TCRLA_Public/020729.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Monday, July 29, 2002, Vol. 3, Issue 148



BANCO RIO: Asks Central Bank For Rediscount Loan of ARS500M
TELEFONICA: Reports Increase In Exposure Up To EUR986.5 MM
TGN: S&P Affirms CRIBs Financial Trust I Bonds Rating


GLOBAL CROSSING: Inks Deal With Dutch National Research Network
TYCO: Appoints Former Motorola Head As Chairman & CEO


AES CORP.: 2Q02 Earnings Lower on Difficult Market Conditions
EMBRATEL: Rules Out Sale Until Mid-2003
EMBRATEL: Refuses To Give Up On Fight Against Telemar
VARIG: Consolidatse Operations; Returning Leased Planes

D O M I N I C A N   R E P U B L I C

SMITH-ENRON: Settles Conflict With Government


DESC: Reports Earnings For Second-Quarter Ended June 30, 2002
GRUPO BITAL: HSBC Concludes Due Diligence
IMPSA: Philippine Regulators OK Contract With EME
ISPAT INTERNATIONAL: Shows Positive Net For 2Q02 Results
SAVIA: Reports Second Quarter of 2002 Results


BLADEX: Steep Share Price Plunge Goes Unexplained

T R I N I D A D   &   T O B A G O

BWIA: Expects To Lose Up To $8.4M for 1H02

     - - - - - - - - - -


BANCO RIO: Asks Central Bank For Rediscount Loan of ARS500M
Banco Rio de la Plata SA is seeking a rediscount loan of ARS500
million from the Central Bank. Already, the Banco Santander
Central Hispano (SCH) unit has received some ARS328 million from
the Central Bank.

According to newspaper Pagina 12, this violates the Argentine
Central Bank's rules against granting loans to units of foreign
banks. The Central Bank will only grant the amount if the unit's
parent companies inject an equivalent amount of equity.

In Banco Rio's case however, Spanish parent SCH openly expressed
it would not provide the Argentine unit with additional capital.  
Also, it did not reveal plans as to whether it will withdraw from
the country.

Banco Rio, one of Argentina's largest banking companies, has
US$1.4 billion in total debt; about US$605 million of which
matures by May 2003 and another US$250 million matures by May

          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page:
          Ana P. Botn, Chairman, Banesto
          Emilio Botn-Sanz, Chairman
          Francisco G. Rold n, Financial Division General Manager

          Investor Relations:
          Phone: + 34.91.558.13.69
                 + 34.91.558.10.05
          Fax: + 34.91. 558.14.53
               + 34.91.522.66.70

          Bartolome Mitre 480
          1036 Buenos Aires, Argentina
          Phone: +54-14-341-1081-1580
          Fax: +54-14-341-1074-1084
          Home Page:
          Ana Patricia B. S. de Sautuola y O'Shea, Chairman
          Jose L. E. Cristofani, Executive Vice Chairman and CEO
          Pablo Caride, Corporate Finance

TELEFONICA: Reports Increase In Exposure Up To EUR986.5 MM
The Telefonica Board of Directors decided to freeze the
activities of its mobile telephone affiliated companies in
Germany, Austria, Italy and Switzerland. Concurrently, they
elected to make provisions amounting to 4,837 million euros to
cover the investments carried out for the acquisition of third-
generation mobile telephone licences.

Consequently, although it does not entail a cash outflow, the
decision produces a revision in the value of Telefonica Moviles
assets. It also means that, from this year, Telefonica Group will
considerably improve its already growing capacity to generate
cash flow.

The Telefonica Board has also studied the favorable evolution of
the company's debt, which has been reduced by 5,455 million euros
during the last 12 months, to 25,788 million euros, and has
therefore decided to propose to the General Shareholders' Meeting
to restore the payment of dividends. Additionally, the Board has
given its approval for the buy-back of a package of up to 2% of
the company's own shares.

The Telefonica Group posted a net loss of 5,574.2 million euros
in the first half of 2002, compared to a net profit of 1,148.6
million euros during the same period a year ago. This result has
been strongly conditioned by the following factors:

-- Net extraordinary provisions amounting to 4,837.5 million
euros associated with the write-down of assets and the provision
for associated restructuring costs in Austria, Germany, Italy and
Switzerland of Telefonica Moviles.  Furthermore, a write-down
associated with the downward revision of the Telefonica Data
investment in Germany (530.0 million euros). The value of the
write-down pertaining to Mediaways' investment, in accordance
with the most conservative accounting criteria, is determined by
an ongoing goodwill recoverability analysis.

-- Additional extraordinary negative results in the amount of
789.8 million euros in January-June 2002 versus the positive
results of 203.4 million euros during the same period in the
preceding year, are explained mainly by: 1) a provision made to
adjust the treasury stock to market values, in the amount of
288.2 million euros, corresponding 250.4 of them to 2Q02.
According to Spanish accounting rules, a provision on year
results must be made for the difference between the average
purchase price of shares and the closing price for the period or
the average price of the stock during the most recent quarter,
whichever is lower. At June 30, 2002, the Group held
approximately 1.5% treasury stock as of the total capital of
Telefonica; 2) 134.4 million euros capital losses from the sale
of securities portfolio versus gains of 261.8 million euros in
June 2001, relating fundamentally to the sale of Azul TV; 3)
lower extraordinary positive results in the amount of 280.4
million euros related to the provision for its fixed assets made
in previous fiscal years by Telefonica de Espana; 4) greater
positive extraordinary results from the provision as a result of
the agreements for the sale of ETI Austria (41.2 million euros)
and the 33.8 million euros write-offs related to MediaPark and
Fieldy BV (Rodven).

-- The difficult economic environment in Argentina affects the
development of Telefonica's business in that country, despite the
measures that have been implemented (cost reductions, investment
reductions, control of bad debt and the implementation of hedging
positions) in order to minimize the impact of the crisis and to
maintain a positive cash flow in pesos. During the first half of
fiscal year 2002, the depreciation of the Argentine peso against
the dollar (-73.7%) has had a 445.7 million euro effect on
financial results, in addition to that recorded in the Group's
2001 results, as a consequence of the fall suffered by the peso
from 1 dollar per 1.7 pesos (1 euro per 1.5149 pesos) to 1 dollar
per 3.80 pesos (1 euro per 3.4084 Argentine pesos). At the close
of June, Telefonica Group's maximum exposure in the various
Argentine companies rose to 986.5 million euros, including the
equity value assignable to those investments, the goodwill and
internal financing provided 6 million more customers

Besides these circumstances the Group's customer base increased
at the end of June to 75.4 million managed customers of fixed
telephony, mobile telephony and pay television combined. These
translated into an increase of 6.1 million clients (+8.8%) over
June 2001 and 758,349 over March 2002. Including total clients,
the figure grew to 80.6 million, a 9.0% increase over last year
and 748,980 more than three months ago.

Consolidated revenues rose to 14,635 million euros

Consolidated revenues rose in the first half of the year to
14,635.5 million euros, representing a year over year fall of
4.4% (2.0 percentage points more than the cumulative figure for
the first quarter of 2002). This performance was caused by the
negative contribution to the growth of consolidated revenues by
Telefonica Latinoamerica (-7.2 percentage points) and Admira
Media (-1.3 percentage points).

If we were to exclude exchange rate effects, which take off 10
percentage points, and the change in the consolidation perimeter
(+1.6 percentage points), the Group's revenues would have grown
by 4.1% versus the first half of 2001. It is significant to
highlight that the adjusted revenue as of March was 3.2%, meaning
that during the second quarter an improvement of 0.9 percentage
points was achieved.

EBITDA turnaround

As a result of the change in revenues and expenses described
above, consolidated EBITDA at the end of the first half reached
6,075.8 million euros, falling by 4.4% from the same period last
year. The variation in the exchange rate reduced EBITDA growth by
10 percentage points, while the change in the consolidation
perimeter added 1.1 percentage points. Thus, adjusted for these
factors, the percentage change in EBITDA would become 4.5% versus
last year and 0.4 percentage points better than last quarter as a
result of the improvement achieved in operating efficiency.

Furthermore, financial expenses increased to 1,609.0 million
euros in the first half of the year, or 73.6% greater than during
the same period last year. However, this growth stems from the
impact of the devaluation the Argentine peso had during the
semester, which was 679.5 million euros. If we were to exclude
these effects, financial expenses for the first half of the year
would have been 929.5 million euros, similar to those of the
first half of 2001.

Net debt at the close of the second quarter of 2002 was 25,788.8
million euros, down 3,152.8 million euros from the net debt of
28,941.6 million euros posted at the end of fiscal year 2001
without having to divest. This decreased was mainly due to the
1,995 million euros of operating cash flow generated by the Group
in the period, as well as to the appreciation of the euro against
the dollar and the Latin-American currencies, accounting for
another 2,030 million euros decreased of non-euro denominated

CONTACT:  Subdireccion General de Comunicacion Corporativa,
          Press Office:
          Fax:  +34-91-532-71-18

          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page:
          Carlos Fernandez-Prida Mendez Nunez, Chairman
          Paul Burton Savoldelli, Vice Chairman
          Fernando Raul Borio, Secretary

TGN: S&P Affirms CRIBs Financial Trust I Bonds Rating
Standard & Poor's Ratings Services affirmed Thursday its double-
'C' rating on TGN CRIBs Financial Trust I's (TGN CRIBs)
convertibility risk-insured bonds.

The affirmation is based on TGN CRIBs' timely payment of the
US$9.5 million interest due on the bonds. Interest and principal
payments are owed semiannually, although principal repayment is
not due to begin until July 2008. The next interest payment for
this transaction is due on Jan. 25, 2003 for US$9.5 million.

The TGN CRIBs transaction benefits from a transfer and
convertibility insurance policy issued by Overseas Private
Investment Corp. However, TGN CRIBs did not need the insurance to
convert pesos into dollars or to transfer those dollars outside
of Argentina.

CONTACT:  Standard & Poor's (Buenos Aires)
          Juan Pablo De Mollein, (54) 114-891-2113
          Felicitas Del Cioppo, (54) 114-891-2120
          Lidia Polakovic, (54) 114-891-2130
          Diane Audino, New York, (212) 438-2388


GLOBAL CROSSING: Inks Deal With Dutch National Research Network
Global Crossing has signed a 15-year contract with the Dutch
National Research network SURFnet to connect the European radio
telescope institute JIVE (Joint Institute for VBLI) with ASTRON
(Stichting Astronomisch Onderzoek in Nederland), the Netherlands'
foundation for research in astronomy. The radio telescopes are
each a part of the EVN (European Very Long Baseline
Interferometry Network), for which JIVE is the central institute
based within ASTRON's premises in Dwingeloo, a remote area in the
north of Holland.

"We're proud to see this growing relationship with SURFnet lead
to exciting projects that will change the way scientists work
together and the nature of the Internet as we know it today,"
said John Legere, chief executive officer of Global Crossing.
"Global Crossing can meet the challenge of insatiable bandwidth
demand to helps research and academic communities work more
productively, bridging together fellow researchers and institutes
via our 100,000 route mile global network."

Linking European radio telescopes from different countries
creates a virtual telescope with a diameter of thousands of
kilometres. As a result of the Global Crossing high-grade fiber
link from Amsterdam to Dwingeloo, this virtual radio telescope
can now be connected directly to the EVN's dedicated data
processor, the most advanced in the world. By using the bandwidth
available through Global Crossing's advanced optical network,
which has a bandwidth of up to 400 Gbits/s for a single fibre,
the telescope's sensitivity will be greatly enhanced, making
visible weak radio sources at the very edges of the universe.

"Advanced networking technologies working without bandwidth
restrictions form the basis of next generation Internet
applications, of which this joint astronomy project is a
wonderful example," says Boudewijn Nederkoorn, Managing Director
of Holland's SURFnet. "Global Crossing has been a first rate
partner for many SURFnet projects facilitating broadband
projects. They are an essential part of this critical link."

"We need this vast receiving surface to get a stronger signal
from the stars," explains Boudewijn Schipper, Head of Systems
Administration at ASTRON. "High capacity fibre will feed the
signals from collectors to our processor at speeds of 16 terabits
per second."

ASTRON is designing and building in-house its own dedicated
computer for signal processing, and is even involved in designing
chips that will be used in the search for extra terrestrial

"Together with SURFnet we chose Global Crossing's advanced
optical network infrastructure because it is the best for the
job," affirms Mr Schipper. "Thanks to the new infrastructure we
have a real-time connection between EVN's global network and
Dwingeloo. This real-time interaction between ASTRON and JIVE
will speed up our research efforts as well as giving us economies
by eliminating the need for the transport of data tapes."

Connecting numerous, dispersed radio telescopes over a high
performance network is the first step towards electronic non-
parabolic telescopes as all-electronic telescopes become
financially attractive due to the increasing manufacturing costs
of traditional steel structures.

ASTRON will also use the advanced optical network for its newest
electronic Internet telescope, LOFAR (Low Frequency Array), a
radio telescope that is more sensitive and gives sharper images
than any current telescope. LOFAR connects numerous dispersed
clusters of flat radio telescopes occupying the space of a
football field and as such, can be accessed anywhere in the world
from a personal computer with a broadband access.

JIVE is the central institute for the European VLBI (Very Long
Baseline Interferometry) network, a European scientific
organisation funded by the European Commission that connects the
radio telescopes from the eight European countries. The
participating research institutes are in The Netherlands,
Germany, the U.K., Italy, Sweden, Spain, Poland and Finland.
Other partners are based in China, Ukraine, the U.S.A. and South

This latest contract from SurfNET builds on Global Crossing's
growing status as a network provider to academic and research
institutions. Among other projects, the company has commissioned
a multi-Gigabit IP Transit Service to DANTE -- the organisation
responsible for managing the world's largest academic and
research network, GEANT. This 10Gbit/s European IP backbone
provides international connectivity to the research community and
comprises 3,000 National Research and Educational Networks in 31
countries. In addition, Global Crossing has a three-year
agreement with FAPESP (Fundacao de Amparo a Pesquisa do Estado de
Sao Paulo), the largest academic research institution in Brazil,
to provide rapid data transmission between universities and
research centres in the US and Brazil.


SURFnet operates the innovative Dutch national research network
that connects over 200 institutions in higher education and
research in the Netherlands. To maintain its leadership SURFnet
puts in a sustained effort to improve the infrastructure and
develop new applications to give users faster and better access
to new Internet services. SURFnet is a key partner in the
GigaPort project whose aim is to give the Netherlands a lead in
the development and use of advanced and innovative Internet
technology. GigaPort runs the SURFnet5 network, considered the
world's most advanced research network with speeds of 10 Gigabit
per second, running IPv4 unicast, IPv6 unicast as well as IPv4
multicast, all in native mode. Universities, polytechnics,
research centres and similar institutions are connected to this
network, which also offers businesses the opportunity to develop
next generation Internet applications. For these network users,
quality, access and high performance are critical requirements.


Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

On January 28, 2002, certain companies in the Global Crossing
Group (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda. On the same date, the Bermuda
Court granted an order appointing joint provisional liquidators
with the power to oversee the continuation and reorganization of
the Bermuda-incorporated companies' businesses under the control
of their boards of directors and under the supervision of the
U.S. Bankruptcy Court and the Supreme Court of Bermuda. On April
23, 2002, Global Crossing commenced a Chapter 11 case in the
United States Bankruptcy Court for the Southern District of New
York for its affiliate, GT UK, Ltd. Global Crossing does not
expect that any plan of reorganization, if and when approved by
the Bankruptcy Court, would include a capital structure in which
existing common or preferred equity would retain any value.

          Press Contacts:
          Mish Desmidt, +44 118 908 6265

          The Communications Group
          Terry Davidson, +32 2 640 92 07

          Sandra Passchier, +31 30 2 305 305

          Boudewijn Schipper, +31 521 59 51 00

          Global Crossing (Investors/Analysts)
          Ken Simril, +1-310-385-3838

TYCO: Appoints Former Motorola Head As Chairman & CEO
Tyco International Ltd. (NYSE: TYC; BSX: TTYI) announced Thursday
that the Board of Directors has appointed Edward D. Breen, the
former President and Chief Operating Officer of Motorola, Inc.,
as Chairman and Chief Executive Officer of the Company.

John F. Fort, Lead Director of Tyco, said, "The appointment of Ed
Breen as Chairman and CEO is a defining moment for Tyco. Ed has a
superb record of tackling very difficult and complex business
challenges, creating effective strategies and methodically
executing on his plans. Over the years he has delivered
consistently strong results while demanding the highest standards
of corporate conduct. He developed General Instrument into an
industry leader in cable and satellite equipment manufacturing
and then played a key role in leading Motorola back to
profitability. Ed has a well-earned reputation for making the
right decisions quickly with a no-nonsense management style and a
sharp focus on the interests of investors, customers and
employees. Equally important, his personal and professional
integrity are unassailable."

Mr. Fort continued, "From the beginning of our search, initiated
only five weeks ago, our Board was determined to select a world-
caliber executive with global experience and unparalleled
leadership qualities. We have accomplished that goal. Ed has
built businesses on an international scale and demonstrated that
he knows how to create lasting value in the companies that he
runs. We considered many highly qualified candidates for this
position. Ed Breen, we concluded, is the ideal CEO to restore
investor confidence, enhance employee morale and build on the
strengths of our operating businesses."

Mr. Breen said, "This is the opportunity of a lifetime. I could
not be more excited about leading this great company, with its
strong businesses and market-leading positions. Tyco and its
employees have successfully weathered a very difficult few
months, and I am confident that we will put the current issues
behind us and begin to forge ahead. All of us at Tyco have a
tremendous opportunity to build on the Company's operating
strengths to realize the true value of this enterprise.

"Over the coming weeks," Mr. Breen added, "I will develop a
specific action plan for the Company that will address four top
priorities: restore confidence in Tyco with our employees,
suppliers, customers and the financial community; enhance and
strengthen the core businesses; ensure that we have the highest
standards of corporate governance in place; and create value for

Mr. Breen, the former Chairman and CEO of General Instrument
Corporation (GI), joined Motorola in January 2000, when General
Instrument and Motorola merged. After the merger, Breen was named
Executive Vice President of Motorola and President of Motorola's
Broadband Communications Sector (BCS), where he succeeded in
integrating the two companies' cable businesses in record time -
a matter of three months. Subsequently, he headed the Networks
Sector, which includes the Global Telecom Solutions Sector, the
Commercial, Government and Industrial Solutions Sector and BCS.
Breen was named Motorola President and Chief Operating Officer-
elect in October 2001 and assumed the role as President and COO
on January 1, 2002. He has been responsible for instituting cost
cutting and other programs to make Motorola a more efficient and
effective organization and has led the company back to

As Chairman and CEO of GI, Breen is credited with making the
cable equipment-maker the leader in the industry, with its
cutting-edge digital set-top boxes and digital programming
distribution services. Between 1994 and 1997, Breen was President
of the Broadband Networks Group for General Instrument, President
of Eastern Operations for the Communications Division and served
as Executive Vice President of Terrestrial Systems, where he
directed the division's terrestrial products worldwide and
managed the division's addressable, distribution and telephony
strategic business units.

From 1988 to 1994, as Senior Vice President of sales, Breen was
responsible for the terrestrial products worldwide sales
organization. This included overseeing sales personnel and
activities in the United States, Canada, Latin America, Europe
and Asia Pacific.

Breen joined General Instrument in 1978.

In December 1999, Breen was ranked one of the top fifteen of
CableFAX Magazine's 100 most influential people in cable. In
1998, Breen won the National Cable Television Association's
Vanguard Award for high achievers in cable. He is a director of
CommScope, Inc.

Breen is a graduate of Grove City College, North Pittsburgh,
Pennsylvania, with a bachelor of science degree in Business
Administration and Economics. He is married with three children
and lives in New Hope, Pennsylvania.

The executive search that resulted in Mr. Breen's appointment was
led by Dennis Carey and Dayton Ogden of Spencer Stuart on behalf
of Tyco.

About Tyco International Ltd.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services; and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in disposable medical products and plastics
and adhesives. Tyco operates in more than 100 countries and had
fiscal 2001 revenues from continuing operations of approximately
$34 billion.

CONTACT:  Kathy Manning (Investors)
          Phone: 603-775-2159


AES CORP.: 2Q02 Earnings Lower on Difficult Market Conditions
The AES Corporation (NYSE: AES) reported earnings from recurring
operations of $142 million, or 26 cents per share, for the second
quarter ended June 30, 2002, down 22% from $181 million, or 33
cents per share, in the year earlier quarter.

Earnings from recurring operations for the six months ended June
30, 2002, were $317 million, or 59 cents per share, down 22% from
$405 million, or 75 cents per share, for the six months ended
June 30, 2001.

Parent operating cash flow was $1.3 billion for the twelve months
ended June 30, 2002 and $263 million for the second quarter of
2002. Parent company liquidity at June 30, 2002, stood at $359
million and the total consolidated balance of cash and cash
equivalents was approximately $1.3 billion at that date.

"We are pleased with this quarter's operating results and our
demonstrated cash flow," said President and Chief Executive
Officer, Paul Hanrahan. "In addition to nearly $800 million of
asset sales this year, we remain optimistic about our ability to
generate up to an additional $1 billion from asset sales in the
next 18 months. Our liquidity expectations continue to improve
and we are confident in our ability to perform in this area.
However, the economic and political environment in South America
continues to worsen and that will clearly have an impact on our
earnings for the remainder of the year."

Balance Sheet Strengthening

Mr. Hanrahan noted that AES is on target with a number of
initiatives to strengthen its balance sheet. AES has previously
announced agreements to sell two subsidiaries, CILCORP in
Illinois and AES NewEnergy. "We are on schedule at the parent to
realize over $500 million in cash from the CILCORP sale by the
first quarter of 2003, and approximately $240 million by the
fourth quarter of 2002 from the sale of NewEnergy," he said.

AES further strengthened its balance sheet in the second quarter
by completing non-recourse debt financings of $215 million
associated with AES Puerto Rico and $45 million associated with
the AES Kilroot power plant in Northern Ireland. Proceeds from
both of those financings contributed to improved corporate
liquidity. "The predictable revenue streams at these contract
generation businesses, similar to a significant portion of our
operating portfolio, made it possible to obtain attractive long-
term financing that does not require parent company credit
support," said Barry Sharp, Chief Financial Officer.

Brazil Developments

AES also stated that Eletropaulo, in Sao Paulo, Brazil, has begun
a process to rollover its operating company debt that comes due
in the second half of 2002. These financings must be rolled over
due to delays in receipt of loans from Banco Nacional de
Desenvolvimento Economico e Social (BNDES) associated with the
rationing agreement signed on July 4, 2002 and the current lack
of available financing in the Brazilian market.

Mr. Hanrahan stated, "Given the uncertain regulatory environment
in Brazil, we are not willing to inject more capital into our
Brazilian businesses. Fundamental market and industry reforms
need to be made in Brazil and we decided not to inject capital
into the Brazilian sector until such changes are made, even if
that means risking our current investment in some of our
businesses there. Our commitment to AES lenders and shareholders
requires we take this position. All of the debt associated with
Eletropaulo, both at the operating company and the holding
company levels, is non-recourse to AES and AES has no obligation
to make any further investments into Brazil."

Second Quarter GAAP Results

Second quarter 2002 earnings of $.26 per share from recurring
operations excludes several non-cash charges aggregating ($.44)
per share related to (i) a loss arising from the impact of the
unfavorable regulatory action in Brazil related to AES Sul ($.18)
per share, (ii) the write-down of impaired telecom investments in
Latin America ($.10) per share, (iii) net foreign currency
transaction losses associated with businesses in Latin America
($.21) per share and (iv) a gain under FAS 133 of $.05 per share.
Including those items, the per share loss from continuing
operations according to generally accepted accounting principles
is ($.18) for the second quarter of 2002 as compared to income of
$.27 for the second quarter of 2001.

The Company also recorded a loss of ($.27) per share from the
results of discontinued operations during the quarter primarily
related to telecom investments in Brazil and a gain of $.23 per
share from the cumulative effect of the change in accounting
principle related to a new FAS 133 interpretation relating to
long-term power sales contracts that was effective on April 1,

As a result, the net loss per share after discontinued operations
and the cumulative effect of the accounting change for second
quarter 2002 was ($.22) per share. Revenues for the second
quarter were $2.1 billion, up 14% percent from a year earlier.

Executive Office Reorganization

AES also announced a reorganization of its Executive Office,
which will consist of Paul Hanrahan, who was elected President
and Chief Executive Officer on June 18, Chairman of the Board
Roger Sant, General Counsel Bill Luraschi, Chief Financial
Officer Barry Sharp and the three Chief Operating Officers - Stu
Ryan, John Ruggirello and Mark Fitzpatrick.

The structure of the organization assigns geographic
responsibilities among the three Chief Operating Officers. Mark
Fitzpatrick has responsibility for Latin America. Stu Ryan is
responsible for North America, now defined to include Puerto Rico
and Mexico. John Ruggirello has responsibilities for Europe,
Africa, the Middle East, the Commonwealth of Independent States
(CIS) and Asia. He will also have responsibility for company-wide
assignments including, currently, cost cutting and benchmarking

"Given the nature of our business, geographic areas of
responsibility make the most sense for our Chief Operating
Officers," said Mr. Hanrahan. "Each of our COO's has the broad
experience necessary to deal with the mix of operational,
regulatory, and political issues that present themselves in our
global business.

2002 Guidance

The economic and political environments in Latin America - and
the impact on currency exchange rates, electricity prices and
demand - as well as the current turbulence in the US energy and
capital markets underscore the uncertainty and risk inherent in
forward looking statements about earnings. Because of this
uncertainty, AES must make certain assumptions to provide
earnings guidance for the second-half of 2002. These assumptions
include second-half average and year-end exchange rates of the
Brazilian Real to the U.S. Dollar of 2.92 and 3.00, respectively;
and second-half average and year-end exchange rates for the
Venezuelan Bolivar to the U.S. Dollar of 1,650 and 1,950,

Based upon these and other assumptions, AES currently expects
that earnings from recurring operations for 2002, derived from
our existing portfolio of businesses, will be between $1.00 and
$1.10 per share.

The reduction in this estimate from previous guidance primarily
reflects our estimates of continued and sustained weakening of
the Brazilian Real and Venezuelan Bolivar relative to the U.S.
Dollar, reduced economic activity in Brazil and Venezuela, as
well as slower than anticipated recovery of electricity demand to
pre-rationing levels in Brazil.

AES also anticipates that a further 10% change in the average
exchange rates for the rest of 2002 will result in a change in
anticipated earnings for 2002 of approximately $.02 per share for
every such change in the Real and $.01 per share for every such
change in the Bolivar. AES is also pursuing potential asset sale
transactions, and the potential impacts of these, if any, are not
included in these forward-looking statements.

The revised expectations exclude foreign currency transaction
gains and losses at our businesses in South America, gains and
losses arising from the application of Financial Accounting
Standards Board Statement No. 133, gains and losses from the sale
or write-down of investments, the unfavorable regulatory action
in Brazil mentioned above, the results of our discontinued
operations, and gains and losses arising from the adoption of new
accounting pronouncements in 2002.

Other Information

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 177
facilities totaling over 59 gigawatts of capacity, in 33
countries. AES's electricity distribution network sells over
108,000 gigawatt hours per year to over 16 million end-use

To see financial statements:

CONTACT:          The AES Corporation, Arlington
                  Investor Relations Contact Person:
                  Kenneth R. Woodcock
                  (703) 522 1315

Standard & Poor's said Thursday it lowered its foreign currency
and local currency corporate credit ratings on Brazilian utility
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. to
triple-'C' from single-'B'. The downgrade follows the Company's
announcement that it would not be able to repay debt maturities
coming due in the second semester as originally contracted.

The ratings were placed on CreditWatch with negative
implications. Eletropaulo's debt totals US$1.7 billion (excluding
parent company debt).

Eletropaulo's efforts to raise new financings in the first
semester were made more difficult due to the volatility of the
financial markets. The company entered negotiations with its
creditors to stretch out the tenor of some $600 million in debt
coming due in the next few months. As the outcome of these
negotiations is uncertain, the ratings were placed on CreditWatch
with negative implications, given the likelihood of a default if
both sides are not able to reach an agreement.

Because of the current adverse environment for Brazilian
corporates and Eletropaulo's significant refinancing risk, the
company will not be able to repay debt at maturity unless
creditors agree to restructure the repayment schedule in such a
way that it matches up to the company's operating cash generation

The CreditWatch will be resolved as soon as the conditions under
which creditors accept to refinance Eletropaulo's debt are known,
and Standard & Poor's is able to analyze the company's cash flow
and coverage ratios considering the resulting amortization

          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations

EMBRATEL: Rules Out Sale Until Mid-2003
The head of WorldCom Inc.'s Brazilian unit Embratel announced a
sale won't take place before mid-2003, noting that Brazilian law
does not allow for the sale of control of privatized telephone
companies until five years after the state sold them off, which
would be July 2003, reports Reuters.

"The privatization laws and rules are very clear," Embratel
President Jorge Rodriguez said.

The announcement came amid speculations that Embratel might have
found a way to skirt the law allowing it to be sold off before
mid-2003. Rumors that Embratel will be sold off have escalated
since WorldCom's accounting scandal and record U.S. bankruptcy
file on Sunday.

Analysts looking at the value of the Company say it is worth much
more than its stock price indicates after WorldCom's problems and
its poor results wiped 82.5% off the value of the shares since
the start of the year.
"The market price is very low, close to BRL558 million (US$189
million)," said Fator Doria Atherino analysts Jacqueline Lison
said. "The infrastructure and client portfolio alone are worth
more than that."
Embratel posted a second quarter loss of BRL152.2 million (US$52
million) on Tuesday, a sharp deterioration from the BRL38.8
million loss in the second quarter of 2001.
A 17.5%-depreciation in Brazil's currency, the real, was the main
villain as it magnified its overseas debt costs in local terms.
But revenue also dipped and provisions for nonpayment of bills
remained high.
The real slumped as Latin America's biggest economy was hit by
high interest rates, a global downturn, and market concerns about
October's general elections and Wall Street weakness.
Embratel's second quarter loss was smaller than many analysts
expected, thanks in part to an unexpected BRL193 million one-time
gain Embratel added from a tax rebate.

          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010

          500 Clinton Center Drive
          Clinton, MS 39056
          Phone: (601) 460-5600
          Fax: (601) 460-8350
          John Sidgmore, President and CEO

EMBRATEL: Refuses To Give Up On Fight Against Telemar
Brazilian phone operator Embratel filed legal action Thursday to
block local fixed-line giant Telemar from competing in the
domestic long-distance market where it makes much of its revenue,
relates Reuters.

The move came just a week after Telemar began providing domestic
long-distance services after getting an injunction from Brazil's
National Telecommunications Agency (Anatel).

"We are not going against Anatel in this case," Embratel legal
director Pedro Batista Martins stated. "We are attacking a
deferred injunction," he said, adding, "We are not saying whether
Anatel is right or wrong."

Telemar obtained the injunction to start offering domestic long-
distance calls after reaching investment targets set down by the
government as a condition for operating outside its concession
for fixed-line calls in 16 Brazilian states.

The injunction was necessary for Telemar to initiate operations
after Embratel blocked Telesp (TLPP4), a unit of Spanish giant
Telefonica, from launching its planned domestic long-distance
service with a separate legal action.

At first, Anatel said it would not allow Telemar to start
offering Brazilian long-distance calls until the legal battle
between Telefonica and Embratel had been resolved, but the fixed-
line company got around that with its own injunction.

Embratel has stopped Telefonica with the argument that Anatel
should have offered the domestic long-distance concession up in a
tender before giving it to the Spanish company. That legal battle

VARIG: Consolidatse Operations; Returning Leased Planes
Latin America's largest airline, Varig SA announced it will
consolidate regional operations and return leased planes to cut
costs. The move will result in its three airlines, Rio Sul, Varig
and Nordeste sharing flight and airport facilities and to 11
leased Boeing-737s being returned to General Electric Capital
Corp. by the end of September. In place of the returned units,
the airline will lease four Boeing-737s from other companies at
lower prices.

Management, however, declined to disclose the amount that will be
saved from the measures. The airline company had earlier returned
seven planes to GE Capital and cut some daily flights to Buenos
Aires because of weak demand.

Varig is also planning to raise BRL850 million, BRL300 million of
which to be provided by BNDES (Banco Nacional de Desenvolvimento
Economico e Social) through the issuance of convertible

The airline's preferred shares, its most-traded class of stock,
fell 2.5% Thursday to close at BRL1.15 on the Sao Paulo Stock
Exchange. The shares have lost 28% in the local currency, the
real, and 44% in U.S. dollars this year.

Unable to post a profit in four years, Varig is yet to get back
on firm footing since the country's domestic air travel market
was opened to competition in the early 1990s and after a currency
devaluation in 1999

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page:
          Dorival Ramos Schultz, EVP Finance and CFO

          Investor Relations:
          Av. Almirante Silvio de Noronha,
          n  365-Bloco "B" - s/458 / Centro
          Rio de Janeiro, Brazil

D O M I N I C A N   R E P U B L I C

SMITH-ENRON: Settles Conflict With Government
Smith-Enron Cogeneration Limited Partnership, Inc. finally
reached an agreement with the Dominican government that settled a
conflict regarding its 185-megawatt combined-cycle power facility
mounted on a barge at Puerto Plata.

According to a DR1 Daily News report, the government agreed to
pay the Company US$11 million supposedly on Thursday, US$20
million 60 days after that, when another contract is signed and
another US$11 million in December. Smith-Enron, in turn, agreed
to switch the plant on in mid August, which, as a result, will
put an end to long power outages that has affected the Cibao

The original conflict stemmed from a contract signed by the
Dominican state in 1994 during the government of the late
President Balaguer. The contract was supposed to expire in 2015.
The Dominican government offered to pay US$20 million on overdue
receivables to rescind the contract, which it considered the most
onerous of all signed with private power producers. It had
required the government to pay the Company US$3.5 million,
regardless of whether the plant was in operation or not. However,
Smith-Enron negotiators had asked for US$35 million.

The U.S. Maritime Administration previously revealed in a letter
that the U.S. government and Enron Corp. each own a stake in the
cash-strapped power plant. In the letter, Bruce J. Carlton, the
acting deputy director of the administration, had written that
the federally guaranteed plant has debts of US$27 million and has
"significant operational, profitability and debt service

          Avenida Winston Churchill #1100
          Edificio La Universal de Seguros
          4to. Piso
          Santo Domingo, D.R.
          Sr.Edgar Pichardo
          Phone: (809)5638182


DESC: Reports Earnings For Second-Quarter Ended June 30, 2002
Desc, S.A. de C.V. (NYSE:DES; BMV:DESC) announced Thursday its
results for the second quarter ended June 30, 2002. All figures
were prepared according to generally accepted accounting
principles in Mexico.

Results from the Autoparts Sector experienced a significant
increase in its margins due to the cost and expense reductions
plan implemented in 2001. The Chemical Sector results showed a
greater activity in practically all the products, due to its
slight market recovery.

As a result, Desc managed to slightly increase its operating
margin to 8.7%. This slight increase when compared to the 2Q01
reflects the implementation of the cost and expense reduction
programs, which translates into a 1.6% decline in SG&A when
compared to the second quarter of 2001.

Second Quarter 2002 Highlights:

- Dollar-denominated sales decreased 0.4%, from US$554 million in
the second quarter of 2001 to US$551 million in 2Q02.

- Operating income slightly increased 0.5% remaining at US$48
million in 2Q02 as well as 2Q01.

- EBITDA in dollars decreased 1.9% to US$79 million, when
compared to the same quarter of the previous year.


During the first quarter, dollar-denominated sales decreased 0.4%
to US$551 million compared to US$554 million reported for the
same quarter of the previous year. This decline was mainly caused
by the 2.9% reduction in Unik (Autoparts Sector), which reflects
the closing of the spark plugs and the electric parts businesses
(these businesses are being closed and/or sold due to their
negative operating margins). The Chemical Sector showed a 2.0%
decline in revenues due to the closing of the natural pigments

Sales from the Food Sector declined 0.7% due to the drop in pork
prices. Sales from the Real Estate Sector increased 44.9% mainly
due to the Punta Mita and Arcos Bosques projects.


During the second quarter, exports reached US$ 265 million, which
represents 48.0% of total sales. Total exports remained in-line
with the figures reported during the same period of the previous
year, due to the 3.5% increase in the Chemical Sector and the
11.8% increase in the Food Sector, which compensated for the 2.9%
decline in the Autoparts Sector.

Operating Income, Margin and EBITDA

During 2Q02 operating income slightly increased 0.5% to US$48
million, which is in-line with that obtained during 2Q01.
Operating margin reached 8.7%, which represents an increase when
compared to the second quarter of 2001.

EBITDA for the second quarter of 2002 was US$79 million, in-line
with the figure reported during 2Q01.

The factors that impacted the results were:

- Lower sales reported during the quarter as a result of the
closing of the spark plugs and the electric component businesses
(both in the Autoparts Sector) as well as the natural pigments
business (in the Chemical Sector).

-The increase in the prices of petrochemical raw materials
(butadiene and styrene), was unable to pass on to the final

- The decline in pork price, the impact in costs and the low
productivity in the operation of the Bajio region.

- The efficient cost and expense reduction programs, mainly in
the Autoparts Sector.

- The rationalization of investment in capital expenditures.


During the quarter, tax provisions were US$23.4 million, which
includes Income and Asset Taxes and Employee Profit Sharing.
Additionally, deferred taxes had a positive effect in the amount
of US$25.7 million. Net tax provisions resulted in a favorable
US$2.3 million.

Net Majority Income (Loss)

Net majority loss for the quarter was US$29 million, which
represents a decline compared to the US$29 million net income
achieved during the second quarter of 2001. This result was due
to the increase in the exchange loss, which resulted from a
depreciation of the peso of over 5% versus the dollar during the

Capital Expenditures

CAPEX reached US$40.8 million during the quarter, while
divestitures were US$3.4 million, the details of which can be
found in the discussion of each sector.

Debt Structure

Desc continued to improve its financial position. During the
quarter the net debt declined US$14 million causing an
improvement in Desc's financial ratios.

In June, Desc successfully completed two syndicated loan
transactions (one in pesos and one in dollars) for US$410
million. These transactions significantly improved Desc's debt
profile from 65% in long-term debt and 35% in short-term debt,
reported during 1Q02, to 83% in long-term debt and 17% in short-
term debt, in 2Q02. Of the total amount, US$275 million were
dollar-denominated and $Ps.1,300 million were in pesos. Despite
the difficult economic environment, the rates at which Desc
managed to obtain those loans (LIBOR

+ 154 basis points and TIIE + 90 basis points) is evidence of the
confidence that the financial community has in Desc. The interest
coverage ratio has significantly improved from 3.0x during the
second quarter of 2001 to 3.8x during the current quarter.

At the end of the quarter, the debt composition was 69% dollar-
denominated and 31% peso-denominated. The average cost of debt at
June 30, 2002 was 4.8% in dollars and 9.11% in pesos, a
significant improvement compared to the average rate as of June
30, 2001 of 7.0% in dollars and 15.6% in pesos. In accordance
with Desc's strategy of strengthening its balance sheet, year-to-
date, the Company has repurchased US$ 19.3 million of Dine's 2007
Yankee Bond, with a coupon of 8.75%. The current balance of the
Yankee Bond is US$75 million, equivalent to 50% of the bond's
face value.

Relevant Events

Desc-Dine Merger

During the General Annual Ordinary and Extraordinary
Shareholders' Meeting, which took place on April 25, 2002, the
merger of Desc with its Dine subsidiary was approved, with Desc
being the surviving entity and Dine the merged company.

Dividend Payment

Continuing with the policy of paying dividends to shareholders,
during the General Annual Ordinary and Extraordinary
Shareholders' Meeting, a cash dividend payment was approved equal
to Ps. 0.29 per each currently outstanding share, payable in four
quarterly installments in July 2002, October 2002, January 2003
and April 2003, for the equivalent of Ps. 0.0725 per share.

On July 25th, the first installment equivalent to US$10 million
was paid. This represents a dividend yield of approximately 5.4%.

Closing of Small Businesses in the Autoparts and Chemical Sectors

As part of the restructure announced in January 2002, during the
quarter the decision to close or sale the following non-strategic
businesses was made:

Autoparts Sector
- Spark plugs
- Electric parts
Chemical Sector
- Natural Pigments

These closings are in-line with the strategy of focusing on
businesses with the greater value generation potential.

To see financial statements:


Arturo D'Acosta
Alejandro de la Barreda
Tel: 5255-5261-8037

Blanca Hirani
Melanie Carpenter
Tel: 212-406-3693

GRUPO BITAL: HSBC Concludes Due Diligence
HSBC Holdings PLC, Europe's biggest bank with market value of
about US$109 billion, is expected to make an announcement soon
regarding its decision over the control of Mexico's Grupo
Financiero Bital SA.

According to a report by Dow Jones Newswires, the U.K. banking
group has just concluded its due diligence at Mexico's fourth-
largest financial services company. The conclusion came just days
after Spanish minority shareholder Santander Central Hispano SA
(SCH) balked at a plan to boost its stake in Bital, citing a high
price expected by controlling shareholders. SCH, which controls
Mexico's third-largest financial services concern, Grupo
Financiero Santander Serfin, completed its due diligence at Bital
earlier this month.

Bital is undergoing a US$400-million capitalization program
agreed upon with regulators, although additional capital
requirements may force shareholders led by the Berrondo and
Esteve families to divest their controlling stake.

In addition to SCH's control of 30% of voting rights, executives
from Netherlands-based ING Groep NV last week said that the Dutch
giant was continuing talks to purchase a 17.5%-stake in Bital for
US$200 million.

          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Home Page:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar

          10 Lower Thames St.
          London EC3R 6AE, United Kingdom
          Phone: +44-020-7260-0500
          Fax: +44-020-7260-0501
          Home Page:
          Sir John R. H. Bond, Group Chairman/Executive Director
          Sir Brian Moffat, Deputy Chairman/Senior Non-Executive
          Keith R. Whitson, Group Chief Executive

          Plaza de Canalejas,1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page:
          Ana P. Botin, Chairman, Banesto
          Emilio Botin-Sanz, Chairman
          Francisco G. Rold n, Financial Division General Manager

          Investor Relations:
          Phone: + 34.91.558.13.69
                 + 34.91.558.10.05
          Fax: + 34.91. 558.14.53
               + 34.91.522.66.70

IMPSA: Philippine Regulators OK Contract With EME
The Philippine authorities approved the contract between CBK
Power Company, a subsidiary of IMPSA (Industrias Metalurgicas
Pescarmona), and American company EME (Edison Mission Energy), La
Nacion reports. The announcement comes after the Philippine court
concluded an investigation for possible irregularities in the

The contract includes the reactivation, construction and
operation of 3 hydroelectric plants in the Caliraya, Botocan and
Kalayaan areas in the Philippines.

The international financing of the contract is seen to help Impsa
renegotiate its debt by generating a profit in the equity
percentage of nearly 18% of the levy to be paid by the
Philippine's National Power Corporation (Nacopor) in dollars. The
levy is to be paid by Napocor at a fixed rate for 25 years.
Napocor so far has paid US$5 million for the Kalayaan power

The financing has reached US$486 million, according to Manila
Times newspaper. It consists of long-term loans in the amount of
US$340 million, and equity contributions from IMPSA and EME
totaling US$120 million. The loans are insured under a private
risk insurance program. Both loans and equity cover the costs
associated with the rehabilitation and expansion of the CBK
hydroelectric plants. The financing would also fund a special
loan of US$70.8 million from CBK Power Co. to Napocor.

Earnings of around US$120 million annually will be shared by 19
banks which financed this project, Impsa and EME. The banks
include Societe Generale, Banque Nationale de Paris, Dai-Ichi
Kangyo Bank and Industrial Bank of Japan.

The contract between CBK and EFE is also expected to generate an
income of US$200 million in turbo-pumps exports from Impsa's
plant in Mendoza province, Argentina.

          Rodriguez Pena 2451
          Godoy Cruz, Mendoza Argentina
          Phone: 54 1 315 2400
          Fax: 54 1 315 2388
          Home Page:
          Roberto Arancibia
          Tel: +54-261 4131300
          Fax. +54-261 4131416 - 4131423

ISPAT INTERNATIONAL: Shows Positive Net For 2Q02 Results
Ispat International N.V., (NYSE: IST US; AEX: IST NA), reported
Thursday a net income of $11 million or 9 cents per share for the
second quarter of 2002 as compared to a net loss of $69 million
or 57 cents per share for the second quarter of 2001.

Consolidated sales(1) and EBITDA(2) for the second quarter were
$1.2 billion and $109 million, respectively, as compared to $1.1
billion and $15 million, respectively, for the second quarter of
2001. The second quarter 2002 earnings included an after-tax
extraordinary gain of $10 million from the repurchase of debt at
Ispat Inland, as well as a non-recurring tax expense of $13
million at Ispat Mexicana due to amendments in certain tax laws
in Mexico. The Company achieved an 11% increase in steel
shipments to 4.1 million tons, as compared to 3.7 million tons
shipped in the same period last year.

"Our second quarter results demonstrated a recovery for Ispat
International as the Company returned to profitability after six
quarters, and we expect to be profitable for the year," said
Lakshmi N. Mittal, Chairman and CEO.

During the quarter the Company reduced total debt by $25 million.
Capital expenditure for second quarter of 2002 totaled $18
million. At June 30, 2002 the Company's consolidated cash, cash
equivalents and short-term liquid investments totaled $88
million. The Company also has approximately $366 million
available to it under various undrawn lines of credit and bank
credit arrangements(3).

Ispat International N.V. is one of the world's largest and most
global steel producers, with major steelmaking operations in the
United States, Canada, Mexico, Trinidad, Germany and France. The
Company produces a broad range of flat and long products with
over 90% of shipments in North American Free Trade Agreement
(NAFTA) and European Union (EU) countries. Ispat International is
a member of The LNM Group.

To see financial statements:

CONTACT:  Ispat International N.V.
          Annanya Sarin, Head of Communications
          Tel: +44-20-7543-1162

          T.N. Ramaswamy, Director, Finance
          Tel: +44-20-7543-1174

          John McInerney, Investor Relations
          Tel: +1-212-419-4219

SAVIA: Reports Second Quarter of 2002 Results
Savia reported its second consecutive increase in consolidated
net income reaching US$15 million in the second quarter. This
represents an important recovery of US$151 million compared to
the same period last year. At the same time, Savia reported an
accumulated income of US$35 million for the first six months of
the year.

Savia reported an increase in its operating cash flow of US$65
million over the same period last year. At the close of the
second quarter of 2002 the company reported EBITDA of US$11

The fruit and vegetable seed distributor confirmed its successful
results in the second quarter. Following its strategy of recovery
and operational efficiency, the company has transformed itself
with improved income and competitive capacity allowing it to
strengthen its leadership position in the seed market.

Seminis' results improved for the sixth consecutive quarter.
Sales for the second quarter remained stable and the operating
margin reached 61% in relation to sales allowing the company to
report a gross income of US$65 million. The income from
operations for this period increased by US$56 million with
respect to the same period last year to produce an operating
income of US$10 million.

Seminis made a payment of US$20 million to its bankers during the
quarter, reducing the company's total debt in $20.8 million. The
company debt repayment program continues to strengthen its
financial structure and it has reduced its debt more than US$54
million during the last nine months.

Seminis has been included in the list of the Russell 3000 and
2000 Indices during the second quarter. These indices contain
those companies that have high market value and liquidity and are
used by analysts to monitor the country's economy. Inclusion in
the Russell Indices represents an important recognition of
Seminis' progress and improves its image with the investment


Monterrey, Mexico, July 25, 2002. Savia S.A. de C.V. (BMV:SAVIA)
(NYSE:VAI) announced Thursday is results for the second quarter
of 2002.

                          Business Indicators
                  Millions of Dollars as of June 2002

                Apr-Jun 2002 Apr-Jun 2001 Variation Variation %
                ------------ ------------ --------- -----------
Sales               1,630        1,820       (190)  (a)(10)%
Gross Profit          746          189        557       294%
Gross Profit           46%          10%         -          -
Operating Expenses    693          797        104        13%
Operating Income       52         (608)       660        n.a
Operating Cash Flow   105         (542)       647        n.a
Net Consolidated
Income               151       (1,359)     1,510        n.a
Net Majority Income   114       (1,064)     1,178        n.a

(a) Variation due to the sale of Interfruver de Mexico, a non-
strategic asset of the subsidiary Bionova.


Net Consolidated Sales

The net consolidated sales were US$164 million, a decrease of 10%
in comparison to the same period last year. The reduction
resulted principally from the impact of the sale of Interfruver
de Mexico, a non-strategic asset of Bionova. 47% of sales were in
dollars, 20% in Euros, 11% in Pesos and 22% in other currencies.

Consolidated Operating Income

Consolidated operating income was US$5 million during the
quarter, a recovery of US$66 million compared to the same period
in the previous year. This considerable increase was the result
of growth in the operating margin of US$56 million over the same
period last year, with the company reporting a gross income of
US$75 million, or 46% of sales, and a decrease in operating
expenses of 13%. The operating cash flow recovered by US$65
million and the company reported a positive cash flow of US$11
million during the quarter.

Net Consolidated Income

The consolidated net income was US$15 million, an important
recovery of US$151 million compared to the same period last year.
This achievement was the result of significant reductions in the
cost of sales and operating expenses. Financing charges were also
reduced due to important debt reductions at Savia and Seminis.
Net majority income at US$11 million was positive for the second
consecutive quarter recovering US$118 million over the same
period last year.



As a result of its optimization strategy, Seminis (Nasdaq:SMNS)
maintained its sales levels reaching US$107 million, a figure
very similar to that reported in the same period last year. The
operating margin showed improvement at US$65 million, or 61% of

At the same time, operating income (EBIT) recovered US$56
million, compared to the same period in 2001, with the company
reporting a profit of US$10 million. These results show the
positive effect of the initiatives that were implemented and that
continue to guide the profitability of the business.


The sales of Bionova (AMEX:BVA) were US$43 million in the second
quarter, a reduction of 30% compared to the same period last
year. This reduction was the result of the sale of Interfruver de
Mexico, a non-strategic asset of this subsidiary.

During the reported quarter the company also closed the
biotechnology operations of DNA Plant Technology, a subsidiary of


Net Consolidated Sales

The net consolidated sales were US$374 million, a decrease of 11%
in comparison to the same period last year. The reduction was due
principally to the sale of Interfruver de Mexico, a non-strategic
asset of the Bionova subsidiary. 48% of sales were denominated in
dollars, 22% in Euros, 8% in Mexican Pesos and the remaining 22%
in other currencies.

Consolidated Operating Income

As a result of an increase in the operating margin of 40% and a
reduction in operating expenses of 17%, the consolidated
operating income (EBIT) during the first half of 2002 was US$43
million, a recovery of US$79 million compared to the same period
last year. Similarly, the operating cash flow of US$54 million, a
recovery of US$77 million, is also an important increase with
respect to the same period last year.

Net Consolidated Income

In this period the net consolidated income was US$35 million, a
recovery of US$170 million compared to the same period in the
prior year. The net majority income, at US$21 million, recovered
US$144 million compared to the same period last year.



Total sales for Seminis (Nasdaq:SMNS) corresponded to the first
half of 2002 reaching US$261 million, a level very similar to
that achieved during the same period last year.

The operating margin was US$162 million representing 62% in
relation to sales. The operating expenses decreased by 7%
compared to the same period in 2001. As a result, the operating
income (EBIT) reached US$52 million.


The sales of Bionova (AMEX:BVA) were US$90 million, a reduction
of 30% with respect to the same period last year. This reduction
is the result of the sale of Interfruver de Mexico, a non-
strategic asset of this subsidiary. The operating income
recovered 38% in comparison to the same period last year.

Savia ( participates in industries that offer
high growth potential in Mexico and internationally. Among its
main subsidiaries are: Seminis, a global leader in the
development, production and commercialization of fruit and
vegetable seeds; Bionova, a company focused in plant science for
the development and improvement of fruit and vegetable seeds; and
Omega, a real estate development company.

Savia's financial statements are prepared in compliance with
generally accepted accounting principles in Mexico. For the
consolidation of domestic subsidiaries, Savia follows the
guidelines set forth in bulletin B-10 and for foreign companies
follows the guidelines set forth in bulletin B-15. Seminis and
Bionova report following the generally accepted accounting
principles of Mexico. These results are adjusted to reflect the
above-mentioned guidelines. In addition, Seminis reports its
fiscal year the first quarter of October through the last of
September. Savia reports its fiscal year on a calendar basis,
including in its consolidated results the operations of Seminis
according to calendar year.

To see Savia's financial statements:

         Investor Relations:
         Francisco Garza
         Tel: 5281-81735500
         Fax: 5281-81735508


BLADEX: Steep Share Price Plunge Goes Unexplained
Banco Latinoamericano de Exportaciones SA's (BLADEX) share price
suddenly plunged Thursday, to the surprise of the bank's
officials, who admit they are not aware of any news that could
have triggered the event, Dow Jones reports.

There's no news," said William Galvin, a U.S. spokesman for
Bladex, a multinational bank.

The Panama-based bank's American Depositary Receipts on the New
York Stock Exchange plunged 31% to US$3.80 Thursday. Volume
totaled 159,800 shares, roughly three times its 10-day average.

The bank's ADRs fell 7% on Monday, 16% on Tuesday and 11% on
Wednesday. They ended Thursday down 52% since last Friday's

Bladex's credit ratings had been affected by its exposure in
Argentina. The bank has exposure amounting to US$1 billion,
representing 1.7 times of its equity of US$600 million. So far,
the bank has allocated US$255 million in general loan loss
reserves, which are expected to increase, and could be used to
offset losses from the Argentine portfolio.

The bank is a premier source of trade financing in Latin America.

CONTACT:  BLADEX (Head Office)
          Calle 50 y Aquilino de la Guardia,
          Panama City, Panama
          Carlos Yap, VP, Finance & Performance Management
          Tel. No. (507) 210-858

T R I N I D A D   &   T O B A G O

BWIA: Expects To Lose Up To $8.4M for 1H02
Trinidad national airline BWIA, still feeling the aftershock of
the September 11 attack, expects losses of US$8.4 million for the
first six months of 2002 after posting an after-tax loss of
US$66.5 million for year ended December 31, 2001.

According to Caribbean AirNews, the airline's management admitted
it is still challenged to slash cost and generate revenues for
the rest of the year.

Considering the losses and the decreased number of passengers
traveling, the airline has decided to postpone taking a second A-
340 Airbus aircraft this year, says Corporate Communications
director Clint Williams.

Williams also admitted that the management couldn't base the
airlines outlook on its past performance. The airline had three
quarters of profitability before the terrorist attack,
registering an after tax profit of US$7.1 million.

He did not make a comment on how the airline jobs would be
affected, but admitted the management still needs to look over
the matter.  Presently, the airline is also being plagued by
strikes such as pilots "calling in sick."  These employees are
negotiating an average minimum salary of up to US$77,500 a year.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           Home Page:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


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 Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed to
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