/raid1/www/Hosts/bankrupt/TCRLA_Public/030227.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, February 27, 2003, Vol. 4, Issue 41

                           Headlines


A N T I G U A   &   B A R B U D A

LIAT: Scrutinizes Potential BWIA Merger


A R G E N T I N A

APSA: 'CC' Ratings Withdrawn
ARGENTINE UTILITIES: Court Suspends Rate Hike Decree
BANCO RIO: Reports ARS1.11 Billion Loss For 2002
CENTRAL PUERTO: Records ARS246.7 Million Loss For 2002
DISCO: Management Downplays Irregular Accounting Reports
OIL COMPANIES: Economy Minister Pleased With New Offers
REPSOL YPF: Previews Income Statement, January To December 2002
TGS: Details Global Restructuring Process


B E R M U D A

GLOBAL CROSSING: Enters Argentine, Chilean LD Voice Markets
TYCO INTERNATIONAL: ISS Backs Shareholder Proposal
TYCO INTERNATIONAL: Omega Chief Slams Calls For US Return


B R A Z I L

CEMIG: Settles Portion of Current Obligations with MAE
COPEL: Public Ministry Initiating Tax Fraud Probe
ELETROPAULO METROPOLITANA: Gains More Time To Pay $48.5M Debt
KLABIN: 4Q02 Results Positive Despite Exchange Fluctuations
POWER COMPANIES: Await Concession Contract Renegotiations
TELEMAR: Growth Expenditures Likely to Mean 4Q02 Losses
USIMINAS: Court Revokes BRL3.5 Million Fine


C H I L E

ENAMI: Fitch Affirms F-C Rating; Downgrades L-C Rating to 'A+'
EMPRESAS IANSA: Fitch Cuts Ratings to 'BB'; Withdraws Ratings


C O L O M B I A

BELLSOUTH COLOMBIA: 2002 Net Loss Widens To COP404 Billion


J A M A I C A

AIR JAMAICA: Continues Talks With AAJ


M E X I C O

ALESTRA: Amends Financial Info Amid Exchange Offer
CFE: Seeks To Eliminate Annual 9% Federal Tax
GRUPO IUSACELL: 4Q02, Year End Results Show Turn Around Progress
GRUPO SIDEK: Shareholders To File Case In New York Court


T R I N I D A D   &   T O B A G O

CARONI LTD.: `Unfair' VSEP Offer Angers Daily-Paid Workers
CARONI LTD.: Maha Sabha Opposes HCU's Land Acquisition


V E N E Z U E L A

PDVSA: Venezuela Files Suit Against Striking Leaders


     - - - - - - - - - -


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

LIAT: Scrutinizes Potential BWIA Merger
---------------------------------------
Antigua-based airline LIAT is now actively considering a merger
with Trinidadian airline, BWIA, said LIAT chief executive Gary
Cullen on Thursday. A report by the Antigua Sun quoted Mr. Cullen
saying that the proposal is part of a longer-term strategy to
ensure the future viability of both carriers. The merger,
however, would be subject to the approval of the boards of both
airlines.

Mr. Cullen also said that he is working on a position paper on
the advantages of a LIAT/BWIA alliance. He added that a draft of
the paper would be forwarded to LIST chairman Wilbur Harrigan
before being submitted to BWIA chief Conrad Aleong for
consideration.

"Whether the alliance is a total merger, or whether it is a very
close functional co-operation is probably what will come out in
the discussion. But certainly I believe something along the lines
of having two separate operating entities and both retaining the
brand name BWIA and LIAT, but maybe a shared corporate body, like
a holding company, may be the type of model that will come up
with the right answer," said Mr. Cullen.

A group led by ken Gordon, and another sub-committee from the
Caricom, led by St. Vincent & the Grenadines Finance Minister
Maurice Edwards, are also reviewing a possible merger between the
two airlines.

LIAT needs $25 million in immediate financing to avoid having to
scale down its operations. Last year, the airline suffered losses
allegedly due to predatory pricing practices of competition
Caribbean Star.

CONTACT:  LIAT Corporate Headquarters
          V.C. Bird International Airport,
          P.O. Box 819,
          St. John's, Antigua West Indies
          Phone: 1 (268) 480-5600/1/2/3/4/5/6
          Fax: 1 (268) 480-5625
          Home Page: http://www.liatairline.com/
          Contacts:
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing

          British 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, CFO (Trinidad)



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

APSA: 'CC' Ratings Withdrawn
----------------------------
Standard & Poor's Ratings Services said Monday that it withdrew
its 'CC' local and foreign currency corporate credit ratings on
Alto Palermo S.A., at the company's request. The 'CC' local
currency senior unsecured debt rating was also withdrawn.

Alto Palermo is the largest shopping mall operator in Argentina.

ANALYSTS:  Mariano Ingaramo, Buenos Aires (54) 114-891-2124
           Marta Castelli, Buenos Aires (54) 114-891-2128

    ALTO PALERMO S.A. (APSA)
    476 Hipolito Yrigoyen
    Buenos Aires
    ARGENTINA
    Phone: +54 11 4344 4600
    Home Page: http://www.altopalermo.com.ar
    Contacts:
       Eduardo Sergio Elsztain, Chairman
       Aaron Gabriel Juejati, Vice Chairman
       Marcos Marcelo Mindlin, Vice Chairman


ARGENTINE UTILITIES: Court Suspends Rate Hike Decree
----------------------------------------------------
An Argentine court ruled that a decree allowing utility companies
in the country to increase their rates was unconstitutional,
Reuters reports, citing an unnamed source from the court.
President Eduardo Duhalde issued the original decree last month
to satisfy one of the International Monetary Fund's requirements
for aid.

"The court has issued a preventive ruling that suspends the
increases until there is a definitive ruling," said the court.

The government has five days to appeal the ruling, as a team from
the IMF is visiting the country to review fiscal targets and
discuss utility rates, said the report. Last month, the IMF
agreed to delay payments for three to five years on Argentina's
US$6.8 billion in debt due through August.

Utility companies, hard hit by a 70 percent devaluation in the
local currency, have been unable to raise rates since last year,
aside from last month's decree. Companies were hoping for a 30
percent hike, but the decree only provided for a 9 percent
increase in electricity rates, and 7 percent in natural gas
rates.

Major foreign firms operating in the Argentine telephone and
power utility sectors include Spain's Telefonica TEF.MC , Telecom
Italia TIT.MI , France Telecom FTE.PA , Electricite de France and
Britain's BG Group Plc BG.L .7


BANCO RIO: Reports ARS1.11 Billion Loss For 2002
------------------------------------------------
Argentina bank Banco Rio de la Plata posted a huge loss of
ARS1.11-billion (US$347 million) in 2002, reports Dow Jones.
Apparently, the bank still hasn't recovered from the devaluation
of the local peso and a punishing government debt default that
pushed Argentina's banking system on the edge of collapse for
most of the first half of 2002 due to a panic run on deposits.

The bank said its net worth stood at ARS1.225 billion at Dec. 31,
2002. Banco Rio is a wholly owned subsidiary of Spanish banking
group Banco Santander Central Hispano S.A.

CONTACTS:  BANCO RIO
           Bartolome Mitre 480
           1036 Buenos Aires, Argentina
           Phone: +54-14-341-1081-1580
           Fax: +54-14-341-1074-1084
           Home Page: http://www.bancorio.com.ar
           Contacts:
           Ana Patricia B. S. de Sautuola y O'Shea, Chairman
           Jose L. E. Cristofani, Exec. Vice Chairman and CEO
           Pablo Caride, Corporate Finance


CENTRAL PUERTO: Records ARS246.7 Million Loss For 2002
------------------------------------------------------
Argentine thermo generator Central Puerto had a full year 2002
net loss of ARS246.7 million, Business News Americas reports,
citing a company statement to the Buenos Aires bourse. The
statement also disclosed the Company's year-end net equity of
ARS551.2 million.

Central Puerto is 63.9% owned by France's TotalFinaElf, and
together with its subsidiaries has 2,165MW installed capacity,
accounting for 10% of Argentina's thermo generation.

CONTACTS:  CENTRAL PUERTO
           Jacques Chambert Loir, CEO
           2701 Avenida Tomas A Edison
           Buenos Aires, Argentina
           Phone   +54 1 317 5074
           Home Page http://www.centralpuerto.com


DISCO: Management Downplays Irregular Accounting Reports
--------------------------------------------------------
Executives at Disco S.A. did their best to put a positive spin on
late-breaking news of questionable accounting procedures at the
Argentine Company, says Dow Jones. According to Disco President
Eduardo Orteu, in a statement delivered to the Buenos Aires stock
exchange Tuesday, allegations of questionable accounting
procedures at Disco are "unfounded and completely exaggerated."

The Company said that it has behaved according to all legal and
regulatory requirements; that its published financial results
have been audited without qualification and have been approved by
regulators. It also affirmed that its 2002 results are being
prepared according to the same principles.

Disco's Netherlands-based parent Royal Ahold recently admitted
that it has been investigating, through forensic accountants, the
legality of certain transactions and the accounting treatment at
the Argentine subsidiary.

Disco, which is yet to publish its 2002 results, is expected to
report a significant deterioration in its operating performance,
due to the severe financial crisis that beset Argentina last
year.

In November, the unit reported a net loss of ARS1.8 billion
($1=ARS3.155) for the nine months ending Sept. 30, 2002, compared
with a net loss of ARS28.5 million for the same period in 2001.

Ahold took complete control of Disco International Holdings in
August after buying out the stake of its former joint venture
partner, Velox Retail Holdings.

CONTACT:  DISCO S.A.
          Larrea 847, Piso 1
          1117 Buenos Aires, Argentina
          Phone: +54-11-4964-8000
          Fax: +54-11-4964-8076
          Web site: http://www.disco.com.ar


OIL COMPANIES: Economy Minister Pleased With New Offers
-------------------------------------------------------
Argentine Economy Minister Roberto Lavagna is now "happier" with
the new offers from oil companies in the country, after
threatening to impose punitive taxes and refusing to renegotiate
an agreement designed to keep domestic oil prices down, Dow Jones
indicates.

After issues in the Middle East pushed oil prices beyond the
US$35 per barrel level, the agreement expired on Friday. The
agreement requires oil companies in Argentina to sell oil at
US$28.5 per barrel, but will end if world oil prices go beyond
US$35 for 10 days. In return, oil companies are allowed to sell
oil at US$28.5, even if world oil prices go below that price.

Oil companies reportedly asked for lower tax rates in return for
keeping domestic prices steady. But Mr. Lavagna's threat of
placing a 100% tax on any "extraordinary" export profits oil
companies make if they were to raise the domestic price above $30
a barrel. Reports on Tuesday said that Mr, Lavagna's decision
forced oil companies to draw up new proposals in hopes of
creating a new accord with the government.

Currently, oil companies are required to pay a 20 percent export
tax, and retain at least 30 percent of their export revenue in
Argentina. The companies are proposing that the 20 percent tax be
lowered on if international oil price drops below US$22 per
barrel.


REPSOL YPF: Previews Income Statement, January To December 2002
---------------------------------------------------------------
- Financial debt reduced by more than Eu9 billion (55%), bringing
the 2005 target forward by more than three years
- Cash flow was Eu4,823 million
- Production surpassed 1 million barrels per day, up 6% in like-
for-like terms

At Eu 1,952 million, Repsol YPF net reported income for the year
was 90.4% higher than in 2001.  Operating income was Eu3,323
million while cash flow was Eu4,823. It should be noted, however,
that in 2001, Gas Natural SDG was fully consolidated while, since
the end of May 2002, only 24% is included in the scope of
consolidation, and, hence, cash flow decreased by 10 %.

These results were achieved in a volatile international scenario
thanks to the company's efficient management focused on financial
prudence and the careful handling of the crisis in Argentina.

Reference oil prices gradually climbed in 2002, because of OPEC
supply restrictions, fears of an armed conflict and the crisis in
Venezuela.  Brent crude prices were at 19.5  $/bbl in the
beginning of the year and closed the year at 28.7 $/bbl, with the
average price at 25.0 $/bbl vs. 24.4 $/bbl in 2001.
International refining margins were the lowest in recent years
while commercial margins decreased as a consequence of  a
reduction in those in Argentina.  In chemicals, average
international margins were similar to those in the previous year,
with an upward trend evident from January to September, to fall
back in December.  Lastly, although the results in the gas and
power business area were affected by the significant changes in
the scope of consolidation and the economic crisis in Argentina.

ARGENTINA AND BRAZIL

Although the economic situation in Argentina had a negative
impact on the business areas of the company, this has gradually
improved over the year, and has continued to show clear signs of
an economic upturn and normalisation in the oil and gas
industry.  The risks for the sector at the beginning of the year
have tended to disappear, while the restrictions currently in
place are being lifted. The peso/dollar exchange rate closed the
year at 3.32 vs. 3.69 at 30 September 2002.  Consequently, the
company made a Eu1,102 write-down on its assets in 2002,
comparatively lower than the Eu1,450 million for 2001.
In Brazil, the business environment tended to improve towards the
end of the year after the smooth electoral transition.  This has
redounded in an improvement in the country risk index, interest
rates and an appreciation in the real/dollar exchange rate.

INVESTMENTS
Investments in 2002 totaled Eu2,673 million, 40% less than the
Eu4,456 million invested in 2001 thanks to a prudent investment
approach and the strict criteria implemented by the company; the
change in the consolidation method for Gas Natural; and lower
costs in Argentinean investments because of the peso depreciation
against the dollar.

DIVESTMENTS
In 2002, divestments reached E2,824 million, mainly from the sale
of a 23% stake in Gas Natural SDG, which generated Eu1,097
million in capital gains. The Company was also involved in other
significant deals, including divestments in CLH, and Indonesia,
and sales carried out by Gas Natural SDG on its affiliates Gas
Natural Mexico and Enagas. These capital gains generated Eu648
million in extraordinary income after the Company, pursuant to
stringent financial criteria, recorded provisions. The average
corporate income tax rate was significantly lower than in the
previous year.

DEBT
Repsol YPF financial debt at 31 December 2002 was Eu7,472
million, Eu9,083 million less than at the close of 2001.  In
relative terms, Repsol YPF reduced its debt by 54.9%, with a
debt-to-capitalization ratio of 29.2% as against 42.9% at year-
end 2001.

This reduction was possible thanks to the strong free cash flow
generation; the impact of the euro appreciation against the
dollar; disposals; and the partial de-consolidation of Gas
Natural SDG debt. The company continued to apply its debt
reduction policy in the fourth quarter and succeeded in cutting
debt by Eu1,267 million.
Thanks to the sharp debt reduction in 2002, the Company's
financial charges declined 42%, with financial costs falling from
Eu1,352 mn to Eu786 million.

COST SAVINGS
The Company made progress in its cost saving program, and has
already achieved 90% of its 2005 target, which implies Eu550
million over the total Eu 600 million target for the whole
period.  This amount does not include the significant savings
obtained from the peso devaluation.
Results by business areas:

EXPLORATION & PRODUCTION
Operating income in the Exploration & Production business area
was Eu1,785 million, 30.2% less than in 2001 as a result of the
sale of Indonesian assets, and because, although reference crude
prices were higher, liquids realization prices fell ($20.7 bbl in
2002 vs. $21.0/bbl in 2001) mainly owing to the 20% tax retention
applied to exports in Argentina and 50% lower gas selling prices.

The company's average production was 1,000,300 barrels of oil
equivalent per day (boepd). On equivalent terms (with the same
assets as in 2002), average daily production for the year rose 6%
against 2001, offsetting the loss of production from the assets
divested in Indonesia.

Thanks to the large discoveries made in Libya, Bolivia,
Argentina, and Trinidad & Tobago in 2002, net proved oil and gas
reserves at 31 December 2002 dropped only from 5,606 million
boepd to 5,261 million boepd, after absorbing the asset disposals
in Indonesia (300 millions boepd in reserves) and the 2002
production (365 million boepd). In 2003, the situation has
improved substantially, as Repsol YPF has exercised its purchase
option on reserves in Trinidad & Tobago, thus boosting the
Company's reserves by 463 million boepd.

Costs improved significantly over the year.  The lifting cost was
42.5% lower, from $2.57 to $1.48 per boe.  The finding cost
remained among the best in the industry, at a three-year average
(2000-2002) of $1/boe.

Eu1,081 million were invested in exploration and production,
44.6% less than in 2001.  These investments were mainly spent on
development drilling activities, secondary oil recovery projects
(Argentina, Libya, and Bolivia), the construction of gas
processing and treatment plants (Planta de El Port˘n, Argentina),
and gas (Transierra, Bolivia) and oil (OCP, Ecuador) pipelines.

REFINING & MARKETING
At Eu854 million, operating income for the year in Refining &
Marketing activities fell 39.3% year-on-year, mainly because of
the erosion in international refining margins, which were at
their lowest for recent years. The Company's refining margin
indicator fell approximately 50%, from $3.14/bbl in 2001 to
$1.55/bbl in 2002.

Unitary marketing margins in Spain remained at levels similar to
2001, and fell in Argentina because of the delay in passing the
devaluation impact on to price.  The non-consolidation of the
operating results from CLH activities in 2002 also had an impact
on these margins. Among the most positive salient factors are the
significant costs savings achieved as a result of the devaluation
of the Argentinean peso.

Total oil product sales increased 0.8% to more than 50 million
tons.  In Spain, with sales of 30.7 million tons, sales to our
own network rose 1.2%, and showed a sharp 23.2% rise in the
consumption of fuel oil for power generation.  In Argentina, with
total sales of 12.4 million tons, Repsol YPF gasoline and gas oil
sales dropped only 0.9% within the context of a 9.1% market
withdrawal.

LPG sales in Europe fell 3% year-on-year, while sales in Spain
were 4% lower because of competition from other energies (mainly
power and natural gas), increasing competition in the sector, and
mild weather throughout the year.  In contrast, LPG sales in
Latin America jumped 6.3% relative to 2001, owing to the
consolidation of twelve months' business in Bolivia.

Refining & marketing investments, at Eu584 million, were 33.4%
lower than the year before, because of the conservative
investment policy, particularly in Latin America; the termination
of large refining projects (particularly the hydrocracker at the
Tarragona refinery which came on stream in mid-2002); and
reaching the 29% targeted percentage of company owned and managed
service stations in the Repsol YPF commercial network, three
years ahead of scheduled.

CHEMICALS
Chemicals operating income for 2002 was Eu97 million as opposed
to a loss of Eu55 million in 2001.  This increase was the result
of a higher sales volume and improved sales mix; cost savings;
and the positive effect of the peso devaluation.

Export sales reached a record high of 3.5 million tons in 2002,
4.5% higher than in 2001, thanks to the consolidation of
polypropylene oxide/styrene monomer and derivatives production in
Tarragona, and Urea in Bahia Blanca (Argentina), and the start-up
of the methanol plant in Plaza Huincul (Argentina).

Investment for the whole year was Eu89 million, 59.2% down on the
year before, spent mainly on increasing capacity and the
upgrading of existing units.

GAS & POWER
In 2002, operating income from the Repsol YPF Gas & Power area
was Eu633 million, 40.4% lower than the Eu1,062 million recorded
in 2001.  This reduction was mostly due to partial de-
consolidation Gas Natural Group, the deconsolidation of Enagas,
the changes in the sector's remuneration model, and the crisis in
Argentina.

Investment in gas & power in 2002 was Eu694 million versus
Eu1,265 million in 2001, with a significant part of this
reduction attributable to the change in the consolidation
method.  Eu156 million of this total was spent on increasing
shareholdings in Brazil and Colombia.

CONTACT: REPSOL YPF SA
         Head Office
         Paseo de la Castellana 278
         28046 Madrid
         Spain
         Phone:  +34 91 348 81 00
         Fax:  +34 91 348 28 21
         Telex:  48162 RESOLE
         Web Site:  http://www.repsol.com
         Contact:
         Alfonso Cortina de Alcocer, Chairman
         Jose Vilarasu Salat, Vice Chairman
         Antonio Hernandez, Vice Chairman


TGS: Details Global Restructuring Process
-----------------------------------------
Transportadora de Gas del Sur S.A. (TGS; Local Currency Rating:
CC/Negative/--; Foreign Currency Rating: SD/--/--) announced
Monday its intention of undertaking a global debt restructuring
process for a substantial part of its financial obligations given
that they will not be able to serve those under the current
economic conditions. The mandatory pesification of the company's
tariffs without allowing for any compensating adjustments,
combined with the strong peso devaluation, created a significant
mismatch between a mostly peso-denominated revenue base and a
significant dollar-denominated debt profile.

Since, according to Standard & Poor's Ratings Services'
expectations, under the above-mentioned scenario, TGS would not
be able to generate enough cash to serve the significant 2003
maturities, the announcement has no impact on the company's
ratings and outlook given that they already reflect the high risk
of default. Standard & Poor's will closely monitor further
announcements on the restructuring process in order to take the
appropriate rating actions.

ANALYSTS:  Luciano Gremone, Buenos Aires (54) 11-4891-2143
           Pablo Lutereau, Buenos Aires (54) 114-891-2125



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

GLOBAL CROSSING: Enters Argentine, Chilean LD Voice Markets
-----------------------------------------------------------
Global Crossing announced Tuesday it has penetrated the corporate
long distance voice services markets in Argentina and Chile with
the launch of Direct Dial Services. Direct Dial Services deliver
high-quality international long distance voice connections to 240
countries over Global Crossing's ultra high-bandwidth, secure
fiber optic network. The service enables businesses to manage
costs across multiple countries by utilizing "any distance"
pricing - users pay a low price based on call destination, not
distance, with a single bill and a single rate for international
calls. The service also permits companies to upgrade or "future-
proof" their communications by allowing them to move to the next
generation of IP-based communications in the future.

"Now Argentine and Chilean businesses can take advantage of
Global Crossing's high-quality, secure, global voice solution and
connect directly to 240 countries over our advanced global
network, " commented Pablo Mlikota, Global Crossing's vice
president of corporate sales for Latin America and southeastern
United States. "This is another example of our commitment to
Latin America -- and to meeting the communications needs of
businesses around the globe today and into the future."

Direct Dial Services are currently available to businesses in
Argentina, Canada, Chile, Belgium, Denmark, France, Germany,
Ireland, Italy, Norway, Spain, Sweden, Switzerland, the
Netherlands, the United Kingdom and the United States. National
(interstate/intrastate) calling are also available to businesses
in Canada, the United States and the United Kingdom.

Direct Dial Services' unique "any distance" pricing allows users
to pay the same low price per minute to call a given country from
any one of the countries in which we provide call origination
services. For example, a call to Japan would be the same per
minute rate regardless of the country from which the call
originated. "Any distance" pricing permits global companies to
manage their telecom costs with a stable, predictable and
competitive pricing structure -- saving money and telecom
management expenditures.

Beyond global pricing, the product is fully global in many other
respects, from 24x7 global customer care in multiple languages to
ordering, provisioning, billing detail and single-point-of-
contact global account management. As such, Direct Dial Services
are designed to give customers the identical experience in all
regions of the world, better serving the needs of global
enterprise customers. Voice traffic is routed over Global
Crossing's worldwide fiber optic network using either packet-
based Voice over Internet Protocol (VoIP) or conventional Time
Division Multiplexing (TDM) technology. Both platforms are fully
interoperable. By managing a VoIP platform over its own network,
Global Crossing delivers a cost-effective, reliable solution
unaffected by public Internet delays and congestion. This premier
VoIP network also provides users with quality comparable to that
of the traditional Time Division Multiplexing (TDM)
infrastructure. The VoIP platform's multi-layered architecture
makes it an ideal choice for IP-based applications, built to
satisfy current and future communications needs.

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

On January 28, 2002, Global Crossing Ltd. and certain of its
subsidiaries (excluding Asia Global Crossing and its
subsidiaries) commenced Chapter 11 cases in the United States
Bankruptcy Court for the Southern District of New York
(Bankruptcy Court) and coordinated proceedings in the Supreme
Court of Bermuda (Bermuda Court). On the same date, the Bermuda
Court granted an order appointing joint provisional liquidators
with the power to oversee the continuation and reorganization of
the Bermuda-incorporated companies' businesses under the control
of their boards of directors and under the supervision of the
Bankruptcy Court and the Bermuda Court. Additional Global
Crossing subsidiaries commenced Chapter 11 cases on April 23,
August 4 and August 30, 2002, with the Bermuda incorporated
subsidiaries filing coordinated insolvency proceedings in the
Bermuda Court. The administration of all the cases filed
subsequent to Global Crossing's initial filing on January 28,
2002 has been consolidated with that of the cases commenced on
January 28, 2002. Global Crossing's Plan of Reorganization, which
was confirmed by the Bankruptcy Court on December 26, 2002, does
not include a capital structure in which existing common or
preferred equity will retain any value. Global Crossing expects
to emerge from bankruptcy in the first half of 2003.

On November 18, 2002, Asia Global Crossing Ltd. and its
subsidiary, Asia Global Crossing Development Co., commenced
Chapter 11 cases in the United States Bankruptcy Court for the
Southern District of New York and coordinated proceedings in the
Supreme Court of Bermuda. Asia Global Crossing's bankruptcy
proceedings are being administered separately and are not being
consolidated with Global Crossing's proceedings. Asia Global
Crossing Ltd. is a majority-owned subsidiary of Global Crossing.
However, Asia Global Crossing has announced that no recovery is
expected for Asia Global Crossing's shareholders.

CONTACT:  GLOBAL CROSSING
          Press Contacts

          Kendra Langlie
          + 1 305-808-5912
          kendra.langlie@globalcrossing.com

          Analysts/Investors Contact
          Ken Simril
          +1 310-385-3838
          investors@globalcrossing.com


TYCO INTERNATIONAL: ISS Backs Shareholder Proposal
--------------------------------------------------
Major institutional investors including public pension funds,
union funds, state treasurers and others applauded on Tuesday the
Institutional Shareholder Services (ISS) decision in favor of a
shareholder proposal urging reincorporation of Bermuda-based Tyco
back to the United States. ISS found Tyco has failed to make its
case for locating in an off-shore tax haven.

"Shareholders lose a significant level of accountability when
American companies reincorporate from the United States to
Bermuda and other offshore havens," said American Federation of
State, County and Municipal Employees (AFSCME) President Gerald
W. McEntee. "The ISS agrees that for the new Tyco management and
board to reinvent themselves, coming back to the U.S. is a
necessary action."

ISS said its support for the resolution in conjunction with
Tyco's annual meeting March 6 in Bermuda "is a reflection of our
disappointment in the board's failure to properly assess this
very important issue on shareholders' behalf. By recommending
that shareholders support the reincorporation, ISS is placing
Tyco's newly constructed board on notice to conduct a thorough
evaluation of reincorporation to Delaware."

"ISS couldn't have gotten it more right," said Sean Harrigan,
President of the California Public Employees' Retirement System.
"With its past history, Tyco cannot afford to further erode
investor confidence. Everyone should tell Tyco: Come Home."

Jack Ehnes, Chief Executive Officer, California State Teachers'
Retirement System (CalSTRS) buttressed the ISS findings:
"California's educators expect accountability from their pension
fund and we expect it from the companies we invest in," he said.
"The reincorporation resolution supported by ISS calls for Tyco
to step up and give us investors the accountability we need."

"The ISS recommendation is an important, positive step in the
shareholder fight to end the sham corporate relocations that are
undermining the confidence of millions of Americans in the
financial marketplace, at enormous cost to families, pensioners
and taxpayers," said California Treasurer Phil Angelides, who as
a member of the CalPERS board first urged the nation's largest
pension fund last year to take an active role in ending the
deception of corporate expatriation.

"Stanley Works finally heard the voice of shareholders last year
and backed away from plans to reincorporate off-shore. Companies
must no longer turn a deaf ear to this issue, and the ISS
decision adds an important voice to the growing chorus," added
Connecticut State Treasurer Denise L. Nappier. "Shareholders
rights are at risk when companies incorporate offshore, and
potential changes in tax law could reduce even further the
perceived advantages of overseas incorporation."

ISS said it was unable to verify the economic benefits that Tyco
claimed as the foundation for its move to Bermuda in 1997.
"Because the company is the only party who is able to provide the
details of this information, ISS believes that the burden falls
on Tyco to provide shareholders with an in-depth analysis of the
previous issues so that shareholders have the proper tools to
make an informed decision," said ISS, the leading research
provider for institutional investors.

"ISS contacted the company directly numerous times requesting
additional information about the economic benefits, which the
company declined to provide," ISS continued. "ISS is concerned at
the absence of this critical information, which is an essential
part of the reincorporation discussion."

The AFSCME Employees Pension Plan is sponsor of the shareholder
resolution at Tyco. Shareholders will decide the issue at Tyco's
annual meeting in Bermuda on March 6. AFSCME, public pension
plans and union plans have submitted similar proposals at
McDermott International (NYSE: MDR), Ingersoll-Rand Co. Ltd.
(NYSE: IR), Nabors Industries (AMEX: NBR), and Cooper Industries
Ltd. (AMEX: NBR).

For more information on Come Home to America, please visit
www.calpers-governance.org. For more information about the ISS
decision, contact any of the following:

American Federation of State County and Municipal Employees

Cheryl Kelly (202) 429-1145 ckelly@afscme.org

California Public Employees' Retirement System

Brad Pacheco (916) 326-3991 brad_pacheco@calpers.ca.gov

California State Teachers' Retirement System

Sherry Reser (916) 229-3258 Sreser@CalSTRS.ca.gov

Connecticut State Treasurer's Office

Bernard Kavaler (860) 702-3277 Bernard.Kavaler@po.state.ct.us

California State Treasurer's Office

Mitchell Benson (916) 654-2995 Mbenson@treasurer.ca.gov


TYCO INTERNATIONAL: Omega Chief Slams Calls For US Return
---------------------------------------------------------
Hedge fund manager Leon Cooperman criticized efforts to pressure
Tyco International, Ltd. to return its corporate address to the
United States, saying that it could jeopardize the company's
health. Reuters News report that Tyco's taxes would rise and cut
into its profits.

Mr. Cooperman, the chairman of Omega Advisors Inc., called that
initiative, "ill-advised" and "possibly ill-informed".

The California Public Employees' Retirement System (CalPERS), the
Institutional Shareholder Services (ISS) and others have been
seeking the company to return its base to the United States.
Last week, CalPERS issued a "shareholder alert", and asked Tyco
shareholders to vote for a resolution that would re-establish
Tyco in the United States, on the annual shareholders meeting on
March 6. CalPERS also said the shareholder incorporations weaken
shareholder protections.

Mr. Cooperman also pointed out that his company significantly
more Tyco shares that CalPERS. Omega Advisors own over 6 million
shares in Tyco, while CalPERS has about 1.5 million.

However, the report also notes that corporate America ad Wall
Street generally listens to CalPERS, as a leading corporate
activist.

CONTACT: TYCO INTERNATIONAL LTD.
         Corporate Office
         The Zurich Centre, Second Floor
         90 Pitts Bay Road
         Pembroke HM 08, Bermuda
         Phone: 441-292-8674
         Home Page: http://www.tyco.com
         Contacts:
         Gary Holmes (Media)
         Phone: +1-212-424-1314
                 or
         Kathy Manning (Investors)
         Phone: +1-603-778-9700



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

CEMIG: Settles Portion of Current Obligations with MAE
------------------------------------------------------
Companhia Energetica de Minas Gerais - CEMIG (NYSE: CIG, BOVESPA:
CMIG3, CMIG4 and LATIBEX: XCMIG) one of Brazil's largest energy
companies, announces the settlement, on February 18, 2003, of 50%
of CEMIG's outstanding obligations relating to electricity
purchase transactions effected on the Mercado de Atacado de
Energia (the Brazilian wholesale electricity market, or MAE)
during the period of mandatory electricity rationing in Brazil.
In connection with this settlement, CEMIG disbursed
R$335,481,649.19 to the MAE agents. This amount was based on
transaction data provided by the MAE.

The financial resources required for this settlement were
obtained through a loan agreement dated February 7, 2003 between
Banco Nacional de Desenvolvimento Economico e Social (the
Brazilian National Bank for Economic and Social Development, or
BNDES) and CEMIG. This loan was made in accordance with the
provisions of the General Agreement of the Electricity Sector,
which was entered into between the Agencia Nacional de Energia
Eletrica (the Brazilian federal energy regulatory agency) and the
Brazilian electric utilities affected by the electricity
rationing program.

CEMIG is required to settle the remaining amounts due to the MAE
upon the completion of an audit of transaction data currently
being performed by the MAE. This audit may result in the
recalculation of the transaction data figures that have
previously been provided to CEMIG by the MAE. Under the General
Agreement of the Electricity Sector, BNDES must provide
additional financing in connection with such additional
settlement.

Certain statements and assumptions contained herein are forward-
looking statements based on management's current views and
assumptions and involve known and unknown risks and
uncertainties. Actual results could differ materially from those
expressed or implied in such statements.

CONTACT:  Companhia Energetica de Minas Gerais
          Luiz Fernando Rolla, Investor Relations
          Tel: +55-31-3299-3930
          Fax: +55-31-3299-3933
          Email: lrolla@cemig.com.br

          The Anne McBride Company
          Vicky Osorio
          Tel: +1-212-983-1702
          Fax: +1-212-983-1736
          vicky@annemcbride.com


COPEL: Public Ministry Initiating Tax Fraud Probe
-------------------------------------------------
Brazil's public ministry is launching an investigation into the
alleged tax frauds at state power utility Copel, reports Business
News Americas. According to a report recently submitted by the
Parana state government to the state public ministry, the fraud
is related to credits on ICMS sales taxes.

The fraud charges involve Copel's purchase of BRL60 million in
credits from local company Oleos Vegetais do Parana (Olvepar),
which had already been declared bankrupt.

Parana state governor Roberto Requiao said there are indications
that former Copel chairman Ingo Hubert, who was also state
finance secretary, knew of the operations. Requiao also said he
had reported the accusations to former governor Jaime Lerner, of
the Liberal Front party (PFL), but Lerner had done nothing to
stop them.

Representatives from Parana's state legislature will also launch
their own investigation into Copel's operations.

CONTACT:  COPEL (in Brazil)
          Othon Mader Ribas
          Tel. 011-5541-222-2027
          Email: othon@copel.com

          Solange Maueler
          Tel. 011-5541-331-4359
          Email: solange@copel.com

          (New York)
          Richard Huber
          Tel. 212-807-5026
          Email: richard.huber@tfn.com

          Isabel Vieira
          Tel. 212-807-5110
          Email: isabel.vieira@tfn.com


ELETROPAULO METROPOLITANA: Gains More Time To Pay $48.5M Debt
-------------------------------------------------------------
Brazilian power company Eletropaulo Metropolitana, a unit of
U.S.-energy giant AES Corp., gained more time to pay BRL175
million ($48.5 million) in debentures to creditors. According to
Reuters, the debt comes due on April 1 but creditors agreed to
give Eletropaulo 18 more months to make the payment. Eletropaulo,
though, will have to deal with a higher interest of 14.5% plus
the IGP-M inflation index from 12.20 percent, a source close to
the Company said.

The deal was a small victory for Eletropaulo, which defaulted on
a US$85-million payment to Brazil's National Development Bank
(BNDES) in January. The Company is facing a US$329-million debt
payment this Friday to BNDES. If it fails to meet the payment,
investors fear that the government could renationalize the
Company.

BNDES holds about US$1.2 billion in debt from Eletropaulo. If the
development bank and the utility can't agree on how to roll over
this Friday's payment, BNDES -- and by extension, the government
-- has the right to take control of Eletropaulo, in essence, to
renationalize it.

"Foreign investors are watching this, and they're watching it
closely," David Hurd, head of Latin American utilities research
at Deutsche Bank said. "It has implications all the way through,
not only on the electricity side, but in any other sectors as
well."

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations

          AES Corp., Arlington
          Kenneth R. Woodcock, 703/522-1315
          Web site www.aes.com
          Investor relations: investing@aes.com


KLABIN: 4Q02 Results Positive Despite Exchange Fluctuations
-----------------------------------------------------------
Fourth Quarter Highlights:

- Sales volume reached 491 thousand tons, with exports accounting
for 207 thousand tons.

- Net revenue totaled R$ 899 million.

- Accumulated gross profit amounted to R$ 450 million, with a 50%
margin.

- Cash generation reached R$ 366 million, with an EBITDA margin
of 41%.

- Net profit of R$ 401 million.

The figures reported by Klabin in the last quarter of 2002 for
production, sales and cash generation evince a rising trend in
its operating results. Net revenue rose, reflecting an
appropriate management of the Company's product mix, productivity
gains and its reestablishment of margins.

Without the adverse effect of exchange variations in 4Q02, its
entire operational performance was reflected in a net profit of
R$ 401 million.

Cash generation grew 34% to R$ 979 million, with an EBITDA margin
of 35%. However, a currency devaluation of 52% in 2002 Klabin
posted a net loss of R$ 208 million over the period. Daily traded
volume R$ 400,000

ECONOMIC AND FINANCIAL PERFORMANCE

Klabin's superior economic and financial performance in 2002 was
primarily due to operational improvements, higher exports and a
recovery of margins. However, 2002 results were adversely
affected by exchange variations and the financial cost of debt.

Net Revenue and Sales Volume

Net revenue grew 33% in 4Q02 to R$ 899 million. Over the year, it
totaled R$ 2,814 million, up 16% from 2001. This increase can be
attributed to two factors, namely: higher export revenues (31%
growth in Brazilian reais) due to an increase in export volumes
coupled with a currency depreciation, and more favorable prices
in the domestic market in the corrugated boxes, multiwall bags
and cardboards segments.

Sales volume, excluding wood, increased 3% to 491 thousand tons
in 4Q02, totaling 1,863 thousand tons in 2002, up 4% from 2001,
with a significant contribution from packaging paper sales.

Operating Result

Gross profit increased 92% in 4Q02 to R$ 450 million, with a
gross margin of 50% (35% in 4Q01). In 2002, it totaled R$ 1,265
million, up 29% from 2001, with a gross margin of 45% as compared
to 40% in 2001.

This improvement in gross margin results from a strict control
over the cost of products sold (a nominal growth of 7% in 2002),
a price recovery in the domestic market and an increase in export
revenues (in reais).

Operating result before net financial expenses (EBIT) totaled R$
279 million in 4Q02, with a margin of 31%. Accumulated EBIT in
2002 amounted to R$ 651 million, representing a 37% growth in
relation to the same period in the previous year, with an
operating margin of 23% (20% in 2001).

The higher sales volume shipped to the export market (41% in 2002
versus 38% in 2001), increased the US dollar denominated export
freight costs up to R$ 233 million (R$ 174 million in 2001).

Operating margins were also affected by the amortization of
goodwill related to Igaras and Klamasa in 2002, namely R$ 54
million against R$ 27 million in 2001. Goodwill amortization
began in July 2001.

EBITDA

Confirming Klabin's operational improvements, EBITDA hit a record
level of R$ 366 million in 4Q02 and R$ 979 million over the year,
34% higher than the figure reported in 2001.

EBITDA margin reached 41% in 4Q02 and 35% in 2002 (30% in 2001),
rebounding to the Company's historical levels. This increase in
operating cash generation can be explained by: higher revenues on
account of increased volumes and more favorable prices, and
greater efficiency in cost management.

Financial Result and Indebtedness

A stronger real (up 9%) in 4Q02 generated positive net exchange
variations in the amount of R$ 108 million, thus benefiting the
Company's quarterly result with R$ 8 million in net financial
revenues. Nevertheless, the 52% currency evaluation observed in
2002 represented a net exchange variation of R$ 581 million (60%
of total financial expenses), resulting in net financial expenses
worth R$ 967 million in 2002.

Gross debt rose from R$ 2,526 million in December 2001 to R$
2,941 million in December 2002. Forty-five percent (45%) of this
amount refers to long-term debts with terms to maturity extending
to the year 2009. Net debt in foreign currencies accounts for 34%
of the Company's total indebtedness, 68% of which refer to trade
finance.

The last quarter of 2002 ended with a net debt of R$ 2,821
million, 71% of total capitalization (64% in 4Q01).

Gross debt in foreign currency dropped 62% from US$ 758 million
in December 2001 to US$ 287 million in December 2002, US$ 177
million of which are protected by hedge operations.

Klabin accomplished an important step of its capital
restructuring program with the issue of debentures totaling R$
1,036 million in December 2002. These were issued in two series
worth R$ 472 million and R$ 564 million, respectively. By doing
so, the Company reduced its debt in foreign currency from 70% to
34% and, therefore, its exposure to currency fluctuations. Total
net debt converted into U.S. dollars amounted to R$ 798 million
at the end of 2002, a decrease of US$ 261 million.

Net Result

Thanks to a good operational performance and favorable effects of
currency variations on debt, Klabin obtained a net profit of R$
401 million in 4Q02. However, this amount was not sufficient to
reverse an accumulated loss of R$ 208 million in 2002.

BUSINESS PERFORMANCE

Packaging paper
Packaging paper sales grew 6% in 4Q02 to 172 thousand tons, while
net revenue jumped 49% to R$ 273 million. The total amount of
packaging paper sold in 2002 was 617 thousand tons, up 12% from
552 thousand tons in 2001. Net revenue rose 32% to R$ 799 million
when compared to R$ 604 million in the previous year. The
installation of a third coater in machine 7 at Monte Alegre (PR)
was completed in July, and enhanced the quality of cardboard
products, particularly with regard to their printability. In
addition to fulfilling the increasingly demanding requirements of
the domestic market, this improvement will enable the Company to
expand its exports of cardboard products. Export volumes amounted
to 378 thousand tons in 2002, with a 17% increase in relation to
2001 (322 thousand tons). Net revenue from exports grew 44%,
totaling R$ 458 million (R$ 318 million in 2001), favored by
higher export volume and a weaker real throughout the period.

Corrugated boxes
Corrugated boxes sales dropped 7% to 116 thousand tons in 4Q02,
while net revenue registered a 45% increase to R$ 212 million.
Sales volume amounted to 493 thousand tons in 2002, down 3% from
510 thousand tons in 2001. On the other hand, net revenue
advanced 15% over the same period to R$ 672 million (R$ 586
million in 2001). The increase in net revenue was due to a price
adjustment in the domestic market in the second-half of 2002.

The Company's operations in this segment focused on generating a
return on invested capital (ROIC) in this business and began to
yield acceptable results. In order to sustain this change in
policy, greater emphasis was placed on Product Development, which
included packaging engineering, research into materials and raw
material, and technical support to customers. More attention was
also given to the use of recycled paper, which reached a record
level in 2002, and to environmental awareness allied with cost
reduction in the use of corrugated cardboard.

Packaging Systems
Integrated packaging solutions offered by Klabin include project
development, implementation and operation of packaging services
at the customers' sites. This activity continued throughout 2002
and will remain an important focus in 2003. In addition to
consolidating Klabin's partnerships with customers, such projects
play an important role in the Company's product mix by adding
value to its products.

Multiwall bags
Sales volume grew 5% to 29 thousand tons in 4Q02, while net
revenue jumped 39% to R$ 73 million. The amount of multiwall bags
sold in 2002 remained flat at 116 thousand tons when compared to
the previous year. On the other hand, accumulated net revenue
improved 18% to R$ 245 million over the period (R$ 208 million in
2001). Export volumes reached 19 thousand tons, up 35% from 14
thousand tons in 2001. Net revenue from exports totaled R$ 52
million, a 24% increase when compared to 2001. Multiwall bag
exports exceeded the Company's expectations for the year with a
record volume of 30 million units shipped, mainly to other Latin
American countries, North America and Africa.

Market pulp
The amount of market pulp sold in 4Q02 rose 22% to 64 thousand
tons. Net revenue jumped 97% to R$ 98 million. Net revenue
totaled R$ 279 million in 2002, an increase of 26% from R$ 221
million in 2001. This growth in net revenue in reais is due to a
higher average exchange rate over the year. Sales volume
(including intercompany transactions) in 2002 remained flat at
295 thousand tons in relation to the previous year. The GuaĦba
mill was shutdown on May for the start up of its expansion
project. During the second half the plant operated in the
learning curve, and should reach full capacity in 2003.

Dissolving pulp
Sales volume declined 7% to 27 thousand tons in 4Q02, while net
revenue rose 15% to R$ 48 million. Sales volume totaled 110
thousand tons in 2002, up 5% from 2001. By contrast, net revenue
slid 3% from R$ 161 million in 2001 to R$ 156 million.

Tissue
The use of new technologies to produce Chiffon paper towels and
Neve toilet paper consolidated Klabin's leadership in both
segments. Sales volume in 4Q02 amounted to 38 thousand tons and
net revenue totaled R$ 156 million, rising 2% and 40% from 4Q01
figures, respectively. Accumulated sales volume grew 11% to 154
thousand tons in 2002 against 138 thousand tons in 2001. Net
revenue totaled R$ 505 million, a 24% increase as compared to R$
408 million in the previous year. A weaker real in 2002 favored
the export of jumbo rolls, which improved 31% to 41 thousand tons
against 2001. Net revenue from exports rose 22%, totaling R$ 121
million in 2002 (R$ 99 million in 2001). Higher pulp prices and
currency variations pressured production costs in the pulp &
paper industry, leading to an adjustment in domestic prices
during second semester of
2003.

Newsprint
The volume of newsprint sold in 4Q02 remained flat at 28 thousand
tons in relation to 4Q01. Net revenue improved 4% to R$ 38
million. Sales volume reached 106 thousand tons in 2002, up 16%
from 92 thousand tons in 2001. Net revenue amounted to R$ 127
million, just about par with the R$ 126 million generated in the
previous year. Klabin operates in this segment through a joint
venture with Norske Skog, initiated in 2000 and scheduled to end
in March 2003, when machine 6 at Monte Alegre (PR) will be
adapted to produce packaging paper.

Printing and Writing paper
Sales volume shrank 20% in 4Q02 to 8 thousand tons, while net
revenue remained stable at R$ 18 million. Sales volume reached 26
thousand tons in 2002, a 21% decrease from 33 thousand tons in
2001. Net revenue dropped 7% to R$ 52 million (R$ 56 million in
2001). The reduction in sales volume was due to the higher
production of packaging paper at GuaĦba mill.

Wood
Klabin carried out 8,313 thousand tons of pinus and eucalyptus
logs in 2002, up 14% from 2001, 5,850 thousand tons of which were
transferred to its plants in Sao Paulo, Paran , Santa Catarina
and Rio Grande do Sul. Sales to third parties rose 44% to 2,463
thousand tons in 2002 as compared to 2001. Mostly made to rolling
mills and saw-mills, such sales generated R$ 178 million in net
revenue, up 62% from the previous year.

Sales by Market

Export volumes improved 8% in 4Q02 and 11% in 2002, totaling 207
thousand tons and 764 thousand tons, respectively. Their
contribution to the total volume sold rose from 38% in 2001 to
41% in 2002.

Revenues from exports grew 55% and amounted to R$ 377 million in
4Q02, totaling R$ 1,107 million in 2002, a 31% increase in
relation to 2001. Their share in total net revenue rose from 32%
in 2001 to 36% in 2002, in tune with the Company's strategy.

Export revenues totaled US$ 103 million in 4T02 versus US$ 95
million in 4Q01, and US$ 372 million in 2002 against US$ 357
million in 2001. The figures for 2002 were as follows: US$ 155
million from packaging paper, US$ 91 million from market pulp,
US$ 52 million from dissolving pulp, US$ 41 million from tissue,
US$ 17 million from multiwall bags, US$ 9 million from wood, and
US$ 7 million from other products.

Exports should continue to grow in 2003, favored by a larger
output of market pulp from GuaĦba (RS), higher production of
cardboards, greater production of kraftliner as of April due to
the conversion of machine 6 at Monte Alegre (PR), and the
development of new markets.

Capital Expenditures

Capital expenditures amounted to R$ 40 million in 4Q02, totaling
R$ 193 million in 2002 and down 46% from R$ 361 million in the
previous year. In 2002, R$ 101 million was spent on expansion
projects and R$ 92 million was used in the preventive maintenance
of industrial units.

An important investment was the conclusion of the expansion
project at GuaĦba (RS), whose production capacity jumped from 300
thousand to 400 thousand tons/year as of the second quarter of
2002. The amount invested was R$ 47 million in 2002 and R$ 217
million in 2001.

A third coater was installed in machine 7 at Monte Alegre (PR) in
2002, enabling the Company to produce coated cardboard of higher
quality (capital expenditure of R$ 23 million). Furthermore, R$
26 million was invested in the installation of a recycled paper
plant at the tissue unit in Correia Pinto (SC).

OUTLOOK
The Management understands that the local and international
market conditions for Klabin products will be more favorable in
2003 when compared to the prevailing scenario in 2002. This
improvement applies to packaging products, pulp, packaging paper
and cardboard, tissue and the wood supplied to the lumber
industry in the south of
Brazil.

Company Management will focus on:
- expanding the export of pulp, packaging paper and cardboard,
corrugated boxes and multiwall bags, based on the capex already
made;
- boosting the Company's overall productivity;
- increasing its operating cash generation;
- tight control of capital expenditures;
- assets divestitures.

Cash generation, coupled with a tight control over capital
expenditures and the disposal of assets will provide the basis
required to balance Klabin's capital structure.

Capital Markets

Klabin's preferred shares (KLBN4) were negotiated in every
trading session held at Bovespa [Sao Paulo Stock Exchange] in
2002, totaling 13,515 transactions around 99.2 million shares,
with a daily traded volume of R$ 400 thousand. KLBN4 quotations
rose 8%, while the
Ibovespa [Bovespa Index], which includes KLBN4, declined 17%.
The Company's capital stock comprises 918.8 million shares,
namely: 317.0 million common shares and 601.8 million preferred
shares.

DIVIDENDS
Dividends in the amount of R$ 30 million from the results
obtained in 2001 were distributed in January 2002.

CORPORATE GOVERNANCE
In December 2002, Klabin was granted a Level I Corporate
Governance seal by the Sao Paulo Stock Exchange (BOVESPA), which
attests the transparency of its financial statements as well as
the respect and equanimity with which it treats all shareholders.

CASH FLOW
Klabin began to publish its consolidated cash flow statements as
of 4Q02.

With gross revenue of R$ 3.2 billion in 2002, Klabin stands as
the largest integrated pulp & paper mill in Brazil, capable of
selling 2 million tons of products per year, and as a leader in
most of its business markets. For strategic purposes, the Company
will focus on the following business lines: packaging paper and
cardboard, corrugated boxes, multiwall bags, tissue paper, wood
and pulp.

CONTACT:  KLABIN
          Ronald Seckelmann, Diretor Financeiro e de RI
          Luiz Marciano Candalaft, IR Manager
          Tel: (11) 3225-4045
          Email: marciano@klabin.com.br

          THOMSON FINANCIAL
          Paulo Roberto Esteves
          Tel: (11) 3848-0887 Ext:. 205
          Email: paulo.esteves@thomsonir.com.br


POWER COMPANIES: Await Concession Contract Renegotiations
---------------------------------------------------------
Power companies in Brazil see an opportunity to air complaints
and make suggestions on tariff adjustments, as the government
reportedly wants to renegotiate concession contracts. Dow Jones
recalls that Luiz Carlos Guimares, director of Brazilian power
distributors association Abradee warned the government must
provide for fair remuneration to investors, and not just focus on
ways to reduce tariffs for consumers.

The country's new Mines and Energy Minister Dilma Roussef said
that the calculation of power tariffs must be changed to make
them fairer for both consumers and investors. Dow Jones, in its
report, cites an unnamed source saying that officials are working
on the legal framework of the changes, but the process could take
months.

One of the proposals suggests using the IPCA, Brazil's key
consumer price index, which is used by the central bank to guide
decisions on interest rates. The IGP-M rate for 2002 came in at
25.3%, according to the independent Getulio Vargas Foundation,
while the IPCA is expected to hit 12%.

Power distributors are allowed to increase rates every year on
the anniversary of their concession contracts to make up for
inflation and other costs. Power sector regulator Aneel carries
out a full tariff revision every fourth year anniversary of the
contracts. During this revision, certain items and calculation
methods may be changed, said the report.


TELEMAR: Growth Expenditures Likely to Mean 4Q02 Losses
-------------------------------------------------------
Telemar, Brazil's biggest home-grown phone company, is expected
to report a loss when it releases its fourth-quarter results on
Wednesday, suggests Reuters. Analysts say Oi, Tele Norte Leste
Participacoes' (Telemar) cellular operator, has fueled net
revenue since it was launched in July. But the costs of stronger-
than-expected subscriber growth burned a hole in the company's
bottom line.

"I think we will see a continued operational improvement in
Telemar (Norte Leste), the fixed-line company, but in the holding
you will get a negative reflection from the growth of Oi," said
Rodrigo Magela, a telecommunications analyst at Pactual brokerage
in Rio de Janeiro.

Telemar should be posting a net loss of BRL104.5 million (US$29
million) for the fourth-quarter of 2002, reversing a profit of
BRL277.4 million in the same period in 2001, according to an
average of six analyst forecasts collected by Reuters.

On an operating level, fourth quarter earnings before interest,
taxes, depreciation, and amortization (EBITDA) is expected to
rise 41% to BRL1.27 billion.

Analysts said Telemar could receive a boost on the financial side
as its foreign debt costs were reduced in local terms by a near-
6% depreciation of Brazil's currency, the real, during the final
quarter.

But some market watchers said the gains would be small as about
86% of the firm's debt was hedged against currency moves at the
end of the third quarter. The real lost 35% of its value in 2002.

"The exchange rate reversed in the quarter so you have a small
impact, perhaps even positive, but remembering that the company
is almost totally hedged it does not lose much on the way up or
gain much on the way down," Magela said. ($1 = 3.85 reais)

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          Email: terziani@telemar.com.br
          Tel: 55 21 3131 1208
          Fax: 55 21 3131 1155

          Carlos Lacerda
          Email: carlosl@telemar.com.br
          Tel: 55 21 3131 1314
          Fax: 55 21 3131 1155

          GLOBAL CONSULTING GROUP
          Rick Huber
          richard.huber@tfn.com
          Tel: 1 212 807 5026
          Fax: 1 212 807 5025

          Mariana Crespo
          Email: mariana.crespo@tfn.com
          Tel: 1 212 807 5026
          Fax: 1 212 807 5025


USIMINAS: Court Revokes BRL3.5 Million Fine
-------------------------------------------
Brazil's antitrust authority Cade has once again lost in its
battle to have Brazilian flat steelmaker Usiminas pay a fine.
According to a report by Business News Americas, a federal court
revoked on Feb. 7 a BRL3.5-million (currently US$972,000) fine on
the Belo Horizonte-based steelmaker.

The fine stems from Cade's decision in 2001 that Usiminas, Sao
Paulo-based flat steelmaker Cosipa and Rio de Janeiro-based flat
steelmaker CSN had formed a cartel to fix prices and divide up
the market between them.

Cosipa also successfully overturn a BRL3.8-million fine imposed
by Cade. CSN, on the other hand, said it had no current
information on the judicial process. Antitrust authorities have
struggled to impose fines on the three steelmakers.

In 1999, Cade imposed fines of BRL13-22 million on the three
companies but each one successfully appealed the decision. That
penalty was also for allegedly forming a cartel.

CONTACT:  Usinas Siderurgicas de Minas Gerais Usiminas PN A
          Rua Prof. Jose Vieira de
          Mendonca, 3011
          Engenheiro Nogueira
          31310-260 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3499-8000
          Fax  +55 31 3499-8475
          Web  http://www.usiminas.com.br
          Contact:
          Jose Augusto Muller de Oliveira Gomes, Chairman



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

ENAMI: Fitch Affirms F-C Rating; Downgrades L-C Rating to 'A+'
--------------------------------------------------------------
Fitch Ratings has downgraded the senior unsecured local currency
rating of Empresa Nacional de Mineria (ENAMI) to 'A+' from 'AA-'.
Fitch has also affirmed ENAMI's 'A-' senior unsecured foreign
currency rating.

The Rating Outlooks are Stable.

These rating actions follow Monday's downgrade by Fitch of the
long-term local currency (Chilean peso) rating of the Republic of
Chile to 'A+' from 'AA-'. Fitch affirmed the 'A-' long-term
foreign currency rating of the Republic of Chile.

ENAMI's 'A-' foreign currency rating applies to the company's
USD220 million three-year syndicated bank loan that closed
December 31, 2002. The loan carries a full and unconditional
guarantee from the Republic of Chile whose long-term foreign
currency obligations are also rated 'A-'.

The ENAMI ratings also represent the credit quality of all debt
at ENAMI, including debt that does not carry an explicit
government guarantee. Fitch does not differentiate between the
debt with and without the explicit government guarantee due to a
letter from the government to the unsecured lenders, in which the
government expresses its intent to support these loans and states
that it does not consider them subordinate to the syndicated
loan. Fitch believes that the Chilean government will honor this
implicit commitment to ENAMI's lenders due to the negative
externalities that would arise from a default by ENAMI.

ENAMI is wholly owned by the Chilean government and provides
copper smelting and refining services to small to midsized mining
operations. ENAMI supports these companies by providing price-
stabilization programs, loans, and technical and marketing
assistance.

Contact: Anita Saha, CFA 1-312-368-3179, Chicago
         Joe Bormann, CFA 1-312-368-3349, Chicago
         Hernan Cheyre, +562-0206-7171, Chile

Media Relations: James Jockle 1-212-908-0547, New York


EMPRESAS IANSA: Fitch Cuts Ratings to 'BB'; Withdraws Ratings
-------------------------------------------------------------
Fitch Ratings-New York-February 25, 2003: Fitch Ratings has
downgraded the senior unsecured foreign currency and local
currency ratings of Empresas Iansa, S.A. (Iansa) to 'BB' from
'BB+'. Fitch Ratings has also withdrawn the ratings at the
request of the issuer due to the final payment on Jan. 27, 2003
of a debt issue privately placed with U.S. investors. The private
placement investors had requested the ratings at the original
issue date.

The ratings' downgrade is a result of weak profitability at
Iansa, which rendered credit protection measures not commensurate
with the prior rating category. Iansa has been affected by price
pressures on their agricultural outputs such as sugar, tomato
paste and fruit juice concentrate, continued weak domestic demand
for sugar and competitive pressures from imported sugar
substitutes, such as fructose from Argentina. As a result, Iansa
has not been able to reduce its debt levels, which remain high.

Notwithstanding these challenges, the recent sale of Iansa's
retail chain Proterra has reduced capital expenditure needs.
Iansa has indicated that it intends to allocate proceeds from the
sale of Proterra to debt reduction. It also expects a reduction
in short term debt due to lower financing needs of beet growers
as planted hectares have declined. An important debt reduction
coupled with a more favorable price and demand environment in
2003- as Iansa anticipates - may translate into a gradual
improvement in credit protection measures.

The ratings are supported by Iansa's strong business position as
sole producer in the Chilean sugar market. Iansa also receives
technology transfer and support from its controlling shareholder,
Ebro Puleva of Spain. In recent years, Iansa has achieved
substantial productivity gains as a result of the implementation
of a plan, sponsored by Ebro Puleva, designed to increase the
yields of sugar beet production. The ratings are also supported
by Chile's protection mechanisms for sugar. Because of the
importance of the industry to Chile from social and economic
reasons, Fitch Ratings expects that such protection mechanisms
will continue.

Iansa is one of Chile's largest agro-industrial companies and the
country's only sugar producer, with over 80% of the domestic
sugar market. Non-sugar businesses include the production of
tomato paste and concentrated fruit juices, primarily for the
export market. Iansa is controlled by Ebro Puleva, a Spanish food
conglomerate.

CONTACT:  Giovanna Caccialanza 1-212-908-0898, New York
          Guido A. Chamorro 1-312-368-5473, Chicago
          Rina Jarufe, 562-206-7171, Santiago, Chile

Media Relations: Matt Burkhard 1-212-908-0540, New York



===============
C O L O M B I A
===============

BELLSOUTH COLOMBIA: 2002 Net Loss Widens To COP404 Billion
----------------------------------------------------------
BellSouth Colombia, a unit U.S. telecommunications company
BellSouth Corp., suffered a ballooning net loss totaling COP404
billion ($1=COP2,946) in 2002 from a loss of COP243 billion in
2001. The information was disclosed in a statement to the
country's Securities Superintendency
(http://www.supervalores.gov.co.)Tuesday. More complete earnings
results will be available later this week on the Securities
Superintendency.

"We are still very young in the business in Colombia so we have
made a lot of investments," the president of BellSouth Colombia,
Larry Smith, told Reuters.

He said the Company had recorded an operational profit and the
results looked better after taking account of depreciation,
interest and the weakness of the peso.

Losses caused by the falling peso accounted for COP340 billion of
the overall loss by BellSouth Colombia, the country's No. 2
cellular firm, with 1.5 million subscribers.

CONTACT:  BELLSOUTH CORP.
          1155 Peachtree St. NE
          Atlanta, GA 30309-3610
          Phone: 404-249-2000
          Fax: 404-249-5599
          Home Page: http://www.bellsouth.com/
          Contacts:
          Investor Relations
          Phone (US):    800.241.3419
          Fax: 404.249.2060
          E-mail: investor@bellsouth.com



=============
J A M A I C A
=============

AIR JAMAICA: Continues Talks With AAJ
-------------------------------------
Air Jamaica Express is still negotiating with the Airports
Authority of Jamaica, concerning payments on the airline's $40.6
million in debt, reports RJR News. Earlier, the AAJ threatened to
take strong action against the airline for failing to fulfill a
promise to make payments on its debts.

The airline reportedly promised to pay $250,000 on its debts
weekly on an interim basis. The company pointed to losses due to
the September 11 attacks on the U.S. as the reason why it was
unable to make the promised payments.

Air Jamaica Express President and Chief Executive Officer Timothy
Coon said that his company has submitted a new payment plan to
the AAJ's management.

Air Jamaica Express is a subsidiary of Air Jamaica.

CONTACT: Air Jamaica
         4 St. Lucia Avenue
         Kingston 5,
         Jamaica
         Phone: 876/922-3460
         Fax: 929-5643
         Email: webinfo@airjamaica.com
         Contact:
         Gordon Stewart, Chairman
         Allen Chastanet, Vice President for Marketing and Sales



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

ALESTRA: Amends Financial Info Amid Exchange Offer
--------------------------------------------------
Alestra, S. de R.L. de C.V., announced Tuesday that it
electronically filed its Post Effective Amendment No. 1 to its
Form F-4 Registration Statement (File No. 333-100075) with the
U.S. Securities and Exchange Commission relating to its current
exchange offers, cash tender offers and consent solicitations.

The original Registration Statement was declared effective by the
U.S. Securities and Exchange Commission on February 12, 2003.

The Post-Effective Amendment provides updated financial
information which was not included in Alestra's prospectus dated
February 13, 2003. The Post-Effective Amendment includes
Alestra's audited financial results for the year ending December
31, 2002.

The economic terms of the exchange offers, the cash tender offers
and the consent solicitations are the same as they were in
Alestra's February 13, 2003 prospectus.

Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a
leading provider of competitive telecommunications services in
Mexico that it markets under the AT&T brand name and carries on
its own network. Alestra offers domestic and international long
distance services, data and internet services and local services.

CONTACT:  Alestra, S. de R.L. de C.V.
          San Pedro Garza Garcia
          Sergio Bravo, Treasurer
          Phone: 52-818-625-2269
          E-mail: sbravo@alestra.com.mx
              or
          Alberto Guajardo, Investor Relations:
          Phone: 52-818-625-2219
          E-mail: aguajard@alestra.com.mx


CFE: Seeks To Eliminate Annual 9% Federal Tax
---------------------------------------------
Mexico's state power company CFE is urging the government to
eliminate an annual 9% federal tax, reports Business News
Americas.

"This tax was originally intended to cover the cost of developing
the CFE's generation assets, but now that cost has been covered
there is no reason why we should continue paying," the source
said.

Without the tax, CFE said it would be able to meet growing
domestic energy demand over the next ten years. The CFE would
save some US$3.6 billion annually. The money could be used to
fund new projects and meet Mexico's energy demand, which is
growing at about 5% a year, the source said.

But according to Eduardo Andrade, the president of the Mexican
electricity association, the CFE should continue to pay the tax
because it owes Mexican taxpayers.

"This 9% tax is not out of line for a utility like the CFE. Do
they have to pay it? Yes they have to pay it. They are using my
money and I want some return," Andrade said.

"You have to pay return on capital to your investors. As Mexicans
we are investors and they have to pay us a return either through
lower tariffs or social works coming from CFE profits," he added.

The tax is based on the value of the CFE's assets, which
according to Andrade are overvalued.

"[The CFE] should value them properly and then they would have to
pay less money, but their debt-acquiring capacity would also be
lower," he said.

"If they have a lot of assets they should start get ridding of
them and be more productive," he added. The CFE owns some US$30
billion in generation assets.


GRUPO IUSACELL: 4Q02, Year End Results Show Turn Around Progress
----------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) (Iusacell or
the Company) announced Tuesday results for the fourth quarter and
year ended December 31, 2002. Unless otherwise noted, all
monetary figures are in Mexican Pesos and restated as of December
31, 2002 in accordance with Mexican GAAP, except for ARPU (which
is in nominal pesos). The symbols "$" and "US$" refer to Mexican
pesos and U.S. dollars, respectively.

Highlights

* Total subscriber base increased 12% in 2002, net customers
additions were 226,000, representing a 30% increment over 2001;

* New management team focusing on high-value customers; decline
in postpaid subscriber base slows in second half of 2002;

* Restructuring and cost-containment efforts reduce S&A by 14% in
2002;

* Personnel reduction of 36% in the year increases operating
efficiencies;

* Technology leadership affirmed with 3G 1XRTT launch in January
2003;

"This was a challenging year for Iusacell. The new management
team realigned the Company's strategic focus towards high-value
customers, whether they choose a pre- or post-payment
alternative, during the second half of 2002. To support this
strategy, we segmented our sales force to compete more
effectively in the high-end market, redesigned the sales
compensation plan and strengthened distributor relationships. We
also continued to tighten our cost structure and extract greater
efficiencies from our operations. The re-sizing of the Company
better aligns it with the current competitive environment," said
Carlos Espinal G., Iusacell's Chief Executive Officer. He added,
"Most of the internal processes have been evaluated and re-
designed, while the remainder are slated for performance
improvement in early 2003. This will align the entire
organization with a customer-oriented focus. We believe that
long-term fundamental gains from this strategic shift will begin
to emerge during 2003."

Russell A. Olson, Chief Financial Officer of Iusacell, said "The
Company's financial strategy in 2002 was centered on cost
containment and cash management." He continued, "Iusacell ended
2002 in a better cash position than the previous quarter as well
as with a reduced labor force."

Quarterly Results

Iusacell added 169 thousand gross cellular customers in the
fourth quarter of 2002, 37% lower than those added in the fourth
quarter of 2001. The decrease in gross additions during the
quarter reflects the Company's renewed focus on high-value
customers. Subscribers at year-end 2002 totaled 2.1 million, a
12% increase from the December 31, 2001 figure. The total
subscriber base, however, decreased 4% when compared to the
previous quarter as turnover among very low-usage subscribers
continued. The Company's postpaid customer base declined 4%
during the quarter and 12% during the year, ending at 356
thousand due primarily to fewer gross additions. To counter those
declines the Company is enhancing and developing improved
postpaid products to attract high-value subscribers, as evidenced
by the recent launch in Mexico City of 1XRTT data features and
the incorporation of the "any-time minutes" concept into all
postpaid plans.

Prepaid customers increased 19% year over year, totaling
approximately 1.7 million as of December 31, 2002, reflecting the
Company's prior efforts to grow that segment in the first half of
2002. The overall prepaid subscriber base is projected to grow
marginally during 2003 as the Company continues to replace low-
usage customers by focusing on attracting higher value prepaid
customers.

Blended churn in the fourth quarter of 2002 increased to 4.1%
compared to 3.9% registered in the fourth quarter of 2001. The
result was driven by the anticipated increase in prepaid churn
derived from the turnover among low usage prepaid and Incoming
Calls Only customers, partially offset by the 10% year over year
improvement in postpaid churn. The improved postpaid churn
reflects the Company's continued efforts to augment retention and
renewal programs; these efforts are designed to enhance customer
service for high value prepaid and postpaid subscribers.

As part of the Company's efforts to attract high-end customers
and improve the delivery of customer care to this important
market segment, Iusacell completed a performance evaluation of
its Company-owned stores. After review of the study's findings,
the Company decided to relocate 23 stores into high- value
residential and commercial zones, enhance customer service
capabilities for key stores and remodel 38 strategic stores. As
of December 31, 2002, Iusacell had a total of 146 Company-owned
stores.

The Company continued its program to directly contract with key
distribution channels that had previously been served via third
party distributors. During the fourth quarter, contracts were
executed with a major national electronic retail chain and a
large supermarket chain operating in the northern regions. The
direct sales model will contribute to stronger distribution
relationships and an improved cost structure. In addition, the
Company reached an agreement to include the Banamex-Citibank
network of more than 6,000 ATMs in order to extend the airtime
recharge availability to high- value prepaid customers. As of
December 31, 2002 there were approximately 1,800 direct and
indirect points of sale and approximately 56,500 nationwide
points of sale dedicated to prepaid VIVA T cards distribution and
airtime recharge.

Blended Average Revenue per User (ARPU) declined from $241 in the
fourth quarter of 2001 to $180 in the fourth quarter of 2002
primarily due to a higher proportion of prepaid subscribers in
the Company's customer base. Fourth quarter postpaid ARPUs
decreased 14% compared to the previous year due mainly to the
increased proportion of hybrid customers in the postpaid
subscriber base and the impact of a tighter Mexican economy on
consumption. When compared to the previous quarter, postpaid
ARPUs declined 2% due to additional seasonal airtime promotions.
Prepaid subscribers' ARPU decreased 2% compared to the fourth
quarter of 2001 mainly driven by a higher proportion of lower-
revenue generating customers in the prepaid subscriber base
brought into the Company in the first half of 2002. Sequentially,
prepaid ARPU increased 1% due to an improved prepaid subscriber
mix.

As a result of the above, quarterly revenues decreased 17% year
over year to $1,274 million. Compared to the previous quarter,
revenues declined 4%. The Company believes the initiatives taken
in the later part of 2002 aimed to incent high-value sales,
attractive new product offerings like 1XRTT and prepaid LD, as
well as high-value customer retention programs will stem the
negative revenue trend in 2003.

In the fourth quarter of 2002, cost of sales decreased 2% from
the fourth quarter of 2001 to $475 million. Stringent financial
controls in 2002 enabled the Company to register a marginal cost
reduction in spite of higher lease costs associated with an
increased number of non-strategic towers sold to (and leased-back
from) the Mexican subsidiary of American Tower Corporation during
the year.

Fourth quarter 2002 overall sales and advertising expenses
declined 14% compared to the fourth quarter of last year due
primarily to fewer gross subscriber additions. Lower headcount,
and restructured compensation plans helped reduce general and
administrative expenses to $59 million, a 62% decline from the
previous year's quarter.

EBITDA decreased 27% in the fourth quarter of 2002 compared to
the fourth quarter of 2001, to $367 million. EBITDA of $504
million in the fourth quarter of 2001 benefited from a $36
million gain related to sales of non-strategic cellular towers.
Excluding the gain, fourth quarter 2001 EBITDA margin would have
been 30%, comparable to the 29% fourth quarter 2002 EBITDA margin
result.

Adjusted EBITDA margin, which expenses rather than capitalizes
postpaid handset subsidies and excludes non-operational
transactions, such as severance costs and gains from fiber-optic
and towers sales, was 24% in the fourth quarter, as compared to
the 26% margin in the fourth quarter of last year. The decline
was attributable to lower revenues and higher tower leasing costs
partially offset by the cost reduction efforts during the period.

Depreciation and amortization expenses of $478 million decreased
27% from the fourth quarter of 2001, driven by a reduced level of
capital expenditures during the period, lower handset
amortization expenses attributable to lower postpaid gross
additions, more cost-effective handset purchases and handset
subsidies targeted to high-value customers.

Direct cash acquisition costs per postpaid subscriber improved
from US$270 in the fourth quarter of 2001 to US$208 in the most
recent quarter, due to restructured commission plans, more
efficient handset purchasing and targeted subsidies.

The fourth quarter operating loss of $111 million decreased 27%
from the $153 million operating loss registered in the same
period of 2001. Excluding 2001 tower-related gains, Iusacell
would have reported operating losses of $189 million in the
fourth quarter of 2001. The Company reported an integral
financing cost of $394 million in the fourth quarter of 2002,
compared to a $93 million integral financing gain in the same
quarter of last year. This sharp decline was mainly driven by a
$326 million foreign exchange loss in the fourth quarter of 2002
resulting from the 5% depreciation of the peso against the U.S.
dollar during the period, compared to a 3% peso appreciation
against the U.S. dollar registered in the fourth quarter of 2001,
as well as a $21 million increase in interest expense compared to
the same period of 2001. The increase in interest expense was
also driven by the depreciation of the peso since interest
obligations are primarily denominated in U.S. dollars.

The operating loss as well as the integral financing cost in the
fourth quarter of 2002 resulted in a net loss of $525 million,
compared to a net loss of $79 million in the fourth quarter of
2001. Excluding the fourth quarter 2001 tower gains, Iusacell
would have reported a $114 million loss in that period.

Financial Condition

Liquidity: During the fourth quarter of 2002, the Company funded
its operations, capital expenditures, handset purchases,
principal and interest payments primarily with internally
generated cash flow. As of December 31, 2002, the Company's
operating cash balance was US$16 million. In December 2002, the
Company made the scheduled US$25 million payment of interest on
its 14.25%, US$350 million Senior Notes due in 2006. With this
payment, the Company exhausted the cash escrow funds used to
service this facility's interest payments. Also see Other
Developments -Debt Restructuring Effort.

Capital Expenditures: Iusacell invested US$29 million in its
cellular and PCS regions during the fourth quarter of 2002 to
expand coverage and upgrade 3G data capability in Mexico City
(see Other Developments -3rd Generation Services). The Company
invested US$88 million in capital expenditures in 2002,
significantly lower than the US$214 million invested during 2001.
The reduction reflects a revised focus which maximizes existing
capacity and prioritizes the Company's strategic investments.

Debt: As of December 31, 2002, debt, including trade notes
payable and notes payable to related parties, totaled US$822
million, compared to US$829 million registered in the fourth
quarter of 2001 and US$840 in the third quarter of 2002. All of
the Company's debt is U.S. dollar-denominated, with an average
maturity of 2.8 years. As of quarter-end, Iusacell's debt-to-
capitalization ratio was 61.6%, versus 51.5% on December 31,
2001.

Other Developments

3rd Generation Services: In January 2003, the Company
commercially launched the country's first CDMA2000 1X voice and
high-speed data network in Mexico City. With this third-
generation (3G) network, the Company increased its voice capacity
and offered subscribers new data services such as high- speed
instant messaging, e-mail and Internet access at speeds of up to
144 kilobits per second (kbps). Iusacell offers enterprises
mobile office capabilities and applications designed to meet the
needs of specific mobile users such as field sales and service
personnel. The Company expects to expand the footprint of this
technology to the main cities throughout Mexico in 2003.

Verizon Relationship: The Company continued to integrate network
services with Verizon in the fourth quarter of 2002. Starting
December 2002, a portion of Verizon's international in-coming
traffic is now terminated through the Company's Long Distance
network, representing an important step forward to leverage
Iusacell's facilities. The Company believes that as its network
continues to prove high levels of reliability, the portion of the
Verizon's international traffic to Mexico terminated in
Iusacell's network will further increase in the coming quarters.

The Company also initiated the operations and commercial offering
of Internet services to its corporate clients, derived from an
agreement with Verizon that invested in, and supervised the
activation of, an Internet POP to serve Iusacell high-value
customers in Mexico.

Furthermore, Verizon Wireless has been actively updating its
Preferred Roaming Partner list (PRP) in all its new handsets and
promoting and contacting key customers to update the software PRP
list using an over-the-air activation process. This PRP update
allows Verizon Wireless customers to automatically roam on the
Iusacell network while in Mexico. This effort has resulted in a
substantial increase in roaming airtime from Verizon Wireless
during 2002, reaching traffic increments of up to 170% quarter-
over-quarter. These efforts complement other on-going initiatives
such as purchasing telecom equipment and handsets with Verizon.

Cost Control Initiatives: During the fourth quarter, the Company
has continued to restructure and streamline its operations and
has taken significant steps towards reducing future costs. As
part of these initiatives, Iusacell further reduced its total
labor force by 186 permanent and outsourced positions during the
fourth quarter of 2002. As of December 31, 2002, the Company had
1,685 total employees, down from the 2,643 employees at the end
of 2001. The release of 958 employees during 2002 generated a
total of $70 million in related severance cost in the year. The
Company accounted for approximately $56 million in net cost-
reduction savings in 2002.

Debt Restructuring Effort: During the fourth quarter of 2002, the
Company announced its intention to initiate a debt restructuring
process for its primary obligations. Iusacell has retained Morgan
Stanley and Co. Incorporated as its financial advisor for this
effort.

Listing Standards on the NYSE: As previously reported in the
Company's third quarter earnings release, Iusacell received
notice from the New York Stock Exchange (NYSE) in September 2002
that it is not in compliance with one of the NYSE's continued
listing standards since its ADR 30 average trading day price was
below US$1.00. Iusacell continues to proactively communicate with
the NYSE and evaluate viable alternatives to cure the deficiency.

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 91 million POPs,
representing approximately 90% of the country's total population.
Iusacell is under the management and operating control of
subsidiaries of Verizon Communications Inc..

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

    Investor Contacts:

    Russell A. Olson
    Chief Financial Officer
    011-5255-5109-5751
    russell.olson@iusacell.com.mx

    Carlos J. Moctezuma
    Manager, Investor Relations
    011-5255-5109-5780
    carlos.moctezuma@iusacell.com.mx


GRUPO SIDEK: Shareholders To File Case In New York Court
--------------------------------------------------------
Minority shareholders of Grupo Sidek, which have failed three
times in their attempts to annul the agreements of the Sidek
assembly, have decided to file another suit. This time the legal
action will be under the jurisdiction of New York courts.

The legal representatives of the group of shareholders are now
preparing the lawsuit. The shareholders, led by Adolfo GarcĦn de
la Cueva and Juan Jaime Petersen Farah, claim they have 16% of
Sidek and said they will present a class action suit in a New
York federal court.

The shareholders have complained of irregularities in the sale of
assets, and that the number of stocks reported to the Mexico City
Stock Exchange was manipulated.

"We also represent the holders of ADRs and that allows us to take
legal action against the Sidek management," said Mauricio
RodrĦguez, a lawyer for the shareholders.

After more than two years of litigation, neither the National
Banking and Securities Commission nor the General Justice Office
of the Federal District have been able to intercede in favor of
the shareholders, who demand transparency in the company's
financial restructuring process and sale of assets.



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

CARONI LTD.: `Unfair' VSEP Offer Angers Daily-Paid Workers
----------------------------------------------------------
Daily-paid workers of Trinidad and Tobago state sugar company,
Caroni (1975) Ltd. staged a protest outside Field Engineering
Department in Usine Ste Madeline. The Trinidad Guardian reports
that the workers were complaining about the government's offer of
the Voluntary Separation of Employment Plan (VSEP).

Wayne Burke, a spokesman for the protesting workers said that the
government is offering daily-paid workers who have worked for 10
years in the company only $35,000, compared to the $151,000
offered to staff workers with the same length of service.

"And that is unfair," said Mr. Burke.

He said that while daily-paid workers are willing to accept the
VSEP offer, they are dissatisfied with the "raw deal" the
government offered them.

During their protest march, the workers chanted, "We want equal
treatment."

CONTACT:  Caroni Limited
          Old Southern Main Road, Caroni,
          Trinidad & Tobago
          Phone: (868) 663-1781 or 662-0879
          Fax: (868) 663-1404

          All Trinidad Sugar and General Workers' Trade Union
          Rienzi Complex
          Exchange Village
          Southern Main Road, Couva.
          President: Mr. Boysie Moore-Jones
          General Secretary: Mr. Rudranath Indarsingh
          Phone: 868-636-2354
          Fax: 868-636-3372
          E-mail: atsgwtu@opus.co.tt


CARONI LTD.: Maha Sabha Opposes HCU's Land Acquisition
------------------------------------------------------
The Hindu Credit Union (HCU) should be prevented from acquiring
land assets from Caroni (975) Ltd. said Parsuram Maharaj,
executive member of the Sanatam Dharma Maha Sabha. Mr. Maharaj's
statement came after the HCU publicly announced its interest in
acquiring Caroni's lands.

Mr. Maharaj was quoted in the Tuesday issue of the Trinidad
Express saying that HCU president Harry Harrnarine "continues to
feel that indentureship still exists in Trinidad and Tobago, and
as a result his actions are akin to that of the arrogance of a
sugar-cane farmer".

"The Maha Sabha questions the Supervisor of Credit Unions Keith
Maharaj, and Minister in the Ministry of Finance Conrad Enill on
this issue," he declared.

He also pointed out that leaders of sugar unions appear to have
no concern when a credit union demands the prized assets to the
company merely because some employees are members of such credit
unions.

The HCU's proposal came after the government finally offered the
Voluntary Separation of Employment Plan (VSEP) to about 9,000
workers. Earlier reports said that those who reject the VESP and
opts to stay in the company would have to face eventual
redundancy.

"The heart of the company has not stopped beating yet the
economic vultures have already begun to circle the carcass of the
company, its assets and its employees," said Mr. Maharaj.



=================
V E N E Z U E L A
=================

PDVSA: Venezuela Files Suit Against Striking Leaders
----------------------------------------------------
At least eight former managers of state oil company Petroleos de
Venezuela SA are now facing legal charges for instigating a
strike that led to a slump in production and exports, reports
Bloomberg. The defendants, whose names were not revealed, will be
ordered to appear before the court in an initial probe of the
strike, government prosecutors said.

Labor unions, business leaders and former oil executives
organized the national work stoppage to pressure Venezuelan
President Hugo Chavez to step down and hold elections. The strike
ended Feb. 1 for all workers except those in the oil industry.




               ***********


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

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