/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/041112.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, November 12, 2004, Vol. 5, No. 225 Headlines C Z E C H R E P U B L I C ROSTROJ ROUSINOV: New Owner Known Before Year Ends F R A N C E ALCATEL: Rating Upgraded to 'BB'; Outlook Stable AMOR FRANCE: Court Ends Misery with Liquidation Order BTP: Enters Receivership EURO DISNEY: Full-year Net Loss Surges to EUR145.2 Mln GOUT: Under Observation Until January Next Year TEINTURERIE POTET: Court Hires Receiver G E R M A N Y AMB OSTERBURG: Claims Deadline Expires Later this Month CAESAR CONSULTING: Administrator Takes over Operations COMMERZBANK AG: Fitch Welcomes Restructuring; Affirms Ratings DEK WARENKONTOR: Creditors' Claims Due End of Month DIEFENTHALER GMBH: Creditors Have Until Next Week to File Claims DRUCKEREI STROBACH: Succumbs to Bankruptcy EASYBYTES GMBH: Creditors' Meeting Set December EURO BROT: Applies for Bankruptcy Proceedings EURO STAR: Under Bankruptcy Administration GPC BIOTECH: Nine-month Net Loss Balloons to EUR26.1 Million HANS EICHNER: Creditors' Meeting Set December HORNITEX WERKE: Pfleider to Redeem MDF Plant from Receiver JENOPTIK AG: Posts EUR18 Million Loss for First Nine Months LEHMANN AUTOMOBILE: Creditors' Claims Due Later this Month MOBELN + WOHNACCESSOIRES: Court Names Provisional Manager MS TRANSPORT: Frankfurt Court Appoints Administrator PROSIEBENSAT.1 MEDIA: Net Profit Jumps to EUR75.3 Million RHO-BAU GMBH: Succumbs to Bankruptcy SAXONLASER GMBH: Sets Creditors' Meeting January H U N G A R Y HUNGARIAN TELEVISION: To Introduce New Channel Next Year PILIS-INVESTOR: Creditors to Recoup Only a Quarter of Investment I R E L A N D ELAN CORPORATION: To Attend Healthcare Conference in Geneva I T A L Y ALITALIA SPA: Govt Promises to Privatize Airline Next Year PARMALAT URUGUAY: Sale to German Investors a Done Deal N O R W A Y STOLT-NIELSEN: Credit Ties with Stolt Offshore End P O L A N D AGORA SA: Reverses Last Year's Third-quarter Loss DAEWOO-FSO: Sale to Ukraine's AvtoZAZ Imminent NETIA SA: To Repay PLN11.9 Mln Obligations Ahead of Maturity NETIA SA: Reports PLN113.4 Million Year-to-date Net Profit S W E D E N LM ERICSSON: Rating Upgraded to 'BB+' on Improved Results S W I T Z E R L A N D BARRY CALLEBAUT: Net Profit Up 12.0% to CHF115.6 Million U N I T E D K I N G D O M ABB EUROFIN: Gives Creditors Until December to File Claims ASHFORD GREAT: Calls in Joint Liquidators from Deloitte & Touche ATCHLEY LIMITED: Sets General Meeting December A TO Z: Restaurants for Sale BACKSAFE LIMITED: Names G. F. Davis Liquidator BALLIVY LIMITED: Members General Meeting Set December BARTON BENDISH: Liquidator's Final Report Out Next Month BED & BREAKFAST: Creditors' Meeting Set End of November B E L DEVELOPMENTS: Calls Meeting to Hear Liquidator's Report CABLE & WIRELESS: Chairman Bares Restructuring Plans CABLE & WIRELESS: Chief Operating Officer to Resign Next Month CARIOCCA TRAINING: Owners Opt to Dissolve Business COLLEGIUM 134: Sets Deadline for Proofs of Claim DEUTSCHE SCOTLAND: Appoints Liquidators from KPMG DOLER LIMITED: Calls in Liquidator from Haines Watts FAIRWOOD DIESEL: Members Final Meeting Set HSC GC: Liquidator to Submit Final Report Mid-December ILFORD IMAGING: Creditors' Meeting Set Next Week JAMES GATTENS: Deadline for Filing of Claims Set LASERPILOT LIMITED: Calls in Liquidator LAWSON MARDON: Sets Final Meeting of Members LOOKSMART UNITED: Names Ernst & Young Liquidator LOTUS WATER: GMAC Commercial Appoints Begbies Traynor Receiver METASOLV HOLDINGS: Names Joint Liquidators from Ernst & Young NEWBOURNE PLC: Members Agree to Wind up Company NORCAST LIMITED: Sets Creditors Meeting Next Week PLUS WALL: Names Smith & Williamson Administrator QUADRANGLE GROUP: Creditors' Meeting Set Monday RANKINS FRUIT: KPMG Liquidator Enters Firm SCP (VICTORIA SQUARE): Names PwC Liquidator STEWART PLASTICS: Hires Begbies Traynor as Administrator SULLIVANS GROUP: In Administrative Receivership UNITED SYSTEMS: Names BDO Stoy Hayward Administrator VICTORIA ACQUISITION: Senior Notes Rated 'B'; Outlook Stable WESLEYAN HOME: Calls in Joint Liquidators from PwC YELL GROUP: Reports GBP52.7 Million Pre-tax Profit ********* =========================== C Z E C H R E P U B L I C =========================== ROSTROJ ROUSINOV: New Owner Known Before Year Ends -------------------------------------------------- The Brno Regional Court is inviting bidders for bankrupt engineering group Rostroj Rousinov, Czech News Agency says. Presiding judge Jan Kozak says the price would be the only criterion for the auction. The court will open the bidding envelops on December 14 and might choose a new owner for Rostroj before the year ends. Rostroj Rousinov was declared bankrupt on August 11 after receiving around 80 bankruptcy petitions. The company employs around 91 people and is considered as an important regional employer in the Vyskov region. CONTACT: ROSTROJ ROUSINOV a.s. Mlekarska 1 683 01 Rousinov Phone: 517 305 111 517 305 118 517 305 152 Fax: 517 305 119 517 305 153 E-mail: info@rostroj.cz obchod@rostroj.cz Web site: http://www.rostroj.cz =========== F R A N C E =========== ALCATEL: Rating Upgraded to 'BB'; Outlook Stable ------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on France- based telecommunications equipment supplier Alcatel to 'BB' from 'BB-', following the company's release of its third-quarter 2004 results. The outlook is stable. At the same time, Standard & Poor's affirmed its 'B' short-term corporate credit rating on Alcatel. At Sept. 30, 2004, Alcatel had gross debt outstanding of EUR4.7 billion (US$6.0 billion), which included EUR4.2 billion of notes. "The upgrade reflects Standard & Poor's view that the global telecoms equipment market is set to grow at single-digit levels during 2005, supported by the restored financial soundness of most telecoms operators, the implementation of new technologies, and an accelerated competitive environment," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The rating action also reflects the company's stabilized sales and its adequate positioning from a cost structure and business strategy standpoint, which enables it to maintain a solid market presence across most market segments, high single-digit operating margins, and positive funds from operations," he added. The company's credit quality is underpinned by its strong cash levels, well-extended debt maturities, and good access to capital markets. The ratings on Alcatel remain constrained, however, by the generation of negative free cash flow, the company's moderate profitability by industry standards, the continued sales weaknesses in the Fixed Communications division, and Alcatel's relatively late arrival in the third-generation (3G) mobile equipment market. Intense price pressures should remain a constant feature across Alcatel's main markets. "Standard & Poor's expects that Alcatel's revenues will be at least stable or grow moderately in 2005; that operating margins will remain in the high single-digit range; and that funds from operations will remain positive, with Alcatel demonstrating progress toward achieving positive free cash flow," added Mr. de Torres Zabala. We also expect Alcatel to preserve a strong cash position, at least until the company starts generating solid positive free cash flow. Ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com. It can also be found at http://www.standardandpoors.com. Alternatively, call one of the following Standard & Poor's numbers: London Ratings Desk (44) 20-7176-7400; London Press Office Hotline (44) 20-7176- 3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017. Members of the media may also contact the European Press Office via e- mail: media_europe@standardandpoors.com. CONTACT: STANDARD AND POORS RATING SERVICES Group E-mail Address CorporateFinanceEurope@standardandpoors.com CONTACT: ALCATEL 54, rue La Boetie 75008 Paris, France Phone: +33 1 40 76 10 10 Fax: +33 1 40 76 14 05 Web site: http://www.alcatel.com AMOR FRANCE: Court Ends Misery with Liquidation Order ----------------------------------------------------- The Paris commercial court has placed clothing firm Amor France S.A. into liquidation, Les Echos says. Amor's future has been in doubt for years now, as directors have time and again failed to find investors or buyers. The company blames fierce competition from foreign rivals and the economic downturn since 2001 for its woes. The liquidation will affect 160 employees in Chatellerault and 15 more in Chasseneuil-du-Poitou. The company manufactures top- of-the-range clothing, belts, handbags and shoes. CONTACT: AMOR FRANCE S.A. 49 Rue Servan 75011 Paris BTP: Enters Receivership ------------------------ The Lyon commercial court has placed construction and public works group BTP into receivership, Les Echos says. In 2003, BTP booked EUR.53 million in losses and EUR40.4 million in turnover. CONTACT: BTP 7 Rue Augustin Riffault 14540 Soliers EURO DISNEY: Full-year Net Loss Surges to EUR145.2 Mln ------------------------------------------------------ Euro Disney S.C.A., the operating company of Disneyland Resort Paris, reported on Nov. 9 its consolidated financial results for the fiscal year ended September 30, 2004. Revenues increased slightly to total EUR1,048.0 million in fiscal year 2004, as increased spending by theme park visitors and hotel guests was mostly offset by lower hotel occupancy rates, as well as an anticipated decline in real estate development revenues. Year-over-year attendance remained flat at 12.4 million. The Group incurred an operating loss of EUR23.9 million in fiscal year 2004, which was EUR56.0 million below the EUR32.1 million of pro-forma operating income recorded in the prior year (the pro-forma presentation reflects a change in accounting method that significantly affected the scope of consolidation in fiscal year 2004, as discussed below). The increased loss reflected a below inflation increase in certain operating costs and expenses and the resumption of accruals for royalties at full rates and management fees, following the waiver by The Walt Disney Company (TWDC) of royalties and management fees in the last three quarters of fiscal year 2003. The increase in costs and expenses also reflected higher marketing and sales spending partially offset by reduced general and administrative expenses. Net loss increased from EUR58.3 million (on a pro-forma basis) in fiscal year 2003 to EUR145.2 million in fiscal year 2004, as a result of the lower operating margin as well as significant exceptional items. The Group generated EUR124.6 million of operating cash flow in fiscal year 2004 despite the net loss, as a significant portion of the Group's operating expenses consist of non-cash depreciation and amortization charges. In addition, the Group's working capital requirements decreased as accrued royalties and management fees for fiscal year 2004 are not payable until fiscal year 2005 and accrued interest was deferred on the CDC loans for Walt Disney Studios. Under the terms of the Memorandum of Agreement with TWDC and the Company's lenders relating to the Group's financial restructuring (the MOA), fiscal year 2004 royalties and management fees will be paid when the restructuring is implemented. Change in Accounting Principle Effective October 1, 2003 (the first day of fiscal year 2004), the Group adopted new accounting rules mandated by Article 133 of the Financial Security Law (Loi de Securite Financiere) with respect to the consolidation of special purpose financing companies that are not legally controlled by the Group. Under these new rules, the financing companies, from which the Group leases a substantial portion of its operating assets (the Financing Companies), have been included in the Group's consolidated financial statements. In the past, lease payments to the Financing Companies were expensed as incurred, along with disclosure by the Group of the leasing arrangements, contractual commitments for lease rentals, and the related debt obligations of the Financing Companies. As a result of the new consolidation rules, these operating assets are now consolidated, resulting in increased assets and borrowings. The Group's receivables from the Financing Companies have been eliminated in consolidation. In addition, shareholders' equity has been reduced, reflecting primarily depreciation charges (incurred prior to the implementation of the change in accounting principle) that exceeded the lease payments expensed for the same periods. The accounting change also affects the classification and amount of costs on the income statement, with increased operating expenses, depreciation and interest expense, and reduced lease rental expense (consequently, the income statement line item formerly entitled "lease and net financial charges" has been renamed "net financial charges"). The accounting change does not affect the legal structure, financial position or cash flows of the members of the consolidated group. A full copy of this press release is available free of charge at http://bankrupt.com/misc/EuroDisney_2004.pdf. CONTACT: EURO DISNEY S.C.A. BP 100 77777 Marne-la-Vallee Cedex 4, France Phone: +33-1-64-74-40-00 Fax: +33-1-64-74-59-69 Web site: http://www.eurodisney.com GOUT: Under Observation Until January Next Year ----------------------------------------------- The Castres commercial court placed knitwear-maker Gout into compulsory receivership Monday, Les Echos says. The court likewise put the pullover company under observation until January 21, 2005. The past three years prices of Gout's products have fallen by 30%, as demand steadily declined due to fierce competition from Asian counterparts. The group tried to make a turnaround by laying off 100 of its 200 employees in 2002 and relocating production to Romania, but these measures proved futile. TEINTURERIE POTET: Court Hires Receiver --------------------------------------- The Commercial Court of Dijon placed Teinturerie Potet Sarl (B 015 751 746) into receivership on October 19, 2004 and appointed Ph. Maitre receiver. Creditors are urged to submit their proofs of claim to the receiver as soon as possible. CONTACT: TEINTURERIE POTET SARL 34, Rue Berbisey 21000 Dijon Ph. Maitre, receiver 19, Avenue Albert-Camus 21000 Dijon ============= G E R M A N Y ============= AMB OSTERBURG: Claims Deadline Expires Later this Month ------------------------------------------------------- The district court of Stendal opened bankruptcy proceedings against AMB Osterburg GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 26, 2004 to register their claims with court-appointed provisional administrator Dr. Lucas F. Flother. Creditors and other interested parties are encouraged to attend the meeting on Dec. 7, 2004, 3:15 a.m. at Saal 411, Justizzentrum "Albrecht der Bar", Scharnhorststrasse 40, 39576 Stendal at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: AMB OSTERBURG GMBH Am Schaugraben 8, 39606 Osterburg Contact: Walter Rehnig, Manager Torstrasse 50, 06110 Halle Dr. Lucas F. Flother, Insolvency Manager Halberstadter Strasse 55, 39112 Magdeburg Phone: 0391/5556840 Fax: 0391/5556849 CAESAR CONSULTING: Administrator Takes over Operations ------------------------------------------------------ The district court of Berlin-Charlottenburg opened bankruptcy proceedings against Caesar Consulting Services Ltd. on Oct. 18. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 18, 2005 to register their claims with court-appointed provisional administrator Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting on Jan. 20, 2005, 9:25 a.m. at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on Mar. 17, 2005, 9:25 a.m. at the district court of Charlottenburg Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218. CONTACT: CAESAR CONSULTING SERVICES LTD. Cimbernstrasse 10, 14129 Berlin Dr. Dirk Wittkowski, Insolvency Manager Kirchblick 11, 14129 Berlin COMMERZBANK AG: Fitch Welcomes Restructuring; Affirms Ratings ------------------------------------------------------------- Fitch Ratings affirmed Commerzbank AG's ratings at Long-term 'A-', Short-term 'F2' and Individual 'C'. The Outlook on the Long-term rating remains Positive. The '1' Support rating is also affirmed. The rating affirmation follows Tuesday's announcement by Commerzbank of a EUR132 million charge for the restructuring of its investment banking division, Commerzbank Securities, resulting in the bank reporting a net loss of EUR192 million for Q3 2004. The bank also announced that it will reorganize its divisions to be more customer-driven. Although in the short- term this restructuring is weighing on the bank's bottom line profit, in the agency's view it will reduce earnings volatility and free up capital, improving efficiency and strengthening the bank's business focus toward its core retail and corporate customers. Commerzbank Securities has already reported losses in 2002 and 2003, as it was unable to achieve critical mass internationally. In light of the recent difficult capital markets, management had started to scale down its foreign and domestic operations and reorient this division toward servicing the group's retail and corporate customers. However, its cost base is still too high. It will now significantly reduce proprietary trading activities as well as production capacity outside Frankfurt. Fitch welcomes the announced downsizing of the bank's investment banking operations. The agency understands that these measures will not affect the bank's core franchise and this will be closely monitored. Underlying financial performance is showing a positive trend, as most of the bank's other divisions are benefiting from the cost savings and restructuring measures undertaken in the past two years. Excluding the one-off restructuring charge, the bank's return on equity (ROE) was burdened by negative trading result in Q3 2004 and the high costs of investment banking operations, bringing it down to a low 4.3% for the first nine months of 2004. The bank continues to concentrate on revenue growth, by building up a stronger sales culture in its retail branch network and through its lending offensive in the Mittelstand market. The integration of its remaining, customer-driven investment banking with its large corporates operations should create revenue synergies. All these measures need to feed through and should help to achieve a satisfactory level of profitability within the next two to three years, although this depends to some extent on external economic factors and market conditions. Commerzbank's Tier 1 ratio stood at 7.2% at end-September 2004, a good level in light of expected further improvements in profitability. CONTACT: FITCH RATINGS Olivia Perney Guillot, Frankfurt Phone: +49 (0) 69 76 80 76 243 Thomas von Luepke, Frankfurt Phone: +49 (0) 69 76 80 76 150 DEK WARENKONTOR: Creditors' Claims Due End of Month --------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against DEK Warenkontor GmbH & Co. Handels KG on Oct. 21. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 29, 2004 to register their claims with court-appointed provisional administrator Andreas Stratenwerth. Creditors and other interested parties are encouraged to attend the meeting on Dec. 20, 2004, 10:15 a.m. at the district court of Bielefeld, Gerichtstrasse at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DEK WARENKONTOR GMBH & CO. HANDELS KG Eckendorfer Strasse 34, 33609 Bielefeld Contact: Andreas Stratenwerth, Insolvency Manager Lemgoer Str. 4, 33604 Bielefeld DIEFENTHALER GMBH: Creditors Have Until Next Week to File Claims ---------------------------------------------------------------- The district court of Augsburg opened bankruptcy proceedings against Diefenthaler on Oct. 14. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 15, 2004 to register their claims with court-appointed provisional administrator Ulrich Guldner. Creditors and other interested parties are encouraged to attend the meeting on Dec. 7, 2004, 9:00 a.m. at Justizgebaude, Sitzungssaal 162, Am Alten Einlass 1, 86150 Augsburg at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. Diefenthaler installs garden elements. CONTACT: DIEFENTHALER GMBH Muhlstr. 31, 86707 Westendorf Phone: +49 (0) 82 73 / 99 78-0 Fax: +49 (0) 82 73 / 99 78-20 Contact: Alfons Diefenthaler, Manager Ulrich Guldner, Insolvency Manager Schertlinstr. 23, 86159 Augsburg DRUCKEREI STROBACH: Succumbs to Bankruptcy ------------------------------------------ The district court of Frankfurt am Main opened bankruptcy proceedings against Druckerei Strobach Gesellschaft mit beschrankter Haftung on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 26, 2005 to register their claims with court-appointed provisional administrator Dr. Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting on Mar. 9, 2005, 10:05 a.m. at Saal 1, Gebaude F, Klingerstrasse 20, 60313 Frankfurt am Main, statt at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DRUCKEREI STROBACH GESELLSCHAFT MIT BESCHRANKTER HAFTUNG Hanauer Landstrasse 226 60314 Frankfurt am Main Dr. Georg Bernsau, Insolvency Manager Zeilweg 42, D-60439 Frankfurt am Main Phone: 069/963761-130 Fax: 069/963761-145 EASYBYTES GMBH: Creditors' Meeting Set December ----------------------------------------------- The district court of Lubeck opened bankruptcy proceedings against Easybytes GmbH on Oct. 21. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 29 to register their claims with court-appointed provisional administrator Sven Kruger. Creditors and other interested parties are encouraged to attend the meeting on Dec. 13, 9:00 a.m. at the district court of Lubeck, Am Burgfeld 7, 23568 Lubeck at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: EASYBYTES GmbH Grapengiesserstrasse 20 23556 Lubeckvertreten Contact: Herrn Dirk Heuer, Manager Sven Kruger, Insolvency Manager Roeckstrasse 40 23568 Lubeck EURO BROT: Applies for Bankruptcy Proceedings --------------------------------------------- The district court of Hildesheim opened bankruptcy proceedings against EURO Brot GmbH on Oct. 15. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 19, 2004 to register their claims with court-appointed provisional administrator Ingo Thurm. Creditors and other interested parties are encouraged to attend the meeting on Dec. 3, 2004 9:45 a.m. at the district court of Hildesheim at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: EURO BROT GmbH Schinkelstr. 13 31137 Hildesheim Mesude Gul, Manager Doebnerstr. 9 31135 Hildesheim Ingo Thurm, Insolvency Manager Leonhardtstrasse 4 30175 Hannover Phone: 0511383960 Fax: 05113839698 EURO STAR: Under Bankruptcy Administration ------------------------------------------ The district court of Frankfurt am Main opened bankruptcy proceedings against Euro Star Cleaning Service GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 18, 2005 to register their claims with court-appointed provisional administrator Hildegard A. Hovel. Creditors and other interested parties are encouraged to attend the meeting on Mar. 15, 2005, 9:00 a.m. at Saal 2, Geb. F, Klingerstr. 20, 60313 Frankfurt am Main, statt at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: EURO STAR CLEANING SERVICE GMBH KOlner Str. 82-84, 60327 Frankfurt Phone: 069 750689 0 Fax: 069 750689 120 Web site: http://www.eurostar-cleaning.de KUrbisstr. 8, 65428 Russelsheim Hildegard A. Hovel, Insolvency Manager Raimundstr. 98, 60320 Frankfurt Phone: 069/569731 GPC BIOTECH: Nine-month Net Loss Balloons to EUR26.1 Million ------------------------------------------------------------ GPC Biotech AG on Tuesday reported its financial results for the third quarter and first nine months of 2004. Revenues decreased 44% to EUR9.1 million for the nine months ended September 30, 2004, compared to EUR16.4 million for the same period in 2003. As reported in previous releases, GPC Biotech expects a reduction in revenues from technology alliances during 2004 since several of these alliances ended in 2003 and as the Company continues to focus its strategy on discovering and developing new anticancer drugs as opposed to new technology platform alliances. The 2004 revenues were generated from the Company's ongoing alliance with ALTANA Pharma AG to build the ALTANA Research Institute in the U.S. Research and development (R&D) expenses remained relatively unchanged in the first nine months of 2004 at EUR27.7 million compared to EUR27.8 million for the same period in 2003. Despite increased drug development activities in 2004, especially related to the Company's lead drug candidate satraplatin, R&D expenses were relatively unchanged compared to the same period in 2003 due to a higher R&D headcount and a milestone payment related to the initiation of the SPARC trial in 2003. In the first nine months of 2004, general and administrative (G&A) expenses increased 10% to EUR9.3 million compared to EUR8.4 million for the first nine months of 2003. Non-cash charges for stock options and convertible bonds, which are included in R&D and G&A expenses, were EUR1.7 million in the first nine months of 2004 compared to EUR2.2 million for the same period in 2003. The Company's net loss increased 43% to -EUR26.1 million in the first nine months of 2004 compared to -EUR18.2 million for the same period in 2003. Basic and diluted loss per share was -EUR1.10 compared to -EUR0.88 for the same period in 2003. For the three months ended September 30, 2004, revenues were EUR2.6 million, compared to EUR5.2 million for the same period in 2003. R&D expenses were EUR9.4 million in the third quarter of 2004 (third quarter of 2003: EUR10.2 million). G&A expenses were EUR3.7 million in the third quarter of 2004 (third quarter of 2003: EUR3.0 million). Non-cash charges for stock options and convertible bonds, which are included in R&D and G&A expenses, were EUR0.7 million in the third quarter of 2004 (third quarter of 2003: EUR0.9 million). Net loss was -EUR9.8 million in the third quarter of 2004 (third quarter of 2003: -EUR7.7 million). Basic and diluted loss per share was -EUR0.34 in the third quarter of 2004, compared to -EUR0.37 for the same period in 2003. As of September 30, 2004, cash, cash equivalents, short-term investments and marketable securities totaled EUR144.1 million (December 31, 2003: EUR91.7 million), including EUR2.6 million in restricted cash. The cash, cash equivalents, short-term investments and marketable securities figure for 2004 includes net proceeds of approximately EUR78 million from the Company's financing activities, which were booked in the third quarter. The net cash burn was EUR28.9 million for the first nine months of 2004. Net cash burn is derived through adding net cash used in operating activities (EUR28.0 million) and purchases of property, equipment and licenses (EUR0.9 million). The figures used to calculate net cash burn are contained in the Company's unaudited interim consolidated statements of cash flows for the nine months ended September 30, 2004. Net cash burn was EUR10.5 million for the third quarter of 2004, EUR9.6 million for the second quarter of 2004 and EUR8.8 million for the first quarter of 2004. "Following the successful re-financing of our Company this summer, we have begun to use the new funds to build the Company's long-term value by systematically investing in our oncology drug pipeline," said Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer. "As part of our strategy to further enhance the commercial potential of our lead drug candidate, satraplatin, we recently opened for accrual a new clinical trial for satraplatin in combination with radiation therapy in patients with non-small cell lung cancer. We plan to conduct additional clinical trials for satraplatin in a variety of oncology indications and in combination with other anticancer treatments." Dr. Seizinger continued: "We are also aggressively advancing our two other anticancer drug development programs -- the monoclonal antibody 1D09C3 against lymphoid tumors and our novel broad- spectrum cell cycle inhibitor RGB-286199. We have recently completed pre-clinical testing with 1D09C3 and are preparing the necessary information for the regulatory authorities and ethics committees to begin human clinical studies in patients with non- Hodgkin's lymphoma and other types of lymphoid tumors in the near future. The cell cycle inhibitor program is expected to enter human clinical studies in the second half of 2005. We are confident that our achievements for the year to date have put us in a strong position to elevate the Company to the next level in our corporate development." Key Achievements for the Year to Date Corporate (a) Company listed American Depositary Shares on NASDAQ U.S. stock exchange under symbol, GPCB; and (b) Successful follow-on offering netting proceeds of approximately EUR78 million (approximately US$95 million). Lead Anticancer Drug Candidate, Satraplatin (a) Receipt of Scientific Advice letter from European central regulatory authority, European Agency for the Evaluation of Medicinal Products (EMEA). The same multi-center, multinational trial may be used as the basis for regulatory approval in both the U.S. and Europe; (b) Phase I combination study with radiation therapy in non- small cell lung cancer opened for accrual; and (c) Pre-clinical data presented at key scientific conferences (i) Demonstrating in vitro efficacy of satraplatin in tumor cells resistant to both TAXOTERE (docetaxel) and to TAXOL (paclitaxel). The Company expects that many of the patients in the SPARC Phase 3 trial will have been pre-treated with and failed on a taxane-based therapy prior to entering the study; and (ii) Demonstrating potency in killing prostate cancer cells. Several androgen-independent (i.e., hormone-refractory) prostate cancer cell lines were particularly sensitive to satraplatin. Other Development Programs (a) 1D09C3 Monoclonal Antibody (i) Presentation of pre-clinical data demonstrating the efficacy of the antibody against a variety of hematological malignancies; and (ii) Completion of pre-clinical testing with the antibody and ongoing preparation of the necessary information to provide to regulatory authorities and ethics committees to begin human clinical studies. (b) RGB-286199 cell cycle inhibitor (i) U.S. patent issued with claims covering RGB-286199, including the composition of matter of a family of cell cycle inhibitors. Claims also include pharmaceutical compositions, as well as methods of treating certain diseases, including cancer; (ii) Presentation of data showing RGB-286199 results in cell cycle arrest and apoptosis (programmed cell death) in a wide range of tumor cells in culture. (iii) RGB-286199 shown to be a potent inhibitor of all known cyclin-dependent kinases involved in controlling various key events during the cell cycle. Compound also shown to selectively inhibit other distinct kinases associated with the development of cancer. (iv) In vitro data showing RGB-286199 is active on quiescent tumor cells, in addition to tumor cells actively going through the cell cycle process, while not affecting normal resting cells under similar conditions. (v) Demonstration of in vivo efficacy, including tumor regressions, in various animal models. About GPC Biotech AG GPC Biotech AG (Frankfurt Stock Exchange: GPC; TecDAX 30; NASDAQ: GPCB) is a biotechnology company discovering and developing new anticancer drugs. The Company's lead product candidate -- satraplatin -- is currently in a Phase 3 registrational trial as a second-line chemotherapy treatment in hormone-refractory prostate cancer following successful completion of a Special Protocol Assessment by the U.S. FDA and receipt of a Scientific Advice letter from the European central regulatory authority, EMEA. The FDA has also granted fast track designation to satraplatin for this indication. Satraplatin was in-licensed from Spectrum Pharmaceuticals, Inc. Other anticancer programs in development include a monoclonal antibody and a cell cycle inhibitor. The Company is leveraging its drug discovery technologies to elucidate the mechanisms-of- action of drug candidates and to support the growth of its drug pipeline. The Company has formed successful alliances with a number of pharmaceutical and biotechnology firms. For example, the Company has a multi-year alliance with ALTANA Pharma AG to establish the ALTANA Research Institute in the U.S., which provides GPC Biotech with revenues until 2007. GPC Biotech AG is headquartered in Martinsried/Munich (Germany). The Company's wholly owned U.S. subsidiary has research sites in Waltham, Massachusetts and Princeton, New Jersey. For additional information, please visit http://www.gpc-biotech.com. Full copy of GPC Biotech's third-quarter report is available free of charge at http://bankrupt.com/misc/gpc_3q2004.pdf. CONTACT: GPC BIOTECH AG Fraunhoferstr. 20 82152 Martinsried/Munich, Germany Phone: +49 (0)89 8565-2600/-2610 Fax: +49 (0)89 8565-2600/-2610 E-mail: info@gpc-biotech.com Web site: http://www.gpc-biotech.com Martin Braendle, Senior Manager Investor Relations & Corporate Communications Phone: +49 (0)89 8565-2600/-2610 (ext. 2693) E-mail: martin.braendle@gpc-biotech.com U.S. Laurie Doyle, Associate Director Investor Relations & Corporate Communications Phone: +1 781 890 9007 (ext. 267) Fax: +1 781 890 9005 E-mail: laurie.doyle@gpc-biotech.com EURO RSCG LIFE NRP Mark Vincent, Vice President Phone: +1 212 845 4239 E-mail: mark.vincent@eurorscg.com HANS EICHNER: Creditors' Meeting Set December --------------------------------------------- The district court of Berlin-Charlottenburg opened bankruptcy proceedings against Hans Eichner Dachdeckerei GmbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 7, 2005 to register their claims with court-appointed provisional administrator Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting on Dec. 1, 2004 at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on Mar. 2, 2005, 10:35 a.m. at the district court of Charlottenburg Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218. CONTACT: HANS EICHNER DACHDECKEREI GMBH Birkenallee 11,12683 Berlin Dr. Dirk Wittkowski, Insolvency Manager Kirchblick 11, 14129 Berlin HORNITEX WERKE: Pfleider to Redeem MDF Plant from Receiver ---------------------------------------------------------- SDAX-listed Pfleiderer AG (ISIN DE0006764749) is taking over the MDF plant "Hornitex Werke Nidda Kunst-stoff- und Holzwerkstoffplatten GmbH & Co. KG" through affiliated companies. The deal is expected to take legal effect from November 15, 2004. The takeover is a so- called "assigned redevelopment" in which Pfleiderer is buying up assets of "Hornitex Werke Nidda Kunststoff- und Holzwerkstoff-platten GmbH & Co. KG". A contract to this effect was signed on November 10, 2004 with the official receiver of "Hornitex Werke Nidda Kunststoff- und Holzwerkstoffplatten GmbH & Co. KG", Dr. Werner Schreiber of the law firm Wellensiek Grub & Partners. The deal is subject to final approval by the creditors' committee of Hornitex Werke Nidda Kunststoff- und Holzwerkstoffplatten GmbH & Co. KG. In taking over production of medium density fiberboard, Pfleiderer Engineered Wood is effectively rounding off its product portfolio, enabling it to supply customers with this carrier material from own production. At the Nidda site, around 180 employees produce an annual 130,000 cubic meters of MDF for the furniture industry and for use in interior design. Spokesman of Pfleiderer's Board of Management, Hans H. Overdiek, sees the move as opening up new opportunities for the company: "By taking over MDF production at the Nidda site, we are closing a strategic gap in our product portfolio. Now we can participate in this high-growth, high earnings segment using our own production capacities in Germany. Being able to offer this special product extends our customer base in the furniture industry and specialist outlets, and will enable us to further extend our market position in Europe. Nidda is leading with regard to the development of MDF specialties, and its technological know-how will take us a big step forward in our plans for further expansion." Pfleiderer intends to grow further in the profitable MDF segment, either by making additional acquisitions, or as previously announced, by direct investment in the construction of new plants. Pfleiderer's Business Center Engineered Wood is one of Europe's leading manufacturers of carrier materials and surface finishing products -- direct coatings and high pressure laminates (HPL). As a business-to-business supplier, Pfleiderer Engineered Wood mainly directs its activities at industrial customers, dealers, specialist processing companies and architects. Pfleiderer Engineered Wood is the market leader in Germany and Poland, and one of the most profitable suppliers in the industry. CONTACT: PFLEIDERER AG Neumarkt Corporate Communication Alexandra Klemme Phone: + 49(0)9181/28-8044 JENOPTIK AG: Posts EUR18 Million Loss for First Nine Months ----------------------------------------------------------- Jenoptik Group posted an EBIT of EUR11.8 million in the third quarter 2004. Strong growth in sales and results by both business divisions Photonics and Clean Systems. Forecasts for the full year 2004 reaffirmed. The Jenoptik Group can look back over a successful third quarter. Sales and results increased sharply in comparison with the previous year, with orders reaching new record levels. The Jenoptik Group posted sales of EUR1,172.8 million, an increase of 25.7% (previous year EUR933.0 million). Both Clean Systems and Photonics increased their sales by more than 20%. With an EBIT of EUR11.8 million for the quarter (previous year - EUR13.4 million) and EUR3.3 million for the first nine months of the fiscal year (previous year -EUR26.6 million) there was a marked improvement in the earnings situation of the Jena-based technology group. The EBIT for the period January to September 2004 includes social plan costs in the Clean Systems business division in the sum of EUR9.0 million which primarily relate to the Technical Building Systems area. The Group net income for the period on a quarterly basis, at EUR1.3 million, was also positive (previous year - EUR18.7 million). The Group result for the first nine months of the fiscal year was negative as expected and came in at - EUR18.0 million (previous year - EUR38.8 million). The marked increase in the result for the period is a reflection of the improvement in the operating result. Income from the Infineon chip factory project in Dresden also had a positive impact. This project provided for the sale of the M+W Zander shares in SC300 GmbH & Co. KG, which was realized in the first quarter 2004. In addition to the social plan costs the rise in interest expenses arising from the bond issued in the autumn 2003 also impacted negatively on the result. The order intake in the first nine business months of 2004 reached EUR1,987.0 million, consequently exceeding the figure for the same period in the previous year by 34.5% (previous year EUR1,477.1 million). The Group's order backlog as at September 30 this year was EUR3,312.5 million, representing an increase of 13.5% (previous year EUR2,919.5 million). The net debt of the Jenoptik Group increased as at September 30 this year to EUR202.7 million (Dec. 31, 2003: EUR126.3 million). The main reason for this increase is the minority investment of M+W Zander together with other system suppliers in the AMD "Fab 36" chip factory in Dresden as part of the major order, which the Jenoptik subsidiary won in autumn 2003. As a result of the successful first nine months of the fiscal year and the very good order situation the Jenoptik Group is keeping to the targets for the full year 2004 formulated in April this year. Group sales are expected to clearly exceed the EUR2 billion mark. The Group operating result is expected to be between EUR45 million and EUR60 million. This assumes that all projects -- particularly in the Clean Systems business division -- will be completed and accounted for within deadlines. Both business divisions will make a contribution towards the increase in sales and results for 2004. (Figures in thousand euros) Group Jan.-Sept. 04 Jan.-Sept. 03 Sales 1,172,755 933,000 Operating income (EBIT) 3,337 -26,602 Net income for the period -17,996 -38,822 Order intake 1,987,039 1,477,141 Order backlog 3,312,537 2,919,524 CONTACT: JENOPTIK AG Investor Relations Cornelia Todt Phone/Fax: ++49(0)3641-652290/2484 Web site: http://www.jenoptik.com LEHMANN AUTOMOBILE: Creditors' Claims Due Later this Month ---------------------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against Lehmann Automobile GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 22, 2004 to register their claims with court-appointed provisional administrator Dr. Jorn H. Meyn. Creditors and other interested parties are encouraged to attend the meeting on Nov. 19, 2004, 11:05 a.m. at the district court of Hamburg Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg, Saal 1, 2. Ebene (Zi. 2.18) at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: LEHMANN AUTOMOBILE GMBH Pinneberger Strasse 4-6, 22457 Hamburg Contact: Dietmar Lehmann, Manager Dr. Jorn H. Meyn, Insolvency Manager Herrengraben 31, 20459 Hamburg Phone: 36805600 Fax: 36805368 MOBELN + WOHNACCESSOIRES: Court Names Provisional Manager --------------------------------------------------------- The district court of Karlsruhe opened bankruptcy proceedings against Mobeln + Wohnaccessoires GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 11, 2004 to register their claims with court-appointed provisional administrator Andreas Fischer. Creditors and other interested parties are encouraged to attend the meeting on Dec. 8, 2004 9:30 a.m. at the district court of Karlsruhe, Schlossplatz 23, 76131 Karlsruhe at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: MOBELN + WOHNACCESSOIRES GmbH Goethestr. 17 76275 Ettlingen Contact: Ralph Bilski, Manager Andreas Fischer, Insolvency Manager Kriegsstr. 25 76133 Karlsruhe Phone: (0721) 9338060 MS TRANSPORT: Frankfurt Court Appoints Administrator ---------------------------------------------------- The district court of Frankfurt am Main opened bankruptcy proceedings against MS Transport GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 18, 2005 to register their claims with court-appointed provisional administrator Dirk Pfeil. Creditors and other interested parties are encouraged to attend the meeting on Mar. 15, 2005, 8.30 a.m., at Saal 2, Geb. F, Klingerstr. 20, 60313 Frankfurt, statt at the district court of at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: MS TRANSPORT GMBH Hermannspforte 4A, 60437 Frankfurt Dirk Pfeil, Insolvency Manager Eschersheimer Landstr. 60, 60322 Frankfurt Phone: 069/1530960 PROSIEBENSAT.1 MEDIA: Net Profit Jumps to EUR75.3 Million --------------------------------------------------------- The ProSiebenSat.1 Group performed well in every regard from January through September of 2004. The German TV company was able to improve its performance, boost revenues and significantly increase profits. Total revenues were up 4% to EUR1.294 billion, compared to EUR1.241 billion for Q1-Q3 2003. Consolidated income from ordinary business activities rose from -EUR3.2 million to EUR121.6 million. The consolidated net profit soared from -EUR1.9 million to EUR75.3 million. EBITDA improved from EUR83.6 million to EUR209.1 million, a 150% gain. The EBITDA margin climbed from 7% to 16%. Earnings per preferred share improved from EUR0.00 in the first three quarters of 2003 to EUR0.37 in the equivalent period of 2004. All three full-service channels showed a pre-tax profit for January through September 2004. Sat.1's pre-tax income leaped from -EUR7.9 million to EUR60.3 million. Pre-tax profits at ProSieben improved 41%, to EUR115.5 million. The figure for Kabel 1, at EUR13.9 million, was up 216% against the prior year's first nine months. N24's earnings have improved significantly, and the station is not far from breaking even. The news station's pre-tax income for the first nine months rose from -EUR15.2 million to -EUR1.4 million. ProSiebenSat.1 Media AG (FWB:PSM) is Germany's largest TV company. The group has four strong TV stations -- Sat.1, ProSieben, Kabel 1 and N24. Collectively, the four channels represent 42.8% of the German TV advertising market, one of the largest in the world. ProSiebenSat.1's preference shares are included in the MDAX Index, Dow Jones STOXX 600 Media Index and Dow Jones EURO STOXX. For more information (figures, presentation, conference call) visit: http://www.prosiebensat1.com/3/4/3/3/index_en.html. CONTACT: PROSIEBENSAT.1 MEDIA AG Katja Pichler Phone: +49 (89) 95 07-11 81 E-mail: Katja.Pichler@ProSiebenSat1.com Fax: +49 (89) 95 07-11 84 RHO-BAU GMBH: Succumbs to Bankruptcy ------------------------------------ The district court of Braunschweig opened bankruptcy proceedings against RHO-Bau GmbH on Oct. 14. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 16, 2004 to register their claims with court-appointed provisional administrator Wilhelm Perk. Creditors and other interested parties are encouraged to attend the meeting on January 12, 2005, 9:00 a.m. at the district court of Braunschweig, An der Martinikirche 8, 38100 Braunschweig at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: RHO-BAU GmbH Konrad-Adenauer-Str. 78 b 38226 Salzgitter Kemal Arslanturk, Manager Bayreuther Strasse 3 91301 Forchheim Wilhelm Perk, Insolvency Manager Neue Strasse 32 38300 Wolfenbuttel Phone: (05331) 988040 Fax: (05331) 988020 SAXONLASER GMBH: Sets Creditors' Meeting January ------------------------------------------------ The district court of Leipzig opened bankruptcy proceedings against SaxonLaser GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 14, 2004 to register their claims with court-appointed provisional administrator Dr. Lucas F. Flother. Creditors and other interested parties are encouraged to attend the meeting on Jan. 14, 2005, 10:00 a.m. at the district court of Leipzig at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: SAXONLASER GmbH Handelsstrasse 8 04420 Frankenheim Volker Kurze, Manager Dr. Lucas F. Flother, Insolvency Manager Nikolaistrasse 3-5 04109 Leipzig ============= H U N G A R Y ============= HUNGARIAN TELEVISION: To Introduce New Channel Next Year -------------------------------------------------------- Hungarian Television Rt (MTV) is launching a new channel early next year, Budapest Business Journal reports. The new channel to be called MTV Demokracia, or m3, will be available January 1 at the earliest or March 15 at the latest. The National Radio and Television board has already given the go-ahead signal for the plan. M3's program structure includes items such as full-length coverage of parliamentary sessions and press conferences of important state bodies. MTV President Zoltan Rudi suggested the firm might offer cultural, sports and nostalgia channels in the future. Arpad Mondok, managing director of media agency MC MediaCompany Kft, said: "For consumers, [the plan] is positive. The appearance of theme channels reflects the trend of consumer segmentation all across Europe." Ferenc Schiffer, media director at Aegis Media Kft, commented: "From the commercial view, [MTV's move] can be regarded as a brave entry into a new market. On the other hand, it raises a few questions regarding the efficient spending of taxpayers' money." In July, MTV was cleared to receive a HUF4.8 billion grant from the Hungarian Parliament. CONTACT: HUNGARIAN TELEVISION RT 1016 Budapest, Naphegy ter 8. Postal address: 1426 Budapest, P.O. Box 3. Phone: 375-6722 Fax: 375-1891 (internal politics) or 375-3973 (foreign politics) Web site: http://www.mti.hu PILIS-INVESTOR: Creditors to Recoup Only a Quarter of Investment ---------------------------------------------------------------- Creditors of Pilis-Investor will only recover a maximum of 25% of their money from the bankrupt fund manager, Budapest Business Journal said, citing its liquidator. Liquidator Kelet-holding Rt has received HUF11.7 billion in claims and it expects another HUF1.5 billion from the cooperative's 700 members. The company's real value is estimated less than the worth of its assets of HUF80 billion. ============= I R E L A N D ============= ELAN CORPORATION: To Attend Healthcare Conference in Geneva ----------------------------------------------------------- Elan Corp. plc announces that it will present at SG Cowen & Co. 5th Annual Global Healthcare Conference in Geneva, Switzerland on Wednesday, November 17, 2004 at 9:10 a.m. Central European Time, 8:10 a.m. Greenwich Mean Time, 3:10 a.m. Eastern Standard Time. Interested parties may access a live audio Web cast of the presentation by visiting http://www.elan.comand clicking on the Investor Relations section, then on the event icon. About Elan Elan is a neuroscience-based biotechnology company that is focused on discovering, developing, manufacturing, selling and marketing advanced therapies in neurodegenerative diseases, autoimmune diseases and severe pain. Elan's (NYSE: ELN) shares trade on the New York, London and Dublin Stock Exchanges. Contact: ELAN CORPORATION Investors: Emer Reynolds Phone: 353-1-709-4000/800-252-3526 Media: Anita Kawatra Phone: 212-407-5755/800-252-3526 ========= I T A L Y ========= ALITALIA SPA: Govt Promises to Privatize Airline Next Year ---------------------------------------------------------- The government confirmed to the European Commission that it plans to privatize Alitalia next year, Il Sole 24 Ore says. In a letter sent by the finance ministry to the commission, Italy said Alitalia's privatization would take place on October 7, 2005, when the treasury's guarantee on a EUR400 million bridging loan expires. The government also said it is preparing a new privatization decree, which would be presented later to the cabinet. The government added it has already requested a number of investment bank to facilitate the privatization. CONTACT: ALITALIA S.p.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39 06 6562 2151 Fax: +39 06 6562 4733 Web site: http://www.alitalia.it PARMALAT URUGUAY: Sale to German Investors a Done Deal ------------------------------------------------------ Parmalat Uruguay could soon change hands if the Italian government approves the sale of the subsidiary to a group of German investors. El Observador Economico reports Parmalat has agreed to the terms of the sale and is just awaiting the approval of government regulators. The Uruguayan subsidiary contributed US$45 million to Parmalat's coffers in 2003. Its revenues are driven largely by exports to markets such as Mexico. By year's end, the company expects to post US$23 million in exports. Parmalat Uruguay employs 380 people in Montevideo and Nueva Helvecia. =========== N O R W A Y =========== STOLT-NIELSEN: Credit Ties with Stolt Offshore End -------------------------------------------------- Stolt-Nielsen S.A. will be released from all of its financial guarantee obligations to Stolt Offshore S.A. (SOSA). The release will result from SOSA's new US$350 million secured revolving credit and guarantee facility, to be underwritten by existing and new banks, which is scheduled to close later this month. In addition, a US$50 million undrawn line of credit that SNSA provides to SOSA will expire as scheduled on November 28, 2004. SOSA is a 41.7% owned non-consolidated subsidiary of SNSA. Jan Chr. Engelhardtsen, Chief Financial Officer of SNSA, said: "SOSA's successful completion of this new refinancing, coupled with the upcoming expiration of the undrawn liquidity line, marks the end of SNSA's financial obligations to SOSA." About Stolt-Nielsen S.A. Stolt-Nielsen S.A. (NasdaqNM: SNSA; Oslo Stock Exchange: SNI) is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through the parcel tanker, tank container, terminal, rail and barge services of its wholly owned subsidiary Stolt-Nielsen Transportation Group, provides integrated transportation for its customers. Stolt Sea Farm, wholly owned by the Company, produces and markets high quality Atlantic salmon, salmon trout, turbot, halibut, sturgeon, caviar, bluefin tuna, and tilapia. The Company also owns 41.7% of Stolt Offshore (NASDAQNM: SOSA; Oslo Stock Exchange: STO), which is a leading offshore contractor to the oil and gas industry. Stolt Offshore specializes in providing technologically sophisticated offshore and subsea engineering, flowline and pipeline lay, construction, inspection, and maintenance services. CONTACT: STOLT-NIELSEN S.A. Reid Gearhart Phone (U.S.A.): 1 212 922 0900 E-mail: rgearhart@dgi-nyc.com Valerie Lyon Phone (U.K.): 44 20 7611 8904 E-mail: vlyon@stolt.com =========== P O L A N D =========== AGORA SA: Reverses Last Year's Third-quarter Loss ------------------------------------------------- The consolidated financial statements of the Agora Group for the three quarters of 2004 include Agora S.A., Agora Poligrafia Sp. z o.o., the Art Marketing Syndicate S.A. Group (AMS Group), and 25 subsidiary and associated companies of the radio business. Detailed list of companies of the Agora Group was presented in financial statements for 2003. In the three quarters of 2004 these changes occurred: (a) Two radio related companies (Wanda Sp. z o.o. and Klakson Sp. z o.o.) are now fully consolidated with the financials of the Agora Group, while as of 31 December 2003 they were accounted for using the equity method; (b) 49% shares in 8 radio related companies and 29%, 90% and 100% in three others controlled by Agora were contributed in kind to LRR Sp. z o.o. (a 100% subsidiary of Agora); (c) Agora acquired a 48.51% stake in Tres Sp. z o.o., a broadcaster of local radio program Radio Pabianice; and (d) Agora increased its share in Multimedia Plus Sp. z o.o. by 52% to 76%. Profit and Loss Account of the Agora Group Tab. 1 in PLN million IIIQ IIIQ % I-IIIQ I-IIIQ % change 2004 2003 change 2004 2003 yoy yoy Sales 248.5 193.7 28.3% 723.5 619.9 16.7% Advertising 146.2 126.4 15.7% 460.7 419.2 9.9% Copy sales 57.9 55.5 4.3% 178.6 166.8 7.1% Other 44.4 11.8 276.3% 84.2 33.9 148.4% Operating cost net, incl.: (229.1) (198.8) 15.2% (685.3) (603.4) 13.6% D&A (27.0) (28.5) (5.3%) (83.5) (93.4) (10.6%) Staff cost (55.2) (56.8) (2.8%) (172.7) (171.1) 0.9% Promotion and marketing (26.7) (12.6) 111.9% (75.0) (39.7) 88.9% Goodwill amortization (3.6) (3.1) 16.1% (10.8) (9.7) 11.3% Restructuring (0.6) (0.3) 100.0% (9.1) (0.5) - Operating profit/(loss) 19.4 (5.1) - 38.2 16.5 131.5% EBIT Finance cost, net, incl.: (1.3) (1.3) - (5.4) (6.8) (20.6%) Revenue from short-term 2.0 1.1 81.8% 4.3 2.6 65.4% investment Interest on loans (2.4) (2.2) 9.1% (6.7) (7.5) (10.7%) Allowance for losses on (0.7) (0.8) (12.5%) (2.5) (2.2) 13.6% investment, net Share of results of(0.3) (0.3) - (1.3) (1.2) 8.3% associates Profit / (loss) before 17.8 (6.7) - 31.5 8.5 270.6% income tax Income tax expense(1.1) 0.9 - (2.7) (5.6) (51.8%) Minority interest (0.3) (0.1) 200.0%(0.6) (0.6) - Net profit / (loss) for the 16.4 (5.9) - 28.2 2.3 1,126.1% period EBIT margin (EBIT/Sales) 7.8% (2.6%) 10.4pp 5.3% 2.7% 2.6pp EBITDA 49.6 26.1 90.0% 131.1 118.0 11.1% EBITDA margin (EITDA/Sales) 20.0% 13.5% 6.5pp 18.1% 19.0% (0.9pp) Major products and services, as well as operating revenue and cost of the Agora Group are presented in detail in part IV of this MD&A ('Operating review -- major lines of business of the Agora Group'). Restructuring cost includes payments resulting from the lay- offs, as well as other cost related to the implementation of the planned restructuring measures in the Group. Out of the amount mentioned above, net cost of PLN8.5 million was incurred to the balance sheet day and the remaining PLN0.6 million constitutes a restructuring provision. Total restructuring cost amounted to PLN9.1 million, including PLN2 million of a write-off of goodwill of City Magazine. Advertising market recovery and restructuring measures positively affected profitability ratios. All ratios presented in point 5 below improved -- continued financial improvement in the third quarter of 2004 significantly enhanced the nine-month ratios. Results Presented According to Major Lines of Business of the Agora Group Tab. 2 Press and Magazines Outdoor Radio The Internet Total 552.6 69.0 83.8 33.8 sales % Share 76.4% 9.5% 11.6% 4.7% Total (467.0) (79.7) (94.0) (34.9) operating cost EBIT 85.6 (10.7) (10.2) (1.1) Finance cost Share of results of associates Income tax expense Minority interest Net profit EBITDA 139.7 (6.3) 3.4 0.4 CAPEX (13.4) (0.1) (9.3) (0.6) Unallocated Eliminations Total Amounts (consolidated) Total 15.5 (31.2) 723.5 sales % Share 2.1% (4.3%) 100.0% Total (29.3) 19.3 (685.3) operating cost EBIT (13.8) (11.6) 38.2 Finance cost (5.4) Share of (1.3) results of associates Income tax (2.7) expense Minority interest (1.3) Net profit 28.2 EBITDA (4.3) (1.8) 131.1 CAPEX (0.3) - (23.7) The column 'unallocated amounts' includes amounts which were not allocated to any of Agora's lines of business: Agora's radio division, cost of the new headquarters and operating cost of new business development division. Finance Cost, Net Higher revenue from short-term investment results from an increase in cash and monetary assets in 2004. Lower financial interest on loans results from bank loans and commercial papers of the AMS Group, which were repaid in full in 2003. A full copy of its financial results is available free of charge at http://bankrupt.com/misc/results.htm. CONTACT: AGORA S.A. Czerska 8/10 00-732 Warszawa, Poland Phone: +48-22-555-4002 Fax: +48-22-555-4850 Web site: http://www.agora.pl DAEWOO-FSO: Sale to Ukraine's AvtoZAZ Imminent ---------------------------------------------- Ukrainian vehicle manufacturer AvtoZAZ may be close to buying Daewoo-FSO. A report from Auto Industry says the Polish government, which holds 80% voting rights in Daewoo-FSO, is planning to enter negotiations with AvtoZAZ regarding a possible sale. AvtoZAZ has started buying Daewoo-FSO's debts from creditor banks, raising hopes the firm could escape imminent bankruptcy. According to Millennium Bank, Avto has already bought US$8 million in debts. Meanwhile, it was also reported that MG Rover's holding company Phoenix Venture Holdings had earlier suggested it could resume talks with creditors in conjunction with its prospective joint venture partner Shanghai Automotive Industry Corp. NETIA SA: To Repay PLN11.9 Mln Obligations Ahead of Maturity ------------------------------------------------------------ The Management and Supervisory Boards of Netia S.A. has decided to repay early all outstanding installment obligations resulting from an arrangement proceedings in 2002 on or before the end of the second quarter of 2005. The obligations have a total value of PLN11,872,036 and mature in 2012. The deal was approved in 2002 among Netia Holdings S.A., Netia Telekom S.A., and Netia South Sp. z o.o. (ref: XVII Ukl 27/02, XVII Ukl 28/02 and XVII Ukl 52/02, in the proceedings conducted by the District Court for the City of Warsaw in Warsaw, XVII Commercial Division). Repayment of all the Installment Obligations will complete the arrangement proceedings. The Company anticipates that the Installment Obligations will be repaid: (a) Through cash payments to the accounts designated by those Company creditors who can prove that they are entitled to the Installment Obligations (the "Entitled Creditors"); (b) The Entitled Creditors shall also be able to exchange their Installment Obligations for new Company shares, which will be issued at the price of PLN 1.0826241 per share, i.e. for the price equal to the issue price of the series H shares issued in relation to the Company's financial restructuring in 2002; the Company plans to issue a total of no more than 18,373,785 Shares; the Shares will be issued on the basis of paragraph 5a of the Company statute (authorized capital) and subscription for the Shares will end on 12 March 2005; (c) A cash amount equivalent to the Installment Obligations due to those Entitled Creditors who do not request the Company to satisfy the Installment Obligations pursuant to either point (i) or (ii) above, shall be deposited with the court depository. By December 31, 2004, the Management Board will announce detailed information relating to the terms and conditions of repayment of the Installment Obligations. Detailed information on the exchange of Installment Obligations for Shares shall be announced in the first quarter of 2005 after the Company publishes a prospectus, in accordance with the relevant provisions of Polish law. CONTACT: NETIA S.A. IR Anna Kuchnio Phone: +48-22-330-2061 Media Jolanta Ciesielska Phone: +48-22-330-2407 Taylor Rafferty, London Mark Walter Phone: +44-(0)20-7614-2900 Yuhau Lin Phone: +1-212-889-4350 NETIA SA: Reports PLN113.4 Million Year-to-date Net Profit ---------------------------------------------------------- Netia S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, on Monday announced its unaudited consolidated financial results for the third quarter and nine months ended September 30, 2004. Financial Highlights (a) Year-to-date revenues were PLN666.0 million (US$187.2 million), a year-on-year increase of 29%. Revenues for Q3 2004 were PLN231.7 million (US$65.1 million), a year-on-year increase of 30%; (b) Year-to-date EBITDA was PLN243.4 million (US$68.4 million), representing an EBITDA margin of 36.6% and a year-on-year increase of 65%. EBITDA for Q3 2004 was PLN83.7 million (US$23.5 million), representing an EBITDA margin of 36.1% and a year-on-year increase of 56%; (c) Year-to-date profit from operations (EBIT) was PLN86.0 million (US$24.2 million), representing an EBIT margin of 12.9%. EBIT for Q3 2004 was PLN29.3 million (US$8.2 million), representing an EBIT margin of 12.7%; (d) Year-to-date net profit was PLN113.4 million (US$31.9 million), representing a net profit margin of 17.0% and swinging from a net loss of PLN920.3 million a year ago. Net profit for Q3 2004 was PLN44.7 million (US$12.6 million). Cash at September 30, 2004 was PLN257.1 million (US$72.3 million) as compared to PLN217.2 million at June 30, 2004. Operational Highlights: (a) Sales of telecommunications products other than traditional direct voice (including indirect voice, data transmission, interconnection revenues, wholesale, intelligent network and other telecom services) increased their share of total revenues from telecom services to 41% or PLN93.5 million (US$26.3 million) in Q3 2004 from 31% in Q3 2003 and to 37% or PLN246.2 million (US$69.2 million) for the nine-month period ended September 30, 2004 from 28% for the corresponding period of 2003. (b) Revenues from business customers (including interconnection revenues) accounted for 78% and 72% of total telecom revenues in Q3 2004 and the nine-month period ended September 30, 2004, respectively. Excluding the impact of interconnection revenues, these indicators were 75% and 70%, respectively. (c) Subscriber lines (net of voluntary churn and disconnections) increased to 426,523 at September 30, 2004 from 356,140 at September 30, 2003, a year-on-year increase of 20%, and remained essentially flat vs. 426,606 at June 30, 2004. Business customer lines increased 27% year-on-year to 145,499 and these now account for 34% of total subscriber lines. (d) Average monthly revenue per line (with regard to direct voice services) decreased by 7% to PLN105 (US$29) in Q3 2004 from PLN113 in Q3 2003 and by 3% from PLN108 in Q2 2004, reflecting the continued overall tariff reduction trends in the sector. Headcount of the Netia group was 1,253 at September 30, 2004, compared to 1,401 at September 30, 2003 and 1,340 at June 30, 2004. Wojciech Madalski, Netia's President and Chief Executive Officer, commented: "Netia extended its track record of double- digit revenue growth, delivering a top-line increase of 29% for the year-to-date to PLN666.0 million. Of this revenue increase, 18 percentage points came from acquisitions and 11 percentage points from pure organic growth. Revenues from products other than traditional voice services grew 71% year-on-year in the third quarter and represented 41% of total Q3 revenues compared to 36% in the second quarter and 31% in Q3 2003. This underscores Netia's success with business customers, who now account for 72% of telecom revenues year-to-date. "Year-to-date EBITDA increased by 65% to PLN243.4 million as Netia's efficiency once again showed considerable improvement. Despite the impact of two acquisitions, Netia reduced headcount year-on-year by 10.6% and 6.5% compared to the second quarter 2004. This, combined with other ongoing cost savings and Netia's increased revenues, produced a Q3 2004 EBITDA margin of 36.1%, representing significant progress from 30.1% reached in Q3 2003. I am very pleased to underscore that Netia has now met its stated strategic objective of a minimum 35% EBITDA margin for three straight quarters. "We continued to deliver solid performance also on an EBIT level, generating a profit from operations of PLN86.0 million and an EBIT margin of 12.9% for the nine months of 2004 compared to a significant EBIT loss a year ago. As a result, Netia delivered a net profit of PLN113.4 million for 2004 year-to- date. "Lastly, we are delighted to welcome Kent Holding as Netia's new Chief Financial Officer. His extensive experience in the telecommunications industry will make a valuable contribution to Netia's further progress, particularly in our drive for continued efficiency and financial discipline, the development of mobile solutions as part of Netia's customer offering and our continuing evaluation of consolidation opportunities in the Polish telecoms market." A full copy of this press release is available free of charge at http://bankrupt.com/misc/NetiaSA_financial_results04.pdf. CONTACT: NETIA S.A. IR Anna Kuchnio Phone: +48-22-330-2061 Media Jolanta Ciesielska Phone: +48-22-330-2407 Taylor Rafferty, London Mark Walter Phone: +44-(0)20-7614-2900 Yuhau Lin Phone: +1-212-889-4350 =========== S W E D E N =========== LM ERICSSON: Rating Upgraded to 'BB+' on Improved Results --------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Sweden- based telecommunications equipment supplier Ericsson (Telefonaktiebolaget L.M.) to 'BB+' from 'BB', following publication of its third-quarter 2004 results showing improved performance. The outlook is positive. At the same time, Standard & Poor's affirmed its 'B' short-term corporate credit rating on the company. At Sept. 30, 2004, Ericsson had gross debt of about SKR35.8 billion (EUR4 billion), including notes of approximately SKR23 billion. "The upgrade reflects Standard & Poor's view that the wireless telecoms equipment market is set to continue growing in 2005, although this is likely to be at a more modest pace than in 2004, under continued expansion of mobile communications worldwide," said Standard & Poor's credit analyst Leandro de Torres Zabala. The upgrade also reflects Ericsson's positions in the main vectors of growth within the telecoms equipment industry and a cost structure that is commensurate with operating margins in the high teens and sustainable positive free cash flow generation. Ericsson's credit quality is also underpinned by its very strong cash position, well-extended debt maturities, and good access to capital markets. The ratings remain constrained, however, by the expected moderation in revenue growth rates in the wireless equipment market in 2005, the strong price competition and rapid technology evolution affecting the wireless equipment industry, and some temporary sales weaknesses in the North American market given the consolidation of some key customers. The ratings on Ericsson could be upgraded to the investment- grade category during 2005. This would depend upon Ericsson's ability to post steadily growing revenues (even if at low single digit rates), maintain strong gross margins and operating margins close to the group's target of high teens, and further consolidate its free cash flow generation. At the same time, it is expected that Ericsson will preserve a strong cash position. Ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com. It can also be found at http://www.standardandpoors.com. Alternatively, call one of the following Standard & Poor's numbers: London Ratings Desk (44) 20-7176-7400; London Press Office Hotline (44) 20-7176- 3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017. Members of the media may also contact the European Press Office via e- mail: media_europe@standardandpoors.com. CONTACT: STANDARD AND POORS RATING SERVICES Group E-mail Address CorporateFinanceEurope@standardandpoors.com ===================== S W I T Z E R L A N D ===================== BARRY CALLEBAUT: Net Profit Up 12.0% to CHF115.6 Million -------------------------------------------------------- Barry Callebaut AG, one of the world's leading cocoa and chocolate companies, announced on Wednesday its results for fiscal year 2003/04 ended Aug. 31, 2004. With CHF4,048.9 million, consolidated sales revenue surpassed the four billion Swiss franc threshold for the first time (up 13.4%). Sales volumes rose by 13.5% to more than a million tons. Both results were partly influenced by the first-time consolidation of Luijckx for the first six months and of Brach's for the full year. Operating profit (EBIT) went up by 9.4% to CHF228.3 million. Net profit (PAT) strongly increased by 12.0% to CHF115.6 million. Patrick De Maeseneire, CEO of Barry Callebaut, said: "It gives me great satisfaction to see that we have achieved an organic volume growth of 4.4% in a global chocolate market that grew only 1%. We had a strong fourth quarter in all our businesses and markets, including the Consumer Products Europe business unit. With the introduction of the 'dedicated factory approach' across our entire manufacturing network, we have taken the necessary steps to achieve cost leadership in our European consumer business. Cost leadership, together with innovation, is the basis for profitable growth in a highly competitive environment." Sales revenue increased by 13.4% or CHF477.6 million to CHF4,048.9 million. The acquisition and first-time consolidation of Brach's (full year) and Luijckx (six months) contributed a net amount of CHF402.7 million to this growth, with the remainder coming from positive exchange rate movements as well as from organic volume growth. These positive factors were partially offset by a decrease in cocoa bean prices and the partial discontinuation of the low- margin industrial business from Stollwerck. Net organic sales revenue growth was 5%. Sales volumes saw an increase of 13.5% to 1,011,358 tons, up from 891,048 tons in the prior year. Eliminating the effects of the acquisition of Brach's and Luijckx as well as the discontinued Stollwerck industrial business, sales volumes increased strongly by 4.4%, compared to a growth of the world market of 1%. Main contributors to this organic volume growth were the Gourmet, Food Manufacturers and Cocoa businesses. Operating profit (EBIT) increased by 9.4% to CHF228.3 million. The Cocoa, Food Manufacturers and Gourmet & Specialties business units showed substantial increases, the newly acquired Brach's business made a moderate positive contribution, while the EBIT development in Consumer Products Europe was unsatisfactory because of margin pressure and the one-off impact of a sharp increase in hazelnut prices. Taxes decreased to CHF19.4 million, bringing the effective average corporate tax rate to 14.3%, down from 19.4% for the prior year. Net profit (PAT) showed a strong increase of 12.0% to CHF115.6 million, up from CHF103.2 million in the previous year. Earnings per share reached CHF22.4 (+12.0%). Net debt decreased by CHF87.1 million or 8.5% to CHF943.0 million as of end of August 2004, bringing the debt-to-equity ratio down to 117.7% (previous year: 135.7%). Shareholders' equity grew 5.5% to CHF800.9 million as of the end of August 2004, compared to CHF759.2 million at the end of the previous fiscal year on Aug. 31, 2003. The key operational ratios Return on equity (ROE) and Return on invested capital (ROIC) went up: ROE was 14.4%, ROIC was 10.4%. On Aug. 31, 2004, the Group employed a workforce of 8,933 people, or 14% more than on Aug. 31, 2003, mostly due to the acquisition of Brach's. Proposals to the Annual General Meeting Instead of a dividend payment the Board of Directors proposes to the Annual General Meeting of Dec. 8, 2004 to reduce the share capital of the company by CHF40,326,000 from CHF517,000,000 to CHF476,674,000 through the reduction of the par value per share from CHF100 to CHF92.20 and to amend the respective provision of the articles of association. The par value reduction of CHF7.80 per share will be paid out free of costs and net of the withholding tax in February 2005. The Board of Directors proposes to the Annual General Meeting that Dr. Urs Widmer, former Chairman and CEO of Ernst & Young Holding and active today as a lawyer, and Markus Fiechter, CEO of KJ Jacobs AG, be elected as new members of the Board of Directors (see separate CVs). With the term of office of the Board of Directors being one year, the board members Andreas Schmid (Chairman), Dr. Andreas Jacobs (Vice Chairman), Rolando Benedick and Andreas W. Keller will stand for re-election for another term of office. Dr. Johann Christian Jacobs has expressed his desire to focus on the chairmanship of the Jacobs Foundation; he will not stand for re-election. Outlook Patrick De Maeseneire, Chief Executive Officer, on the prospects for the current fiscal year 2004/05: "In the first two months of the current fiscal year, organic volume growth in all our businesses was very good. We believe that the environment for the current fiscal year will be rather difficult given that the European economy is not picking up to the extent predicted by economists, and economic growth in the U.S. is slowing down. Barry Callebaut wants to continue growing twice as fast as the global chocolate markets. With the introduction of the new dedicated factory strategy across all business units, which will give us cost leadership in all our businesses, and by exploring new geographic opportunities and actively responding to growing consumer demand for more convenient, more sensory and health- enhancing products, we are well positioned to further generate strong, profitable growth in the years ahead." Overview of Business Performance by Business Segment Industrial Business Segment The Industrial business segment focuses on selling cocoa and chocolate products to industrial processors and consumer goods manufacturers worldwide. Sales volumes were 650,621 tons, up 3.1% from the 631,146 tons for the previous year. (a) To further optimize the fixed cost structure, volumes of cocoa products sold to third-party customers were increased by 4.5% and reached 126,316 tons (120,827 tons in the prior year); (b) Sales volumes in the Food Manufacturers business unit grew 2.7% to 524,305 tons. Excluding the partial discontinuation of low or negative margin industrial sales taken over from Stollwerck as well as the reclassification of former deliveries to Brach's and Luijckx as inter-company sales, organic volume growth was 5.7%. Volume growth was mainly recorded in France, the Mediterranean countries, Eastern Europe, North America and, above all, Asia-Pacific (+34%). This is the result of the continued outsourcing trend all the way to the molding and packaging of the finished product, an area in which Barry Callebaut could already sign a number of important contracts with large branded consumer goods companies. To expand geographically, sales offices were opened in Moscow and Tokyo and reported initial successes. Sales revenue in the Industrial business segment rose 0.4% to CHF2,203.3 million, compared to CHF2,193.9 million in the previous year. (a) Sales revenue for the Cocoa business unit declined by 8.2%. This decrease was driven by the decline in underlying cocoa bean prices and changes in the product mix, yet was partially offset by significant margin improvements in pressed products, such as cocoa butter and cocoa powder; (b) On the other hand, the Food Manufacturers business unit was able to grow its sales revenue by 3.8% to CHF1,639.3 million, up from CHF1,579.7 million. This was the result of volume growth, margin improvements and a slightly positive currency impact, partly offset by lower underlying cocoa bean prices. Considering the above-mentioned impact from the Brach's and the Luijckx acquisitions as well as from the discontinued Stollwerck industrial business, organic sales revenue growth was 7.3%. Operating profit (EBIT) for the segment jumped 22.7% to CHF175.2 million, with a sizeable contribution coming from Cocoa. Total segment assets including current assets amounted to CHF1,658.2 million, down from the previous year, as a result of the lower underlying cocoa bean prices. EBIT over total segment assets reached a satisfactory 10.6% (previous year: 7.9%). Food Service/Retail Business Segment The Food Service/Retail business segment serves a broad range of customers, from local craftsmen to global retailers. Sales revenue in the Food Service/Retail Business Segment jumped 34.0% to CHF1,845.6 million, with CHF425.1 million or 30.9% resulting from the first-time consolidation of Brach's for the full year and of Luijckx for six months and the remainder being organic growth. Brach's, one of the leading manufacturers of loose confectionery in the U.S., was acquired in September 2003. The restructuring and integration of the company is on track, and it already made a moderate positive contribution to segment EBIT. AM Foods, acquired in September 2004 and renamed into Barry Callebaut Sweden, will only be consolidated as of September 1, 2004. (a) Sales revenue reported by the Gourmet & Specialties business unit increased by 7.9% to CHF514.0 million, up from CHF476.4 million for the prior year. Organic growth was 3.8%. Sales revenue growth was achieved across all geographies; (b) Sales revenue generated by the two Consumer Products units Europe and North America rose nominally by 47.8% to CHF1,331.6 million or 32.9% of total group sales. CHF399.3 million of this growth is attributable to the first-time full-year consolidation of Brach's. Organic growth was almost flat at 0.3%. Operating profit (EBIT) for the segment was CHF99.3 million or a minus of 2.6%. EBIT growth achieved in Gourmet & Specialties as well as in Consumer Products North America nearly offset the unsatisfactory EBIT development of Consumer Products Europe, which was the result of the unsatisfactory business development in Germany especially in the third quarter and the beginning of the fourth quarter, topped by suddenly much higher prices for hazelnuts. Total segment assets went up by 22.8% to CHF953.4 million due to the acquisition of Brach's. EBIT over total segment assets was down to 10.4% (previous year: 13.1%) as a result of the factors described above. Consumer business: accelerating strategy implementation As announced on September 10, 2004, action was taken to shape the Consumer Products Europe unit into a preeminent and innovative customer solutions provider for global retailers. Innovation and cost leadership are key in a market that is characterized by strong growth rates for premium products on the one hand and customer label products on the other. In order to achieve cost leadership the concept of dedicated factories or "Centers of Excellence", which has already been successfully implemented in the Industrial Business segment, is now being expanded to encompass the entire production network. The more than 30 production sites worldwide were integrated into a centrally managed "Operations" unit at the beginning of the current fiscal year. The "Operations" unit will supply all of Barry Callebaut's business units. Product manufacturing is being centralized, and each factory will serve as a "Center of Excellence," focusing on making the products for which it is best suited. The advantages of this approach for each factory are highly developed specialist skills, longer production runs, optimized stock management as well as capacity management. In addition, the separation of production from sales and marketing enables each business unit to focus its resources on serving its specific customer segments. Ivory Coast The three factories of Barry Callebaut in Ivory Coast have been closed since Sunday, Nov. 7, 2004 because public transport is interrupted and workers cannot get to work. All three factories are fully operational. As soon as public transport is working again, Barry Callebaut intends to re-start the factories. Barry Callebaut has been present in Ivory Coast since 1968 and has successfully managed similar situations before. In order to spread the risks, the volumes of cocoa beans sourced in other countries, such as Ghana or Indonesia, were increased, and cocoa processing capacities in Europe, the U.S. and Ghana were expanded. Barry Callebaut is confident at this moment that it will be able to meet its contractual obligations vis-a-vis its chocolate customers. Barry Callebaut With annual sales of more than CHF4 billion for fiscal year 2003/04, Zurich-based Barry Callebaut is one of the world's leading manufacturers of high-quality cocoa, chocolate and confectionery products -- from the cocoa bean to the finished product on the store shelf. Barry Callebaut operates more than 30 production facilities in 22 countries and employs approximately 9,000 people. The company serves the entire food industry, from food manufacturers to professional users of chocolate (such as chocolatiers, pastry chefs or bakers), to global retailers. It also provides a comprehensive range of services in the fields of product development, processing, training and marketing. Fiscal year 2003/04 closed on Aug. 31, 2004. The Annual General Meeting 2003/04 will take place on Dec. 8, 2004, at 2:30 p.m. (Kongresshaus, Zurich, Gartensaal). A full copy of this press release is available free of charge at http://bankrupt.com/misc/Callabaut_results04.pdf. * * * Barry Callebaut is rated BB+/Stable/-- by Standard & Poor's. CONTACT: BARRY CALLEBAUT Investors And Financial Analysts Dieter A. Enkelmann, CFO Phone: +41 1 801 61 43 Fax: +41 1 801 61 53 E-mail: dieter_enkelmann@barry-callebaut.com Media: Gaby Tschofen Phone: +41 1 801 61 60 Fax: 41 1 801 61 53 E-mail: gaby_tschofen@barry-callebaut.com Web site: http://www.barry-callebaut.com =========================== U N I T E D K I N G D O M =========================== ABB EUROFIN: Gives Creditors Until December to File Claims ---------------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF ABB Eurofin Limited (In Voluntary Liquidation) Notice is hereby given that at an Extraordinary General Meeting of ABB Eurofin Limited held on November 5, 2004, it was resolved by Special Resolution that the Company be placed in Voluntary Liquidation and that Gregory Whiteman, ACA, of Suite 3, Weighbridge House, Le Pollet, St. Peter Port be appointed liquidator. All persons owing monies to the company are requested to settle the amounts concerned direct with the Liquidator. All persons having claims against the company are requested to send a detailed account thereof to the Liquidator on or before December 6, 2004. CONTACT: GREGORY WHITEMAN, ACA, Liquidator Suite 3 Weighbridge House Le Pollet, St. Peter Port Guernsey GY1 1WL ASHFORD GREAT: Calls in Joint Liquidators from Deloitte & Touche ---------------------------------------------------------------- Name of companies: Ashford Great Park (Phase I) Limited Limbomono Limited North Audley Street Developments Limited At the extraordinary general meeting of these companies on November 3, 2004 held at 54 Lombard Street, London EC3P 3AH, the special and ordinary resolutions to wind up the companies were passed. James Robert Drummond Smith and Nicholas James Dargan, of Deloitte & Touche LLP, Athene Place, 66 Shoe Lane, London EC4A 3WA have been appointed joint liquidators of these companies. CONTACT: DELOITTE AND TOUCHE LLP Athene Place, 66 Shoe Lane, London EC4A 3WA Phone: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com ATCHLEY LIMITED: Sets General Meeting December ---------------------------------------------- Name of companies: Atchley Limited Atchley Tools Limited The general meeting of the members of these companies will be on December 3, 2004 commencing at 11:00 a.m. and 11:15 a.m. respectively. It will be held at Suite B1, White House Business Centre, Forest Road, Kingswood, Bristol BS15 8NH. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. A TO Z: Restaurants for Sale ---------------------------- Shay Nannon and Tony Nygate, Joint Administrators, will sell the business and assets of A to Z Restaurants. Seven restaurants are being sold, individually or collectively. Principal Features (a) Includes three Michellin starred French and Italian restaurants; (b) Two-well established Chinese restaurants; and (c) Approximately 200 staff and a management team with considerable experience. CONTACT: BDO STOY HAYWARD Phone: 020 7893 3320/2370 Fax: 020 7893 2808 Shaun Claydon E-mail: shaun.claydon@bdo.co.uk Andrew Lowe E-mail: andrew.lowe@bdo.co.uk BACKSAFE LIMITED: Names G. F. Davis Liquidator ---------------------------------------------- At the extraordinary general meeting of the members of the Backsafe Limited on October 21, 2004 held at NET Line One Project Office, Gregory Boulevard, Nottingham NG7 6LB, the special resolution to wind up the company was passed. Gerald Frederick Davis has been appointed liquidator for the purpose of such winding-up. BALLIVY LIMITED: Members General Meeting Set December ----------------------------------------------------- The general meeting of the members of Ballivy Limited will be on December 7, 2004 commencing at 10:00 a.m. It will be held at Crawfords, Stanton House, 41 Blackfriars Road, Salford, Manchester M3 7DB. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. CONTACT: CRAWFORDS Stanton House, 41 Blackfriars Road, Salford, Manchester M3 7DB BARTON BENDISH: Liquidator's Final Report Out Next Month -------------------------------------------------------- The final meeting of the members of Barton Bendish P.L.C. will be on December 17, 2004 commencing at 11:00 a.m. It will be held at 26 London Road, St Albans, Hertfordshire AL1 1NG. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with Robert Day and Company, Garfield, Church Lane, Oving, Aylesbury, Buckinghamshire HP22 4HL not later than 12:00 noon, December 16, 2004. CONTACT: ROBERT DAY AND COMPANY Garfield, Church Lane, Oving, Aylesbury, Buckinghamshire HP22 4HL BED & BREAKFAST: Creditors' Meeting Set End of November ------------------------------------------------------- The creditors of Bed & Breakfast Direct Ltd. will meet on November 22, 2004 commencing at 10:30 a.m. It will be held at KPMG LLP, Edward VII Quay, Navigation Way, Preston PR2 2YF. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to KPMG LLP, Corporate Recovery, St James Square, Manchester M2 6DS not later than 12:00 noon, November 19, 2004. CONTACT: KPMG Corporate Recovery St James Square, Manchester M2 6DS Phone: (0161) 838 4000 Fax: (0161) 838 4040 Web site: http://www.kpmg.co.uk B E L DEVELOPMENTS: Calls Meeting to Hear Liquidator's Report ------------------------------------------------------------- The general meeting of the members of B E L Developments Limited will be on December 3, 2004 commencing at 10:00 a.m. It will be held at the offices of Vantis Business Recovery, at The White Cottage, 19 West Street, Epsom, Surrey KT18 7BS. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with Vantis Business Recovery, at The White Cottage, 19 West Street, Epsom, Surrey KT18 7BS not later than 12:00 noon, December 2, 2004. CONTACT: VANTIS BUSINESS RECOVERY The White Cottage, 19 West Street, Epsom, Surrey, KT18 7BS Phone: 01372 743816 Fax: 01372 720940 E-mail: epsom@vantisplc.com Web site: http://www.vantisplc.com CABLE & WIRELESS: Chairman Bares Restructuring Plans ---------------------------------------------------- Chairman Richard Lapthorne said: "We are now almost 18 months into our three year program to re-shape our business and I am pleased with our mid term progress. The management team has delivered on the promises they set out in early 2003: to exit the U.S. market, to build on National Telcos and to restructure the U.K. and drive performance. The U.S. exit has been achieved for considerably less than the originally estimated cost. In National Telcos, performance is resilient as we cope satisfactorily with the progression of liberalization. Further, we have expanded our footprint through the value enhancing acquisition of Monaco Telecom. In the U.K. business, restructuring is progressing such that it is no longer a drain on cash, and management will present clear plans to take this business forward. "The dividend was restored at the end of the last financial year. The Board has declared an interim dividend of 1.16 pence for the current financial year, compared with an interim dividend of 1.05 pence for 2003/4, an increase of 10%. "To help to demonstrate the value we have created to date I will share with you my view of the state of a number of our assets, as seen through the Company's planning process, using an illustrative discount rate of 10%. "These projections assume no real sales growth and a progressive reduction in costs over the period covered, while capex stays strictly controlled -- the desegregation of the separate parts of the business allows us to show the hidden gems in the basket. "The grouping: 'Other National Telcos' includes businesses such as Guernsey, the Maldives, Seychelles, Bermuda and others, some of which still operate in markets with limited competition. Based on our planning assumptions and using the indicative 10 percent discount rate these businesses show collectively a value of GBP340 million. "Batelco, which is separately listed in Bahrain presently has a market capitalization of GBP1.45 billion, implying a value of GBP290 million for Cable & Wireless' 20% stake. "The restructuring announced today [Nov. 10] also creates value. The net present cost of corporate charges before today's announcement was GBP325 million, offset by GBP230 million as a result of the cost reductions just announced. "In addition to the sale of C&W IDC, Japan we expect to realize some GBP50 million for the sale of our stake in Intelsat. "Turning now to the balance sheet. Firstly, the Board intends to work with the pension fund trustees and actuary in preparation for the triennial valuation at 31 Mar. 2005. In anticipation of that process and the valuation itself, we are planning to make an interim contribution of up to GBP100 million before the year-end. Some further contributions may be needed after that. The amount and timing of all these payments will be determined in discussion with the actuary and trustees and we will not invest extra funds into the scheme if that results in the risk of creating future valuation surpluses which cannot readily be reversed at no cost to the company. "Secondly, we have started work to restructure the balance sheet of the plc. We have addressed the active side of the balance sheet by taking impairment charges, to set the carrying value of assets in line with their earning capability. We now need to re-set the inactive side in order to align our cash and distributable reserves. "Thirdly, we are initiating a GBP250 million share repurchase, using a buy back program. The Board's view is that this return of capital has been made possible by the progress made in achieving our objectives in dealing with the legacy issues such as the U.S. exit, sale of the Japanese business and sale of satellite investments. "Looking ahead, it is clear that in mature markets future profit growth will come from cost reduction and from improving the sales mix. In developing markets profit growth will be driven by increased penetration of new products and further cost reduction in mature products. At the same time we will take opportunities to expand our footprint into new geographies when appropriate." Chief Executive Francesco Caio said: "We have achieved a great deal in fixing the legacy issues we inherited, controlling cash and reshaping the Group as a more flexible, customer responsive entity that is equipped and ready to compete in the new telecoms landscape. We have stabilized business performance and conserved cash, while making targeted investments to deliver what our customers want. "We have taken a disciplined approach to acquisitions. In June, we acquired Bulldog Communications as a platform to target the rapidly growing broadband market. The combination of Bulldog with the Cable & Wireless network creates a unique position from which to drive transformation and capture profitable growth. We also built on our National Telco portfolio with the acquisition of Monaco Telecom in June 2004. Performance "Across the National Telco businesses we have started to see the benefits of implementing our operational priorities. The National Telcos are a profitable and cash generative component of our business. At constant currency National Telcos revenue improved by 6% and earnings before exceptional items improved by 5% over the same period in the previous year, due to strong performances in Panama, Macau and the Maldives and the contribution of Monaco Telecom. "We are gradually upgrading the National Telco fixed networks, deploying broadband services to increase penetration, albeit from a low base. This will allow us to develop services to capture new growth and offset some of the decline in legacy revenues as further markets liberalize. We continue to work closely with governments as partners, to develop a regulatory environment that will foster and incentives innovation. "In the Caribbean where the impact of ongoing liberalization and increasing competition continue to put pressure on margins, we have strengthened our marketing and distribution and we are encouraged by the initial impact of recent product and branding launches. Although damage from Hurricane Ivan was severe in Grenada and Cayman, the robustness of both our mobile and fixed network has improved our standing with customers, regulators and legislators. We expect the cash impact of Hurricane Ivan in the Caribbean to be GBP25 to 35 million net of insurance refunds. The timing of receipt of insurance funds is not known but is likely to be next year. "In the U.K. although Business revenue was held back by weak performance and pricing pressure, Enterprise revenue was stable over the second half of 2003/4. Enterprise has built on its track record of increasing share of client spend, particularly in the growing area of IP services. Against the backdrop of challenging market conditions, operating profit before exceptional items and amortization for the first half rose by GBP46 million compared with the prior year, reflecting reductions in operating costs and a lower depreciation charge. "Carrier Services, with its extensive network reach and capacity to trade voice and data services around the world, continues to perform well. Although margins in this sector are lower than in the retail sector low channel costs and low capital intensity make it cash generative for the Group. For this reason we see an opportunity to refocus our position in Europe around Carrier Services which is currently producing around 80% of our European revenue. "Through Bulldog we offer the first bundled super-fast broadband and domestic telephony offer in the U.K. Consumer and SoHo broadband demand is accelerating rapidly and we are well positioned to succeed in that market with a 4mbps bundled offer. Transformation Program "With the legacy issues dealt with, our focus is on reshaping the Group to compete in the new telecoms landscape. To achieve this our priority is to manage our cost base and to invest in the development and marketing of broadband, IP and mobile services. "In National Telcos we intend to retain our leadership as an integrated provider of telecom services and sustain profitability through focus on margin. In the U.K., I want Cable & Wireless to lead the IP/broadband transformation, leveraging our access network across all customer segments and in doing so, improve our gross margins by adding the profitable 'last mile' to our network. Local loop unbundling gives us an opportunity to do this with incremental capex deployed against growing penetration of our services. We will continue to show strong financial discipline in the deployment of our investment to ensure value creation with measurable terms. "I am confident we can succeed in doing this because we have two key advantages compared to our competitors. The first is that we have the largest alternative network footprint in the country. The second is that we now have an opportunity to deploy our financial capabilities in a measured manner, by investing to develop our access network. "As we move into the reconstruction phase, I will be taking direct operational control of the U.K. business and today I am announcing a new structure. The key elements are: the closure of the London head office and the relocation of corporate functions to Bracknell, together with refocusing the European business on Carrier Services. A reorganization of the U.K. business into customer focused segments: Enterprise, Business, Bulldog and Carrier Services. The creation of a single unit managing all operational activities -- IT, purchasing, network and field operations. "In total these reorganizations are expected to reduce headcount by around 600 across the U.K. and Continental Europe, subject to local consultation. We have now set the execution priorities for each of the new business segments and identified a clear path to significantly advance our competitive position in the U.K. by taking advantage of our network and the migration to broadband. "These execution priorities are centered on three key elements: reducing the cost base of our operations; taking full advantage of local loop unbundling across all of our segments, as we roll out our access network; and pursuing profitable margins by targeting the rapid growth in the broadband market." Outlook Although market conditions are likely to remain challenging in all our businesses in the second half, we anticipate that Group profit before exceptional items and tax in the first half of the year will be a reasonable reflection of the level of profit before exceptional items and tax in the second half. This is, however, before taking into account the investment in the initial build out of local loop unbundling amortization of intangibles and the impact of Hurricane Ivan. Trading Overview Revenue from continuing operations for the six months to 30 September 2004 was GBP1,618 million, a 7% decline from the prior year reflecting a 2% decline in revenue at constant currency and a 5% decline resulting from adverse exchange rate movements. Revenue from continuing operations before acquisitions for the six months to 30 September 2004 of GBP1,584 million fell by 4% at constant currency from the prior year reflecting an 18% decline in revenue from Japan and a 34% decline in revenue from Europe. Revenue from the U.K. was down 1% from the prior year. At constant currency, revenue from the National Telcos[1] increased by 6% from the prior year as a result of the contribution from Monaco Telecom, which was acquired in June 2004. Operating profit from continuing operations before exceptional items and amortization for the six months to 30 September 2004 was GBP157 million, an improvement of GBP34 million over the prior year, reflecting a 49% improvement at constant currency, partially offset by the impact of adverse exchange rate movements. Operating profit before exceptional items and amortization from the U.K. for the six months to 30 September 2004 rose by GBP46 million compared with the prior year. This reflects the reduction in operating costs under the restructuring program and a lower depreciation charge, as a result of the impairment to assets in the prior year, which more than offset the impact of pricing pressure and the net operating costs associated with the development of Bulldog Communications. Operating profit before exceptional items and amortization from the National Telcos for the six months to 30 September 2004 fell by GBP11 million from the prior year, reflecting a 5% improvement at constant currency offset by the impact of adverse exchange rate movements. The improvement at constant currency from the prior year principally reflects a lower depreciation charge as a result of the impairment to assets in the prior year and the contribution from Monaco Telecom. Taken together, these factors more than offset the continuing adverse impact of liberalization and competition. Income from joint ventures and associates for the six months to 30 September 2004 of GBP21 million was in line with the prior year, as an increase in earnings from Batelco offset the adverse impact of exchange rate movements. On a constant currency basis, income from joint ventures and associates rose by 14% from the prior year. Profit before tax and exceptional items from continuing operations was GBP199 million for the six months to 30 September 2004 compared to GBP185 million in the prior-trading overview revenue from continuing operations for the six months to 30 September 2004 was GBP1,618 million, a 7% decline from the prior year reflecting a 2% decline in revenue at constant currency and a 5% decline resulting from adverse exchange rate movements. Revenue from continuing operations before acquisitions for the six months to 30 September 2004 of GBP1,584 million fell by 4% at constant currency from the prior year reflecting an 18% decline in revenue from Japan and a 34% decline in revenue from Europe. Revenue from the U.K. was down 1% from the prior year. At constant currency, revenue from the National Telcos[1] increased by 6% from the prior year as a result of the contribution from Monaco Telecom, which was acquired in June 2004. Operating profit from continuing operations before exceptional items and amortization for the six months to 30 September 2004 was GBP157 million, an improvement of GBP34 million over the prior year, reflecting a 49% improvement at constant currency, partially offset by the impact of adverse exchange rate movements. Operating profit before exceptional items and amortization from the U.K. for the six months to 30 September 2004 rose by GBP46 million compared with the prior year. This reflects the reduction in operating costs under the restructuring program and a lower depreciation charge, as a result of the impairment to assets in the prior year, which more than offset the impact of pricing pressure and the net operating costs associated with the development of Bulldog Communications. Operating profit before exceptional items and amortization from the National Telcos for the six months to 30 September 2004 fell by GBP11 million from the prior year, reflecting a 5% improvement at constant currency offset by the impact of adverse exchange rate movements. The improvement at constant currency from the prior year principally reflects a lower depreciation charge as a result of the impairment to assets in the prior year and the contribution from Monaco Telecom. Taken together, these factors more than offset the continuing adverse impact of liberalization and competition. Income from joint ventures and associates for the six months to 30 September 2004 of GBP21 million was in line with the prior year, as an increase in earnings from Batelco offset the adverse impact of exchange rate movements. On a constant currency basis, income from joint ventures and associates rose by 14% from the prior year. Profit before tax and exceptional items from continuing operations was GBP199 million for the six months to 30 September 2004 compared to GBP185 million in the prior year. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [1] National Telcos comprise operations in the Caribbean, Panama, Macau and Rest of World as described on pages 19 to 24. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - A full copy of this press release is available free of charge at http://bankrupt.com/misc/Cable_Wireless_results04.pdf. * * * CONTACT: CABLE & WIRELESS PLC 124 Theobalds Rd. London WC1X 8RX, United Kingdom Phone: +44-20-7315-4000 Fax: +44-20-7315-5198 Web site: http://www.cw.com/new CABLE & WIRELESS: Chief Operating Officer to Resign Next Month -------------------------------------------------------------- Cable and Wireless plc on Wednesday announced its results for the six months to 30 September 2004/5. The group also commented on mid-term progress on its program to reshape the company and announced a number of organizational changes to further strengthen the business as the group moves to the next stage of its development. As a consequence Cable & Wireless is announcing a number of management changes. Having made good progress with the restructuring of its National Telco business, exited the U.S. and a number of non-core overseas operation, chief operating officer, Kevin Loosemore has announced that he will step down from the Board on 1 December 2004. He will leave the company at the end of March 2005. Kevin Loosemore has been chief operating officer of the group since April 2003. In his first fifteen months the focus of the Board was largely on the priorities set out in June 2003, namely exiting the U.S.A., building on National Telcos and restructuring the U.K. to drive performance. The group then moved to the second phase of that program in which the chief executive focused increasingly on the restructuring of the U.K. business and the chief operating officer on the National Telcos. Mr. Loosemore indicated then that he preferred not to take on a role that was exclusively based outside of the U.K. although he agreed to continue with the role on an interim basis. The Board announced the appointment of Harris Jones to the Board in the new post of executive director of international businesses. Reporting to chief executive Francesco Caio, Mr. Jones will take responsibility for the National Telcos and for carrier services. He joins the main Board on 1 December. Mr. Jones has international experience in the telecoms industry, as chief executive officer of T-Mobile U.K. after its acquisition by Deutsche Telekom and previously as a senior executive with Omnipoint Communications and with Sprint Spectrum. Cable & Wireless chairman Richard Lapthorne said: "The group has made more rapid progress than expected against the priorities set out in June 2003, particularly the exit from the U.S. and other non-core markets and our needs have changed. I am extremely grateful to Kevin for the important role he has played in the first part of our program. Having disposed of a number of non-core overseas businesses and made good progress with the restructuring of National Telcos, Kevin and the Board recognize that we have now outlived the need for a wide-ranging chief operating officer role. The Board would like to thank Kevin and wish him well as he develops a plural life as a non-executive director. "As we have separately announced, our chief executive Francesco Caio will assume direct control of all U.K. operations in the new Cable & Wireless. I am pleased to announce the appointment of Harris Jones to the Board as executive director of international businesses. Harris brings world class telecoms experience to his new role and I look forward to his joining the business." The group also announced a series of non-board senior appointments as part of the restructuring of its U.K. and European operations around its key customer segments. Jose-Miguel Garcia has been appointed head of business sales. Mr. Garcia was chief executive officer of Cable & Wireless Panama from 2002-04. He joined Cable & Wireless in January 2000 and has been responsible for C&W Iberia and Head of Enterprise Markets in Europe. Frank Mount, joins the group as head of operations. He was, until recently Leader of European Operations for T-Mobile International and was responsible for network operations outside North America. He was previously Chief Technology Officer for T-Mobile U.K. Ltd. and has been CTO for Viatel Inc. and held similar senior roles with Primos Communications, U.S. Cable and MCI Telecommunications Inc. He spent 18 years with AT&T where he began his telecoms career in 1967. Laurence Huntley joined the group as head of group marketing in August having been Vice President of Marketing for Equant Network Services, Vice President of Strategy for Equant N.V. and latterly ran his own consultancy. The heads of business sales, operations, group marketing and the executive director of international businesses each report to the chief executive. Alan Whelan has been appointed head of carrier services. He has 20 years experience in IT and telecommunications -- most recently leading AT&T's Global Service Provider Markets team, with responsibility for managing almost US$2 billion of business with non-US carriers. He previously held senior positions with Concert & BT. He will report to the executive director of international businesses. Chief executive Francesco Caio said: "Together this team brings high level international experience from the world's leading telecoms businesses. I am delighted that that they have taken up the challenge to drive the Cable & Wireless business forward." The group earlier announced a new organizational structure for the UK and Europe, organized around key customer segments, with a central operations and a group marketing unit each reporting to the chief executive. The restructuring of the U.K. and the consequent creation of a smaller leadership team has removed the need for an additional U.K. chief executive. Royston Hoggarth has therefore decided to leave the Group. "I am very grateful to Royston for his considerable commitment and achievement as chief executive of the U.K. in the first eighteen months of our stabilization program. I would like to thank him for his contribution to this restructuring and for his willingness to help the organization complete this transition." said Mr. Caio. CONTACT: CABLE & WIRELESS Investor Relations: Virginia Porter, Director, Investor Relations Phone: +44 20 7315 4460 Craig Thornton, Manager, Investor Relations Phone: +44 20 7315 6225 Glenn Wight, Manager, Investor Relations Phone: +44 20 7315 4468 Media: Lesley Smith, Director Corporate Affairs Phone: +44 20 7315 4410 Steve Double, Group Head of Media Communications Phone: +44 20 7315 6759 Peter Eustace, Head of Media Relations Phone: +44 20 7315 4495 CARIOCCA TRAINING: Owners Opt to Dissolve Business -------------------------------------------------- At the extraordinary general meeting of the Cariocca Training Limited on October 20, 2004 held at 50 Cariocca Business Park, Ardwick, Manchester M12 4AH, the special, ordinary and extraordinary resolutions to wind up the company were passed. David Norman Kaye of Stanton House, 41 Blackfriars Road, Salford, Manchester M3 7DB has been appointed liquidator for the purpose of such winding-up. COLLEGIUM 134: Sets Deadline for Proofs of Claim ------------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Collegium 134 Limited (Formerly Culverwell Limited) Notice is hereby given that the liquidator intends to make a first and final distribution to creditors of Collegium 134 Limited and that the last date for proving debts against the company, which is being voluntarily wound up, is on December 15, 2004, by which date claims must be sent to Samantha Keen of Grant Thornton U.K. LLP, 31 Carlton Crescent, Southampton SO15 2EW, the liquidator of the company. After December 15, 2004, the liquidator may make that distribution without regard to the claim of any person in respect of the debt not already proved. Samantha Keen, Liquidator November 5, 2004 CONTACT: GRANT THORNTON U.K. LLP 31 Carlton Crescent Southampton SO15 2EW Phone: 023 8022 1231 Fax: 023 8022 4017 Web site: http://www.grant-thornton.co.uk DEUTSCHE SCOTLAND: Appoints Liquidators from KPMG ------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Deutsche (Scotland) Limited Notice is hereby given that we, Jeremy Simon Spratt and Stephen Treharne, both of KPMG Corporate Recovery, 8 Salisbury Square, London EC4Y 8BB, were appointed liquidators of Deutsche (Scotland) Limited on October 21, 2004. Jeremy Simon Spratt and Stephen Treharne, liquidators November 1, 2004 CONTACT: KPMG CORPORATE RECOVERY 8 Salisbury Square London EC4Y 8BB Web site: http://www.kpg.co.uk DOLER LIMITED: Calls in Liquidator from Haines Watts ---------------------------------------------------- At the extraordinary general meeting of the members of the Doler Limited (Formerly known as New Forest Motor Factors Limited) on November 4, 2004 held at Holbrook Court, Cumberland Business Centre, Northumberland Road, Portsmouth, Hampshire PO5 1DS, the special resolution to wind up the company was passed. David Smithson of Haines Watts, Unit 9, Ground Floor, Holbrook Court, Cumberland Business Centre, Northumberland Road, Portsmouth, Hampshire PO5 1DS has been appointed liquidator for the purpose of such winding-up. CONTACT: HAINES WATTS Unit 9, Ground Floor, Holbrook Court, Cumberland Business Centre, Northumberland Road, Portsmouth, Hampshire PO5 1DS Phone: 02392 815342 Fax: 02392 291019 Web site: http://www.hwca.com FAIRWOOD DIESEL: Members Final Meeting Set ------------------------------------------ The final meeting of the members of Fairwood Diesel Engineering (Killay) Limited will be on December 10, 2004 commencing at 10:00 a.m. It will be held at the offices of PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT not later than 12:00 noon, December 9, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT Phone: [44] (121) 200 3000 Fax: [44] (121) 200 2464 Web site: http://www.pwc.com HSC GC: Liquidator to Submit Final Report Mid-December ------------------------------------------------------ The final meeting of the members of HSC GC Limited (formerly The Camberley Heath Golf Club Limited) will be on December 16, 2004 commencing at 10:30 a.m. It will be held at KPMG LLP, 8 Salisbury Square, London EC4Y 8BB. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with KPMG LLP, 8 Salisbury Square, London EC4Y 8BB not later than 12:00 noon, December 15, 2004. CONTACT: KPMG LLP PO Box 695, 8 Salisbury Square, London EC4Y 8BB Phone: (020) 7311 1000 Fax: (020) 7311 3311 Web site: http://www.kpmg.co.uk ILFORD IMAGING: Creditors' Meeting Set Next Week ------------------------------------------------ Name of companies: Ilford Imaging Europe Limited Ilford Imaging UK Limited The creditors of these companies will meet on November 17, 2004 commencing at 2:30 p.m. It will be held at Heron House, Albert Square, Manchester M60 8GT. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Heron House, Albert Square, Manchester M60 8GT not later than 12:00 noon, November 16 2004. JAMES GATTENS: Deadline for Filing of Claims Set ------------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF James Gattens Limited and Rankins' Fruit Markets (Imports) Limited Notice is hereby given the creditors of James Gattens Limited and Rankins' Fruit Markets (Imports) Limited, which are being voluntarily wound up, are required, on or before December 10, 2004, to submit full details of their claims and their names and addresses to Robert Graham Ferguson, the liquidator of the said companies, at KPMG, Stokes House, 17-25 College Square East, Belfast, Northern Ireland, BT1 6DH, and, if so required by notice in writing from the said liquidator, are, personally or by their solicitors, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. R. G. Ferguson, Liquidator November 5, 2004 CONTACT: KPMG LLP Stokes House College Square East Belfast BT1 6DH Phone: +44 (28) 9024 3377 Fax: +44 (28) 9089 3893 Web site: http://www.kpmg.ie LASERPILOT LIMITED: Calls in Liquidator --------------------------------------- At the extraordinary general meeting of the members of the Laserpilot Limited on October 21, 2004 held at NET Line One Project Office, Gregory Boulevard, Nottingham NG7 6LB, the special resolution to wind up the company was passed. Gerald Frederick Davis has been appointed liquidator for the purpose of such winding-up. LAWSON MARDON: Sets Final Meeting of Members -------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Lawson Mardon Thyne Ltd. ProntoSeal Limited William Thyne (Plastics) Limited and William Thyne (Securities) Limited Notice is hereby given pursuant to Section 94 of the Insolvency Act 1986, that final meetings of the members of Lawson Mardon Thyne Ltd., ProntoSeal Limited, William Thyne (Plastics) Limited, and William Thyne (Securities) Limited will be held at the offices of Grant Thornton U.K. LLP, 43 Queen Square, Bristol, BS1 4QR on December 14, 2004 at 10:00 a.m., 10:05 a.m., 10:10 a.m. and 10:15 a.m. respectively, for the purpose of having an account laid before them by the liquidator showing the manner in which the winding-up of the companies have been conducted and the property of the companies disposed of, and of hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the above meetings may appoint a proxy to attend and vote in his place. It is not necessary for the proxy to be a member. Proxy forms must be returned to the offices of Grant Thornton U.K. LLP, 43 Queen Square, Bristol, BS1 4QR not later than 12:00 noon of December 13, 2004. Nigel Morrison, Liquidator November 3, 2004 CONTACT: GRANT THORNTON U.K. LLP 43 Queen Square Bristol BS1 4QR Phone: 0117 926 8901 Fax: 0117 926 5458 Web site: http://www.grant-thornton.co.uk LOOKSMART UNITED: Names Ernst & Young Liquidator ------------------------------------------------ At the meeting of Looksmart United Kingdom Ltd., the special, ordinary and extraordinary resolutions to wind up the company were passed. Elizabeth Anne Bingham and Alan Lovett of Ernst & Young, 1 More London Place, London SE1 2AF have been appointed liquidators for the purpose of such winding-up. CONTACT: ERNST & YOUNG LLP 1 More London Place London SE1 2AF Phone: +44 [0] 20 7951 2000 Fax: +44 [0] 20 7951 1345 Web site: http://www.ey.com LOTUS WATER: GMAC Commercial Appoints Begbies Traynor Receiver -------------------------------------------------------------- GMAC Commercial Finance Plc called in G. N. Lee, J. P. N. Martin and J. Kelly joint administrative receivers for Lotus Water Garden Products Limited (Reg No 963216, Trade Classification: 5190). The application was filed November 1, 2004. The company sells water garden products. CONTACT: BEGBIES TRAYNOR Elliot House, 151 Deansgate Manchester M3 3BP E-mail: manchester@begbies-traynor.com Web site: http://www.begbies.com METASOLV HOLDINGS: Names Joint Liquidators from Ernst & Young ------------------------------------------------------------- Name of companies: Metasolv Holdings (UK) Limited Orchestream Holdings Limited At the extraordinary general meeting of these companies on October 28, 2004 held at 2911 Turtle Creek Boulevard, Suite 940, Dallas, Texas, USA, the special resolutions to wind up the companies were passed. Alan Lovett and Patrick Joseph Brazzill, of Ernest & Young LLP, One More London Place, London SE1 2AF have been appointed joint liquidators for the purpose of such windings-up. CONTACT: ERNST & YOUNG LLP 1 More London Place London SE1 2AF Phone: +44 [0] 20 7951 2000 Fax: +44 [0] 20 7951 1345 Web site: http://www.ey.com NEWBOURNE PLC: Members Agree to Wind up Company ----------------------------------------------- At the extraordinary general meeting of the members of the Newbourne Plc on October 28, 2004 held at 223A Kensington High Street, London W8 6SG, the special resolution to wind up the company was passed. David Anthony Ingram and Brian Reginald Anthony Callaghan have been appointed liquidators for the purpose of such winding-up. NORCAST LIMITED: Sets Creditors Meeting Next Week ------------------------------------------------- The creditors of Norcast Limited will meet on November 18, 2004 commencing at 10:30 a.m. It will be held at The Norfolk Club, 17 Upper King Street, Norwich NR3 1RB. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to McTear Williams & Wood, 90 St Faiths Lane, Norwich NR1 1NE (Fax: 01603 877549) not later than 12:00 noon, November 17, 2004 CONTACT: MCTEAR WILLIAMS & WOOD 90 St Faiths Lane, Norwich NR1 1NE Phone: 01603 877540 Fax: 01603 877549 E-mail: mail@mw-w.com Web site: http://www.mw-w.com PLUS WALL: Names Smith & Williamson Administrator ------------------------------------------------- Stephen Cork (IP No 8627) has been appointed administrator for Plus Wall Limited. The appointment was made November 2, 2004. The company is engaged in trade construction. CONTACT: SMITH & WILLIAMSON LIMITED Bartlett House, 9-12 Bassinghall Street, London EC2V 5NS Phone: 020 7600 2801 Fax: 020 7726 6201/2 Web site: http://www.smith.williamson.co.uk QUADRANGLE GROUP: Creditors' Meeting Set Monday ----------------------------------------------- The creditors of Quadrangle Group Holdings Limited will meet on November 15, 2004 commencing at 10:00 a.m. It will be held at Langham Hotel International, 1 Portland Place, Regent Street, London W1N 4JA. Creditors who want to be represented at the meeting may appoint proxies. RANKINS FRUIT: KPMG Liquidator Enters Firm ------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Rankins Fruit Markets (Imports) Limited Notice is hereby given that I, Robert Graham Ferguson of KPMG, Stokes House, 17-25 College Square East, Belfast, BT1 6DH, was appointed liquidator of Rankins Fruit Markets (Imports) Limited on October 29, 2004. Robert Graham Ferguson, liquidator CONTACT: KPMG LLP Stokes House College Square East Belfast BT1 6DH Phone: +44 (28) 9024 3377 Fax: +44 (28) 9089 3893 Web site: http://www.kpmg.ie SCP (VICTORIA SQUARE): Names PwC Liquidator ------------------------------------------- At the extraordinary general meeting of the SCP (Victoria Square) Limited on 30 September 2004, the special and ordinary resolutions to wind up the company were passed. Richard Setchim and Jonathan Sisson of PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT have been appointed joint liquidators of the company for the purpose of such winding-up. CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com STEWART PLASTICS: Hires Begbies Traynor as Administrator -------------------------------------------------------- Gary Norton Lee (IP No 9204) and James Patrick Nicholas Martin (IP NO 8316) have been appointed administrators for Stewart Plastics Limited. The appointment was made November 1, 2004. The company manufactures other plastic products. CONTACT: BEGBIES TRAYNOR Elliot House, 151 Deansgate Manchester M3 3BP E-mail: manchester@begbies-traynor.com Web site: http://www.begbies.com BEGBIES TRAYNOR Newater House, 11 Newall Street, Birmingham B3 3NY Phone: 0121 200 8150 Fax: 0121 200 8160 Web site: http://www.begbies.com SULLIVANS GROUP: In Administrative Receivership ----------------------------------------------- SME Invoice Finance Limited called in J. C. Sallabank and P. R. Boyle (Office Holder Nos 008099, 008897) joint administrative receivers for Sullivans Group Limited (Reg No 03798665, Trade Classification: 7487). The appointment was made November 2, 2004. The company is engaged in electrical contracting. CONTACT: HARRISONS 35 Water Edge Business Park, Modwen Road, Manchester M5 3EZ Phone: 0161 876 4567 Fax: 0161 876 4554 E-mail: info@harrisons.uk.com Web site: http://www.harrisons.uk.com UNITED SYSTEMS: Names BDO Stoy Hayward Administrator ---------------------------------------------------- Martha H. Thompson and Shay Bannon (IP Nos 8678/01, 5694/01) have been appointed administrators for United Systems And Communications Limited. The appointment was made October 28, 2004. The company is engaged in software consultancy and supply. CONTACT: BDO STOY HAYWARD LLP Kings Wharf, 20-30 Kings Road, Reading, Berkshire RG1 3EX Phone: 0118 925 4400 Fax: 0118 925 4470 E-mail: reading@bdo.co.uk Web site: http://www.bdostoyhayward.co.uk VICTORIA ACQUISITION: Senior Notes Rated 'B'; Outlook Stable ------------------------------------------------------------ Fitch Ratings assigned Victoria Acquisition III B.V's EUR275 million 7.875% senior notes due 2014 a 'B' rating. The agency has also assigned Koninklijke Vendex KBB B.V. a subsidiary of Victoria Acquisition III B.V., a Senior Unsecured 'BB-' rating and its senior secured debt a Long-term 'BB' rating. The Outlook is Stable. The Senior Unsecured rating reflects Vendex's leading market position across different retail formats, strong brand awareness of its HEMA merchandise stores and the opportunities arising from integrating past acquisitions in the DIY business. The strong portfolio of brands and unique private label product offering has enabled the apparel division to achieve margins above those of its peers. The dynamics of the DIY and HEMA divisions are, therefore, positive factors, as opposed to the challenges posed by the limited growth prospects of the department store concept and the cash flow volatility of the apparel and consumer electronics divisions. The reliance on the Dutch market, from which more than 80% of total sales were derived in FY04 (ending January), is considered a weakness given its current economic stagnation, although signs of improvement have been evident early this year. Notwithstanding challenging market conditions, Vendex reported an EBITDA from continuing operations (before exceptional costs and excluding Propcos) of EUR113 million (5.2% margin) in H105, up from EUR99 million in H104 (4.6% margin). "Despite the latest GDP growth, consumer spending remains subdued. The latter, particularly if combined with increasing competitive pressures and the need to invest in store refurbishments, may negate improvements from internal reorganization or cost cutting initiatives," says Pablo Mazzini, Analyst at Fitch's Leveraged Finance team. It should be noted, however, that Vendex's presence across retail's value segment (HEMA), mid-market (V&D department stores) and high-end segment (Bijenkorf department stores) helps to reduce its overall exposure to fluctuations in consumer spending, as demonstrated by HEMA's stable performance in H105. Fitch recognizes as a positive factor the new focus on cost cutting and cash flow management. However, the execution risk regarding a successful turnaround of V&D is an area of concern, despite the progress made in cost savings. Following the EUR80 million cash restructuring provision made in H204, this restructuring plan should continue to bring rewards in H205, along with other cost savings and supply chain initiatives. The high gross lease-adjusted leverage of around 5.9x constrains the current rating. However, Fitch is aware of the shorter average maturity of the group's lease contracts relative to the 8x multiple that the agency would use to capitalize the operating leases. The three-notch differential between the ratings on the notes and the senior secured facilities reflects Fitch's view of the significant difference in the potential recovery prospects in the event of any future forced restructuring or distressed sale scenario given the structurally subordinated ranking of the notes. Although the notes' guarantees will be contractually subordinated to the senior secured facilities, there is a standard 179-day payment blockage period upon a senior payment default, thereby further restricting the enforceability of the subordinated guarantees. During this standstill period, these guarantees, along with the share pledges, may be released should senior lenders take enforcement action. The financing package also included a EUR600 million mortgage loan lent to Propco companies, which benefits from a first ranking pledge over all the properties owned by the group. While this facility is ring-fenced from the rest of the borrower group, it may restrict potential recoveries for senior lenders and note holders since in a distressed situation, the value of the business as a going concern is unlikely to be detached from that of the properties. Whilst noting the existence of restrictive covenants, recoveries for bondholders may be negatively impacted should guarantors and non-guarantors (the latter comprising 26% of EBITDA excluding Propcos) incur additional debt. This, along with any liabilities incurred by non-guarantors, including their trade creditors, will rank ahead of the Notes in a distressed scenario. Koninklijke Vendex KBB was formed by the merger of two of the oldest and largest retail groups in the Netherlands, Vendex and KBB, in 1999. The group was subject to a leveraged buy-out completed in July 2004, sponsored by Kohlberg Kravis Roberts & Co. and Alpinvest Partners. Vendex generated in the 12 months to July 2004 net sales of EUR4.5 billion and EBITDA of EUR267 million (pro-forma Restricted Group -i.e. including approximately EUR65 million of internal leases paid to the Propcos). These ratings have been initiated by Fitch and are based on public information only. CONTACT: FITCH RATINGS Pablo Mazzini, London Phone: +44 (0) 20 7417 3540 Jonathan Pitkanen Phone: +44 (0) 20 7417 4201 Media Relations: Alex Clelland, London Phone: +44 20 7862 4084 WESLEYAN HOME: Calls in Joint Liquidators from PwC -------------------------------------------------- At the extraordinary general meeting of Wesleyan Home Loans Limited on 1 November 2004, the special, ordinary and extraordinary resolutions to wind up the company were passed. Tim Walsh and Jonathan Sisson of PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT have been appointed joint liquidators of the company for the purpose of such winding-up. CONTACT: PRICEWATERHOUSECOOPERS LLP Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT Phone: [44] (121) 200 3000 Fax: [44] (121) 200 2464 Web site: http://www.pwc.com YELL GROUP: Reports GBP52.7 Million Pre-tax Profit -------------------------------------------------- Highlights of financial results for the six months ended 30 September 2004: (a) Group turnover up 6.3% to GBP604.6 million; 12.3% at a constant exchange rate; (b) Group adjusted EBITDA up 9.8% to GBP206.0 million; 14.6% at a constant exchange rate; (c) Group adjusted profit after tax GBP60.7 million, excluding exceptional legal costs (GBP22.1 million last year, excluding exceptional IPO costs); (d) Group operating cash flow less capital expenditure up 11.0% to GBP170.6 million; up 14.6% at a constant exchange rate; (e) Diluted earnings per share before amortization and exceptional costs up 18.3% to 15.5 pence (13.1 pence last year on a pro forma basis); (f) Interim dividend up 40% to 4.2 pence per share. Note: Earnings, profit after tax and cash flow figures stated before exceptional legal costs in our U.S. operation of GBP12.8 million (GBP8.0 million net of tax credit) in 2004, and exceptional IPO costs of GBP148.5 million (GBP111.3 million net of tax credit) in 2003. Including these costs the Group made a profit after tax of GBP52.7 million (a loss of GBP89.2 million last year). John Condron, Chief Executive Officer, said: "Yell has delivered another set of strong results, which confirm that the group is well on track to meet full year expectations. In the U.K., our printed directories continue to perform as expected, and Yell.com continues its rapid growth and increasing profitability. In the U.S., our excellent performance is the result of strong organic growth, combined with the benefits of the acquisitions we have made. We are declaring a 40% per share increase in our interim dividend with the intention of recommending the same level of increase for the full year." John Davis, Chief Financial Officer, said: "Yell's success in growing its revenues and profits and in maintaining high cash generation now enables us to raise substantially our dividend this year. Thereafter we intend to maintain our policy of dividend growth at least in line with earnings. This does not constrain our ability to pursue our consistent growth strategy. By taking this step, we also ensure that we continue to operate with an efficient capital structure." A full copy of this press release is available free of charge at http://bankrupt.com/misc/yellresults.htm. CONTACT: YELL GROUP PLC Investors Jill Sherratt Phone: +44 (0) 118 950 6984 Mobile: +44 (0) 7764 879808 Media Jon Salmon Phone: +44 (0) 118 950 6656 Mobile: +44 (0) 7801 977340 CITIGATE DEWE ROGERSON Anthony Carlisle Phone: +44 (0) 20 7638 9571 Mobile: +44 (0) 7973 611888 ********* 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, Liv Arcipe, and Julybien Atadero, Editors. Copyright 2004. 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. 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