TCRLA_Public/030502.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

          Friday, May 2, 2003, Vol. 4, Issue 86

                           Headlines


A R G E N T I N A

ACINDAR: Fitch Rates Corporate Bonds `D(arg)'
ARGENTINE BANKS: Fitch Comments on Trends & Challenges
INVERSIONES DE ENERGIA: Bonds Get Default Ratings From S&P
SIDECO AMERICANA: Fitch Assigns `D(arg)' To Corporate Bonds


B E R M U D A

GLOBAL CROSSING: ST Telemedia Angles for Hutchinson Deal
GLOBAL CROSSING: Seeks To Limit Trustee's Indemnification Claims
TYCO INTERNATIONAL: Reports Second Quarter Loss of US$0.23/Share


B R A Z I L

ELETROPAULO METROPOLITANA: AES To Continue Talks With BNDES
IDEIASNET: To Make Acquisitions In Biotech, Telecoms Industries
TELEMAR: HP Brasil Rumored To Acquire Tnext
VARIG: Controllers Mulling Government's Planned Takeover


C H I L E

AES CORP.: May Use Dividends To Pay Interest On Debt With Unit
ENERSIS: ENDESA Reports First Quarter 2003 Consolidated Results


C O L O M B I A

AVIANCA: Judge Extends Authorization For Interim DIP Loan
AVIANCA: Unsecured Creditors Committee Defends Ch. 11 Filing


M E X I C O

CINTRA: Reports First Quarter 2003 Results
DESC: 1Q03 Results Show Improvement
GRUPO MEXICO: First Quarter 2003 CEO Report
GRUPO MINERO MEXICO: Fitch Ratings Affirms SENs Ratings
SAVIA: 1Q03 Numbers Show Better Revenues, Margins

SAVIA: Shareholders Approve Sale of Seminis
SIDEAPA: Moody's Assigns `Ba3.mx' National Scale Rating
UNEFON: Posts Bigger Net Loss In The 1Q03


T R I N I D A D   &   T O B A G O

BWIA: SE Grants Deadline Extension on 2002 Annual Report Filing


U R U G U A Y


BBVA URUGUAY: S&P Affirms Local, Foreign Currency Credit Ratings
CITIBANK N.A.: S&P Revises Outlook on Currency Credit Ratings
DISCOUNT BANK: S&P Affirms `CCC' Currency Credit Ratings


V E N E Z U E L A

* Venezuela Plans Reduction of Private Debt Placement


     - - - - - - - - - -

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

ACINDAR: Fitch Rates Corporate Bonds `D(arg)'
---------------------------------------------
Corporate bonds of Acindar Industria Argentina de Aceros were
rated `D(arg)' by Fitch Argentina Calificadora de Riesgo, S.A.
said the National Securities Commission.

The rating, issued on Thursday, was assigned to bonds described
as "Obligaciones Negociables simples, no convertibles en
acciones, autorizadas or y AGOyE de fecha 5.8.96", worth US$100
million. The bonds were classified under `Simple Issue', and will
mature on February 16, 2004.

Fitch based the rating on the Company's financial health as of
December 31, 2002. The ratings agency said that the rating is
assigned to entities that are currently in default.

The Company's main activity is the production of non-flat steel
products such as steel pipe, cable, hot-rolled and cold-drawn
steels for concrete, forged bars and blocks for distributors of
steel products, other steel companies, manufacturers of original
equipment for several industrial sectors including the automotive
and the oil and gas industries and end users, mainly in the
construction and agricultural sectors of the economy. Its
principal market is Argentina, although it exports its products
to Brazil, Chile and the United States, Bolivia and Uruguay
through its sales office.

CONTACT:  Acindar Industria Argentina de Aceros SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina
          B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com
          Contact:
          Arturo Tomas Acevedo, Chairman


ARGENTINE BANKS: Fitch Comments on Trends & Challenges
------------------------------------------------------
In a report published Tuesday, Fitch Ratings commented on the
trends and challenges facing the Argentine banking system.

Nearly a year and a half has passed since the onset of the
Argentine banking crisis and while there have recently been some
positive developments in the sector as a result of a relative
stabilization of many economic variables and sustained deposit
growth since mid-2002, considerable uncertainties in the
macroeconomic environment and the banking sector have impeded the
sector from restoring normal operations. Specifically, banking
sector normalization continues to be stalled by the government's
failure to define its stance on bank compensation and until
recently, the uncertainty created by the threat of deposit re-
dollarization, which have prohibited an accurate quantification
of bank losses associated with the crisis.

While the burden of re-dollarizing the remaining restructured
deposits has largely been assumed by the government in a recently
approved decree, Fitch believes that it will be some time before
many of the other issues are resolved, pushing the banking
system's recovery and, therefore, its ability to play an active
role in supporting the credit necessary for sustainable growth,
out further into the future.

In response to the high degree of uncertainty, most banks have
adopted defensive strategies aimed at building and preserving
liquidity, while traditional banking business remains at a
standstill. With few exceptions, banks have ceased lending
activities, focused on loan collections and used deposit inflows
to further boost liquidity cushions. In order to improve
profitability, banks have been cutting costs, primarily through
staff and branch reductions. Revenue growth, however, has been a
more difficult task given structural mismatches imposed by
regulations and the prioritization of liquidity. Most banks plan
to develop their transactional business, capitalizing on the
increase in fee-based products that accompanied the cash
restrictions as consumers were forced to use their debit and
credit cards for purchases.

The time line for bank recovery will be largely dependent upon
the progress made by the next administration. There are
incentives for prompt action on bank restructuring, such as its
importance to economic stability as well as its inclusion as a
requirement in the recently signed IMF program. However, to date,
clear policy proposals in this respect have not been made. What
does seem clear now, is that the shape and role of the banking
system within the Argentine economy will change substantially.
The road to recovery will certainly include significant
consolidation, reducing, perhaps significantly, the number of
banks in the system, a process that is already underway.

While depositor confidence may be seen to have recovered
somewhat, it will remain scarred well into the future due to the
recent events. The robust expansion of the deposit base seen in
the second half of the 1990's will likely not be seen again for
some time. Indeed it seems likely that at least some of the
current 'stickiness' of deposits is thanks to the combination of
unsustainably high interest rates being offered by the banks, and
the fact that, in the absence of fresh lending by the banks,
working capital is being provided by these deposits and by some
return of funds that escaped the system prior to 2002. The system
seems fated to evolve into a largely transactional system, with
savings lodged at institutions beyond Argentina's borders, and
the role of banks in Argentina reduced to a transactional one,
providing basic banking services and housing little more than the
cash necessary for the short term operations of economy.

Fitch expects that its rating activities will be largely focused
on national ratings in the near future. In applying its rating
methodology in these activities, Fitch will pay particular
attention to the bank liquidity, the regulatory environment, and
the business strategies that banks will follow as they navigate
the turbulent times ahead.


INVERSIONES DE ENERGIA: Bonds Get Default Ratings From S&P
----------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
moved Compania de Inversiones de Energia, S.A.'s corporate bonds
into junk territory. The National Securities Commission of
Argentina indicated that some US$220 million of corporate bonds
described as "Obligaciones Negociables Autorizadas por AGE de
fecha 13.12.96" were rated `raD' on Monday.

S&P said that an obligation is rated `raD' when it is payment
default or the Company has filed for bankruptcy. The `raD' rating
is used when interest or principal payments are not made on the
date due, even if the applicable grace period has not expired,
unless the ratings agency believes that such payments will be
made during such grace period. The rating was based on the
Company's financials as of the end of December 2002.

The affected bonds were classified under "Simple Issue", and
matured in April last year.


SIDECO AMERICANA: Fitch Assigns `D(arg)' To Corporate Bonds
-----------------------------------------------------------
Corporate bonds of Sideco Americana S.A. were given junk ratings
on Thursday, said the National Securities Commission of
Argentina.

Fitch Argentina Calificadora de Riesgo S.A. assigned `D(arg)' to
US$200 million worth of bonds described as "Obligaciones
Negociables", classified under "program." The bonds matured in
June 2000.

Fitch said that the rating, which is given to entities that are
currently in default, was based on the Company's financial
standing as of December 31, 2002.



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

GLOBAL CROSSING: ST Telemedia Angles for Hutchinson Deal
--------------------------------------------------------
Global Crossing and Singapore Technologies Telemedia Pte. Ltd.
(ST Telemedia) announced Wednesday that ST Telemedia would assume
the rights and obligations of Hutchison Telecommunications
Limited (Hutchison) to invest in Global Crossing under the
purchase agreement signed August 9, 2002. ST Telemedia will
increase its original investment under the purchase agreement
from $125 million to a total $250 million for 61.5 percent
ownership interest in the reorganized Global Crossing upon its
emergence from Chapter 11. Emergence is expected in coming
months, subject to obtaining anticipated regulatory approvals.

Hutchison announced Wednesday that it has decided to withdraw
from the Global Crossing purchase agreement. The agreement, which
was approved by the United States Bankruptcy Court for the
Southern District of New York on August 9, 2002, allows either
investor to take over the investment opportunity of the other on
such a withdrawal. ST Telemedia has decided to assume Hutchison's
30.75 percent stake in the reorganized Global Crossing.

"ST Telemedia will be an ideal partner for us and will bolster
Global Crossing's position as a leading provider of next
generation telecommunication services on a global scale," said
John Legere, Global Crossing's CEO. "As an innovative information
and communications company having both financial strength and an
aggressive growth plan, ST Telemedia clearly stands out as an
investor that is complementary to Global Crossing's vision and
mission."

The actions taken Wednesday by ST Telemedia and Hutchison will
not change distributions to creditors under Global Crossing's
Chapter 11 Plan of Reorganization, which was accepted by
creditors and confirmed by the Bankruptcy Court in December 2002.

"We are enthusiastic about Global Crossing's future," said Lee
Theng Kiat, president and CEO of ST Telemedia. "This transaction
will help ensure that the company and its employees continue to
provide world class telecommunications service to customers
around the world."

"We're grateful for Hutchison's interest in Global Crossing and
for the flexibility they exercised in adapting to the
circumstances of the investment proposal," added John Legere. "We
wish Hutchison much success in continuing to push the frontier of
telecommunication services, where they have already established a
distinguished track-record through their worldwide investments."

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

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

On November 18, 2002, Asia Global Crossing Ltd., a majority-owned
subsidiary of Global Crossing, and its subsidiary, Asia Global
Crossing Development Co., commenced Chapter 11 cases in the
United States Bankruptcy Court for the Southern District of New
York and coordinated proceedings in the Supreme Court of Bermuda,
both of which are separate from the cases of Global Crossing.
Asia Global Crossing has announced that no recovery is expected
for Asia Global Crossing's shareholders. Asia Netcom, a company
organized by China Netcom Corporation (Hong Kong) on behalf of a
consortium of investors, has acquired substantially all of Asia
Global Crossing's operating subsidiaries except Pacific Crossing
Ltd., a majority-owned subsidiary of Asia Global Crossing that
filed separate bankruptcy proceedings on July 19, 2002. Global
Crossing no longer has control of or effective ownership in any
of the assets formerly operated by Asia Global Crossing.

Please visit www.globalcrossing.com for more information about
Global Crossing.

ABOUT SINGAPORE TECHNOLOGIES TELEMEDIA

Singapore Technologies Telemedia (ST Telemedia) is a leading
information and communications company in Singapore and the Asia-
Pacific region. Incorporated in 1994, the company provides a wide
range of services including fixed and mobile telecom, wireless
data communications, Internet mobile, managed hosting and IP
network, satellite, cable TV, enhanced broadband and multimedia.
ST Telemedia also is a major shareholder in Singapore's second
largest telecommunications company, StarHub; Indonesia's second
largest telecommunications operator, PT Indosat; and Equinix
Inc., a company providing Internet exchange and infrastructure
services across the United States and Asia-Pacific.

ST Telemedia is a subsidiary of the Singapore Technologies Group,
a technology-based multinational with operations and interests in
more than 20 countries, including the United States. The Group
has U.S. investments in Alabama, Arizona, California,
Massachusetts, North Carolina, Texas, and Virginia.

For more information on ST Telemedia, please visit
www.stt.st.com.sg

CONTACT:  GLOBAL CROSSING
          Press Contacts

          Becky Yeamans
          + 1 973-937-0155
          Rebecca.Yeamans@globalcrossing.com

          Tisha Kresler
          + 1 973-937-0146
          Tisha.Kresler@globalcrossing.com

          Kendra Langlie
          Latin America
          +1 305-808-5912
          Kendra.Langlie@globalcrossing.com

          Mish Desmidt
          Europe
          + 44 (0) 7771-668438
          Mish.Desmidt@globalcrossing.com

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

CONTACT:  ST TELEMEDIA
          Press Contacts in Singapore

          Melinda Tan
          +65 (6723) 8690
          tanmelinda@stt.st.com.sg

          June Seah
          +65 (6723) 8683
          june_seah@stt.st.com.sg

          Press Contacts in North America
          Bill Maroni
          +1 202-585-2753
          wmaroni@webershandwick.com

          Haidee Schwartz
          +1 202-585-2098
          hschwartz@webershandwick.com


GLOBAL CROSSING: Seeks To Limit Trustee's Indemnification Claims
----------------------------------------------------------------
Bermuda-based Global Crossing and the creditors committee
requested the bankruptcy court to limit the amount of Wilmington
Trust's indemnification claims to reasonable costs and expenses
the trustee may incur while defending itself against the ad hoc
committee's allegations, according to a Dow Jones article.

Wilmington Trust, which is also a member of the creditor's
committee, is the principal subsidiary of Wilmington Trust Corp.
(WL), and is the successor trustee to JP Morgan Chase Bank.

Global Crossing's motion indicated that Wilmington Trust and JP
Morgan Chase Bank's indemnification claims "should be estimated
at zero" because these were "highly speculative."

Dow Jones added that Global Crossing and the creditors committee
seeks to avoid any lien in favor of Wilmington trust that calls
for payment to the trustee, which would in turn be distributed to
noteholders of Global Crossing-owned Frontier Corporation. The
Frontier notes make up approximately 80 percent of the note
claims against Global Crossing subsidiary Global Crossing North
America Inc., according to court papers.

All payments on behalf of the noteholders are to be made to
Wilmington Trust, which would then make distributions to
noteholders.  However, the lawsuit indicated, an ad hoc committee
of Frontier noteholders have made allegations of misconduct
against Wilmington Trust.

The same committee reportedly accused JP Morgan Chase Bank of the
same violation. JP Morgan allegedly "failed to properly protect
the interests of the Frontier noteholders with respect to a US$3
billion senior bank credit facility."

Global Crossing's restructuring plan stipulates that holders of
Global Crossing North America are to receive a combination of
cash, senior secures notes, new common stock and an interst in
liquidation trust, which total at least US$16 million.

In the meantime, Global Crossing is maintaining the exclusivity
of its reorganization plan as it awaits approval from the concern
agencies.

CONTACT:  GLOBAL CROSSING
          Press Contacts
          Becky Yeamans
          Phone: + 1 973-410-5857
          E-mail: Rebecca.Yeamans@globalcrossing.com

          Kendra Langlie
          Latin America
          Phone: + 1 305-808-5912
          E-mail: Kendra.Langlie@globalcrossing.com

          Mish Desmidt
          Europe
          Phone: + 44 (0) 7771-668438
          E-mail: Mish.Desmidt@globalcrossing.com

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


TYCO INTERNATIONAL: Reports Second Quarter Loss of US$0.23/Share
----------------------------------------------------------------
Tyco International Ltd. (NYSE: TYC, BSX: TYC, LSE: TYI) reported
on Tuesday a loss from continuing operations of 23 cents per
share for its second quarter, compared to a loss from continuing
operations of $1.03 for the same period last year. Charges
totaled 55 cents per share in the quarter second quarter cash
flow well above expectations.

-- Second quarter 2003 results included 55 cents per share in
after-tax charges related to primarily non-cash adjustments
arising out of the Company's ongoing program of intensified
internal audits and detailed controls and operating reviews, a
change to an accelerated amortization method for its ADT dealer
program account assets, and a change in the accounting for the
connect fee associated with ADT's dealer program.

-- Second quarter 2002 results from continuing operations
included $1.53 per share in after-tax net charges related
primarily to the impairment of the Tyco Global Network, the
write-down of investments, and restructuring charges associated
with the downturn in the electronics and telecommunications
sectors.

Earnings per share from continuing operations for the six months
ended March 31, 2003 were 8 cents per share, including 55 cents
related to the charges noted above. For the six months ended
March 31, 2002 the loss from continuing operations was 56 cents
per share, including $1.65 related to the charges noted above.
See the discussion below and the accompanying tables to this
release for a more detailed description of these items by
category and by segment.

Revenues for the second quarter 2003 were $9.0 billion, up 4%
from $8.6 billion in the second quarter of last year, reflecting
favorable changes in foreign currency rates. For the six months
ended March 31, 2003 revenues were $17.9 billion, a 4% increase
over the same period last year due to favorable changes in
foreign currency rates.

Cash flow from continuing operating activities was $1.4 billion
in the quarter and $2.2 billion for the six months ended March
31, 2003, compared to $1.7 billion and $2.7 billion during the
same periods in 2002, respectively.

-- The Company changed its definition of "free cash flow" in
March 2003. Under the Company's current definition, second
quarter 2003 free cash flow was $833 million, or 47% above the
$568 million in the same period in 2002. For the six months ended
March 31, 2003, free cash flow was $967 million compared to
negative $205 million for the same period in 2002.

-- Under the Company's prior definition, free cash flow was $1.1
billion in the second quarter 2003, compared to $1.0 billion in
the same period in 2002. Free cash flow for the six months ended
March 31, 2003 was $1.5 billion compared to $850 million in the
same period in 2002.

("Free cash flow" is a non-GAAP metric used by the Company to
measure its ability to meet its future debt obligations, and is
also one component of measurement used in the Company's
compensation plans. See the accompanying table to this press
release for a cash flow statement presented in accordance with
GAAP, and a reconciliation presenting the components of free cash
flow.)

"Our cash flow this quarter was well ahead of what we projected,
demonstrating the underlying strength of our businesses, as well
as improvements in the collection of receivables and the
management of inventory." said Chairman and CEO Ed Breen. "And
even though we're operating in an economically challenging
environment, operationally our businesses delivered revenues and
segment results in line with the ranges discussed at our March
13, 2003 Investor meeting."

ACCOUNTING ITEMS

The charges arising out of the Company's ongoing program of
intensified internal audits and detailed controls and operating
reviews were $997.4 million pre-tax. This includes the $265
million to $325 million range of anticipated charges announced on
March 13th. Approximately 52% of the charges are the result of
applying management's judgment to estimates of reserves, accruals
and valuations of investments. The remaining 48% is attributable
to account reconciliation discrepancies, inappropriate
capitalization of expenses and other accounting adjustments, of
which 44% relate to prior periods from 1997 through the first
quarter of fiscal 2003. Approximately 60% of the total charges
related to the Fire and Security segment and 20% to Engineered
Products and Services.

The Company also recorded a charge of $364.5 million pre-tax to
reflect a change in the method of amortization used for ADT
dealer program account assets. The Company has adopted an
accelerated approach, based on a 200% declining balance, as
opposed to the 10 year straight line method previously in place.

The Company has also adopted the newly issued EITF 02-16, which
requires that the connect fee associated with ADT's dealer
program be recognized as a reduction of the dealer asset account
as opposed to a reduction in costs associated with the program.
The impact associated with this change in accounting is recorded
as a cumulative charge of $206.7 million after-tax as of October
1, 2002, $12 million pre-tax for the first quarter of fiscal 2003
and $7 million pre-tax in the second quarter of fiscal 2003.

The Company's continuing reexamination of the dealer program
assets and connect fee was part of management's evaluation of
this business as well as the ongoing process of responding to the
SEC's Division of Corporation Finance inquiries regarding the
dealer program. The Company has not completed its discussions
with the SEC on these matters or the other accounting items
announced today. The Company, with the concurrence of its
external auditors, believes that all of the charges announced
today, coupled with those set forth in the Company's Annual
Report on Form 10-K for fiscal 2002, are not material
individually or in the aggregate to any prior year, and
therefore, do not require a restatement of previously disclosed
operating results. The Company cannot predict the outcome of its
discussions with the SEC or that such outcome will not
necessitate further amendments or restatements of the Company's
results of operations. The Company hopes to resolve all issues
raised by the ongoing SEC Division of Corporation Finance review
during its fiscal third quarter.

"I am disappointed that our intensified internal audit and review
efforts have identified additional charges, but I believe at this
point we have identified all, or nearly all, legacy accounting
issues," Mr. Breen said. "We have completed balance sheet reviews
for all of our 2,154 accounting entities, and completed on-site
verification of these reviews covering the vast majority of our
assets. Additionally, the issues we have identified are almost
entirely non-cash."

QUARTERLY OPERATING RESULTS

The segment profits and margins presented in the tables below are
in accordance with generally accepted accounting principles
(GAAP). These profits and margins include the charges discussed
above. See the tables accompanying this release for a
classification of the charges by segment. Tyco Plastics and
Adhesives is presented as a separate reportable segment for all
periods. In fiscal 2002, its results were included in the
Healthcare and Specialty Products segment. Restated segment
results by quarter for fiscal 2002 are available at www.tyco.com.
All dollar amounts are stated in millions.

Electronics
March 31, 2003 March 31, 2002

Segment revenues $2,502.0 $2,493.9

Segment profit (loss) $348.6 ($2,588.4)

Segment margins 13.9% NM

Revenues were flat year over year as the positive impact of
changes in foreign currency and acquisitions was offset by lower
revenues at Tyco Telecommunications. Revenues in the electronic
components sector increased $160 million, or 7%, from foreign
currency and $21 million, or 1%, from acquisitions, offset by a
2% decline due to weakened customer demand as decreases in
telecommunications and industrial markets only partially offset
by growth in product sales into the automotive industry.
Telecommunications revenues declined $134 million, or 82%, to $29
million as no third party systems were built in 2003.

Segment profit includes a net credit of $17.3 million in 2003 and
charges of $2.957 billion in 2002. Favorable foreign currency
fluctuations contributed $27 million in 2003. These improvements
were partially offset by a decline in base profits and margins
due primarily to reduced sales and mix changes in the electronic
components sector.

Fire and Security Services
March 31, 2003 March 31, 2002

Segment revenues $2,778.9 $2,569.5

Segment (loss) profit ($702.6) $337.6

Segment margins NM 13.1%

Revenues increased 8% due primarily to a $150 million, or 6%,
positive impact of changes in foreign currency. Security revenues
increased approximately $62 million, or 5%, as a result of
foreign exchange. Fire revenues increased approximately $143
million, or 12%, including 7% from foreign exchange and 1% from
acquisitions.

The segment loss in 2003 includes $936.8 million in charges,
compared to $28.1 million in 2002. Excluding these charges,
operating income declined by $131.5 million year over year. In
our security business, increased depreciation and amortization
accounted for $48 million of the operating profit decline,
reflecting the impact of rapid growth in the subscriber asset and
dealer asset base in recent years, as well as the impact of
acquisitions. In the European security business, the year over
year decline in operating income was $ 42 million, primarily
reflecting allowance for doubtful accounts and other expenses
related to higher than expected attrition rates. The remainder of
the decline in operating income for the segment was attributable
to a weaker worldwide fire and contracting environment.

Fire and Security has recently announced restructuring programs
at its ADT U.S. and SimplexGrinnell operations, involving
reductions of 1,400 and 1,000 employees, respectively. These
restructuring programs will result in more streamlined and
effective operations going forward.

Healthcare
March 31, 2003 March 31, 2002

Segment revenues $2,137.3 $1,968.3

Segment profit $520.7 $448.7

Segment margins 24.4% 22.8%

Revenues increased 9%, including an $87 million, or 4%, increase
from favorable changes in foreign currency partially offset by a
$9 million decline from the net impact of acquisitions and
divestitures. The increase in net revenues was largely attributed
to increases in the Surgical sector resulting from the award of
the Consorta contract and the introduction of the new TA Stapler
product line; increases in the International division in Europe,
Japan and Asia Pacific partially offset by a decline in Latin
America; increases in the Pharmaceutical division due to higher
volumes in Dosage Narcotics, APAP and microelectronic chemicals;
increases in the Medical sector resulting from the April 2002
award of the Premier Wound Care Contract, successful launches of
new safety needle and prefill syringe products, and increased
demand in the Ultrasound market; increases in the Imaging
division resulting from higher sales across the full product
line; and increases in the Respiratory Division resulting mainly
from increased volumes in Helios. These sales increases were
partially offset by a decrease in Retail's base business.

Segment profit includes $7.7 million in net charges in 2003 and
$7.8 million in charges in 2002. Profits in 2003 were favorably
impacted by $24.5 million from foreign currency exchange
fluctuations. The remaining increase in profits and margins was
largely attributed to the favorable sales performance noted
above, favorable absorption as a result of increased production
volumes, and continued focus on optimizing operating expenses.

Engineered Products and Services
March 31, 2003 March 31, 2002

Segment revenues $1,073.6 $1,101.2

Segment (loss) profit ($73.0) $152.7

Segment margins NM 13.9%

Revenues declined 3% compared to the second quarter of 2002,
comprised of a 9% decline primarily due to weaker non-residential
construction markets and lower levels of capital and project
spending by customers partially offset by a 6% benefit from
favorable movements in foreign currency. Declines were most
notable in Flow Control due to weaker valve and thermal control
markets; Electrical and Metal Products, as lower levels of
activity in non-residential construction markets was only
partially offset by higher selling prices; and Earth Tech,
primarily as a result of declines in government spending for
environmental and other projects and declines in construction
projects.

Segment results include charges of $178.3 million in 2003 and
$12.5 million in 2002. The decrease in profits and margins was
due primarily to lower volume and competitive conditions in our
major markets for valves and controls, thermal controls and
electrical and metal products, as well as higher raw material
costs.

Plastics and Adhesives
March 31, 2003 March 31, 2002

Segment revenues $488.5 $ 478.5

Segment profit $20.4 $47.9

Segment margins 4.2% 10.0%

Revenues increased $10 million including a $9 million benefit
from foreign currency. Higher selling prices in Plastics as a
result of price increases related to the rising cost of raw
materials, as well as increases in both Plastics and Adhesives
resulting from higher volume of plastic sheeting and duct tape
products, were offset by general economic weakness in the retail,
food service, automotive, industrial and HVAC markets.

Segment profit and margins declined year over year due to $26.7
million in charges recorded in 2003. Additionally, the impact of
rising raw material costs and a less favorable sales mix were
offset by lower selling, general and administrative expenses.

Other Items

Net interest expense was $278 million, up 23% from $226 million
in the same period a year ago, primarily due to increased
borrowing costs.

Corporate expenses for the second quarter of 2003 include
approximately $61 million of charges arising out of the Company's
ongoing program of intensified internal audits and detailed
controls and operating reviews. Additionally, Corporate expenses
include incremental costs of $92 million to maintain and extend
liability coverage under the Company's Directors and Officers
(D&O) and Fiduciary insurance policies for the years 2001 to
2002.

LIQUIDITY

The Company had cash on hand of approximately $4.0 billion at
March 31, 2003 compared to approximately $5.7 billion at December
31, 2002 and approximately $6.2 billion at September 30, 2002.

During the second quarter, the Company issued convertible bonds
with net proceeds of $4.4 billion, redeemed $3.9 billion in bank
credit facilities and purchased $1.8 billion of its zero coupon
convertible bonds due to the exercise of a put option by the
holders of the security. The Company also repurchased $1.4
billion par value of its outstanding zero coupon bonds that have
a put exercisable at the option of the holders in November 2003,
at a purchase price of approximately $1.1 billion. Approximately
$2.5 billion of this security remains outstanding. Other debt
repurchases amounted to approximately $38 million. In January,
the Company entered into a $1.5 billion 364-day unsecured
revolving credit facility, none of which has been drawn down.

Tyco's debt-to-capitalization ratio was 46.2% at March 31, 2003,
compared with 48.3% at December 31, 2002 and 49.4% at September
30, 2002. The net debt- to-capitalization ratios were 37.8%,
36.9% and 36.8%, respectively, for the same periods.

The Company has put in place a guarantee from Tyco International
Group S.A. (Luxembourg) (TIGSA) to bond holders of the Tyco
International Ltd. (Bermuda) zero coupon bonds due 2020 with a
put option in November 2003. The Company has also put in place
inter-company guarantees, primarily from its U.S. operating
subsidiaries representing about two-thirds of consolidated
tangible assets, in favor of TIGSA which should address the
structural subordination concerns of Standard & Poor's Ratings
Services (S&P). The inter- company guarantees become effective
only if S&P's senior unsecured credit rating for TIGSA falls
below BBB-.

OUTLOOK

Mr. Breen concluded: "Even in an uncertain global economy, our
business units exceeded our expectations on cash flow generation
and met our revenue expectations. These businesses traditionally
have their strongest performance in the third and fourth quarters
of the fiscal year. We believe that this will again be the case
this year. The Fire and Security changes in amortization will
result in a few cents higher expense for the second half of the
year. Even with this we will strive continue to strive to achieve
the low end of the range we set out for the second half of the
year on March 13th. Additionally, we expect that our free cash
flow will be at the top end of the range discussed on March
13th."

ABOUT TYCO INTERNATIONAL

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in medical device products, and plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2002 revenues from continuing operations of approximately
$36 billion.

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

CONTACTS:  Media: Gary Holmes, 212-424-1314
           Investor Relations: Kathy Manning, 603-334-3900



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

ELETROPAULO METROPOLITANA: AES To Continue Talks With BNDES
-----------------------------------------------------------
U.S. power firm AES Corp. gained more time to negotiate debts
with Brazil's BNDES National Development Bank.

On Monday, the Company's executives met with BNDES Chief
Financial Officer Roberto da Costa to present its latest proposal
to restructure US$1.2 billion of debt. However, the proposal
didn't meet the bank's minimum requirements, the BNDES chief
said, without revealing what those requirements are.

A 90-day waiting period after AES's first default on debt
payments was due Wednesday, freeing BNDES to take legal action to
seize AES's local power distribution unit Eletropaulo
Metropolitana SA in lieu of non-payment, Da Costa said.

However, the BNDES exec said it would continue talks with the
cash-strapped power firm and not try to exercise the right to
seize ordinary shares in Eletropaulo after midnight on Wednesday.
But, it would carry on with its plans to auction off preferred
shares in it.

"We would be facing a court fight of years and years. One, two or
three days (of wait) cannot be more important than that," he
said, adding that BNDES was expecting to hear a new proposal from
AES after Friday's meeting of AES top brass.

Voting shares would give BNDES control of Eletropaulo.

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


IDEIASNET: To Make Acquisitions In Biotech, Telecoms Industries
---------------------------------------------------------------
Rio de Janeiro-based tech venture capital fund IdeiasNet said it
would use a BRL750,000-million capital increase carried out at
the beginning of April to fund acquisitions in the biotechnology
and telecoms industries.

IdeiasNet plans to make acquisitions in the target industries in
line with its more recent strategy to distance itself from dotcom
ventures.

"The market realized that the Internet is not a sector, but
rather a technological tool. Even we had to adapt ourselves to
this new reality," IdeiasNet investor relations director Rodin
Spielmann said.

IdeiasNet posted this week a 59.5% year-on-year reduction in net
losses for 2002, at BRL3.56 million. The improvement was in part
the result of administrative restructuring, causing operational
costs to drop to BRL4.1 million, compared to BRL6.7 million in
2001.

The Company's equity also increased in the quarter, due to a 10%
stake increase in the 4Q02 in the Company's flagship subsidiary,
software maker Softcorp, causing Ideiasnet total equity to reach
BRL2.89 billion in the first quarter, up from BRL714 million in
the 4Q02.


TELEMAR: HP Brasil Rumored To Acquire Tnext
-------------------------------------------
Widespread rumors suggest that the Brazilian subsidiary of
multinational computer hardware manufacturer Hewlett-Packard may
acquire Tnext, the Internet Data Center (IDC) unit of fixed line
incumbent Telemar.

An HP spokesperson refused to confirm the rumors but told
Brazilian tech news agency IT Web that HP Brasil would have a big
announcement next week.

Citing a Telemar executive, Business News Americas relates that
Telemar froze all investments in Tnext late last year and put its
management under direct Telemar control.

"[Tnext] was not profitable enough to remain independent,"
Telemar CEO Ronaldo Iabrudi said at the time.

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

          Carlos Lacerda
          carlosl@telemar.com.br
          55 21 3131 1314

          Fax: 55 21 3131 1155

          GLOBAL CONSULTING GROUP
          Rick Huber, richard.huber@tfn.com
          Mariana Crespo, mariana.crespo@tfn.com

          Tel: 1 212 807 5026
          Fax: 1 212 807 5025

Investor Relations Website: www.telemar.com.br/ri


VARIG: Controllers Mulling Government's Planned Takeover
--------------------------------------------------------
The controlling shareholders of Viacao Aerea Rio-Grandense SA
(Varig) were expected to decide Wednesday on a plan wherein
Brazil's government would take over the ailing airline under a
proposed merger with rival TAM Linhas Aereas SA.

Citing a merger proposal by the airline's adviser, Banco Fator
SA, O Globo reports that the government would control 70% of the
new airline because development bank BNDES and other state
companies are Varig's biggest creditors.

State-run Banco do Brasil SA and other creditors will have to
forgive debt and invest as much as US$550 million in the new
company, giving them the right to control, the paper adds.

The current controllers of Varig and Tam would end up with 30% of
the airline.

Varig, which lost BRL2 billion in the first nine months of 2002,
sees the merger as the only way to prevent a financial collapse.

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

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

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br



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

AES CORP.: May Use Dividends To Pay Interest On Debt With Unit
--------------------------------------------------------------
US-based power company AES Corp will pay interest on a US$300-
million debt with its Chilean generation subsidiary AES Gener by
using its share of 2002 profits earned by the unit, Business News
Americas relates, citing representatives of AES Corp's investment
group Inversiones Cachagua, who spoke at AES Gener's annual
shareholders meeting.

AES Corp. lacks the cash to settle the current debt, hence it
will pass on its share of US$29 million dividends that AES Gener
plans to distribute amongst shareholders after posting
consolidated net profits of CLP32.4 billion (currently US$46.1
million) in 2002.

AES Corp may also have to sell part of its 98.65% stake in AES
Gener to pay the remainder of the debt due in February 2004,
according to AES Gener CEO Felipe Ceron.


ENERSIS: ENDESA Reports First Quarter 2003 Consolidated Results
---------------------------------------------------------------
Overall results represent a 12.8% decrease over the same period
of 2002 when earnings were positively affected by the sale of
87.5% of Viesgo; if compared in homogeneous terms, that is,
disregarding the net effect of capital gains and extraordinary
provisions, first quarter 2003 net income increased by 43.1% over
the same period of 2002.

-- Cash flow from operations amounted to Euro 991 million during
the first quarter 2003, a 35.8% increase versus the same period
of 2002.

-- Ordinary income was Euro 590 million in the first quarter of
2003, compared to a Euro 161 million loss over the same period of
2002. This increase shows the important improvement in the
quality of the results.

-- Ordinary income was Euro 590 million in the first quarter of
2003, compared to a Euro 161 million loss over the first quarter
of 2002.

-- Operating income for the domestic electricity business
amounted to Euro 460 million, an 8.0% increase against the same
period of 2002.

-- This increase reveals the competitiveness of ENDESA's
generation mix that, despite its strong thermal generation
component, shows a remarkable stability even in periods of strong
hydro generation, as the first quarter 2003.

-- Operating income for the electricity business in Europe
amounted to Euro 107 million, a 27.4% increase over the first
quarter 2002.

-- Operating income in the Latin America electricity business
amounted to Euro 291 million in the first quarter 2003. This
represents a 13.1% decrease over the first quarter 2002, a
favourable evolution if compared to the 34.6% average devaluation
of the local currencies in the five countries where ENDESA
operates.

-- In local currency terms, operating income from the Latin
American companies increased by 38.5% while in US dollar terms
grew by 6.4%, showing its strong profitability potential.

-- Latin America electricity business has shown a Euro 19 million
loss, which represents a remarkable improvement compared to the
Euro 183 million loss of the first quarter of 2002.

-- ENDESA's operating income amounted to Euro 864 million,
increasing 2% against the same period in 2002.

-- ENDESA reduced its debt by Euro 2,881 million over the debt
reported in December 2002. As a consequence, debt fell to Euro
19,866 million as of March 31st 2003.

-- Compared to the debt outstanding on March 31st 2002, ENDESA's
debt decreased by Euro 5,028 million until March 31st 2003.

-- Average cost of debt for the quarter was 5.2%, in line with
the cost in the first quarter of 2002.

-- Average cost of debt for ENDESA, excluding ENERSIS, was 4.3%.

-- The significant debt reduction and the stable average cost
have allowed a 5.1% decrease in net financial expenses.

-- In the first quarter 2003, ENDESA significantly improved its
leverage ratio: debt to equity and minorities decreased 54
percentage points, from 203% at year-end 2002 to 149% on March
31st 2003.

-- Following ENDESA's 2002-2006 Strategic Plan, total investments
in the first quarter of 2003, decreased by 47% vis-a-vis the same
period of 2002, amounting to Euro 477 million.

-- In the first quarter of 2003, capital expenditures in the
domestic distribution business amounted to Euro 101 million, a
9.8% increase over the same period in 2002.

(NYSE:ELE) ENDESA's net income for the first quarter of 2003 was
Euro 669 million and earnings per share were Euro 0.63.

As a consequence of the capital gains from the sale of 87.5% of
Viesgo in the first quarter 2002 and the extraordinary provisions
allocated in the same period, the evolution of both, net income
and earnings per share showed a 12.8% decrease. However, should
the capital gains and extraordinary provisions effects be
discounted, net income and earnings per share in the first
quarter 2003 increased by 43.1% over the same period in 2002.

First quarter 2003 cash flow amounted to Euro 991 million, a
35.8% increase over the same period in 2002, hence, showing the
same trend as the adjusted net income mentioned above.

Ordinary income was Euro 590 million in the first quarter of
2003, with an increase of Euro 751 million over the same period
in 2002, when showed a Euro 161 million loss. This change shows a
positive operative evolution of the Company together with the
important improvement in the quality of the results.

Operating income amounted to Euro 864 million, increasing 2% over
the same period in 2002. This growth was mainly based on the 8%
increase in the operating income of the domestic electricity
business, despite it did not include the result from the
transmission network sold to Red Electrica de Espana, S.A (REE).

Regarding the Latin America electricity business, operating
income amounted to Euro 291 million in the first quarter 2003,
Euro 44 million lower than first quarter 2002.

This amount represents a 13.1% decrease and is mainly due to the
local currencies devaluation between the first quarter 2002 and
the same period in 2003.

On the other hand, in local currency terms operating income
increased by 38.5% while in US dollar terms grew by 6.4%.

As for electricity business from European countries other than
Spain, operating income amounted to Euro 107 million, a 27.4%
increase over the first three months of 2002.

Financial results improved by Euro 682 million over the same
period of 2002. This positive evolution is mainly due to lower
foreign exchange differences that amounted to a Euro 64 million
net gain, against a Euro 573 million loss in the first quarter
2002.

Between March 31st 2002 and March 31st 2003, ENDESA debt
decreased by Euro 5,028 million. This substantial decrease,
together with a sustained average cost of debt over the first
quarter 2002, enabled a 5.1% decrease in net financial expenses.

In the first quarter 2003, ENDESA continued the implementation of
the asset disposal plan included in the Strategic Plan 2002-2006
with the completion of the sales of the mainland transmission
network and certain real estate assets both agreed in 2002, as
well as the sale of the stake in REPSOL. These transactions
delivered Euro 658 million in gross capital gains.

Moreover, in the first months of 2003 ENERSIS Group agreed the
sale in Chile of Rio Maipo distribution company, Canutillar hydro
power plant and the transmission assets of the Norte Grande
interconnected system for a total amount of US dollar 454 million
not accounted in the first quarter 2003 financial statements.

As of March 31st 2003, ENDESA's net debt amounted to Euro 19,866
million, representing a Euro 2,881 million reduction over the net
debt outstanding on December 31st, 2002.

A significant part of this reduction is due to the Euro 1,500
million Preferred Securities issue by ENDESA Capital Finance LLC,
increasing the minority interests in the balance sheet and
decreasing debt for the same amount, hence enabling a significant
improvement of ENDESA's financial structure.

As a consequence of this, ENDESA's leverage on March 31st 2003
was 149% against 203% in December 31st 2002.

Additionally, in the first quarter 2003 ENDESA made several long-
term financial transactions that besides extending the average
term of debt, increased ENDESA's liquidity in Spain. On March
31st 2003, liquidity amounted to Euro 4,926 million, more than
covering the debt maturing in Spain in the next two years.

Moreover, ENERSIS' debt refinancing and the already agreed
divestitures will bring to this company the coverage of debt
maturing on December 2005.

On the other hand, in the first quarter 2003 extraordinary
provisions were allocated to cover different contingencies for an
amount of Euro 118 million.

Finally, its important to point out the significant improvement
in AUNA's and Smartcom's results, meaning for ENDESA a Euro 43
million increase in the equity income contribution from these
stockholdings.

1. Change in consolidated perimeter.

As a consequence of the agreement for the sale of ENERSIS' stake
in Rio Maipo, this company is no longer globally consolidated in
ENDESA's accounts in the first quarter 2003.

Additionally, as a consequence of the sale of ENDESA's stake in
REPSOL, its consolidation by equity method has also been
discontinued in the first quarter 2003.

Finally, since January first, 2003 ENDESA Gas is no longer
included in ENDESA Diversificacion and started reporting to
ENDESA Red. For this reason, the results of the gas distribution
and supply activities have been included in the domestic
electricity business, instead of under "other business" as was
reported in the first quarter 2002.

2. Analysis of Results.

The table below shows the main magnitudes of ENDESA's
consolidated profit and loss account for the first quarter of
2003 and their comparison against the same period in 2002.

Main magnitudes of ENDESA's profit and loss account

(Euro million)
----------------------------------------------------------------
                                              1Q-03 1Q-02 %Chge.
----------------------------------------------------------------
Revenues                                      3,927 4,374 -10.2
----------------------------------------------------------------
EBITDA                                        1,258 1,294  -2.8
----------------------------------------------------------------
Operating Income                                864   847   2,0
----------------------------------------------------------------
Ordinary Income                                 590  (161)  N/A
----------------------------------------------------------------
Net Income                                      669   767 -12.8
----------------------------------------------------------------
Cash flow                                       991   730  35.8
----------------------------------------------------------------

1.1 Operating income

ENDESA's revenues in the first quarter 2003 amounted to Euro
3,927 million, a 10.2% decrease over the same period of previous
year.

EBITDA was Euro 1,258 million, showing a 2.8% decrease vis-a-vis
the first quarter of 2002.

Operating income for the first three months of 2003 was Euro 864
million, an increase of 2.0% against the same period last year.

The table below shows a breakdown of revenues, EBITDA, operating
income and cash flow among the different markets and lines of
business in which ENDESA operates.

                               Electricity
            Domestic       Europe     Latin America      Other
----------------------------------------------------------------
          Euro   % on   Euro   % on   Euro   % on     Euro % on
         Million total Million total Million total Million total
-----------------------------------------------------------------
Revenues 2,470  62.9     582  14.8     844  21.5      31   0.8
-----------------------------------------------------------------
EBITDA     716  56.9     135  10.8     394  31.3      13   1.0
-----------------------------------------------------------------
Operating
income    460  53.2     107  12.4     291  33.7       6   0.7
-----------------------------------------------------------------
Cash flow  426  43.0     122  12.3     130  43.4      13   1.3
-----------------------------------------------------------------

1.2 Domestic electricity business

Operating income for the domestic electricity business was Euro
460 million, an increase of Euro 34 million in absolute and 8.0%
in relative terms against the same period of 2002.

Its important to highlight that this evolution has been affected
by the sale of the mainland transmission network. In homogeneous
terms, operating income for the first quarter of 2003 increased
by 11.3% over the same period in 2003.

Among other things, this increase in the operating income
reflects the high competitiveness of ENDESA's generation mix and
the remarkable stability in the operating income even in periods
of strong hydro generation as in the first quarter 2003.

This higher operating income has been mainly due to the 1.65%
average increase in the 2003 regulated electricity tariff, the
3.2% increase of the liberalized customer electricity prices and
the Euro 50 million lower fuel costs as a consequence of better
hydro conditions in the first quarter of 2003.

Paragraphs below show a detailed analysis of the items comprised
in the operating income.

1.2.1 Revenues

Revenues from the domestic electricity business amounted to Euro
2,470 million in the first quarter of 2003, a decrease of 11.1%
against the same period of 2002.

The table below shows a breakdown of revenues.

                                            Euro million
--------------------------------------------------------------
                                      March March Change %Chge
                                       31st  31st
                                       '03   '02
--------------------------------------------------------------
Revenues                             2,285 2,884  (599)-20.8
--------------------------------------------------------------
CTC by technology                      107     -   107   N/A
--------------------------------------------------------------
Tariff deficit                              (179)  179   N/A
--------------------------------------------------------------
CTC coal                                19    11     8  72,7
--------------------------------------------------------------
Services                                59    61    (2) -3,3
--------------------------------------------------------------
TOTAL                                2,470 2,777  (307)-11.1
--------------------------------------------------------------


Sales

Sales in the first quarter of 2003 were Euro 2,285 million,
broken down as follows:

                                            Euro million
----------------------------------------------------------------
                                       March March Change %Chge.
                                         31st  31st
                                         '03   '02
----------------------------------------------------------------
Generation, mainland                     633 1,077  (444)-41.2
----------------------------------------------------------------
Distribution and transmission, mainland  931 1.199  (268)-22.3
----------------------------------------------------------------
Supply                                   324   288    36  12.5
----------------------------------------------------------------
Trading                                   33    27     3  11.1
----------------------------------------------------------------
Extra peninsular systems                 228   209    19   9.1
----------------------------------------------------------------
Extra peninsular compensations            54    52     2   3.8
----------------------------------------------------------------
Gas                                       48    12    36   N/A
----------------------------------------------------------------
Other(a)                                  34    20    14  70.0
----------------------------------------------------------------
TOTAL                                  2,282 2,884  (602)-20.9
----------------------------------------------------------------

(a) As a consequence of including the gas distribution business
into ENDESA Red, gas revenues in the first quarter 2003 includes
both regulated and non-regulated revenues, while in 2002 only
included non-regulated revenues.

Generation

In the first quarter 2003, demand for electricity in the mainland
grew by 4.8% against the same period of 2002. However, the output
from generators under the ordinary regime was 5.8% higher than in
the first quarter 2002, due to the 85% decrease in the imports of
electricity and a 14.9% higher output from generators under the
special regime.

ENDESA's output in the mainland sold in the wholesale market was
19,304 GWh in the first quarter of 2003, a 0.6% decrease against
the same period of 2002. This represents a 40.5% market share in
the ordinary regime.

Despite approximately the same generation output than in the
first quarter 2002, sales in the mainland were 41.2% lower as a
result of a 42.5% lower pool price that averaged to 3.02 Euro
cents per kWh. This decrease in the pool price was due to lower
fuel costs of the system driven by better hydro conditions.

Nevertheless, the reduction in generation revenues due to the
lower pool prices has been compensated by the lower fuel costs as
well as by the natural hedging of the generation price, that is,
CTC's and the supply business.

The table below shows the structure of the generation in the
mainland for both ENDESA and the whole of the industry for the
first quarters of 2002 and 2003:

Structure of electricity generation in the mainland for ENDESA
and the
total industry (%)
----------------------------------------------------------------
                                            Endesa      Total
                                                      industry
----------------------------------------------------------------
                                          1Q    1Q    1Q    1Q
                                          2003  2002  2003  2002
----------------------------------------------------------------
Nuclear                                   34.4  36.4  31.6  32.1
----------------------------------------------------------------
Coal                                      42.5  51.5  32.7  45.9
----------------------------------------------------------------
Hydro                                     17.7   6.8  29.8  10.1
----------------------------------------------------------------
Fuel-gas                                   1.2   5.3   1.7  11.9
----------------------------------------------------------------
CCGT                                       4.2     -   4.2     -
----------------------------------------------------------------
Total                                    100.0 100.0 100.0 100.0
----------------------------------------------------------------

Distribution

ENDESA sold 19,898 GWh in the mainland in the first quarter of
2003. This figure represents a share of 41.4% of distribution in
the mainland.

Revenues from distribution in the mainland dropped by Euro 268
million. This decrease corresponded to the lower cost of energy
purchases, mainly as a result from the lower pool prices.
Regulated margin on distribution remains at similar levels as in
the first quarter 2002.

Should this effect been discounted, distribution sales would have
increased by Euro 13 million against first quarter of 2002, a
4.4% rise.

Supply

In the first three months of 2003, ENDESA sold 5,912 GWh to
eligible customers, a 9.0% increase against the same period of
2002.

This higher electricity sold together with a 3.2% increase in its
average price, resulted in a 12.5% revenues increase in supply,
amounting to Euro 324 million.

Extra Peninsular Systems

In the first quarter 2003 ENDESA's output in the extra peninsular
systems was 2,876 GWh, 7.6% higher than in the first quarter of
2002.

Sales in these markets amounted to Euro 228 million, a 9.1%
increase against the same period of 2002 driven, among other
reasons, by higher demand.

In addition to this, revenues include Euro 54 million from
compensations, a Euro 2 million increase against the first
quarter of 2002.

CTC and tariff deficit

As a consequence of better hydro conditions in the first quarter
2003 over the same period of 2002, total revenues of the industry
covered the costs of the system. The balance has been applied to
CTC's, corresponding to ENDESA Euro 107 million.

On the other hand, in the first quarter 2002 total industry
revenues did not cover all recognized costs of the system. For
this reason, a shortfall in the regulated business revenues -
tariff deficit- emerged. ENDESA, due to a lack of security in its
recovery, reported this shortfall as lower revenues for an amount
of Euro 179 million.

1.2.2 Operating costs

The table below shows operating costs for the domestic
electricity business in the first quarter of 2003 and its
comparison with the same period of 2002.

                                             Euro million
                                         1Q-03 1Q-02 Change% chg.
-----------------------------------------------------------------
Purchases                                1,418 1,785  (367)-20.6
-----------------------------------------------------------------
Purchases of energy                       926 1.315  (389)-29.6
-----------------------------------------------------------------
Fuel                                      358   390   (32) -8.2
-----------------------------------------------------------------
Transmission and other external expenses  134    80    54  67.5
-----------------------------------------------------------------
Depreciation                               256   264    (8) -3.0
-----------------------------------------------------------------
Provisions                                   7    15    (8)-53.3
-----------------------------------------------------------------
Personnel                                  208   211    (3) -1.4
-----------------------------------------------------------------
Other Operating Costs                      169   110    59  53.6
-----------------------------------------------------------------
TOTAL                                    2,058 2,385  (327)-13.7
-----------------------------------------------------------------

Purchases

In the first quarter 2003, purchases decreased by Euro 367
million or 20.6% against first quarter 2002 mainly due to the
following reasons:

-- Lower energy purchases by ENDESA's distribution and supply
subsidiaries in the amount of Euro 389 million, representing a
29.6% decrease over the same period of 2002. This decrease was
due to the reduction in the average pool price mentioned above.

-- Fuel costs decreased by Euro 50 million as a consequence of
higher hydro generation in the first three months of 2003 when
compared to the same period of 2002.

-- Gas purchases for the regulated gas business amounting to Euro
18 million that in the first quarter 2002 was reported in "Other
businesses". This is a consequence of the inclusion of ENDESA Gas
financial information in ENDESA Red, while in 2002 it was
reported in ENDESA Diversificacion.

-- Electricity transmission costs increased by Euro 54 million
due to the sale of the transmission network.

Personnel expenses

On March 31st 2003 workforce of ENDESA's domestic electricity
business amounted to 13,587 employees. Should the 109 employees
of ENDESA Gas been disregarded, since in 2002 this company was
reported under "Other businesses", ENDESA's workforce would have
decreased by 70 employees over December 31st 2002.

Personnel expenses in the first quarter 2003 amounted to Euro 208
million, a 1.4% decrease versus the same period of 2002.

Other operating expenses

Other operating expenses amounted to Euro 169 million in the
first quarter 2003, increasing by Euro 59 million when compared
to the same period of 2002.

This increase was due to the following reasons:

-- Euro 31 million corresponded to certain expenses materialized
in advance. This does not imply any change in total annual
expenses; therefore, this amount will be diluted in the following
quarters to be compared with the same period of 2002.

-- Expenses related to new activities amounted to Euro 9 million.
These activities are mainly related to domestic electricity
business, that is, CCGT's, gas distribution and liberalized
retail customer service.

-- Higher offices lease costs of Euro 7 million. This was due to
the transfer to the new headquarters in Campo de las Naciones and
to the sale of real estate assets.

-- Tax cost increased mainly due to the public thoroughfare levy,
amounting to Euro 8 million.

1.2. European electricity business

Operating income for the electricity business in European
countries other than Spain amounted to Euro 107 million, a 27.4%
increase over the first quarter 2002.

This result entirely corresponds to the activity carried out by
ENDESA Italia.

Trading business in European markets is included in both revenues
and energy purchases, delivering a balanced result.

The table below shows the operating result variation of ENDESA
Italia in the first quarters of 2003 and 2002.

Euro million
-----------------------------------------------------------------
                                        1Q-03 1Q-02 Change% chge.
-----------------------------------------------------------------
Revenues                                  367  312    55   17.6
-----------------------------------------------------------------
Other revenues                              4    2     2    100
-----------------------------------------------------------------
Energy purchases                          (22)   -   (22)   N/A
-----------------------------------------------------------------
Raw materials                            (179)(164)  (15)   9.1
-----------------------------------------------------------------
Energy transmission                        (1)   -    (1)   N/A
-----------------------------------------------------------------
Personnel expenses                        (16) (18)    2  -11.1
-----------------------------------------------------------------
Depreciation                              (27) (29)    2   -6.9
-----------------------------------------------------------------
Other expenses                            (16) (17)    1   -5.9
-----------------------------------------------------------------
Operating income                          110   86    24   27.9%
-----------------------------------------------------------------

Revenues increased by 17.6% over the first quarter 2002 as a
result of a 5.7% increase in energy sales and higher sales price
in all its components: a 12% increase in the fuel costs
remuneration in the regulated market and a 8.4% increase in the
sales price in the liberalized market.

Total electricity sales in the first quarter 2003 was 4,981 GWh,
of which 365 Gwh corresponds to electricity purchased from third
parties representing a Euro 22 million cost. ENDESA Italia total
output amounted to 4,626 GWh in the first quarter 2003 compared
to 4,718 Gwh in the same period of 2002.

This 92 Gwh output decrease breakdowns in a 236 GWh increase in
hydro generation and a 329 GWh decrease in thermal generation,
enabling Euro 15 million in lower fuel costs.

Its important to highlight that in the first quarter 2003 fixed
personnel costs and other operating costs decreased as a result
of lower workforce that, on March 31st 2003, totaled 1,125
employees, while on March 31st 2002 was 1,286 employees.

1.3. Latin American electricity business

Electricity demand strongly recovered in all the countries where
ENDESA operates in the first quarter 2003 over the same period in
2002.

Electricity distributed specially grew in Brazil, Chile and Peru.
This growth fits with the first symptoms of recovery from the
economic situation suffered by the region during 2002.

This reveals that the Latin America electricity business of
ENDESA will experience a remarkable improvement once the
consolidation of these recovery symptoms occurs. This also shows
its endurance to tough economic scenarios, compared to other
industries of the economy.

The table below shows the physical data of generation and
distribution businesses of ENDESA's affiliates in the first
quarter 2003 over the same period in 2002.

                                 Generation (GWh) Distribution
                                                      (GWh)
-----------------------------------------------------------------
                                 1Q 2003    %    1Q 2003    %
                                         Chge./1Q        Chge./1Q
                                           2002            2002
-----------------------------------------------------------------
Chile                             4,310     4,2   2,499     6.0
-----------------------------------------------------------------
Colombia                          2,518    -5.9   2,239     2.6
-----------------------------------------------------------------
Argentina                         2,432   -13.3   3,168     2.6
-----------------------------------------------------------------
Brazil                              402     1.8   3,350    11.8
-----------------------------------------------------------------
Peru                              1,298    13.7     999     5.2
-----------------------------------------------------------------
TOTAL                            10,960    -1.7  12,255     5.9
-----------------------------------------------------------------

Financial results were significantly affected by the consequences
of the difficult economic scenario that Latin America went
through in 2002, felt with mixed intensity among the different
countries of the area. Particularly important were the local
currencies devaluations against the Euro between the first
quarter 2002 and the same period of 2003, ranging between 18.9%
in the Peruvian Sol and 47.3% in the Argentinean Peso.

However, the economic recovery symptoms mentioned above, have
begun to be reflected in the operative performance of these
companies measured both in local currencies and in US dollar.

Operating income for the Latin American electricity business in
amounted to Euro 291 million, a 13.1% decrease against first
quarter 2002. However, in local currency terms, operating income
from the Latin American companies that are fully consolidated
increased by 38.5% while in US dollar grew by 6.4%, showing its
profitability potential.

The table below shows the performance of the EBITDA and operating
income in Latin America broken down by activity:

                                                Euro million
---------------------------------------------------------------
                                    EBITDA     Operating income
---------------------------------------------------------------
                              2003 2002 %chge. 2003 2002 %chge.
---------------------------------------------------------------
Generation                     203  240 -15.4  149  170  -12.4
---------------------------------------------------------------
Distribution & Transmission    200  243 -17.7  151  173  -12.7
---------------------------------------------------------------
Others (a)                     (9)  (4)  N/A   (9)  (8)   N/A
---------------------------------------------------------------
Total                          394  479 -17.7  291  335  -13.1
---------------------------------------------------------------

(a) 2002 includes Rio Maipo. Since this company was sold in 2003,
it was not included in the 2003 operating income.

The table below shows EBITDA and operating income of generation
and distribution in the first quarter 2003 and the same period of
2002, broken down by country where ENDESA has fully consolidated
affiliates.

                                          EBITDA      Operating
                                                        income
-----------------------------------------------------------------
                                     1Q- 1Q- %Chge. 1Q- 1Q- %Chg.
                                     03  02         03  02
-----------------------------------------------------------------
Generation
-----------------------------------------------------------------
Chile                                81  98 -17.3  59  73 -19.2
-----------------------------------------------------------------
Colombia                             44  54 -18.5  34  37  -8.1
-----------------------------------------------------------------
Brazil                               11  17 -35.3   9  14 -35.7
-----------------------------------------------------------------
Peru                                 36  43 -16.3  23  32 -28.1
-----------------------------------------------------------------
Argentina                            31  28  10.7  24  14  71.4
-----------------------------------------------------------------
TOTAL Generation                    203 240 -15.4 149 170 -12.4
-----------------------------------------------------------------

Distribution & Transmission
-----------------------------------------------------------------
Chile                                34  44 -22.7  30  39 -23.1
-----------------------------------------------------------------
Colombia                             30  38 -21.1  15  16  -6.3
-----------------------------------------------------------------
Brazil                               94  97  -3.1  79  76   3.9
-----------------------------------------------------------------
Peru                                 18  22 -18.2  11  14 -21.4
-----------------------------------------------------------------
Argentina                            24  42 -42.9  16  28 -42.9
-----------------------------------------------------------------
TOTAL Distribution & Transmission   200 243 -17.7 151 173 -12.7
-----------------------------------------------------------------

Its important to point out that in all countries the decrease in
operating income was lower than the local currency devaluation,
meaning that operating income increased in local currency terms
in all countries were ENDESA operates.

Likewise, income in Colombia both in generation and distribution
decreased by less than 10% over the first quarter 2002, while the
devaluation in the Colombian peso against Euro was 36.7%. This
was made possible by the high correlation between the electricity
prices and US dollar.

In the rest of countries, income decreased, in general, less than
local currency devaluation. However, the pass through of 2002
currency devaluation to electricity prices is more gradual than
in Colombia, although it is foreseeable that an important part of
the 2002 devaluations will be recovered in the future.

3. Financial results

Financial results showed a net loss of Euro 187 million in the
first quarter 2003, this is Euro 682 million lower than the same
period of 2002, broken down as follows:

                                            Euro million
--------------------------------------------------------------
                                          1Q   1Q  Change   %
                                         2003 2002       Chge.
--------------------------------------------------------------
Financial expenses                       (355)(376)   21   5.6
--------------------------------------------------------------
Financial income                           58   63    (5) -7.9
--------------------------------------------------------------
FX Differences                             64 (573)  637   N/A
--------------------------------------------------------------
Monetary correction                        46   18    28 155.6
--------------------------------------------------------------
Change in provisions                        -   (1)    1   N/A
--------------------------------------------------------------
Total financial income                   (187)(869)  682  78.5
--------------------------------------------------------------

3.1. Net financial expenses

In the first quarter 2003 ENDESA reduced its debt by Euro 2,881
million over the debt reported in December 2002. As a
consequence, debt fell to Euro 19,866 million as of March 31st
2003.

Debt reduction was the result of the following:

-- Result from operations in the quarter resulted in a debt
reduction of Euro 997 million. Items 7 and 8 below show the
sources and uses of funds that resulted in such reduction.

-- Preferred notes issued by ENDESA Capital Finance LLC for an
amount of Euro 1,500 million, increasing the minority interests
and reducing debt by such amount.

-- Variation in the exchange rates against the Euro of the
currencies in which the debt of the consolidated affiliates is
denominated have resulted in a Euro 351 million decrease of the
total consolidated debt.

-- The consolidation perimeter changes resulted in a debt
reduction of Euro 33 million.

Its important to highlight the significant improvement of
leverage. Results from operations and the preferred notes issue
facilitated debt reduction and an increase in minority interests.
Hence, debt over equity ratio decreased 54 percentage points,
from 203% at year-end 2002 to 149% on March 31st 2003.

On the other hand, average cost of debt for the quarter was 5.2%,
approximately the same as in the same period of 2002, while
average cost of debt for ENDESA, excluding ENERSIS, was 4.3%.

Lower debt and same average cost enabled net financial expenses
reduction of Euro 16 million, a 5.1% decrease against the first
quarter 2002.

The following table shows a breakdown of debt and its average
cost by line of business in the first quarter of 2003:

                                                  March  Average
                                                    31st-  cost
                                                    03     1Q
                                                   Debt  2003 %
----------------------------------------------------------------
Domestic electricity business                      6,788   4.41
----------------------------------------------------------------
Latin America electricity business                 9,312   6.63
----------------------------------------------------------------
European electricity business                      1,654   3.31
----------------------------------------------------------------
Other businesses                                   2,112   4.25
----------------------------------------------------------------
TOTAL                                             19,866   5.20
----------------------------------------------------------------

3.2. Foreign Exchange Differences

Net foreign exchange differences for the first quarter 2003
resulted in Euro 64 million net gain, mainly corresponding to a
12.7% revaluation in the Argentinean Peso against US dollar in
such period.

However, ENDESA has not reflected in net income the net positive
differences generated by its subsidiaries in Argentina since,
following conservative accounting procedures, an additional
provision was allocated.

4. Equity income

On March 31st 2003, losses attributable to ENDESA under the
equity method were Euro 13 million, a Euro 36 million improvement
over the first quarter 2002.

The main component of the equity losses corresponds to the
shareholdings in telecommunications affiliates.

Telecommunications holding company AUNA represented to ENDESA a
Euro 22 million net loss in the first quarter of 2003 compared to
Euro 56 million net loss in the same period of 2002. This
positive evolution was enabled by a favorable operating
performance, delivering a positive EBITDA of Euro 180 million, a
57% increase over the first quarter 2002.

On March 31st 2003, AUNA had 6,850,000 mobile telephony customers
(390,000 more than on December 31st 2002) and more than 559,000
cable customers, almost double than one year ago.

The Chilean mobile telephone operator Smartcom, contributed with
a Euro 10 million net loss in the first quarter 2003, compared to
Euro 19 million net loss in the same period of 2002. On March
31st 2003 Smartcom had over 1 million customers, representing
more than 16% market share that enabled a Euro 4.5 million
positive EBITDA.

5. Extraordinary results

Extraordinary results for ENDESA in the first quarter 2003 were
Euro 528 million. Its main components were the following:

-- Euro 514 million capital gain from the sale of the Spanish
mainland transmission network.

-- Euro 152 million capital gain from the sale of certain real
estate assets in Spain.

-- Euro 8 million capital losses from the sale of the stake in
REPSOL.

-- Euro 43 million provisions to cover risks related to the
domestic electricity business.

-- Euro 75 million provisions to cover risks related to the Latin
American electricity business. Of this amount, Euro 51 millions
was allocated to cover the risk arising from investments in
Argentina, in addition to the Euro 145 million provisioned in
2002.

This additional provision was a consequence of the revaluation in
the Argentinean peso that enabled positive results in ENDESA's
affiliates in this country. ENDESA, following conservative
accounting criteria, has provisioned these positive results to
maintain zero book value in the Argentinean investments as well
as its share in the direct and indirect intercompany loans in
Argentina.

6. Information by Line of Business

Table below shows the main income statement and balance sheet
parameters as of March 31, 2003 by line of business:

                                          Euro Million
----------------------------------------------------------------
                                Revenues Operating  Net  Fixed
                                           income  income asset
----------------------------------------------------------------
Generation                          916      199    116 8,245
----------------------------------------------------------------
Distribution                      1,293      159    497 6,368
----------------------------------------------------------------
Supply                              356        4      1     8
----------------------------------------------------------------
Latino America                      844      291    (19)9,042
----------------------------------------------------------------
Europe                              582      107     25 2,375
----------------------------------------------------------------
Other businesses                     31        6    (46)  375
----------------------------------------------------------------
Services                             46        4      3    58
----------------------------------------------------------------
Corporate Structure                 170       94     92    17
----------------------------------------------------------------

7. Cash Flow, Investments and Financing

Cash flow from operations amounted to Euro 991 million during the
first quarter 2003, a 35.8% increase over the same period of
2002.

This cash flow more than covered capital expenditures which
amounted to Euro 477 million, payment of the interim dividend to
ENDESA's shareholder on January 2nd 2003 for an amount of Euro
280 million and to minorities in the amount of Euro 29 million as
well as payment of previously provisioned commitments, such as
early retirements, in the amount of Euro 132 million.

In the first three months of 2003 the asset sales amounted to
Euro 1,846 million, breakdown as follows:

                                                    Euro
                                                   million
-------------------------------------------------------------
Transmission network                                  957
-------------------------------------------------------------
REPSOL                                                504
-------------------------------------------------------------
Real estate                                           385
-------------------------------------------------------------
TOTAL                                               1,848
-------------------------------------------------------------

Out of this amount, Euro 535 million were cash in 2002.

Total investments in the first quarter of 2003 amounted to Euro
477 million, a 47.2% decrease over the same period of 2002
following ENDESA's 2002-2006 Strategic Plan.

                                                   Euro million
----------------------------------------------------------------
                                                  1Q- 1Q- %Chge.
                                                  03  02
----------------------------------------------------------------
Capital Expenditures                             386 389  -0.8
----------------------------------------------------------------
Intangibles                                        4   6 -33.3
----------------------------------------------------------------
Financial                                         87 381 -77.2
----------------------------------------------------------------
Acquisition of shares in consolidated companies    - 127   N/A
----------------------------------------------------------------
Total investments                                477 903 -47.2
----------------------------------------------------------------

Its important to highlight that first quarter 2003 capital
expenditure were approximately the same as depreciation and
amortization that amounted to Euro 394 million, showing the
conservative investment profile of the company.

The breakdown of capital expenditures by line of business is as
follows:

                                         Euro million
                                   Electricity
                                    business
---------------------------------------------------------------
                            Spain Latin  Europe  Other    Total
                                 America       businesses
---------------------------------------------------------------
Generation                   82     88    53       -     223
---------------------------------------------------------------
Distribution                101     35     -       -     136
---------------------------------------------------------------
Others                       16      4     -       7      27
---------------------------------------------------------------
Total                       199    127    53       7     386
---------------------------------------------------------------

Following the 2002-2006 Strategic Plan, capital expenditures in
the domestic distribution business grew by 9.8% in the first
quarter 2003 over the same period in 2002.

8. Financing activity

Financing activity wise, in the first quarter of 2003 ENDESA made
long-term financing transactions for an amount of Euro 2,250
million and an average life of 6.24 years.

Moreover, ENDESA significantly strengthened its financial
structure through the preferred notes issue of ENDESA Capital
Finance LLC for an amount of Euro 1,500 million, resulting in an
increase of the minority interests and a decrease of the net debt
for the same amount.

Liquidity of ENDESA in Spain on March 31st 2003 amounted to Euro
4,926 million, that is, more than the ENDESA debt maturing in
Spain in the following two years.

Latin America wise, ENERSIS and ENDESA Chile agreed with SCH,
BBVA Dresdner Bank and Citibank the terms of the refinancing of
their total bank debt for an amount of US dollar 2,330 million.
The new loan, with an average life of 3.75 years, is currently
under syndication process.

Moreover, in the second quarter 2003, ENERSIS and ENDESA Chile
will receive the proceeds of the previously agreed sales of Rio
Maipo, Canutillar hydro power plant and the transmission assets
of the interconnected system of Rio Grande, amounting to US
dollar 454 million.

CONTACT: Jacinto Pariente
         North America Investor Relations Office
         Telephone No. 212 750 7200



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

AVIANCA: Judge Extends Authorization For Interim DIP Loan
---------------------------------------------------------
Colombian airline Aerovias Nacionales de Colombia SA (Avianca)
obtained approval from U.S. Bankruptcy Judge Allan L. Gropper to
extend interim debtor-in-possession loan authorization through
May 8, when a final hearing on the proposed $18.5 million DIP
loan will be held.

According to Dow Jones, the airline's majority shareholders -
Colombian conglomerate Valores Bavaria and the National
Federation of Coffee Growers - agreed to provide the DIP loan to
fund Avianca's working capital and other general needs.

The court initially granted Avianca interim approval of the DIP
loan on March 27 and scheduled a final hearing for April 11. At
the April 11 hearing, Gropper extended the interim approval
through last Thursday, when a final hearing was to have been
held. Interim approval was again continued at the hearing last
Thursday.

Objections to final approval of the DIP loan are now due May 5,
three days before the final hearing.

CONTACT:  AVIANCA
          P.O. Box 151310
          Av. el Dorado no. 93-30
          Bogota, Colombia
          Phone: (1) 413 9511
                 (1) 295 8977


AVIANCA: Unsecured Creditors Committee Defends Ch. 11 Filing
------------------------------------------------------------
The official committee of Avianca's unsecured creditors defended
the Company's move to file its Chapter 11 bankruptcy case in the
U.S. after two of the Colombian airline's aircraft lessors
demanded that the case be dismissed.

According to court documents obtained by Dow Jones Newswires,
aircraft lessors Pegasus Aviation Inc. and Ansett Worldwide
Aviation Ltd. charged that Avianca initiated restructuring
proceedings in the U.S. rather than in its home country in an
attempt to force U.S. creditors into a restructuring while
leaving Colombian-based creditors alone.

Avianca's principal place of business and the bulk of its assets
are in Colombia, as are nearly all of its employees and
operations, the lessors said in separate motions. The U.S.
Bankruptcy Court in Manhattan has scheduled a hearing on the
dismissal motions for May 8.

In response to the lessors' motions, the committee said that the
lessors failed to show the presence of either of the elements
necessary for a bankruptcy court to abstain from hearing a case -
best interest of the debtor and its creditors, or existence of a
foreign proceeding.

The best interests of both Avianca and its creditors clearly
require that the Manhattan court keep jurisdiction, the committee
said in the court papers. Noting the airline's worldwide
operations - half of its 28 flight destinations are outside of
Colombia - and diverse creditor body, the committee said that the
U.S. courts are the most central forum for restructuring
Avianca's debts.

Most of Avianca's major creditors are subject to the Manhattan
court's jurisdiction based on their service on the committee or
their minimum contacts in the U.S., the filing said. Colombia's
own tax collecting agency appeared at the committee's
organization meeting and sought appointment to the committee. The
committee said it's considering granting Colombian governmental
entities "ex officio," or honorary, status as committee members.

The committee dismissed the lessors' assertion that Avianca
should pursue a Colombian Law 550 insolvency proceeding. A Law
550 proceeding would be unsuitable for reorganizing the Company's
business, the committee said, because it would permit lessors
such as Pegasus Aviation and Ansett Worldwide to take back their
aircraft and sue Avianca for all future rent.

Dow Jones also reports that the committee questioned whether
Avianca's U.S. affiliate, Avianca Inc., would be able to file for
a Law 550 proceeding - to do so, a company must be permanently
doing business in Colombia.



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

CINTRA: Reports First Quarter 2003 Results
------------------------------------------
(All figures are expressed in pesos of equivalent purchasing
power as of March 31st, 2003, unless specified otherwise.
Financial Statements meet Mexican GAAP, and are not audited.)

CINTRA, S.A. DE C.V., (BMV:CINTRA) Mexico's leading air
transportation system reported its non audited results for the
first quarter 2003.

The ASK's during 1Q 2003 reported 9,834 million, 3.1% higher than
the same period 2002, this capacity growth is due to the increase
in routes, particularly in the international portion.

The demand expressed in RPK's was 5,685 million during the period
January - March 2003, similar to the same period 2002, since the
yield reached 1.039 pesos, 1.5% higher than the first quarter
2002; as a consequence of the exchange between the Mexican peso
and the U.S. dollar, the ASK/Cost increased 4.8% for the same
period in 2002.

Revenues
Total revenues were 6,797 million pesos, that represents a 1.7%
increase in real terms, compared with the period January - March
2002, such increase was generated by the 6.9% rise in the
international market, reaching 2,545 million pesos, this was
possible due to the new routes opening and the exchange between
the Mexican peso and the U.S. dollar; this softened the 2.8%
decrease in domestic routes, that represented 3,362 million
pesos; however, cargo revenues and other were increased in 4.7%
and 6.2% respectively, compared to the same period 2002.

It is important to mention that, domestic revenues were affected
by the unfair competition from domestic airlines.

In U.S. dollars terms, total revenues were 625 million for the
first quarter 2003, that shows a 9.6% decrease with respect to
the same period 2002, due to the pre-war scheme that caused a
decrease in traffic between Mexico and the United States of
America.

Operating Expenses

Operation expenses were 6,722 million pesos, higher in 9.9% than
the 1Q 2002. Personnel cost was 2,438 million pesos, higher 1.9%
than the same period 2002, this as a result of the agreed salary
increases in 2002 compensated with the personnel reduction in
Cintra's companies.

Jet fuel expenditure was 1,182 million pesos, superior in 52.9%
than the same period last year, this rise was due to the
significant increase in the jet fuel price and the devaluation of
the Mexican peso, which average exchange rate during the quarter
was $10.82 Mexican pesos per U.S. dollar than $9.11 Mexican pesos
per U.S. dollar during the same period last year, compensated
with the jet fuel coverage program that protects the 38% of our
2003 consumptions.

Aircraft and traffic servicing were 835 million pesos during the
period, 9.1% higher than those in 1Q 2002 as a consequence of the
devaluation of the Mexican peso. Maintenance was 715 million
pesos during the quarter, 10.1% higher than the same quarter 2002
also as a result of the devaluation of the Mexican peso.

Passenger service was 213 million pesos during the first quarter
2003, 5.4% higher than the same period 2002 mainly due to the
devaluation of the Mexican peso. Commissions were 497 million
pesos, which reflects a 3.7% decrease as a result of the new
Incentives Program. Promotion and sales increased 6.2% compared
to the period January - March 2002, reaching 391 million pesos,
due to the devaluation of the Mexican peso.

Insurance figures reached 167 million pesos during the first
quarter 2003, higher in 7.1% than the same period 2002, as a
consequence of the devaluation of the Mexican peso, since the
premiums should be paid in U.S. dollars.

Operation expenses during the first quarter 2003 were 619 million
dollars that compared to 633 million dollars during the same
quarter 2002 represents a 2.3% decrease instead of 9.9% increase
that shows the comparison in Mexican pesos. It is important to
mention that the exchange rate has distorted the Financial
Statements, since the results in Mexican pesos do not allow to
compare them realistically against previous periods.

Capital Expenses

Capital expenses were 1,050 million pesos during 1Q 2003, 7.2%
higher than the same period 2002 due to: The aircraft equivalent
to 797 million pesos, 14.3% higher than the same quarter last
year originated by the fleet renewal and the devaluation of the
Mexican peso.

Regarding depreciation, it reached 253 million pesos, 10.4% lower
than the same period 2002 and it is important to mention that
Mexicana's Boeing B-727 aircraft are almost depreciated.

Operating Loss

During the period January - March 2003 the operation loss was 975
million pesos, compared to 416 million pesos in the same period
2002.

As we mentioned previously, the domestic and international
markets contraction influenced the results, as well as the
devaluation of the Mexican peso.

Integral Financing Income
Integral Financing Income during the quarter was 108  million
pesos, higher than 41 million pesos income during 1Q 2002,
financial expenses increased 12.2% during the period, reaching 93
million pesos due to the devaluation of the Mexican peso. Foreign
exchange loss was 94 million pesos, compared to 43 million pesos
gain during the same quarter 2002, also as a result of the
Mexican peso parity.

Net loss

During the first quarter 2003 Cintra shows a 1,060 million pesos
net loss, higher to 431 million pesos in the same period 2002.

Relevant events
These are the most relevant events during the first quarter 2003:

Annual Shareholders' Meeting
The Annual Shareholders' Meeting was carried out and the results
for the year 2002 were approved.

Negotiation of commissions
A new commercial strategy was established to provide incentives
and economic benefits according to the increase in sales by the
travel agencies; this new scheme provoked a reduction of 3.7% in
commissions during the period January - March 2002 compared to
the same quarter 2002.

Increase in the jet fuel price
One of the most important events that affected the results of
Cintra, compensated with the jet fuel coverage program that
protects the 38% of our 2003 consumptions.

Foreign exchange
The average foreign exchange during the quarter was key in the
increase of the Integral Financing Income reaching $10.82 Mexican
pesos per U.S. dollar against $9.11 Mexican pesos per U.S. dollar
during the same quarter 2002.

Cash flow reduction
Mainly affected by the two previous points and the decrease in
revenue, Cintra's cash flow reduced in approximately 120 million
dollars during the first quarter 2003.

International routes opening
Mexicana started its regular flights to Austin, Texas and since
May 1st on will operate regular flights to Portland, Oregon.
Also, on April 1st started regular flights to Chetumal, Quintana
Roo.

Free vacations ("Vacaciones pagadas")
During the first quarter 2003 Aeromexico offered to its
passengers a drawing to win five years of free vacations with
three companions including airline tickets, hotel accomodations
and $1,000 U.S. dollars cash on each trip.

Aircraft renewal
Mexicana continued with its Fleet Renovation Program, leasing two
Airbus A-319 and grounding two Boeing B-727/200.

Current economic situation
The post-war increases the probability of higher worldwide
economic instability and consequently, the negative impact in
Cintra's companies operation, mainly in a stronger contraction of
the markets or in a slow recovery of the demand in air
transportation.

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

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


DESC: 1Q03 Results Show Improvement
-----------------------------------
Desc, S.A. de C.V. (NYSE: DES; BMV: DESC) announced today its
results for the first quarter ended March 31, 2003 (1Q03). All
figures were prepared according to generally accepted accounting
principles in Mexico.

HIGHLIGHTS

During the first quarter of 2003, the Company's EBITDA improved
significantly from US$18 million reported during the fourth
quarter of 2002, to US$51 million. This result reflects the
following:

- The initiation of the Tractor Project in the Autoparts Sector
for the production of automotive power train components,

- Higher sales volumes in the Chemical Sector, and

- Improved results from the Real Estate Sector due to higher
sales from the Punta Mita project. Year-over-year the results for
the first quarter of 2003 reflect a decline caused by:

- Lower sales in the Autoparts Sector as a result of the ongoing
temporary shutdowns in some of the assembly plants in order to
reduce inventory levels, and the closing of the Daimler Chrysler
Lago Alberto Plant in Mexico City,

- In the Chemical Sector, the pressure on sales prices due to the
worldwide oversupply, as well as the increase in main raw
material prices, and

- Increases in the cost of raw materials in the Food Branded
Products business.

SALES

During the first quarter, sales increased 9.8% when compared to
4Q02, from US$430 million to US$471 million. This result reflects
the initiation of the Tractor Project in the Autoparts Sector, as
well as price increases and higher sales volumes in the Chemical
Sector and sales related with the Punta Mita project in the Real
Estate Sector.

When compared to 1Q02, revenues declined 7.0% to US$471 million
from US$507 million.

This result was due to the 24.7% decline in revenues from the
Autoparts Sector caused by the drop in production volumes of
OEM's, the closing of the Daimler Chrysler plant in Mexico City,
and, despite the recovery Q-o-Q, the declining industry trend
mentioned during previous quarters.

Revenues from the Chemical Sector increased 21.2% when compared
to 1Q02, as a result of the repositioning of inventories by some
clients and a greater demand in the detergent market.

Sales in the Food Sector declined 8.0% when compared to 1Q02 due
to the closing of the Pork Business in the Bajio region. However,
it is important to note that the pork operation in Yucatan is
showing positive results.

Sales from the Real Estate Sector declined 9.7% when compared to
1Q02 because estimated sales in the Bosques de Santa Fe project
were not achieved.

EXPORTS

Quarter-over-quarter total exports increased 14.9% due to higher
sales from the Autoparts and Chemical Sectors. Compared to the
same quarter of 2002, exports declined 5.6% from US$228 million
in 1Q02 to US$216 million in 1Q03. This result is due to the
25.7% decline in the Autoparts Sector, which was not offset by
the 57.9% and 2.4% increases in the Chemical and Food Sectors,
respectively. During the quarter, exports represented 45.8% of
total sales.

OPERATING INCOME (LOSS), MARGIN AND EBITDA

Compared to the fourth quarter of 2002, operating income
increased more than 100% from a US$17 million loss to a US$20
million income. Compared to 1Q02 operating income declined 48.7%.
EBITDA for the first quarter was US$51 million, a 183.3% increase
when compared to the previous quarter. Compared to the same
quarter of 2002, EBITDA declined 27.1%.

TAXES

During the quarter, tax provisions were US$10 million, which
included Income and Asset Taxes and Employee Profit Sharing.
Deferred taxes had a net effect in the amount of US$2 million.

NET MAJORITY INCOME (LOSS)

Net majority loss for the first quarter of 2003 was US$30
million, as a result of exchange rate losses.

DEBT STRUCTURE

At the close of the first quarter of 2003, Desc's results posted
a significant improvement when compared to the fourth quarter of
2002. However, due primarily to the effects derived from the
depreciation of the peso/dollar exchange rate during 1Q03, Desc
did not achieve the leverage ratio target set forth in the credit
contracts signed with Citibank N.A. and a bank syndicate on June
10, 2002 and with BBVA Bancomer S.A. and a bank syndicate on May
27, 2002. All other contractual obligations have been met,
including interest and principal payments.

To date, Desc has informed these lenders that it has not met the
leverage ratio and is negotiating a corresponding waiver with the
lenders.

During 1Q03, Desc registered a net debt increase of US$33 million
when compared to 4Q02, due to the reduction in cash levels
generated mainly by higher working capital requirements and
dividend payments.

At the end of the first quarter of 2003, the debt composition was
69% dollar-denominated and 31% peso-denominated. The average cost
of debt was 4.5% in dollars and 9.7% in pesos, compared to 4.8%
and 10.4%, respectively in 1Q02.

RESULTS BY SECTOR

AUTOPARTS SECTOR

Q-o-Q sales increased 8.2% and operating income went from a US$9
million loss to an income of US$11 million. This was due to the
65.3% increase in sale volumes in propeller shafts and 23.6% in
axles, while front half-axles started being manufactured as a
result of the Tractor Project. Sales for the quarter declined
24.7% when compared to 1Q02 mainly due to the inertia in the
automotive industry at the end of 2002. As a result, sales
volumes remained low reflecting the decline in orders from OEMs
in the U.S. and Mexico, the continued temporary shutdown in some
assembly plants (GM, FORD, NISSAN, VW and DAIMLERCHRYSLER) with
the purpose of adjusting inventories and the closing of the
DaimlerChrysler Lago Alberto plant, which impacted the axle,
propeller shaft and pick-up box businesses.

As a result of the above, operating income was US$11 million
while operating margin reached 6.0%.

The variation in volumes sold in 1Q03, compared to the same
quarter of 2002, reflect the increase in aluminum wheels by
108.0%, cv joints by 16.4%, tappets by 63.3%, and output shafts -
a new export product derived from the Tractor Project - by 100%.

Compared to the first quarter of 2002, the most significant
volume declines were registered in transmissions components
19.6%, pick-up boxes 59.9%, axles 50.0%, pistons 33.3%, light
transmissions 23.9%, heavy-duty transmissions 31.0% and steel
wheels 14.7%. Exports during 1Q03 increased 14.1% compared to
4Q02 from US$102 million to US$117 million. Yo-Y exports declined
25.7%.

The average capacity utilization of the transmissions, stamping,
axles and cv joints businesses was approximately 54.0%.

Sales per employee increased to US$111.4 thousand, from US$110.4
thousand in the same period of the previous year. This
improvement reflects the layoffs that took place during 2002.

Mexico's total vehicle production, accumulated as of March 2003,
was 400,944 units, which represents a 14.0% decline when compared
to the same period of 2002.

CHEMICAL SECTOR

During the quarter sales increased 21.2% compared to 1Q02, as a
result of the repositioning of inventories by some clients mainly
in Europe and the U.S. in the rubber solution and polystyrene
businesses. On one hand, the phosphates business benefited from
the demand derived from detergent production, which was higher
than expected. On the other hand, sales from the adhesive and
waterproofing businesses declined due to the lower activity in
government construction projects.

The combination of the pressure on sales prices as a result of
the global oversupply of petrochemicals and the increase in the
prices of main raw materials and energy products, which were not
able to be passed on completely to sales prices, affected the
operating income and EBITDA which reached US$4 million and US$12
million, representing a decline of 57.4% and 24.8%, respectiv
ely. Q-o-Q sales increased 8.5% and operating margin went from
0.2% to 2.0% in 1Q03.

Capacity utilization in the Chemical Sector surpassed 90%,
despite the tight margins. Operating margins are expected to
recover when pressures on raw material prices decline.

Exports for the quarter increased 57.9% from US$46 million in
1Q02 to US$73 million in 1Q03.

This increase partially offset the decline in demand from the
Mexican market.

FOOD SECTOR

Branded Products

The 12.0% increase in sales of branded products Y-o-Y reflects
the solid performance of the "Del Fuerte" tomato puree brand, the
"Embasa" ketchup style salsa brand and the increase in coffee
exports to the U.S., coupled with the 9% average increase in all
product categories and a 21.0% increase in the "La Gloria" corn
oil brand. In addition, it reflects a market share increase in
all the products in the local and U.S. markets.

In addition, revenues were benefited by the new line of "Del
Fuerte" chile and salsa as well as the distribution of "Ybarra"
canned tuna. These factors have helped to compensated the drop in
economic activity in Mexico and the U.S.

The operating margin declined from 4.7% during 1Q02 to 1.0% in
1Q03 due to the significant increase in the cost of the main raw
materials, which was not offset by the previously mentioned price
increases.

Pork Business

During the quarter, sales in the Pork Business declined 32.5%
compared to the same period of 2002 due to the closing of the
Bajio region operations. The operating margin was 1.2% which was
above the -4.4% reported in 1Q02, as a result of the closing of
the Bajio region operations.

The depreciation of the peso versus the dollar negatively
impacted the results since some of the raw materials used for the
production of feed maintained its price related to the dollar.

Sales volumes from the Southeast operations increased 2.7%
compared to 1Q02 and capacity utilization was 100%.

REAL ESTATE SECTOR

Sales in 1Q03 reached US$21 million, a decline of 9.7% when
compared to 1Q02, reflecting sales from the Punta Mita and
Bosques de Santa Fe projects, which contributed approximately
71.0% and 25.0% of the revenue for the quarter, respectively.

Compared to the previous quarter, the results from the real
estate sector significantly recovered due to the sale of lots in
the projects mentioned above.

Operating income reached US$5 million while the operating margin
increased to 24.7% from 14.1% during 1Q02. This result was mainly
due to the sales mix, since the lots from Punta Mita represent
one of the products with the highest profit ability for the
Sector. For this reason an intense effort has been made regarding
the sale and promotion of the large lots denominated "Ranchos"
and the residential lost with ocean and golf course views.

CONTACTS: Marisol V zquez-Mellado
          Alejandro de la Barreda / Carolina Rend˘n
          Tel.: (5255) 5261 8037
          abarredag@mail.desc.com.mx


GRUPO MEXICO: First Quarter 2003 CEO Report
-------------------------------------------
Financial Highlights

Grupo Mexico (G.Mexico) consolidated financial results for the
first quarter ended on March 31, 2003, included the operations of
Americas Mining Corporation (AMC) and Grupo Ferroviario Mexicano
(GFM) which consolidate the results of the operating companies:
Minera Mexico (MM), ASARCO, Southern Peru Copper Corporation
(SPCC), Grupo Ferroviario Mexicano (GFM) and Ferromex.

Applies to US GAAP:

G.Mexico consolidated results for the first quarter ending March
31, 2003 are highlighted by improved efficiencies that allowed us
to obtain significant operating and administrative cost savings
at all of our subsidiaries, despite an increase on power and
energy.  These savings were the result of various measures,
including incremental productivity in the operating companies of
the Group and to a significant contribution from the railroad
division.

At March 31, 2003 reductions in costs and expenses added $58.7
million representing a 12.2% improvement compared to the same
period of the previous year. This decrease in costs and expenses
also allowed us to mitigate the effect of the reduction of copper
sales (20.8%) and zinc (29.6%).

G Mexico.s consolidated sales as of March 31, 2003 were $539.2
million, compared to $630.8 million during the same period of the
previous year. This decrease can be attributed primarily to the
following reasons:

In the case of Ferromex we had the same volume of transportation,
however, the negative effects of the imports and exports
originated by the global circumstances, also the effect of the
foreign exchange rate, that registered in average of 18.5%
devaluation in the first quarter of 2003 compared to the same
period a year ago, which affected income from the railroad
transport services. Regarding the mining division, the sales
reduction was due basically to our strategy of favoring margin
over volume, as well to the negative impact due to the
operational cutback in the Mission, USA mine and the labor strike
in Mexicana de Cananea, in addition to the liquidity problems
manifest during the period of the financial restructuring, which
caused negative impact in the operation of the mines and plants
of the mining sector in Mexico and the United States.

At March 31, 2003 the operating cash flow (EBITDA) was $116.6
million, representing 21.6% of sales compared to 23.7% during the
same period of the previous year.

The operating earnings as of March 31, 2003, were $44.7 million
dollars representing 8.3% of sales compared to 12.7% during the
same period of the previous year.

Investments

The investment program carried out during the year has reached
$43.9million, of which $30.4 million corresponds to the mining
division, that is mostly related to cost in stripping ore of
$17.8 million that will allow to access higher-grade mineral
zones. The railroad division invested $13.5 million on the
construction, rehabilitation of tracks, terminals and a new
vehicle terminal in Guadalajara.

Financing

Grupo Mexico announced on March 30, 2003 that it has signed and
received funding of a loan for $200 million with a syndicate of
banks led by J.P. Morgan-Chase and Bank of America. This credit
replaces an agreement originally reached with Barclay's, which
decided to back away from its commitment in the restructuring
that currently is taken by eleven banks. Upon consummating this
negotiation, the $310 million loan signed February 28 with Banco
Inbursa has also been funded. As a result, the Americas Mining
Corporation (AMC) subsidiary receives new resources and today
acquires 54.4 percent of the shares of Southern Peru Copper
Corporation. AMC assumes control of these shares, which are now
collateral for the Inbursa loan. With the completion of these
joint operations, Asarco reduces its net debt to 226 million
dollars that represents a reduction of 77 percent of its overall
debt, canceling 100 percent of short-term debt in the amount of
$550 million and assures its viability under current market
conditions, and Grupo Mexico improves its general debt profile.
The participating banks in the aforementioned credit are J. P.
Morgan-Chase Bank, Bank of America, The Bank of Nova Scotia, BNP
Paribas, Banamex-City Group, Dresdner Bank, Westdeutsche
Landesbank, The Royal Bank of Canada, Deutsche Bank, Credite
Agricole Indosuez y BBVA-Bancomer. With this transaction, Grupo
Mexico completed the financial restructure of Asarco, Inc.

The total debt outstanding at March 31, 2002, was $2,906.1
million, with available cash of $351.5 million and that is
equivalent to a net debt of $2,554.6 million dollars.

On April 29, 2003, Grupo M‚xico, S.A. de C.V. (GM) reported that
its subsidiary Grupo Minero M‚xico, S.A. de C.V., GMM, which
concentrates its whole mining operations in Mexico, has concluded
and signed its financial restructuring with both, the
institutional investors that are holders of its issued Secured
Export Notes and with the banks lead by Bank of America, N.A. The
Agreements restructure credits for $608.9 Million Dollars, now
payable in March 2007, and credits for $270.3 Million Dollars
that will be payable in quarterly installments starting in March
2004. In sum, credits for a total of $879.2 Million Dollars were
restructured. As part of the agreements executed today the
holding company of G.Mexico's mining assets, Americas Mining
Corporation (AMC), will capitalize GMM with $110 Million Dollars
to support its financial structure and ensure the development of
operations of the latter and its subsidiaries.

With the foregoing, together with the recent payment of $550
Million Dollar credits owed by its subsidiary Asarco Incorporated
(ASARCO), which was made last March 31, G.Mexico concludes its
financial restructuration. Mr. Germ n Larrea M.V., Chairman of
the Board and CEO of G.Mexico stated: Having successfully
concluded this financial restructure, that implied a remarkable
complexity given the number of institutional investors, banking
institutions and agencies of the U.S. Government involved, Grupo
M‚xico and its subsidiaries will have now more financial and
operational flexibility to fully focus on increasing the
productivity and profitability of its various mining and
metallurgical units even in the period of depressed prices that
the industry is facing. It is to highlight that both Asarco and
GMM have a solid financial structure that will enable them to
enhance its daily operations and better confront the current low
metal price cycle. In fact the next maturity for Asarco is in
April 2013. For its part, GMM, thanks the referred restructuring,
has a better debt profile in accordance with its financial
capabilities at the current metal prices.

With regard to G.M‚xico's subsidiary Southern Peru Copper
Corporation (SPCC) that consolidates the Peruvian mining
operations, its financial structure is very solid and has an
approved bond issue program of up to $750 Million Dollars and a
cash of around $200
Million Dollars. Part of these resources will be devoted for the
Ilo smelter modernization. Finally, G.Mexico stressed that its
transport subsidiaries have a very efficient financial
and operational structure.

MINING DIVISION

Americas Mining Corporation (AMC)

At March 31, 2003, sales were $413.5 million compared to $488.6
million in 2002. This decrease can be attributed primarily to
lower volumes sold.

During year 2003, sales volumes for copper registered a total
reduction of 50,148 metric tons, 20.8% lower than the same period
in 2002. Zinc and silver have also shown the same trend with a
decrease of 29.6% and 8.4% respectively during the same period.
The sales reduction was due basically to our strategy of favoring
margin over volume, as well to the negative impact due to the
operational cutback in the Mission, USA mine and the labor strike
in Mexicana de Cananea, in addition to the liquidity problems
manifest during the period of the financial restructuring, which
caused negative impact in the operation of the mines and plants
of the mining sector in Mexico and the United States.

EBITDA for the first quarter of 2003 was $73.1 million dollars,
27.8% lower than the same period of the previous year.

The operating earnings at March 31, 2003 was $20.4 million, which
represented a reduction of 63.1% compared with the same period of
the previous year, due to a significant reduction in sales.

Net financing costs for the first quarter of 2003 was $46.4
million dollars, 4.6% lower than to the same period of the
previous year of $48.6 million, due basically to the reduction of
a bank loan with SPCC.

The net loss after taxes at March 31, 2003 was $38.5 million
dollars, 5.5% higher than the same period of 2002 by amount $36.5
million dollars.

RAILROAD DIVISION

Grupo Ferroviario Mexicano (GFM)

During the first quarter of 2003, revenues from railroad
transport services decrease 13.2% against the same period of
2002. Despite the same level of transport volumes, the negative
effects of the imports and exports originated by the global
circumstances, also
the effect of the foreign exchange rate, that registered in
average of 18.5% devaluation in the first quarter of 2003
compared to the same period a year ago, which affected the income
reduction by 13.2% compared to the same period last year.

With respect to investment projects and acquisition of other
assets, Grupo Ferroviario invested $13.5 million during the first
quarter of 2003, for the construction, expansion and
rehabilitation of tracks, terminals, rail yards, rehabilitation
of tracks, terminals and a new vehicle terminal in Guadalajara.

On March 31, 2003, GFM closed a $200 million loan agreement
leaded by JP Morgan Chase, Bank of America and other banks.

First quarter 2003 EBITDA for GFM was $42.4 million, which
represented 33% of sales and compares with a 20.6% reduction in
EBITDA over the same period last year, due primarily to higher
cost for diesel which represented approximately $5.0 million
during the first quarter.

Applies to Mexican GAAP:

Grupo M‚xico - Financial Highlights

G.Mexico consolidated results for the first quarter ended March
31, 2003 are highlighted by improved efficiencies that allowed us
to obtain significant operating and administrative cost savings
at all of our subsidiaries, and to a significant contribution to
the Group by the railroad division.

At March 31, 2003 the reduction in cost reached $61.6 million
pesos, which represented 1.3% compared to the same period of the
previous year. This decrease allowed us to mitigate the effect in
the results of the reduction of copper sales (20.8%) and zinc
sales (29.6%).

G.Mexico consolidated and accumulated sales at March 31, 2003 was
$5,909.0 million pesos, compared to $6,082.3 million pesos for
the same period of 2002. This decrease can be attributed
primarily to lower volumes sold, and to the policy to privilege
margins over volumes.

The operating cash flow (EBITDA) for the first quarter ended
March 31, 2003 was $1,396.4 million pesos representing 23.6% of
sales compared to 24.8% during the same period of the previous
year.

G.Mexico.s as of March 31, 2003 operating earnings was $355.4
million pesos represented 6.0% of sales.

With respect to the consolidated financial cost, based in Mexican
GAAP, this represents a net cost of $518.2 million pesos at March
31, 2003, due basically to a the financial debt cost of $548.9
million pesos, for the monetary position profit of $604.7 million
pesos, a profit in derivatives for $0.1million pesos, and a loss
in foreign exchange due basically to the devaluation of the
Mexican peso against the dollar for $574.0 million pesos.

Other Events:

Grupo Mexico announced on March 30, 2003 that it has signed and
received funding of a loan for $200 million with a syndicate of
banks led by J.P. Morgan-Chase and Bank of America. This credit
replaces an agreement originally reached with Barclay's, which
decided to back away from its commitment in the restructuring
that currently is taken by eleven banks. Upon consummating this
negotiation, the $310 million loan signed February 28 with Banco
Inbursa has also been funded. As a result, the Americas Mining
Corporation (AMC) subsidiary receives new resources and today
acquires 54.4 percent of the shares of Southern Peru Copper
Corporation. AMC assumes control of these shares, which are now
collateral for the Inbursa loan. With the completion of these
joint operations, Asarco reduces its net debt to 226 million
dollars that represents a reduction of 77 percent of its overall
debt, canceling 100 percent of short-term debt in the amount of
$550 million and assures its viability under current market
conditions, and Grupo Mexico improves its general debt profile.
The participating banks in the aforementioned credit are J. P.
Morgan-Chase Bank, Bank of America, The Bank of Nova Scotia, BNP
Paribas, Banamex-City Group, Dresdner Bank, Westdeutsche
Landesbank, The Royal Bank of Canada, Deutsche Bank, Credite
Agricole Indosuez y BBVA-Bancomer. With this transaction, Grupo
Mexico completed the financial restructure of Asarco, Inc.

The total debt outstanding at March 31, 2002, was $2,906.1
million, with available cash of $351.5 million and that is
equivalent to a net debt of $2,554.6 million dollars.

On April 29, 2003, Grupo M‚xico, S.A. de C.V. (GM) reported that
its subsidiary Grupo Minero M‚xico, S.A. de C.V., GMM, which
concentrates its whole mining operations in Mexico, has concluded
and signed its financial restructuring with both, the
institutional investors that are holders of its issued Secured
Export Notes and with the banks lead by Bank of America, N.A. The
Agreements restructure credits for $608.9 Million Dollars, now
payable in March 2007, and credits for $270.3 Million Dollars
that will be payable in quarterly installments starting in March
2004. In sum, credits for a total of $879.2 Million Dollars were
restructured. As part of the agreements executed today the
holding company of G.Mexico.s mining assets, Americas Mining
Corporation (AMC), will capitalize GMM with $110 Million Dollars
to support its financial structure and ensure the development of
operations of the latter and its subsidiaries.

With the foregoing, together with the recent payment of $550
Million Dollar credits owed by its subsidiary Asarco Incorporated
(ASARCO), which was made last March 31, G-MEXICO concludes its
financial restructuration. Mr. Germ n Larrea M.V., Chairman of
the Board and CEO of G.Mexico stated: Having successfully
concluded this financial restructure, that implied a remarkable
complexity given the number of institutional investors, banking
institutions and agencies of the U.S. Government involved, Grupo
M‚xico and its subsidiaries will have now more financial and
operational flexibility to fully focus on increasing the
productivity and profitability of its various mining and
metallurgical units even in the period of depressed prices that
the industry is facing. It is to highlight that both Asarco and
GMM have a solid financial structure that will enable them to
enhance its daily operations and better confront the current low
metal price cycle. In fact the next maturity for Asarco is in
April 2013. For its part, GMM, thanks the referred restructuring,
has a better debt profile in accordance with its financial
capabilities at the current metal prices.

With regard to G.M‚xico's subsidiary Southern Peru Copper
Corporation (SPCC) that consolidates the Peruvian mining
operations, its financial structure is very solid and has an
approved bond issue program of up to $750 Million Dollars and a
cash of around $200 Million Dollars. Part of these resources will
be devoted for the Ilo smelter modernization. Finally, G.Mexico
stressed that its transport subsidiaries have a very efficient
financial and operational structure.


GRUPO MINERO MEXICO: Fitch Ratings Affirms SENs Ratings
-------------------------------------------------------
Fitch Ratings has affirmed the following ratings for Grupo Minero
Mexico, S.A. de C.V. (GMM): the 'B' ratings for GMM's Grupo
Mexico Export Master Trust No. 1 (SEN) Series C and Series D
notes; and the 'AAA' rating for GMM's Series E SEN notes.

Fitch has upgraded GMM's guaranteed senior notes due in 2008 and
2028 (the Yankee bonds) to 'B' from 'B-' due to a new security
interest provided to all creditors under the recent restructuring
agreement. The bondholders were unsecured prior to the debt
restructuring; all other terms and conditions are unchanged. GMM
has continued to remain current with all payment obligations
associated with the Yankee bonds.

The Rating Outlook for all of GMM's ratings is now Stable. Series
C and Series D notes and the guaranteed senior notes due in 2008
and 2028 are no longer on Rating Watch Negative. Fitch has
withdrawn the 'B+' rating of GMM's Series B1 SEN notes as this
obligation has been paid in full.

These rating actions follow the successful closing of a
restructuring agreement between GMM and its creditors (banks and
SENs holders). The agreement includes the requirement that GMM's
indirect parent company, Grupo Mexico S.A. de C.V. (Grupo
Mexico), inject approximately US$110 million of new capital into
GMM primarily for working capital purposes. GMM's liquidity will
also be strengthened by the releasing of approximately US$50
million in exports revenues that had been trapped and under the
control of the SENs holders/trustee. GMM has faced major
liquidity problems since the downgrade of its SENs obligations on
Oct 5, 2001, which triggered an early amortization event that led
to the trapping of export cash flows by the trustee.

The restructured obligations total approximately US$879 million,
including US$473 million of secured export notes (SENs) and
US$406 million of bank debt. The restructured debt has two
tranches. Tranche A totals US$270 million and amortizes in years
2004-2007. Tranche B totals US$609 million and amortizes entirely
in March 2007.

The rating of the Series C SENs were affirmed at 'B' based on the
terms at restructuring, which in Fitch's view provide incremental
compensation for extending the maturity of the notes sufficient
to prevent a loss of present value to the original noteholders.
Series C Noteholders will be receiving a higher interest rate of
10.26% (vs. the original rate of 8.51% at issuance), an
additional payment-in-kind (PIK) due at maturity of 0.75% and a
0.5% restructuring fee. The current spread to comparable treasury
bonds represents an increased risk premium when compared to the
spread at issuance. Although the final maturity of this series is
still in 2007 as under the original terms, more principal (US$145
million) is scheduled to amortize in 2007 than was originally
scheduled (US$11 million). Noteholders also benefit from a new
security package given to all creditors shared on a pari-passu
basis. The new security package includes a security interest in
substantially all the assets of GMM except domestic receivables.
SENs holders will continue to maintain an exclusive security
interest in existing and future export receivables as well as
control of the cash from export sales.

The ratings of the Series D SENs were affirmed at 'B' since
holders will be receiving a higher interest rate of 11.18% vs.
the original rate of 9.43% at issuance and a final amortization
payment in 2007 (vs. 2010 under the original terms). Such terms,
in Fitch's judgement, provide incremental compensation sufficient
to prevent a loss of present value to the original noteholders.
In addition, holders of Series D SENs are entitled to a make-
whole payment (up to a maximum of US$10 million) in the event of
early amortization.

The rating of the Series E Export Master Trust No. 1 notes were
affirmed at 'AAA' due to a surety bond provided by MBIA that
guarantees the timely payment of interest and the ultimate
payment of principal. The claims paying ability of MBIA Insurance
is rated 'AAA' by Fitch.

The rating of the guaranteed senior notes due in 2008 and 2028
(Yankee bonds) were upgraded to 'B' from 'B-'. These bonds were
not involved in this restructuring. However, as a result of the
restructuring, holders of these originally unsecured bonds will
have a security interest, together with essentially all
creditors, in the assets of the entire company, except for
domestic and export receivables. As prior to the restructuring,
only the SENs holders will continue to benefit from the existing
and future export receivables and from the right to control of
such cash flows should certain cash trapping events occur.

The 'B' rating continues to reflect GMM's high leverage post
restructuring. GMM should generate about US$130 million in EBITDA
in 2003. Should copper prices continue to remain depressed in the
$0.70 to $0.80 per pound range, the company's leverage, as
measured by total debt-to-EBITDA, could range from approximately
10.0 times (x) to 7.0x and interest coverage could range from
approximately 1.0x to 1.5x.

Following this restructuring, GMM's copper mining assets,
competitive cost structure and long-term business fundamentals
should allow the company to produce reasonably healthy cash flows
at more normal copper prices versus today's depressed prices.

GMM is a wholly owned subsidiary of Grupo Mexico, Mexico's
largest mining company, with assets in the United States (Asarco)
and Peru (Southern Peru Copper Company). GMM's principal copper
mining facilities, Mexicana de Cobre and Mexicana de Cananea, are
located in northern Mexico and include two open-pit copper mines
with a cash cost of production of about $0.54 per pound in 2002.
Copper sales of about 279,673 tonnes in 2002 accounted for
approximately two-thirds of GMM's revenues. Through Industrial
Minera Mexico (IMMSA), which operates several underground
polymetallic mines, GMM also produces zinc, gold, silver,
molybdenum, lead, and sulfuric acid.

CONTACTS:  Anita Saha CFA, +1-312-368-3179, Chicago
           Joe Bormann CFA, +1-312-368-3349, Chicago
           Daniel Kastholm, CFA, +1-312-368-2070, Chicago
           Greg Kabance, +1-312-368-2052, Chicago

MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York


SAVIA: 1Q03 Numbers Show Better Revenues, Margins
-------------------------------------------------
Savia S.A. de C.V. (NYSE:VAI) (BMV:SAVIA) announced Wednesday its
results for the first quarter of 2003.

EXECUTIVE SUMMARY

-- Savia improved its operating income by $39 million, figure
1.7% higher than reported on the first quarter of 2002.

-- Savia reported consolidated net income by $23 million an 11.5%
of improvement compared to the same period last year. Its
operating cash flow was $44 million, a similar figure than
reported in the same period last year.

-- Seminis registered sales of $160 million, a similar value to
that achieved in the same period previous year, as well as the
gross margin maintained a 64% compared to the same period last
year. Its operating cash flow was $45 million.

REPORTED RESULTS

                       Main Business Indicators
                  Million of dollars as of March 2003

                     Jan-March 2003   Jan-March 2002   Variation
                    --------------------------------------------
Sales                     198             214         -7.7%
Gross Profit              108             108         -0.3%
Gross Profit               54.4%           50.4%

Operating Expenses         69              70          1.4%
Operating Income           39              38          1.7%
EBIT DA                    44              44         -0.5%
Consolidated Net Income    23              21         11.5%
Majority Net Income        13              10         21.3%

FIRST QUARTER CONSOLIDATED RESULTS 2003

Consolidated Net Sales

Consolidated net sales reached $198 million, which represents a
decrease of 7.7% compared to the same period last year. This
reduction is primarily due to a decrease in the hectares sown by
Agrobionova, a subsidiary of Bionova. Of the reported sales, 42%
were denominated in dollars, 29% in euros, 12% in Mexican pesos
and 17% in other currencies.

Consolidated Operating Income

Consolidated operating income was $39 million, an improvement of
$1 million (1.7%) compared to the same period last year. This
result was mainly due to the reduction in the Bionova's operating
expenses and the Corporate expenses also. The operating cash flow
reached $44 million, similar figure in comparison to the same
period last year.

Consolidated Income

During this period, majority net income was $13 million, an
increase of 21.3% respect to that reported in the first quarter
of 2002. Consolidated net income was $23 million, $2 million
higher than the obtained in the same period last year.

FIRST QUARTER RESULTS 2003 FOR THE MAIN SUBSIDIARIES

Seminis

Total sales for the first quarter of 2003 reached $160 million,
similar value to the reported sales in the same period last year.
The operating gross profit for this period was 64% of the
business sales. The operating income reported was $42 million, $1
million less than the first quarter of 2002. This decrease was
mainly a result of an increase in the operating expenses by $4
million in comparison to the same period last year.

The operating cash flow reached $45 million, a decrease of 4%
compared to $47 million for the first quarter of 2002.

Bionova

The sales of Bionova reported $28 million, which represents a
decrease of 42.2% compared to last year's sales for the same
period. This reduction is the result of decrease in the operation
of Agrobionova. Operating loss was $1 million, a decrease of 122%
in comparison to $3 million of operating income reported in the
same period last year.

RELEVANT EVENT

Savia and Fox Paine & Company had extended through May 15, 2003
the non-binding Letter of Intent signed on Dec. 13, 2002. Under
the terms of this letter 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.

Also, Savia continues its negotiations for the payment of its
bank debt. These negotiations are directly related to 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: http://bankrupt.com/misc/Savia.htm

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


SAVIA: Shareholders Approve Sale of Seminis
-------------------------------------------
Savia S.A. de C.V. (Savia) (BMV:SAVIA) (NYSE:VAI) announced that
in the extraordinary shareholders meeting that took place
Wednesday, they approved the sale of the shares of its subsidiary
Seminis Inc. to Fox Paine & Company L.L.C. (Fox Paine) a private
equity firm based on San Francisco, Calif.

This transaction is subject to conditions established by the
Letter of Intent signed on Dec. 13, 2002.

In addition, they approved the payment of a cash dividend of
U.S.$0.5338 dollars (zero point five three three eight dollar)
per Savia's outstanding shares. This payment is subject to the
suspensive condition for Savia to close the above-mentioned
transaction with Fox Paine.

Savia S.A. de C.V. (www.savia.com.mx) 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.

Seminis Inc. (www.seminis.com) is the world's largest developer,
producer and marketer of vegetable seeds. The company uses seeds
as the delivery vehicle for innovative agricultural technology.
Its products are designed to reduce the need for agricultural
chemicals, increase crop yield, reduce spoilage, offer longer
shelf life, create better-tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence
and global distribution network that spans 150 countries and
territories.


SIDEAPA: Moody's Assigns `Ba3.mx' National Scale Rating
-------------------------------------------------------
Durango state waterworks company Sistema Descentralizado de Agua
Potable y Alcantarillado (Sideapa) was assigned a Ba3.mx (Mexico
national scale) and a B3 (global scale, local currency) issuer
ratings by International investors services agency Moody's.

According to Moody's, the ratings reflect a mixed bag of economic
and operational indicators for the utility, including the
Company's weak financial position and fee raising constraints,
past delays in payments and sizeable capital investment needs.

However, according to Business News Americas, the Company has a
stable and growing customer base and is likely to benefit in the
medium term from an agreement with national water commission CNA.

Revenues are projected to rise by as much as 40 percent this
year, as discounts on water bills will be removed. However,
Sideapa might not directly benefit from this, as the extra income
will go to CAN for water rights.

The report adds that the annual debt service requirement is
putting a strain on the Company's weak financial profile. But the
Company's biggest problem, arguably, is its outdated
infrastructure.

Business News Americas says that efforts to upgrade its
infrastructure are hindered by the Company's reluctance to
increase water fees, resulting in low liquidity levels. Sideapa
has been seeking financial help from the municipality.

Sideapa provides drinking water and sewerage services to 130,000
clients in Durango, where the municipal area has 96 percent and
94 percent water and sewerage coverage respectively.


UNEFON: Posts Bigger Net Loss In The 1Q03
-----------------------------------------
Mexican mobile operator Unefon widened its net loss in the first
quarter of this year due to increasing financing costs that hit
the Company's revenues and EBITDA.

According to Business News Americas, the Company posted a MXN102-
million (US$9.5mn today) net loss in the first quarter of 2003 -
that's 11% higher than the MXN91.3-million net loss in the
comparable period last year.

Unefon's financing costs soared to MXN175 million in the first
quarter of 2003, from MXN3.6 million in the same quarter last
year. These costs break down into a MXN103-million foreign
exchange loss, net interest cost of MXN120 million, monetary gain
of MXN56.3 million, and other financial costs totaling MXN7.5
million.

Total revenues grew 44% year-on-year to reach MXN957 million and
EBITDA more than quadrupled at MXN283 million.

The Company ended the quarter with a long-term debt totaling
MXN4.5 billion, mostly in the form of a US$300-million vendor
financing debt with Canada's Nortel Networks.

Unefon's major shareholders are Moises Saba and TV Azteca (33%).

CONTACT:  Unefon S.A. De CV
          Head Office
          EdificioA
          Puriferico Sur 4119 Fuentes del
          Pedregal
          Mexico
          DF
          Mexico 14141
          Tel: +52 8582 50000
          Fax: +52 8582 5052
          Web site: http://www.unefon.com.mx/
          Contacts:
          Engr Moises M. Saba, Chairman
          Pedro L. Padilla, Vice Chairman



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

BWIA: SE Grants Deadline Extension on 2002 Annual Report Filing
---------------------------------------------------------------
The Trinidad and Tobago Stock Exchange Limited wishes to advise
the investing public that is has granted BWIA a month extension
to May 30, 2003, to file its annual report with the Exchange in
accordance with the provisions of Clause 6 of the Listing
requirements, the Trinidad Guardian reports, citing a statement
from the Stock Exchange.

However, BWIA assured the Exchange that its audited financial
consolidated results are "in the final stages of completion."

BWIA reportedly asked for an extension to file its 2002 annual
report, as it failed to meet the original April 30 deadline. The
report is normally due to be completed four months after the
airline's December 31, year-end.

BWIA spokesman Clint Williams explains that the airline's request
for the extension was "purely a matter of so much going on, we
needed a little extra time. Instead of being late, we asked for
the extension up front."

BWIA was reportedly the only company that asked for a deadline
extension in the country.

CONTACT:  BRITISH WEST INDIES AIRWAYS
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)



=============
U R U G U A Y
=============


BBVA URUGUAY: S&P Affirms Local, Foreign Currency Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it revised
its outlooks on its long-term local and foreign currency credit
ratings on Uruguayan banks to stable from negative. Standard &
Poor's also affirmed its 'CCC' long-term local and foreign
currency credit ratings on Banco Bilbao Vizcaya Argentaria
Uruguay S.A., Discount Bank Latin America S.A., Citibank N.A.
(Uruguay Branch), and American Express Bank (Uruguay) S.A.

The stable outlook reflects Standard & Poor's expectations that
the recently announced exchange offer to holders of Uruguayan
government bonds will not have a negative affect on the rated
financial entities. "The previously highly volatile financial
environment in Uruguay appears to have stabilized and the rated
entities are in comfortable liquidity positions," said credit
analyst Carina Lopez.

As Standard & Poor's considers the transaction proposed by the
government to be a distressed exchange, if the exchange offer is
successful, Standard & Poor's will lower the republic's sovereign
rating to selective default ('SD') and the exchanged bonds will
be rated 'D'. If the new offer closes (on or around May 21,
2003), Standard & Poor's will consider the 'SD' to be cured and
the long-term sovereign credit ratings on Uruguay could be raised
to the low 'B' category, reflecting a forward-looking assessment
of the republic's creditworthiness. In this scenario, banks'
ratings could be raised to the level of the sovereign. Should the
exchange offer not be accepted, Uruguay's long-term sovereign
credit rating would remain at 'CC' with a negative outlook. In
this scenario, if the financial system's situation retains its
current stability, banks' ratings will remain unchanged.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118


CITIBANK N.A.: S&P Revises Outlook on Currency Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it revised
its outlooks on its long-term local and foreign currency credit
ratings on Uruguayan banks to stable from negative. Standard &
Poor's also affirmed its 'CCC' long-term local and foreign
currency credit ratings on Banco Bilbao Vizcaya Argentaria
Uruguay S.A., Discount Bank Latin America S.A., Citibank N.A.
(Uruguay Branch), and American Express Bank (Uruguay) S.A.

The stable outlook reflects Standard & Poor's expectations that
the recently announced exchange offer to holders of Uruguayan
government bonds will not have a negative affect on the rated
financial entities. "The previously highly volatile financial
environment in Uruguay appears to have stabilized and the rated
entities are in comfortable liquidity positions," said credit
analyst Carina Lopez.

As Standard & Poor's considers the transaction proposed by the
government to be a distressed exchange, if the exchange offer is
successful, Standard & Poor's will lower the republic's sovereign
rating to selective default ('SD') and the exchanged bonds will
be rated 'D'. If the new offer closes (on or around May 21,
2003), Standard & Poor's will consider the 'SD' to be cured and
the long-term sovereign credit ratings on Uruguay could be raised
to the low 'B' category, reflecting a forward-looking assessment
of the republic's creditworthiness. In this scenario, banks'
ratings could be raised to the level of the sovereign. Should the
exchange offer not be accepted, Uruguay's long-term sovereign
credit rating would remain at 'CC' with a negative outlook. In
this scenario, if the financial system's situation retains its
current stability, banks' ratings will remain unchanged.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118


DISCOUNT BANK: S&P Affirms `CCC' Currency Credit Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it revised
its outlooks on its long-term local and foreign currency credit
ratings on Uruguayan banks to stable from negative. Standard &
Poor's also affirmed its 'CCC' long-term local and foreign
currency credit ratings on Banco Bilbao Vizcaya Argentaria
Uruguay S.A., Discount Bank Latin America S.A., Citibank N.A.
(Uruguay Branch), and American Express Bank (Uruguay) S.A.

The stable outlook reflects Standard & Poor's expectations that
the recently announced exchange offer to holders of Uruguayan
government bonds will not have a negative affect on the rated
financial entities. "The previously highly volatile financial
environment in Uruguay appears to have stabilized and the rated
entities are in comfortable liquidity positions," said credit
analyst Carina Lopez.

As Standard & Poor's considers the transaction proposed by the
government to be a distressed exchange, if the exchange offer is
successful, Standard & Poor's will lower the republic's sovereign
rating to selective default ('SD') and the exchanged bonds will
be rated 'D'. If the new offer closes (on or around May 21,
2003), Standard & Poor's will consider the 'SD' to be cured and
the long-term sovereign credit ratings on Uruguay could be raised
to the low 'B' category, reflecting a forward-looking assessment
of the republic's creditworthiness. In this scenario, banks'
ratings could be raised to the level of the sovereign. Should the
exchange offer not be accepted, Uruguay's long-term sovereign
credit rating would remain at 'CC' with a negative outlook. In
this scenario, if the financial system's situation retains its
current stability, banks' ratings will remain unchanged.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118



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

* Venezuela Plans Reduction of Private Debt Placement
-----------------------------------------------------
Venezuela's Finance Ministry agreed with the central bank and
commercial banks to reduce private placements of government debt.
El Universal reports that the decision is part of the financial
institutions' plan to lower interest rates.

Under an agreement, signed on Wednesday, the Finance Ministry
will divulge to banks how much debt it plans to place privately
each quarter.

Last year, the government privately placed about 60 percent of
its pubic debt, which tallied about US$3.12 billion. Earlier,
investors expressed concerns that the government may not be able
to meet its financial obligations following a strike that almost
totally disabled its main source of revenue.

However, concerns are eased as recent reports indicate that the
country will regain its income, almost half of which comes from
taxes and royalties on oil. State oil company, Petroleos de
Venezuela, S.A. (PdVSA), has almost completely regained its pre-
strike production levels.



               ***********


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
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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,
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or balance thereof are $25 each.  For subscription information,
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* * * End of Transmission * * *