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

           Monday, August 19, 2002, Vol. 3, Issue 163

                           Headlines


A R G E N T I N A

BANCO MEDEFIN: Top Banking Executives Mired In Suit
CLAXSON INTERACTIVE: Extends Imagen Satelital Exchange Offer
CLAXSON INTERACTIVE: Reports 2Q02 Financial Results
LIBERTY MEDIA: Supplements Official Numbers, 2002 Guidance
SCOTIABANK QUILMES: To Be Split Between Two Small Banks
SCOTIABANK QUILMES: Moves To Stem Increasing Losses


B E R M U D A


TYCO: Internal Probe Results Expected September 15
TYCO INTERNATIONAL: Ex-VP Goes To Court Over Severance Dispute


B R A Z I L

ENRON: Settles Merger-Related Litigation With Dynegy
NET SERVICOS: Debt Costs Hamper 2Q02 Financial Results
SPLICE DO BRASIL: Investors Try To Block Unit's Bond Purchase
VARIG: Loses CEO Amid Financial Difficulty


C H I L E

EDELNOR: Company is Confident as GTA Guarantee Approaches
MADECO: Debt Restructuring Tricky at Best


M E X I C O

CINTRA: Delaying Airlines' Sale Once Again
GRUPO BITAL: CNBV Shuns Rumors of Imminent Intervention
GRUPO MEXICO: ASARCO Responds To Justice Department Action
TV AZTECA: Moody's Upgrades; Joins MSCI(R) Standard Index


T R I N I D A D   &   T O B A G O

BWIA: Unions Seek Government Intervention; Request Audit
BWIA: CEO Speaks Out to Calm Employees' Fears


     - - - - - - - - - -


=================
A R G E N T I N A
=================

BANCO MEDEFIN: Top Banking Executives Mired In Suit
---------------------------------------------------
Federal Judge Sergio Torres ordered a freeze on ARS1 million
($279,000) worth of personal assets of Aldo Pignanelli,
Argentina's Central Bank President, for his alleged involvement
in a fraud relating to the closure of a bank in 1998. Court
documents revealed that Former Central Bank President Pedro Pou
was also named as defendant in the suit.

According to the documents, Banco Medefin closed after receiving
US$58 million of discount loans from the central bank that were
never repaid. At that time, Pignanelli was a central bank board
member and Pou was president.

Thirty other individuals were also named in the suit. However,
some unidentified central bank officials denied the allegations
saying those were baseless. They highlighted the need for legal
immunity for bank officials as the country prepares to shut down
banks after defaulting on debt and devaluing the currency.


CLAXSON INTERACTIVE: Extends Imagen Satelital Exchange Offer
---------------------------------------------------------------
Claxson Interactive Group Inc. (Nasdaq: XSON) -- "Claxson" --
announced an extension of its pending exchange offer and consent
solicitation (the "Exchange Offer") for all U.S.$80 million
outstanding principal amount of the 11% Senior Notes due 2005
(144A Global CUSIP No.44545HHA0 and Reg S Global ISIN No.
USP52800AA04) (the "Old Notes") of its subsidiary, Imagen
Satelital S.A. ("Imagen").

The expiration date for the Exchange Offer has been extended to
5:00 p.m. New York City time on August 28, 2002, from 5:00 p.m.,
New York City time, on August 14, 2002, unless further extended.
As of 5:00 p.m. August 14, 2002, Claxson had received tenders
from holders of approximately U.S.$8.1 million principal amount
of the outstanding Old Notes.

Claxson continues to solicit proxies from holders of the Old
Notes to vote in favor of the proposed amendments to the Old Note
indenture. As a result, Claxson has extended the consent payment
expiration date to 5:00 p.m. New York City time on August 28,
2002, unless further extended. Holders who have already tendered
or who tender their Old Notes on or prior to 5 p.m. August 28,
2002, and do not withdraw their tender, will be entitled to
receive the consent payment.

Claxson is currently in active discussions with the holders of
Old Notes who have not yet tendered with the goal of obtaining
full participation. The Exchange Offer continues to be
conditioned upon the receipt of tenders of at least 95% of the
outstanding principal amount of the Old Notes as well as the
approval by the Argentine Comision de Valores of the public
offering of the new notes in Argentina and other customary
conditions.

Except for the extension of the expiration date and consent
payment expiration date, all other terms and provisions of the
Exchange Offer remain the same.

Informational documents relating to the Exchange Offer will only
be distributed to eligible investors who complete and return an
Eligibility Letter that has already been sent to investors. If
you would like to receive this Eligibility Letter, please contact
Tom Long at D.F. King & Co., the Information Agent for the
Exchange Offer, at (212) 493-6920, or Eduardo Rodriguez Sapey at
Banco Rio de la Plata, the Argentina Trustee and Rep. Exchange
Agent, at 011-5411-4341 1013 in Buenos Aires, Argentina.

The new notes will not be registered under the U.S. Securities
Act of 1933, as amended, and will only be offered in the United
States to qualified institutional buyers and accredited investors
in private transactions and to persons outside the United States
in off-shore transactions. The new notes will be listed on the
Buenos Aires Stock Exchange.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the New Notes in any state of the United States in which such
offer, solicitation or sale would be unlawful.

Claxson (Nasdaq: XSON) is a multimedia company providing branded
entertainment content targeted to Spanish and Portuguese speakers
around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through its assets in pay television, broadcast television, radio
and the Internet. Claxson was formed in a merger transaction,
which combined El Sitio, Inc. and other media assets contributed
by funds affiliated with Hicks, Muse, Tate & Furst Inc. and
members of the Cisneros Group of Companies. Headquartered in
Buenos Aires, Argentina, and Miami Beach, Florida, Claxson has a
presence in all key Ibero-American countries, including without
limitation, Argentina, Mexico, Chile, Brazil, Spain, Portugal and
the United States.

CONTACT:  Press: Alfredo Richard, SVP, Communications
          Tel.: +1-305-894-3588

          Investors: Ezequiel Paz, AVP, Corporate Finance
          Tel.: +1-305-894-3574


CLAXSON INTERACTIVE: Reports 2Q02 Financial Results
---------------------------------------------------
Claxson Interactive Group, Inc. (Nasdaq: XSON) ; ("Claxson" or
the "Company"), on Thursday announced financial results for the
three- and six-month periods ended June 30, 2002.

Financial Results

Operating loss for the three-month period ended June 30, 2002 was
$0.5 million, representing a 62% decrease from operating loss of
$1.3 million for the three month period ended June 30, 2001.
Operating loss for the six-month period ended June 30, 2002 was
$2.5 million compared to an operating loss of $1.8 million for
the six-month period ended June 30, 2001.

Total net revenues for the second quarter of 2002 totaled $18.5
million, a 30% decrease from net revenues of $26.3 million for
the second quarter of 2001. Total net revenues for the six months
ended June 30, 2002 totaled $38.6 million compared to net
revenues of $52.7 million for the six months ended June 30, 2001.
Net revenues earned in Argentina for the three months ended June
30, 2002 were 21% of total net revenues compared to 44% for the
same period in 2001. For the six months ended June 30, 2002,
total net revenues in Argentina were 23% of total net revenues
compared to 45% for the same period in 2001.

Claxson's results were severely affected by the economic crisis
in Argentina and in particular by the massive devaluation of the
Argentine currency. During the second quarter of 2002, the
average exchange rate devalued 69% as compared to the same period
in 2001. For the six-month period ended June 30, 2002, the
average devaluation in Argentina was 62%.

"We are pleased to report that we have been able to reduce our
operational losses quarter to quarter and compared to the same
quarter of last year," said Roberto Vivo, Chairman and CEO of
Claxson. "In spite of the negative economic situation in the
market, we have been able to mitigate the adverse impact on our
earnings before depreciation, amortization and merger expenses by
rationalizing our operation and maintaining a lean operation
throughout the entire company."

Subscriber-based fees for the three-month period ended June 30,
2002 totaled $8.7 million, which comprised approximately 47% of
total net revenues and represented a 45% decrease from
subscriber-based fees of $15.9 million for the second quarter of
2001. The decrease is primarily attributed to the impact of the
devaluation of the Argentine currency of $6.8 million.
Subscriber-based fees for the six months ended June 30, 2002
totaled $18.4 million compared to subscriber-based fees of $31.0
million for the six months ended June 30, 2001.

Advertising revenues for the three-month period ended June 30,
2002 were $6.8 million, which comprised approximately 37% of
Claxson's total net revenues and represented a 19% decrease from
advertising revenues of $8.4 million for the second quarter of
2001. This decrease in advertising revenues in the second quarter
of 2002 was due primarily to a decrease in pay television
advertising of $1.3 million as a result of the economic crisis in
Argentina. Advertising revenues for the six months ended June 30,
2002 totaled $14.1 million compared to advertising revenues of
$17.6 million for the six months ended June 30, 2001.

Other revenues for the three-month period ended June 30, 2002
were $3.1 million, which represented a 55% increase compared to
other revenues of $2.0 for the second quarter of 2001. This
increase was primarily due to increased revenues from the
operations of The Kitchen, Inc., Claxson's Miami-based broadcast
and dubbing facility. Other revenues for the six months ended
June 30, 2002 totaled $6.1 million compared to other revenues of
$4.1 million for the six months ended June 30, 2001.

Operating expenses for the three months ended June 30, 2002 were
$19.0 million, representing a decrease of 31% from operating
expenses of $27.6 million for the second quarter of 2001, due
primarily to the rationalization of programming and marketing
expenditures to the new revenue levels, management's continued
efforts to rationalize the operations, the effect of the
Argentine devaluation on the expenses of our Argentine-based
subsidiaries and the ceasing of the amortization on goodwill in
accordance with the Statements of Financial Accounting Standard
No. 142 . Operating expenses for the six months ended June 30,
2002 totaled $41.2 million compared to operating expenses of
$54.5 million for the six months ended June 30, 2001.

Net loss for the three months ended June 30, 2002 was $26.7
million ($1.43 per common share), which includes $19.9 million in
foreign exchange losses primarily due to certain U.S. dollar
denominated debt held by Claxson's Argentine subsidiary. Net loss
for the three months ended June 30, 2001 was $5.8 million.

For the six-month period ended June 30, 2002 net loss was $156.9
million, which includes a $74.8 million non-cash impairment
charge related to the adoption of Statements of Financial
Accounting Standard No. 142, Goodwill and Other Intangible
Assets, and $66.7 million in foreign exchange losses.
Amortization expense for the three months, and six months ended
June 30, 2001 was $2.5 million, and $4.9 million, respectively.

As of June 30, 2002, Claxson had a balance of cash and cash
equivalents of $16.1 million and $105.5 million in debt.

Independent Auditors "Going Concern"

The independent auditors report with respect to Claxson's
financial statements included in Claxson's Form 20-F filed with
the Securities and Exchange Commission included a "going concern"
explanatory paragraph, indicating that its potential inability to
meet its obligations as they become due, raises substantial doubt
as to Claxson's ability to continue as a going concern. In an
effort to improve its financial position, Claxson is taking
certain steps, including the restructuring of its subsidiaries'
debt and renegotiation of applicable covenants. Its failure or
inability to successfully carry out these plans could ultimately
have a material adverse effect on its financial position and its
ability to meet its obligations when due.

Update on Debt Renegotiation

On April 30, 2002, Imagen Satelital S.A., an Argentina-based
Claxson subsidiary, announced that it would not make an interest
payment of US $4.4 million on its 11% Senior Notes due 2005. On
June 27, 2002, Claxson announced that it had commenced an
exchange offer and consent solicitation for all US$80 million
outstanding principal amount of these notes. Further, on August
1, 2002 Claxson announced the extension of the pending exchange
offer and consent solicitation. The expiration date for the
exchange offer was extended from July 31, 2002, to August 14,
2002.. Simultaneously with this release, the Company has
announced the further extension of the offer until August 28,
2002.

Claxson is currently not in compliance with the coverage ratios
required under its Chilean syndicated credit facility, primarily
as a result of the 17% decrease in the value of the Chilean Peso
against the U.S. Dollar in 2001. Failure to comply with the
financial covenants set forth in the Chilean syndicated credit
facility could result in the acceleration of all amounts due and
payable thereunder. Claxson has been actively negotiating with
the lenders to amend the credit facility to modify this financial
covenant in order to bring it into compliance. Until negotiations
are final, this debt will be classified as short term in the
balance sheet.

Playboy TV International

PTVI and its affiliates incurred net losses of $3.2 million and
$5.6 million for the three and six-month periods ended June 30,
2002. Unless PTVI's financial obligations can be restructured,
PTVI will remain primarily dependent on capital contributions
from Claxson to fund shortfalls. The report of PTVI's independent
auditors with respect to its financial statements for the years
ended December 31, 2001 and 2000 include a "going concern"
explanatory paragraph, indicating that PTVI's reliance on capital
contributions from its partners to meet its obligations as they
become due, raises substantial doubt as to its ability to
continue as a going concern.

Since January 2002, Claxson has been negotiating a possible
restructuring of the PTVI joint venture to adjust the fixed cost
structure and obligations to Playboy Enterprises, Inc due to
PTVI's lower than anticipated revenues. Negotiations are in
progress, however, no assurances can be made that Claxson will be
successful in restructuring the PTVI joint venture. If Claxson
does not reach a successful agreement with Playboy Enterprises,
Inc., Claxson could be required to fund the additional $21.4
million of capital contributions required pursuant to the
operating agreement. If Claxson is not able to fund the
additional capital contributions, Playboy Enterprises, Inc. or
PTVI may seek, among other things, the dilution of Claxson's
membership interest.

Other matters

In line with Claxson's goal of reducing operating losses and due
to the weakness in the advertising sales market for print media
in Chile, on June 12, 2002 Claxson decided to terminate the
newspaper El Metropolitano operation. Net losses recorded by the
El Metropolitano operation for the three and six months ended
June 30, 2002 were $0.7 million, and $1.9 million, respectively.

On July 24, 2002, Ibero American Media Holdings Chile, Claxson's
Chilean subsidiary, announced that, as of August 30, 2002, Jaime
Vega would step down as Chief Operating Officer of Claxson's
Broadcasting Division and President of the Company's operations
in that market. Mr. Vega will remain as a consultant to Mr. Vivo,
who will personally oversee the Chilean operation together with
the current management.

About Claxson

Claxson (Nasdaq-SCM: XSON) is a multimedia company providing
branded entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through its assets in pay television, broadcast television, radio
and the Internet. Claxson was formed on September 21, 2001 in a
merger transaction, which combined El Sitio, Inc. and other media
assets contributed by funds affiliated with Hicks, Muse, Tate &
Furst Inc. and members of the Cisneros Group of Companies.
Headquartered in Buenos Aires, Argentina, and Miami Beach,
Florida, Claxson has a presence in all key Ibero-American
countries, including without limitation, Argentina, Mexico,
Chile, Brazil, Spain, Portugal and the United States.

Notes to Financial Schedules:

(1) Claxson was formed on September 21, 2001 in a merger
transaction which combined El Sitio, Inc., media assets
contributed by Ibero-American Media Partners II, Ltd. (IAMP), and
other media assets contributed by members of the Cisneros Group
of Companies. Consolidated financial results for the period until
the combination transaction represent the financial results of
IAMP. Pro forma combined financial results for the three and six
months ended June 30, 2001 are presented as if the merger
transaction had been effected on January 1, 2001.

(2) Claxson's results reflect the aggregate performance of its
business lines: pay television; broadcast radio and television;
and Internet and broadband.

(3) Claxson holds an 80.1% equity interest in Playboy TV
International (PTVI), a joint venture with Playboy Enterprises,
Inc. (NYSE: PLA). Claxson does not control PTVI and therefore its
interest in PTVI is not consolidated for reporting purposes.

(4) Historical information for IAMP, El Sitio and the other
assets comprising Claxson is provided in Claxson's registration
statement on Form F-4 as filed with the U.S. Securities and
Exchange Commission, which became effective on August 15, 2001
and on Claxson's annual report of Form 20-F filed with the U.S.
Securities and Exchange Commission on June 27, 2002.

(5) The pro forma combined financial data are provided for
illustrative purposes only and do not purport to represent what
Claxson's actual results of operations or financial condition
would have been had the transaction occurred on those dates. The
pro forma combined financial data is not necessarily indicative
of the results of operations and financial condition of Claxson
for future periods or dates.

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

CONTACT:  CLAXSON
          Alfredo Richard, SVP, Communications
          Phone: (305) 894-3588

          Jose Antonio Ituarte, Chief Financial Officer
          Phone: 011-5411-4339-3700


LIBERTY MEDIA: Supplements Official Numbers, 2002 Guidance
---------------------------------------------------------
On August 14, 2002, Liberty (NYSE: L, LMC.B) filed its Form 10-Q
with the Securities and Exchange Commission for the quarter ended
June 30, 2002. The following release is being provided to
supplement the information provided to investors in Liberty's
Form 10-Q as filed with the SEC. This information is not meant to
serve as a release of financial results for Liberty. For
information regarding Liberty's financial results, investors
should refer to Liberty's financial statements included in its
Form 10-Q.

Liberty owns interests in a broad range of video programming,
broadband distribution, interactive technology services and
communications businesses. Liberty and its affiliated companies
operate in the United States, Europe, South America and Asia with
some of the world's most recognized and respected brands.

As a supplement to Liberty's consolidated statements of
operations, the following is a presentation of financial
information for Liberty's privately held assets including:

--  Starz Encore Group LLC, a consolidated, non-publicly traded
subsidiary of Liberty;

--  Discovery Communications, Inc. ("DCI" or "Discovery") and
QVC, Inc., the largest of Liberty's affiliated companies that are
not publicly traded; and

--  Liberty Media International, Inc. ("LMI"), a consolidated
subsidiary of Liberty.  Attributed pro forma operating results of
LMI's non-public assets are presented as though LMI's percentage
ownership in each of those assets was held constant for all of
the periods presented at the ownership level in effect as of June
30, 2002.

NOTE: The following selected unaudited financial information was
not prepared in accordance with generally accepted accounting
principles ("GAAP") and is intended solely to provide additional
information to investors. This information should be reviewed in
conjunction with Liberty's consolidated financial statements
included in Liberty's Form 10-Q for the quarter ended June 30,
2002. Liberty's economic interest in its equity affiliates does
not necessarily represent control of such entities. Accordingly,
Liberty could not, among other things, cause any non-controlled
affiliate to distribute to Liberty its attributed share of the
revenue or earnings of such affiliate. Liberty utilizes revenue
and operating cash flow, as defined by Liberty, for purposes of
making decisions about allocating resources to its affiliates and
assessing their performance. Operating cash flow should not be
considered a replacement for net income, cash flows or any other
measure of performance or liquidity under GAAP or as an indicator
of a company's operating performance.

The following tables and comments compare financial information
for the three months ended June 30, 2002 to the same period for
2001. Operating expense, as used in the following tables,
includes operating, selling, general and administrative expenses
and excludes stock compensation. Operating cash flow, as defined
by Liberty, represents revenue less operating expense.

STARZ ENCORE GROUP LLC

Liberty owned 100% of Starz Encore at June 30, 2002. The
principal services of Starz Encore are the STARZ!, Encore and
Thematic Multiplex premium movie services.

                                            Starz Encore
                                      Summary Operating Results

                                        Q2 02          Q2 01
                                        amounts in millions

Revenue                                  $237            213
Operating Expense                         162            144
Operating Cash Flow                       $75             69
Outstanding Debt                         $420            480
Total Subscription Units                  125.6          101.6

--  Starz Encore revenue and operating cash flow increased by 11%
and 9%, respectively.  Operating expense increased by 13%.  Total
subscription units increased by 24% due to a 7% increase in
STARZ! units, a 13% increase in Encore units and a 36% increase
in Thematic Multiplex units.

--  The increase in revenue was due to increases in subscription
units from all forms of distribution, specifically cable units
grew by 34% and DBS units grew by 11%.  Subscription units grew
at a faster rate than revenue primarily due to a disproportionate
increase in units of Thematic Multiplex channels, which have
lower subscription fee rates than other Starz Encore channels.

--  The increase in operating expense was primarily due to an
increase in program license fees related to improved performance
at the box office of the movies shown and an increase in bad debt
expense related to the bankruptcy of Adelphia Communications.
These movies include The Grinch, Mummy Returns and Jurassic Park
III.  During the quarter ended June 30, 2002, Starz Encore
expensed $10 million related to its Adelphia pre-bankruptcy
receivable.

--  Starz Encore reduced its outstanding bank debt by $60 million
compared to June 30, 2001.

DISH Network Offers New DISH Pak Featuring STARZ! Super Pak
Starz Encore Group LLC recently was selected by EchoStar
Communications Corp to participate in DISH Network's new low-
priced programming package, "DISH Pak." DISH Pak offers 60
channels of basic programming, local networks (where available)
and 8 channels of STARZ! Super Pak for only $39.99 per month.
STARZ! Super Pak includes STARZ! (East/West), Encore, STARZ
Theater, BLACK STARZ!, STARZ! Family and STARZ! Cinema
(East/West).

DISH Pak is a unique consumer offer that for the first time
includes premium movie channels in an entry-level package. This
package gives consumers hundreds of hit movies each month at an
affordable price. In addition, including a premium movie service
with a core group of basic channels provides DBS and cable
operators a valuable package to drive digital growth.

Starz Encore - FY '02 Guidance Remains Unchanged

The following estimates assume primarily, among other factors,
continued growth in total subscription units for the remainder of
2002 with a product mix consistent with that experienced in the
first half of 2002.

Starz Encore's revenue and operating cash flow are expected to
increase approximately as follows:

--  FY '02 vs. '01:  revenue by approximately 10% and operating
cash flow by mid teens %

DISCOVERY COMMUNICATIONS, INC.

Liberty owned approximately 50% of DCI as of June 30, 2002. The
results below for the second quarter of 2001 have been adjusted
for comparative purposes only to conform with the 2002
presentation methodology per EITF 01-9. EITF 01-9 requires
certain re-classification for expenses as offsets to revenue
beginning January 1, 2002.

During the second quarter of 2002, DCI continued its strong
execution in a challenging global environment. Total operating
cash flow increased by 38%, driven by a gross affiliate revenue
increase of 10%, a gross advertising revenue increase of 4% and a
reduction in operating expenses of 3%. DCI's affiliated networks
reach more than 750 million cumulative subscribers.

                                  Discovery Communications, Inc.
                                 Pro Forma Summary Financial Info
                                      Q2 02               Q2 01
                                         amount in millions
     Revenue:
       Domestic Networks                  $281                273
       International Networks               96                 86
       International Ventures               27                 24
       Consumer Products & Other*           22                 28
         Total Revenue                     426                411

     Operating Expense:
       Domestic Networks                   173                185
       International Networks               82                 79
       International Ventures               39                 35
       Consumer Products & Other*           44                 48
         Total Operating Expense           338                347

     Operating Cash Flow (Deficit):
       Domestic Networks                   108                 88
       International Networks               14                  7
       International Ventures              (12)
(11)
       Consumer Products & Other*          (22)
(20)
         Total Operating Cash Flow         $88                 64

     Outstanding Debt                   $2,241              2,403
     * Includes all Intercompany Eliminations.



Advertising Outlook:
-- The upfront marketplace in 2002 was active and positive for
DCI.  Total dollar volume was up 35% year over year with positive
CPM increases of single digits on average combined with increases
in the amount of inventory sold.  DCI had growth in many product
categories including financial services, automotive, computers
and home products and closed major deals with a diverse client
base including Sears, Mutual of Omaha, Revlon and Proctor &
Gamble.  DCI also had a highly successful kids upfront.  The
combination of the Discovery Kids-NBC block and the Discovery
Kids digital channel has allowed Discovery to become a
significant participant in the kids upfront.

DCI - Discovery Networks U.S.: Discovery Channel, TLC, Animal
Planet, Travel Channel, Discovery Health Channel, Discovery Kids
Channel, BBC-America Representation, The Science Channel,
Discovery Civilization Channel, Discovery Home & Leisure Channel,
Discovery Wings Channel, Discovery en Espanol and online
initiatives.

--  Discovery Networks U.S. experienced a 23% increase in
operating cash flow to $108 million due to an increase in
affiliate revenue and aggressive cost containment.  Expenses
decreased by $12 million or 6% primarily due to a decrease in
S,G&A of 6% and a decrease in programming costs of 7%.

--  Net affiliate revenues increased 11% as aggregate subscribers
increased by 22%.  These revenues are net of the EITF 01-09
reclassification, representing mostly launch amortization, of
$35 million for the quarter ended June 30, 2002 and $27 million
for the quarter ended June 30, 2001.  Excluding these
reclassifications, gross affiliate revenues increased by 15%.

--  Net advertising revenues were up 1% for the quarter primarily
due to increases in sellout and audience delivery.  There was no
difference
between net and gross advertising revenue growth rates due to the
EITF reclassification.

DCI - Discovery Networks International: Discovery Channel Europe,
Discovery Channel Latin America, Discovery Channels in Asia,
India, Germany, Italy/Africa, Canada, Japan and Kids-Latin
America, Travel & Adventure-Latin America, Health-Latin America,
Showcase Latin America, Discovery Home & Leisure Europe, Travel &
Adventure Asia, Animal Planet-United Kingdom and Health Channel-
United Kingdom.

--  Operating cash flow for Discovery Networks International
doubled from $7 million to $14 million due to increases in
affiliate and advertising revenue.

--  Overall revenue increased by 12%, with an increase in net
advertising revenue of 33% driven by ratings growth in Europe,
where audience delivery increased by 34%.  Excluding EITF 01-09
reclassifications, gross advertising revenues increased by 45%.
Affiliate revenues increased by 8% driven by subscriber growth of
16%.  Discovery Networks International now reach over 225 million
cumulative subscribers, a 16% increase compared to last year.
Operating expenses increased by 4% due to continued investment in
new and recently launched networks.

DCI - International Ventures: BBC/DCI Joint Venture Networks
(including Animal Planet Europe, Animal Planet Asia, Animal
Planet Latin America, People + Arts Latin America, Animal Planet
Japan and Animal Planet Germany), Animal Planet Canada, Discovery
Germany and Discovery Japan.

--  Revenue increased by 13%, and the operating cash flow deficit
increased by $1 million or 9% from $11 million to $12 million.
The revenue increase was due to a 17% increase in affiliate
revenue.  The increase in the operating cash flow deficit was due
to funding requirements for developing networks and the launch of
one new network, Animal Planet Canada.

DCI - Consumer Products: The principal components of Discovery
Consumer Products include a proprietary retail business comprised
of a nationwide chain of 165 Discovery Channel stores, mail-order
catalogs, an on-line shopping site, a global licensing and
strategic partnerships business, and a supplementary education
business reaching over 35 million students and 80,000 classrooms
around the country.

--  DCI continues to implement an integrated retail strategy that
presents a more direct connection to Discovery's networks and a
more tightly developed merchandise mix.  The process of
implementing this new strategy requires the discontinuation of
certain low margin inventory and the introduction of higher
margin, more targeted inventory.  The increase in the operating
cash flow deficit of $2 million was primarily due to the decrease
in revenue during the transition phase.

DCI - Outstanding Debt: DCI's outstanding debt (including capital
leases, letters of credit, and other notes payable) decreased by
$162 million compared to June 30, 2001. The decrease was due to
debt repayments offset by additional borrowings for the funding
of start-up businesses including, Discovery Health, debt service
costs and payments made in support of the launch of Animal
Planet, Travel Channel and Digital Networks. During the second
quarter Discovery received $100 million from the New York Times
Company as part of the joint venture to co-own Discovery
Civilization Channel.

DCI - FY '02 Guidance

The following estimates assume primarily, among other factors,
continued improvement in the domestic advertising sales market,
continued deterioration of certain Latin American economies
(specifically Argentina), growth in international distribution,
and ongoing cost control measures.

On a pro forma basis for full year 2002 versus 2001, DCI
aggregate attributed revenue is expected to increase by high
single digits and aggregate attributed operating cash flow is
expected to increase by approximately 40%.

Discovery's Domestic Networks' revenue and operating cash flow
are expected to increase approximately as follows:

--  FY '02 vs. '01:  revenue by low-mid single digits and
operating cash flow by mid-high single digits % Discovery's
International Networks' revenue and operating cash flow are
expected to increase approximately as follows:

--  FY '02 vs. '01:  revenue by low-mid teens % and operating
cash flow by 125 - 150%

Notes:

BBC/DCI Joint Venture

The equity in the assets of the British Broadcasting
Corporation/DCI joint venture is predominantly held 50/50 by DCI
and BBC. Exceptions involve participants related to the local
market in which a specific network operates. DCI accounts for its
interest in the BBC/DCI joint venture as an equity method
investment, recording results into International Ventures. Until
such assets reach breakeven (including the recoupment of prior
losses) 100% of the economic interest will be attributed to DCI.
After breakeven, the economic interests will match the equity
interests. The information presented above reflects DCI's
attributed economic interest in its assets.

Other Joint Ventures: Discovery Civilization, Discovery Health
Channel, Animal Planet (US)

The equity in the assets of the NY Times Company/DCI joint
venture Discovery Civilization Channel is held 50/50. The equity
in the assets of the DCI/Comcast Corporation/Fox Entertainment
Group joint venture Discovery Health Channel is held 72/20/8,
respectively. The equity in the assets of the
BBC/DCI/Liberty/Others joint venture Animal Planet (US) is held
60/20/10/10, respectively. These ventures are controlled by DCI
and therefore DCI records 100% of the revenues and operating cash
flows (deficits) of the ventures into Domestic Networks. Due to
certain contractual redemption rights of the outside partners in
the ventures, no losses of these ventures are allocated to the
outside partners. While such redemption rights are outstanding,
the Company will adjust the outside partners' interests to
reflect the redemption provisions. Upon expiration of these
rights, the economic interests will approximate the equity
interests.

QVC, INC.

Liberty owned approximately 42% of QVC as of June 30, 2002. The
following table includes financial information for QVC as
reported in Comcast Corporation's August 1, 2002 press release.
Please see such press release for additional information.

                                                 QVC
                                      Summary Financial Info

                                        Q2 02          Q2 01
                                        amounts in millions
Revenue:
Domestic & iQVC                          $837            757
United Kingdom                             66             64
Germany & Other                            92             55
  Total Revenue                           995            876
Operating Expense:
Domestic & iQVC                           644            590
United Kingdom                             62             61
Germany & Other                            94             65
  Total Operating Expense                 800            716
Operating Cash Flow (Deficit):
Domestic & iQVC                           193            167
United Kingdom                              4              3
Germany & Other                            (2)           (10)
  Total Operating Cash Flow              $195            160
Outstanding Debt                         $185            414

--  QVC's revenue and operating cash flow increased by 14% and
22%, respectively.  QVC's domestic TV and Internet retailing
businesses reported revenue growth of 11% and operating cash flow
growth of 16% and higher operating cash flow margins.  Operating
margins increased from 22.0% to 23.1% as the company realized
operating efficiencies including improvements in QVC's customer
service platform.

--  QVC continues to build its position as a leading global
electronic retailer.  The domestic business reported another
strong quarter, highlighting their consistent focus on improving
the customer's experience while driving operating efficiencies.
At the same time, QVC operations in the UK, Germany and Japan
each generated double-digit operating cash flow growth.

--  QVC's outstanding debt decreased by $229 million as a result
of repayments out of cash flow.

LIBERTY MEDIA INTERNATIONAL, INC. (non-public assets only)

Liberty owns 100% of LMI, which owns and operates programming
services and communications networks outside the continental
United States. Its primary operations are conducted through
equity affiliates located in Japan, Latin America and Continental
Europe. The table below reflects LMI's attributed pro forma
operating results of its non-public assets, presented as though
LMI's percentage ownership in each of its underlying assets was
held constant for all of the periods presented at the ownership
level in effect as of June 30, 2002. The table also reflects the
affiliate's results using the historical average foreign currency
exchange rate in effect for each quarter. As a result, the
affiliates' U.S. Dollar results reported below vary due to
exchange rate fluctuations as well as underlying operational
changes. These results do not reflect pending transactions or
transactions consummated after June 30, 2002.

                                        Liberty Media Int'l
                                         Non-Public Assets
                     Pro Forma Summary Attributed Financial Info
                                   Q2 02                   Q2 01
                                      amounts in millions
     Revenue:
       Japan                        $108                     83
       Latin America                  54                    138
       Europe and Other               11                      9
         Total Revenue               173                    230
     Operating Expense:
       Japan                          89                     77
       Latin America                  46                    110
       Europe and Other                8                      7
         Total Operating Expense     143                    194
     Operating Cash Flow:
       Japan                          19                      6
       Latin America                   8                     28
       Europe and Other                3                      2
         Total Operating Cash Flow   $30                     36

     Outstanding Attributed Debt:
       Japan (1)                    $856                    622
       Latin America (2)             428                    424
       Europe and Other              109                    110
         Total Outstanding
          Attributed Debt          $1,393                  1,156
     (1) Includes capital leases
     (2)Includes effect of Argentine Peso devaluation

Japan: 36% of Jupiter Telecommunications Co. Ltd. ("J-COM"); and
50% of Jupiter Programming Co. Ltd. ("JPC")

--  Revenue for the Japanese operations increased 30% due to a
35% increase in J-COM's attributed revenue combined with a
21% increase in JPC's attributed revenue.

--  The improvement in J-COM's revenue was due to increased cable
distribution and substantial growth in telephony and Internet
revenue.

--  At June 30, 2002, total gross cable subscribers were
1,530,000 (including non-managed systems), an increase of 33%
over the prior year; total telephony subscribers were 250,000, an
increase of over 127%; and Internet services subscribers were
499,000, an increase of 82%.

--  Average revenue per subscriber ("ARPU") was over $47 which,
excluding the effect of exchange rates is an increase of 7%.

--  J-COM continues to grow its customer base as household
penetration increased 2.4% YTD to 25.4%, cable penetration
increased 1.8% YTD to 23.1%, Internet penetration increased 1.5%
YTD to 7.5%, and telephone penetration is now at 9.5%.

--  The revenue increase at JPC was primarily due to 29% growth
in JPC's shopping channel revenue combined with moderate revenue
gains at the other channels due to subscriber growth.

Subscribers grew by 31% at JPC's movie channel, 43% at JPC's
shopping channel, 27% at Golf Network, 49% at Discovery Japan,
61% at JPC's sports venture and 93% at Animal Planet.

--  Attributed operating cash flow for Japan increased by $13
million, or 217%, due to a 200% increase in J-COM's attributed
cash flow combined with a 300% increase in JPC's attributed cash
flow.  The increases in attributed cash flow were due to the
revenue increases combined with margin improvements associated
with increased scale.

--  Excluding the effect of exchange rates, the increases in
attributed revenue and cash flow were 35% and 252%, respectively.

Latin America: 39% of Cablevision S.A.; 100% of Pramer S.C.A.;
100% of Liberty Cablevision of Puerto Rico, Inc. ("Puerto Rico");
54% of Torneos y Competencias S.A. ("TyC"); and other Latin
American distribution assets.

--  Latin America attributed revenue and cash flow decreased 61%
and 71%, respectively, primarily due to the impact of the
devaluation of the Argentine Peso and the economic instability in
Argentina.  Decreases in attributed revenue and cash flow were
partially offset by gains in revenue and cash flow at Puerto
Rico.

--  Puerto Rico experienced a 13% increase in revenue due to
higher ARPUs driven by increased digital penetration and a rate
increase implemented towards the end of the first quarter of
2002.  Puerto Rico also experienced an increase in cash flow of
6% due primarily to higher revenue.  After only 18 months since
the launch of digital services, Puerto Rico achieved 23% digital
subscriber penetration, and in June 2002, Puerto Rico launched a
high-speed Internet service offering.

--  The Argentine-based businesses experienced attributed revenue
declines of 75%, 61% and 84% at Cablevision, Pramer and TyC,
respectively. Attributed operating cash flow decreased 75%, 73%
and 94% at Cablevision, Pramer and TyC, respectively.  Decreases
in both attributed revenue and cash flow are primarily due to the
effect of devaluation and, in the case of Cablevision, subscriber
churn. Excluding the effect of devaluation, cash flow at
Cablevision decreased by 13%, Pramer's decreased 3% and TyC's
decreased by 21%.

--  It is expected that the deteriorating political and economic
situation in Argentina will continue to have a substantial
negative impact on Liberty's operating companies in Argentina,
principally Cablevision. Currency devaluation, government-imposed
restrictions on foreign payments and the prolonged recession are
making it difficult to collect receivables, pay vendors, service
debt and develop strategic plans.

                                      Liberty Media Corporation
                                              Cash and Debt
                                               (unaudited)
                                       06/30/02        03/31/02
                                          amounts in millions
     Cash and Cash Related Investments:
       Liberty Corporate Cash           $1,871          1,859
       Corporate Short-term Investments    107            139
       Corporate Long-term Marketable
         Securities (1)                    356            280
         Total Corporate Cash and
          Liquid Investments             2,334          2,278
       Cash of Subsidiaries (2)            104             70
     Total Cash and Liquid Investments   2,438          2,348
     Less: Corporate Short and Long-term
             Securities                   (463)          (419)
     Consolidated Cash Balance (GAAP)   $1,975          1,929

     Debt:
       Senior Notes and Debentures (4)  $2,488          2,487
       Senior Exchangeable
         Debentures (3)                  3,096          3,096
       Bank Credit Facilities and Other    550            675
         Total Corporate Debt            6,134          6,258
       Debt of Subsidiaries (2)          1,406          1,497
     Total Corporate and Subsidiary Debt 7,540          7,755
     Less:  Unamortized Discount Attributable
             to Call Option Obligation  (2,235)        (2,236)
            Unamortized Discount (4)       (19)           (19)
     Consolidated Debt Balance (GAAP)   $5,286          5,500

(1)  Represents long-term liquid cash equivalents which are
included in investments in available-for-sale securities and
other in Liberty's consolidated balance sheet

(2)  Represents primarily Liberty's consolidated subsidiaries
Starz Encore, Liberty Livewire Corp., Liberty Satellite &
Technology, Inc., OnCommand Corp. and DMX Music, Inc.

(3)  Represents face amount of Senior Exchangeable Debentures,
with no reduction for the unamortized discount attributable to
the embedded call option obligation in the amount of $2,235

(4)  Represents unamortized issue discount of $19 million on
Senior Notes and Debentures which is being amortized to interest
expense in Liberty's consolidated statement of operations.

Liberty's Total Corporate Cash and Liquid Investments increased
by $56 million and Total Corporate Debt decreased by $124 million
compared to March 31, 2002. The increase in corporate cash was
primarily due to proceeds from the sale of Liberty's investment
in Telemundo and the sale of shares of Motorola common stock.
This was partially offset by purchases of Liberty common stock,
the exercise of Motorola warrants and Liberty's funding of
Jupiter Telecommunications Co. Ltd.

SUMMARY OF LIBERTY'S OWNERSHIP OF SIGNIFICANT PUBLIC ASSETS
             Shares Held 8/14/02    Share Price     Market Value
Ticker Symbol  (in millions) (1)      8/14/02      (in millions)
NWS.A                232.0         $18.00             $4,176.0
USAI                  89.7          22.23              1,994.0
AOL                  171.2          11.05              1,891.6
MOT (2)               83.9          12.07              1,012.7
PCS (3)              192.0           4.24                814.3
VIA.B (4)             15.2          38.95                591.4
UCOMA                307.0           1.80                552.6
V (5)                 37.4          11.66                436.1
CD                    26.4          13.52                356.9
IDT                   10.3          15.75                162.2
CJR                    7.1          12.50                 89.1
LWIRA (6)             37.5           2.00                 75.0
CRWN                   9.5           6.35                 60.3
LSTTA / LSTTB (7)     34.9           1.05                 36.6
TWSTY(8)              74.4           0.32                 23.8
Other                                                    169.2
                                                     $12,441.8
Impact of Underlying
Collars (9)                                            4,768.0
                                                     $17,209.8

(1)  Represents common share equivalents, assuming all applicable
conversions and exchanges, unless otherwise noted.

(2) Includes 22.1 million shares underlying Liberty's 3.5% Senior
Exchangeable Debentures due 2031, which have an initial exchange
price of $27.16 per Motorola share.

(3) Excludes 12.6 million warrants exercisable at $12.01 per
share that expire November 13, 2003 and preferred convertible
shares (face amount $123 million) that convert into 8.0 million
common shares. Includes 19.9 million shares underlying Liberty's
4% Senior Exchangeable Debentures due 2029, which have an initial
exchange price of $43.58 per Sprint PCS Group share. Includes
13.6 million shares underlying Liberty's 3.75% Exchangeables due
2030, which have an initial exchange price of $59.61 per Sprint
PCS Group share. (4) Includes 15.2 million shares underlying
Liberty's 3.25% Senior Exchangeable Debentures due 2031, which
have an initial exchange price of $53.86 per VIA.B share

(5)  Liberty owns 37.4 million ordinary shares of Vivendi
Universal S.A. which is the equivalent of 37.4 million ADS's.

(6) Represents Class B shares which carry ten votes to each
Class A vote. Excludes $215.0 million drawn amount of Liberty
Livewire Corporation's Convertible Debt Facility, of which $206.2
million is convertible at $10 per share and $8.8 million is
convertible at $3.50 per share.

(7) Excludes preferred representing $150 million face amount of
nonconvertible preferred stock of LSAT and $150 million face
amount of convertible preferred stock, convertible at a price of
$88.40. (8) Liberty owns 744.4 million ordinary shares of
Telewest which is the equivalent of 74.4 million ADRs (10
ordinary shares to one ADR). (9) Represents the total intrinsic
difference between the hedged and market value of the underlying
securities. Hedged values are calculated by multiplying the put
price of the respective hedge instruments (which include cashless
collars, put spread collars and narrow band collars) by the
number of shares underlying the hedge instruments. The effect of
put spread collars is then subtracted from this amount to
calculate net impact of underlying collars.

Stock Repurchase Program/Outstanding Shares

During the second quarter, Liberty purchased 24.8 million shares
at an average cost per share of $10.92. Liberty also sold puts on
6 million L shares, of which 4 million remain outstanding with an
average strike price of $9.00. Including proceeds from the sale
of puts on 6 million L shares, the average cost per share of L
shares repurchased in 2002 was $10.80. At June 30, 2002, there
were approximately 2.570 billion outstanding shares of L and
LMC.B and 76 million shares of L and LMC.B reserved for issuance
pursuant to warrants and employee stock options. At August 14,
2002, the majority of the options to purchase L and LMC.B shares
had a strike price that was higher than the closing stock price.
This implies such options are anti-dilutive. However, if these
options as well as all other warrants and options to purchase L
and LMC.B shares were exercised it would result in aggregate
proceeds of approximately $912 million.

    OTHER EVENTS:

Agreement With France Telecom to Acquire N.V. Casema

On August 1, 2002, Liberty announced that it has signed a
definitive agreement with France Telecom for the acquisition of
Dutch cable operator N.V. Casema. With this acquisition Liberty
will further expand its footprint in the European cable market.
Under the terms of the agreement, Liberty will acquire 100% of
Casema for euro 750 million in cash. Liberty expects to finance
the transaction with a combination of cash and new bank
financing. Closing of the transaction, which is expected in the
fourth quarter of 2002, is subject to regulatory approval from
The Netherlands Competition Authority (NMa), and other customary
closing conditions.

Casema is the third largest cable operator in The Netherlands
with 1.5 million homes passed by its cable network and 1.4
million revenue generating units. Casema's network presence is
concentrated in key cities in The Netherlands, including The
Hague, Utrecht and Breda. Casema provides both analog and digital
video services as well as broadband Internet access services to
residential customers. Through its deployed national fiber
network, Casema also offers voice and data services to the
business market.

Acquisition of Chofu Cable Television KK (Japan) with Microsoft
Corporation

On July 26, 2002, Liberty acquired 46% of Chofu Cable Television
from Microsoft for approximately $16 million in cash. Upon
completion of the transaction, Liberty and Microsoft each own 46%
with local partners owning the remainder. Chofu has 151,000 homes
in its franchise area, passes 97,000 homes and currently serves
22,000 cable subscribers and 4,000 internet customers. Chofu is
contiguous with J-COM's footprint and will be managed by J-COM.

ACTV, Liberty Amend Agreement

On July 9, 2002, ACTV, Inc. reported that it has signed an
amended agreement with Liberty relating to the possible
acquisition of the outstanding shares of ACTV common stock by
Liberty or one of its controlled affiliates. The amended
agreement contemplates that the consideration to be paid to
acquire the ACTV shares would be $1.65 per share and would be
payable in cash, publicly traded common stock of the acquirer or
an affiliate or a combination thereof. On August 14, 2002, ACTV
reported that it and Liberty have agreed to extend to September
15, 2002 the exclusive period for negotiating definitive
agreements related to Liberty's proposed acquisition.

Sale of Cablevision S.A. (Argentina) Interest to VLG Acquisition
Group

On June 25, 2002, Liberty sold 21.8% of the equity interest and
100% of the voting interest of Liberty Argentina, Inc. for $14
million. Liberty Argentina owns 50% of Cablevision S.A. Following
this transaction, Liberty owns 78.2% of the equity and none of
the vote of Liberty Argentina, Inc. which translates to a 39.1%
equity interest and no voting interest in Cablevision, S.A.

Liberty Broadband Interactive Television to Acquire Wink
Communications

On June 24, 2002, Liberty Broadband Interactive Television, Inc.
(LBIT) and Wink Communications, Inc. announced the execution of a
definitive merger agreement whereby LBIT will acquire all of the
outstanding stock of Wink. Under the terms of the agreement, Wink
stockholders will receive $3.00 in cash for each share of Wink
common stock. The transaction, which has been approved by Wink's
board of directors, is subject to approval by Wink's shareholders
and the satisfaction of certain other conditions to closing.
Stockholders, including but not limited to Wink's Founder, its
CEO and Benchmark Capital, representing approximately 20% of the
outstanding shares of Wink have entered into Voting Agreements to
vote their shares in favor of the transaction. It is anticipated
that the merger will be completed during the third quarter of
this year.

Certain statements in this press release may constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other
important factors that could cause the actual results,
performance or achievements of Liberty Media Corporation and
subsidiaries or industry results, to differ materially from any
future results, performance or achievements expressed or implied
by such forward-looking statements. Such risks, uncertainties and
other factors include, among others: the risks and factors
described in the publicly filed documents of Liberty Media
Corporation, including the most recently filed Form 10-Q of
Liberty Media Corporation; general economic and business
conditions and industry trends including in the advertising and
retail markets; the continued strength of the industries in which
we operate; uncertainties inherent in proposed business
strategies and development plans; rapid technological changes;
future financial performance, including availability, terms and
deployment of capital; availability of qualified personnel;
changes in, or the failure or the inability to comply with,
government regulation, including, without limitation, regulations
of the Federal Communications Commission, and adverse outcomes
from regulatory proceedings; changes in the nature of key
strategic relationships with partners and joint ventures;
competitor responses to Liberty Media Corporation's products and
services, and the overall market acceptance of such products and
services, including acceptance of the pricing of such products
and services. These forward-looking statements speak only as of
the date of this Release. Liberty Media Corporation expressly
disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statement contained
herein to reflect any change in Liberty Media Corporation's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.

CONTACT:  LIBERTY MEDIA CORPORATION
          Mike Erickson
          Tel. +1-877-772-1518
          URL:
http://www.libertymedia.com/investor--relations/default.htm


SCOTIABANK QUILMES: To Be Split Between Two Small Banks
-------------------------------------------------------
The central bank of Argentina decided to split Scotiabank Quilmes
between two tiny local banks, Banco Comafi and Banco Macro/Bansud
(BSU). Citing an official from the central bank, Reuters reports
that the 91 branches of the local unit of the fourth-largest bank
in Canada, Bank of Nova Scotia, will be divided between the two
smaller banks and 1,200 of its 1,800 employees will keep their
jobs.

Banco Comafi is a wholesale bank with a handful of retail
branches in the poor, northern province of Tucuman where it
controls the local provincial bank.

Banco Macro/Bansud (BSU), on the other hand, has a small network
of retail banking branches.

Scotiabank Quilmes had most of its operations suspended by the
Argentine central bank in late April due to lack of liquidity
after its Canadian parent effectively wrote the entire unit off
by taking a CAD540 million (US$345 million) charge in March.

The local unit's demise came after last year's run on nearly a
quarter of all deposits in the midst of a four-year recession
that forced a debt default and devaluation that helped plunge
half of Argentina's 36 million people into poverty and pushed one
in five out of work.

CONTACT:   SCOTIABANK QUILMES
           Alan Macdonald
           Chief Executive Officer
           Phone: (54-11) 4338-8000
           Fax: (54-11) 4338-8033
           Mail: 6th Floor
           Gral. J.D. Peron 564
           (C1038AAL) Buenos Aires

           Roy D. Scott
           Vice-President and Managing Director, Latin America
           Phone: (54-11) 4394-8726
           Fax: (54-11) 4328-1901
           Mail: P.O. Box 3955
           C1000WBN Correo Central
           Buenos Aires, Argentina
           E-mail: scotiarep@sinectis.com.ar


SCOTIABANK QUILMES: Moves To Stem Increasing Losses
---------------------------------------------------
Bank of Nova Scotia has learned its lesson well and is acting
more carefully now. According to a report by Bloomberg, the first
foreign bank to announce its plan to exit Argentina following the
country's debt default is cutting lending in neighboring Brazil
to stem the potential flow of losses.

Eduardo Klurfan, a vice president who runs the bank's Brazil unit
said that Scotiabank is renewing about 30% of Brazilian trade
finance contracts as they come due and keeping maturities to no
more than six months.

Some investors have grown wary about the bank's Brazilian loans
and bond holdings after a four-month rout in the nation's
currency and debt markets. Scotiabank had US$323 million of
Brazilian bond holdings and US$415 million in trade financing as
of April 30.

Investors' "biggest concern has been what's been happening in
South America," said Michael Sprung, who holds Scotiabank shares
in the CAD14 billion he helps manage at YMG Capital Management
Inc. "Two years ago, everybody was applauding Scotiabank for
being internationally diversified relative to other banks. During
times of contraction, it's going to work against them."



=============
B E R M U D A
=============


TYCO: Internal Probe Results Expected September 15
--------------------------------------------------
Industrial conglomerate Tyco International Ltd. forecast
September 15 as the date it would reveal the results of its
internal investigation on deals done by senior corporate
officers, including ex-chief executive Dennis Kozlowski,
Financial times reports.

Results of the investigation recently have unveiled several
questionable transactions, including use of company funds for
personal benefit of top executives.

Tyco may also launch follow-up investigations that will
scrutinize the company's accounting practices. Currently, the
SEC's review of its finances resulted to "reclassification" of
some minor items.  The SEC may undertake a formal investigation
should significant issues arise.

Tyco, on the other hand, has affirmed its belief on the accuracy
of its financial results.

The decision to conduct another probe came as confidence in the
company's stock continues to wobble. Its shares have fallen
nearly 80 per cent this year.

Boies, Schiller & Flexner, headed by David Boies, will lead the
probe, which is expected to be complete by autumn. The company's
new CEO, Edward Breen, is reportedly prepared to certify Tyco's
financial statements when done.

The company has been subject to intense scrutiny from different
entities.  Its regulatory filing revealed that the SEC has
requested files along with Manhattan district attorney, a US
House of Representatives committee, and federal prosecutors and
regulators in New Hampshire.

CONTACT:  TYCO INTERNATIONAL LTD. (Corporate Offices)
          The Zurich Centre, Second Floor
          90 Pitts Bay Road
          Pembroke HM 08, Bermuda
          441-292-8674
          URL: http://www.tyco.com/main/index.jsp


TYCO INTERNATIONAL: Ex-VP Goes To Court Over Severance Dispute
--------------------------------------------------------------
A former vice president of Tyco International Ltd. filed a
lawsuit demanding more than $9 million in severance pay from the
company, Chicago Sun Times reports. Richard Power was among the
top executives fired after former Chief Executive Dennis
Kozlowski was indicted on sales tax evasion on costly artworks.

Power was receiving US$4.65 million before he was fired on June.
According to his suit filing in the Manhattan federal court, his
contract entitles him to a payment that is double his final-year
salary.

The former vice president has been with Tyco for 20 years, a
period interrupted only briefly when he left the firm in 1999.
Kozlowski lured him back shortly with a salary of $400,000 plus
millions of dollars in cash bonuses.

Tyco would not give any comment, as the company is yet to see the
lawsuit, says spokesman Gary Holmes.

Tyco International Ltd. has been reviewing retention agreements
of all senior executives as part of its ongoing internal
investigation. Among those investigated was Richard Meelia, whose
expensive retention agreement, according to Reuters, could be
controversial as the company probes undisclosed transactions done
under ex-CEO Dennis Kozlowski's term.

Also, chief corporate counsel Mark Belnick was dismissed, on
grounds of conspiracy with Kozlowski to hide retention deals that
would have paid him US$10.6 million.  A suit followed on improper
compensation of US$35 million for Belnick.



===========
B R A Z I L
===========

ENRON: Settles Merger-Related Litigation With Dynegy
----------------------------------------------------
Enron Corp. (ENRNQ) and Dynegy Inc. (NYSE: DYN) announced
Thursday that they have reached a settlement of litigation
arising from the failure of the November 2001 merger of the two
companies. The settlement agreement has been approved by the
boards of both companies.

Under the terms of the agreement, Dynegy will pay Enron $25
million to settle the lawsuit Enron had filed alleging breach of
contract for wrongful termination of the merger. Enron has agreed
to release Dynegy from any and all claims relating to the
terminated merger and to dismiss such litigation.

In addition, Dynegy has agreed not to pursue any claims for
working capital adjustments relating to its acquisition of
Northern Natural Gas Company (NNG) from Enron last February. This
will result in the release of funds to Enron that had been
escrowed in connection with the sale of NNG, pending a review of
working capital as of the closing date. The settlement amount and
the release of escrowed funds are subject to bankruptcy court
approval.

Enron has agreed to continue providing transition services to NNG
once MidAmerican Energy Holdings Company's purchase of the
pipeline from Dynegy is completed later this month. Enron has
been providing services on a transition basis under an agreement
established between the two companies when Dynegy acquired NNG.
Enron has agreed to allow the assignment of that agreement, which
runs until Jan. 31, 2003, to MidAmerican Energy.

"We are pleased to have reached a settlement that enables both
companies to move forward without the shadow of protracted
litigation. This settlement maximizes value for our creditors,
which is Enron's top priority at this time," said Enron Interim
CEO Stephen F. Cooper. "Through the transition services
agreement, we will continue to work with Dynegy and MidAmerican
Energy to ensure that the NNG transition goes smoothly and that
NNG's customers continue to receive safe and reliable service."

Dan Dienstbier, interim CEO of Dynegy Inc., said, "This
settlement resolves a matter that has been weighing on our
company and our stakeholders, and we are pleased to have done so
on terms that are reasonable for Dynegy. The transfer of the
transition services agreement is an important step in the timely
completion of our sale of NNG to MidAmerican Energy."

Enron has significant natural gas and electricity assets in North
and South America. Enron's Internet address is www.enron.com.

Dynegy Inc. is a global energy merchant. Through its owned and
contractually controlled network of physical assets and its
marketing, logistics and risk management capabilities, Dynegy
provides solutions to customers in North America, the United
Kingdom and continental Europe. The company's website is
www.dynegy.com.

CONTACT:  ENRON
          Karen Denne
          (713) 853-9757

          Dynegy
          John Sousa
          (713) 767-5800


NET SERVICOS: Debt Costs Hamper 2Q02 Financial Results
------------------------------------------------------
Net Servicos de Comunicacao S.A. (Bovespa: PLIM4 and PLIM3;
Nasdaq: NETC; Latibex: XNET), the largest Pay-TV multi-service
operator in Latin America, a significant provider of bi-
directional broadband Internet access (Virtua) and multimedia and
data communication services for corporate networks, announced
Thursday its earnings results for the second quarter of 2002
(2Q02). Net Servicos de Comunicacao S.A. is the new denomination
of Globo Cabo S.A.

Operating and Financial Highlights

-- Net revenues for 2Q02 were US$ 111.7 million, a 7.0% decrease
when compared to US$ 120.1 million in 1Q02.

-- EBITDA reached US$ 27.2 million in 2Q02, a 13.3% decrease from
US$31.4 million in the previous quarter.

-- Operating Income (EBIT) reached US$ 4.6 million compared to
US$ 6.7 million in 1Q02.

-- Net debt reached US$ 554.0 million in the quarter, a decrease
of 14.9% compared to US$ 651.1 million in 1Q02.

-- Net loss totaled US$ 115.5 million in the quarter (US$ 4.11
per ADS), due to higher net financial expenses of US$ 117.4
million driven by the Real depreciation.

-- Pay-TV ARPU (Total Pay TV Gross revenues excluding sign-on and
hookup revenues per average active subscribers in the period)
reached US$29.79 in the quarter.

OPERATING PERFORMANCE

PAY-TV

- The subscriber base ended this quarter with 1,367 thousand
active subscribers, a 2.3% drop compared to 1Q02. This decrease
was achieved by the continuous caution in marketing expenses and
investments in installations during the quarter. The total
subscriber base, which includes temporarily blocked subscribers,
dropped 2.5% and ended the quarter with 1,386 thousand
subscribers.

- As a result of a greater selectivity in the sales efforts for
the Standard package, its participation in the subscribers mix
decreased from 11.1% to 10.6%, while the share of the Advanced
selection, our
package with the greatest added value, grew from 49.1% to 49.4%.

- This improvement in the subscribers mix contributed to reduce
the annualized churn rate to 19.6%, below the 20.9% shown in
1Q02. The Company considers this to be an admissible rate given
the current macroeconomic conditions and the characteristics of
the Standard selection. However, Net Servi?os is still analyzing
solutions to bring the churn down to lower rates. Some of the
solutions are the creation of "retention islands" (skilled
customer service, targeting the retention of subscribers that
could potentially disconnect due to dissatisfaction), the
outsourcing of the call center (which should increase the
percentage of received calls that are answered to over 90% from
the current 75%) and the reduction in sales of the Standard
selection.

- Voluntary disconnections, i.e., disconnections requested by our
subscribers, represented 18% of total disconnections. Among
those, the ones justified by financial or personal reasons rose
to 25% in 2Q02 compared to 20% in the previous quarter, which
clearly shows how the macroeconomic scenario has affected our
non-Advanced subscribers habits. Disconnections justified by
moving to other cities or to areas not covered by our cable
network grew to 24% of total from the 1Q02's level of 22%, while
drifting to competition remained at a low 4% level.

- With the codification carried out in the city of Santos in May,
in the most critical sites regarding piracy, the percentage of
codified homes passed increased from 54% to 55%. The Company
performed the codification with previously acquired equipments
and with its own existing workforce, not involving investments.

BROADBAND

Total net sales of V¡rtua dropped 2.5% compared to 1Q02 and
reached 53,659 at the end of this quarter. The main reason for
this decrease was the previously mentioned change in the
subscriber control system from V¡rtua Jr. to Siebel. The
introduction of this system allowed us to use a stricter
subscriber disconnection criteria concerning payment default on
V¡rtua or the ISPs. This quarter, the change occurred in the
cities of Sao Paulo, Campinas, Santos, Rio de Janeiro and
Bras¡lia, which together account for 70% of our subscriber base
and caused the disconnection of 2,532 subscribers.

The change in other cities, which have a lower number of
subscribers, should occur in the third quarter without a
significant impact.

- V¡rtua's annualized churn rate in 2Q02 was 34.3%, compared to
12.7% in 1Q02. This increase is a consequence of the change in
its control system, as previously mentioned. Were it not for this
extraordinary adjustment, churn would have been 13.7%, very close
to the rates shown in previous quarters.

- The penetration in the active subscriber base was 3.9%, the
same level of 1Q02. When taking only the subscriber base that
already has activated bidirectional access, the penetration was
also fairly stable, at 12.3%.

- Sales of 256 kbps speed or higher represented 53% of sales mix
in the quarter.

- Focusing on differentiation of service and content, Net
Servi?os launched on July 31st, 2002 the "Ambiente V¡rtua", an
environment to browse multimedia sites that is exclusive to
V¡rtua subscribers.

In this environment, the user is part of an interactive
community, with access to content and services segmented by areas
of interest - entertainment, games, interactivity, tourism,
services and shopping.

Moreover, the environment will optimize the subscriber access,
since the content providers will now have a direct link with Net
Servi?os operation center. Initially, the environment is
available only in the city of Sao Paulo but will be extended to
the main capitals such as Rio de Janeiro, Porto Alegre and
Bras¡lia. The following portals and websites are part of the
"Ambiente V¡rtua": SuperIG, Terra, Yahoo, All TV, Fulano,
InetChat, X-Virtual, Cfmera Aberta, Velop, WHG, Climatempo,
Dom¡nio F cil, Justo Aqui, Tucows, E-Store Symantec and Futsim.

- We also announced a new business model for V¡rtua with the
ISPs. The company led a consortium of broadband ISPs that allowed
a joint negotiation and caused a significant drop in the cost of
leasing Embratel's link. As a cons equence, costs for V¡rtua
subscribers fell substantially, due to lower monthly fees paid to
ISPs. For example, Terra's monthly fees fell from R$ 55.00 to R$
19.90 and iG reduced its fees to R$ 14.90. The Company will
receive monthly fees from the ISPs based on the number of V¡rtua
subscribers connected to their Internet access services.
Broadband revenues this quarter have already been positively
impacted by this agreement

- Net Servi?os created the position of Technical Ombudsman
seeking the improvement of Customer Care. He will help solving
technology and IT related issues.

CORPORATE NETWORKS

- In the corporate network segment, the number of stations
registered a significant growth of 21% and reached 4.0 thousand
in the quarter compared to 3.3 thousand in 1Q02. This increase
was driven by two new contracts: (i) to provide technical
assistance to the satellite stations of a large network; and (ii)
to perform the maintenance of radio backbones (microwave-based
broadband network) in the cities of
Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre.

CONSOLIDATED EARNINGS ANALYSIS

Gross Revenues Breakdown

- Gross revenues were US$ 134.9 million, a 6.6% decrease compared
to US$ 144.5 million in 1Q02.

Gross revenues are comprised of the following:

1. Pay-TV subscription revenues5 in the second quarter decreased
3.8% to US$ 118.0 million, compared to US$ 122.7 million in 1Q02.
The Regions 1 and 2 monthly fees readjustments occurred in June
positively affected subscription revenues, which was offset by
the currency devaluation and the decrease of 2.3% in the active
subscriber base. The annual readjustment is calculated based on
the 12 month accumulated IGP-M index, which was 8.9%, limited to
the package sales price for new subscribers. In Region 3,
readjustments are concentrated in September. ARPU was US$ 29.79
in this quarter, a decrease of 4.2% compared to 1Q02. Lower
revenue from Pay-Per-View in 2Q02 offset this readjustment.

2. Average hook-up revenue (per new subscriber) was US$ 59.99, a
11.0% decrease in relation to US$ 67.40 in 1Q02. The Real
depreciation and deferred hook-up fees offset the gains from the
decision to equalize the hook -up fee to all subscribers, raising
the Standard and Master selection hook-up fees to the same level
of the Advanced selection. However, total hook-up revenues
decreased 27.5% driven by the Real depreciation and a 19%
decrease in sales, reaching US$ 2.4 million in 2Q02, compared to
US$ 3.3 million in 1Q02.

3. Pay-Per-View revenues were US$ 2.7 million, a 56.6% decrease
compared to US$ 6.2 million in the previous quarter. This result,
which is consistent with the seasonality of PPV sales, is
primarily explained by the concentration of soccer packages in
the first quarter (State and Interstate Soccer Championships) and
third quarter (Brazilian Championship) and by the Real
depreciation. In the second quarter, PPV sales are reduced to
single matches where the prices are much lower than the full
packages sold in the first and third quarters. Moreover, the
closing of PSN channel also negatively affected PPV sales.

4. Corporate network revenues, reached US$ 5.2 million during the
quarter, compared to US$ 5.5 million in the 1Q02. Despite the
base growth of 21%, this 6.8% decrease on revenues is explained
by the 6% decrease in number of company -owned stations, which
hold higher value added services, compared to 1Q02.

5. Broadband revenues remained stable, totaling US$ 3.8 million
in 2Q02. Although revenues were positively affected by the
beginning of remuneration from ISPs according to the new Virtua
model, implemented in 2Q02, and by an improvement in subscriber
speed mix, the Real depreciation offset those effects. Active
subscribers with connections of 256 Kbps or above reached 50.5%
from 50.2%, mainly due to the increase in 512 Kbps subscribers.
Broadband ARPU increased 0.2%, reaching US$ 24.00 compared to US$
23.96 in the previous quarter.

- Services and other taxes totaled US$ 23.2 million, decreasing
4.7% compared to US$ 24.3 million in 1Q02.

- Net Revenues for 2Q02 were US$ 111.7 million, a 7.0% decrease
compared to US$ 120.1 million in 1Q02, due to the aforementioned
reasons.

- Direct Operating Expenses were US$ 65.1 million, a 1.2%
decrease compared to US$ 65.9 million in the previous quarter.
The main reasons for this performance are as follows:

1. Programming and Royalties costs were US$ 39.5 million for
2Q02, a 4.3% decrease compared to US$ 41.3 million in 1Q02. In
2Q02, programming costs decreased as a result of lower PPV
expenses (due to the higher allocation of soccer championships
costs in 1Q02 and the closing of PSN channel), the reduction in
subscriber base and the Real depreciation. However, the exchange
rate repricing in some contracts with programmers, which made
programming costs slightly increase in local currency, partially
offset this decrease. The Company is seeking a wide negotiation
of programming costs aiming to eliminate the existing currency
gap and to keep these costs between 28% and 30% of net revenues.

2. Network Expenses reached US$ 6.6 million in 2Q02, remaining
quite stable compared to US$ 6.5 million in 1Q02. The main
components of this item are the renting of poles and network
power supply.

3. Customer Relations expenses increased 20.2%, reaching a total
of US$ 3.7 million compared to US$ 3.1 million in the previous
quarter. This increase is a result of new subscriber promotions
(featuring the "T" na Cor,ia com a NET" marketing campaign,
related to the Soccer World Cup),
intensification of polls with subscribers and programming guides
cost readjustments.

4. Payroll and Benefits expenses totaled US$ 9.6 million in 2Q02,
a 6.4 % increase compared to US$ 9.1 million in the previous
quarter; mainly due to severance costs associated with layoffs
occurred in the quarter, following the cost reduct ion policy.

5. Other Operating Expenses decreased 4.8% in 1Q02, reaching US$
5.8 million compared to US$ 6.0 million in the previous quarter.
The group also includes items such as third-party services,
connection expenses (link) for V¡rtua, ECAD (copyrights) payments
and partnership with Telemar in Belo Horizonte, which remained
virtually stable.

- Selling, General and Administrative Expenses (SG&A) decreased
15.2%, reaching US$ 19.4 million in 1Q02 from US$ 22.9 million in
the previous quarter. The main reasons for this performance were:

1. Selling Expenses totaled US$ 0.8 million, a 52.8% drop
compared to US$ 1.8 million in the previous quarter. This strong
decrease is due to lower marketing expenses towards the
acquisition of new clients, as a result of the caution adopted by
the Company under the current uncertain scenario.

2. General and Administrative Expenses8 totaled US$ 15.2 million,
a 4.3% decrease compared to US$ 15.8 million in the previous
quarter.

3. Bad Debt Expenses totaled US$ 2.9 million in this quarter, a
decrease of 7.0% compared to US$ 3.1 million in 1Q02, due to the
Real depreciation. Bad debt expenses corresponded to 2.6% of net
revenues in 2Q02 and 1Q02.

4. Other SG&A expenses totaled US$ 0.5 million compared to US$
2.1 million in the previous quarter. In 2Q02, as well as in the
previous quarter, there was a provision of R$ 3.0 million
(approximately
US$ 1.1 million) related to future expenses with administrative
reorganization. However, a provisioned amount of R$ 3.1 million
was already used during the quarter due to the beginning of the
reorganization.

- Consolidated EBITDA10 reached US$ 27.2 million, a 13.3%
decrease compared to US$ 31.4 million in 1Q02, mainly due to
programming costs and the Real depreciation. EBITDA margin
decreased from 26.1% to 24.3%. The EBITDA breakdown by operating
segment in 2Q02, shown on the table on the last page, is as
follows:

1. Pay-TV EBITDA was US$ 25.5 million, 16.6% lower than US$ 30.6
million in 1Q02. This result was caused by a decrease in PPV
revenues, higher programming and royalties costs in local
currency and the Real depreciation. The EBITDA margin was 24.5%,
compared to the previous quarter's 27.2% margin.

2. Broadband EBITDA was positive and reached US$ 0.4 million, a
better performance than the negative result of US$ 0.5 million
achieved in 1Q02. This is due to the improvement in subscriber
mix, the resumption of recording of rebates from ISPs and lower
operating costs due to the administrative reorganization and
optimization of expenses. EBITDA margin was positive, reaching
13.2% compared to a negative margin of 17.8% in the previous
quarter.

3. Corporate Networks EBITDA reached US$ 1.3 million, totally
stable compared to 1Q02. Lower general and administrative
expenses offset the decrease in revenues. EBITDA margin rose to
27.4% in 2Q02 from 25.8% in the previous quarter.

- Depreciation and amortization expenses decreased to US$ 23.4
million in 2Q02, a 4.9% drop from US$ 24.6 million recorded in
the previous quarter. In 1Q02, revised depreciation rates were
applied to some assets of the network. In 2Q02, these rates were
adjusted according to the final technical report, which stated
that useful lives for the assets were even longer and caused a
decrease of depreciation expenses in 2Q02.

- Operating Income (EBIT) reached US$ 4.6 million compared to US$
6.7 million in 1Q02. The Company had been consistently reaching
positive EBITDA through the previous quarters. However, due to
depreciation and amortization expenses, the Company had been
experiencing operating losses. With the revision of depreciation
rates and the maintenance of EBITDA close to the previous levels,
the Company was able to achieve another quarter of positive
operating income in US GAAP, and the first positive EBIT in
Brazilian GAAP.

Net Financial Result

- Net financial result was US$ 117.4 million negative, while in
1Q02 it was negative US$ 30.2 million. This result is originated
as follows:

1. Monetary indexation, net was US$ 12.9 million negative for
this quarter compared to US$ 1.8 million negative in 1Q02. The
main driver for this performance was the impact of IGP-M
(consumer/producer price index) over the convertible debentures.

2. Loss on exchange rate, net reached US$ 67.3 million negative,
compared to US$ 1.1 million positive in 1Q02. This result is owed
to the Real depreciation of 22.4% in the quarter, compared to the
stability of the exchange rate in 1Q02.

3. Debt financial expenses (debt interest expenses and related
taxes) reached US$ 21.6 million, remaining fairly stable compared
to US$ 21.4 million in the first quarter. The increase in these
expenses due to the renegotiation with suppliers was offset by
the Real depreciation.

4. Other financial expenses totaled US$ 20.7 million, an increase
of 112.9% from the US$ 9.7 million recorded in the previous
quarter. This increase is mainly explained by the restatement of
the AFACs from the shareholders. Note that approximately 70% of
those expenses did not represent cash disbursements.

5. Financial income was US$ 5.2 million in the quarter, a
outstanding growth compared to US$ 1.6 million in 2Q02. This
increase is mainly explained by gains in hedging instruments due
to the Real depreciation.

- In June 2001, the Financial Accounting Standards Board - FASB
issued Statements of Financial Accounting Standards ("SFAS") No.
141, "Business Combinations", and No. 142, "Goodwill and Other
Intangible Assets", effective for fiscal years beginning after
December 31, 2001. Under the new rules, goodwill and indefinite
lived intangible assets are no longer amortized but will be
subject to annual impairment tests in accordance with the
Statements. Due to the adoption of SFAS 142, the Company
recognized a one time non-cash charge of US$ 367.7 million to
reduce the carrying value of goodwill associated with Net Sul and
Vicom acquisitions. Such charge is non-operational in nature and
is reflected as a cumulative effect of accounting change in the
accompanying consolidated statement of operations for the six
months period ended June 30, 2002. See "New Accounting
Statements" section for more details.

- Net loss reached US$ 115.5 million in the quarter, or US$ 0.41
per ADS (after the reverse split). In the previous quarter, net
loss was restated to US$ 391.4 million due to the aforementioned
charge.

DEBT, CAPITALIZATION AND CASH

See link: http://bankrupt.com/misc/Debt_Capitalization_Cash.pdf

- Total Debt was US$ 570.5 million at the end of 2Q02, a 14.2%
decrease compared to US$ 665.0 million at the end of 1Q02, mainly
due to the Real depreciation. Cash Balance went up 19.2% compared
to the previous quarter and ended at US$ 16.6 million. As a
consequence, Net Debt was
US$ 554.0 million, a 14.9% drop compared to US$ 651.1 million at
March 31, 2002.

- In 2Q02, net amortizations were US$ 37.0 million, US$ 17.7
million of which were related to the IFC, US$ 11.7 to future flow
securitization, US$ 2.6 million to BNDES and US$ 1.2 million to
Eximbank. Interest costs during the quarter were approximately
US$ 22.4 million, being US$ 9.7 million of which related to the
payment of interests of the Senior Guaranteed Notes and US$ 7.2
million, to the 3rd issue of debentures. The Zero Coupon
Guaranteed Notes, totaling US$ 52 million, were settled in July.

DEBT AMORTIZATION SCHEDULE

See link: http://bankrupt.com/misc/Debt_Amortization_Schedule.pdf

LATEST NEWS AND PERSPECTIVES

- As previously approved by the Company's shareholders at the
Extraordinary General Meeting held on May 2nd, 2002, Net effected
on June 17th, 2002 the reverse split of its shares, where each
lot of 10 shares issued by the Company became 1 share. After the
reverse split, Net's Capital Stock then consisted of 121,189,144
common shares and 159,936,142 preferred shares, totaling
281,125,286 shares. Due to the reverse split, the issuance and
cancellation of ADRs at Nasdaq, were suspended between June 14th
and June 19th, 2002.

- Net has continuously strengthened the adoption of the best
Corporate Governance practices. On June 27, 2002, Net joined
Bovespa's Regulation of Corporate Governance Practices - Level 2,
becoming one of the first companies to adopt stricter practices
of disclosure regarding the capital markets.

- By the end of the public offer, 431,100,000 (four hundred and
thirty-one million, one hundred thousand) common shares, no par
value, within the limit of the authorized capital as provided for
in the Company By-laws (the "Common Shares") and 422,465,372
(four hundred and twenty-two million, four hundred and sixty-five
thousand, three hundred and seventy-two) preferred shares, no par
value, within the limit of the authorized capital as provided for
in the Company By-laws (the "Preferred Shares") were distributed,
at the price of R$ 0.70 (seventy cents of Real) per Common Share
and Preferred Share, issued by Net Servi?os de Comunica?ao S.A.,
totaling R$ 597.5 million. In this public offer, the following
amounts were capitalized: (i) R$ 148.4 million in AFACs by Distel
and Globopar; (ii) R$ 114.6 million in intercompany loans
contracted between the Company and Bradesplan (controlled by
Bradespar) and RBS Interativa S.A. (related party of RBS); (iii)
R$ 2.2 million in debts related to programming held by RBS; (iv)
R$ 79.2 million through the delivery of 569 debentures of 2nd
Issue as payment, subscribed by the signatories of the
Recapitalization Protocol (v) R$ 174.7 million in Brazilian
currency, subscribed by the signatories of the Recapitalization
Protocol; (vi) R$ 60.8 million through the delivery of 431
debentures of 2nd Issue as payment, subscribed by third parties;
and (vii) R$ 17.6 million in Brazilian currency, subscribed by
third parties.

- In addition, from August 6th to August 9th, 522 (five hundred
and twenty-two) debentures of 2nd Issue were converted, at the
price of R$ 0.70 (seventy centavos of Real) per Share, with the
issue of 97,585,029 (ninety-seven million, five hundred and
eighty-five thousand and twenty-nine) Preferred Shares. Such
conversions increased the company's capital in R$ 68.3 million.

- The private offer, which will total at least R$ 528.7 million,
shall commence immediately after the Extraordinary General
Meeting to be held on August 16, 2002, which will deliberate the
increase in the Company's capital. Under the private offer, the
following items will be capitalized: (i) R$ 217.7 million in
AFACs made available to the Company by Distel and Globopar; (ii)
R$ 155.2 million in debt related to programming held by Romapar;
(iii) R$ 78.1 million through the delivery of 553 (five hundred
and fifty-three) debentures of 2nd Issue as payment for the
subscription of the shares by Globopar; and (iv) R$ 77.8 million
through the delivery of 561 (five hundred and sixty-one)
debentures of 2nd Issue as payment for the subscription of the
shares by BNDESPAR, thus completing the total amount invested by
the signatories of the Recapitalization Protocol.

- After the conclusion of the recapitalization, the Company has a
new capital structure, less leveraged and better suited to the
world capital market scenario.

NEW ACCOUNTING STATEMENTS

- In June 2001, the Financial Accounting Standards Board - FASB
issued Statements of Financial Accounting Standards ("SFAS") 141,
"Business Combinations" and 142, "Goodwill and Other Intangible
Assets", effective for fiscal years beginning after December 31,
2001. Under the new rules, goodwill and indefinite lived
intangible assets are no longer amortized, but will be subject to
annual impairment tests in accordance with the Statements. This
impairment test uses a fair market value approach of the business
with which the goodwill is associated, rather than the non-
discounted cash flows approach previously required by SFAS 121,
"Accounting for the Impairment of Long Lived Assets and for Long
Lived Assets to be disposed of".

- The company concluded the measurement tests required for
goodwill and indefinite lived intangible assets. The four
reporting units established for evaluation are on a geographic
basis for the consumer services (Region I, Region II and Region
III) and for the corporate services (Vicom).

- The measurement tests are performed as of the date of adoption,
January 1st, 2002. Such tests indicated that an impairment loss
must be recognized at the goodwill from Net Sul and Vicom
acquisitions. The whole evaluation process was validated by
external consultants, as well as the fair values measured. The
assumptions and procedures of the model have been considered
acceptable and appropriately constructed.

- The Company recognized a one time non-cash charge of US$ 367.7
million to reduce the carrying value of goodwill associated with
Net Sul and Vicom acquisitions. Such charge is non-operational in
nature and is reflected as a cumulative effect of accounting
change in the accompanying consolidated statement of operations
for the six months period ended June 30, 2002.

- The difference in expected future values at the measurement
date (January 1st, 2002) and at the date of both acquisitions
(2000) can be explained by the different expectations regarding
the economic and general market conditions. The previous
expectations could not be sustained in January 1st, 2002 and
therefore, at the time of the adoption, revising was necessary.

- The company used this business model as a base for the first
evaluation tests, in March 2002. Although the Company had
indicated a preliminary expected range of total impairment
between US$ 200 million and US$ 240 million at the first
measurement tests, at the conclusive test of June 2002,
management was led to work on a more conservative scenario for
the forecasted operational assumptions of the model. The results
are the aforementioned impairment losses.

To see financial statements:
http://bankrupt.com/misc/Financial_Statements.pdf

CONTACT:  NET SERVICOS DE COMUNICACAO S.A
          Investor Relations, Marcio Minoru
          Tel.: +5511-5186-2811
          Email: minoru@globocabo.com.br

          Lu Yuan Fang
          Tel.: +5511-5186-2637, or
          Email: lfang@globocabo.com.br


SPLICE DO BRASIL: Investors Try To Block Unit's Bond Purchase
-------------------------------------------------------------
Edgy investors moved to halt the purchase of bonds by Tele Centro
Oeste Celular Participacoes SA from its Votorantim, Sao Paulo-
based controlling shareholder, Splice do Brasil. According to a
report by Bloomberg, these investors filed a petition with the
Brazilian securities regulator to block the process and stop
other operators from finalizing similar transactions.

Brasilian-based wireless operator Tele Centro Oeste said Thursday
that it bought BRL190 million ($59.3 million) in bonds from its
controlling shareholder, Splice. Last month, it also bought
BRL470 million of Splice debt.

"Imagine if this trend catches on and all other operators begin
funding their controlling shareholders," said Waldir Luiz Correa,
who heads an association representing minority investors in Tele
Centro Oeste. "It would be chaos."

Splice turned to Tele Centro Oeste as its main source of funding
after capital markets shunned the indebted telecommunications
equipment maker. The company has about BRL850 million in debt,
80% of which is maturing in the next year. Investors now fear
that Tele Centro Oeste may further finance its parent.

"Nothing guarantees that if Splice can't roll over its debt again
that it won't be back for more funding from Tele Centro Oeste,"
said Correa.

Splice said it hired Goldman Sachs Group Inc. to help it
"negotiate alternatives" for its debt, said Ricardo Adenes, chief
financial officer of Splice. The Company plans to pay Tele Centro
Oeste in full, he added.

"Why would Tele Centro Oeste buy an asset that isn't safe, that
isn't a good investment," Adenes said. "There is no conflict of
interest in the transaction. All the debt will be paid."

CONTACT:  GRUPO SPLICE
          Home Page: http://www.splice.com.br/

          SPLICE do Brasil Telecomunicacoes e Eletronica S.A.
          Av. Juscelino K. de Oliveira, 154
          CEP: 18110-710 - Votorantim (SP)
          SAC: 0800 -111316
          Phone: (15) 3353-8300
          Fax: (15) 243-1016
          E-mail: splice@splice.com.br

          Osasco Branch Office
          Rua Presidente Castelo Branco, 27 - Jd. Ago
          CEP: 06016-020 - Osasco (SP)
          Phone/Fax: (11) 3688-1000

          Rio de Janeiro Branch Office
          Rua Sao Jose, 70 - 18  andar
          CEP: 20010-020 - Rio de Janeiro (RJ)
          Phone: (21) 532-3131
          Fax: (21) 532-1260
          E-mail: splicerj@splice.com.br
          Bras­lia Branch Office
          SRTVS - Q701 - Edif­cio Embassy Tower - sala 226
          CEP: 71340-000 - Bras­lia (DF)
          Phone: (61) 224-1465
          Fax: (61) 225-3239

          Bahia Branch Office
          Av. Eduardo Froes da Mota, 20.030 - Bairro Senai
          CEP: 44026-370 - Feira de Santana (BA)
          Phone/Fax: (75) 225-5566
          E-mail: spliceba@splice.com.br

          TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
          SCS Qd. 02, Bloco C, Acesso 26, 7 Andar
          70302-916 Brasilia, D.F., Brazil
          Phone: +55-61-313-7701
          Fax: +55-61-321-3426
          URL: http://www.tco.net.br
          Contacts:
          Alexandre Beldi Netto, Chairman
          Mario C. Pereira de Araujo, Pres./CEO/Chief Investor
                                            Relations Officer
          Luis Andre Carpinteiro C. Blanco, Executive Officer,
                                            Finance


VARIG: Loses CEO Amid Financial Difficulty
------------------------------------------
Varig (E.VPS) chief executive Ozires Silva has tendered his
resignation and will leave his management role as soon as the
Board finds his replacement. Gazeta Mercantil reports that his
resignation came amidst the airline's current restructuring
efforts.

The company's pilots association Apvar (Associacao de Pilotos da
Varig) has recently decided to take matters in their own hands
and presented their own restructuring plan to BNDES (Banco
Nacional de Desenvolvimento Economico e Social).

The plan calls for reducing the shares of nonprofit Ruben Berta
Foundation, whose strong influence in the airlines' management
hinders the company's ability to overhaul its management
structure.

The plan would also secure an injection of some US$250 million
(R$800mil) (by private investor) and R$2bil from the conversion
of Varig' debt with Aerus, besides US$203 million (R$650mil) from
non-recognized labor debts. BNDES is also reported to contribute
around US$1 billion (R$3.4 billion). The plan was under the
supervision of GGR Finance.

The company' restructuring plan on the other hand, includes the
issuance of around US$94 million (R$300mil) in debentures and a
capital increase of around US$187 million (R$600mil).

With the financial crisis the Brazilian airline is facing, the
company has so far returned 18 aircraft to GE Capital within the
past two months. Two aircraft leased from GATX are also being
offered for sale in the international market.

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: www.varig.com.br/english/
          Contacts:
          Dorival Ramos Schultz, EVP Finance and CFO
          E-mail: dorival.schultz@varig.com.br

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



=========
C H I L E
=========

EDELNOR: Company is Confident as GTA Guarantee Approaches
---------------------------------------------------------
Chilean power generator Edelnor told securities regulator SVS
that it managed to get an extension for the fourth time from gas
transport company Gasoducto Norandino for the presentation of its
guarantees for a gas transport agreement (GTA) to September 16,
relates Business News Americas.

The GTA signed in 1997 stipulates that if Edelnor does not
achieve a rating of BB+ from Standard & Poor's, it must authorize
a contract compliance guarantee, a personal guarantee authorized
by former Edelnor controller Mirant Company.

S&P maintained its `CC-` rating for Edelnor even after the
Company paid on June 17 one of the US$4.7 million quotas on its
US$340-million bond debts.

However, Edelnor's directors seem to be unperturbed by the
Company's credit ratings. What concerns them most is the
renegotiation of the Company's debt in accordance with its
operations, company owner Fernando del Sol said.

Del Sol owns FS Inversiones, which has 82.3% of Edelnor.
Renegotiating the debt would allow FS Inversiones to go ahead
with the plan to sell control of the Company.

Analysts predict that the future prospects of Edelnor would
depend on restructuring the debt with bondholders, a process that
is underway and should be completed by September. This involves
renegotiating two issues: US$90 million to 2005, and US$250
million to 2006.

This restructuring of debt is a condition for Tractebel Andino, a
subsidiary of Belgium's Tractebel, to exercise its purchase
option for FS Inversiones' Edelnor stake.

Edelnor has two coal-fired generators - 166MW Mejillones I and
175MW Mejillones II - and the 250MW natural gas-fired plant
Mejillones III. All three are situated in the city of Mejillones
in northern Chile's Region II.

CONTACT:  Empresa Electrica Del Norte Grande SA (EDELNOR)
          Avenida Grecia 750
          Antofagsta, Chile
          Phone: +56 55 248500
                 +56 55 248094
          Contact: Fernando del Sol, Chairman


MADECO: Debt Restructuring Tricky at Best
-----------------------------------------
Chilean copper and wire manufacturer Madeco is likely to
encounter a stumbling block in the restructuring of its debts.

In a Business News Americas report, an analyst revealed a
disappointing projection that the Company's minority shareholders
may not be interested in increasing their US$90-million share in
an equity issue as part of the restructuring.

"To tell you the truth, I am not at all sure they will take up
the offer," the analyst said, pointing out that Madeco's
operations in Argentina, where it has closed its plants, and
Brazil don't have immediately good prospects.

However, Chile's Luksic group, as Madeco's majority shareholder,
moved to ensure the success of the restructuring. It has publicly
committed itself to taking up its 56.5% share of the capital
issue, which according to the analyst, should be sufficient for
the Company to meet current agreements with creditor banks and
bond holders.

Madeco plans to use US$60 million of the capital increase to pay
off half of its short-term debt of US$120 million. The other half
will be paid off over seven years with three years' grace under
agreements reached with creditor banks.

If the capital increase is taken up completely, Madeco would use
the remaining US$30 million raised as working capital, according
to the analyst.

Madeco's financial situation has deteriorated due to the crisis
in Argentina and Brazil. The company hired investment bank
Salomon Smith Barney late last year to help it restructure its
US$325 million in debts. The debt consists of roughly US$100
million in long-term bonds, US$120 million in bank loans and
US$100 million related to Madeco's subsidiaries.

To see latest financial statements:
http://bankrupt.com/misc/Madeco.doc

CONTACT:  MADECO S.A.
          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          E-mail: mfl@madeco.cl
          Home Page: http://www.madeco.cl
          Contacts:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545
          E-mail: ir@madeco.cl

          SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller



===========
M E X I C O
===========

CINTRA: Delaying Airlines' Sale Once Again
------------------------------------------
Cintra confirmed it will delay for the second time the sale of
its two principal airlines Aeromexico and Mexicana.  The airlines
had been initially offered last year. The sale suspension was due
to the long and complicated process of the sell-off as well as
the unfavorable conditions of the current market, says El
Universal.

A source from the firm admitted, "It is a bad time to sell
because of the state the [air] industry is in after the attacks
in the United States."

Officials at the Transport and Communications Secretariat (SCT)
tentatively see the sale of the airlines in 2003, although a
specific date has not been named.

Cintra is under pressure by the law regulating the activities of
the Bank Savings Protection Institute, to unload the airlines
before 2004.

Delta and Continental have shown interest in Aeromexico, but
retracted due to the current crisis in the industry, says El
Universal. United Airlines had also eyed Mexicana.

"The U.S. airlines are the natural fit, but they are not in a
position to buy," says a source from Merrill Lynch, the agency
hired to oversee the sale.

The Transport and Communications Secretariat (SCT), on the other
hand, says nobody made an offer.  The SCT is still firming its
plans and assessing market conditions. It also considers the
present time still early for negotiations with possible buyers.

CONTACT:  CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          MERRILL LYNCH MEXICO
          Paseo de las Palmas No. 405
          Piso 8
          Col. Lomas de Chapultepec
          11000 Mexico City, Mexico
          Phone: 5255-5201-3200
          Fax: 5255-5201-3222

          AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          CONTACT:  MEXICANA DE AVIACION
          Adolfo Crespo, V.P. of Public Affairs
          Division of Mexicana Airlines, +1-210-491-9764


GRUPO BITAL: CNBV Shuns Rumors of Imminent Intervention
-------------------------------------------------------
The National Banking and Securities Commission (CNBV) denied
reports that Grupo Financiero Bital will be intervened, Notimex
reports. Patricio Bustamante Martinez, vice president of
Financial Organizations Supervision at the CNBV, dismissed the
rumors as false, and even confirmed the improvement in the bank's
capitalization program.

The Mexican bank needs more than US$550 million to fulfill the
capitalization rules to be applied in January 2003. One of its
capitalization processes according to Bustamante was a deal with
Dutch ING that will contribute US$200 million to Bital. The offer
will give ING 19.5% stake in the bank.

Britain's Hong Kong Shanghai Bank Corporation (HSBC Holding) has
also audited Bital for a possible bid, says CNBV.  It has until
August 30 to present an offer.

Auhorities believe there will be no conflict between HSBC and ING
as the two have different lines of business.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax: 57.21.26.26
          E-mail: ricaggs@bital.com.mx

          ING GROEP N.V.
          Strawinskylaan 2631
          1077 ZZ Amsterdam,
          The Netherlands
          Phone: +31-20-541-54-11
          Fax: +31-20-541-54-44
          Home Page: http://www.ing.com
          Contacts:
          Ewald Kist, Chairman
          Cees Maas, Chief Financial Officer

          HSBC HOLDING PLC
          10 Lower Thames St.
          London, EC3R 6Ae
          Phone: 44-20-7260-0500
          Home Page: http://www.hsbc.com
          Contact:
          Keith R.Whitson, CEO


GRUPO MEXICO: ASARCO Responds To Justice Department Action
----------------------------------------------------------
Today the U.S. Dept. of Justice filed in federal district court
in Tacoma, Wash., a motion to enjoin Asarco from selling its
interest in Southern Peru Copper Corp.  This action could have
the effect of derailing Asarco.s financial restructuring plans.
The company is surprised and very troubled by the government's
action.

Asarco has had continuing discussions with the Justice Dept. and
has been very clear with them about the sale of our Southern Peru
shares to Americas Mining Corp.  The Justice Dept. asked for
advanced notice of the transaction, which was granted by Asarco.
Asarco extended the closing of the sale so that it could further
discuss and address any concerns that the Dept. of Justice may
have with the transaction.
This is an arms-length transaction, which will compensate Asarco
at fair-market value.

Independent experts who fully understand the value of the
Southern Peru shares have validated the proposed selling price
and the Justice Department is fully aware of that fact.

Contrary to what the Justice Department has said, selling the
shares of Southern Peru is the best way for Asarco to meet its
future obligations and remain economically viable.  The shares
currently are committed as collateral for a $450 million loan
with a consortium of lenders that comes due this fall. By paying
off this loan with proceeds from the sale, Asarco will free up
significant cash each month that is now used for interest
payments on the debt.

The transaction will actually put Asarco in a much stronger
financial position and will enable it to better meet its
financial and environmental obligations going forward.  Asarco is
committed to fulfilling all obligations, as it has done in the
past, and is dismayed that the Justice Department's actions could
prevent it from doing that.

CONTACTS:  GRUPO MEXICO S.A. DE C.V
           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Mexico
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           http://www.gmexico.com
           Contacts:
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

           SOUTHERN PERU COPPER CORPORATION
           Ave. Caminos del Inca 171
           Urb. Chacarilla del Estanque
           Santiago de Surco
           Lima 33, Peru
           Tel: +51 1 372 1414
           Fax: +51 1 372 0238
           Home Page: http://www.southernperu.com
           Contacts:
           German Larrea Mota-Velasco, Chairman & CEO
           Oscar Gonzalez Rocha, President & Director General
           Daniel Tellechea Salido, VP - Finance

           ASARCO, INC.
           2575 E. Camelback Rd., Ste. 500
           Phoenix, AZ 85016
           Phone: 602-977-6500
           Fax: 602-977-6701
           Home Page: http://www.asarco.com
           Contacts:
           German Larea Mota-Velasco, Chairman & CEO
           Genaro Larrea Mota-Velasco, President
           Daniel Tellechea Salido, VP & CFO


TV AZTECA: Moody's Upgrades; Joins MSCI(R) Standard Index
---------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish-language television programming in
the world, announced Thursday that Moody's Investors Service
increased its credit rating to Ba3 from B1, and Azteca Holdings
current debt rating to B2 from B3. Additionally, TV Azteca noted
that it has been added to the list of 26 constituent stocks
comprising the restructured MSCI(R) Standard Index.

"TV Azteca's rating improvement and admission to the MSCI(R)
Standard Index is a true recognition of our solid operating
performance, strong presence in Mexico, and growing leverage of
our successful content," said Pedro Padilla, CEO of TV Azteca.
"We are delighted to see that management efforts to build a solid
capital structure and financial performance, as well as strong
progress in corporate governance, is translating into these very
positive rating increase."

"On the other hand, given the wide following of the MSCI(R)
indices, we believe our shares will now have more exposure to the
international investor community, further enhancing their
liquidity and significantly benefiting the company and its
shareholders," Mr. Padilla added. A service of Morgan Stanley
Capital International Inc., MSCI(R) indices are now among the
most frequently referenced investor guides with an estimated 80%
of mutual fund managers around the world employing it as an
important decision making tool and a benchmark for the
effectiveness of their investments.

Company Profile

TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks, Azteca 13 and Azteca 7, through more than
300 owned and operated local stations across the country. TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic;
Unefon, a Mexican mobile telephony operator focused on the mass
market; and Todito.com, an Internet portal for North American
Spanish speakers.

CONTACT:  TV Azteca, S.A. de C.V.
          Investor Relations: Bruno Rangel
          Tel.: +011-5255-3099-9167
          Email: jrangelk@tvazteca.com.mx

          Elric J. Martinez,
          The Dilenschneider Group, for TV Azteca, S.A. de C.V.
          Tel.: +1-212-922-0900
          Email: emartinez@dgi-nyc.com
          URL: http://www.tvazteca.com.mx



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Unions Seek Government Intervention; Request Audit
--------------------------------------------------------
The Trinidad and Tobago Airline Pilots Association (TTALPA),
along with the Aviation Communications and Allied Workers Union
(ACAWU) and Communications Transport and General Workers Union
(CATTU), are calling on the government to intervene and possibly
conduct an internal audit to examine BWIA's financial
performance.

In a report released by the Trinidad Guardian, Captain Simon
Kelshall, a member of TTALPA and head of its negotiating team
said the government should be considering a forensic audit of the
company to prevent another Enron-like crisis from occurring
locally.

"We don't have a clear line of evidence that says there is
another Enron. But on the other hand when there are a number of
things we are uncomfortable with, for instance we have heard in
the year 2000, the leases on the 737 fleet were not paid and that
the profit showed that year may have been partially a result of
that. Apparently the leases were consolidated into a loan that
went into 2001 and part of the problem we have been having ever
since then. Strategic engineering of accounts is the closest term
that can come to it. We don't know if this is true, but we've
heard it and we are uncomfortable with it," said Kelshall.

BWIA lost US$8.4 million in the first six months of this year
following a steep drop in travel as a result of the September 11
terrorist attacks in the United States. The airline's grim
situation was exacerbated by the on-going dispute between the
pilots and the management. Pilots have reportedly been taking
industrial action, which led to a loss of TT$8 million in revenue
since July to first four days of this month.

Pilots, however, have denied they have anything to do with the
delays and cancellations plaguing the airline, but said that bad
rostering and increased summer flight schedules have resulted in
too few pilots to fly BWIA aircraft.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           E-mail: mailto:mail@bwee.com
           Home Page: http://www.bwee.com/
           Contacts:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


BWIA: CEO Speaks Out to Calm Employees' Fears
---------------------------------------------
In an effort to reassure its employees, BWIA CEO Conrad Aleong
said that the planned restructuring of the Trinidad national
airline will focus on cost cutting and not employee retrenchment,
the Trinidad Guardian relates.

He admitted that the airline is in a financially grim position
but he expressed confidence that the airline will survive the
current turmoil in the industry and be around for a long time

"I want to assure you that it is difficult-financially grim. But
BWIA is going to be here forever as long as employees are
committed and I know they are committed so we feel very
confident."

He said even though they plan to restructure they hope to keep
the committed employees with the airline until good times return.

"Yes, we are going through some restructuring. You have to...when
you're having difficulty paying the bills in this environment.
You have to do something.

"But, the objective is not to reduce employees. The objective is
to lower costs. There may be some such possibility of labor
reduction but we are not looking at that. We are looking at ways
of restructuring the airline - streamlining it because we know
these things come to pass. We have faith in the Lord and these
things come to pass so that we will do our best to protect our
employees so when the good times come back they will be here to
enjoy them as well."




               ***********


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
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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