TCRLA_Public/030303.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, March 3, 2003, Vol. 4, Issue 43


A N T I G U A   &   B A R B U D A

LIAT: Management Agrees to Pay Cuts to Save LIAT


ARGENTINE BANKS: Economy Minister Suspends Meeting
AT&T LATIN AMERICA: To Launch MPLS Nodes In Ecuador & Colombia
BLADEX: S&P Affirms BBB Rating
DISCO SA: Ahold Investigation Completed
NII HOLDINGS: To Begin Trading on NASDAQ National Stock Market

PECOM ENERGIA: Plans To Sell US$34M In Dollar-Denominated Bonds
ROYAL AHOLD: Pension Fund Commences Class Action Lawsuit
ROYAL AHOLD: Deloitte Served With Class Action Complaint
ROYAL AHOLD: Cohen, Milstein, Hausfeld & Toll Files Class Action


C&W: Firing 65 Barbados Employees


TYCO INTERNATIONAL: Investors' Ad Chides Company


CRE: S&P Lowers Ratings to 'B' from 'B+'


CEMIG: Shareholders Appoint New Directors
EMBRATEL: Signs Financing Program
SKY BRASIL: Moody's Lowers Ratings, May Undertake Further Cuts
TCP: Concludes The Issue Of Promissory Notes

VARIG-TAM: Pre-Merger Moves Encounter Hurdle


EMPRESAS IANSA: 'BB+' Rating Withdrawn


ALESTRA: Receives Senior Note-related Extensions
CFE: Faces MXN2M Fine For Emission Violations
CINTRA: Reports Fourth Quarter And Year 2002 Results
EMPRESAS ICA: Reports Unaudited 4Q02, Full Year 2002 Results
GRUPO MEXICO: UK's Barclays Balks At Loan Arrangement

GRUPO SIMEC: Releases Preliminary Unaudited Results For 2002
GRUPO TFM: Reports Fourth Quarter and Full Year 2002 Results
GRUPO TMM: Reports Fourth Quarter and Full Year 2002 Results
LUZ Y FUERZA: Signs Excessive Charges Avoidance Agreement
PEMEX: Stake Sale May Be Discussed When Next Congress Meets

SAVIA: Reports Year-End Results for Fiscal 2002
VITRO: Signs Syndicated Facility for $201 Million

     -  -  -  -  -  -  -  -

A N T I G U A   &   B A R B U D A

LIAT: Management Agrees to Pay Cuts to Save LIAT
LIAT's management has agreed to take pay cuts in order to help
save the troubled regional carrier. A report by the Antigua Sun
said that top management would accept a 10 percent cut in their
pay, while middle management agreed to get a 5 percent pay cut.

A similar decision from the company's pilots was expected on
Wednesday, while the company's engineers were expected to gather
yesterday to decide on pay cut possibilities.

The company's management is pulling out all the stops to avoid
the possibility of creditors repossessing some aircraft. LIAT
said it needs $25 million (US$9 million) in immediate financing.
Another $75 million capital injection is needed to put it in a
position of safety, said the report.

Last week, the airline' chief executive Gary Cullen said that
LIAT is actively contemplating on a merger with Trinidadian
airline, BWIA.

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:
          Garry Cullen, Chief Executive Officer
          David Stuart, Vice President of Marketing

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


ARGENTINE BANKS: Economy Minister Suspends Meeting
Argentine Economy Minister Roberto Lavagna ended his meeting with
representatives from the country's banks intended to discuss a
possible compensation for losses incurred during the conversion
of dollar-denominated debts into the local currency at below
market rates, Business News Americas reported.

The government is bound by an agreement with the International
Monetary Fund to provide compensation for the said losses.
However, Mr. Lavagna accused the banks of fabricating a story
that the Economy Ministry has agreed to pay them US$2.64 billion
in compensation. He story ran in a morning paper, said the

According to Mr. Lavagna, no compensation figures have been
discussed so far.

However, the report did not indicate whatever comments the banks
might have. Nor did it say when Mr. Lavagna might meet with bank
representatives after this delay.

AT&T LATIN AMERICA: To Launch MPLS Nodes In Ecuador & Colombia
US-based telco AT&T was due to start construction last week of
two MPLS nodes in Quito, Ecuador and Cali, Colombia, reports
Business News Americas.

AT&T's Americas region business VP Penny Shaffer said
construction completion is expected Sin the fourth quarter of
this year.

At the same time, AT&T is planning to build nodes in Caracas,
Venezuela and Bogota, Colombia for the Latin American region this
year. The Company's technical and regulatory evaluation committee
may additionally authorize the construction of nodes in Costa
Rica and Panama. The final decision on the latter two will
"likely" be made before the end of June, according to Shaffer.

The construction of the nodes follows AT&T's global strategy to
bring together all of its fiber optic undersea cables into a
unified worldwide MPLS network where every single node links to
at least two other nodes.

The connectivity will allow for seamless continuity, and provide
for a single contracting mechanism with one set of systems to
handle fault management, Shaffer said.

AT&T has budgeted US$300 million to begin the network
unification, through co-location of MPLS nodes with existing
global frame network (GFN) nodes. AT&T operates 640 nodes in the
US and 200 more internationally, of which 12 are located in Latin

Nodes outside of the US will be built according to client demand,
Shaffer said: "US$300 million is not the end of the spending, and
200 nodes is not the end of the buildout."

To see financial statements:

          Eileen Connolly, +1-908-234-8510
          Dan Lawler, +1-908-234-6846

BLADEX: S&P Affirms BBB Rating
Standard & Poor's Ratings Services said Thursday that it affirmed
its 'BBB-' counterparty, CDs, and senior unsecured ratings on
Banco Latinoamericano de Exportaciones S.A. (Bladex). The outlook
is negative.

The rating affirmation reflects the good results obtained by the
bank in an extremely challenging environment. Throughout 2002,
the bank made significant efforts to manage, collect, and reduce
the risks of its credit exposures, particularly those
concentrated in Argentina and Brazil. These have resulted in a
significant reduction of the balance sheet and the generation of
net losses from high allocations to loan-loss provisions to cover
potential credit losses. The profile and structure of the loan
portfolio-mainly made up of trade financing-has allowed
management to conduct an orderly reduction of the balance sheet.

Additionally, core shareholders have supported the bank, as
evidenced by commitments to increase capital, ratification of
preferred creditor status, and the facilitation of negotiations
with creditors, even during a period of severe stress for most
core shareholders. "The anticipated capital injection of more
than $100 million to be closed by the end of April, is a positive
step in enhancing the bank's financial condition and supports its
mission as a provider of trade financing in Latin America," said
credit analyst Ursula M. Wilhelm.

The negative outlook reflects Standard & Poor's concern about
Bladex's prospects. There are still great difficulties and
challenges in the region, which could potentially increase
Bladex's estimated losses in certain countries or lower future
business prospects if economic and political prospects worsen.
Additionally, there is still a large concentration of credit
exposures, which could cause further deterioration in the bank's
capital base. While these risks are partially mitigated by the
bank's excellent track record of operations in the region,
management's good knowledge and contacts, the intrinsic lower
risk of trade financing, and the bank's good level of liquidity,
pressures remain given greater uncertainties in the external

ANALYST: Ursula M Wilhelm, Mexico City (52) 55-5279-2007

DISCO SA: Ahold Investigation Completed
Ahold announced on February 24 that it has been investigating,
through forensic accountants, the legality of certain
transactions at Ahold's Argentine subsidiary, Disco, and the
accounting treatment thereof. While Ahold believed that there was
no material impact upon the company, it was unable to comment
further until the investigation was complete. This work has now
been concluded and the investigation shows that there will be no
material impact on Ahold's financial results.

Ahold also announced the Chief Executive Officer and the Chief
Financial Officer along with two other directors have resigned.
Two new directors have been appointed by Ahold to the Disco
Board. Alfredo Garcia Pye, currently Country Manager of Ahold's
Santa Isabel operation in Peru, has been appointed Chief
Executive Officer. Pieter de Nooij, currently member of Ahold's
Latin America Support Group, has been appointed Chief Financial
Officer. Both appointments are effective immediately.

An Ahold team from the Netherlands has been installed at Disco to
offer active support to the company, enforce controls and ensure
compliance with the Ahold Business Principles.

          Corporate Communications

NII HOLDINGS: To Begin Trading on NASDAQ National Stock Market
NII Holdings, Inc. (Nasdaq:NIHD), a leading provider of mobile
communications for business customers in Latin America, announced
on Thursday that it expects to begin trading on NASDAQ National
Market Systemr under the ticker symbol NIHD on Friday, February
28, 2003. NII Holdings Inc. common stock had previously been
traded on the NASDAQ OTC (over-the-counter) market under the same
trading symbol.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston, Va.,
is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Chile, Mexico and Peru, offering a fully
integrated wireless communications tool with digital cellular
service, text/numeric paging, wireless Internet access and Nextel
Direct Connectr, a digital two-way radio feature. NII Holdings,
Inc. trades on the over-the-counter market under the symbol NIHD.
Visit the Company's website at

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

PECOM ENERGIA: Plans To Sell US$34M In Dollar-Denominated Bonds
For the first time since the devaluation of the Argentine peso,
local energy group Pecom Energia will issue US$34 million in US
dollar-denominated negotiable bonds on the local market, reports
Business News Americas.

"This is like an experiment, it's a test for the market. We don't
know how the market will respond, but the economy is more stable
these days, so we will wait and see," a company source.

Dutch bank ABN Amro will manage the tender, which is schedule for
March 5.

The issue will also be Pecom Energia's first since its parent
company Perez Companc was bought out by Brazil's state owned oil
company Petrobras in October 2002.

"The funds generated will be used as a refinancing instrument to
roll-over short term debt," the source said.

Pecom Energia faces a US$35-million negotiable bond payment on
March 21, according to Standard & Poor's (S&P) energy expert
Pablo Lutereau.

"They will probably use this new bond to replace their old debt,
and avoid having to use funds from their own cash-flow," Lutereau

From the investors point of view, "this is good alternative to
keep the value of their capital in dollars on the local market,"
Lutereau said.

"Investors are starting to have more confidence in these types of
instruments and the pension fund system [AFJP] keeps generating
liquidity and that liquidity has to go somewhere," he added.

"At this moment, bond issues in dollars are a good alternative
for pension fund investors," he continued.

Investors can either buy the bonds with dollars or with pesos at
the current exchange rate.

"The exchange rate is about US$3.15 now and if nothing strange
happens between now and the elections in April, there shouldn't
be big changes in 2003," the Pecom source said.

          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          Jorge Gregorio C. Perez Companc, Chairman
          Oscar Anibal Vicente, Vice Chairman

ROYAL AHOLD: Pension Fund Commences Class Action Lawsuit
Schoengold & Sporn, P.C. ( that
the New York Hotel Trades Council and Hotel Association of New
York City, Inc. Pension Fund (the "Fund") has commenced a class
action lawsuit against Royal Ahold NV ("Ahold" or the
"Company")(NYSE: AHO) and certain of its key officers and
directors in the United States District Court for the Southern
District Court of New York on behalf of all purchasers of Ahold
securities including American Depositary Receipts ("ADRs") of
Ahold during the period between May 15, 2001 and February 24,
2003 (the "Class Period"). If you purchased Ahold securities
during the Class Period and would like to join forces with the
Fund in pursuing securities claims against Ahold, you may visit
our website at http://www.spornlaw.comor contact the Fund's
attorneys at Schoengold & Sporn, toll free at (866) 348-7700 or
via e-mail at However, please
note that the deadline to seek lead plaintiff status in this case
expires on April 28, 2003.

The complaint charges defendants with violations of Sections
10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-
5 promulgated thereunder. The complaint alleges that during the
Class Period, defendants issued to the investing public false and
misleading financial statements and press releases concerning the
Company's publicly reported earnings and net income, and that the
Company failed to disclose material information necessary to make
its prior statements not misleading. A copy of the complaint
filed in this action can be viewed on Schoengold & Sporn's
website at:

On February 24, 2003, Ahold shocked the market by announcing that
its "net earnings and earnings per share under Dutch GAAP and
U.S. GAAP will be significantly lower than previously indicated
for the year ended December 29, 2002," and that operating
earnings for fiscal years 2001 and 2002 have been overstated by
at least U.S. $500 million. The Company also stated that there
will be a restatement of Ahold's financial statements for fiscal
year 2001 and the first three quarters of fiscal year 2002. In
addition, it was revealed that there is a pending investigation
of Ahold's Argentine subsidiary Disco concerning the "legality of
certain transactions and the accounting treatment." According to
the press release, the release of its fiscal year 2002 results
scheduled for March 5, 2002 will be delayed indefinitely. In
response to this shocking announcement, the price of Ahold ADRs
declined sharply, falling approximately 61% from $10.69 per share
to close at $ 4.16 per share on the 24th.

If you purchased Ahold securities during the Class Period and
either sold those securities at a loss or still hold them, you
are eligible to join this action to pursue your claims and
request that the Court appoint you as a lead plaintiff. To do so,
please contact Schoengold & Sporn, toll free at 866-348-7700 or
via e-mail at However, you
must do so before April 28, 2003.

Schoengold & Sporn was established in 1962 and has specialized in
securities fraud litigation for over 35 years. The firm was
credited by the Wall Street Journal for its work in the Wedtech
Securities case, which was settled for $77.4 million, as follows:

"$77.5 million settlement . . . reached in a securities fraud
case stemming from the Wedtech scandal . . . The settlement with
29 defendants . . . is believed to be one of the largest ever in
a civil . . . case. . . 'This is a global settlement,' said
Samuel Sporn, a plaintiffs' attorney . . . . Mr. Sporn said the
settlement represents almost half of the more than $160 million
in stocks and bonds that Wedtech sold to the public between 1983
and 1986."

If you would like to further discuss your rights or receive more
information, you may call collect or otherwise contact the
undersigned, who will be pleased to assist:

CONTACT:  Jay P. Saltzman, Esq.
          Ashley Kim, Esq.

          SCHOENGOLD & SPORN, P.C.
          19 Fulton Street, Suite 406
          New York, New York 10038
          Tel: (212) 964-0046
          Fax: (212) 267-8137
          Toll Free: (866) 348-7700

(Class Action Reporter, February 28, 2003, Vol.5, No.42)

ROYAL AHOLD: Deloitte Served With Class Action Complaint
Wolf Haldenstein Adler Freeman & Herz LLP announced that it
served Deloitte Touche Tohmatsu with the class action complaint
filed on behalf of Royal Ahold investors.

Deloitte Touche Tohmatsu was named as a defendant in the first
class action complaint filed in the United States District Court
for the Southern District of New York by Wolf Haldenstein on
behalf of purchasers of the securities of KONINKLIJKE AHOLD N.V.
d/b/a ROYAL AHOLD, Inc. ("AHOLD" or the "Company") (NYSE: AHO)
between May 15, 2001 and February 21, 2003, inclusive, (the
"Class Period") against defendants AHOLD, certain of its officers
and directors, and its accountant, Deloitte Touche Tohmatsu.

The case name is Manson v. Koninklijke Ahold N.V., et al. [03-cv-
1243] and is before Judge Chin.

The complaint alleges that defendants violated the federal
securities laws by issuing materially false and misleading
statements throughout the Class Period that had the effect of
artificially inflating the market price of the Company's
securities. A copy of the complaint filed in this action is
available from the Court, or can be viewed on Wolf Haldenstein's
website at:

During the Class Period, defendants issued many statements and
filed quarterly and annual reports with the SEC which depicted
the Company's net income and financial performance. The complaint
alleges that these statements were materially false and
misleading because they omitted and/or misrepresented several
undesirable facts, such as that, during the Class Period, AHOLD
had significantly overstated its operating earnings for its U.S.
Foodservice division. The complaint further alleges that the
Company lacked sufficient internal controls resulting in an
inability to determine the true financial condition of AHOLD,
which lead to the value of the Company's net income and financial
results being materially overstated at all pertinent times.

On February 24, 2003, before the market opened for trading, AHOLD
announced that it discovered over $500 million in "overstatements
of income related to promotional allowance programs", requiring
the Company to restate its previously-issued financial reports
for fiscal years 2001 and 2002. Following this report, shares of
AHOLD declined over 60%, to close at $4.16 per share, on volume
of more than 16 million shares traded, or nearly thirty times the
average daily volume.

If you are a member of the class described above, you may, not
later than April 28, 2003, move the Court to serve as lead
plaintiff of this case. A lead plaintiff is a representative
party that acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court
must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one
or more class members may together serve as "lead plaintiff."
Your ability to share in any recovery is not, however, affected
by your decision whether or not to serve as a lead plaintiff. You
may retain Wolf Haldenstein, or other counsel of your choice, to
serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm
has approximately 60 attorneys in various practice areas; and
offices in Chicago, New Jersey, New York City, San Diego, and
West Palm Beach. The reputation and expertise of this firm in
shareholder and other class litigation has been repeatedly
recognized by the courts, which have appointed it to major
positions in complex securities multi-district and consolidated

CONTACT:  Fred Taylor Isquith, Esq.
          Gustavo Bruckner, Esq.,
          Michael Miske
          George Peters
          Derek Behnke

          270 Madison Avenue
          New York, New York 10016
          Telephone: (800) 575-0735

(Class Action Reporter, February 28, 2003, Vol.5, No.42)

ROYAL AHOLD: Cohen, Milstein, Hausfeld & Toll Files Class Action
The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has
filed a lawsuit on behalf of its client against Royal Ahold
Corporation ("Ahold") (NYSE:AHO) in the United States District
Court for the Eastern District of Virginia, in Alexandria,
Virginia. Ahold's U.S. headquarters are located in Chantilly,

The lawsuit seeks recovery for investors who have lost money in
Ahold securities as a result of the recent announcement of
accounting irregularities and the resignation of the Company's
chief executive officer and chief financial officer.

On February 24, 2003, Ahold stunned the market when it disclosed
that operating earnings for fiscal year 2001 and expected
operating earnings for fiscal year 2002 were overstated by an
amount that the company believes may exceed $500 million. The
overstatements of income discovered to date will require the
restatement of Ahold's financial statements for fiscal year 2001
and the first three quarters of fiscal year 2002. As disclosed by
the Company, and as alleged in the Complaint, during the 2002
fiscal year-end audit for Ahold's U.S. Foodservice subsidiary,
significant accounting irregularities were discovered in the
recognition of income, including prepayment amounts related to
U.S. Foodservice's promotional allowance programs. In light of
the disclosure, Ahold President and Chief Executive Officer, Cees
van der Hoeven, and Chief Financial Officer, Michael Meurs, will

In response to the disclosure of Ahold's true financial
condition, its ADRs plummeted from a close of $10.69 on February
21, 2003 to as low as $3.60 per ADR when trading resumed Monday,
February 24, 2003. The decline represents a one day loss of over

If you purchased or acquired Ahold securities during the Class
Period, you may, no later than April 28, 2003, move to be
appointed as a Lead Plaintiff. You may contact attorneys at Cohen
Milstein to discuss your rights regarding the appointment of Lead
Plaintiff and your interest in the class action. You may also
retain counsel of your choice. To be a member of the class,
however, you need not take any action at this time.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant
experience in prosecuting investor class actions and actions
involving securities fraud. The firm has 47 attorneys in
Washington, D.C., Seattle, New York and Chicago, and is active in
major litigation pending in federal and state courts throughout
the nation. You may visit the firm's website at

CONTACT:  Steven J. Toll
          Katrina Jurgill

          1100 New York Avenue, NW
          Suite 500 - West Tower
          Washington, DC 20005
          Telephone: 888/240-0775 or 202/408-4600

(Class Action Reporter, February 28, 2003, Vol.5, No.42)


C&W: Firing 65 Barbados Employees
In accordance with telecom company Cable & Wireless' streamlining
efforts, the Company announced that it will be sending home 65 of
its Barbados employees, reveals RJR News. The Company may also
remove another 60 workers this year, as the Company prepares for
the broadening of the market.

Donald Austin, president of C&W said that the job cuts will
affect all departments.

More than 300 C&W employees in the country walked off their jobs,
earlier this month, in protest of the Company's plans to retrench
the 60 employees, and the severance package terms.

Mr. Austin said the Company was expecting workers to enquire
about voluntary separation packages, as nine workers have asked
about it.

CONTACT:  Cable & Wireless PLC
          124 Theobalds Road
          WC1X 8RX
          Phone:  +44 (0)20 7315 4000
          Fax:  +44 (0)20 7315 5000
          Home Page:
          Sir Ralph Robins, Non Executive Chairman
          Sir Winfried W. Bischoff, Non Executive Deputy
          Graham M. Wallace, Chief Executive
          Robert E. Lerwill, Executive Director Finance


TYCO INTERNATIONAL: Investors' Ad Chides Company
Concerned about loss of shareholder rights and long-term
investment returns, a cross-section of U.S. institutional
investors, state treasurers and labor unions took out a full-page
ad in The Wall Street Journal Thursday urging Tyco and other
expatriate companies to "Come Home to America" from their
offshore tax havens.

"Ahh, Bermuda," says the ad. "A nice place for a vacation... but
should U.S. companies take legal refuge there?"

The ad comes less than a week before Tyco International
shareholders are to vote on a petition to reincorporate the
Bermuda-chartered company on U.S. soil and only two days after a
leading proxy policy advisor recommended that shareholders vote
in favor of the proposal.

"What companies like Tyco really are seeking with their sham
offshore mail drops is legal shelter from their own
shareholders," said Sean Harrigan, president of the California
Public Employees' Retirement System. "This ad is intended to
demonstrate to shareholders that expatriation has direct,
detrimental impacts for investors."

"Tyco and the others still have much work to do before they
restore investor confidence and increase shareholders' legal
rights. The only way for shareholders to truly hold Tyco
accountable is for the company to reincorporate in the U.S.,"
said American Federation of State, County and Municipal Employees
(AFSCME) President Gerald W. McEntee, whose union is sponsoring
the Tyco shareholder resolution.

The ad, which appeared in eastern editions of the Journal, noted
that offshore incorporation also has economic downsides. Support
is building in Congress and in a growing number of states, for
example, to prohibit government contracts with expatriate firms.

"This practice of expatriation has direct, detrimental effects on
shareholders," said California State Treasurer Phil Angelides,
who is sponsoring just that type of legislation in his state. "It
represents -- to millions of shareholders -- the type of
deceptive corporate practice that has shaken the financial
markets, harmed taxpayers and pensioners, and damaged our

On Tuesday, Institutional Shareholder Services (ISS) recommended
a vote in favor of the AFSCME resolution, because of its
disappointment in the board's failure to properly assess this
very important issue on shareholders' behalf. ISS is the world's
most influential provider of proxy voting and corporate
governance services to 750 institutional investors throughout
North America and Europe.

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

Connecticut State Treasurer Denise L. Nappier, another
participant in the ad, agreed: "Companies can no longer turn a
deaf ear to this issue. Shareholders rights are at risk when
companies incorporate offshore, and potential changes in tax law
could reduce even further the perceived advantages of overseas

In addition to several major labor unions, signers on the ad
included New York City Comptroller William Thompson Jr. on behalf
of the New York City retirement systems and New York State
Comptroller Alan G. Hevesi and the New York State Common
Retirement Fund.

While the ad appeared Thursday in eastern editions of The Wall
Street Journal, people in other regions can see it at

For more information, you also may contact any of the following:

California State Teachers' Retirement System

Sherry Reser (916) 229-3258

California State Treasurer's Office

Mitchel Benson (916) 653-4052

Connecticut State Treasurer's Office

Bernard Kavaler (860) 702-3277


Following the downgrade of Bolivia's sovereign long-term local
currency rating to 'B' from 'B+', Standard & Poor's Ratings
Services said Thursday that it downgraded two Bolivian banks. The
local and foreign currency counterparty credit ratings on Banco
Santa Cruz S.A. and Banco Mercantil S.A. were lowered to 'B/C'
from 'B+/B'. The outlook for both banks is negative, reflecting
the negative outlook on the sovereign ratings.

"In the past five years, the operating environment in Bolivia has
been deteriorating, making banking more difficult in a country
that already poses big challenges to its financial institutions,"
said credit analyst Carina Lopez. In this context, bank ratings
remain constrained by the rating of the sovereign.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118
           Gabriel Caracciolo, Buenos Aires (54) 114-891-2100

CRE: S&P Lowers Ratings to 'B' from 'B+'
Standard & Poor's Ratings Services said Thursday that it lowered
its long-term local and foreign currency credit rating on
Bolivian electric distributor Cooperativa Rural de
Electrificaci¢n Ltda. (CRE) to 'B' from 'B+', following a similar
rating action on the Republic of Bolivia. The outlook remains

The downgrade of the ratings of the Republic of Bolivia reflects
the increased social tensions, which weaken the government's
already narrow base of support and capacity to introduce and
implement policies.

This diminishing room to maneuver occurs at a critical time as
near-term fiscal and financing challenges exceed expectations.
For more details see Standard & Poor's media release, "Republic
of Bolivia Ratings Lowered; Outlook Still Negative," dated Feb.
26, 2003.

"The deteriorating credit quality of the sovereign directly
affects CRE, which is subject to both regulatory risk and the
challenges of operating in Bolivia's weakening economic
environment," said credit analyst Sergio Fuentes. "In fact, CRE's
major weakness is the relatively high regulatory risk, which is
evidenced by the government's intervention in the tariff-setting
mechanisms," he added.

The negative outlook reflects the more adverse economic
environment that could affect electric demand and collections,
challenging the company's ability to maintain a healthy financial
profile and operations at their current levels.

CRE is a cooperative that distributes electricity to
approximately 225,000 customers in the city of Santa Cruz and in
the rural communities throughout southeast Bolivia. CRE's 40-year
concession contract, which was signed in 1999, includes tariff
formulas based on energy, transmission, and distribution costs.

ANALYSTS:  Luciano Gremone, Buenos Aires (54) 11-4891-2143
           Sergio Fuentes, Buenos Aires (54) 114-891-2131
           Pablo Lutereau, Buenos Aires (54) 114-891-2125


CEMIG: Shareholders Appoint New Directors
Companhia Energetica de Minas Gerais - CEMIG - (NYSE: CIG; BOV:
CMIG4, CMIG3 and LATIBEX: XCMIG), one of Brazil's largest energy
companies, announced Thursday that its new Board of Directors was
appointed at the Extraordinary General Shareholders' Meeting held

Appointed by the shareholder State of Minas Gerais:
      Wilson Nelio Brumer - Chairman
      Djalma Bastos de Morais
      Francelino Pereira dos Santos
      Antonio Adriano Silva
      Flavio Jose Barbosa de Alencastro
      Maria Estela Kubitschek Lopes
      Alexandre Heringer Lisboa

Appointed by the shareholder Southern Brasil Participacoes
      Oderval Esteves Duarte Filho
      Marcelo Pedreira de Oliveira
      Joao Bosco Braga Garcia
      Sergio Lustosa Botelho Martins

CONTACT:  Companhia Energetica de Minas Gerais
          Luiz Fernando Rolla, Investor Relations Officer
          Phone: +55-31-3299-3930
          Fax: +55-31-3299-3933
          The Anne McBride Company
          Vicky Osorio
          Phone: +1-212-983-1702
          Fax: +1-212-983-1736

          Web Site:

A U.S. government official blamed the state and city governments
of Sao Paulo for causing AES Corp. troubles in Brazil.

According to the official, the state government of Sao Paulo and
the city of Sao Paulo, as well as other municipalities in the
surrounding areas, have consistently missed payments to the

The Brazilian government owes BRL1.14 billion to Eletropaulo
Metropolitana, Brazil's largest power distributor, which AES

The official's comments come in the middle of AES' battle to make
a US$336-million payment owed for the 1998 purchase of
Eletropaulo. The debt was due to expire Friday (Feb. 28) and AES
was reported to be seeking to extend the payment until April 15.

If AES doesn't get an extension the government could exercise a
right to take over Latin America's largest power distributor.

But according to Sergio Tamashiro, a utility analyst at Uniao de
Bancos Brasileiros SA in Sao Paulo, "another extension isn't
going to solve much."

They still "don't have the cash flow" to pay their debts in
Brazil, Tamashiro said.

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

          AES Corp., Arlington
          Kenneth R. Woodcock, 703/522-1315
          Web site
          Investor relations:

EMBRATEL: Signs Financing Program
Embratel Participacoes S.A. (Embratel Participacoes or the
"Company") (NYSE: EMT; BOVESPA: EBTP3, EBTP4), the Company that
holds 98.8 percent of Empresa Brasileira de Telecomunicacoes S.A.
("Embratel"), announced on Thursday that Embratel has
successfully concluded the extension of current maturities of
long-term debt.

Embratel signed agreements with Brazilian and foreign banking
institutions to roll over debt maturing in 2003 and the first
half of 2004 for a period of two years. "The signing of this
transaction demonstrates Embratel's financial strength during
tight market conditions and commitment to be a leader in the
telecommunications market," said Jorge Rodriguez, President of

The extended maturities will ensure Embratel continues to invest
in quality services and network to serve corporate, government
and residential customers.

Under the agreement, creditors are given the choice to convert,
at the original maturity date, foreign currency denominated loans
into reais. Thus the proportion of reais denominated debt may
increase in the future reducing Embratel's financial cost
exposure to currency fluctuations. Interest on the real
denominated rolled over debt will be CDI + 4 percent p.a.. The US
dollar and yen debt will pay interest of Libor + 4 percent p.a..
These interest rates will only be applicable when the debt is
actually rolled over (at the original maturity date). Therefore,
the impact of the new interest rates on the overall cost of debt
will occur over time, depending whether creditors choose to
convert to reais. Embratel has retained the ability to make early
payments from excess cash flow or new debt as market conditions

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is uniquely
positioned to be the country's only true national local service
provider for the corporate market. Service offerings: include
advanced voice, high-speed data communication services, Internet,
satellite data communications, corporate networks and local voice
services for corporate clients. Embratel is uniquely positioned
to be the all-distance telecommunications network of South
America. The Company's network has countrywide coverage with
28,868 km of fiber cables comprising 1,068,657 km of optic

Note: Except for the historical information contained herein,
this news release may be deemed to include forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that involve risk and
uncertainty, including financial, regulatory environment and
trend projections. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. The important
factors that could cause actual results to differ materially from
those in the forward-looking statements herein include, without
limitation, the Company's degree of financial leverage, risks
associated with debt service requirements and interest rate
fluctuations, risks associated with any possible acquisitions and
the integration thereof, risks of international business,
including currency risk, dependence on availability of
interconnection facilities, regulation risks, contingent
liabilities, collection risks, and the impact of competitive
services and pricing, as well as other risks referred in the
Company's filings with the CVM and SEC. The Company does not
undertake any obligation to release publicly any revisions to its
forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.

CONTACT:  Silvia M.R. Pereira
          Investor Relations
          Phone: (55 21) 2121-9662
          Fax: (55 21) 2121-6388

SKY BRASIL: Moody's Lowers Ratings, May Undertake Further Cuts
Moody's Investors Service downgraded SKY Brasil Servicos Ltda.'s
(SKY; formerly NetSat Servicos Ltda) senior implied rating to
Caa2 from Caa1 and senior unsecured issuer rating to Ca from
Caa2. The ratings remain under review for possible downgrade,
including the unchanged Caa1 rating of the Company's US$200
million of 12.75% senior secured notes due August 5, 2004.

The actions were taken on concern that the Company's balance
sheet may need to be restructured, that current and likely
projected operations are inadequate in terms of supporting the
present capitalization structure, and that credit losses may
subsequently ensue over the forward rating horizon, Moody's

"More specifically, the interim rating actions incorporate the
company's continuing negative operating cash flow and ongoing
requisite equity sponsor annual capital contributions totaling
US$70-80 million to fund debt service and subscriber growth, in
addition to the now nearer-term refinancing risk related to the
maturity of its senior secured debt in August 2004."

"In addition, the downgrades reflect the likely continued lack of
capital contributions from Globopar and an expected recovery rate
for all existing obligations of the company of less than full
value in an event of default scenario, particularly if further
support from equity sponsors is not forthcoming."

Sky registered US$442 million in total debt at the end of
September 2002. Of the amount, US$207 million is related to the
senior secured notes due 2004 and US$234 million to PanAmSat
lease annuity financing for satellite transponders.

EBITDA for the 12-month period ending September 30, 2002 was
negative US$9.6 million, compared to a EBITDA deficit of US$43.2
million for the same period in 2001. Moody's observes that the
company is EBITDA positive when the cost of new subscriber
acquisition is excluded. Moody's estimates that SKY's current
free cash flow is approximately negative $80 million and we
expect that it will remain negative for the next 2-3 years,
assuming a near-term successful programming contract
renegotiation. Without programming cost renegotiation, free cash
flow would likely remain negative for more than five years.

Sky Brasil Servi‡os Ltda. is the leading direct-to-home pay
television service provider in Brazil serving approximately
732,000 subscribers. The company is headquartered in Sao Paulo.

TCP: Concludes The Issue Of Promissory Notes
Telesp Celular Participa‡oes S.A ("TCP"), (NYSE: TCP; BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)), the Brazilian holding company
that owns 100% of Telesp Celular S.A., the leading mobile
operator in the state of Sao Paulo in Brazil, and Global Telecom
S.A., a B-band mobile operator in the Brazilian states of Santa
Catarina and Paran , announced Thursday a successful placement of
promissory notes in the
Brazilian market, with the following details:

Issuer: Telesp Celular Participa‡oes S.A.

Securities Offered: R$ 700,000,000.00 (seven hundred million
Reais) on the issue date.

Face value: R$ 1,000,000.00 (one million Reais) on the issue

Number of Notes: 700 (seven hundred) promissory notes

Issue Date: 02/25/2003.

Maturity: 178 days after the issue date.

Interest Rate: 111% of CDI (Brazilian Interbank Deposit Rate).

Trading Market: NOTA/CETIP System

Guarantee: Telesp Celular S.A.

Use of Proceeds: The proceeds will be used to cancel short term
debt due to recent acquisition of Global Telecom's remaining
shares and the restructuring of existing liabilities.

Settlement Date: 02/25/2003

The underwriters were Esp¡rito Santo Investment, BBV, Santander,
Bradesco and Unibanco.

CONTACTS:  Maria Paula Canais - Investor Relations Officer
           Tel: (55 11) 3059-7081

           Edson Alves Menini - Investor Relations Adviser
           (55 11) 3059-7531

           Fab¡ola Michalski
           Tel: (55 11) 3059-7975

           Cl udio Wenzel Lagos
           Tel: (55 11) 3059-7480


VARIG-TAM: Pre-Merger Moves Encounter Hurdle
Pre-merger moves by Viacao Aerea Rio Grandense SA and TAM Linhas
Aereas, Brazil's two largest airlines, hit a snag after the
country's top antitrust body told them to postpone their plans
until they get formal approval from regulators.

Varig and TAM, both suffering from rising costs and a sharp drop
in demand for flights, announced in early Feb. that they had
agreed to work toward a merger of their operations. Subsequently,
they rolled out plans to reduce competing flights on several of
their busiest routes.

At a joint press conference last week, Varig and TAM said that,
beginning March 10, they will trim flights on nine of their
principal domestic routes to 113 from 155 at present. The pair
will share passengers on the remaining 113 flights equally,
according to the terms of a freshly inked codesharing agreement.

But according to Dow Jones, antitrust authorities are putting the
brakes on the process, at least until they've had a chance to
render a decision on a merger that would put almost 70% of
Brazil's domestic air traffic in one carrier's hands.

"They can share routes for the time being, but they can only
share price information, marketing and mileage programs after the
deal is approved," said Joao Grandino, the president of Brazil's
antitrust authority.

Officials of Varig and TAM signed a document to that effect with
Cade, as the antitrust authority is known.

The airlines also pledged that they won't launch any new
codesharing programs or return any leased aircraft until their
merger plan is approved. The codesharing programs already
announced will take effect March 10, as planned.

Cade will hand down a second decision March 19 after further
studying Varig and TAM's merger plan. Details are still thin as
to what exactly the merger plan entails.

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

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

              KPMG Brazil
              Belo Horizonte
              Rua Paraba, 1122
              13th Floor
              30130-918 Belo Horizonte MG
              Telephone 55 (31) 3261 5444
              Telefax 55 (31) 3261 5151
              SBS Quadra 2 BL A N 1
              Edificio Casa de Sao Paulo SL 502
              70078-900 Braslia - DF
              Telephone 55 (61) 223 2024
              Telefax 55 (61) 224 0473

              BAIN & CO
              Primary Contact: Wendy Miller
              Two Copley Place, Boston, MA 02116
              Phone: +1-617-572-2000
              Fax: +1-617-572-2461

              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001


EMPRESAS IANSA: 'BB+' Rating Withdrawn
Standard & Poor's Ratings Services said Thursday that it withdrew
its 'BB+' corporate credit rating and negative outlook on Chilean
sugar producer Empresas Iansa S.A. at the company's request.

ANALYSTS:  Silvina Aldeco Martinez, Buenos Aires
           (54) 114-891-2126

           Ivana Recalde, Buenos Aires
           (54) 114-891-2127


ALESTRA: Receives Senior Note-related Extensions
Alestra, S. de R.L. de C.V. ("Alestra") announces an extension of
its pending cash tender offers, exchange offers and consent
solicitations for all outstanding principal amount of its 12 1/8%
Senior Notes due 2006 and 12 5/8% Senior Notes due 2009.

Alestra intends to redistribute a revised prospectus dated
February 28, 2003 that will provide updated financial information
which was not included in its prospectus dated February 13, 2003
and which will include its audited financial results for the year
ending December 31, 2002.

The expiration date for the Offers has been extended from 11:59
p.m. New York City time on March 13, 2003 to 11:59 p.m. New York
City time on March 27, 2003. The early consent payment deadline
has also been extended from 11:59 p.m. New York City time on
February 27, 2003 to 11:59 p.m. New York City time on March 13,
2003. If you have already tendered your notes in the exchange
offers or the cash tender offers you may withdraw your tendered
notes at any time prior to March 13, 2003, the new early consent
payment deadline.

Prospectuses will be mailed to holders of record of the Senior
Notes. Holders will also be able to obtain copies of the
materials by calling the Information Agent, D.F. King at (212)

A Post Effective Amendment No. 1 to Form F-4 registration
statement relating to the new securities has been filed with the
Securities and Exchange Commission. These new securities may not
be sold nor may offers to buy be accepted prior to the time
Alestra has obtained the necessary authorizations from the
Comision Nacional Bancaria y de Valores de Mexico. This release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall any sale of these securities in Mexico or
in any U.S. state or territory in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of Mexico and any such U.S. state or
territory. This announcement and the cash tender offers, exchange
offers, and consent solicitations which are the subject hereof
are not being made in any jurisdiction in which, or to any person
to whom, it is unlawful to make such announcement and /or cash
tender offers, exchange offers and consent solicitations under
applicable securities laws. This announcement shall not under any
circumstances create any implication that the information
contained herein is correct as of any time subsequent to the date
hereof, or that there has been no change in the information set
forth herein or in the affairs of Alestra or any of its
affiliates since the date hereof. No indications of interest in
the offers are sought by this press release.

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:  Morgan Stanley & Co. Incorporated
          Heather Hammond
          Phone: 1-800-624-1808 (domestic US)
          Phone: 11-212-761-1893 (international callers call
          Alestra, S. De R.L. de C.V.
          Investor Relations:
          Alberto Guajardo
          Phone: (52-818) 625-2219

CFE: Faces MXN2M Fine For Emission Violations
Mexico's state power company CFE failed to meet any of its
pledges to reduce emissions at its Francisco Perez Rios
thermoelectric plant at Tula in Hidalgo state, reports Business
News Americas.

As a result, environmental agency Profepa slapped the CFE with a
MXN2-million fine. Worse still, the agency could close some of
the plant's five units, Profepa's Hidalgo state representative
Ruben Olvera y Aguilar indicated.

Francisco Perez Rios has five coal-fired 300MW units, which
started operations between 1976 and 1982.

          Rio Rodano 14, Col. Cuauhtemoc
          06598 Mexico, D.F., Mexico
          Phone: +52-55-5229-4400
          Fax: +52-55-5310-4614
          Web Site:
          Alfredo Elias Ayub, General Director
          Arturo Hernandez Alvarez, Director of Operations
          Francisco J. Santoyo Vargas, Director of Finance

CINTRA: Reports Fourth Quarter And Year 2002 Results
(All figures are expressed in pesos of equivalent purchasing
power as of December 31th, 2002, unless specified otherwise.
Financial Statements meet Mexican GAAP, and are not audited.)

Mexico City, February 26th 2003.- CINTRA, S.A. DE C.V.,
(BMV:CINTRA) Mexico's leading air transportation system reported
its non audited results for the fourth quarter 2002, emphasizing
the following:

            Fourth semester

-         Load factor, 59.3%
-         Total income 7,258 million pesos
-         EBITDAR, 8.1% of revenue
-         Operating loss 387 million pesos
-         Net loss 403 million pesos

CINTRA reported total revenues for this quarter of Ps. 7,258
million pesos, which represents a 6.8% increase with respect to
4Q 2001. EBITDAR was Ps. 591 million pesos, higher than 568
million pesos in 4Q 2001. The company reported an operating loss
of Ps. 387 million pesos, better than the same period last year
in 12.6% and a net loss of Ps. 403 million pesos compared to Ps.
578 million pesos in the fourth quarter 2001. The cash generated
during this quarter was 102 million pesos.

The income increase is as result of  a short growth in the
international market and the parity of the Mexican peso in real
terms, compensated with the economic deceleration in Mexico and
the lower  rates due to the unfair competition from domestic

The ASK's and RPK's reported 10,052 and 5,959 million
respectively. While  capacity increased 2.7%, passenger revenue
did in 5.1% quarter over quarter.

About the loan approved by the Congress for all the national
airlines during the fourth quarter last year, we received the
second tranch equivalent to Ps. 291 million pesos.

The load factor was 59.3%, higher in  1.5 percentage points than
the same period last year.

Domestic passenger revenues were Ps. 3,675 million pesos, 0.6 %
lower than the last quarter 2001.

International passenger revenues were Ps. 2,682 million pesos,
19% higher than those in the same quarter 2001. However, in
dollars reported 263 million, 13.4 % higher than the 4Q 2001, due
to the increase in demand in  7.2%, and the yield.

Cargo revenues were Ps. 319 million pesos, 2.7 % higher than
those reported in the same period last year, due to the parity of
the Mexican peso in real terms.

During the quarter, Mexicana reopened it's route Mexico - Buenos
Aires, which according to the strategic sales plan will operate
during high seasons. Likewise, started operations in the route
Mexico - Vancouver. Regarding Star Alliance, the most recent
incorporations were ASIANA, LOT and SPANAIR.

Operation Costs that were Ps. 6,666 million pesos, 7.1 % higher
than the fourth quarter 2001. Personnel cost was Ps. 2,391
million pesos, 1% higher in real terms than last year, as a
result of the renegotiation of the labor contracts and a
reduction in the number of personnel during the last months of
the year. Jet fuel expenditure was Ps. 1,015 million pesos, 26.3%
higher than the fourth quarter 2001, due to the increase in the
unit cost. Service to passengers was Ps. 217 million pesos, 7.4 %
higher due to the increase in the number of transported
passengers compensated with austerity measures. Commissions to
agents increased in 5.7% to Ps. 547 million pesos as a result of
higher revenues, however, we should consider that revenues
increased in 6.8%. Insurance reached Ps. 162 million pesos due to
the increase in the liability premium. Regarding the airport
services costs, during the fourth quarter 2002 we made a deal
with Grupo Aeroportuario Centro - Norte, and we will have
reductions since 2003 on, meanwhile, negotiations with Grupo
Aeroportuario del Sureste and Grupo Aeroportuario del Pac¡fico
will start on the first quarter 2003.

The ASK / cost for the period October - December 2002 increased
3.0% with respect to the same period last year.

Aeromexico formalized arrangements to change fifteen DC-9
aircraft for rent Boeing B-737 and, Mexicana as part of its fleet
renovation program sold four Boeing B-727, two to the Ministry of
National Defense (SEDENA), one to the Federal Police and one to

EBITDAR was Ps. 591 million pesos, equivalent to 8.1 % of the
total revenues, during the same period last year it represented
Ps. 568 million pesos,  8.4 % of the total revenues.

CINTRA reported an operation loss of Ps. 387 million pesos, and a
net loss of  Ps. 403 million pesos.

Annual Consolidated Results for 2002.
In 2002, CINTRA reached total revenues of Ps.28,660 million
pesos, 5.1% lower than 2001 in real terms. EBITDAR was Ps. 2,997
million pesos, or 10.5 % of revenues. Negative operating margin
of Ps. 892 million pesos and net loss of Ps. 1,660 million pesos
represent -3.1% and -5.8% of the total revenues, respectively.

Demand decreased 8.1% and capacity did in 4.5% year over year, so
the load factor decreased 2.4 percentage points, reaching 61.0%.
and the yield kept the same level than last year. All this as a
result of the domestic airfares war, provoked by unfair
competition from other national airlines, the economic
deceleration in Mexico and the US, and the September 11th effect.

Continuing with the efforts and strategies to reduce Operation
costs, those decreased 5.4% compared to last year. Among other
adopted measures during 2002, Mexicana, Aeromexico, Aerolitoral
and Aerocaribe / Aerocozumel started their fleet renovation
programs, which represent a considerably reduction in jet fuel
expenditure. Also, strong austerity measures were taken, however,
high airport services costs, insurances, security and the
devaluation of the Mexican peso, strongly affected the company's
results, the main items are rents, jet - fuel, insurances and

Net loss for the year was Ps. 1,660 million pesos, equivalent to
Ps. 1.67 Pesos in loss per share.

The relevant events during the year for Cintra's companies were:

- General

       - During the first quarter the Corporate structure was
         review, originating two groups: Grupo Aeromexico
         integrated by Aeromexico and Aerolitoral; and Grupo
         Mexicana de Aviacion, integrated by Mexicana de
         Aviacion, Aerocaribe / Aerocozumel and the companies
         where both groups are partners, SEAT, ITR, SABRE,
         Centro de Capacitacion Alas de America and Aeromexpress.

       - In May Cintra carried out a restricted invitation
         contest to selected the advisor on the coordination
         and promotion of the company's asset sale programs.

- Aeromexico

       - Obtained the authorization to replace fifteen DC-9
         airships with 15 Boeing B-737.
       - Increased its weekly frequencies to Chicago.
       - Incorporation of Alitalia in Skyteam which offers
         connection and interest points in Europe.

- Mexicana

       - In February Banco Inbursa granted Mexicana a loan of
         Ps. 1,000 million pesos to conclude the payment of its
         debt according to the accounts receivable securitization
         program in the United States of America.

       - As part of its fleet renovation program grounded
         twelve Boeing B-727 and acquired two Airbus A-319, two
         Airbus A-320, and one Boeing B-757.

       - Started its Share Code with ANA (All Nipon Airways)
         which offers short stand-by time in connection flights.

       - Started operations in the route Mexico - Guadalajara -
         Sacramento, four times a week.

       - In December opened the route Mexico - Vancouver.


       - At the end of the year started the overnight cleaning
         service at the Aeromexico hangar.

       - Implemented an automated system at a pilot station,
         which optimizes assignement of personnel to specific
         operations in real time, fair distribution of
         responsibilities and better work force planning, among

- Aerolitoral

       - Continued with its fleet renovation program,
         incorporating seven SAAB 340 and grounding ten Metro

       - Started operations in the route Loreto - La Paz -

       - Increased frequencies in the routes Hermosillo -
         Los Angeles, Hermosillo - Los Mochis and Guadalajara -

- Aerocaribe

       - Continued with its fleet renovation program, replacing
         four DC-9/15 with eight DC-9/31.

       - Grounded two J-32 and one Fokker 27.

       - Opened its route Guadalajara - Huatulco.

Cancelled the routes Cancun - Chetumal, Oaxaca - Puerto Escondido
and Huatulco - Oaxaca.

To see financial statements:

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


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

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

EMPRESAS ICA: Reports Unaudited 4Q02, Full Year 2002 Results
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction, and procurement
company in Mexico, announced Thursday its unaudited results for
the fourth quarter of 2002. ICA recorded fourth quarter revenue
of Ps. 2,061 million and an operating profit of Ps. 27 million.

ICA noted the following highlights:

- ICA's consolidated backlog at year-end year was Ps. 5,489
million, equivalent to 11 months of work at fourth quarter

- New contracts and contract extensions for Ps. 4,248 million
were obtained during the fourth quarter.

- Total debt as of the end of 2002 fell Ps. 821 million, or 14
percent, compared to the end of 2001. Debt fell Ps. 316 million
compared to the third quarter of 2002.

- ICA incurred long-term debt of Ps. 1,270 million during the
quarter, of which Ps. 452 million was used to refinance short-
term debt, and the balance was used to repurchase the convertible
bond and for general corporate purposes.

- US$ 70.6 million face value of ICA's convertible bond due 2004
was cancelled during the quarter. During the year a total of US$
73.4 million face value were repurchased and cancelled.

- Divestment of non-strategic assets was Ps. 580 million in the
fourth quarter and Ps. 1,542 million for the full year.

- General and administrative expense fell 37 percent in the
fourth quarter, compared to the same period of 2001, excluding
restructuring charges in the prior year period.

ICA recorded fourth quarter revenue of Ps. 2,061 million, 25
percent below the fourth quarter 2001 level. The overall
reduction in revenue reflects the lower level of work performed
by Civil Construction, as a result of delays in the bidding for
suitable projects, as well as the low levels of infrastructure
investment by both the public and private sectors. During the
fourth quarter, revenues from projects in Mexico represented 66
percent of total revenue, while revenue in foreign currency,
principally in dollars, accounted for 67 percent of total

Cost of sales during the quarter was Ps. 1,816 million, 44
percent below the Ps. 3,233 million registered during the same
period of last year. During the quarter, the company recorded an
additional provision of US $ 1.12 million for contract penalties
with the client on the Puerto Rico Coliseum, in San Juan, as a
result of delays in the completion of the project. To date, the
total provision has been US$ 15 million. Given that a part of the
delay resulted from client change orders, ICA has been
negotiating with the client. However, no agreement has yet been

General and administrative expenses in the fourth quarter of 2002
decreased 51 percent to Ps. 218 million, from Ps. 448 million in
the same period of 2001. The fourth quarter 2001 level included a
Ps. 100 million reserve for corporate restructuring expenses;
excluding the restructuring expense, the reduction in expenses
was 37 percent. Operating income in the fourth quarter of 2002
was Ps. 27 million, compared to a loss of Ps. 923 million during
the same quarter of 2001.

EBITDA generated in the fourth quarter of 2002 was Ps. 154
million, equivalent to a margin of 7.5 percent. EBITDA is
calculated as operating earnings plus depreciation and
amortization expense. The integral financing cost in the fourth
quarter of 2002 was Ps. 54 million, compared to Ps. 129 million
recorded in the fourth quarter of last year, and consisted of the

The reduction in integral financing cost resulted principally
from a lower level of debt. Included in interest expense for the
2002 period is Ps. 45 million of financial costs for non-bank
debt. This increased the weighted average interest rate to 14.2
percent, compared to 9.7 percent during the fourth quarter of
2001. Other Financial Operations recorded a loss of Ps. 23
million during the fourth quarter, which reflected the net effect
of gains generated from the discounted repurchase of the
convertible bond, the sale of the Bellas Artes parking garage and
the Veracruz grain terminal, and the loss on the sale of the Cabo
del Sol development on Baja California. The result also includes
employee severance payments of Ps. 52 million.

The tax provision in the fourth quarter of 2002 was Ps. 254
million, made up a Ps. 240 million increase in the reserve for
asset tax credits and Ps. 14 million for income tax. This reserve
reflects the judgment that Ps. 240 million of the asset tax
credits generated in prior years may not be able to be applied to
reduce future income tax obligations. The total amount of asset
taxes creditable was Ps. 1,896 million, and the total reserve was
Ps. 938 million as of December 31, 2002.

ICA recorded a fourth quarter profit of Ps. 8 million from its
participation in unconsolidated affiliates, including its
participation in the Caruachi hydroelectric project in Venezuela,
in the Central North Airport Group (through its operating company
SETA), and the environmental services company CIMA.

ICA recorded a net loss of majority interest of Ps. 297 million
in the fourth quarter of 2002, equivalent to a loss of Ps. 0.48
per share (US$ 0.28 per ADS) based on 621.56 million weighted
average shares outstanding. This compares with a net loss of
majority interest of Ps. 4,182 million, or Ps. 6.86 per share
(US$ 3.96 per ADS) recorded in the fourth quarter of 2001, based
on a weighted average of 621.56 million shares outstanding.


The projects that contributed most to construction revenues were:
the San Juan Metro and Puerto Rico Coliseum, both in San Juan,
Puerto Rico, and the Santa Martha Acatitla prison in Mexico City
(Civil Construction); the Altamira III and IV power plants, the
Mexicali power plant, and the Cadereyta and Poza Rica Pemex
projects (Industrial Construction); and Rodio's projects in
Portugal and Spain

Civil Construction revenues fell primarily as a result of the
reduction in the government's infrastructure investment budget,
lower levels of private sector construction spending, delays in
the bidding for suitable projects, and the subdivision of public
works into multiple, smaller contracts which have lower estimated

Operating loss in the segment is in part due to the contract
penalties for the
Coliseum of Puerto Rico project, as previously described.

Industrial Construction revenue decreased because of the mix of
projects in backlog. While some projects are being completed,
most are recent contracted and as a result will contribute to
revenue in future periods. The operating margin of 5.7 percent
reflects the mix of projects.

CPC-Rodio's results during the quarter primarily reflect the
conclusion of CPC projects in Argentina, costs for reducing
operations, as well as the difficult economic and operating
conditions in that country. These results are not completely
offset by the good performance of Rodio, which registered sales
of Ps. 384 million during the quarter.

Other Segments accounted for 24 percent of total revenue during
the quarter.

Real Estate and Housing revenue increased as a result of the sale
of land in Queretaro and Cancun. Housing registered significant
progress in pursuit of its objectives, with Ps. 172 million from
sales of moderate income housing alone, and generated an
operating profit of Ps. 8 million.

Infrastructure Operations results include the sale of land from
the Corredor Sur, as well as the operation of the Acapulco
Tunnel, the Corredor Sur, and the parking garages. In October
2002, ICA ceased operating the Caracas-La Guaira highway as a
result of the arbitration process which ICA began against the
Venezuelan authorities because of repeated breaches in the
concession contract. Alsur registered a decrease in activity due
to the sale of the Veracruz grain terminal, as well as delays in
harvests and poor weather.

Full Year 2002 Results
For the full year, ICA generated an operating profit of Ps. 149
million, with an operating margin of 1.9 percent, despite the 19
percent reduction in revenue.

EBITDA was Ps. 559 million for the year, with an EBITDA margin of
7.0 percent.

The net loss for the year was Ps. 1,323 million. The principal
factors in the loss were financial expense (Ps. 436 million),
severance expense (Ps. 114 million), and the tax provision (Ps.
564 million). The asset tax provision reflects the fact that the
asset tax (IMPAC) is calculated based on asset levels four years
before the date of the calculation, and is based on a tax-payer's
election under the provisions the Asset Tax Law.

ICA's backlog as of December 31, 2002 increased by Ps. 2,684
million, or 96 percent, compared to the third quarter of 2002.
New projects included in backlog are: IPP La Laguna for
Iberdrola, the Reynosa Cryogenic Plant for Pemex, the Chiapas
Bridge for the Ministry of Communications and Transport (SCT),
new Rodio contracts in Spain and Portugal, the Santa Martha
Acatitla prison for the Government of Mexico City, and buildings
in Reynosa for Pemex, among others.

During the fourth quarter, the Company signed a new agreement
with the SCT to complete the Chiapas Bridge. The agreement
includes changes in design and engineering and has a contract
value of Ps. 393 million, which will permit the completion of
this important infrastructure project.

At the end of the fourth quarter, projects in Mexico represented
87 percent of the total backlog, and private sector clients
represented 53 percent of the total.

As of December 31, 2002, ICA had cash and equivalents of Ps.
2,888 million, a reduction of Ps. 771 million compared to the Ps.
3,659 million in the same period of 2001. Of this, 68 percent is
in ICA's subsidiaries ICA Fluor Daniel and Rodio, and 28 percent
of the total reflects client advances. Payment of dividends by
these subsidiaries requires the approval of ICA's joint-venture

Accounts receivable were Ps. 1,743 million at the end of 2002, 23
percent below the Ps. 2,272 million at the end of 2001, as a
result of significant improvements in the processes of
estimating, billing, and collections, as well as the reduction in
work volumes. The improvement in processes also contributed to
the reduction in other accounts receivable of 68 percent, from
Ps. 1,919 million at the end of 2001 to Ps. 606 million at the
close of 2002.

The 14 percent reduction in long term assets resulted from the
divestment of subsidiaries and long term non strategic assets,
primarily the Punta Langosta cruise ship terminal, the
Guadalajara Business Center, the Bellas Artes parking garage, and
ICA's shareholding in Cabo del Sol.

Property, plant and equipment fell 42 percent during the year.
Despite the reduction, ICA believes it has ample capacity
undertake large-scale projects that the market could offer.

During the fourth quarter of 2002, ICA carried out divestments of
Ps. 580 million, which primarily reflects the sale of machinery,
ICA's stake in Cabo del Sol, the Veracruz grain terminal, and the
Bellas Artes parking garage. During 2002, ICA divested Ps. 1,542
million, and used the proceeds to repay debt and for working

Total debt as of December 31, 2002 was Ps. 5,061 million, a
reduction of Ps. 821 million, or 14 percent, compared to the same
period of 2001.

As of December 31, 2002, 22 percent of ICA's debt matures in less
than one year; 24 percent is securities debt; and 46 percent is
denominated in foreign currency, principally dollars. The latter
fell as a result of the refinancing in pesos of debt denominated
in dollars. During the quarter, ICA repurchased and cancelled US$
70.6 million of the convertible bond due in 2004, using funds
from the refinancing of Ps. 1,180 million announced in December.
US$ 73.6 million were repurchased, and US$ 73.4 million were
canceled during the year.

During the fourth quarter, short-term debt of Ps. 445 million was
refinanced to long-term debt.

Liquidity and Financial Ratios
The current ratio as of the end of the fourth quarter of 2002 was
1.11, compared to 1.08 in the same period of 2001; and the
interest coverage ratio (EBITDA/interest expense) was 1.22,
compared to (1.19) in the same period of 2001. ICA's leverage
ratio (total debt/equity) was 1.32 in the fourth quarter,
compared to 1.09 in the same period of 2001.

To see financial statements:

CONTACT:  Dr. Jos‚ Luis Guerrero
          (5255) 5272-9991 x2060

          Lic. Paloma Grediaga
          (5255) 5272-9991 x3470

          In the United States:
          Zemi Communications
          Daniel Wilson
          (212) 689-9560

GRUPO MEXICO: UK's Barclays Balks At Loan Arrangement
UK's Barclays Capital abandoned an arrangement to grant mining-
metals-transport conglomerate Grupo Mexico a loan, according to
local newspaper El Norte.

Last month, G-Mex announced that it had secured a US$225-million
one-year credit from Barclays to help it restructure US$850
million of debts G-Mex's mining unit Minera Mexico holds with a
syndicate of banks, with the group's railroad subsidiary Ferromex
acting as guarantor.

G-Mex said the credit would be repaid through a 10-year bond

Barclays, however, declined to provide the loan to the group
prompting G-Mex to start looking for other creditors. A new loan
could be secured in March, the paper said.

Meanwhile, G-Mex, which is the world's third-largest copper
producer, reported a lesser net loss in the fourth-quarter of
2002 due to rising copper prices.

The Company's loss narrowed to MXN820 million ($74 million) from
a loss of MXN1.271 billion a year earlier, according to Bloomberg
calculations based on full-year figures released to the stock
exchange. Sales slipped 0.1% to MXN5.82 billion from MXN5.83

          Avenida Baja California 200,
          Colonia Roma Sur
          06760 M,xico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                      Finance  President

GRUPO SIMEC: Releases Preliminary Unaudited Results For 2002
Grupo Simec, S.A. de C.V. (AMEX: SIM) ("Simec") announced
Thursday its preliminary (unaudited) results of operations for
the year ended December 31, 2002. Net sales increased 5% to Ps.
2,109 million in 2002 compared to Ps. 2,011 million in 2001.
Primarily as a result of the recording of an exchange loss in
2002 versus the recording of an exchange gain in 2001, Simec
recorded net income of Ps. 93 million in 2002 versus net income
of Ps. 242 million for 2001.

Simec sold 609,202 metric tons of basic steel products during
2002 as compared to 560,726 metric tons in 2001. Exports of basic
steel products increased to 80,179 metric tons in 2002 versus
48,385 metric tons in 2001. Additionally Simec sold 23,137 tons
of billet in 2002 as compared to 1,248 tons of billet in 2001.
Prices of finished products sold in 2002 decreased 5% in real
terms versus 2001.

Simec's direct cost of sales was Ps. 1,409 million in 2002, or
67% of net sales, versus Ps. 1,350 million, or 67% of net sales,
for 2001. Indirect manufacturing, selling, general and
administrative expenses (including depreciation) decreased 6% to
Ps. 442 million during 2002, from Ps. 471 million in 2001.

Simec's operating income increased 36% to Ps. 258 million during
2002 from Ps. 190 million in 2001. As a percentage of net sales,
operating income was 12% in 2002 and 9% in 2001.

Simec recorded other expense, net, of Ps. 15 million in 2002
compared to other income, net, of Ps. 64 million in 2001. In
addition, Simec recorded a reserve for income tax and employee
profit sharing of Ps. 27 million in 2002 versus a reserve of Ps.
17 million in 2001.

Simec recorded financial expense of Ps. 123 million in 2002
compared to financial income of Ps. 5 million in 2001 as a result
of (i) net interest expense of Ps. 53 million in 2002 compared to
net interest expense of Ps. 166 million in 2001, reflecting lower
debt levels in the 2002 period; (ii) an exchange loss of Ps. 100
million in 2002 compared to an exchange gain of Ps. 99 million in
2001, reflecting a decrease of 12.8% in the value of the peso
versus the dollar in 2002 compared to an increase of 4.5% in the
value of the peso versus the dollar in 2001; and (iii) a gain
from monetary position of Ps. 30 million in 2002 compared to a
gain from monetary position of Ps. 72 million in 2001, reflecting
the domestic inflation rate of 5.7% in 2002 compared to the
domestic inflation rate of 4.4% in 2001, and lower debt levels
during the 2002 period.

At December 31, 2002, Simec's total consolidated debt consisted
of approximately $48 million of U.S. dollar-denominated debt
(including $14.4 million of debt owed to Simec's parent company
Industrias CH, S.A. de C.V. ("ICH"), while at December 31, 2001,
Simec had, outstanding, approximately $103 million of U.S.
dollar-denominated debt (including $14.8 million of debt owed to
ICH); Simec's lower debt level at December 31, 2002 reflects the
prepayment of $48.1 million of bank debt in 2002 (Simec financed
$24.4 million of this prepayment with loans from ICH), the
amortization of an aggregate of $6.7 million of bank debt in
2002, and the conversion to common stock in June 2002 of $24.6
million of loans (plus accrued interest thereon) from ICH at a
conversion price equivalent to U.S. $1.51 per American Depositary
Share. Substantially, all of Simec's remaining consolidated debt
(other than debt owed to ICH) matures in 2009 and amortizes in
equal semi-annual installments.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at December 31, 2002.

Simec is a mini-mill steel producer in Mexico and manufactures a
broad range of non-flat structural steel products.

GRUPO TFM: Reports Fourth Quarter and Full Year 2002 Results
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and
subsidiaries ("TFM") reported Thursday fourth quarter and full
year 2002 results.


TFM experienced 6.5 percent growth in volume during the fourth
quarter in spite of the economic downturn and no recovery in
foreign trade. The growth reflected higher volume in the
intermodal, chemical, and mineral product segments. The
continuing conversions of traffic from truck to rail transport
also contributed to higher fourth quarter volume. Consolidated
net revenues for the three months ended December 31, 2002, were
$179.7 million, which represents an increase of $7.9 million or
4.6 percent from revenues of $171.8 million for the same period
in 2001. This figure includes $13.4 million from Mexrail
operations. (Mexrail financials were consolidated with TFM
starting in 2002.) The increase in revenues resulted from the
consolidation of Mexrail figures. Revenues were also negatively
affected by reduced auto shipments, continued shifts in length of
haul, and by the devaluation of Peso denominated instruments and

Consolidated operating profit for the fourth quarter of 2002 was
$33.0 million, including a $2.0 million operating loss from
Mexrail operations, representing a decrease of $6.7 million from
the fourth quarter of 2001. The operating ratio (operating
expenses as a percentage of revenues) for the fourth quarter of
2002 was 81.7 percent including Mexrail operations (79.0 percent
without Mexrail). Operating expenses were reduced during the
fourth quarter as a result of continuous cost control measures
and more efficient operations.


Consolidated net revenues for the year ended December 31, 2002,
were $712.1 million, which represents an increase of $44.3
million or 6.6 percent from the year ended December 31, 2001,
including the $51.6 million from Mexrail operations as mentioned
above. These results reflect the consolidation of Mexrail for the
12-month period.

Consolidated operating profit for the year ended December 31,
2002, was $153.3 million, resulting in an operating ratio of 78.5
percent. The consolidated operating ratio without Mexrail was
76.1 percent.


Net financial expenses incurred in the year ended December 31,
2002 were $96.7 million including $22.6 million in amortization
of discount debentures and $13.0 million of interest from the new
$180.0 million bond maturing in 2012. TFM recognized a $17.4
million foreign exchange loss resulting from the depreciation of
the Mexican Peso relative to the U.S. dollar.


EBITDA for the year ended December 31, 2002, including Mexrail,
was $239.1 million compared to $240.1 million for the year ended
December 31, 2001.


As of December 31, 2002, the company's accounts receivable
balance decreased to $203.9 million from $209.6 million at
December 31, 2001, mainly due to the recovery of interline
accounts and the reimbursement of the dividend that was declared
null. Outstanding trade receivables were below 30 days.

TFM incurred capital expenditures of $36.4 million during the
fourth quarter of 2002. Gross capital expenditures for the full
year were $89.4 million, invested in the improvement of TFM and
Mexrail lines and additions in operating capacity and intermodal

As of December 31, 2002, TFM had an outstanding net debt balance
of $991.1 million, including $122.0 million of refinanced U.S.
commercial paper, a new $128.0 term loan, and $32.0 million in
cash and cash equivalents. During September 2002 TFM refinanced
its U.S. Commercial Paper Program with a new U.S. Commercial
Paper Program and the Term Loan referred to above. During June
2002, TFM issued $180.0 million of 12.5 percent senior notes due
2012. The net proceeds from this new debt were used in July 2002
to acquire the shares of Grupo Transportacion Ferroviaria
Mexicana consisting of 24.6 percent of the total capital stock,
held by Ferrocarriles Nacionales de Mexico. The total debt of TFM
was also increased by the accretion of the $22.6 million for the
Senior Discount Debentures for the first six months of 2002.

To see financial statements:

GRUPO TMM: Reports Fourth Quarter and Full Year 2002 Results
Exchange Losses and Deferred Taxes Impact Results Ports and
Terminals, Specialized Maritime and Logistics Show Improved
Annual Revenues

Grupo TMM, S.A. (NYSE:TMM), the largest Latin American multi-
modal transportation and logistics company and owner of the
controlling interest in Mexico's busiest railway, TFM, reported
revenues from consolidated operations of $255.7 million for the
fourth quarter of 2002, compared to revenues from consolidated
operations of $258.2 million for the same period of 2001. Reduced
revenue was reported at TFM, Tex-Mex, Specialized Maritime and
Logistics due to sluggish trade growth, automotive sector revenue
declines in transit and at outsourcing facilities, and from dry
docking of some tanker vessels. Consolidated EBITDA (Earnings
Before Income, Taxes and Depreciation) was $69.5 million for the
fourth quarter of 2002, compared to $77.2 million in the fourth
quarter of 2001.

For the full year, the company reported revenue from consolidated
operations of $1.01 billion in 2002, compared to $1.0 billion for
the same period of 2001. Annual revenue improvement was seen at
Ports, Specialized Maritime and Logistics due to new product
offerings and an improved product mix, demonstrating the
sustainability of these operations. Consolidated EBITDA was
$297.4 million for the full year of 2002, compared to $302.5
million in the same period of 2001.

Grupo TMM's consolidated fourth quarter 2002 operating income
decreased $6.3 million, from $47.5 million in 2001 to $41.2
million in 2002 and net income for the quarter decreased from
$1.6 million in 2001 to a loss of $12.4 million in 2002. These
results were primarily impacted by the direct and accounting
effects of a 12.8 percent peso devaluation.

In 2002, Grupo TMM's consolidated operating income decreased $5.1
million to $184.0 million due to increased costs at Ports and
Terminals for increased security and reduction of Storage
revenue; at Specialized Maritime for routine but mandatory dry
dock improvements to the tanker fleet; and at Logistics due to
sluggish automotive movement activity at outsourced locations.
Revenue reductions in the automotive sector and in grain imports
from the U.S. affected the Railroads' results. Net income
decreased to a loss of $46.2 million and was impacted, as stated
above, primarily by peso devaluation.


Seeking to extend the company's debt profile, on December 26,
2002, the company launched an offer to exchange all of its
outstanding 9 1/2 percent Senior Notes due 2003 and its 10 1/4
percent Senior Notes 2006 for a new longer term security. This
new security has a proposed 2010 maturity and will be guaranteed
by the company's controlling interest in Grupo TFM. This week,
the company filed an amendment to the offer, proposing to include
warrants to purchase TMM's common stock as an additional
consideration for those holders of 9 1/2 percent Senior Notes due
2003 whose bonds are tendered and accepted in the exchange. The
expiration date for the exchange offer, unless extended by the
company, is March 11, 2003.


As previously disclosed on December 9, 2002, the Federal Tribunal
of Fiscal and Administrative Justice (the "Tax Court") in Mexico
issued a ruling denying TFM's right to receive a value added tax
(VAT) refund from the Mexican Federal Government. The lower
court's objection stated that the law was violated by issuing a
certificate in the name of a third party and not to TFM, but it
also stated that TFM did not have a right to that certificate.
Based on the advice of TFM's legal counsel, who has carefully
reviewed the prior favorable decision of the appellate court, the
partners remain confident of TFM's right under Mexican law to
receive the VAT refund. The company has returned to the Mexican
Magistrates Court (Federal Court) and requested that they enforce
the original ruling as outlined in their decision of September
25, 2002.


The greatest impact on the company's financial results in 2002
was peso devaluation, which amounted to depreciation of 12.8
percent for the full year, accelerating in the second half of the
year. This devaluation affected the company's results through an
exchange loss, reducing TFM's net results $17.0 million and
unconsolidated TMM's net results by $3.0 million, and through a
reduction in the company's fiscal assets of approximately $22.0
million, of which $7.0 million was due to a change in the
corporate tax rate from 35 percent in 2001 to 34 percent in 2002,
mainly at TFM, for a combined negative impact on net results of
$42.0 million. NOLs, however, grew in 2002, from approximately
$820.0 million at TFM and $315.0 million at unconsolidated TMM,
to $1.1 billion at TFM and $322.0 million respectively, which
should positively impact the company in the future. Finally,
financial obligations during the year increased at consolidated
Grupo TMM in 2002 by $145.0 million, which was primarily related
to the acquisition of Grupo TFM equity from the Mexican
Government and accretion of TFM's discount debentures, both items
accounting for $19.1 million in increased financial expense.
Additionally financial costs were impacted by premiums on sale of
receivables; the coupon and premium on redemption of the
convertible notes; and lower interest earned due to lower cash
balances and lower interest in tax receivables.


Javier Segovia, president of Grupo TMM, said, "Our 2002 results
reflect the continued development of TMM's operations during a
tough global economic environment. Ports and Terminals,
Specialized Maritime and Logistics all showed improved annual
revenues. Generally speaking, our operations are stable in spite
of negative US/Mexican trade growth, and temporary slowness in
the automotive sector, which impacted all of our assets tied to
NAFTA corridors.

"In 2002, we remained consistent in our goals and the actions
required to reach those goals, as we seek to extend the debt
maturity of the company, succeed in the VAT collection and
position the company for growth as the economy improves. To this
end, TMM has initiated a bond exchange for both its 2003 and 2006
debt issues. With some very well positioned assets strategically
located on what will continue to be one of the fastest growing
trade corridors in the world, we believe the value of our company
will rise accordingly once the economy recovers and resumes
growth, with excess cash generated through that growth. The
proposed exchange offer is evidence of this management team's
faith in the future value of our assets and in the growth of
those assets, and subsequent cash flows, as the economy returns
to a more normal position.

"Additionally, we have returned to the Mexican Magistrates Court
(Federal Court) and requested that they enforce their original
value added tax lawsuit ruling. As we have mentioned in the past,
the Supreme Court's original ruling is unappealable, and we
believe, will be complied with during the next several months. We
are confident this matter will be resolved as we have described
in the past, that the rule of law in Mexico will prevail, and
that this award will be used by TFM once the certificate is


(Unconsolidated TMM includes its Specialized Maritime, Logistics
and Port and Terminal operations.) Revenues from unconsolidated
operations were $81.1 million for the fourth quarter of 2002,
compared to revenues of $76.5 million (without Tex Mex which is
now a part of TFM) for the same period of 2001. Specialized
Maritime saw reduced revenues in the quarter due to mandatory dry
dock repairs to the tanker fleet; and Logistics saw reduced
revenues due to a change in the mix in revenue, a slowdown in
auto sector activity, and was impacted by the exchange rate.
Unconsolidated EBITDA was $15.4 million for the fourth quarter of
2002, an EBITDA margin of 19.0 percent.

For the full year, the company reported revenue from
unconsolidated operations of $314.2 million in 2002, compared to
$288.9 million for the same period of 2001 (without Tex Mex) This
annual revenue improvement at all operations represents a 8.8
percent increase due to new product offerings and an improved
product mix. Unconsolidated EBITDA was $58.3 million for the full
year of 2002.

Grupo TMM's unconsolidated fourth quarter 2002 operating income
was $7.6 million compared to $7.8 million in 2001. In 2002,
unconsolidated net income for the quarter was a loss of $12.4
million, and a loss of $46.2 million for the full year. Operating
and net income in 2002 was impacted primarily by a devaluation of
the peso which affected, as stated above, exchange loss, value of
fiscal assets, reduction of the corporate tax rate and by a one-
time charge of $17.5 million to eliminate the management fee of



Volume grew 3.6 percent in 2002. However, net revenue was down
1.1 percent, due primarily to stagnant trade growth, a sluggish
automotive sector and the devaluation of the peso. EBITDA for the
full year 2002 was $239.1 million compared to $240.1 million in
the prior year. Operating ratio for the full year was 76.1
percent in 2002 compared with 76.7 percent in 2001.

Although volume increased by 6.5 percent for the fourth quarter,
net revenue was down 3.2 percent, due to the accelerated
depreciation of the peso, continued changes in length of haul and
mix and to a sluggish automotive sector. EBITDA for the last
quarter of 2002 was $55.1 million compared to $61.5 million in
the prior year period. Operating ratio for the quarter was 79
percent in 2002 compared with 76.9 percent in 2001 (without Tex

Reduced revenues were reported in auto exports and agro-
industrial. The railroad has developed revenue to replace these
losses through a multitude of programs to include expanded truck
to rail conversion and through the use of newly constructed
intermodal and transload facilities.

Transload construction projects built throughout 2002 accelerated
growth in cement, petrochemical and chemicals, and at intermodal
terminals. For the year, cement, metals, and mineral revenues
increased 9 percent, and chemical and petrochemical were up 9
percent compared to 2001, aided by the Pemex truck to rail
conversion program now underway. Intermodal product revenues
increased 13 percent for the year and 48 percent with intermodal
FAK (Freight of All Kinds) merchandise, which is being converted
from truck.


The division experienced two derailments, one in November and
December each, affecting operating results by $1.6 million.
Overall costs continued to decline by $3.0 million during the

Ports and Terminals

Container volume at Manzanillo continued to increase quarterly by
approximately 75 percent and annually by approximately 43 percent
compared to last year. In spite of an overall decline in Storage
revenue of $3.0 million, fourth quarter revenue for this port
increased approximately 20.9 percent. The company anticipates
continued growth at Manzanillo throughout 2003 due to the
addition of new customers and contracts.

Cruise ship activity increased in 2002. Revenue at Cozumel in the
fourth quarter increased approximately 60 percent and operating
profit by approximately 110 percent over the prior year. Cruise
ship volume also increased at Acapulco 34 percent for the full
year. Car imports and exports increased in spite of tough
economic conditions in the automotive sector at both Vera Cruz
and Acapulco. Reflecting the shifts in activity described above,
as well as an increase in security costs of $2.0 million in 2002,
operating profit decreased 9.6 percent compared to 2001. The
division's operating profit in 2002 was $33.4 million.

Specialized Maritime

Demand remains strong in supply ships, as Mexico continues to
expand production in the oil and natural gas product reserves.
Off hire or dry dock vessels impacted tanker revenues in the
fourth quarter. Supply ship revenue increased approximately 23
percent, or $10.0 million, and gross profit increased
approximately 38 percent in 2002.


Overall, Logistics revenues increased 2.1 percent for the full
year. Volume for RoadRailerr products increased in the fourth
quarter from 1,930 loads in 2001, to 3,163 loads in 2002. Year
over year, volume increased from 3,264 loads in 2001, to 10,327
loads in 2002. While RoadRailerr volume continued to grow, volume
at the outsourcing facilities was impacted by the slow down of
the automotive industry. The division also withdrew from other
unprofitable segments including some elimination of dedicated
contracts, a shift from port traffic and from long-haul trucking
to shorter haul rail drayage activity.

Grupo TMM will broadcast its fourth quarter and full year 2002
conference call and slide presentation for investors over the
Internet on Friday, February 28, 2003, at 11:00 a.m. EDT. To
listen to the live call and view the accompanying slides, please
go to
register, download and install any necessary audio software, or
dial 800-218-0204 (domestic) or 303-262-2130 (international). If
you are unable to participate on the call, a replay will be
available through March 7 at 11:59 p.m. EST at this website or by
dialing 800-405-2236 or 303-590-3000 and entering conference ID

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in Transportacion
Ferroviaria Mexicana (TFM), which operates Mexico's Northeast
railway and carries over 40 percent of the country's rail cargo.
Visit Grupo TMM's web site at and TFM's web site
at Both sites offer Spanish/English language

To see financial statements:

LUZ Y FUERZA: Signs Excessive Charges Avoidance Agreement
Mexican state power company Luz Y Fuerza del Centro forged an
agreement with the Civil Resistance Front against high
electricity rates to prevent "irregular and excessive" charges to
consumers. An article released by Hoover's in its web site said
that under the agreement, meters may be changed when customers
suspect they are faulty.

In a press conference, federal and local deputies belonging to
the Democratic Revolution Party (PRD) said that the increase in
electricity costs in some Mexican states is partly due to the
poor state of household and commercial meters. Errors by meter
readers were also cited.

According to PRD leader Dion‚ Anguiano, about 2.1 million people
from the states of Puebla, Hildalgo, and the Estado de Mexico, as
well as Mexico City, are affected by the high electricity

Mr. Anguiano said that in some cases, electricity rates went up
by as much as 1,000 percent in the last 10 months.

However, said PRD deputies said that the Civic Resistance Front,
Chamber of Deputies and Legislative Assembly of Mexico City has
resolved about 40% of about 5.5 million customer complaints

PEMEX: Stake Sale May Be Discussed When Next Congress Meets
A proposal to sell a 10% stake in federal oil company Petroleos
Mexicanos (Pemex) will be taken up in the next congressional
session, reports the Financial Times. The sale could raise as
much as US$6 billion for the Company.

"This plan would give it the fresh capital it needs to modernize
but keep it the property of all Mexicans," said Omar Fayad, a
federal deputy from the Institutional Revolutionary Party (PRI),
and co-sponsor of the bill. FT reported that Mexican opposition
parties plan to present the proposal to the congress.

The Company needed US$19 billion to modernize exploitation,
production and refining said the Energy Ministry last year.

Mexican individuals and institutional buyers may buy the non-
voting stock that would pay a dividend, the Times says.

          Marina Nacional 329, Colonia Huasteca
          11311 Mexico, D.F., Mexico
          Phone: +52-55-5531-6061
          Fax: +52-55-5531-6321
          Home Page:
             Raul Munoz Leos, General Director
             Jose A. Ceballos Soberanis, Director Corporate
             Jose Juan Suarez Coppel, Director Corporate Finance

SAVIA: Reports Year End Results for Fiscal 2002
Savia S.A. de C.V. (BMV:SAVIA) (NYSE:VAI) announced Thursday its
results for fiscal 2002.


--  Savia improved its operating income by 98 million dollars
(174%) to 42 million dollars. Operating expenses were reduced by
45 million dollars (14%) when compared to the previous year.
--  Savia increased its operating cash flow, reporting 66 million
dollars, 314% larger than the same figure reported in year 2001.
--  Savia's net consolidated results improved 318 million dollars
(83%) compared to fiscal 2001, reporting a net consolidated loss
of 65 million dollars.
--  Seminis registered sales of 456 million dollars, a similar
value to that achieved in fiscal 2001. It reduced its operating
expenses by 6% and reported an operating cash flow of 80 million
dollars, a 910% increase over the previous fiscal year.
--  Seminis reported an improvement in gross profit, increasing
to 62% of sales 2002 from 49% on fiscal 2001, this had a positive
impact of 59 million dollars.
--  Bionova reported accumulated sales of 134 million dollars and
reduced its operating expenses by 14 million dollars (46%)
compared to fiscal 2001. It reported an operating loss of 6
million dollars, an improvement of 33% compared to fiscal 2001.
In addition, its operating cash flow improved by 28% compared to
the previous fiscal year.

                          REPORTED RESULTS

                       Main Business Indicators

                Million of Dollars as of December 2002

                       Jan-Dec 2002   Jan-Dec 2001   Variation
                       ------------   ------------   ---------
Sales                          637            715         -11%
Gross Profit                   318            265          20%
Gross Profit                    50%            37%         --

Operating Expenses             276            321          14%
Operating Income                42            (56)        174%
EBITDA                          66            (31)        314%


Consolidated Net Sales

Consolidated net sales were 637 million dollars, a decrease of
11% compared to fiscal 2001. The reduction is primarily the
result of a decrease in sales at Bionova due to the divestiture
of Interfruver de Mexico, a non-strategic asset of this
subsidiary. Of the reported Sales, 47% were denominated in
dollars, 21% in euros, 9% in Mexican Pesos and 23% in other

Consolidated Operating Income

The consolidated operating income for fiscal 2002 reached 42
million dollars, an improvement of 98 million dollars (174%)
compared to the same period last year. This result was mainly due
to the increase in Seminis' operating income of 74 million
dollars, as well as a reduction in operating expenses at Bionova
and a reduction in corporate expenses.

Consolidated Operating Cash Flow

During fiscal year 2002, Savia generated 66 million dollars, an
increase of 97 million dollars (314%) compared to the negative
consolidated operating cash flow reported in fiscal 2001.

Consolidated Net Income

During the reported period Savia considered extraordinary
expenses from the booking of reserves to account receivables from
related parties, the cancellation of investment projects and the
cancellation of reserves related to previous year divestitures,
in the amount of 68 million dollars. Because of these
extraordinary charges the consolidated net loss reached 65
million dollars, an improvement of 83% or 318 million dollars
compared to fiscal 2001.



Sales for Seminis during fiscal 2002 were 456 million dollars, a
similar level to that reported in the same period last year.
Notwithstanding the foregoing, the implementation of cost
reduction programs led to a better control in the cost of goods
sold, thus the gross margin improved from 49% during fiscal 2001
to 62% in fiscal 2002. Gross profit improved 59 million dollars
and operating expenses were reduced by 15 million dollars (6%)
compared to those reported in fiscal 2001.

Operating income reported during 2002 was 65 million dollars, an
increase of 74 million dollars (807%) compared to the previous
fiscal year. Operating cash flow was 80 million dollars, an
increase of 72 million dollars (910%) compared to fiscal 2001.


Bionova reported accumulated sales of 134 million dollars, a
decrease of 36% from the same period in 2001 as a result of the
divestiture of Interfruver de Mexico, a non-strategic asset of
this subsidiary. Operating expenses were 16 million dollars, a
decrease of 14 million dollars (46%) compared to the previous
fiscal year.

Operating loss totaled 6 million dollars, an improvement of 3
million (33%) with respect to the same period last year.
Operating cash flow for the period increased 28% over that
reported in 2001.


Consolidated Net Sales

Savia's consolidated net sales were 119 million dollars, a
decrease of 10% compared to the same period last year. The
reduction is the result of the divestiture of Interfruver de
Mexico, a non-strategic asset of Bionova. Of the reported sales,
47% were denominated in dollars, 20% in euros, 11% in pesos and
22% in other currencies.

Consolidated Operating Income

Consolidated operating loss for the fourth quarter of 2002
totaled 9 million dollars, this represents an improvement of 6
million dollars (41%) over the same period last year. This figure
is the result of an 8% reduction in operating expenses and an 18%
improvement in the cost of sales for Savia and its subsidiaries.

Consolidated Operating Cash Flow

During this quarter, the operating cash flow improved 7 million
dollars or 74% with respect to the same period last year.

Consolidated Net Income

The net consolidated loss was 95 million dollars, which
represents an improvement of 37 million dollars (28%) with
respect to the same period last year. It is important to note
that this figure includes the 68 million dollars in extraordinary
charges previously mentioned.



Sales for Seminis during the fourth quarter of 2002 were 81
million dollars, 2% lower than sales reported for the same period
in 2001. The company reported a gross margin of 62%. Operating
expenses were reduced by 5%, a decrease of 3 million dollars for
the fourth quarter of 2002. The operating loss declined by 2
million dollars, a 39% improvement compared to the same period
last year. Operating cash flow for the fourth quarter of 2002
improved by 2 million dollars (108%) over the same period in
2001. These results show the effect of the initiatives
implemented in September of 2000 that continue to strengthen the
business results.


Sales for Bionova in the fourth quarter of 2002 were 26 million
dollars, representing a decrease of 30% with respect to the
fourth quarter of 2001. The operating loss improved by 1 million
dollars (60%) with respect to the same period last year. In
addition, operating cash flow reported an improvement of 87%
compared to the fourth quarter of 2001.


On Dec. 13, 2002, Savia S.A. de C.V. announced the signing of a
letter of intent with Fox Paine & Company, a San Francisco-based
private equity fund. Under the terms of the agreement Fox Paine
and parties related to Savia will acquire the outstanding shares
of Seminis (Nasdaq:SMNS). This transaction is subject to
conditions established by the agreement and is expected to be
closed during the first semester of 2003.

As announced on Dec. 17, 2002, Savia continues its negotiations
for the payment of its bank debt. These negotiations are directly
related with the signing of the letter of intent above mentioned.

Savia participates in industries that offer high growth potential
in Mexico and internationally. Its principal subsidiaries include
Seminis, a global leader in the production and marketing of fruit
and vegetable seeds; Bionova, a company focused on the
production, distribution and commercialization of fruits and
vegetables; and Desarrollo Inmobiliario Omega, a company
dedicated to the development of real estate in Northern Mexico.

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

To see financial statements:

CONTACT:  Savia S.A. de C.V., Monterrey
          Investor Relations:
          Francisco Garza
          Phone: 81-81-73-55-00
          Media Contact:
          Francisco del Cueto
          Phone: 55-56-62-31-98

VITRO: Signs Syndicated Facility for $201 million
Vitro, S.A. de C.V. (NYSE: VTO and BMV: VITRO A), through its
subsidiary Vitro Plan, S.A. de C.V., as borrower, executed a
credit facility providing for new financing in an aggregate
principal amount equal to US$201 million, which validates Vitro's
strategy to proactively seek refinancing alternatives in capital

The facility was led by Comerica Bank and Citibank, and included
as participants Banco Nacional de Comercio Exterior, Wachovia
Bank, Caixa Nova and Bank of Montreal.

The loan, which has a 3-year tranch and a 5-year tranch in
dollars and a 4-year tranch in pesos, has an average life of debt
of two and one-half years, which improves Vitro's debt profile.
This loan, in addition to other transactions undertaken during
the last few months, has allowed Vitro to significantly extend
its average life from 1.8 years in December 31st, 2001 to 3.4
years on a pro forma basis as of February 28, 2003.

The loan is relevant in several ways. First, it reflects the
confidence that a core group of lenders, are placing on Vitro and
its management, in the middle of an adverse macroeconomic
environment. Secondly, it allows Vitro to diversify its sources
of financing by bringing new lenders, such as Wachovia and Caixa
Nova, to participate in the deal. Thirdly, it reinforces Vitro's
measures to reduce its cost of funding, extend the tenor of its
indebtedness and improve its debt profile.

Vitro will use the proceeds of the facility to pay down mostly
short-term maturities and some long-term debt with less favorable
financial conditions.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers, and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; fiberglass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers;
glassware for commercial, industrial and retail uses; plastic and
aluminum containers. Vitro also produces raw materials, and
equipment and capital goods for industrial use. Founded in 1909
in Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries
have facilities and distribution centers in seven countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide.

          (Media Monterrey):
          Albert Chico Smith
          Tel: +52 (81) 8863-1335

         (Media Mexico D.F.):
         Eduardo Cruz
         Tel: +52 (55) 5089-6904

         (Financial Community):
         Beatriz Martinez
         Tel: +52 (81) 8863-1258

         (U.S. Contacts):
         Luca Biondolillo/Susan Borinelli
         Breakstone & Ruth Int.
         Tel: (646) 536-7012 / 7018



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

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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

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

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

* * * End of Transmission * * *