
former projection of minus five to minus ten% for 2003.  The ProSiebenSat.1
Group expects to generate a positive EBITDA in the triple-digit millions for
2003 as a whole.  Station Sat.1 is now expected to reach operating
profitability before the end of this year.

CONTACT:  PROSIEBENSAT.1 MEDIA AG
          Dr. Torsten Rossmann
          Company Spokesman
          Medienallee 7
          D-85774 Unterfohring
          Phone: +49 [89] 95 07-11 80
          Fax: +49 [89] 95 07-11 84
          E-mail: Torsten.Rossmann@ProSiebenSat1.com


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


DESMONDS: Closes Last Manufacturing Plant in Northern Ireland
-------------------------------------------------------------
Clothing manufacturer, Desmonds, the exclusive supplier to British high
street giant Marks & Spencer, is to close its last remaining factory in
Derry, according to just-style.com.

The closure, which will leave 300 unemployed, brings to 1,100 the total
number of Desmonds workers who lost their jobs in the province in 2003.  The
company closed its operations in Tyrone, Fermanagh and Dungiven earlier this
year.  The company, however, will not entirely leave the region.  While the
jeans-making plant will go, the company will still have its global
headquarters and central warehouse in North Ireland.

A company spokesperson blamed pricing pressure for the closure: "We had no
other option left open to us."

Desmonds also has operations in Sri Lanka, Turkey and Bangladesh, and
several joint ventures in the Far East.


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


ALITALIA SPA: Govt Bolsters Bid for Tie-up with KLM, Air France
---------------------------------------------------------------
Alitalia's plan to join the recently announced Air France-KLM merger took a
small step forward with the consent of the government to trim down its
holdings in the airline.  Italian authorities last Thursday adopted a decree
permitting the sale of part of its 62% stake in Alitalia, subject to the
approval of parliament.

The government did not specify how much holdings it would part, but it is
understood the French and Dutch airlines want the Italian government's stake
to fall at least below 50% before considering a link with Alitalia,
according to the Financial Times.

Francesco Mengozzi, chief executive, said: "This is a decisive step on the
way to an exit from a period of sectoral crisis. It comes just after the
company has approved a strong industrial plan to ensure its development and
definitive turnround."

Alitalia recently reported third-quarter loss before taxes and extraordinary
items of EUR47 million, in contrast to a profit of EUR26 million in the same
year.  It said it expects operating loss to increase from EUR233 million in
2002 to EUR410 million in 2003.  It aims to better control finances by 2005.

Mr. Mengozzi said the company only has enough cash for 18 months, unless it
cut costs by 8% within the period.  Alitalia is planning to lay off 1,500 of
its 21,300 workforce and outsource another 1,200 jobs.


FIAT SPA: Family Fully Behind Rehab Plan, Says Agnelli Patriarch
----------------------------------------------------------------
Fiat Chairman and family head, Umberto Agnelli, reaffirmed the founding
family's commitment to stick with the group despite the odds it faces to
restore profitability at the firm's loss-making automotive company.  The
family links with Fiat could not be broken, as "it is not unchangeable," Mr.
Agnelli told Les Echos in an interview, according to Reuters.

Mr. Agnelli said: "We are all committed to supporting Fiat's recovery and to
turning it into an interesting investment alongside the other investments
which Ifil is managing."

In the interview, Mr. Agnelli also said that Fiat would seek "financial
compensation" from General Motors Corporation in exchange for dropping a
"put" option to sell 90% of the Italian carmaker to General Motors,
according to Intesatrade.

Fiat SpA missed its targets for the third quarter, in particular its goal to
cut losses to EUR231 million, TCR-Europe recently reported.  Third-quarter
loss came at EUR285 million, down from last year's EUR339 million.  Revenues
fell to EUR9.84 billion from EUR11.99 billion in the year-earlier period,
while its net loss narrowed to EUR84 million from EUR413 million.

The company plunged into the red last year due to poor sales at its key car
unit, Fiat Auto.  It is hoping to return to profit in 2005 under a plan that
involves asset sales and rights issues.  Although disappointed with the
latest results, analysts expect profits to pick up in the fourth quarter.


PARMALAT FINANZIARIA: Remains on S&P's CreditWatch Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said it kept its ratings, including its
'BBB-/A-3' corporate credit ratings, on Italy-based leading global
fluid-milk processor Parmalat Finanziaria SpA, and its main operating
subsidiary Parmalat SpA, on CreditWatch with negative implications despite
the group's announcement of its intention to monetize its investment in the
Fondo Epicurum fund.

The ratings on the group were placed on CreditWatch on Nov. 11, 2003, due to
concerns about the quality of the group's accounts and how the group
invests its liquidity.  At June 30, 2003, the group reported gross debt of
EUR5.3 billion.

Standard & Poor's views positively Parmalat's announcement that it will
liquidate within 15 days its investment in Fondo Epicurum for about $600
million, which is an amount that corresponds to the group's initial
investment in the fund.  The monetization of this investment will improve
Parmalat's financial flexibility and should help to restore capital-market
confidence in the company.

"The ratings nevertheless remain on CreditWatch with negative implications
in light of the accounting reservations highlighted by Parmalat's auditors
concerning the group's first-half 2003 earnings and Standard & Poor's
ongoing concerns as to Parmalat's investment policy and disclosure of
financial information," said Standard & Poor's credit analyst Hugues de la
Presle.

To resolve the CreditWatch status, Standard & Poor's will seek to obtain
comfort on the accounting issues, and reassurance as to how the group
invests its liquidity.


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


MILLICOM INTERNATIONAL: Consent Solicitation for Notes Amended
--------------------------------------------------------------
On November 7, 2003, Millicom International Cellular SA (Nasdaq: MICC)
commenced a consent solicitation in respect of its 2% Senior Convertible
Payable-In-Kind Notes due 2006.  Pursuant to the Consent Solicitation,
Millicom is seeking the consent of the holders of the Notes to

    (i) The waiver of certain possible past defaults under the
        indenture governing the Notes and

   (ii) The waiver of compliance with the limitation on
        restricted payments covenant in the Indenture in
        connection with Millicom's proposed redemption or
        repurchase of its 13.5% Senior Subordinated Notes due
        2006, which are subordinated to the Notes, with the
        proceeds of a proposed financing by Millicom.

Millicom announces that it has amended the terms and conditions of the
Consent Solicitation as:

Subject to (i) receipt of the consent of the holders of at least a majority
of the principal amount of the Notes outstanding and (ii) effectiveness of
the Proposed Waivers, Millicom will agree pursuant to a supplemental
indenture that, if on or prior to 60 days following the effectiveness of the
Proposed Waivers it has not filed a shelf registration statement with the
U.S. Securities and Exchange Commission covering resales by holders of the
Notes and the common stock issued upon conversion of the Notes, then
additional interest will accrue on the Notes at the rate of 0.25% per annum
until such Registration Statement is filed.  The Additional Interest shall
accrue in addition to the stated interest on the Notes and special interest,
if any, to which the holders of the Notes are entitled pursuant to the terms
of the Notes and the Indenture dated May 8, 2003 with respect to the Notes.

The Consent Solicitation is conditioned upon, among other things, the
receipt of the Requisite Consents.  If the proposed financing by Millicom is
completed and the Requisite Consents are not received, then Millicom intends
to redeem any outstanding Notes in accordance with their terms.  Millicom
will not pay any fee to holders of Notes who consent to the Proposed
Waivers.

The Consent Solicitation will expire at 5:00 p.m., New York City time, on
November 18, 2003, unless terminated or extended by Millicom.  Consents,
once received, may not be revoked.

Morgan Stanley & Co. Incorporated is acting as the solicitation agent for
the Consent Solicitation.  The trustee under the Notes is The Bank of New
York.  The Consent Solicitation is being made pursuant to a Consent
Solicitation Statement dated November 7, 2003, and a related Letter of
Consent, as amended by the Amendment to the Consent Solicitation Statement
dated November 13, 2003.  The Amendment to the Consent Solicitation
Statement and the Consent Solicitation Statement more fully set forth the
terms and conditions of the Consent Solicitation.

Questions regarding the Consent Solicitation may be directed to Morgan
Stanley & Co. Incorporated at (800) 624-1808.  Requests for copies of the
Amendment to the Consent Solicitation Statement, the Consent Solicitation
Statement and related documents may be directed to D. F. King & Co., Inc. at
(212) 269-5550.

This announcement is not an offer to purchase, a solicitation of an offer to
purchase, or a solicitation of consents with respect to the Notes.  The
Consent Solicitation is made solely by means of the Consent Solicitation
Statement and any amendments thereto.

Millicom International Cellular SA is a global telecommunications investor
with cellular operations in Asia, Latin America and Africa.  It currently
has a total of 16 cellular operations and licenses in 15 countries.  The
Group's cellular operations have a combined population under license of
approximately 382 million people.  In addition, MIC provides high-speed
wireless data services in five countries.

                              *****

An improved liquidity position and reduced leverage as a result of the
completion of the company's exchange offer and subsequent issuance of 5%
mandatory exchangeable bonds that will help retire approximately US$167
million of 11% senior notes led Moody's to upgrade its ratings on Millicom
International Cellular S.A.

The debt instruments upgraded were its senior implied rating (to B1 from
Caa1), issuer rating (to B2 from Caa2), and 13.5% senior subordinated
discount note due 2006 (to B3 from Caa3).  Its 11.0% senior unsecured notes
due 2006 was assigned a B2 rating.

CONTACT:  MILLICOM INTERNATIONAL CELLULAR
          Marc Beuls
          President and Chief Executive Officer
          Phone:  +352 27 759 101

          SHARED VALUE LTD.
          Andrew Best
          Investor Relations
          Phone:  +44 20 7321 5022


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


ROSTELECOM: Ratings Raised to 'B' on Improved Debt Profile
----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate credit
ratings on Rostelecom -- which is the primary provider of international and
domestic long-distance telecommunications services in Russia -- to 'B' from
'B-', following the company's successful restructuring of liabilities to the
Russian Ministry of Finance and an improved interconnection regime.  The
outlook is positive.

"The rating action primarily reflects Rostelecom's gradual debt reduction;
the effects of the recent change in the Russian interconnection regime; and,
importantly, recent restructuring and elimination of uncertainties in
respect of the company's Yen-denominated debt to the Russian Ministry of
Finance, through the conversion into promissory notes issued to Alfa Bank,"
said Standard & Poor's credit analyst Pavel Kochanov.

Furthermore, the expected sale of previously consolidated leasing company
RTC-Leasing is likely to further improve Rostelecom's balance sheet given
the increasing debt and operations of RTC-Leasing related to third parties.

Close collaboration with the regulator has also allowed the company to
increase transparency of interconnection arrangements with regional
incumbent telecommunications operators by introducing separate incoming and
outgoing interconnection settlement rates.  The overall strong growth of the
Russian telecoms market and tangible results of management's efforts in cost
reduction and securing Rostelecom's dominant market position have further
contributed to the improved credit standing of the company.

Rostelecom is expected to further improve its capital structure thanks to
positive cash flow generation and the sale of RTC-Leasing.  The company is
also expected to reach revenue growth above inflation, based on improving
interconnection arrangements and active protection of its market position in
the major telecoms market of Moscow.  An observed improvement in
Rostelecom's operating performance and liquidity position might lead to a
further improvement of the rating.


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


ABB LTD.: Signs Railway Parts Supply Deal with Bombardier
---------------------------------------------------------
ABB, the leading power and automation technology group, said it has signed a
five-year alliance agreement with Bombardier Transportation, the global
leader in the rail equipment manufacturing and servicing industry.

The agreement establishes a general framework for the business relationship
and procurement transactions between Bombardier Transportation and ABB.  It
is the first such agreement signed by Bombardier Transportation with any of
its suppliers.

Under the terms, ABB will deliver railway components like traction
transformers, traction motors, power semiconductors, power electronic
products and low-voltage apparatus.

The agreement is potentially worth US$500 million.

"The blend of power and automation technologies involved in this agreement
reinforces the synergy among ABB's core businesses.  At the same time, the
agreement is a cornerstone formalizing the mutual interests of Bombardier
Transportation and ABB," said Peter Smits, head of ABB's Power Technologies
division.  "It reaffirms our position as supplier of choice and a reliable
long-term partner."

A key target of the agreement is the reduction of production cycle time to
increase speed of delivery and maximize production efficiency.  Operational
units of ABB and Bombardier Transportation are already collaborating on
design processes, and moving towards closer communication and business
processes.

ABB (http://www.abb.com)is a leader in power and automation technologies
that enable utility and industry customers to improve performance while
lowering environmental impact.  The ABB Group of companies operates in
around 100 countries and employs about 120,000 people.

                              *****

ABB is currently disposing assets, including a power network and the Red
Bank coal-powered electricity station in Australia, to reduce its debt to
US$6.5 billion by year's end.  The engineering company's debt burden reached
US$8.3 billion at the end of the second quarter.


ASCOM: Plan to Boost Capital Via Share Issue Underway
-----------------------------------------------------
Ascom intends to strengthen its shareholders' equity by issuing 13.5 million
of new shares.  A banking syndicate led by Credit Suisse First Boston has
fully underwritten the capital increase, subject to the approval of the
share capital increase by the Extraordinary General Meeting, to be held on
December 4, 2004.

After the capital increase, Ascom will have more financial flexibility for a
sustainable business development with a new syndicated loan, which will
replace the existing standstill agreement of Ascom Holding Ltd.  Ascom's
improved balance sheet structure will enable a sustainable development of
the company.

Strengthening shareholders' equity

Ascom is planning to strengthen its shareholders' equity by issuing new
shares.  A stronger balance sheet structure will give the company the scope
to fully exploit business potential in the four core segments.

Shareholders of Ascom Holding Ltd. will have to vote in favor of the
proposed capital increase at an Extraordinary General Meeting, to be held on
December 4, 2003.  The Board of Directors of Ascom Holding Ltd. will propose
in an initial step, to reduce the par value of the existing registered
shares on a declaratory basis from CHF10 to CHF7, whereby the amount, by
which the share capital shall be reduced, will be offset with accumulated
losses of Ascom Holding Ltd.

In a second step, the Board of Directors proposes to reduce the par value of
registered shares from CHF7 to CHF5.5 and to increase the share capital at
the same time by the issuance of 13.5 million new shares at a par value of
CHF5.5.  If shareholders vote in favor of these motions, each shareholder
will receive one tradable subscription right for each already existing
registered share.  Each 5 subscription rights entitle to subscribe for 3 new
shares at a subscription price of CHF5.5 each.

Subsequent to the capital increase, Ascom Holding Ltd. will have an ordinary
share capital of 36 million registered shares at a par value of CHF5.5 each.

Subject to the Extraordinary General Meeting approving the capital increase,
a banking syndicate led by Credit Suisse First Boston has already fully
underwritten the total capital increase Wednesday.  The new shares will be
offered to shareholders for subscription on December 8 to 17 2003.  Trading
in the subscription rights will take place between December 8 and 16 2003 on
SWX Swiss Exchange.

A banking consortium has confirmed to Ascom that, subject to the approval of
the capital increase by the Extraordinary General Meeting, the existing
standstill agreement will be replaced by an ordinary syndicated loan.

Focus and cost reductions

In line with Ascom's strategic focus on four core segments, the company has
sold off a number of non-core businesses during the past few months.  The
company expects its net financial debt position to amount to approximately
CHF100 million at the end of 2003, not taking into account the proceeds from
the capital increase.  Ascom continuously adapts its cost structure to the
market conditions and will substantially increase future profitability
through an additional cost reduction program.  It includes a reduction of
operating expense and in workforce of 450 employees worldwide.  These cost
savings are to be achieved across all business segments and will be
implemented by year-end 2004.

Outlook

The four core segments Wireless Solutions, Transport Revenue, Security
Solutions and Network Integration offer an attractive potential for value
creation.  The announced cost reduction program shall improve the company's
results on a sustainable basis.  Ascom is targeting to achieve a net income
break-even result for the fiscal year 2004.  The improvement of the
profitability of Ascom Group, the reduced net financial debt as well as the
capital increase will provide a sound basis for the sustainable development
of the company.

About Ascom

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


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


BASE GROUP: Divests Underperforming Soccer Businesses
-----------------------------------------------------
The Directors of Base report that the entire issued share capitals of the
Soccer Businesses (Time Management Global Limited and Base Soccer Agency
Limited) have been sold to Base Sport Limited, a newly formed company of
which Leon Angel, a former director of Base, has a majority stake.

Unaudited management accounts for the six months ended August 31, 2003
indicate that the Soccer Businesses generated an aggregate loss before
taxation of approximately GBP560,000. According to the same management
accounts, the aggregate net liabilities of the Soccer Businesses as at
August 31, 2003 were approximately GBP850,000.

The consideration for the sale is GBP1 in cash for each company with all
liabilities remaining the responsibility of the Soccer Businesses, other
than the amounts due to Base totaling approximately GBP1 million, which are
to be written off by the parent company.

The Soccer Businesses are agents for football players and management, but
have had an extremely disappointing year as a result of the worsening in the
fortunes of the football sector in general.  This is reflected in a
significant reduction in the number of transfers completed and the value of
such transfers thereby adversely impacting the revenue generating prospects
for the Soccer Businesses.

This has been exacerbated by the recent introduction of the transfer windows
between May and August and in January.  With the prospect for the short-term
future being extremely limited due to there only being a one month transfer
window in the next six month period, there is likely to be no significant
cash inflow until mid 2004 at the earliest.  As such, the Directors do not
believe that the Soccer Businesses remain commercially viable and having
considered the matter with the Company's advisers, are of the opinion that
preserving the remaining cash within the Company (which will total
approximately GBP500,000 after payment of costs) is preferable to risking
that the group would run out of cash before the summer transfer window
opens.

Discussions were held with potential purchasers of the Soccer Businesses,
but negotiations did not lead to any formal offers being received.  With the
only alternative being the closure of the Soccer Businesses, the Board
considered an approach from Leon Angel, a former director of Base and the
previous owner of the Base Soccer Agency, to acquire the Soccer Businesses
for GBP1 each, assuming all liabilities, other than inter-company debt due
to Base, but including the lease at Little Portland Street, London W1 which
does not expire until 2007 and has a cost of more than GBP100,000 per annum.

Following the sale, Base will be a shell company with no trading activities
and approximately GBP500,000 in the bank and no on-going overheads, other
than basic plc running costs.

The Board, having consulted with its nominated adviser, Collins Stewart,
believes that the terms of the transaction are fair and reasonable insofar
as its shareholders are concerned.  Having due regard to the significant
cash outflow currently being experienced in the business, and the expected
cash outflow in the period until March 2004, the Directors believe that the
best course of action is to sell the operations of the Group through the
disposal of the Soccer Businesses.

CONTACT:  BASE GROUP
          Adrian Bradshaw, Chairman
          Phone: 020 7495 5524


BNFL: Chairman Collum Bares Plan to Step down Next Year
-------------------------------------------------------
Hugh Collum is to step down as chairman of BNFL next summer after four years
of implementing sweeping restructuring at the company.

Mr. Collum, who was responsible for bringing down changes in the company's
management and working practices, said the strategic review, which the
government is conducting now, would have been completed by the time he steps
down next summer.

He said: "It will be an appropriate time for me to move aside.  I will have
been chairman for nearly five years.  Mike Parker [BNFL's chief executive]
will have been in the job for 12 months.  The bill to establish the
decommissioning authority should also be well advanced and the company's new
shape will have been determined."

The government is planning to sell the bulk of the group's U.K. assets, and
GBP40 billion of nuclear clean-up liabilities, instead of selling up to 49%
of BNFL as previously proposed.  The U.K. assets include its Sellafield
fuel-reprocessing complex in Cumbria, which environmentalists are demanding
to shut down along with its "mox" fuel plants.

BNFL's nuclear decommissioning liabilities have continued to weigh it down,
but the company insists on providing the service and remain an integrated
nuclear services company rather than be broken down.  The government is
planning to sell profitable parts of the business, such as U.S. arm
Westinghouse.

The company, which is facing a series of crises, including that which
relates to falsification of documents for fuel contracts, reported a EUR1.09
billion pre-tax loss for the year to March 31.


BRITISH ENERGY: Issues Output Statement, Update on Power Outages
----------------------------------------------------------------
A summary of net output from all of British Energy's power stations in
October is given in the table below, together with comparative data for the
previous financial year:

              2002/03                                  2003/04
           October   Year to Date     October      Year to Date
         Output  Load  Output  Load  Output  Load  Output  Load
         (TWh)  Factor (TWh)   Factor  (TWh) Factor (TWh) Factor
                 (%)           (%)             (%)          (%)

U.K. - Nuclear
          4.72   66    35.05    71      4.61   65   37.87     77
U.K. - Coal
          0.78   54     2.15    22      0.88   61    3.12     31
AmerGen   1.47   80    11.14    88      1.50   81   12.12     95
(50% owned)

U.K. - Nuclear

Planned Outages

(a) A statutory outage was completed at Hinkley Point B and
    another started at Sizewell B.

(b) A refueling outage was carried out on one reactor at
    Dungeness B.

(c) Low load refueling was carried out on one reactor each at
    Hinkley Point B, Hunterston B and Torness.

Unplanned Outages

(a) Sizewell B is expected to return to service in mid November.

(b) Both units at Heysham 1 were shut down on October 28,
    following the failure of a seawater-cooling pipe.  Based on
    the inspection program, which is still continuing, and the
    scope of the work identified to date, it is now expected
    that both reactors will return to service towards the end of
    November.

(c) It is now estimated that the combined gross loss of output
    caused by the Sizewell B and Heysham 1 outages will be
    between 1.1 and 1.4 TWh, compared to the previously stated
    estimate of 0.8TWh.

(d) An outage was completed on one unit at Torness and Hinkley
    Point B to carry out boiler inspections and repairs.

(e) An outage was completed on one unit at Heysham 2 following a
    feed pump trip to carry out inspections and repairs.

2003/04 U.K. Nuclear Output

At the outset of the year, the Company's forecast for total U.K. nuclear
output for the current financial year was approximately 67 TWh after
establishing a reserve for unplanned outages of approximately 5 TWh.  Based
on outages to date and the Company's current expectations as to the return
to service of Sizewell B and Heysham 1, the remaining reserve for unplanned
outages is approximately 2 TWh.

AmerGen

Planned Outage

A planned outage started at Three-Mile Island Unit 1 in October

Update on impact of Sizewell B and Heysham 1 Outages

The delayed return of Sizewell B and Heysham 1 will have a further adverse
impact on the Group's cash position, although the profit and loss impact
will be less to the extent of savings on unburnt fuel.  These and the other
factors described in the Company's announcement on October 31, 2003 continue
to put pressure on British Energy's liquid resources, which the Company has
been addressing and will continue to work to address.   Please refer to the
announcement of October 1, 2003 for a more detailed discussion of the terms,
conditions and risks of the proposed restructuring.

CONTACT:  BRITISH ENERGY
          Paul Heward, Investor Relations
          Phone: 01355 262 201
          Home Page: http://www.british-energy.com


CANARY WHARF: Franklin Mutual Advisors Backs Brascan Bid
--------------------------------------------------------
Further to Brascan's announcement on November 12, 2003, Brascan is pleased
to announce that CWG Acquisition Limited has received a letter of support
from Franklin Mutual Advisors, LLC, which is the discretionary fund manager
for clients who presently hold 39,963,718 ordinary shares of Canary Wharf,
representing approximately 6.8% of Canary Wharf's issued share capital,
stating that if CWG Acquisition makes a cash offer for the entire issued and
to be issued shares of Canary Wharf at a price of 252 pence or more, its
current intention is to accept this offer in respect of its entire holding
of Canary Wharf shares.

                              *****

Canary Wharf, which fell down during the stock market crash of 1987, is
suffering from the slowdown in the real property market.  It was bailed out
by a group of banks and then sold.  It recovered during the late 1990s but
encountered difficulties again after the September 11 attacks discouraged
interest in skyscrapers.

CONTACT:  BRASCAN CORPORATION
          Katherine C. Vyse
          Phone: 416-369-8246
          E-mail: kvyse@brascancorp.com
          Homepage: http://www.brascancorp.com


CORUS GROUP: Open Offer Prospectus Now Available at UKLA
--------------------------------------------------------
A copy of the prospectus relating to the placing an open offer of Corus
Group has been submitted to the UKLA and will shortly be available for
inspection at the UKLA's Document Viewing Facility, which is situated at:
Financial Services Authority, 25 The North Colonnade, Canary Wharf, London
E14 5HS  Telephone: 020 7066 1000.

                              *****

On Wednesday, Corus announced a Placing and Open Offer of 1,304,340,897
million New Ordinary Shares at the Issue Price of 23.5p per New Ordinary
Share to raise approximately GBP307 million (GBP291 million after expenses).
This Placing and Open Offer, which is fully underwritten by Cazenove and
Lazard, will
enable the immediate launch of the second phase of the U.K. restructuring
program and the implementation of further 'Restoring Success' initiatives.

The Issue Price of 23.5p per New Ordinary Share represents a 9.6% discount
to the Closing Price of 26.0p on November 11, 2003 (being the last
practicable date prior to this announcement).


HARTLEPOOL FABRICATIONS: Cordell Acquires Part of Operation
-----------------------------------------------------------
The Oxfordshire-based administrators of Hartlepool Fabrications, HMT
Corporate Recovery, sold the site construction operations of the troubled
company to Stockton-based Cordell Group for an undisclosed sum, according to
the Evening Gazette.

The transaction saved the jobs of 25 people at the builder of the famous
Angel of the North.  The site is the only part of the company that continues
to operate.  Hartlepool Fabrications' fall into administration is the second
within the last 18 months.

David Rush, Cordell Group managing director, said: "Having failed to acquire
Hartlepool Fabrications last year when it first went into administration we
are extremely pleased to have been successful the second time around.  We
believe the management skills and experience we will bring to these
operations will lead to a significant expansion of our business."

The Cordell Group will transfer the construction operation to its existing
Cassel Works site at Billingham, according to the report.


IMPERIAL CHEMICAL: Falling Profit Triggers Revamp of Starch Biz
---------------------------------------------------------------
Imperial Chemicals announced last week the closure of its two starch
manufacturing plants in Canada and the U.K. as higher raw material costs
continue to impair margins.

The company's Collingwood, Canada, plant and the Tilbury, U.K., factory will
be closed by the end of 2004, according to Food Navigator.  The decision
comes as Imperial Chemicals restructures National Starch where profit for
the nine month period tumbled by 10% from GBP166 million in 2002 to GBP145
million in 2003.

According to the report, a spokesman for the company said it is not yet
determined how many jobs will be lost as part of the shakeup as there will
also be new positions that would be created because of the reorganization.

Imperial Chemicals, on the other hand, will be implementing modernization
projects on other parts of the world.  It will complete a new starch
modification facility in Shanghai in 2004.  It will also update
manufacturing sites in the U.S., at Indianapolis and North Kansas City, as
well as the site in Hamburg, Germany, the report said.


INVENSYS PLC: Posts GBP149 Mln Loss after Corporate Exceptionals
----------------------------------------------------------------
Chairman's statement

The core businesses of Production Management and Rail Systems together
delivered operating profit for the period in line with expectations.  In
markets that remain tough, Production Management saw a return to sales
growth.  Rail Systems continued to perform strongly, with major contract
wins in the U.K. and U.S.

Results summary

Group sales were GBP2,044 million (H1 02/03: GBP2,747 million), reflecting
the disposal of businesses during the last twelve months.  Sales from
continuing operations, comprising the core businesses, together with the
Development division, were GBP1,986 million (H1 02/03: GBP2,008 million),
being flat at constant exchange rates (CER).  Core sales were up 6% (CER).

Group operating profit decreased to GBP103 million (H1 02/03: GBP176
million), mainly due to a fall of GBP71 million in the contribution of
businesses disposed.  Operating profit from continuing operations was GBP116
million (H1 02/03: GBP118 million), an increase of 3% (CER).  Corporate
center costs were significantly lower at GBP31 million (H1 02/03: GBP46
million) and the Group pension charge to operating profit was GBP23 million
(H1 02/03: GBP33 million).

These results included negative currency translation impacts of GBP28
million on sales and GBP5 million on operating profit, as the positive
impact of the strengthening Euro against sterling was offset by the
weakening U.S. dollar.

Restructuring, transition costs, goodwill amortization, interest and tax

Operational restructuring charges were GBP46 million, representing 2% of
sales and a further reduction from prior year levels.  Transition charges
incurred for the current reshaping of Invensys as a consequence of the
disposals program were GBP86 million, in line with guidance.  This included
a GBP50 million provision for the expected cost of exiting onerous leases on
surplus properties and GBP31 million for the termination of certain
group-wide contracts and IT-related costs.

Amortization of GBP31 million (H1 02/03: GBP62 million) relating to goodwill
capitalized in the balance sheet was charged to the profit and loss account.

Net interest payable for the six months was GBP39 million (H1 02/03: GBP61
million), primarily due to a reduction in net debt levels following disposal
of businesses in the prior year.  Interest cover was 3.8 times on a
twelve-month rolling basis at September 30, 2003, based on EBITDA before
exceptional items.

There is a tax credit for the six months of GBP49 million, comprising
taxation on ordinary activities of GBP20 million, a prior year taxation
credit of GBP64 million and a deferred tax credit of GBP5 million.

Earnings

The Group has recorded a loss of GBP149 million (H1 02/03: GBP97 million),
after corporate exceptionals of GBP87 million.  The basic loss per share was
4.3p (H1 02/03: loss of 3.7p).

Earnings per share before exceptional items and goodwill amortization were
0.8p (H1 02/03: 2.2p).

Cash flow and indebtedness

Free cash outflow was GBP44 million (H1 02/03: GBP9 million inflow), prior
to payments of GBP109 million related to legacy issues.  Operating cash flow
of GBP124 million (H1 02/03: GBP255 million) was impacted by a GBP73 million
reduction in operating profit, partially offset by a GBP38 million reduction
in interest payments, as well as by a lower working capital outflow of GBP63
million (H1 02/03: GBP79 million).  The working capital outflow was
primarily due to a decrease in accounts payable as a result of a management
decision to normalize arrangements with suppliers.

Net debt was GBP1,609 million, an increase from GBP1,556 million at March
31, 2003.

Disposals and financing strategy for legacy liabilities

Disposals comprised principally Baan and Teccor, which generated gross
proceeds of GBP110 million.  Disposals gave rise to a profit on net assets
of GBP77 million, a goodwill write-off of GBP131 million and a resulting
total loss on sale of GBP54 million.

Subsequent to the period end, the Group announced the disposal of Metering
Systems for $650 million (GBP388 million), conditional among other things
upon approval of Invensys shareholders at an Extraordinary General Meeting.
A circular will be sent to shareholders shortly, setting out full details of
the disposal.

Whilst the disposal program still has a considerable way to go, in light of
the Group's experience to date and market conditions generally, the Board
currently believes that total proceeds will exceed GBP1.8 billion, which is
somewhat below previous guidance.  The Board expects this program to be
completed to schedule over the next twelve months.

With the exception of the Group's senior notes issued in the United States
under Rule 144A of the Securities Act of 1933 (GBP271 million), the Group's
facilities expire in three tranches in June 2004 (GBP904 million), April
2005 (GBP350 million) and August 2005 (GBP880 million). Proceeds from the
current disposal program, which is proceeding to timetable, are expected to
be used to repay all borrowings under the $1.5 billion (GBP904 million)
Revolving Credit Facility, which expires in June 2004.

The level and form of financing required in 2005 will be determined by the
ongoing needs of the business.  The Board, as a prudent measure, has decided
to explore a range of alternative financing routes in the banking and
capital markets, as well as that of additional disposals.  The refinancing
options available will be dependent upon a number of internal and external
factors, including the trading performance of the Group, market conditions,
the performance of the current disposal program and the status of the
Group's program to manage its legacy liabilities, including pensions.  The
Board currently believes that this range of options provides sufficient
flexibility to manage its 2005 refinancing requirement.

Pension deficit

The combined FRS 17 deficit for the U.K. and U.S. pension schemes together
with the other schemes reduced by GBP115 million from GBP931 million at
March 31, 2003 to GBP816 million at 30 September 2003.  The triennial review
of the U.K. pension scheme commenced in April and the initial work of the
Actuary suggests that at March 31, 2003 the actuarial deficit was GBP415
million.  An agreement in principle has been reached with the Trustee to the
U.K. pension scheme to resume contributions to the U.K. scheme of 20% of
pensionable salaries, commencing with effect from October 2003.  In
addition, over the next three years it is proposed to pay into the scheme
five payments of GBP15 million and to pay 15% of the net proceeds of the
current disposal program in excess of GBP1 billion, up to a maximum of
GBP150 million.  In respect of both of these latter items, no payment will
be due to the extent that, at the date of the scheduled payment, there is no
FRS 17 deficit in the fund.

Pensions accounting standards - Adoption of FRS 17

As announced in our Annual Report and Accounts 2003, the Group has fully
adopted FRS 17 effective from April 1, 2003.  The impact of this on the
current half-year results is the inclusion of a service cost of GBP23
million (H1 02/03: GBP33 million) and other finance charges of GBP12 million
(H1 02/03: GBP15 million credit).  Additionally, based on a valuation at
September 3o, 2003, the deficit on the Group's pension schemes of GBP770
million (net of a related deferred tax asset of GBP46 million) has been
recognized on the balance sheet (H1 02/03: deficit of
GBP939 million, net of deferred tax of GBP99 million).

Dividend

No interim dividend will be paid (H1 02/03: 1p).

Trading outlook

In Production Management, there are some signs of improving trading
conditions in certain sectors and regions.  In the meantime, the business
will continue to drive hard to improve margins through cost reduction and
productivity gains.

In Rail Systems, the order book is strong, including the London Underground
PPP contracts awarded in April.

At this stage, there remains much to be done to achieve the Group's goal of
building a stronger Invensys, both operationally and in terms of the balance
sheet.

Operating review

CORE BUSINESSES

Sales from core operations (Production Management and Rail Systems) were up
6% (CER) at GBP872 million (H1 02/03: GBP822 million).  Operating profit for
core operations at GBP70 million (H1 02/03: GBP77 million), was down 7%
(CER).

Production Management sales increased by 2% (CER) to GBP640 million (H1
02/03: GBP632 million).  Sales in North America, Europe and Asia Pacific
stabilized, while United Kingdom and Africa/Middle East sales were up 6% and
37% respectively.

Operating profit was GBP37 million (H1 02/03: GBP47 million), resulting in
an operating margin of 5.8% (H1 02/03: 7.4%).  This was impacted by a GBP5
million charge in respect of the resolution of legacy accounting issues in
Asia and by continued investment in new technology, customer and regional
initiatives, which yielded noticeable organic growth in some parts of the
business.

Sales in APV and Wonderware increased by 10% and 14% respectively.  Sales in
Eurotherm and IMServ were relatively flat and at Process Systems, sales were
down 4% compared with the same period last year.

Rail Systems sales increased 22% (CER) to GBP232 million (H1 02/03: GBP190
million).

Underlying sales growth of 11% was augmented by increased maintenance
logistics sales in North America and the start of work on the first and
smaller of two London Underground PPP contracts, which contributed GBP7
million in sales during the period.

Operating profit increased to GBP33 million (H1 02/03: GBP30 million),
although operating margin at 14.2% (H1 02/03: 15.8%) was diluted in this
half by higher sales growth in the lower margin North American logistics
business and by slight changes in sales mix in the rest of the business.

DEVELOPMENT DIVISION

Sales from the Development Division were down 4% (CER) at GBP1,114 million
(H1 02/03: GBP1,186 million).  Operating profit was GBP99 million (H1 02/03:
GBP113 million), mainly due to continued general economic weakness in
primary markets, which was mitigated, in part, by operational improvements
and reduced overheads.

To see financial statements: http://bankrupt.com/misc/Invensys_H1.htm


MARCONI CORPORATION: Cuts 1st-half Operating Loss to GBP149 Mln
---------------------------------------------------------------
Highlights of interim results for the three and six months ended September
30, 2003:

(a) Local areas of increased demand lead to 6% sequential sales
    growth from GBP367 million in Q1 to GBP389 million in Q2

    (i) Targeting further slight increase in Q3 sales following
        continued stronger market dynamics in North America and
        Germany

   (ii) First-half sales GBP756 million (H1 FY03: GBP992
        million Network Equipment and Network Services)

(b) Solid progress in operational performance improvements from
    Q1 to Q2 in Network Equipment and Network Services

    (i) Adjusted (1) gross margin increased to 26.2% (Q1 FY04:
        22.6%); gross margin including impact of exceptional
        credits to 26.5% (Q1 FY04: 24.0%); now targeting
        adjusted gross margin exit run-rate (2) in the range of
        27 to 29% by March 31, 2004

   (ii) Adjusted (1) operating cost run-rate(2) reduced to
        GBP455 million per annum by September 30, 2003 (June 30,
        2003: GBP475 million; September 30, 2002: GBP635
        million); on track to reduce exit run-rate below GBP425
        million by March 31, 2004

  (iii) Adjusted (1) EBITA operating loss (before goodwill
        amortization, exceptional items and share option costs)
        in Network Equipment and Network Services reduced from
        GBP37 million in Q1 to GBP16 million in Q2; Adjusted(1)
        EBITDA in Network Equipment and Network Services
        improved from GBP19 million loss in Q1 to GBP7 million
        profit in Q2

   (iv) First-half Group operating loss GBP149 million; reduced
        from GBP87 million in Q1 to GBP62 million in Q2 (H1
        FY03: GBP491 million)

(c) Maintained strong performance against cash generation plans

    (i) Fourth consecutive quarter of positive operating cash
        flow before exceptional items; H1 FY04 GBP65 million -
        Q1 FY04 GBP32 million, Q2 FY04 GBP33 million (H1 FY03
        GBP142 million outflow); Group operating cash outflow
        after operating exceptional items and before financial
        restructuring H1 FY04 GBP9 million (H1 FY03 GBP323
        million outflow)

   (ii) Net cash position further reinforced through continued
        drive to maximize cash generation; net cash of GBP99
        million at September 30, 2003, up from GBP5 million at
        June 30, 2003

  (iii) Disposal proceeds applied to fund mandatory partial
        redemptions of Junior Notes; principal amount reduced to
        $289 million (c. GBP174 million) at October 17, 2003

(d) Completion of financial restructuring in May 2003; net assets of GBP323
million at September 30, 2003

(1) Adjusted measures are before share option costs, goodwill amortization
and exceptional items; a full reconciliation to non-adjusted measures are
provided in the Group's Non-Statutory Accounts and Operating and Financial
Review for the three and six months ended September 30, 2003.

(2) Run-rate is the measure of annualized gross margin or operating costs
before share options, exceptional and non-recurring items calculated on the
last day of the period.

Commenting on the results, Mike Parton, Chief Executive, said: "Our results
for the period demonstrate the continuous progress we are making.  We are
continuing to deliver market-leading products and services to our customers
and are maintaining a tight control of our cash and cost base.

"Our markets are still difficult to predict beyond the current quarter.
However I believe our optimism for the longer term looks increasingly
justified."

John Devaney, Chairman, added: "The company completed its balance sheet
restructuring, strengthened its Board further and made very strong
operational progress during the first six months of the year.  We are
building strong foundations to support the business and our stakeholders'
longer term success."

To see financial statements: http://bankrupt.com/misc/Marconi_Interim.htm

CONTACT:  MARCONI CORPORATION
          Heather Green, Investor Relations
          Phone: 0207 306 1735
          E-mail: heather.green@marconi.com


NETWORK RAIL: Dismisses 40 Managers in Scotland
-----------------------------------------------
Network Rail on Wednesday brought down its axe on the jobs of 40 managers in
Scotland as part of its drive to cut-cost across the not-for-profit company,
according to The Scotsman.

The employees who lost their jobs are contract managers, finance managers,
signaling operations employees and station managers. A total of 650
redundancies are expected in the U.K as the company tries to cut annual cost
by GBP1.3 billion.  This represents about 15% of Network Rail's management
staff.

Network Rail said: "It was always known that there were going to be job
losses, and those affected have now been told. A full redundancy package has
been negotiated for each employee."

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.


RANK GROUP: Acquires New Multi-currency Credit Facility
-------------------------------------------------------
The Rank Group Plc is pleased to announce that Rank Group Finance Plc has
agreed terms for a new three year, senior unsecured GBP400 million
multi-currency revolving credit facility.  The new facility, which was
oversubscribed and was led by Banc of America Securities, HSBC, JP Morgan
and The Royal Bank of Scotland, will be guaranteed by Rank and replaces a
similar GBP250 million facility.

Commenting on the new facility, Ian Dyson, Group Finance Director said:
"Following the successful private placement of $538 million senior notes in
May of this year, the strong appetite for Rank Group credit continues,
indicating ongoing support for the Group's strategy, recognition of its
financial strength and the ability of each of its core businesses to
generate cash."

                              *****

Fitch Ratings downgraded Rank Group Plc's Senior Unsecured and Short-term
ratings to 'BB+' and 'B' respectively, from 'BBB-' and 'F3'.  The Senior
Unsecured rating remains on Rating Watch Negative, where it was placed on
September 8, 2003, pending confirmation of the company's liquidity profile
relative to its 2004 obligations.

The downgrade follows the group's announcement that it will redeem its
subordinated convertible preference shares on December 9, 2003, thereby
increasing the level of unsecured debt.

CONTACT:  THE RANK GROUP PLC
          Phone: 020 7706 1111
          Ian Dyson, Finance Director
          Sam Wren, Treasurer


REGUS PLC: Exits Creditor Protection; Launches Rights Issue
-----------------------------------------------------------
Regus plc, the world's largest provider of serviced offices, today confirms
its exit from Chapter 11 and the launch of a GBP55 million Rights Issue to
be made by Regus Group plc.

Commenting, Mark Dixon, Chief Executive of Regus, said: "We are pleased to
be exiting Chapter 11 on schedule and [Thursday's] fully underwritten
fundraising adds further strength to our balance sheet while widening our
shareholder base with the introduction of more than 20 new, high-quality
institutional investors.

"These moves, together with the more positive trading conditions that we are
seeing around the world, place Regus in a strong position to move forward in
2004."

Key features of the announcement include:

Exit from Chapter 11

(a) The U.S. Bankruptcy Court has confirmed Regus' proposed Plan
    of Reorganization

(b) The Plan as modified allows settlement of claims in cash
    Rights Issue

(c) Issue of 1 new share by way of rights for 3 existing shares
    at 28 pence per share to raise GBP55 million (GBP52 million,
    net of expenses) fully underwritten by KBC Peel Hunt Ltd.

(d) GBP28 million of the net proceeds will be used to settle
    claims of U.S. creditors in cash (rather than in a
    combination of new Shares and CULS as originally proposed)
    as part of Regus' exit from Chapter 11

(e) The balance of the net proceeds will provide additional
    working capital for the Group and strengthen the Company's
    balance sheet

(f) The Rights Issue has been sub-underwritten by KBC Peel Hunt
    with predominantly institutional investors.  This will
    increase the number of Shares in public hands and is
    expected to encourage continuing institutional investment in
    the Company

Timing

(a) Application is being made to the U.K. Court to postpone the
    hearing to sanction a Scheme of Arrangement, whereby Regus
    Group plc is to be established as a new holding company for
    the Group, until November 28, 2003

(b) The U.K. Scheme of Arrangement is expected to become
    effective on December 1, 2003 and dealings in Shares in
    Regus Group plc are expected to commence on that day

(c) Provisional allotment letters in respect of the Rights
    Shares are expected to be posted on December 4, 2003.  Nil
    paid trading in respect of the Rights Shares is expected to
    commence on December 5, 2003 and to end on December 29,
    2003.  Completion of the Rights Issue is expected on
    December 29, 2003

(d) The proposed new implementation date of the Plan of
    Reorganization is now expected to take place on or about
    January 12, 2004

End of Offer Period

On January 7, 2003 Indigo Capital LLC announced that it was interested in
exploring a wide range of strategic, commercial and financing alternatives
with the Regus Board, one of which might include a recommended take-over.
As a result of this announcement, an offer period began in relation to Regus
for the purposes of the City Code on Takeovers and Mergers.

Regus has now received confirmation from the Board of Indigo that it no
longer has any intention of making an offer for Regus or the Company and all
discussions have been terminated.  As such, the offer period in relation to
Regus has now ended.

                              *****

Exit from Chapter 11

On November 12, 2003 the U.S. Bankruptcy Court approved/confirmed the Plan
as modified.  Pursuant to the Plan as modified, Regus and the other Debtors
have the option of settling the allowed claims of general unsecured
Creditors under the Plan in cash on the Plan Effective Date (which is
expected to be January 12, 2004) rather than by way of the issue of either
(i) Shares, (ii) CULS, or (iii) a combination of Shares and CULS.

Although it was originally proposed that an application would be made to the
Court for the sanctioning of the Scheme on November 14, 2003, it has been
decided, in light of the announcement of the Rights Issue, that an
application would be made to the Court to postpone the Court Hearing to
November 18, 2003 to give Regus Shareholders an opportunity to appear at the
Court Hearing on 28
November 2003.  It is expected that the scheme will become effective on
December 1, 2003 and that the Shares in Regus Group plc will be listed, and
dealings in them will commence, on that date.  A full expected timetable of
principal events is set out at the end of this document.

Details of the Rights Issue

The Group proposes to raise up to approximately GBP55 million (GBP52 million
net of expenses) by a Rights Issue to be made by Regus Group plc of up to
195,873,430 new Shares at a price of 28 pence per Share.

The issue is being made by way of a Rights Issue to Qualifying Shareholders
and Qualifying Warrant Holders (other than certain Overseas Shareholders and
certain Overseas Warrant Holders) on the basis of 1 Share for each 3 Shares
held at the close of business on the Record Date.  The Record Date will be
the date upon which the Scheme becomes effective (expected to be  December
1, 2003).

The Issue Price of 28 pence per Share represents a 18.55% discount to the
closing middle market price of 34.375 pence per share in Regus on November
12, 2003.

Certain Regus Shareholders (including Maxon Investments) have undertaken to
the Company and the Underwriter not to take up rights pursuant to the Rights
Issue and the Underwriter has placed the Shares the subject of these
undertakings (which amount to in aggregate 153, 949,164 Shares) with certain
institutional investors on a firm conditional basis.

The Company will not be convening an extraordinary general meeting in
respect of the Rights Issue and does not propose to effect any offer of
rights pursuant to the London Gazette.

The Rights Issue has been fully underwritten by the Underwriter.

The launch of the Rights Issue is conditional upon, inter alia, the Scheme
becoming effective and the Confirmation Order becoming a Final Order.

The Rights Issue is expected to be launched (subject to the relevant
conditions being satisfied) following the date upon which the Scheme becomes
effective (which is now expected to be December 1, 2003) and prior to the
date upon which the Plan is implemented (which is now expected to be on or
about January 12,
2004).  As is set out in this document, one of the principal objectives of
the Rights Issue is to enable the Group to settle pursuant to the Plan the
allowed claims of general unsecured Creditors in cash on the Plan Effective
Date and to redeem certain loan stock issued to Equity Office Properties at
the same time.

If the Rights Issue is launched:

(a) It is expected that Provisional Allotment Letters will be
    dispatched to Qualifying non-CREST Shareholders and
    Qualifying Warrant Holders on December 4, 2003;

(b) It is expected that the stock accounts of Qualifying CREST
    Shareholders will be credited with entitlements to Nil Paid
    Rights with effect from 8.00 a.m. on December 5, 2003; and

(c) Nil paid trading in the Rights Shares is expected to
    commence on December 5, 2003.

All of the dates mentioned throughout this announcement, the Prospectus and
in the Provisional Allotment Letter may be adjusted by Regus Group with the
agreement of the Underwriter, in which event details of the new dates will
be notified to the U.K. Listing Authority and to the London Stock Exchange.

Regus Group published supplementary listing particulars and a Rights Issue
prospectus on November 13, 2003.  The documents are available to the public
for inspection at the Document Viewing Facility, 25 The North Colonnade,
Canary Wharf, London E14 5HS.

Regus Group

Regus Group is the world's largest provider of serviced offices.  With more
than 400 business centers in over 200 cities, Regus Group serves 60,000
customers across some 50 countries on a daily basis.  Regus Group is also
the world's largest independent provider of videoconferencing facilities and
is a global leader in meeting rooms, virtual offices and related business
services.  The Group was established in Brussels, Belgium, in 1989.

Reasons for the Rights Issue

There are four principal reasons for effecting the Rights Issue.

Settlement of allowed claims of general unsecured Creditors in cash

It is expected that the Rights Issue will enable the Group, upon the
implementation of the Plan (which is now expected to take place on or about
January 12, 2004), to settle pursuant to the Plan the allowed claims of
general unsecured Creditors in cash and also to redeem certain loan stock
issued to Equity Office Properties.  If the Group can settle the allowed
claims of general unsecured Creditors in cash, the Group will not need to
issue any Shares and/or CULS to Creditors upon implementation of the Plan.

Strengthen the Company's balance sheet

In addition to the above, the Rights Issue will provide additional working
capital for the Group and strengthen the Company's balance sheet.

Increase in number of Shares in public hands

The third reason is that the percentage of Shares in public hands is
expected to increase so as to ensure compliance with the Listing Rules as a
result of effecting the Rights Issue and the conditional firm placing
arrangements described in this document.

Encourage institutional investment in the Company

The sub-underwriting arrangements have involved predominantly institutional
investors.  This is expected to encourage continued institutional investment
in the Company.

Financial Background and Current Trading and Prospects

On August 29, 2003, Regus announced its interim results for the six-month
period ended June 30, 2003.  On that date it was announced that:

(a) The Group continued to make steady progress during the six-
    month period ended June 30, 2003.  In late December 2002,
    Regus successfully recapitalized its business through the
    sale of a majority interest in its U.K. operations.  This
    placed Regus on a firm financial footing allowing management
    to focus its attention elsewhere during the first half of
    2003;

(b) In mid-January (2003), Regus filed for Chapter 11 creditor
    protection under the Bankruptcy Code in order to reorganize
    the Group's principal loss-making operations in the U.S.
    Regus was the first listed British company to take this
    radical step and was pleased to announce the successful
    completion of that reorganization process and its planned
    exit from Chapter 11.  During the period, Regus also
    reorganized some of its smaller operations elsewhere around
    the world;

(c) As a result of the completion of the reorganization process,
    the Group as a whole has moved to cash break-even at the
    operating level on a global basis;

(d) Regus has also seen other positive signs.  Inquiry levels
    and the contracted forward order book remained strong and
    new orders for workstations in the second quarter were up 8%
    on the first quarter.

    During the half-year ended 30 June 2003, major corporate
    outsourcing deals totaling approximately GBP30 million were
    transacted with leading companies such as IBM, Starbucks,
    Xerox, Kodak and Oracle.  Regus' key indicator of revenue
    per available workstation at GBP2,213 was up 5% on the first
    half of last year.  However, as a result of the
    reorganization in the U.S., overall turnover at GBP129
    million was down slightly (4%) on the first half of 2002;

(e) At June 30, 2003, cash at bank totaled GBP49.5 million of
    which GBP21.6 million was free cash.

On October 3, 2003 Regus announced, in a trading update, that, at constant
exchange rates, revenues for September 2003 showed an increase of GBP0.9
million over August 2003, the largest month to month increase since March
2001.  Based on inquiry levels and the contracted order book of the Group,
the Board believes the Group can make further progress in the fourth quarter
of 2003.  Other than as set out above, trading and prospects are in line
with the Regus announcement on August 29, 2003.

Use of Proceeds arising from the Rights Issue

Assuming that the Rights Issue is effected in accordance with the Board's
expectations, the Group intends to apply approximately GBP28,000,000 of the
net proceeds of the Rights Issue:

(a) To the cash settlement pursuant to the Plan of the allowed
    claims of general unsecured Creditors upon the Plan being
    implemented (which is now expected to take place on January
    12, 2004); and

(b) At the same time, to redeem certain loan stock issued to
    Equity Office Properties.

After applying this amount for such purposes, the Board intends to apply the
remaining balance of the net proceeds of the Rights Issue for Group working
capital purposes and to strengthen the Company's balance sheet.

Dividends

Regus has not paid or declared any dividends on the Shares since the initial
public offering in respect of the Shares in October 2000.  Notwithstanding
the Rights Issue, Regus Group currently expects to retain future earnings,
if any, to finance the growth and development of its business.  Therefore,
Regus Group does not anticipate paying cash or other dividends on Shares in
the foreseeable future.  Any decision by the Directors to recommend the
payment of a dividend in the future will reflect cash flow and desired
capital structure as well as future growth opportunities.

Principal Terms of the Rights Issue

The Board proposes to issue Shares in connection with the Rights Issue in
order to raise up to approximately GBP55,000,000 (GBP52,000,000, net of
expenses).  The Issue Price of 28 pence per Share represents a 18.55%
discount to the closing middle market price of 34.375 pence per share in
Regus on November 12,
2003.

The Shares are expected to be offered by way of rights to Qualifying
Shareholders and Qualifying Warrant Holders on this basis:

1 Share at 28 pence per Share for every 3 Shares held and registered (or in
relation to Warrant Holders deemed by virtue of the Prospectus to be held
and registered) in their name at the Record Date.  For the purposes of the
entirety of this announcement, Warrant Holders will be deemed to hold, and
be the registered owners of, the number of Shares which they would acquire
if they exercised their Warrants in full on the Record Date.

Entitlements to fractions of Shares will be rounded down to the nearest
whole number of Shares and will not be allotted to Qualifying Shareholders
or Qualifying Warrant Holders but will, if possible, be sold on the market
for the benefit of the Company.  Accordingly, Shareholders holding (and
Warrant Holders deemed to be holding) fewer than 3 Shares will not be
entitled to subscribe for any Shares.

The latest time and date for acceptance and payment in full under the Rights
Issue is 9.30 a.m. on December 29, 2003.

The Company has arranged for the Rights Issue to be underwritten in full in
order to provide certainty as to the amount of capital to be raised.
Certain Regus Shareholders (including Maxon Investments) have undertaken to
the Company and the Underwriter not to take up rights pursuant to the Rights
Issue and the Underwriter has placed the Shares the subject of these
undertakings (which amount to in aggregate 153,949,164 Shares) with certain
institutional investors on a firm conditional basis.

The launch of the Rights Issue is conditional upon (amongst other things)
the Scheme becoming effective by not later than 8.00 a.m. on December 1,
2003 (or such later time and/or date as the Company and the Underwriter may
agree) and the Confirmation Order becoming a Final Order by not later than 5
p.m. on
December 4, 2003 (or such later time and/or date as the Company and the
Underwriter may agree).  If, subject to (amongst other things) those
conditions, the Rights Issue proceeds, Provisional Allotment Letters are
expected to be dispatched on December 4, 2003.

The Company expects Admission of the Shares offered pursuant to the Rights
Issue to become effective and dealings in those Shares, nil paid, to
commence on December 5, 2003.

The Rights Issue is expected to result in the issue of up to 195,873,430
Shares (representing approximately 25% of the issue share capital of Regus
Group immediately after the implementation of the Scheme, as enlarged by the
Rights Issue).  The Shares to be offered pursuant to the Rights Issue will,
when issued and fully paid, rank equally in all respects with the Shares to
be issued upon the implementation of the Scheme and/or the Plan (if any).

Expected Timetable of Principal Events

Date for the Court Hearing of the petition to sanction the Scheme: November
28, 2003

Last day of dealing in, and for registration of transfers of, shares in
Regus: November 28, 2003

Scheme Record Time
6:00 p.m. on November 28, 2003

Effective Date of the Scheme
7:00 a.m. on December 1, 2003

Delisting of shares in Regus; Shares to be issued under the Scheme admitted
to the Official List; crediting of Shares to CREST accounts and dealings in
Shares issued pursuant to the Scheme commence on the London Stock Exchange
8:00 a.m. on December 1, 2003

Record date for the Rights Issue close of business on
December 1, 2003

Dispatch of Provisional Allotment Letters
December 4, 2003

Dealings in Shares commence, nil paid
8.00 a.m. on December 5, 2003

Latest time and date for splitting PALs
3.00 p.m. on December 23, 2003

Latest time and date for acceptance and payment in full
9.30 a.m. on December 29, 2003

Latest time and date for registration of renunciation
9.30 a.m. on December 29, 2003

Date for crediting of CREST member accounts
December 30, 2003

Dispatch of definitive share certificates for Shares offered pursuant to the
Rights Issue in certificated form
By January 10, 2004

Proposed new implementation date of the Plan
on or about January 12, 2004

CONTACT:  REGUS PLC
          Stephen Jolly, Group Communications Director
          Phone: 01932 895138

          KBC PEEL HUNT LTD.
          David Davies/Julian Blunt
          Phone: 020 7418 8900

          FINANCIAL DYNAMICS
          Richard Mountain/David Yates
          Phone: 020 7269 7291


ROYAL MAIL: Profit Does Not Mean Turnaround, Says Chairman
----------------------------------------------------------
Royal Mail made a GBP3 million profit before tax in the first half, its
first in five years.  The underlying performance showed a GBP55 million
profit on the company's day-to-day operations, compared to a GBP147 million
loss in the same period a year ago, although the trading profit amounted to
a return of just 1.3% on the external turnover in the half-year of GBP4,120
million.

Royal Mail's return to profitability comes at exactly the mid-point of the
three-year renewal plan.  In the first half of last year it made a GBP542
million pre-tax loss.

Commenting on the latest figures, the Chairman, Allan Leighton, said, "This
is welcome news but Royal Mail has not yet achieved a turnaround.  We've got
our heads above water again but there is still a long way to go before we
achieve sustainable profitability.

"Crucially, Royal Mail has still not implemented key operational changes in
most of the letters business."

A 1p rise in basic First and Second Class postage in May has been the prime
driver pushing the profit on operations in the letters business to GBP161
million in the first half of the year.

But Mr. Leighton said: "We did not earn this profit from efficiency gains
through much-needed operational changes.  Royal Mail is facing very heavy
additional costs.  In October, we paid the first 3% of a 14.5% pay increase
to Royal Mail's 165,000 postmen and women, and we have to cover the cost in
excess of GBP340 million a year for this higher pay package.  In addition,
we will be making increased payments of significantly more than GBP100
million a year to ensure the pension fund continues to meet all its
obligations.

"We have to earn this money -- nearly half a billion pounds - to keep the
renewal plan on track.  The key task for the rest of this year is to achieve
the operational changes in Royal Mail as rapidly as possible by moving to a
single daily delivery, improving the efficiency of the mail centers and
streamlining the transport operation.  We can't afford any delay."

The Post Office and Parcelforce Worldwide both made significant progress in
the six-month period to September 28 but they remained loss making.

Royal Mail's Chief Executive, Adam Crozier, said: "The letters business is
the sector where we need to make the biggest operational changes yet it's
the area of the renewal plan where we have made the least progress.

"The letters business profit is not surprising as the postage price rise
boosted revenue by nearly GBP90 million in the half year.  The sting is that
the rise is part of a three-year price control and prices will fall in real
terms over the next two years under the regulator's RPI-1% formula.

"Getting the operational changes we need in the letters business is the only
way we can deliver long-term, sustainable improvements in customer service,
while generating sufficient cash to run our business."

Mr. Crozier said the unofficial strike action, following the half-year, in
October and early November was a setback for everyone in the company, as
well as hitting millions of customers who depend on Royal Mail.  The impact
of the strike action has not been reflected in the results for the first
half of the year.

"We must now rebuild customer confidence in Royal Mail in addition to the
existing work of pressing ahead with the renewal plan," he said. "I know
that also means rebuilding confidence among some of our employees in the
company but we're determined to achieve our goal of making Royal Mail a
great place in which to work."

The unofficial strike has inevitably made it harder for Royal Mail to hit
its customer service targets this current year.  That, in turn, increases
the risk of a further fine by the postal regulator, Postcomm, cautioned Mr.
Crozier.

The biggest long-term risk to Royal Mail remained excessive regulation.  "It
's crucial the regulator takes the right decision over coming weeks on
access arrangements," said Mr. Crozier.

"We want to see an outcome that increases choice for customers and creates a
sustainable industry solution while giving Royal Mail a fair price for
delivering letters which have been collected by rivals.  Discussions with
the Regulator continue as part of the consultation process.  We are
vigorously defending our position that access arrangements should have a
broadly neutral impact on our finances instead of under Postcomm's published
proposal -- a GBP650 million reduction in profitability over a three-year
period.  If the published proposal remains unchanged, access will destroy
Royal Mail's ability to continue providing a one-price-goes-anywhere service
to the U.K.'s 27 million addresses," he added.

Parcelforce Worldwide's losses on operations were slashed by 40% -- down to
GBP59 million in the half year, compared to GBP98 million in the same period
a year ago.  Mr. Crozier said the performance showed the business was now
earning real benefits from its restructuring, which has resulted in a focus
entirely on handling express, time-guaranteed parcels for business
customers.  The aim remains to deliver a profit before interest and tax next
year.

Post Office Limited's Chief Executive, David Mills, said "substantial
progress" had been made towards the goal of putting the network on to a
long-term, sustainable footing.  It had reduced its loss to GBP91 million in
the half year, a 13% improvement driven mainly by cost reductions.

Nearly 500 urban branches were closed as part of a managed program to reduce
the size of the urban network by some 3,000 offices to end the current
difficulties caused by too many urban offices chasing too little business,
said Mr. Mills.

He said: "Last month, Post Office Limited took another significant step
forward to increase the scope of its business with the announcement of a
joint venture with the Bank of Ireland.  Post Office branches will begin to
offer a range of new financial services, including personal loans, motor
insurance and credit cards, all under the trusted Post Office brand."


SOMERFIELD PLC: Sales Growth Slows Down this Year
-------------------------------------------------
Somerfield announces its second quarter trading statement in respect of the
like-for-like sales performance for the interim period of 28 weeks ended
November 8, 2003.

                             % Like-for-Like Sales

Fascia          Q1          Q2          H1        Last Year

              16 weeks   12 weeks     28 weeks    28 weeks

Somerfield*     +2.0       +2.6         +2.2        +0.4

Kwik Save       -1.5       -0.2         -1.0        +1.3

Group           +0.5       +1.4         +0.9        +0.8

Kwik Save moved back into positive like-for-like sales growth towards the
end of the first half.

Commenting on the performance John von Spreckelsen, Executive Chairman,
said: "The performance of the Somerfield stores continued to improve,
benefiting from good growth achieved from the refit program.

"Similarly, in Kwik Save, the store investment program has been rolled out
to 32 stores in the first half of the year (14 trial stores at the end of
last year) and are showing encouraging growth.  However, this represents
only a small part of the overall Kwik Save estate of 649 stores.  The
renewal program for both fascias is continuing with pace."

Interim results will be published on 21st January 2004.

                              *****

Electronic top up of mobile phones has largely replaced phone card sales.
If the full value of the top up sales was recorded within sales, rather than
the commission element, like-for-like sales for the first half would have
shown an uplift to 2.8% for the Somerfield fascia and 1.2% for the Group.

CONTACT:  CARDEWCHANCERY
          Phone: 020 7930 0777
          Anthony Cardew or Sofia Rehman

          SOMERFIELD PLC
          Phone: 0117 935 7216
          John von Spreckelsen, Executive Chairman
          Steve Back, Group Finance Director


YELL GROUP: Posts GBP89.2 Million After-tax Loss
------------------------------------------------
Review of Operating Performance

Turnover During the first half of this year, group turnover increased 7.1%
to GBP568.6 million, or 10.6% at a constant exchange rate, from GBP530.9
million last year.

U.K. operations

U.K. turnover increased 2.7% to GBP314.6 million in the first six months and
excluding discontinued products turnover rose by 3.4% from last year.
Printed directories turnover grew 3.0% to GBP295.2 million, after the impact
of the 4.7% price reduction that Yellow Pages is subject to under the RPI-6%
regulation.  In the second quarter, our London Central directory saw lower
turnover mainly as a result of a reduction of its sales from neighboring
directory areas.  Underlying growth of books excluding London Central was
3.9%, with the other metro directories performing in line with non-metro
directories.
Our campaigns to attract new customers again raised the number of unique
advertisers.  We gained 56,574 new advertisers compared with 51,612 for the
same period last year, increasing the total by 7.6% to 250,621 unique
advertisers.

As expected, this focus on new advertisers resulted in lower yield, although
our experience is that the value of retained new advertisers grows over
future years.

This, together with the anticipated reduction in growth in the uptake of
color advertising following its first full year of introduction, the
performance of the London Central directory and the 4.7% price reduction,
resulted in a 4.2% decrease in turnover per unique advertiser to GBP1,178.

Yell.com grew turnover by 17.3% to GBP11.5 million on the back of strong
growth in the number of advertisers and usage.  This increase was somewhat
offset following the sale of Yell Data, our data-service business, and the
ending of our contract with BT to sell advertising in their phone books.

U.S. operations

U.S. turnover, at GBP254.0 million increased 21.3% at a constant exchange
rate, or 13.1% after taking into account the GBP18.4 million-reduction in
turnover as a result of the weaker U.S. dollar.  The effective exchange
rates were approximately $1.62:
GBP1.00 against $1.51: GBP1.00 in the previous year.

Unique advertisers increased by 6.4% to 209,866 with average turnover per
unique advertiser up 14.0% to $1,960.

Same-market growth was 9.3%, up from 4.5% last year.  Excluding the
Manhattan directory published in the first quarter due to its unique market
conditions, same-market growth was 10.5%, up from 6.2% last year.

The former McLeod directories are now achieving same-market growth in line
with the rest of Yellow Book, excluding Manhattan, reflecting the expected
benefits of integration.  We relaunched four former McLeod directories and
their turnover achieved growth in excess of 40%. There is one more relaunch
planned for the third quarter.

In addition to same-market growth, Yellow Book's turnover growth included
the launch of three new directories (contributing 1.5% to the growth), one
directory publishing for the first time after acquisition and the inclusion
of a full six months of the McLeod and NDC acquisitions (contributing 12.7%
to the growth).  This was partially offset by the rescheduling of a few
directories to future periods (reducing growth by 2.4%) for inclusion in
rescopes and to balance production schedules as a result of the integration
of the former McLeod directories.
EBITDA before exceptional costs Group EBITDA increased 13.3% to GBP187.6
million, or 15.7% at a constant exchange rate.  The Group EBITDA margin
increased 1.8 percentage points to 33.0%, reflecting a strong trend of
rising margins in the US as our directory portfolio develops and integration
benefits are realized.

U.K. EBITDA rose 3.0% to GBP128.9 million, including the continued progress
of Yell.com, which increased EBITDA to GBP2.1 million from a loss of GBP0.3
million in the same period last year.  U.K. EBITDA margin was 41.0%,
compared to 40.9% last year.

U.S. EBITDA was GBP58.7 million, an increase of 45.3%, or 55.2% at a
constant exchange rate.  The U.S. EBITDA margin increased from 18.0% to
23.1%.

Operating cash flow

Net cash inflow from operating activities, before exceptional costs and
after capital expenditure, was GBP153.7 million, compared with GBP143.9
million last year.  We converted 81.9% of EBITDA before exceptional items to
cash.

NET RESULTS

Profit after tax

Profit after tax before exceptional costs was GBP22.1 million, compared with
a loss of GBP17.3 million last year.  As well as EBITDA growth, this
reflects lower interest payments arising from the new capital structure put
in place at the time of the IPO on July 15, 2003.  Net interest payable
before exceptional costs was GBP88.2 million, compared with GBP115.8 million
last year.

Taxation before exceptional costs was GBP16.7 million this period, compared
with GBP7.4 million last year.

The loss after tax and after exceptional costs was GBP89.2 million, compared
with a loss of GBP30.0 million last year.

Exceptional costs

Exceptional costs incurred before tax during the period amounted to GBP148.5
million of which GBP71.2 million was incurred in the second quarter.  Of
these half-year costs, GBP63.0 million were cash costs and GBP85.5 million
were non-cash costs.  The breakdown is:

Cash costs

(a) GBP28.9 million for management fees payable to previous
    owners upon IPO

(b) GBP14.4 million for fees and commissions

(c) GBP19.7 million for premiums paid on early redemption of
    high-yield debt

Non-cash costs

(a) GBP49.3 million expensed for employee incentive and share
    schemes

(b) GBP36.2 million for the accelerated amortization of
    financing fees

The bulk of these exceptional costs arose from the structure of the buy-out
of Yell from BT in 2001 and establishing the current capital structure.  The
recognition of these costs was triggered by this year's IPO.

In addition, GBP23.9 million of fees, payable primarily to advisers, were
charged to the share premium account.

Earnings per share

The IPO had a significant impact on earnings per share.  Pro forma earnings
per share was 12.3 pence on a diluted basis before exceptional costs and
amortization.  Basic loss per share for the period was 20.0 pence.

GLOBAL OFFER AND REFINANCING

On July 15, 2003, we raised GBP433.6 million (gross proceeds) through a
global offer of shares to institutional investors.  As a result of the IPO,
we also refinanced our senior bank facility on July 15, 2003 and redeemed
35% of our high-yield notes on
August 18, 2003.  Net debt on a pro forma basis at the beginning of the year
was approximately GBP1,340 million and has since been reduced to GBP1,227
million at September 30, 2003.  The composition of our debt partially hedges
exchange rate fluctuations, because 39% of our net debt and a similar
proportion of our net interest expense are denominated in U.S. dollars,
thereby reducing our U.S. dollar EBITDA exposure by approximately 40%.

DIVIDEND

As declared in the Listing Particulars relating to our IPO, the total
dividend for the current year will be around GBP63 million to be paid in the
approximate ratio of one-third interim and two-thirds final.

In line with this, an interim dividend of 3.0 pence per share will be paid
on December 21, 2003 to shareholders registered on November 21, 2003.

OUTLOOK

These results, coupled with good forward visibility, give confidence that
Yell is well on track to meet full-year expectations.

To see full copy of financial results:
http://bankrupt.com/misc/Yell_Results.pdf


                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and
Beard Group, Inc., Frederick, Maryland USA.  Larri-Nil Veloso, Ma. Cristina
Canson, and Laedevee Gonzales, Editors.

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

This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
photocopying) is strictly prohibited without prior written permission of the
publishers.

Information contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year, delivered via
e-mail.  Additional e-mail subscriptions for members of the same firm for
the term of the initial subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *