/raid1/www/Hosts/bankrupt/TCRLA_Public/030730.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

          Wednesday, July 30, 2003, Vol. 4, Issue 149

                          Headlines


A R G E N T I N A

A QUINTERO: Creditor Request For Bankruptcy Granted
BANCO RIO: Fitch Assigns Default Ratings To $250M of Bonds
BANCO RIO: Local Fitch Assigns Junk Ratings To Bonds
CERRO EL POLVORIN: Enters Bankruptcy on Court Ruling
CGC: SCP Bondholders Cry Foul Over Sale To Southern Cross

CLISA: $100M of Bonds Get Default Ratings From Argentine Fitch
CLISA: Fitch Argentina Moves Bonds To Junk Territory
COMERCIAL ZOMA: Seeks Court Permission To Start Reorganization
DIRECTV LA: Seeks To Subordinate Raven Media's Claims
DISCO: Moody's Withdraws Ratings On $250M Worth of Senior Notes

DISCO: Management Accused of Violating Stock-Echange Norms
INSTITUTO DON JAIME: Bankruptcy Starts, Claims Verification Set
INTEGRAL FARM: Receiver Will File Individual Reports Soon
LAPA: Sothern Winds Candidate Likely To Take Over LAFSA
MULTICANAL: Improves Terms of Cash Tender Offer

TRANSPORTE VILLA: Court Approves Concurso Motion
*IMF Approves $1.05 Billion Disbursement


B R A Z I L

ELETROPAULO METROPOLITANA: 53% of EBITDA Allocated to Debt
INVERLINK: Bankruptcy Director Expects Sale In 2 Weeks
IPQ: Reschedules Debts With IFC, German Banks


C H I L E

COEUR D'ALENE: Announces MoU With State, Federal Agencies
ENDESA CHILE: Local Ratings Agency Cuts Bonds To BBB+
TELEFONICA CTC: Posts $12M Profit For 1H03


D O M I N I C A N   R E P U B L I C

*DR Banks On IMF Agreement To Overcome Power Crisis


J A M A I C A

JPSCO: Mgt., Workers, NWU, To Discuss Mirant's Bankruptcy
*S&P Lowers Jamaica's Long-term Currency Ratings


M E X I C O

ALFA: 2Q03 Results Better Despite Global Difficulties
BURLINGTON INDUSTRIES: WL Ross Adds $12M to Bid
EMPRESAS ICA: Reports Unaudited Second Quarter 2003 Results
GRUPO ELEKTRA: 2Q EBITDA Increases 6% to Record Ps. 805 Million
GRUPO IUSACELL: Responds To Movil Access Tender

GRUPO SIMEC: Releases Modestly Improved 1H03 Results
GRUPO TFM: Reports Flagging 2Q, 1H03 Results
GRUPO TMM: Reports Second Quarter, Six Months Results
SAVIA: 2Q03 Results Show Weaker Numbers
TV AZTECA: Announces Record 2Q03 Results; EBITDA, Net Up

VITRO: Reports Improved Second Quarter 2003 Results


P E R U

SIDERPERU: Net Loss Balloons to $1.97M in 2Q03


V E N E Z U E L A

PDVSA: Executive Says 2002 Financial Results Due Next Month
REPSOL: Venezuela Approves Plans For Barranca Gas


     - - - - - - - - - -


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

A QUINTERO: Creditor Request For Bankruptcy Granted
---------------------------------------------------
A request filed by Federacion de Obreros y Empleados de la
Industria el Papel, Carton y Quimicos resulted in an official
bankruptcy declaratino for Argentine company A Quinteros S.R.L.,
according to an announcement from Estudio Elenitza Fernandez
Lopez. The Company, which produces paper, reportedly failed to
meet its obligations on about $1192 in debt to the union.

Court No. 2 of Buenos Aires, which is under Dr. Garibotto handles
the case. Mr. Antonio Gargiulo was assigned receiver for the
process. Creditors must have their claims authenticated by the
receiver before October 2 this year.


BANCO RIO: Fitch Assigns Default Ratings To $250M of Bonds
----------------------------------------------------------
A total of US$250 million of corporate bonds issued by Banco Rio
de la Plata S.A. was rated 'D(arg)' by Fitch Argentina
Calificadora de Riesgo S.A. last Wednesday. The rating issued was
based on the company's financial situation as of the end of March
this year.

The rating applies to bonds, which the National Securities
Commission of Argentina described as "Obligaciones Negociables".
These bonds, whose maturity date was not indicated, were
classified under "Simple Issue."

The ratings agency said that the 'D(arg)' rating is assigned to
obligations that are in payment default, or if the obligor has
filed for bankruptcy.

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


BANCO RIO: Local Fitch Assigns Junk Ratings To Bonds
----------------------------------------------------
Fitch Argentine Calificadora de Riesgo S.A. rates corporate bonds
issued by Banco Rio de la Plata S.A. 'BBB(arg)-', relates that
country's National Securities Commission. Fitch said that the
rating denotes that the debt has an adequate credit risk relative
to other issues in Argentina. The negative implication denotes
that the bonds are subject to possible downgrade.

The rating applies to US$500 million of "Programa Global de
Obligaciones Negociables de Corto Plazo", and US$1 billion of
"Programa de Obligaciones Negociables tramo subordinado por US$1
000 000 000".

In the meantime, Fitch also rated US$250 million of "Obligaciones
negociables por USD250 millones" 'BBB(arg)'.

All the affected bonds were classified under "Program" and their
maturity dates were not mentioned. The rating given is based on
the company's finances as of the end of March 2003.


CERRO EL POLVORIN: Enters Bankruptcy on Court Ruling
----------------------------------------------------
Cerro El Polvorin S.R.L. is declared bankrupt by the Civil and
Commercial Tribunal of Olavarria, relates local news portal
Infobae. Court No. 2, which handles the case, assigned Mr. Ruben
Adolfo Vazquez as receiver, the report adds.

The bankruptcy process is to proceed with the authentication of
credit claims, which will end on August 25 this year. Creditors
must submit their claims to the receiver before the said date.

CONTACT:  Cerro el Polvorin S.R.L.
          A Barros 2825
          Olavarria

          Ruben Adolfo Vazquez
          Vicente Lopez 3387
          Olavarria


CGC: SCP Bondholders Cry Foul Over Sale To Southern Cross
---------------------------------------------------------
The sale of a controlling stake in Argentine oil holding Compania
General de Combustibles (CGC), a unit of Sociedad Comercial del
Plata, to Southern Cross has been strongly questioned by SCP's
bondholders and the operation may end up in court. SCP is
currently carrying out a formal restructuring proceeding.

Bondholders claim that the deal is destined to dissolve their
possessions and prevent them from collecting at least part of the
US$238-million bond debt owed by the holding. They believe the
sale of CGC's shares is not a real operation, because if it were,
the money obtained with the deal would enter SCP and be
immediately distributed among bondholders to settle part of the
debt, which will not happen.

These conclusions come from an analysis made by the firm
Cambiasso &
Morando and the economist Antonio Recabarren, representatives of
some of SCP's bondholders. We want CGC to be sold through a
transparent process, audited by an investment bank and with a
real valuation, which from our point of view, should be around
US$200 million, said Enrique Morando. Southern Cross would pay
only US$60 million for an 81% stake in CGC. Morando points SCP
has to call for an international tender offer for the sale of
CGC.


CLISA: $100M of Bonds Get Default Ratings From Argentine Fitch
--------------------------------------------------------------
Corporate bonds issued by Argentine company CLISA were assigned
default ratings by Fitch Argentina Calificadora de Riesgo S.A.
last Wednesday. The National Securities Commission described the
bonds as "Obligaciones Negociables con garantia".

According to Fitch, the rating, which is based on the Company's
finances as of March 31, 2003, is assigned to financial
commitments which are currently in default. It applies to US$100
million of the said bonds, which mature on June 1 next year.

CONTACT:  CLISA
          Adalberto Campana
          +1-54-11-4959-6857


CLISA: Fitch Argentina Moves Bonds To Junk Territory
----------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. moved US$120 million
of bonds issued by local company CLISA to junk territory with a
'CCC(arg)' rating. The rating denotes an extremely weak credit
risk relative to other issues in the country, said Fitch.

The rating applies to bonds which the National Securities
Commission describes as "Obligaciones Negociables con garantˇa
(AGO 21-01-03, AD 23-01-03)". These bonds, which are classified
as "simple issue", come due on June 1, 2012.


COMERCIAL ZOMA: Seeks Court Permission To Start Reorganization
--------------------------------------------------------------
Buenos Aires-based Comercial Zoma S.A. is asking permission to
start a debt reorganization. An announcement from Estudio
Elenitza Fernandez Lopez indicates that the Chas submitted its
motion for "Concurso Preventivo" to Court No. 22 of Buenos Aires,
which is under Dr. Braga. The Company ceased making debt payments
since October 18 last year.

CONTACT:  Comercial Zoma S.A.
          Rivadavia 1575
          Buenos Aires


DIRECTV LA: Seeks To Subordinate Raven Media's Claims
-----------------------------------------------------
By this motion, DirecTV Latin America asks the Court to
subordinate Raven Media Investments, LLC's claims, arising from
its acquisition of the Company's equity interests and its alleged
claim under a related Put Agreement.

M. Blake Cleary, Esq., at Young, Conaway, Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that the Debtor's services are
distributed in Argentina by Galaxy Entertainment Argentina S.A.
As of November 10, 2000, the Debtor owned a 49% legal interest in
Galaxy, with the remaining 51% owned by Plataforma Digital, S.A.
In July 2000, the Debtor proposed buying out Plataforma's
interest in Galaxy.  In consideration of conveying its Galaxy
interests to the Debtor, Plataforma accepted an approximately 4%
interest in the Debtor, subject to the various agreements between
the parties, including a put right exercisable in three years.

On November 10, 2000, the parties executed a Put Agreement, where
Plataforma had the right, but not an obligation, to require the
Debtor to repurchase its equity interest in the Debtor for a set
amount on November 10, 2003 or prior to that date upon the
Debtor's bankruptcy, insolvency or similar financial distress.
Subsequently, in April 2001, the Debtor delivered LLC membership
interests to Plataforma equal to a 3.97% interest in the Debtor
pursuant to a LLC Admission Agreement.  After April 30, 2001,
Plataforma merged with and into Multicanal, S.A., who assigned
its 3.97% equity interest with the Debtor and its rights and
obligations under a Stock Purchase Agreement, the Put Agreement,
and the LLC Admission Agreement to Raven.

The Debtor sought to reject the Put Agreement and to subordinate
any claims arising from the Put Agreement.  Raven objected.

Because the propriety of the subordination of Raven's claims is a
question of law based on undisputed facts, Mr. Cleary maintains
that there is no need for discovery or an evidentiary hearing;
rather, as a matter of law, the Court should grant summary
judgment subordinating Raven's claims.

The Debtor believes that Raven's claims should be subordinated
pursuant to Section 510(b) of the Bankruptcy Code because the
claims are for damages "arising from the purchase or sale of a
[security of the debtor]."

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, the
Debtor seeks a summary judgment on the subordination of Raven's
claim.  Summary judgment is appropriate where the movant shows
that there is no genuine issue as to any material fact and that
the moving party is entitled to a judgment as a matter of law.

The Debtor acknowledges that Raven's claims are predicated on the
Put Agreement, which was assigned to Raven.  However, Mr. Cleary
argues, the fact that Raven asserts a contract claim does not
take those claims outside the purview of Section 510(b) of the
Bankruptcy Code since damages arise out of contract claims as
well as out of tort claims.

The purported distinction argued by Raven between actionable
conduct by a debtor relating to the sale of its securities and an
allegedly "express and independent contractual right" is illusory
at best.  In this case, the actionable conduct consisted of a
Debtor's breach of contract entered into in connection with the
claimant's acquisition of the Debtor's securities that gave rise
to the claim being asserted.

Raven also contends that the Put Agreement is a freestanding
contractual arrangement that bears no relation to its purchase of
the Debtor's interest and therefore its claim for breach of the
Put Agreement cannot constitute a claim arising from its purchase
of the Debtor's membership interests and thus is shielded from
subordination.

Mr. Cleary argues that Raven's contention is baseless.  In fact,
the Court rejected the exact argument in In re Int'l Wireless
Communications Holdings, Inc., 257 B.R. 739 (Bankr. D. Del 2001).
In that case, the shareholder entered into a supplement to the
original purchase agreement nearly a month after the initial
stock purchase agreement.  The supplement required the debtor to
issue additional stock to protect the value of the shareholder's
investment if it did not consummate an initial public offering
within an express time period.  The Court refused to find Section
510(b) inapplicable simply because the purchase price protection
rights were set forth in a document separate from the initial
purchase agreement.

Furthermore, the undisputed facts show that the Put Agreement was
entered into on the same date as, and was a condition to closing
of, the Stock Purchase Agreement.  The Put Agreement gives Raven
rights with respect to the underlying DTVLA membership interests
acquired under the Stock Purchase Agreement.  Those rights would
be nonsensical without regard to the Stock Purchase Agreement and
the equity that Raven acquired.  The Put Agreement is a closely
interrelated agreement that serves the sole purpose of limiting
Raven's potential downside risk under the Stock Purchase
Agreement.  Accordingly, Raven's claim has a sufficient "nexus or
casual relationship" to Raven's equity purchase to come within
the scope of Section 510(b).

Mr. Cleary adds that Raven's argument that Section 510(b) does
not apply because its claims are based on a contractual right "no
different than a note or other debt instrument" is equally
unpersuasive.  Mr. Cleary continues that each of these decisions
is distinguishable on its face:

A. In In re Blondheim Real Estate Inc., 91 B.R. 639 (Bankr.
    D.N.H. 1988), the U.S. Trustee sought to subordinate the
    claims of certain bondholders to the claims of general trade
    creditors.  The bankruptcy court found this argument without
    merit, noting that the Section 510(b) legislative history
    focused entirely on claims of equity holders and did not
    address priority questions between trade creditors and
    investors who are same-level unsecured creditors.

B. The case in In re Wyeth Co., 134 B.R. 920 (Banks. W.D. Me,
    1991) involved claimants who had taken promissory notes in
    return for selling their shares to the corporation nearly
    seven years prior to the debtor's bankruptcy.  These
    promissory notes remained unpaid as of the bankruptcy filing,
    and the Chapter 7 trustee sought to subordinate the note
    claims.  The Court held that the claims arose "simply out of
a
    debt on a promissory note", and that Wyeth, unlike Raven, did
    not involve the "case of an equity holder who is trying to
    better his position."

C. The Court in In Re Montgomery Ward Holdings Corp., 272 B.R.
    836 (Bankr. D. Del, 2001) (PJW), similarly refused to
    subordinate under Section 510(b) the claim of a former
    employee on a promissory note that the debtor issued more
    than seven months prior to filing its Chapter 11 case.  In
    that case, Montgomery Ward elected to redeem 200,000 shares
    of its stock from the former employee.  At the time of
    purchase, the company paid a portion of the purchase price in
    cash and issued a promissory note for the balance.  After the
    bankruptcy filing, the employee asserted a claim for unpaid
    amounts due under the note.  When the debtor sought to
    subordinate the claim, this Court concluded that Section
    510(b) "does not apply to a claim seeking simple recovery of
    an unpaid debt due on a promissory note," regardless if the
    claimant had been a "former shareholder."

The debt holders' claims in Montgomery Ward and Wyeth stand in
stark contrast to Raven's claims against DirecTV.  In the debt
holder cases, the debtor chose to repurchase its equity at some
period in time significantly prior to the debtor's insolvency,
independent of the initial stock purchase agreement; no parties-
in-interest alleged that the debtors were insolvent as of the
redemption date; no parties alleged that the debtor received less
than fair consideration in redeeming the equity; and most
significantly, after the purchase, the former shareholders were
entitled only to receive a fixed rate of return without any
profit or upside potential.

In the present situation, Raven contends that by entering into a
Put Agreement that was specifically intended to allow Raven to
convert its equity into debt upon the Debtor's insolvency,
bankruptcy or similar financial distress, it has the right to
raise the priority of its equity interest into a debt claim with
equal priority to the claims of the Debtor's general unsecured
creditors.

Raven's position is even more untenable given the fact that,
because Raven's put rights were triggered by the Debtor's
insolvency, the Debtor's equity interests were effectively
worthless at the time they were purportedly converted to a debt
claim, and therefore any payment for the interests would have
exceeded fair consideration.  Moreover, under the express
provisions of the LLC Admission Agreement, even after a Put
Acceleration Event, Raven retained the right to share in equity
distributions to other members if the distributions would exceed
the Put Prices.  Therefore, at all times both prior to and after
the Debtor's insolvency, bankruptcy filing, and the automatic
acceleration of the Put Agreement, Raven retained the most
significant privilege of an equity holder for purposes of Section
510(b).

Thus, the Court's Montgomery Ward decision and the other cases
cited by Raven are simply inapposite.  Under controlling
precedent, Mr. Cleary asserts, Raven's claim is properly
characterized as a claim for "damages arising from the purchase
or sale" of the Debtor's membership interests and should be
subordinated as a matter of law.

In apparent recognition of its flawed statutory arguments, Raven
switches to policy assertions, claiming that the Put Agreement
allocated the risk of insolvency from Raven to the Debtor and
Raven was not a traditional equity holder.  These arguments also
fail as a matter of law:

A. Equity Holders Cannot Contract Around Section 510(b)

    Raven argues that under the Put Agreement, between Raven and
    the Debtor, the risk of business insolvency was allocated to
    the Debtor.  However, Section 510(b) is intended to address
    the risk allocation issue is between an equity holder like
    Raven, who wishes to convert its equity interest into a claim
    to avoid its equity risk, and the debtor's general unsecured
    creditors.

    Raven argues that it accepted the Debtor's equity interests
    only "with the expectation and intent that it would receive
    nothing more than the purchase price plus interest."  Raven's
    intention is of no import, because the parties executed
    various unambiguous agreements evidencing the security
    transaction, and those agreements contain no limitation on
    Raven's sharing in the increased value of its interest in the
    Debtor if the company were successful.

    In any event, the Third Circuit has clarified that Raven's
    professed belief will not prevent the application of Section
    510(b).  Because Raven accepted equity in the Debtor rather
    than debt, and with it the right to participate in the Debtor
    profits, it assumed the risk of business insolvency, whether
    or not it intended to avoid or contract around that risk.

B. Raven's Retention of the Potential Rewards of its Equity
    Holding is Outcome-Determinative

    As a last ditch effort, Raven claims that Section 510(b) does
    not apply because Raven's equity interest was not readily
    transferable, because Raven gave a limited proxy with respect
    to certain voting interests and because it was not otherwise
    consulted or invited to shareholder meetings.

    Mr. Cleary contends that nothing in the law supports Raven's
    conclusion.  Even assuming that Raven's claimed limitations
    on the exercise of its ownership rights are accurate, the
    result does not change.  Because Raven, an equity holder,
    unquestionably had the right to share in the possible
    increased value of the Debtor, it must now shoulder the
    consequences of enterprise insolvency that other equity
    holders face. (DirecTV Latin America Bankruptcy News, Issue
    No. 10; Bankruptcy Creditors' Service, Inc.,  609/392-0900)


DISCO: Moody's Withdraws Ratings On $250M Worth of Senior Notes
---------------------------------------------------------------
Moody's withdrew its rating on the US$250 million 9.875% senior
note issued by Argentine supermarket chain Disco S.A. The
Company, a subsidiary of Koninklijke Ahold N.V. (senior implied
rating of Ba3 under review for downgrade) redeemed the entire
note issue on July 22, 2003 at 104.9375% of par plus accrued
interest. Moody's does not maintain any other rating on Disco.
Headquartered in Buenos Aires, Argentina, Disco operates 236
supermarkets across the country.


DISCO: Management Accused of Violating Stock-Echange Norms
----------------------------------------------------------
The management of Disco, a subsidiary of Dutch Royal Ahold, is
now facing charges from the Argentina's Securities Exchange
Commission (CNV) for violating some stock-exchange norms. Disco
failed to present its 2002 financial statements within the
authorized term, which expired on April 25, 2003. It has also
failed to present its financial statements for the first quarter
of 2003.


INSTITUTO DON JAIME: Bankruptcy Starts, Claims Verification Set
---------------------------------------------------------------
Creditors of San Martin-based Instituto Don Jaime S.R.L. have
until August 22 to have their claims verified by the receiver,
Ms. Normal Alicia Balmes. Local news report Infobae relates that
the Company recently received permission from the Civil and
Commercial Tribunal of San Martin to start its reorganizaton.

Court No 9 of San Martin intructed the receiver to file the
individual report on Octover 7, and the general report on
November 19 this year.

CONTACT:  Norma Alicia Balmes
          Mitre 3885
          San Martin


INTEGRAL FARM: Receiver Will File Individual Reports Soon
---------------------------------------------------------
Creditors of Concordia-based Integral Farm Service S.R.L. are
informed that the receiver, Ms. Rosa Isabel Mioni, will file the
individual reports on August 22 this year. Local news portal
Infobae says that the court expects the required general report
to be submitted on October 8 this year.

The Company, whose motion for "Concurso Preventivo" was approved
by Court No. 3 of Concordia, has started its reorganization
process. In the meantime, the report did not indicate whether the
court has set a date for an informative assembly.

CONTACT:  Integral Farm Service S.R.L.
          Laprida 1777
          Concordia, Entre Rios

          Rosa Isabel Mioni
          San Luis 476
          Concordia, Entre Rios


LAPA: Sothern Winds Candidate Likely To Take Over LAFSA
-------------------------------------------------------
Argentine carrier Southern Winds (SW) is one of the candidates
interested in taking over the new and currently state-owned
airline Lineas Aereas Federales (Lafsa). Managers from both
companies have been holding meetings regarding this possibility.

SW is the only carrier 100% owned by local investors and even
though it has had to reduce its fleet and operation level
drastically, as a consequence of the crisis that has hit
Argentina, the firm is the only airline that has managed to avoid
a formal restructuring proceeding.

SW wants the state to put the ARS18 million necessary for Lafsa
to start up. If both parties reached an agreement, SW would hire
the 850 employees that worked for LAPA gradually, as long as it
acquires new aircraft.

At present, Lafsa is managed by the ministries of planning (40%)
and economy (40%), and the state-owned firm Intercargo (20%). The
government wants to sell 51% of Lafsa s shares to local investors
and the other 49% to foreign investors.


MULTICANAL: Improves Terms of Cash Tender Offer
----------------------------------------------
Argentine cable TV operator Multicanal, a unit of the local media
holding Clarin, announced Friday that it has improved the
conditions of its cash tender offer, so as to make it more
appealing for those holders of its notes and other financial
debts that take part in the proposed out-of-court agreement
(APE).

As a result, the invitation to accept the proposal was extended
until September 30, 2003.

With regards to the discount bond, Multicanal increased the
percentage of shares it is disposed to transfer to its creditors
from 30% to 35% of the Company's total capital. It also raised
the price it is willing to pay from US$315 to US$440 per US$
1,000 aggregate principal amount of debt tendered for purchase.

Multicanal also improved the price of the par bond. Now it is
paying US$ 1,050 per US$ 1,000 principal amount of debt and a
higher interest rate.


TRANSPORTE VILLA: Court Approves Concurso Motion
------------------------------------------------
The Civil and Commercial Tribunal of San Martin approved a motion
for "concurso preventivo" filed by local company Transporte Villa
Ballester S.A.C.E.I., giving the Company permission to start its
reorganization proceedings.

Infobae relates that Court No. 12 of San Martin assigned Edgardo
Brodersen y Asociados as receiver for the process. Creditors must
submit their claims for authentication before September 1 this
year.

The receiver is required to file the individual reports on
October 13, while the general report is due for submission on
November 24. Creditors are asked to attend the informative
assembly on June 8, 2004.

CONTACT:  Edgardo Brodersen y Asociados
          Ayacucho 18
          San Martin


*IMF Approves $1.05 Billion Disbursement
----------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Monday the third review of Argentina's performance
under a seven-month, SDR 2.17 billion (about US$3.04 billion)
Stand-By Arrangement, which was approved on January 24, 2003.

The completion of this review enables the release of a further
SDR 749 million (about US$1.05 billion). The Executive Board also
approved Argentina's request for a waiver of the relevant
structural performance criterion and the applicability of fiscal
quantitative performance criteria for end-June 2003.

Following the Executive Board's discussion on Argentina, Horst
K”hler, Managing Director and Chairman, said:

"Argentina's recent macroeconomic performance continued to be
favorable. Consumer confidence has risen, inflation has declined
further, financial market indicators have strengthened, and the
economic recovery has been encouraging. Under the new government,
Argentina has continued to meet the fiscal and monetary targets
of the transitional arrangement with comfortable margins.

"Fiscal policy has been overperforming and there is room to
exceed the primary surplus target for 2003. The authorities are
committed to maintain fiscal discipline, and have undertaken
important tax administration reforms that will ease the
transition to the higher fiscal savings that will be required
over the medium term to restore solvency to the public finances.

"Given the absence of inflation pressures, a continued cautious
expansion of base money appears appropriate. Nevertheless, the
authorities need to remain vigilant to keep inflation in the low
single-digit range.

"The work of the new government on the structural reform agenda
needs to be accelerated in the period ahead. Sustaining growth
over the medium term will require consistent implementation of a
comprehensive structural reform program aimed, inter alia, at
bank restructuring to restore financial intermediation, tax and
intergovernmental relations reforms to achieve sustainable public
finances, a framework for the adjustment of utility tariffs, and
addressing poverty and social issues. More effort will also have
to be directed toward entrenching legal certainty, and respect
for creditor rights.

"Medium-term prospects will hinge critically on public debt
restructuring. It is important to continue to move the
negotiating process with private creditors forward decisively.

"The IMF welcomes the authorities' desire for a strong medium-
term successor arrangement that would support higher sustainable
growth and ensure the solvency of the public finances," Mr.
K”hler stated.

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs: 202-623-7300 - Fax: 202-623-6278
          Media Relations: 202-623-7100 - Fax: 202-623-6772



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

ELETROPAULO METROPOLITANA: 53% of EBITDA Allocated to Debt
----------------------------------------------------------
Eletropaulo, a subsidiary of US company AES Corp, will set aside
53% of its estimated EBITDA of BRL1.06 billion to pay debt
interest this year, says business daily Valor Economico.

The report suggests that the Company, Brazil's largest power
distributor, with more than 14 million clients in the
metropolitan area of Sao Paulo, has been seeing its debt payment-
to-EBITDA ratio gradually increase in recent years. It was 34% in
2000 before jumping to 42% last year and breaking through 50% in
2003, as revealed by a JP Morgan report.

Currently, its US-based parent is in negotiations to restructure
its US$1.2 billion debt with the Brazilian Development Bank
(BNDES).

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


INVERLINK: Bankruptcy Director Expects Sale In 2 Weeks
------------------------------------------------------
An official handling Inverlink's bankruptcy expressed confidence
that the assets of the intervened Chilean financial services
group will be sold within the next couple of weeks, Business News
Americas relates. Inverlink's bankruptcy director Marcos Sanchez
said that an unnamed suitor is currently performing due diligence
at Inverlink's pension fund manager AFP Magister and expects the
investor to make an offer for the asset this week.

At the same time, the director expects investment group
Inversiones Isis to up its US$1.8 million offer for health care
insurer Vida Plena, which Inverlink creditors considered too low.

Vida Plena has also attracted the interest of two other potential
buyers, which are currently looking at the Company's books,
Sanchez added.

Inverlink was intervened earlier this year after it was
discovered it had spied on the central bank and stolen CLP75
billion (US$107mn) worth of financial instruments from state
development agency Corfo.


IPQ: Reschedules Debts With IFC, German Banks
---------------------------------------------
Ipiranga Petroquimica (IPQ), part of the Ipiranga group,
rescheduled US$43.6 million of loans with the International
Finance Corporation (IFC), out of total outstanding debts of
US$64.9 million, Business News Americas reports, citing an IFC
statement.

Simultaneously, the IFC revealed that the Brazilian
petrochemicals firm agreed new terms on US$33.3 million of loans
with German development bank Kreditanstalt fur Wiederaufbau (KfW)
and its affiliate, DEG, out of total outstanding loans of US$70
million.

IFC helped organize the loan.

As part of the agreement, the Ipiranga group pumped BRL350
million (US$120mn) in fresh equity, which will reduce US$550
million short-term debts by US$100 million and lower interest
expenses "significantly," the IFC said.



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

COEUR D'ALENE: Announces MoU With State, Federal Agencies
---------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE) and the State of
Alaska announced on Monday a major milestone toward the final
permitting of Coeur's Kensington Gold Project. Key state and
federal agencies have signed a Memorandum of Understanding (MOU)
to help complete the environmental approvals for the mine. The
MOU, signed by the Alaska Department of Natural Resources, U.S.
Forest Service, U.S. Environmental Protection Agency, and Army
Corps of Engineers, outlines roles and responsibilities of the
agencies with respect to the final Supplemental Environmental
Impact Statement (SEIS) for Kensington, which is located in
Southeast Alaska near Juneau.

The MOU also establishes the schedule for the project's major
federal permits. These include: approval of the Plan of
Operations by the Forest Service; issuance of an NPDES water
discharge permit by EPA; and issuance of a 404 permit by the
Corps for discharge of dredged and/or fill material into waters
of the United States, including wetlands. The Alaska Department
of Natural Resources will coordinate all state involvement to
ensure a consolidated response, and to facilitate timely agency
review.

Coeur anticipates receiving all necessary permits for Kensington
by the end of January 2004, and plans to reach a final decision
on developing the mine after completion of the permitting and a
feasibility study update.

"The Kensington Project is one that has been very important to
Southeast and all of Alaska for some time," Alaska Governor Frank
H. Murkowski said. "It is consistent with our goal of helping to
create high-paying jobs in the natural resource sector. I am
pleased with the signing of the MOU and look forward to the
permitting and construction of the project."

Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer,
said, "The signing of this MOU brings certainty regarding
completion of permitting so the final feasibility study can be
updated on this major gold project, which would significantly
increase Coeur's gold production and bring several hundred jobs
to Southeast Alaska.

"We appreciate very much Governor Murkowski's efforts to
implement the agreement, as well as the participation by the key
federal agencies. We will enthusiastically pursue this priority
objective to complete the permitting program by January of 2004,"
Mr. Wheeler added.

The Kensington Gold Project is located approximately 45 miles
north of Juneau, Alaska and contains an estimated 1.8 million
ounces of proven and probable gold reserves and 1.4 million
ounces of resources. Capital costs necessary to place Kensington
into production are currently estimated to be $150 million, while
annual gold production is projected to average 175,000 ounces
annually at estimated average cash operating costs of
approximately $200 per ounce. Coeur believes that significant
exploration potential exists at Kensington that could materially
increase the project's total resources.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.

Contact: Tony Ebersole, 208-665-0335


ENDESA CHILE: Local Ratings Agency Cuts Bonds To BBB+
-----------------------------------------------------
Chilean generator Endesa had its bonds downgraded by local credit
rating agency Humphreys to BBB+ from A+. The outlook remains
stable.  Citing a statement from the ratings agency, Business
News Americas reports that the rating reflects the relation
between Endesa Chile's ability to generate cash flow in the long
term and its US$4.4 billion debt, whose servicing depends on the
performance of the economies where Endesa has investments abroad,
all of which are below investment grade.

The rating acknowledges the positive effects of the Company's
debt restructuring efforts, its important position in the
national grid, its high generation capacity in rainy years and
the dynamics of power demand in growth periods, the statement
added.


TELEFONICA CTC: Posts $12M Profit For 1H03
------------------------------------------
Telefonica CTC Chile reports profits of CLP8.22 billion (US$11.7
million) for the first half of this year. The result is mostly
buoyed up by its first quarter profit of BCLP7.3 billion.

Business News Americas relates that this result is a large
improvement from last year's first half profit of CLP1.4 billion.
Although operating revenues for 1H03 is down by 8 percent to
CLP400 billion, non-operating loss declined by 33 percent to
CLP35.4 billion, pushing results toward the positive side. Lower
monetary correction loss, lower debt level and the associated
drop in financial costs, among other factors added to the
improved results.

Santander Investment telecoms analyst Cristian Moreno commented,
""CTC's bottom line can be fairly volatile, showing [apparently]
important differences, but I prefer to focus much more on EBITDA,
which in this case did not vary so much. I had estimated second
quarter EBITDA of US$138 million, and the published result was
US$136 million."

EBITDA for 1H03 was down by 1 percent, which is influenced by the
4.9 percent Ebitda decline in 1Q03, says the report.

CONTACT:  TELEFONICA CTC CHILE
          Gisela Esobar, gescoba@ctc.cl
          Veronica Gaete, vgaete@ctc.cl
          M.Jos, Rodriguez, mjrodri@ctc.cl
          Florencia Acosta, macosta@ctc.cl
          Tel: 562-691-3867
          Fax: 562-6912392



===================================
D O M I N I C A N   R E P U B L I C
===================================

*DR Banks On IMF Agreement To Overcome Power Crisis
---------------------------------------------------
The government of the Dominican Republic is awaiting an agreement
with the International Monetary Fund (IMF) to pay US$200 million
to cover the public sector's debt to power distribution
companies, reports DR1 Daily News.

Currently, the country is experiencing fuel shortage because of
the cash-flow crisis. But Finance Minister Rafael Calderon is
confident that the government will overcome this crisis with the
help of the IMF injection.

Meanwhile, a report by El Caribe revealed that the government has
approved a payment of RD$700 million to one of the companies, AES
Edeeste, and has also committed to making payments to Union
Fenosa's Edesur and Edenorte.



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

JPSCO: Mgt., Workers, NWU, To Discuss Mirant's Bankruptcy
---------------------------------------------------------
The management of the Jamaica Public Service Company (JPSCo),
workers, and the National Workers Union were due to meet Tuesday
to discuss the implications of the recent bankruptcy filing by
US-based Mirant Corporation, which owns 80% of the JPSCo.

According to a report released by RadioJamaica.Com, last week,
the NWU urged JPSCO workers not to participate in a two-day
meeting organized by the Company's management to discuss Mirant's
financial problems.

The union said it was upset that the JPSCo management arranged
meetings with the workers without consulting it.

Earlier this month, RJR News reported that the JPSCo workers were
restive, as they were not told if they would eventually be
affected by Mirant's bankruptcy proceedings.

Mirant acquired its stake in JPSCo in March 2001. A fully
integrated utility, JPSCo is the sole provider of electricity on
the island of Jamaica.

JPSCo serves approximately 517,000 residential, commercial, and
industrial customers. The utility's four generating plants
produce 543 megawatts (MW), about 77% of the island's power
requirements. Mirant anticipates adding 115 megawatts of
generating capacity to the current system by 2003.

In addition to its generating plants, JPSCo owns and operates 53
substations, and approximately 14,000 miles of transmission and
distribution lines.


*S&P Lowers Jamaica's Long-term Currency Ratings
------------------------------------------------
Standard & Poor's Ratings Services said Monday that it lowered
its long-term ratings and outlook on Jamaica. Standard & Poor's
lowered its long-term local currency sovereign credit rating on
Jamaica to 'B+' from 'BB-'; its long-term foreign currency rating
to 'B' from 'B+'; and revised its outlook on the ratings to
stable from negative. The short-term issuer credit ratings on
Jamaica were affirmed at 'B'.

According to sovereign analyst Richard Francis, the downgrade is
based upon Jamaica's increased debt burden and heightened fiscal
pressures, despite the tax measures implemented at the beginning
of FY2003. "Due, in part, to the sizeable fiscal deficit of 11%
in FY2002, the gross general government debt reached 155% of
GDP," Mr. Francis said. "Interest payments now exceed 55% of
general government revenue due to the increased debt burden and
to high interest rates, despite the fact that revenue represents
more than 30% of GDP," he continued.

Mr. Francis explained that tight fiscal management is necessary
to reduce Jamaica's stock of debt, as economic prospects are
insufficient to provide much-needed fiscal flexibility. "Annual
GDP growth is likely to remain below 3% in the coming years due,
in large part, to a weak outlook for merchandise exports, an
inflexible and relatively costly labor market, significant
security costs, and high real interest rates," said Mr. Francis.
"Jamaica's GDP grew at a modest average rate of 1.0% per annum
from 1997-2002," he added.

Standard & Poor's said its ratings on Jamaica are supported at
the 'B' level by the country's stable political environment and
by the broad agreement across parties on the need for fiscal
stringency. "The stable outlook rests on the sizeable adjustment
made in the FY2003 budget, which, if maintained, will begin to
reverse the debt trajectory," Mr. Francis concluded.

ANALYSTS:  Richard Francis, New York (1)-212-438-7348
           Jane Eddy, New York (1) 212-438-7996



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

ALFA: 2Q03 Results Better Despite Global Difficulties
-----------------------------------------------------
Highlights

- The contribution of core businesses like food and autoparts
allowed ALFA to maintain solid EBITDA generation of US$ 200
million during 2Q03, despite a difficult global business
environment.

- Reduced export sales of PTA offset good performance of the
nylon and polypropylene businesses, resulting in a slight
decrease in Alpek's EBITDA compared to the previous quarter.

- Export markets for steel products softened during 2Q03. As a
result, Hylsamex's cash flow was affected. Domestic sales
remained healthy. . Sigma reported another excellent quarter on
the back of solid sales volume. EBITDA grew 16% sequentially.

- Aluminum penetration and the ramp up of production for new
programs allowed Nemak to maintain sales volume levels and cash
flow generation during 2Q03, despite a lower performance of the
US auto industry.

- The restructuring of Sidor was accomplished, reducing its net
debt by 58%, approximately. ALFA contributed US$15 million to the
capitalization. All contingent liabilities were cancelled.

SUMMARY

During 2Q03, ALFA reported EBITDA of US$ 200 million, similar to
last quarter. ALFA's industrial activities reflected the low
industrial production levels of the past months in both Mexico
and the US. However, some of the core businesses, mainly food and
autoparts, showed considerable strength and helped the company to
maintain EBITDA generation at a high level.

Maintaining trends of recent quarters, the business environment
for industrial companies remained very difficult during 2Q03,
which negatively affected the operations, especially regarding
exports. To complicate things even more, China, which had been a
large buyer of various products in the global markets, reduced
purchases to deplete inventories that had been built-up in
anticipation of a prolonged war between the US and Iraq. This put
pressure on products manufactured by ALFA, like steel and
petrochemicals.

The domestic markets for ALFA's products demonstrated good levels
of activity given the overriding global circumstances. Sales of
food, long steel products and some petrochemicals remained solid
but were not enough to offset the reduction in exported flat
steel and petrochemicals. Overall, ALFA's 2Q03 sales volumes were
approximately 8% lower than the corresponding figure in both 1Q03
and 2Q02.

ALFA increased prices for some of its products during 2Q03,
mainly long and coated steel. Through this and changes in product
mix, ALFA's average prices were approximately 8% higher than the
previous quarter and 12% higher than 2Q02. However, in some
cases, the price increase corresponded only to higher raw
material costs and did not represent real margin gains.

Despite the drop in sales volume, partially compensated through
higher average prices, ALFA maintained an EBITDA level of US$ 200
million. Although this figures is 10% lower than the US$ 222
million obtained during 2Q02, it is consistent with levels
achieved in the last two quarters under similar economic
circumstances.

ALFA used funds generated by its operations to pay for capital
expenditures amounting to US$ 74 million, including acquisitions
by Sigma in El Salvador and Mexico City. Also, funds were used
for net working capital investments and for an equity infusion in
Sidor, which served to complete the restructuring of the debt of
said non-consolidated associated company.

As a result of said disbursements, plus interest expenses and
taxes, ALFA's net debt remained almost flat during 2Q03. At the
end of the quarter, the balance of net debt was US$ 2,357
million, almost identical to the US$ 2,353 million of 1Q03.

Insofar as majority net income, ALFA reported Ps. 887 million, or
1.52 pesos per share, during 2Q03, which compares to a loss of
Ps. 37 million during 1Q03 and a loss of Ps. 500 million during
2Q02. The 2Q03 majority net income was positively influenced by:
1) exchange gains obtained during the quarter, as the Mexican
peso appreciated vis-…-vis the dollar, and 2) earnings in non-
conolidated associated company SIDOR, due mainly to the
restructuring of its debt, which occurred during 2Q03.

CONSOLIDATED RESULTS

A) Revenues

The 2Q03 revenue figure in dollars is similar to the previous
quarter, as ALFA was able to offset lower sales volumes with
higher average pricing. As to the year-ago quarter, revenues are
higher due to better pricing conditions in some of the
businesses, like in petrochemicals. Cumulatively, ALFA's revenues
in 1H03 were 13% higher than during 1H02, in dollars.

ALFA reported 8% lower sales volumes during 2Q03 than in the
previous quarter.

However, despite the difficult business environment globally,
domestic operations remained very strong, with more sales of long
steel products, nylon fibers and food. Therefore, domestic sales
volume increased by 2% during 2Q03 as compared to 1Q03. As a
matter of fact, domestic sales could have been higher were it not
for problems faced by two of the PTA customers, one of which
suffered a strike while the other underwent maintenance works.
These situations were rapidly corrected but affected business
during the quarter.

On the other hand, foreign sale volumes were 22% lower than
during 1Q03, particularly in flat steel and PTA. Export markets
for these products were affected by a substantial reduction of
purchases from China, which lowered inventories after the build-
up of previous quarters. Another factor impacting exports was the
appreciation of the peso vis…-vis the dollar that occurred during
2Q03.

The reduction in exports affected the overall foreign revenues
figure for 2Q03, which was 14% lower than the previous quarter
but still 6% higher than the year-ago quarter. Sales by foreign
subsidiaries DAK Americas and Nemak Canada did not suffered as
much as exports from Mexico.

Insofar as selling prices are concerned, during 2Q03 ALFA managed
to increase prices for some of its steel products in the domestic
markets, especially long and coated. Therefore, on average,
ALFA's prices in dollars were 8% higher during 2Q03 than in the
previous quarter.

This percentage also reflects changes in the sale mix of the
periods under comparison.

B) Operating income and margin; EBITDA:

2Q03 operating income and margins were slightly lower than 1Q03
and much lower than 2Q02. The main reason behind these decreases
is the lower sales volume in the quarter. As explained, higher
average prices contributed to better reported revenues but did
not fully translated into operating income because in some cases
price increases were in response to higher costs. Also, the lower
sales volume in the quarter did not allow the more efficient
allocation of fixed costs. However, on a cumulative basis, ALFA's
1H03 operating income was 9% higher than the corresponding figure
for 1H02, in dollars.

The EBITDA line showed a similar situation where the 2Q03 number
was just shy of the level attained during the previous quarter,
impacted by the lower operating income levels already explained.
This is more evident when compared to the same quarter of a year
ago, as 2Q03 EBITDA is 10% lower despite revenues being 3% higher
in dollars. On a cumulative basis, ALFA has generated 5% more
EBITDA in 1H03 than during 1H02. ALFA will continue to look for
ways to run its operations in a more efficient manner, to
counteract the difficult business environment it is currently
facing. In some cases, like food and autoparts, ALFA is already
obtaining higher returns than many of its peers. By focusing on
core businesses and through its permanent commitment to increase
productivity, ALFA has positioned itself to take full advantage
of economic recovery once it takes hold.

C) Integral cost of financing (ICF):

For 2Q03, ALFA reported a negative ICF in the amount of Ps. 30
million, positively influenced by exchange gains due to the
appreciation of the peso vs. the dollar that occurred during the
quarter, which partially reversed the losses of the previous one.
This compares to a negative ICF of Ps. 1,119 million during 1Q03
and negative ICF of Ps. 2,293 million in 2Q02.

The quarter's ICF included 2Q03 net financial expenses in the
amount of Ps. 461 million, similar to the Ps. 467 million
reported during the previous quarter but much lower than the Ps.
560 million of 2Q02. During 2Q03, ALFA paid an average rate of
5.9% on borrowed funds, which compares to 6.1% during 1Q03 and
7.5% during 2Q02.

The exchange rate of the peso went from 10.77 to 10.48 to the
dollar during 2Q03. This appreciation allowed ALFA to report an
exchange gain in the amount of Ps. 462 million, which compares to
a loss of Ps. 976 million in 1Q03 and a loss of Ps. 2,209 million
during 2Q02, when the peso depreciated substantially. As noted in
past reports, exchange and monetary gains or losses are non-cash
items in the periods they are recorded.

D) Results of associated companies:

During 2Q03, ALFA reported a gain of Ps. 362 million
corresponding to its interest in associated companies. This
amount can be broken down as follows: Amazonia (Sidor):
Ps. 372 million; Akra Teijin and others: Ps. -10 million.

E) Majority net income:

During 2Q03, ALFA reported a majority net income in the amount of
Ps. 887 million, or 1.52 pesos per share, which compares to net
losses of Ps. 37 million during 1Q03 and Ps. 500 million in 2Q02.
The ICF, plus gains in associated companies, influenced the
majority net income of the quarter.

F) Capital expenditures and other disbursements:

During 2Q03, ALFA invested US$ 74 million in fixed assets and
acquisitions. The company used most of these resources to expand
production capacity for its core PET, auto components, food and
coated steel products businesses. Also, some resources were used
for the normal replacement of fixed assets. Resources were also
used to pay for two acquisitions made by Sigma during the
quarter. The first one was "Productos C rnicos", a company in El
Salvador, announced in the 1Q03 report. The second one consisted
of the assets and brands of a small processed meats company in
the Mexico City Valley that serves the wholesale ham market in
said region.

Cumulative capital expenditures in 2003 amount to US$ 121
million, in line with a budget of US$ 200 to 250 million for the
year as a whole. Also during the quarter, ALFA contributed US$ 15
million to the capitalization of Sidor, as a part of an agreement
reached by the company with its creditors. As a result of this
transaction, all contingent liabilities regarding Sidor were
cancelled. ALFA's direct and indirect ownership in Amazonia will
be reduced from 36.7% to 19.5%.

G) Indebtedness:

As of the end of 2Q03, net debt amounted to US$ 2,357 million,
basically the same as compared to the end of 1Q03. The capital
expenditures and other disbursements made during the quarter did
not allow ALFA to reduce net debt, although its financial
condition remained strong. Nevertheless, the company remains
committed to reduce debt and gain financial flexibility,
particularly in the steel and petrochemical subsidiaries.

ALPEK (petrochemicals & synthetic fibers)

Summary:

The company's 2Q03 results reflect the continued difficulties
that businesses have been facing for the past nine months.
Positive developments in the quarter, like the start-up of the
new PET facilities and the supply of a new PTA contract, were
offset by lower exports and other negative non-recurring events.
As a result of all of the above, sales volumes were down in
several of the product lines, which reduced 2Q03 revenues and
EBITDA, as compared to both the previous quarter and 2Q02.

Sales volumes and prices:

Alpek's 2Q03 sales volume was 16% lower than the previous quarter
and 15% less than the year-ago quarter. Some of the reasons for
the sequential decline are: lower PTA export sales to the Asian
markets and lower domestic sales of ethylene glycol due to supply
shortages and reduced demand resulting from customer's
expectations about lower future prices after the surge of past
months. The reduction in exports as compared to 2Q02 is the main
reason for the 15% volume decline. The comparison is even more
difficult due to the strong rebound in demand witnessed during
2Q02 following the industry downturn of 2001. Cumulatively, Alpek
sold the same volume of products during 1H03 as it did in the
corresponding period of 2002. More detailed comments are provided
below, which explain performance at each of Alpek's main business
during the quarter.

Alpek's 2Q03 average prices increased by 11% compared to 1Q03 and
22% compared to 2Q02. However, in some cases price increases
corresponded with raised costs in the underlying raw materials
caused by the volatility in oil and natural gas prices, and do
not reflect actual margin expansion. As explained in past
reports, Alpek has the ability to pass some of the cost increases
on to its customers, particularly those that use PTA as
feedstock.

Revenues, Operating Income, EBITDA:

While Alpek reported lower revenues during 2Q03 compared to 1Q03,
the company achieved an increase over the same quarter of 2002.
Lower volumes explain the sequential reduction, whereas higher
average selling prices more than compensated for the drop in
volumes as compared to 2Q02. Cumulatively, higher average prices
and the consolidation of DAK Fibers since April 2002, mostly
explain the higher revenues in 1H03 as compared to 1H02.

Alpek's 2Q03 operating income line was down 3% as compared to the
figure reported in 1Q03, mainly as a result of the drop in sales
volume as already explained. Good results of the nylon and
polypropylene businesses did not offset the lack of profits from
lower exports.

As compared to 2Q02, operating income was 25% lower, reflecting
the negative impact on profitability of the time lag between cost
hikes and the corresponding increase in selling prices in
businesses like PET, and polyester and nylon fibers. On
cumulative basis, Alpek's 1H03 operating income is 7% lower than
1H02, for the reasons already explained.

The lower 2Q03 operating income translated into lower EBITDA
generation. During the quarter, Alpek posted EBITDA in the amount
of US$ 73 million, just shy of the US$ 74 million reported in the
previous quarter but much lower than the US$ 88 million of 2Q02.

Lower sales volume and higher production costs explain the drop
in operating income and EBITDA in the comparable periods. On
cumulative basis, Alpek's EBITDA for the first half of 2003 is 4%
lower than for the same period of 2002.

Capital expenditures and other disbursements. Financial
condition:

During 2Q03, Alpek's capital expenditures amounted to US$ 7
million, for a cumulative investment of US$ 20 million in 1H03.
Resources were mostly used for the completion of the PET
conversion project, which started operations during June. Also,
some funds were used for normal asset replacement in the various
plants of the company.

As a result of capital expenditures, net working capital
investments and other minor disbursements, Alpek's net debt
remained flat in relation to the previous quarter. The financial
condition of the company continued to be strong, with interest
coverage ratio of 5.90 times and net debt to EBITDA ratio of
2.60. These figures compare to 5.80 and 2.40, respectively during
1Q03.

Comments on the operations by business segment:
- Raw materials for polyester and polyester - (63% of Alpek's
revenues): During 2Q03, this business segment suffered from lower
demand in the Asian markets. Lower economic activity and
inventory reduction after the huge build-up of previous quarters
resulted in weaker exports to that region. However, early
indications are that the situation is improving in the third
quarter.

Domestic PTA sales were boosted by demand coming from the newly
signed supply contract with a customer in the Altamira region.
However, the beneficial impact of this new contract was partially
offset as one domestic customer suffered a strike and another
underwent a maintenance shutdown at its plant. Finally, PET sales
in the US suffered from an unusually cold weather in regions
where volumes traditionally are heavy. As a result, sales volume
decreased by 17% as compared to 1Q03 and by 12% as compared to
2Q02. Despite the reduction in volume, 2Q03 EBITDA remained
almost at the same level reported during the past quarter,
reflecting better performance of the fiber division of the
business segment, which did not contribute to EBITDA in the past
quarter. However, as compared to 2Q02, 2Q03 EBITDA was 23% lower
due to the drop in sales volumes and lower profitability. During
June, the new PET facilities came on stream. Their contribution
to results will become visible in coming quarters.

- Nylon fibers and raw materials (17% of Alpek's revenues): This
business segment reported a good 2Q03 performance, based on solid
domestic sales, plus additional exports. As a result, sales
volume was 19% higher than the previous quarter and 6% higher
than the year-ago figure. More textile nylon and caprolactam
sales are mostly responsible for the increase. Corresponding with
the increased sales volume, 2Q03 EBITDA was 14% higher than 1Q03.
However, it was 20% lower than 2Q02 despite the small increase in
volume. One of the most important reasons for this reduction is
the higher cost associated with several raw materials, notably
cyclohexene and ammonia, where prices are much higher than a year
ago reflecting increases in the price of natural gas and crude
oil.

- Plastics & Chemicals (polypropylene, polystyrene, urethanes,
chemicals- 20% of Alpek's revenues): The business segment
reported an 18% drop in sales volume as compared to 1Q03 and 21%
compared to 2Q02. There are two main reasons for this decrease:
first, lower available supplies of the key ingredient ethylene
oxide sourced from Pemex's La Cangrejera plant on account of
operational problems that have already been corrected; second,
lower demand for ethylene glycol due to market expectation of
lower prices in the near future. Despite the significant decrease
in sales volume, the segment managed to generate EBITDA just 9%
lower than the previous quarter and 7% higher than the year-ago
figure. There are two reasons for this accomplishment: first, the
polypropylene business performed very well during the quarter;
second, savings in costs and expenses were attained across the
different businesses of the segment.

HYLSAMEX (steel products)

Summary:
Demand for steel products in the world markets decreased during
2Q03, as China reduced purchases to lower inventory levels after
the important build-up observed in previous quarters. Export
activities became more difficult and less profitable. As a
result, the company was not able to maintain the high export
levels of previous quarters. On the other hand, the domestic
market remained strong, with important increases in steel
consumption being observed during 2Q03.

Sales Volume and prices:

Hylsamex shipped 706,400 tons of steel products during 2Q03, 2%
lower than the 722,900 tons of 1Q03 but a bit higher than the
702,800 sold in 2Q02. Most of the reduction as compared to the
previous quarter is explained by lower export sales of flat
products, which offset improvements in domestic sales of steel,
particularly long products. Cumulatively, Hylsamex sold 1,429,200
tons of steel during 1H03, which compares to 1,326,400 sold
during 1H02, for an 8% gain. Domestic sales amounted to 579,000
tons, almost 10% higher than the 526,800 sold in 1Q03 and 1% more
than the 571,000 tons reported in 2Q02. Sales of long products
went substantially up. Flat products also increased, although to
a lower extent. On a cumulative basis, Hylsamex shipped 1,105,800
tons to domestic customers during 1H03, which is similar to the
volume sold during 1H02. 2Q03 export sales amounted to 127,400
tons, which negatively compares to the 196,100 tons sold during
1Q03 and the 131,800 tons reported during 2Q02, representing
decreases of 36% and 3%, respectively.

As explained, the export markets became more difficult to access,
especially for flat steel products. However, cumulatively,
Hylsamex exported 323,500 tons during 1H03, which is 47% higher
than the 220,700 tons shipped during 1H02. Steel price trends
were positive during 2Q03, as anticipated in the 1Q03 report.
Hylsamex's average pricing went up by 6%, approximately. This was
the result of better prices for all of the company's products on
the back of strong domestic demand. Relative to the year-ago
pricing levels, 2Q03 averages were 7% higher, basically for the
same reason.

Revenues, Operating Income, EBITDA:

The company reported higher 2Q03 revenues in dollars than in
either 1Q03 or 2Q02. This is the net result of the changes in
sales volume and average prices already explained. On a per ton
basis, Hylsamex reported US$ 522 per ton, which compares to US$
491 during both 1Q03 and 2Q02. Revenue per ton was favorably
impacted by the price increases implemented by the company during
2Q03 already explained.

Revenues

During 2Q02, Hylsamex's cost per ton amounted to US$ 465, which
is 9% higher than the US$ 426 reported during 1Q03 and 10% higher
than the US$ 423 of 2Q02. Several reasons explain this situation.
First, Hylsamex accessed costlier external sources for some raw
materials than in the previous quarter; second, the lower level
of shipments of the quarter did not allow for a more efficient
allocation of fixed costs; third, the individual costs of items
like energy and scrap increased faster than prices, impacting
profits.

Insofar as energy is concerned, during 2Q03 the company paid
higher unit prices for its consumption of natural gas and
electricity than in 1Q03 and 2Q02. The cost of electricity went
up by 15% in the quarter, as price paid in 2Q03 reflected
increases in the cost of fossil fuels to the electricity provider
from the previous quarter, which were passed on.

Over the quarter, the Texas reference price of natural gas
dropped 18%, to a level just above the ceiling price of US$5.25
MMBtu (floor at US$4.95/MMBTu) that Hylsamex established through
the different hedging contracts in place for the period April-
December 2003. In contrast, Hylsamex's natural gas price rose 5%
due to the fact that in 1Q03, gas requirements at spot prices -
not covered by the US$4.0/MMBtu 3-yr contract with Pemex- were
limited by some physical hedges, thus avoiding the peak pricing
levels observed during March 2003. Nevertheless, the Company's
weighted average price of natural gas for the quarter is still
below spot levels.

Regarding scrap, prices continued to grow following a trend
observed since the middle of 2002. During 2Q03, the higher scrap
prices meant an increase of 8% in the cost of Hylsamex's metallic
charge as compared to the previous quarter. Scrap prices have
been increasing reflecting the higher price of steel products.

Operating Income, Margins and Ebitda

As a result of the lower sales volume, which impacted revenue,
coupled with the increases in costs already explained, Hylsamex's
2Q03 operating income and margins were lower than the
corresponding figures for 1Q03 and 2Q02. The decrease in
operating income reported in 2Q03 impacted EBITDA, which amounted
to US$ 45 million, lower than the US$ 50 million reported in 1Q03
and the US$ 52 million of 2Q02. Cumulatively, the company is
performing substantially better in 1H03, than in the same period
of 2002.

Capital expenditures and other disbursements. Financial
Condition:

During 2Q03, Hylsamex invested US$ 17 million in fixed assets,
mainly associated with the expansion of the coated steel products
facilities. Other uses of funds during 1Q03 included an increase
of US$ 9 million in net working capital.

During the quarter, Hylsamex net debt increased by US$ 11 million
to US$ 1,066 million.

The financial condition of the company remained approximately the
same, with interest coverage of 1.8 times and net debt to EBITDA
ratio of 5.06, which compares to 2.4 and 4.85 during 1Q03.

SIGMA (food products)

Summary:

Sigma reported another strong quarter on the back of sales volume
growth and savings in operating expenses. The acquisitions
recently made in Central America began to contribute to the
company's results. Margins improved and EBITDA grew 16% as
compared to 1Q03 and 1% as compared to 2Q02.

Sales volume and prices:

Sigma sold 99,000 tons of products during 2Q03. This figure
compares to 96,000 tons sold during 1Q03 and 93,000 tons sold
during 2Q02, for a 3.6% and 6.4% increase, respectively. Sales of
processed meats account for the majority of the increase over the
previous quarter. On a cumulative basis, Sigma has sold 195,000
tons in 1H03, which is 8% higher than the cumulative tonnage sold
during 1H02.

The company's growth has been based on the successful efforts to
capture market growth in Mexico, plus contribution of the
acquisitions made in the Central America region in recent
quarters.

Revenues, Operating Income, EBITDA:

Revenue growth translated into improved operating income figures
as compared to the previous quarter and the same quarter of 2002
(in this last case, when measured in pesos only). The company has
been successful in keeping production costs and operating
expenses down in relative terms, so that it has more than offset
the negative impact of a higher exchange rate on the cost of
imported raw materials. The 14.7% operating margin reported by
Sigma in 2Q03 showed improvement relative to the 13.7% of the
previous quarter, although it was not as high as the record-high
15.4% margin reported during 2Q02.

Operating Income, Margins and Ebitda

During 2Q03, Sigma posted EBITDA in the amount of US$ 47 million,
which is 16% higher than the US$ 40 million posted in the
previous quarter and also 1% higher than the US$ 46 million
reported in 2Q02. Improvements in operating income as already
explained are the main reason for the growth in EBITDA
generation.

Capital Expenditures and Financial Condition:

During 2Q03, Sigma invested US$ 32 million in capital
expenditures. Resources were used for the expansion of production
lines at the Atitalaquia plant and to increase distribution
capabilities at some of the company's distribution centers. The
capex figure also includes the payment made for "Productos
C rnicos", the Salvadorian company whose acquisition was
announced in 1Q03. Lastly, resources were also used for the
acquisition of the assets and brands of a small processed meats
company operating in the Mexico City Valley, which will allow
Sigma to better cover the wholesale ham market in that region.

Despite capital expenditures, Sigma decreased its net debt US$ 7
million, which added to an already very strong financial
condition. 2Q03 Interest coverage was 21.2 times and the ratio of
net debt to EBITDA was 0.78, which compares to 18.3 and 0.82
times reported during 1Q03.

NEMAK (autoparts)

Summary:

During the quarter, Nemak was able to maintain operations at
similar levels than both 1Q03 and 2Q02, despite the lower
performance of the US auto industry in the same period.

Sales volume:

During 2Q03, the US auto industry continued to struggle, affected
by the slower economy. US auto production is 8% lower so far in
the year as compared to 2002. Despite the difficult environment,
Nemak has performed better than other suppliers to the industry.
During 2Q03, the company was able to sell 3.55 million equivalent
cylinder heads, almost identical to the 3.59 million sold in 1Q03
and the 3.60 million reported in 2Q02, helped by the continued
penetration of aluminum castings into the market, the launching
of new products in recent periods and the higher production level
of aluminum blocks. On a cumulative basis, Nemak has sold 7.1
million equivalent heads in 1H03, which is 2% more than the 7.0
million sold in 1H02.

Revenues, EBITDA:

Nemak's 2Q03 revenues amounted to US$ 207 million, 8% lower than
the US$ 224 million reported in 1Q03 and 2% lower than the US$
211 million sold in 2Q02. The decrease in revenues was the result
of changes in the sales mix and, to a lesser extent, a reduction
in the price of raw materials, which was passed on to the
customers according to standard industry practices.

Nemak's 2Q03 EBITDA was US$ 30 million, the same amount as that
reported in 1Q03 and also the same level attained in 2Q02. This
figure is consistent to the sales volume attained during the
quarter.

Capital Expenditures and other disbursements. Financial
Condition:

Nemak invested US$ 17 million in capital expenditures during
2Q03, the same amount invested in 1Q03 and similar to the US$ 19
million disbursed in 2Q02. The company continued with scheduled
investments to expand production in accordance with programs it
has been awarded. Nemak's net debt increased by US$ 6 million
during 2Q03, mainly due to the capital expenditures made over the
quarter. The financial condition of the company remained strong,
with an interest coverage ratio of 9.3 times and a net debt to
EBITDA ratio of 2.68 times, which compare to 5.1 and 2.63,
respectively, during 1Q03.

ASSOCIATED COMPANIES

A) Onexa-Alestra (telecom):

Since 4Q02, Alestra has been in default on interest payments
associated with its US$570 million total outstanding Senior Notes
due 2006 and 2009. Accordingly, Alestra has initiated a
restructuring process aimed to restore its financial viability.
Recently, the company has presented its noteholders with an
improved proposal to restructure the Notes. This proposal, which
still needs the approval from the US SEC and the Mexican Comisi˘n
Nacional Bancaria y de Valores to become effective, consists
basically of the following:

For every US$ 1,000 of principal amount of the Senior Notes due
2006 and 2009, Alestra offers:

i) US$ 1,060 of principal amount of new Senior Notes due June 20,
2010, or
ii) A cash payment in the amount of US$ 550, or
iii) A combination of both i) and ii)

The interest rate of the new Senior Notes will depend on the
percentage of acceptance of the proposal by the noteholders. If
acceptance is lower than 95% of the US$ 570 million, the interest
rate would be 8% per year. If acceptance is 95% of higher, the
rate would be 9%.

If accepted, to consummate the offer Alestra would receive an
equity contribution in the amount of US$ 100 million from its
shareholders. Of this amount, Onexa would contribute US$ 51
million (of which ALFA would contribute approximately 50%), while
AT&T would cover US$ 49 million. Further, AT&T would contribute
an additional US$ 8.5 million and Alestra would contribute cash
from its operations. The offer is conditioned, among other
things, to the acceptance of it by at least 90% of the
outstanding amount of current Senior Notes.

As of the date of this report, Alestra is discussing this offer
with its noteholders. No assurance can be given as to whether
this process is going to be successful or not. Alestra's 2Q03
financial information is being prepared and should be released
shortly. The book value of ALFA's investment in Alestra is US$
1.4 million at the end of 2Q03.

B) Amazonia-Sidor (Steel)

During 2Q03, Sidor and Amazonia successfully completed the
restructuring of their debt obligations to creditor banks and the
Venezuelan government. A summary of the main terms and conditions
of this restructuring follows:

Sidor's total debt was reduced from US$ 1,883 million, to US$ 791
million. The restructured debt is comprised of the following
tranches:

-US$ 350.5 million, to be repaid in 8 years, with one year of
grace.
-US$ 26.3 million, to be repaid in 12 years, one year of grace.
-US$ 368.6 million, to be repaid in 15 years, one year of grace.

Another US$ 45.4 million owed by Sidor to certain Venezuelan
government-owned suppliers will be repaid over five years.

As a part of the agreement, shareholders in Amazonia contributed
to the recapitalization of Sidor with fresh resources in the
amount of US$ 133.5 million through convertible debt in Amazonia.
ALFA's share of that amount was US$ 15 million.

Apart from this amount, Hylsamex capitalized US$ 41.5 million
owed to it by Amazonia, after which its stake in Amazonia amounts
to 36.73%.

As a result of the capitalization, the Venezuelan Government
increased its stake in Sidor from 30.0% to 40.3%. Upon occurrence
of the capitalization of Amazonia's convertible debt, Hylsamex's
ownership in Amazonia will be 12.0%, while ALFA's will be 7.5%.

Another important agreement involved the cancellation of all
guarantees granted by the shareholders in Amazonia, which were
replaced with a security on the fixed assets of Sidor, together
with pledges on the shares in Amazonia and the shares that
Amazonia holds in Sidor, for the benefit of the Venezuelan
Government and Sidor's financial creditors.

Hylsamex's minority stake in Amazonia generated a gain of Ps. 372
million (US$ 36million) in 2Q03, compared to the loss of Ps. 202
million (US$ 19 million) recorded in 1Q03, and to the Ps. 168
million (US$ 16 million) gain registered in 2Q02.

Hylsamex's equity investment in Amazonia is held through
HylsaLatin LLC, a fully owned subsidiary and Hylsamex, S.A. de
C.V. (the holding company). As of June 30, 2003, the book value
of the investment in Amazonia amounts to Ps. 513 million (US$ 49
million).

CONTACT:  Enrique Flores
          ALFA
          011 52 81 8748 1207
          eflores@alfa.com.mx

          Raul Gonzalez
          ALFA
          011 52 81 8748 1177
          rgonzale@alfa.com.mx

          Kevin Kirkeby
          Golin Harris
          (212) 309-1445
          kkirkeby@golinharris.com


BURLINGTON INDUSTRIES: WL Ross Adds $12M to Bid
-----------------------------------------------
Burlington Industries, Inc. (OTC Bulletin Board: BRLG) announced
Monday that the purchase price in its July 25th acquisition
agreement with W.L. Ross & Co. LLC had been increased from $608
million to $620.08 million, both subject to various adjustments.
The increase resulted from the sale process approved by the Court
in Burlington's reorganization proceeding.

The terms of the Burlington-Ross agreement are unchanged from the
agreement announced on July 25th, except for the increase in the
gross purchase price, which is payable at the closing $614.0
million in cash and a $6.08 million credit for enhancement of the
break-up fee negotiated as part of the July 25th agreement. The
agreement contemplates the sale of Burlington to W.L. Ross & Co.
LLC, with a concurrent sale of Burlington's Lees carpet business
to Mohawk Industries, Inc.

Burlington estimates that the new purchase price will increase
the return to unsecured creditors from approximately 40% to
approximately 41.5% per allowed claim amount. This estimated
amount is based on various assumptions, and the actual amount
could be different.

Burlington will submit the revised agreement to the Bankruptcy
Court for approval on Thursday, July 31, 2003.

With operations in the United States, Mexico and India and a
global manufacturing and product development network based in
Hong Kong, Burlington Industries is one of the world's most
diversified marketers and manufacturers of softgoods for apparel
and interior furnishings.


EMPRESAS ICA: Reports Unaudited Second Quarter 2003 Results
-----------------------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction, and procurement
company in Mexico, announced Friday its unaudited consolidated
results for the second quarter of 2003.

ICA noted the following highlights:

- ICA recorded second quarter revenue of Ps. 2,148 million and an
operating profit of Ps. 23 million.

- Total debt at the end of the second quarter was Ps. 4,730
million, or 12 percent less than the Ps. 5,734 million recorded
at the end of the same period of 2002.

- Divestment of non-strategic assets was Ps. 51 million during
the second quarter.

- General and administrative expense fell 4 percent in the second
quarter, compared to the same period of 2002.

- Accounts receivable fell by 28 percent during the second
quarter compared to the second quarter of 2002, primarily as a
result of a more efficient billings and collections process. ICA
also recovered Ps. 105 million of accounts receivable that had
been written-off.

- The current ratio at the end of the quarter was 0.89, compared
to 1.07 registered during the same quarter of last year.

- Integral Cost of Financing was Ps. 41 million, compared to Ps.
206 million registered during the second quarter of 2002.

ICA recorded a net loss of majority interest of Ps. 84 million in
the second quarter of 2003, compared to a loss of Ps. 446 million
in the same period of 2002.

CONSOLIDATED RESULTS
Second Quarter 2003

ICA recorded second quarter revenue of Ps. 2,148 million, a 17
percent increase from second quarter 2002 levels. During the
second quarter, revenue from projects in Mexico represented 66
percent of total revenue, while revenue in foreign currency,
principally in dollars, accounted for 71 percent of the total.

General and administrative expenses in the second quarter of 2003
decreased 4 percent to Ps. 209 million, from Ps. 217 million in
the same period of 2002. The expenses include additional costs in
the Industrial Construction segment. Operating income in the
second quarter of 2003 was Ps. 23 million, compared to Ps. 37
million during the same quarter of 2002. EBITDA generated in the
second quarter of 2003 was Ps. 108 million, equivalent to a
margin of 5.0 percent.

The integral financing cost in the second quarter of 2003 was Ps.
41 million, compared to Ps. 206 million recorded in the second
quarter of 2002.

The reduction in financial costs during the quarter reflected a
lower level of debt, and lower interest income resulted from the
reduction in the Company's cash balances. There was a foreign
exchange gain from the revaluation of the peso against the dollar
during the second quarter of 2003 compared to an exchange loss in
the same period of 2002, and a lower monetary gain. The weighted
average interest rate paid was 9.6 percent during the second
quarter of 2003, compared to 10.0 percent registered during the
same quarter of 2002.

During the second quarter, there was a gain on Other Income of
Ps. 16 million, reflecting principally a cancellation of accounts
payable as a result of a settlement with creditors. This account
also includes employee severance payments of Ps. 11.8 million
made during the quarter and the cancellation of the excess
valuation reserves stemming from the sale of real estate.

The tax provision in the second quarter of 2002 was Ps. 92
million, made up of Ps. 96 million for deferred taxes offset by
Ps. 4 million for income tax to be refunded.

ICA recorded a second quarter gain of Ps. 4 million from its
participation in unconsolidated affiliates, including its
participation in the Caruachi hydroelectric project and AUCOVEN,
the concessionaire for the Caracas-La Guaira highway, both in
Venezuela; the Central North Airport Group (through its operating
company SETA); and the environmental services company CIMA.

ICA recorded a net loss of majority interest of Ps. 84 million in
the second quarter of 2003, equivalent to a loss of Ps. 0.14 per
share (US$ 0.08 per ADS) based on 621.56 million weighted average
shares outstanding. This compares with a net loss of majority
interest of Ps. 446 million, or Ps. 0.72 per share (US$ 0.41 per
ADS) recorded in the second quarter of 2002, based on a weighted
average of 621.56 million shares outstanding.

SEGMENT RESULTS

The projects that contributed most to construction revenues were:
the Chiapas Bridge, The Tulancingo-Asunci˘n highway in Hidalgo,
the Santa Martha Acatitla prison in Mexico City, and the San Juan
Metro in Puerto Rico (Civil Construction); the Reynosa Cryogenic
plant, the Cadereyta and Poza Rica Pemex projects, the Altamira
III and IV power plants, and the La Laguna thermoelectric plant
for Iberdrola (Industrial Construction); and Rodio's projects in
Portugal and Spain
(CPC-Rodio).

CIVIL CONSTRUCTION revenues rose, reflecting the commencement of
work on several projects contracted in prior quarters. Segment
operating results reflected the renegotiation of the Chiapas
Bridge project, the recovery of receivables previously written
off, and work on the El Caj˘n hydroelectric project.

INDUSTRIAL CONSTRUCTION revenue increased because of the
completion of certain projects, as well as the commencement of
work on the Chicontepec oil field project and on the Iberdrola La
Laguna thermoelectric plant. Operating results included
additional costs incurred from the putting into service of the
Campeche thermoelectric project for Transalta as well as an
increase in costs for the preparation of proposals for new
projects. These costs resulted in an operating loss of Ps. 39
million during the second quarter. These costs as well as other
additional costs are expected to reduce this segment's results
for the year.

CPC-RODIO'S results, with revenue of Ps. 449 million and an
operating margin of 4.4 percent, reflected the performance of
foundation and subsoil projects for various clients in Spain and
Portugal.

OTHER SEGMENTS accounted for 14 percent of total revenue during
the quarter.

REAL ESTATE AND HOUSING revenue reflected a reduction in Real
Estate revenue, as a result of a lower level of divestment in the
quarter. At the same time, Housing increased its revenue to Ps.
138 million, with total sales of 526 units, compared to the 487
units sold during the second quarter of 2002. The operating loss
in Real Estate offset an operating profit in Housing.

INFRASTRUCTURE OPERATIONS results included the operation of the
Acapulco Tunnel, the Corredor Sur, and the sale of land in
Panama, and the parking garages.

ALSUR registered a decrease in activity due to the sale of the
Veracruz grain terminal and the sale of the Miguel Alem n grain
silos in Tlalnepantla.

CONSTRUCTION BACKLOG

ICA's backlog as of June 30, 2003 included Ps. 354 million in new
projects and contract enlargements, net. The new projects are:
the Tejocotal-Nuevo Necaxa roads, which are part of the Mexico-
Tuxpan highway; the Cordoba prison in Veracruz; projects in Spain
and Portugal; and the San Javier segment of the Macrocircuito
water project in the Mexico City metropolitan region.

At the end of the second quarter, projects in Mexico represented
97 percent of the total backlog, and public sector clients
represented 82 percent of the total.

SIX MONTHS CONSOLIDATED RESULTS

During the first six months, revenue was Ps. 4,045 million, a 6%
increase compared to Ps. 3,813 million registered during the
first half of 2002. The operating margin fell to 1.7 percent,
compared to 2.0 percent in the same half of last year.

ICA recorded a net loss of majority interest of Ps. 347 million
in the first half of 2003, equivalent to a loss of Ps. 0.56 per
share (US$ 0.32 per ADS) based on 621.56 million weighted average
shares outstanding. This compares with a net loss of majority
interest of Ps. 505 million, or Ps. 0.81 per share (US$ 0.47 per
ADS) recorded in the first six months of 2002, based on a
weighted average of 621.56 million shares outstanding.

BALANCE SHEET
As of June 30, 2003, ICA had cash and equivalents of Ps. 1,874
million, a reduction of Ps. 1,299 million compared to Ps. 3,173
million as of June 30, 2002.

Of this, 82 percent is in ICA's joint venture subsidiaries, ICA
Fluor and Rodio; payment of dividends by these subsidiaries
requires the approval of ICA's jointventure partners. Remaining
cash is largely held in other operating subsidiaries.

Client advances represent 32 percent of the total cash.

Accounts receivable were Ps. 1,773 million at the end of the
second quarter of 2003, 28 percent below the Ps. 2,457 million of
the same period of 2002, as a result of improvements in the
processes of estimating, billing, and collections, as well as the
recovery of past due accounts including some that resulted from
settlements with clients.

The 14 percent reduction in long term assets resulted from the
divestment of subsidiaries and non-strategic assets, as well as
the sale of real estate assets, principally land and buildings
located in Cancun and Queretaro, as well as the sale of
machinery.

DIVESTMENTS

During the second quarter of 2003, ICA carried out divestments of
Ps. 51 million, including the sale of land in Santa Fe, Mexico
City; machinery; and Alsur warehouses.

DEBT

Total debt at the end of the second quarter was Ps. 4,730
million, a reduction of Ps. 644 million, or 12 percent, compared
to the same period of 2002. Of total debt, 35 percent is owed by
ICA operating subsidiaries or is project finance, and the balance
is holding company debt.

As of June 30, 2003, 42 percent of ICA's total debt matures in
less than one year; 26 percent is securities debt; and 48 percent
is denominated in foreign currency, principally dollars.

LIQUIDITY AND FINANCIAL RATIOS

The current ratio (current assets/current liabilities) as of the
end of the second quarter of 2003 was 0.89, compared to 1.07 in
the same period of 2002. The reduction was the result,
principally, of the reduction in cash and the reclassification of
the convertible bond to short term debt.

The interest coverage ratio (EBITDA/interest expense) was 0.94,
compared to 0.99 in the same period of 2002. ICA's leverage ratio
(total debt/equity) was 1.33 in the second quarter, compared to
1.10 in the same period of 2002.

WORKING CAPITAL AND DEBT RESTRUCTURING

ICA had a working capital deficit at the end of the second
quarter of Ps. 724 million, compared to positive working capital
of Ps. 581 million registered as of the end of the second quarter
of 2002. This change reflected a 41 percent reduction in cash and
cash equivalents, compared to a 27 percent decrease in current
liabilities.

As previously disclosed, ICA continues to negotiate with its main
creditors to restructure its debt, in order to resolve its
liquidity problems. Even though some progress has been made, ICA
and its creditors have not reached any definitive agreements. ICA
will promptly inform the market of any developments in this area.

ACCOUNTING TREATMENT FOR THE EL CAJON HYDROELECTRIC
PROJECT

The entire value of the El Cajon hydroelectric project's contract
includes revenue attributable to work performed on the project
and financial income derived from financing the project for five
years. Revenue attributable to work performed on the project is
recognized based on the percentage of completion method.

Financial income will be recognized based on ICA's receipt of
certificates of approval for work performed.

Given that the consortium will not receive any payment in the
short term, accounts receivable will be recorded as a long term
asset under the "approved certificates" line item or the "work
pending approval" line item, as the case may be. Debt incurred in
connection with the project will be recorded as a long term
liability when disbursements take place. Financing cost will be
recognized as debt is incurred, and associated financial income
will be recognized upon receipt from the CFE of certificates of
approval for work performed.

CONTACT:  Dr. Jos‚ Luis Guerrero
          (5255) 5272-9991 x2060
          jose.guerrero@ica.com.mx

          Lic. Paloma Grediaga
          (5255) 5272-9991 x3470
          paloma.grediaga@ica.com.mx

          In the United States:
          ZEMI COMMUNICATIONS
          Daniel Wilson
          (212) 689-9560
          d.b.m.wilson@zemi.com


GRUPO ELEKTRA: 2Q EBITDA Increases 6% to Record Ps. 805 Million
---------------------------------------------------------------
- Banco Azteca Reaches Profitability While Net Deposits Surpass
3.3 Billion Pesos

- Net Debt Declines 68% YoY -

Highlights:

- 2Q03 EBITDA rose 6% YoY to a record Ps. 805 million from Ps.
756 million in 2Q02. This was largely achieved through an 18% YoY
growth in revenue of our retail division -which included solid
performance from our three store formats (Elektra, Salinas y
Rocha and Bodega de Remates), our ongoing cost and expense
controls, and the gradual process to allocate expenses to the
business units in which they are actually generated.

- In only its second full quarter of operations, Banco Azteca
became a profitable subsidiary for Grupo Elektra. This was
achieved as net deposits surpassed Ps. 3.3 billion, a seven-fold
increase from initial net deposits transferred from Serfin, and a
gross credit portfolio that reached almost Ps. 3.8 billion. s.

- Net debt declined 68% YoY and 30% QoQ to Ps. 1.078 billion in
2Q03 from Ps. 3.414 billion in 2Q02 and Ps. 1.538 billion in
1Q03, respectively.

Financial Highlights:

Grupo Elektra S.A. de C.V. (NYSE:EKT, BMV: ELEKTRA*), Latin
America's leading specialty retailer, consumer finance and
banking services company, reported Monday financial results for
the second quarter of 2003.

During the second quarter we experienced very healthy growth in
all our store formats and most product lines that comprise our
retail division. This was largely possible as we continue to reap
the benefits of our successful merchandising strategy, which is
helping to further consolidate our leadership in the specialty
retail segment," commented Javier Sarro, Chief Executive Officer
of Grupo Elektra.

The combination of our top-line growth, our ongoing cost and
expense controls, and the gradual allocation of expenses to
better reflect their origins enhance the already strong cash-flow
generating capabilities of our proven business model," Mr. Sarro
concluded.

Carlos Septi‚n, Chief Executive Officer of Banco Azteca, said:
"After only two full quarters of operations, Banco Azteca is
already profitable. This is a reflection of performance that has
exceeded initial expectations for our deposit and consumer loans
products, coupled with the appropriate cost controls. If this
positive trend continues, in the following months we should be
able to completely fund our credit portfolio with net deposits.
At the same time, we will continue to gradually increase our
selection of quality financial products and services directed to
Grupo Elektra's large retail customer base."

The benefits of our financial strategy for 2003 are tangible and
include a net debt reduction of 68% year-on-year and 30% quarter-
on-quarter, respectively. This is allowing us to reduce financial
expenses for Grupo Elektra, as evidenced in the Ps. 49 million or
21% quarter-on-quarter decline in this line," stated Rodrigo
Pliego, Chief Financial Officer of Grupo Elektra.

2Q03 Financial Highlights:

In response to the feedback received from market participants and
in order to enhance the transparency of our reports, starting in
4Q02, we are presenting the results of Banco Azteca under the
equity participation method. All figures and discussions detailed
in this press release result from the application of this
accounting method, which provides a clearer overview of the
separated results of our retail division and of Banco Azteca.

Comments on 2Q03 results:

Revenue

Total revenue increased 4.9% YoY largely due to an 18.4% YoY
increase in revenue of the retail division. Sales growth was the
result ofstrong performance across all our store formats. Revenue
from Elektra, Salinas y Rocha, and Bodega de Remates store
formats increased by 16.9%, 17.4% and 51.5%, respectively, on a
year-on-year basis. We believe that this positive performance is
due to our enhanced merchandising strategy and our focus on
productive store formats. However, the positive performance of
the retail division was partially offset by a 48.5% YoY decrease
in revenue of the consumer finance division. This was due to the
fact that Grupo Elektra, through its Elektrafin subsidiary,
ceased to provide consumer credit in Mexico as of December 1,
2002, at which time Banco Azteca began offering consumer loans
for customers of Grupo Elektra.

Gross Profit As expected, total gross profit decreased by 3.7%
YoY, as a 14.0% YoY increase in the gross profit of the retail
division was offset by a 34.3% YoY decrease in the gross profit
of the consumer finance division, fully explained by the above-
mentioned decline in revenue of this division. Gross margin of
the retail division fell 120 basis points from 33.7% in 2Q02 to
32.5% in 2Q03 due to the enhancement of our "Nobody Undersells
Elektra" merchandising strategy. However, as evidenced by the
increase in revenue of this division, management believes that
the increases in volumes more than offset the decline in margins.

Gross Profit

As expected, total gross profit decreased by 3.7% YoY, as a 14.0%
YoY
increase in the gross profit of the retail division was offset by
a 34.3% YoY decrease in the gross profit of the consumer finance
division, fully explained by the above-mentioned decline in
revenue of this division. Gross margin of the retail division
fell 120 basis points from 33.7% in 2Q02 to 32.5% in 2Q03 due to
the enhancement of our "Nobody Undersells Elektra" merchandising
strategy. However, as evidenced by the increase in revenue of
this division, management believes that the increases in volumes
more than offset the decline in margins.

EBITDA and Operating Profit

Despite the decline in total gross profit, a 13.3% YoY decrease
in operating expenses resulted in a 6.5% YoY increase in EBITDA.
During the quarter, we continued with our planned gradual
allocation of operating expenses of Banco Azteca. Furthermore,
operating expenses of the retail division remained in check due
to our ongoing cost and expense control programs.

At the same time, operating profit increased by 15.5% YoY as
depreciation and amortization expenses declined 8.2% over the
same period due to a 10.0% YoY decline in fixed assets. This was
in turn due to the sale of the day-to-day operating assets to
Banco Azteca during 1Q03. Part of Grupo Elektra's financial
strategy for 2003 is the separation of assets and elimination of
inter-company agreements between the retail and the financial
divisions.

Comprehensive Cost of Financing

Comprehensive cost of financing decreased 73.6% to Ps. 139.4
million in 2Q03 compared to Ps. 528.7 million in 2Q02. The Ps.
389.3 million YoY decrease in the cost of financing is explained
by:

- An increase of Ps. 18.8 million in net interest expense coming
from:
        - Ps. 10.4 million higher interest income resulting from
          a 39.4% YoY higher cash balance, and

        - Ps. 29.0 million higher interest expenses due to
          interest paid on the new private securitization
          program. The basis to calculate interest on the new
          securitization program leads to high front-ended
          payments that diminish over the life of the program,
          compared to the straight-line basis of calculation
          on the former program.

- FX gains of Ps. 9.9 million in 2Q03 compared to FX losses of
Ps. 415.9 million in 2Q02.

- A monetary gain of Ps. 9.6 million in 2Q03 compared to a Ps.
27.5 million gain in 2Q02.

Net Profit

The strong operating performance, coupled with the above
mentioned decrease in the comprehensive cost of financing, as
well as a Ps. 99.0 million gain from our equity participation in
Banco Azteca, Comunicaciones Avanzadas and Afore Azteca, led to a
net profit for 2Q03 of Ps. 482.6 million, compared to a Ps. 338.2
million net loss during 2Q02. Out of the Ps. 99.0 million gain,
we must highlight the fact that Banco Azteca has become a
profitable subsidiary for Grupo Elektra with just two full
quarters of operations, contributing with Ps. 37.4 million
profits; CASA provided a Ps. 74.9 million profit; and Afore
Azteca reported a Ps. 13.3 million loss during the quarter.

1.0 Retail Division

During 2Q03 we continued to reap the benefits of our enhanced
"Nobody Undersells Elektra" strategy as sales volumes were
positively impacted. This was reflected in the YoY revenue
increases in all our store formats (16.9%, 17.4% and 51.5% for
Elektra, Salinas y Rocha and Bodega de Remates, respectively),
our core product lines (15.7% in the combined revenue of
electronics, household appliances, furniture and small
appliances), and other product lines like telephones (196%).

Management believes that the negative impact on gross margins is
more than offset by the increases in volume, coupled with better
terms from suppliers. The latter are a direct result of an
improved cash-flow within the retail division, which gets paid in
cash for all customer sales regardless of whether they are made
with cash or credit. This is, among others, one of the main
benefits provided by Banco Azteca.

The following are explanations of certain highlights.

Telephones (Wireless Products and Services)

We continue to see high growth potential for this category of
products given the still low penetration of telephony services,
especially within our target market. During 2Q03, we continued to
grow revenue and, most importantly, gross profit in this
increasingly important product line as we benefit from a broader
selection of wireless products. Please recall that we introduced
Telcel and Telef˘nica/Pegaso's wireless products during the
second half of 2002. Revenue increased 196% to Ps. 212.7 million
in 2Q03 from Ps. 71.9 million in 2Q02. Meanwhile, gross profit
increased 59% to Ps. 44.6 million in 2Q03 from Ps. 28.0 million
in 2Q02.

Western Union

The combination of more competitive commissions charged by
Western Union and our successful advertising and promotional
campaigns allowed us to maintain the positive trend in our
electronic money transfer business. We expect this trend
experienced in this business during recent quarters to continue
during the second half of 2003. During 2Q03 we were able to
increase the number of transactions in our US to Mexico
electronic money transfer business by 39% to 1.1 million. This
represents an amount transferred of Ps. 2.8 billion, a 48% YoY
increase. In turn this led to a revenue increase of 26% in 2Q03
to Ps. 95.2 million from Ps. 75.7 million in 2Q02. Over the same
period gross profit increased 26% to Ps. 92.9 million in 2Q03
from Ps. 74.0 million in 2Q02.

Dinero Express

During 2Q03 revenue from our domestic electronic money transfer
service increased 38% to Ps. 65.8 million from Ps. 47.6 million
in 2Q02. Revenue was boosted by a 38% increase in the number of
transfers from 665,000 in 2Q02 to 917,000 in 2Q03. This
represented a 31% increase in the amount transferred, from Ps.
711 million in 2Q02 to Ps. 930 million in 2Q03.

2.0 Banco Azteca Operations

2.1 Banco Azteca and Credimax Consumer Loans

After only its second full quarter of operations, Banco Azteca
became a profitable non-restricted subsidiary of Grupo Elektra.
The results exceed initial expectations that forecast this
inflexion point to happen during the second half of 2003. Banco
Azteca began providing savings products at the end of October
2002. However, its consumer loans for durables and personal loans
were not launched until December 1, 2002, at which time Credimax
ceased to issue new consumer loans in Mexico. The outstanding
portfolio of Credimax in Mexico is gradually being extinguished
during 2003. The outstanding credit portfolio and the new
accounts generated in our operations in Guatemala, Honduras and
Peru remain at Credimax.

The average term of the combined credit portfolio (Credimax +
Banco Azteca) at the end of 2Q03 was 49 weeks, representing a
one-week increase from the same-quarter last year, and a one-week
decrease from the prior quarter. We continue to believe that the
market is still demanding longer terms in order to make financing
more attractive. Furthermore, all our main competitors are also
placing most of their credit sales at long terms.

At the end of 2Q03, we had a combined total of 2.368 million
active credit accounts, compared to 1.947 million in 2Q02, a 7%
increase. Combined gross customer accounts receivable reached Ps.
4.7 billion, compared to Ps. 4.5 billion at the end of 2Q02. Out
of these totals, Banco Azteca had almost 1.8 million active
credit accounts and a Ps. 3.787 billion-credit portfolio (Ps.
3.515 billion and Ps. 272 million in consumer and personal loans,
respectively). The collection rate of Banco Azteca remains at the
same excellent historic level maintained by Grupo Elektra.

2.2 Banco Azteca Guardadito Savings Accounts and Inversi˘n Azteca
Term Deposits

Banco Azteca's savings program continues with the positive trend
that began with the bank launch at the end of October 2002. Net
deposits surpassed Ps. 3.3 billion at the end of 2Q03, a 113% QoQ
increase compared with net deposits of Ps. 1.6 billion at the end
of 1Q03. Over the same period, the number of accounts rose by
approximately 400,000 to 2.0 million and the average balance per
account increased 65% from Ps. 980 in 1Q03 to Ps. 1,619 pesos in
2Q03.

3.0 Balance Sheet

Total debt with cost was Ps. 3.9 billion at the end of 2Q03, with
74% of it placed long term, compared with Ps. 5.5 billion for the
year-ago period. Net debt at the end of 2Q03 was Ps. 1.078
billion, a 68%% and 30% decrease, respectively, compared to Ps.
3.414 billion at the end of 2Q02 and Ps. 1.538 at the end of
1Q03.

This comes as the result of our already successful financial
strategy implemented by the company for 2003 through which we
have been able to pay off expensive debt and reduce our exposure
to dollar-denominated liabilities.


GRUPO IUSACELL: Responds To Movil Access Tender
-----------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL) (NYSE:CEL) ("Iusacell" or
the "Company") announced Monday, in response to the competing
tender offers of Movil Access, S.A. de C.V. ("Movil Access") and
Fintech Mobile Inc. ("Fintech"), that its Board of Directors (the
"Board") continues to believe that each holder of the Company's
equity securities (the "Securities") should make his, her or its
own decision concerning whether to tender Securities into either
of the tender offers based upon all available information,
including the factors considered by the Board more fully
described in the Company's Schedule 14D-9 filings with the
Securities and Exchange Commission ("SEC").

As described in the Company's Schedule 14D-9 filings, the Board
is unable to evaluate the value of the Company and the Securities
given the uncertainty of whether the Company will be able to
successfully restructure its debt, the related uncertainty of the
equity value of the Company following any such restructuring and
other factors more fully described in the Company's Schedule 14D-
9 filings. Accordingly, the Board is unable to determine whether
the prices offered in the tender offers are fair prices. The
Board also is unable to determine whether the Fintech tender
offers will be consummated and, accordingly, whether the offer
price in the Fintech tender offers will be available to holders
of the Securities. The Board believes that holders of Securities
who wish to dispose of their Securities should consider whether a
higher net consideration is available to them by selling in the
open market as opposed to tendering their Securities in either of
the tender offers.

The Board considered that the offer price in the Fintech tender
offers represents an offer price of approximately four times the
offer price in the Movil Access tender offers. The Board also
considered that a condition to the Fintech tender offers is that
the number of Securities validly tendered into the Fintech tender
offers (and not withdrawn) be equal to at least seventy percent
(70%) of the outstanding Securities (unless such condition is
waived by Fintech) and that Fintech has reserved the right to
withdraw its tender offers if any person acquires a majority of
the Securities. Furthermore, the Company has been informed by its
principal shareholders, Verizon Communications Inc. and Vodafone
Americas B.V., that they will not withdraw their Securities from
the Movil Access tender offers and, as a result, will not tender
any Securities into the Fintech tender offers.

This announcement was issued by the Company on July 28, 2003.
Iusacell shareholders should read the Company's Schedule 14D-9
with respect to the Fintech tender offers and the Amendment No. 5
to the Company's Schedule 14D-9 with respect to the Movil Access
tender offers originally filed with the SEC on July 14, 2003, as
they contain important information. Both the Schedule 14D-9 with
respect to the Fintech tender offers and the Amendment No. 5 to
the Schedule 14D-9 with respect to the Movil Access tender offers
were filed on Monday with the SEC. The Schedule 14D-9 with
respect to the Fintech tender offers will be mailed to Iusacell
shareholders. The Schedule 14D-9 with respect to the Movil Access
tender offers, the Schedule 14D-9 with respect to the Fintech
tender offers, any amendments thereto and other public filings
made from time to time by the Company with the SEC are available
without charge from the SEC's web site at www.sec.gov.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell) (NYSE:CEL) (BMV:CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.

CONTACT:  GRUPO IUSACELL, S.A. DE C.V., Mexico City
          Russell A. Olson
          011-5255-5109-5751
          russell.olson@iusacell.com.mx

                 or

          Carlos J. Moctezuma
          011-5255-5109-5759
          carlos.moctezuma@iusacell.com.mx


GRUPO SIMEC: Releases Modestly Improved 1H03 Results
----------------------------------------------------
Grupo Simec, S.A. de C.V. (Amex: SIM) ("Simec") announced Monday
its results of operations for the six-month period ended June 30,
2003. Net sales increased 23% to Ps. 1,268 million in the six-
month period ended June 30, 2003, compared to Ps. 1,031 million
in the same period of 2002, due to higher finished product prices
and modestly increased production levels. Primarily as a result
of the foregoing and a significantly lower financial expense in
the 2003 period, in the six-month period ended June 30, 2003,
Simec recorded net income of Ps. 158 million versus net income of
Ps. 5 million for the comparable period of 2002.

Simec sold 304,989 metric tons of basic steel products during the
six- month period ended June 30, 2003, as compared to 297,647
metric tons in the same period of 2002. Exports of basic steel
products decreased to 34,031 metric tons in the six-month period
ended June 30, 2003 versus 39,807 metric tons in the June 30,
2002, period. Simec also sold 27,636 tons of billet in the six-
month period ended June 30, 2003, as compared to 13,691 tons of
billet in the prior comparable period. Prices of finished
products sold in the six-month period ended June 30, 2003,
increased 18% in real terms versus the same period of 2002.

Simec's direct cost of sales was Ps. 834 million in the six-month
period ended June 30, 2003, or 66% of net sales, versus Ps. 688
million, or 67% of net sales, for the 2002 period. Indirect
manufacturing, selling, general and administrative expenses
(including depreciation) increased 3% to Ps. 230 million during
the six-month period ended June 30, 2003, from Ps. 223 million in
the June 30, 2002 period.

Simec's operating income increased 70% to Ps. 204 million during
the first six months of 2003 from Ps. 120 million in the same
period of 2002. As a percentage of net sales, operating income
was 16% in the six-month period ended June 30, 2003, and 12% in
the same period of 2002.

Simec recorded other income, net, of Ps. 2 million in the six-
month period ended June 30, 2003, compared to other income, net,
of Ps. 8 million in the same period of 2002. In addition, Simec
recorded a provision for income tax and employee profit sharing
of Ps. 22 million in the six-month period ended June 30, 2003,
versus a provision of Ps. 20 million in the same period of 2002.

Simec recorded financial expense of Ps. 26 million in the six-
month period ended June 30, 2003, compared to financial expense
of Ps. 103 million in the same period of 2002, as a result of (i)
net interest expense of Ps. 14 million in the first six months of
2003 compared to net interest expense of Ps. 35 million in the
same period of 2002, reflecting lower debt levels in the 2003
period; (ii) an exchange loss of Ps. 15 million in the six-month
period ended June 30, 2003, compared to an exchange loss of Ps.
88 million in the same period of 2002, reflecting a decrease of
1.6% in the value of the peso versus the dollar in the 2003
period compared to a decrease of 9.4% in the value of the peso
versus the dollar in the 2002 period; and (iii) a gain from
monetary position of Ps. 3 million in the six-month period ended
June 30, 2003 compared to a gain from monetary position of Ps. 20
million in the same period of 2002, reflecting the domestic
inflation rate of 1.2% in the 2003 period compared to the
domestic inflation rate of 2.6% in the 2002 period and lower debt
levels during the 2003 period.

At June 30, 2003, Simec's total consolidated debt consisted of
approximately $2 million of U.S. dollar-denominated debt, while
at December 31, 2002, Simec had outstanding approximately $47.8
million of U.S. dollar- denominated debt (including $14.4 million
of debt owed to Simec's parent company Industrias CH, S.A. de
C.V. ["ICH"]). Simec's lower debt level at June 30, 2003,
reflects the prepayment of $30 million of bank debt in the six-
month period ended June 30, 2003 (Simec financed $16.2 million of
this prepayment with loans from ICH), the semi-annual
amortization installment on its bank debt of $1.4 million in May
2003, the conversion to common stock in March 2003 of $16.1
million of loans (plus accrued interest thereon) from ICH at a
conversion price equivalent to U.S. $1.35 (Ps. 14.588) per
American Depositary Share and a capital contribution from ICH to
Simec in the amount of $14.4 million (the proceeds of which were
used to retire debt owed to ICH) for capital stock to be issued
upon receipt by Simec of approval from the Comision Nacional
Bancaria y de Valores. Simec currently owes no amounts to ICH.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at June 30, 2003.

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


GRUPO TFM: Reports Flagging 2Q, 1H03 Results
--------------------------------------------
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and
subsidiaries ("TFM") reported financial results for the second
quarter and first six months of 2003.

RESULTS FOR THE SECOND QUARTER OF 2003

Consolidated net revenues for the quarter ended June 30, 2003,
were $176.6 million compared to revenues of $186.3 million for
the same period of 2002, which represented a decrease of $9.7
million or 5.2 percent. Revenues were negatively impacted by
lower volume in the automotive segment due to an industry
downturn, depreciation of the peso, shorter average length of
haul, and fluctuations in the mix of freight. These negative
effects were partially offset by TFM's continuing efforts in
truck to rail conversion and by the recovery of the Mexican steel
industry. Volume during second quarter 2003 was 3.1 percent
higher than in the same period of 2002. Growth was concentrated
in cement, metals and minerals and chemical segments.

Consolidated operating profit for the second quarter of 2003,
including $0.5 million from Mexrail operations, was $36.1
million, representing a decrease of $10.7 million from the prior
year period. The operating ratio (operating expenses as a
percentage of revenues) for the second quarter of 2003 was 79.6
percent including Mexrail and 77.0 percent without Mexrail.

RESULTS FOR THE FIRST SIX MONTHS OF 2003

Consolidated net revenues for the six months ended June 30, 2003,
were $345.1 million, a decrease of $12.0 million or 3.4 percent
from the six months ended June 30, 2002. During the first half of
2003, revenues were impacted approximately $49.1 million by
automotive segment revenues more than $20.0 million lower than
the same period of 2002, depreciation of the peso by
approximately $16.8 million, shorter average length of haul and
freight mix with lower rates. These negative effects were
partially offset by improved truck to rail conversion and
recovery of the steel industry, together generating increased
volume of 8.9 percent (in segments other than automotive) over
the same period of 2002. Growth was concentrated in cement,
metals and minerals and intermodal segments.

Operating profit for the six months ended June 30, 2003, was
$63.9 million, resulting in an operating ratio of 81.5 percent.
The consolidated operating ratio without Mexrail was 79.0
percent. Operating results were impacted by lower revenues, fuel
price variability due to the U.S.-Iraq War (impacting $9.0
million or 3 percent over revenue) and higher insurance and
casualty related costs when compared with the same period of
2002, which included an insurance premium recovery.

FINANCIAL EXPENSES

Net financial expenses incurred in the six months ended June 30,
2003, were $55.6 million, including $14.9 million related to the
$180.0 million bond issue due 2012. TFM recognized a $2.9 million
foreign exchange loss resulting from the depreciation of the
Mexican peso relative to the U.S. dollar.

NET INCOME

Net loss for the six months ended June 30, 2003, was $18.3
million, including a deferred income tax expense of $18.9 million
as a result of the reduction in tax credit values due to the
depreciation of the peso and lower future Mexican corporate tax
rates.

EBITDA

EBITDA for the first six months of 2003 was $107.4 million. (This
non-GAAP or IAS measure is not a measure of operating results,
but rather of the company's ability to service debt. It should
not be construed as an alternative to either (i) operating income
or (ii) cash flows from operating activities. It is defined as
operating income plus depreciation and amortization and is the
result of combining TFM's and Mexrail's results).

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2003, TFM's accounts receivable balance had
decreased by 4.2 percent to $195.8 million from $204.5 million at
December 31, 2002, as a result of the recovery of tax
receivables. As of June 30, 2003, accounts payable and accrued
expenses were $121.2 million, a decrease of $7.6 million or 5.9
percent from December 31, 2002.

TFM made capital expenditures of $25.3 million during the second
quarter of 2003. Gross capital expenditures for the first six
months of 2003 were $34.0 million. As of June 30, 2003, TFM had
an outstanding debt balance of $966.3 million, $56.8 million
lower than as of December 31, 2002. Debt includes outstanding
U.S. commercial paper of $65.0 million, a term loan of $128
million and Senior Notes of $773.5 million.

During the second quarter of 2003, as part of the implementation
of NAFTA Rail, TFM sold 5,100 shares, or 51% of the total capital
stock, of Mexrail to Kansas City Southern for $32.7 million.

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

CONTACT:  GRUPO TRANSPORTACION FERROVIARIA MEXICANA, SA. DE C.V.
          Mario Mohar or Jacinto Marina
          011-525-55-629-8866
                 or
          Leon Ortiz, 011-525-55-447-5836


GRUPO TMM: Reports Second Quarter, Six Months Results
-----------------------------------------------------
Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A; "TMM"), a Latin
American multi-modal transportation and logistics company and
owner of the controlling interest in Mexico's busiest railway,
TFM, reported revenues from consolidated operations of $224.6
million for the second quarter of 2003, compared to $239.3
million for the same period of 2002. Reduced revenues were
reported across all divisions, except Tex-Mex, due to continued
unfavorable economic conditions. Devaluation in the peso of 10.7
percent quarter to quarter and a significant downturn in the
Mexican automobile industry of 11.2 percent in unit production
produced the most significant impact on revenues. Consolidated
EBITDA was $62.9 million for the second quarter of 2003, compared
to $74.5 million in the second quarter of 2002, impacted by
restructuring and personnel reduction costs of $2.2 million.
(This non-GAAP measure is not a measure of operating results, but
rather of the company's ability to service debt. It should not be
construed as an alternative to either (i) operating income or
(ii) cash flows from operating activities. It is defined as
operating income plus depreciation and amortization.)
Revenues from consolidated operations for the first six months of
2003 were $440.1 million, compared to $463.7 million for the same
period of 2002. Consolidated EBITDA was $116.8 million for the
first six months of 2003, compared to $137.2 million in the same
period of 2002.

The company reported net income of $37.0 million, or
approximately 65 cents per share in the second quarter which
includes $60.8 million from the sale of its 51 percent interest
in TMM Ports and Terminals to SSA Mexico, net of expenses and
taxes. Year-to-date net income was $9.1 million, exceeding the
prior year's period by approximately $1.1 million, or two cents
per share.

In the company's Specialized Maritime division, offshore business
segment revenues decreased in the second quarter due mainly to a
reduction of chartered vessels in the spot market. In July, this
division added four vessels. In the second quarter, car carrier
volumes decreased dramatically in the Caribbean and Pacific
services. The company decided to withdraw from these operations
at the end of second quarter, focusing instead on integrated land
services in Mexico. Product Tankers and tugboat revenues showed
improvement quarter-over-quarter. Parcel tankers revenues
increased 4.9 percent and gross profit increased 25.6 percent
quarter-over-quarter, due mainly to the incorporation of an
additional vessel and increased average cargo, as well as product
mix improvement.

TMM's Logistics division revenues decreased in the second quarter
compared to the same period of 2002, due to peso devaluation and
a slowdown of the automobile industry in Mexico. However,
operating profit and operating margin increased due to reduction
in equipment leasing and maintenance costs, improvement in the
cargo freight balance at Nuevo Laredo Cargo from 50 percent in
the second quarter of 2002 to 96 percent in the same quarter of
2003, and higher volumes in the Roadrailer(R) division. This
division added 150 RoadRailer units in June and is currently
operating 350 units. Volume for this product category increased
by 43.4 percent quarter over quarter.

In the Ports and Terminals division, revenues decreased during
the second quarter of 2003 due mainly to a decrease in automobile
activity in Acapulco and a 27.2 percent reduction in cruise ship
activity.

Javier Segovia, president of TMM said, "Sluggish economic
activity and peso depreciation of 14.4 percent, compounded by an
overall decline of 9.3 percent in automobile sector activity,
produced general negative growth in the first six months of 2003
in all product areas, with the exception of TMM Ports and Tex-
Mex. Reductions in SG&A continued, and we intend to meet our goal
of a $23 million running rate in SG&A.


ASSET SALES

On April 22, 2003, the company announced it had entered into
agreements to place its interest in Grupo TFM ("TFM") under
common control with Kansas City Southern (KCS) for $200 million
in cash and 18 million shares of KCS common stock. TMM will
receive an additional cash payment, not to exceed $180 million,
upon the successful completion of certain events.

As part of the transaction, KCS will assume the outstanding
contingent obligations of TMM to purchase shares of TFM held by
the government of Mexico upon exercise of a put valued at
approximately $480 million as of December 31, 2002. The combined
companies of TFM and KCS will be renamed NAFTA Rail and will
continue to trade on the NYSE. At the closing, Jose Serrano,
Chairman of TMM, will remain Chairman of TFM and become Vice
Chairman of NAFTA Rail. Both Mr. Serrano and Javier Segovia,
president of TMM, will become members of the NAFTA Rail Board of
Directors.

Once the transaction is closed, the results of TFM will no longer
be included in TMM's consolidated financial statements, including
approximately $993 million of TFM's outstanding debt (net of
TFM's cash) as of December 31, 2002.

The transaction requires approval by the stockholders of KCS and
the stockholders and bondholders of TMM and certain governmental
approvals, including approval by the Mexican Foreign Investment
Commission. The company is in discussions with advisors for the
bondholders regarding approval of the KCS transaction and a
restructuring of TMM's outstanding public debt. TMM expects to
hold a shareholder meeting in August to vote on the transaction.
There is no assurance that the company will be able to obtain the
required consents from its bondholders, or that TMM shareholders
will approve the transaction.

Approval from the United States Surface Transportation Board
("STB") for the acquisition of the Tex-Mex Railway by KCS and
from the Foreign Investment Commission for the acquisition of TFM
is pending. As previously reported, the Mexican Competition
Commission has provided formal written notice of its approval of
the transactions under the Acquisition Agreement. This approval
will remain valid until September 20, 2003. If the transaction is
not completed by this date, a request for extension would have to
be submitted.

The Foreign Investment Commission informally requested additional
information from the parties in connection with its consideration
of the transaction and requested an extension of the time to
provide its determination with respect to the transaction until
July 29, 2003.

On July 21, 2003, KCS filed a response to certain items set forth
in the Foreign Investment Commission's request. All of the
matters described in the filing are subject to KCS receiving an
unconditional approval from the Foreign Investment Commission.
The Foreign Investment Commission has requested, and KCS and TFM-
TMM have agreed to, an additional extension of the time period
until August 12, 2003. Under the Acquisition Agreement, it is a
condition to both TMM's and KCS's obligations to complete the
transaction that the approvals by regulatory agencies whose
approval is required, including the Foreign Investment
Commission, do not impose conditions that, in the aggregate, are
reasonably likely to result in a material adverse effect on KCS,
TFM or TMM.

LIQUIDITY AND DEBT PROFILE

During late 2002 and early 2003, TMM presented various offers to
holders of its bonds due on May 15, 2003, and November 15, 2006,
in order to extend the maturity date of the issues through a Bond
Exchange.

After numerous extensions and amendments of the company's
exchange offer, with the goal of encouraging its creditors to
grant TMM the necessary time to finalize the sale of assets and
be able to fulfill its obligations, the company was unable to
obtain the percentage of support required for the Bond Exchange
to be completed on terms that were commercially reasonable for
the company.

The company remains committed to honoring its financial
obligations while preserving its businesses, and has re-initiated
the negotiation process with its creditors, engaging Miller,
Buckfire, Lewis and Ying LLC to assist in the restructuring of
the company's debt. With the company's support, an informal
committee of holders of its Notes has been formed. The committee
is now represented by approximately $240 million of principal of
the Notes. The law firm of Akin, Gump, Strauss, Hauer & Feld LLP,
and the financial advisor of Houlihan Lokey Howard & Zukin have
been retained to represent the committee.

In the first six months of 2003, TMM reduced its financial
obligations by approximately $58.9 million and TFM reduced its
debt by approximately $56.8 million in the same period.

VAT LAWSUIT

On July 9, 2003, TFM was formally notified by a three-judge panel
of the Court of the First Circuit ("Circuit Court") of its June
11, 2003, judgment, which granted TFM constitutional protection
("Amparo") against the ruling of the Federal Tribunal of Fiscal
and Administrative Justice ("Fiscal Court") issued on December 6,
2002, which had denied TFM the right to receive the Value Added
Tax (VAT) refund. TFM initiated its claim for the VAT refund in
1997.

The Circuit Court's judgment ordered the Fiscal Court to vacate
its December 6, 2002, resolution, and to issue a new resolution
following the guidelines of the Circuit Court's judgment. The
Circuit Court found that the VAT refund certificate had not been
delivered to TFM, and confirmed that TFM has the right to receive
the VAT refund certificate. The Circuit Court's ruling states
that the Fiscal Court's decision denying delivery of the VAT
refund certificate to TFM violated the law, and it instructs that
the VAT reimbursement certificate be issued to TFM on the terms
established by Article 22 of the Federal Fiscal Code in effect at
that time, in 1997.

As a result of this ruling, the case has been remanded to the
Fiscal Court, and TFM believes that the guidelines contained in
the Circuit Court's decision are clear. However, TFM cannot be
certain of the final terms of the new resolution to be issued by
the Fiscal Court. In addition, a third party claim or legal
action could be brought against TFM as a consequence of the new
ruling to be issued by the Fiscal Court in compliance with the
judgment of the Circuit Court. Should such an action or claim be
brought against TFM, TFM believes it would have sufficient legal
defenses. As of Monday, it is not possible to determine when the
Fiscal Court will issue its new ruling, nor when TFM is likely to
receive the VAT refund.

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

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

CONTACT:  Grupo TMM
          Jacinto Marina, 011-525-55-629-8790
          jacinto.marina@tmm.com.mx

                  or

          Brad Skinner (IR), 011-525-55-629-8725
          brad.skinner@tmm.com.mx

                  or

          DRESNER CORPORATE SERVICES
          Kristine Walczak, (IR, analysts and media)
          312-726-3600
          kwalczak@dresnerco.com

              or

          PROA STRUCTURA
          Marco Provencio, 011-525-55-629-8758
          mp@proa.structura.com.mx


SAVIA: 2Q03 Results Show Weaker Numbers
---------------------------------------
-- Savia and Fox Paine & Company, LLC entered into definitive
agreements to acquire Seminis. The overall transaction has a
total enterprise value in excess of US$650 million.

REPORTED RESULTS

Savia S.A. de C.V. (BMV:SAVIA) (NYSE:VAI) announced Monday its
results for the second quarter of 2003.

Consolidated Net Sales

Consolidated net sales were US$154 million, a decrease of 7%
compared to the same period last year. This reduction is
primarily due to a decrease in the operations of Bionova at
Culiacan, Sinaloa. Of the reported sales, 45% were denominated in
dollars, 23% in euros, 17% in mexican pesos and 15% in other
currencies.

Consolidated Operating Income

Consolidated operating income was US$4 million, a reduction of
20% compared to the same period last year. The reduction was
mainly a result of the decrease in sales above mentioned as well
as an increase in Seminis' operating expenses caused mainly by
reserves for severance payments. The operating cash flow was 9
million dollars, 12% less than the figure reported on the second
quarter 2002.

Consolidated Net Income

Majority net loss was US$7 million, which represents a variation
of US$19 million in comparison to the majority net income of
US$11 million reported on the second quarter 2002. Consolidated
net loss was US$7 million, a decrease of 150% compared to the
consolidated net income reached in the same period last year.
This variation is mainly due to a negative impact in the exchange
income.

SECOND QUARTER RESULTS 2003 FOR THE MAIN SUBSIDIARIES

Seminis

Seminis reported total sales of US$113 million, an increase of 4%
compared to the sales reached in the same period last year. Its
operating gross profit was US$71 million, which represents 63% of
net sales. The operating income was US$12 million, an increase of
US$1 million compared to the figure reported in the second
quarter 2002. The operating cash flow reached US$15 million, an
8% of improvement over the reported in the same period last year.

Bionova

Total sales of Bionova were US$34 million, a reduction of 24%
compared to the same period last year. This reduction is mainly
due to a decrease in the operations at Culiacan, Sinaloa.
Operating loss was US$1 million; this represents a recovery of
87% compared to the reported loss in the second quarter 2002.

CONSOLIDATED RESULTS FOR THE FIRST SEMESTER 2003

Consolidated Net Sales

The consolidated net sales were US$352 million, a decrease of 8%
in comparison to the same period last year. This reduction was
principally a result of the decrease in the operations of Bionova
at Culiacan, Sinaloa. Of the reported sales, 44% were denominated
in dollars, 26% in euros, 14% in mexican pesos and 16% in other
currencies.

Consolidated Operating Income

Consolidated operating income reached US$43 million, a figure
slightly below to that reported in the first semester 2002. The
operating cash flow was US$53 million, which represents 15% of
net sales.

Consolidated Net Income

During the reported period, consolidated net income was US$15
million, a reduction of 57% related to the first semester last
year. Majority net income decreased a 75% reaching US$5 million
compared to US$21 million reported on the same period last year.
This reduction is mainly the result of the negative impact of the
exchange income and deferred taxes.

FIRST SEMESTER 2003 RESULTS FOR THE MAIN SUBSIDIARIES

Seminis

During first semester 2003, Seminis reached total sales of US$273
million, an increase of US$7 million related to the same period
last year. Operating gross profit was US$172 million, which
represents a 63% of net sales. The operating income was US$53
million, a similar level to that reported in the same period last
year. The operating cash flow totaled US$60 million.

Bionova

Bionova reported total sales of US$61 million, a decrease of 33%
in comparison to the same period last year. This is a result of
the reduction in the operations at Culiacan, Sinaloa. The
operating net loss had a recovery of 39% related to the loss
reported the first semester 2002. This recovery is mainly a
result of a reduction in the operating expenses.

RELEVANT EVENTS

Savia and Fox Paine & Company entered into definitive agreements
to acquire Seminis.

Seminis announced on June 2nd, 2003 that it has entered into a
definitive merger agreement with entities related to Savia, S.A.
de C.V. pursuant to which certain Savia related parties will
acquire all of the outstanding shares of Seminis, the world's
largest developer, producer and marketer of fruit and vegetable
seeds. Public holders of approximately 15.8 million Seminis
shares will receive $3.78 per share in the merger. Immediately
following the merger, certain Savia related parties will sell to
certain investment funds managed by Fox Paine & Company, LLC, a
San Francisco based private equity firm, a number of the Seminis
shares they will then own, representing approximately 75% of the
Seminis common shares, following completion of the transactions,
for $3.40 per share in cash. Certain entities affiliated with
Alfonso Romo Garza, Seminis' and Savia's Chairman and Chief
Executive Officer, will receive co-investment rights to purchase,
subject to certain conditions, up to 34% of Seminis following the
merger. Stockholders of Seminis representing in excess of 85% of
the currently outstanding voting power of Seminis have entered
into agreements to vote in favor of the merger. Savia
shareholders provided their approval at a shareholder meeting
held on April 30, 2003.

The overall transaction has a total enterprise value in excess of
$650 million. The $3.78 per share price to Seminis' public
stockholders represents a premium of 51% based on Seminis'
closing price of $2.51 on December 13, 2002, the last closing
price prior to the public announcement of the Savia letter of
intent with Fox Paine regarding the overall transaction.

The Seminis Board of Directors approved the merger agreement
after receiving the unanimous recommendation of a special
committee of independent directors, which was formed following
the announcement of the December 13, 2002 letter of intent
between Savia and Fox Paine.

As part of the transaction, immediately prior to the consummation
of the merger, Savia will exchange its Seminis Class C preferred
shares for approximately 37.7 million shares of Seminis common
stock, after which, the total number of outstanding Seminis
common shares will be approximately 101.7 million. Savia expects
to distribute approximately $0.53 per share to its shareholders
from the proceeds of its sale of Seminis shares to Fox Paine. In
addition, a portion of the proceeds will be used by Savia to
settle and repay all of its currently outstanding indebtedness.

Existing management will continue to run the Company, with Mr.
Romo serving as Chairman and Chief Executive Officer and Dexter
Paine, President of Fox Paine, serving as Vice Chairman of
Seminis.

The transaction is expected to be completed during the third
quarter for the present year and is subject to certain conditions
including the approval of the Seminis' shareholders, the
availability of financing and certain regulatory approvals.

Savia obtains waivers to Syndicated Loan Agreement.

On May 20, 2003 Savia reached an agreement related to the
Syndicated Loan Agreement by which the maturity date was extended
until September 30, 2003 and obtained waivers to some financial
covenants included in such agreement.

Savia (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.

Fox Paine & Company, LLC (www.foxpaine.com) manages investment
funds in excess of US$1.5 billion, providing equity capital for
corporate acquisitions, company expansion and growth programs and
management buyouts. The Fox Paine funds are managed on behalf of
over 50 leading international financial institutions, including
major governmental and corporate pension systems, Fortune 100
companies, major life and property & casualty insurance and
reinsurance companies, money center and super regional commercial
banks, investment banking firms, and university endowments. Fox
Paine was founded in 1997 by Saul A. Fox, a former general
partner of Kohlberg Kravis Roberts & Co., and W. Dexter Paine,
III, a former general partner of Kohlberg & Co.

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, Monterrey
          Investor Relations:
          Francisco Garza
          Phone: (81) 81 73 55 00
          Email: fjgarza@savia.com.mx


TV AZTECA: Announces Record 2Q03 Results; EBITDA, Net Up
--------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish language television programming
in the world, reported Monday second quarter record EBITDA of
Ps.878 million (US$84 million), up 5% compared with Ps.839
million (US$80 million) in the same period of 2002. EBITDA margin
rose 400 basis points to a record of 49%.

"During the quarter we managed to further squeeze operating
efficiencies and placed profitability at its highest level for a
second quarter in five years," said Pedro Padilla, Chief
Executive Officer of TV Azteca. "In addition to our permanent
cost management, we set the basis for further efficiencies
through technology-intensive processes within our production
activities that contributed to achieve, once again, world-class
margins."

"On the strategic front, we started with our six year plan for
uses of cash, by means of a US$125 million distribution to
shareholders in June, and sticking to our schedule, we are
already working on alternatives to reduce TV Azteca's outstanding
indebtedness during 2004, at the time we further advance in our
program for upcoming distributions," added Mr. Padilla.

Second Quarter Results

Net sales decreased 4% to Ps.1,795 million (US$172 million), from
Ps.1,879 million (US$180 million) for the same period of 2002.
Total costs and expenses decreased 12% to Ps.917 million (US$88
million), from Ps.1,040 million (US$100 million) for the same
quarter of last year. As a result, the company reported EBITDA of
Ps.878 million (US$84 million), 5% higher than Ps.839 million
(US$80 million) in the second quarter of 2002. Net income for the
quarter was Ps.550 million (US$53 million) compared with Ps.47
million (US$5 million) for the same period of 2002.

On a pro forma basis, excluding revenue and costs related with
the political advertising for the July 6, 2003 elections, as well
as revenue and costs in connection with the 2002 Soccer World
Cup, recorded in 2Q03 and 2Q02, respectively, net sales and
EBITDA grew 4%.

Revenue related with political advertising during 2Q03 was Ps.105
million (US$10 million) and costs were Ps.17 million (US$2
million). Sales from the 2002 Soccer World Cup were Ps.261
million (US$25 million) and costs Ps.178 million (US$17 million).

Net Sales

The 4% decrease in net sales primarily reflects the lower revenue
obtained from political advertising during the quarter, compared
with the sales related to the 2002 Soccer World Cup in the same
period a year ago.

Second quarter net revenue includes programming exports of Ps.44
million (US$4 million), similar to Ps.46 million (US$4 million)
of the second quarter of 2002. TV Azteca novelas Enamorate, La
Duda and Como en el Cine, as well as our single-episode dramatic
series Lo que Callamos las Mujeres, sustained their high foreign
demand.

"Our high quality programming captivates large audiences in
Mexico and in important markets worldwide," commented Mario San
Roman, Chief Operating Officer of TV Azteca. "Our marketing
approach to programming permits our audiences to closely identify
themselves with our content, which reflects the thoughts,
emotions and behavior of large viewerships in dozens of
countries."

During the quarter, TV Azteca also reported content and
advertising sales to Todito.com of Ps.38 million (US$4 million),
and Ps.28 million (US$3 million) in advertising sales to Unefon.
In the second quarter of 2002, sales to Todito and Unefon were
Ps.33 million (US$3 million) and Ps.19 million (US$2 million),
respectively.

Strictly adhering to the advertising contract between Unefon and
TV Azteca, during the second quarter Unefon made a Ps.29 million
(US$3 million) cash payment to the company for advertising
purchased in the prior three-month period. Additionally, Unefon
paid Ps.56 million (US$5 million) in cash, which corresponds to
the first of four semiannual installments coming from deferred
payments for television advertising made prior to 2003.

Pursuant to the advertising contract between Unefon and TV
Azteca, starting in 2003 Unefon pays cash for current television
advertising. The payments are made within the following month
after the quarter ads are purchased. In addition, according to
the contract, during 2003 and 2004 Unefon will pay cash for the
accumulated advertising purchases prior to 2003 -- which payment
was deferred -- in four semiannual installments. At the end of
the second quarter, Unefon's accumulated deferred payments were
Ps.137 million (US$13 million).

During the quarter, barter sales were Ps.49 million (US$5
million) compared with Ps.35 million (US$3 million) in the same
period of the prior year. Inflation adjustment of advertising
advances was Ps.47 million (US$5 million), compared with Ps.40
million (US$4 million) of the second quarter of 2002.

Costs and Expenses

The 12% decrease in second quarter costs and expenses resulted
from a 16% reduction in production, programming and transmission
costs to Ps.676 million (US$65 million) from Ps. 801 million
(US$77 million) in the prior year period, as well as from a 1%
increase of administration and selling expense to Ps.241 million
(US$23 million) from Ps.239 million (US$23 million) in the same
quarter a year ago.

Reduction in production, programming and transmission costs
primarily results from the lower costs associated with the
transmission of the political elections compared with the costs
related to the 2002 Soccer World Cup, as well as to the company's
effective cost control strategies.

"We never stop in our efforts to build further efficiencies in
our content production process," said Carlos Hesles, Chief
Financial Officer of TV Azteca. "This quarter we complemented our
ongoing cost controls with the implementation of state-of-the-
art, non-linear editing systems in all of our production
departments, further saving time and equipment in program editing
operations."

The marginal increase in administrative and selling expense
reflects controlled personnel and operating expenses. Compared
with the prior quarter, administrative and selling expense
decreased 8%.

EBITDA and Net Income

The 4% decrease in net revenue combined with the 12% reduction in
total costs and expenses resulted in EBITDA of Ps.878 million
(US$84 million), up 5% compared with Ps.839 million (US$80
million) a year ago. The EBITDA margin was 49%, 400 basis points
above the 45% posted in the prior year period. EBITDA and EBITDA
margin reached their highest second quarter levels in five years.

Second quarter net income increased 12 times to Ps.550 million
(US$53 million), compared with Ps.47 million (US$5 million) for
the same period of 2002. The increase in net income was primarily
influenced by an Ps.80 million (US$8 million) exchange gain
following a 3% peso appreciation against the dollar during the
quarter, compared with a Ps.351 million (US$34 million) exchange
loss resulting from a 10% depreciation of the peso in the same
quarter of 2002.

TV Azteca noted its solid financial results translate into robust
free cash generation, and that the company is on track to meet
its targeted creation of free cash of US$125 million during 2003.

Uses of Cash

On June 30 the company made a US$125 million cash distribution to
shareholders, equivalent to a 10% yield based on the closing
price of the ADR as of June 27, 2003.

The company stated the US$125 million distribution is the start
up of its previously announced plan to allocate a substantial
portion of TV Azteca's expected cash generation within the next
six years, to gradually reduce the company's outstanding debt by
an amount of approximately US$250 million, as well as to make
distributions to shareholders above US$500 million within the
six-year period.

On April 30, TV Azteca shareholders approved another US$15
million distribution to be made on December 5. Additionally, the
company is working on alternatives to reduce TV Azteca's
outstanding indebtedness during 2004, and at the same time, it is
further advancing in its program for upcoming distributions.

Azteca America

During the quarter Azteca America, the company's wholly-owned
network focused on the U.S. Hispanic market, increased its over-
the-air coverage to 63% of the U.S. Hispanic households from 56%
at the close of the prior quarter, with no associated equity
investment from TV Azteca. This was achieved through the
additions of six stations in the states of Arizona, California,
Florida and Oklahoma.

Azteca America has 26 affiliate stations, and covers 12 of the
top 15 U.S. Hispanic markets. Cable carriage is present in nine
markets, equivalent to 28% of U.S. Hispanic households.

On July 1, Azteca America began to operate the Los Angeles
television station KAZA-TV under the terms of a previously
announced three-year local marketing agreement (LMA) with Pappas
Telecasting Companies.

According to the LMA, Azteca America is entitled to retain all
advertising revenue generated from the programming it supplies to
the station. Azteca America will pay an annual LMA fee of US$15
million to Pappas Telecasting, which will be offset dollar-for-
dollar by the interest payable on a note of US$129 million owed
by Pappas to TV Azteca, in the proportion the note is not repaid.

Unefon

During the quarter Unefon, the Mexican mobile telephony operator
focused on the mass market, 46.5% owned by TV Azteca, reached
settlement and signed a new supply contract with Nortel Networks,
its main vendor equipment supplier and lender. Unefon also
reduced indebtedness and extended its debt maturity to 2013.

The company stated that the agreements provide Unefon with a
stronger capital structure that translate into long-term
viability and an increasingly solid competitive position, which
make Unefon a company not dependent on TV Azteca for growth.

TV Azteca noted that its board had previously approved a spin off
of Unefon in the form of a distribution of Unefon shares to TV
Azteca shareholders, once Unefon resolved its dispute with
Nortel. On July 22, the board of directors unanimously agreed to
postpone the spin off of Unefon, until management -- taking into
consideration market's feedback -- finds a fiscally efficient
alternative to separate it, which does not jeopardize its plan
for uses of cash, and generates value.

The Unefon spin off is technically a distribution to shareholders
that limits TV Azteca's capacity for future fiscally efficient
cash distributions to shareholders. The size of TV Azteca's
fiscal value of paid-in capital -- which determines the capacity
for fiscally efficient distributions -- cannot support both, the
expected distributions within the six-year plan for uses of cash
and the spin off.

TV Azteca's management will explore fiscally efficient
alternatives to separate Unefon from TV Azteca in the future.


Company Profile

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

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

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

               or

          Omar Avila
          +011-5255-3099-0041
          oavila@tvazteca.com.mx

          Media Relations: Tristan Canales
          +011-5255-3099-5786
          tcanales@tvazteca.com.mx
          Web site:  http://www.tvazteca.com.mx


VITRO: Reports Improved Second Quarter 2003 Results
---------------------------------------------------
CONSOLIDATED RESULTS

- Given the slow economic activity and associated low demand
during the first five months of the year, consolidated sales
declined by 5.5 percent YoY to US$575 million and EBITDA 25.5
percent to US$87 million. However, June's results reflected
improvement over all three business units.

- A 9.5 percent and 8.3 percent increase in sales and EBITDA
respectively, QoQ, supported an improving estimated trend for the
rest of the year

- An increase of US$12 million in energy and raw material costs,
as well as a reduction in inventories affecting profitability by
US$15 million YoY , undermined savings generated by lower
Selling, General & Administrative Expenses along with ongoing
cost reduction efforts

- Consolidated debt continued to decrease reaching US$1,442
million as of June 30, 2003, declining 5.8 percent QoQ

- Consolidated net income increased by US$65 million YoY,
resulting in US$5 million for 2Q'03 due to lower financing costs
from a non cash exchange gain compared with an exchange loss
during 2Q'02

Flat Glass

- Sales were US$276 million, down 2.1 percent YoY and, in line
with our forecast, EBITDA declined by 14 percent to US$36 million

- The scheduled major maintenance in one of Monterrey's floats,
did not affect the business unit's customer requirements, as
production was partially replaced with lower margin, third party
products. However, the inventory reduction associated with this
maintenance, as well as lower margins of outsourced products
contributed to the decline in profitability. Other factors
affecting profitability include the increased higher energy costs
YoY

- Vitro CristalGlass, our Spanish subsidiary, together with the
recently acquired Portuguese operation, increased sales YoY by
over 46 percent reflecting a positive construction environment

- The Company continues to grow in the auto replacement segment,
which YTD represents 65 percent of total automotive glass sales

- Weaker demand from OEM auto producers resulted in low capacity
utilization in this segment, affecting both sales and EBITDA

- For 2003, dividends will not be paid in the Vitro Plan joint
venture thus allocating resources to the capital expenditures of
ongoing projects

Glass Containers

- Sales were down 9.3 percent to US$230 million and EBITDA
declined 31.1 percent to US$41 million

- Colder than expected weather continued to affect the beverage
segment, even though June's results reflect an inflection in this
trend

- Lower demand in the food segment as well as scheduled customer
inventory realignment negatively impacted sales

- The business unit is partially compensating such decreases with
the development of new products that are consistent with the
strategy to expand in niche markets. For example, the non-
returnable 8 ounce Coca Cola bottle has increased, in volume
terms, 113 percent YTD

- Exports increased 6.6 percent YoY driven mainly by the wine and
liquor segments

- Profitability was affected by the resulting low capacity
utilization, a less profitable sales mix and higher YoY energy
and raw materials costs

Glassware

- Sales declined 8.5 percent to US$64 million and EBITDA 36.2
percent to US$12 million

- Lower sales reflected weak demand in the retail segment within
the US market and the Mexican industrial segment

- Lower YoY capacity utilization, a less profitable sales mix,
higher YoY energy and raw materials costs, and the business
unit's strategy to lower inventories as a mean to increase cash
flow reduced EBITDA

- This situation was partially compensated in June by an increase
in the export trend

CONSOLIDATED RESULTS

Sales
Consolidated net sales for the quarter declined 5.5 percent YoY
or US$33 million to US$575 million. In addition to bad weather
and inventory reduction programs conducted by some of our major
customers in the Glass Containers operation, sluggish economic
activity in the US and Mexico continued to be the single most
important factor affecting Vitro's three business units. June's
results, however, indicate improvement expected to be carried on
through the second half of the year.

EBIT and EBITDA
Consolidated EBITDA for the quarter decreased YoY by 25.5 percent
to US$87 million. EBIT fell 36.5 percent. Soft demand, which
decreased capacity utilization, reduced fixed cost absorption.
The Company's on going strategy to lower inventories and focus on
cash flow, also affected profitability by approximately 50
percent of the total YoY decrease in EBITDA, or US$15 million.

Cost of sales increased YoY across all business units. This is
mainly the result of increases of 20 percent in energy costs,
which has affected the Company 's results by US$8 million YoY and
US$17 million YTD, and raw materials costs by approximately 4.8
percent or US$4 million YoY, and YTD US$2.3 million. This two
factors alone, more than offset cost reduction and productivity
programs. It is worth mentioning that our cost reduction and re-
organizational programs implemented over the last year, reflect a
decrease in Selling, General and Administrative expenses of 15.3
percent or US$18 million YoY, and US$28 million YTD.

Financing Cost
For the quarter, the Company recorded a consolidated financing
cost of US$15 million, compared with US$150 million for the same
quarter of 2002. The positive effect was due to a non-cash
exchange gain of US$15 million during 2Q'03 compared with a non-
cash exchange loss of US$129 million during 2Q'02. The exchange
gain was generated by the 2.4 percent appreciation of the Mexican
peso against the U.S. dollar over the 2003 April-June period.

The weighted average cost of debt ("WACD") for the quarter was
8.8 percent, higher than the same period of 2002, which was 8.6
percent. The increase, which translates in higher interest
expenses YoY, is mainly due to an interest cap derivative
transaction and to the outstanding funds related to the
Certificados Burs tiles Issues, which were not applied until the
end of 2Q03, affecting average debt balances during the quarter.
Such increases were partially compensated by a general decrease
in interest rates, both for US dollar and Mexican peso
denominated rates. WACD is calculated by actual interests paid to
banks and the market.

Taxes
Deferred income tax comparisons YoY were affected by higher tax
losses in 2002 from the Company's subsidiaries due to the
devaluation of the Mexican peso against the US Dollar during such
period.

Consolidated Net Income
Consolidated net income increased by US$65 million YoY, resulting
in US$5 million for 2Q'03, compared with a consolidated net loss
of US$60 million for the same period in 2002. This improvement
resulted from higher total financing costs during 2002, generated
by noncash items. Other income loss is attributable to the write-
off of non-productive assets within the construction segment of
Flat Glass.

Capital Expenditures
In the second quarter capital expenditures totaled US$48 million
primarily at the Flat Glass and Glass Containers operations. Flat
Glass accounted for 54 percent or US$26 million, mainly for the
50/50 joint venture at Mexicali in conjunction with AFG
Industries, the U.S. subsidiary of Asahi Glass Inc. as well as
the refurbishment of Monterrey's (VF2) furnace. 40 percent or
US$19 million was spent in Glass Containers for maintenance
purposes in both Mexican and Central American facilities.

CONSOLIDATED FINANCIAL POSITION

Consolidated outstanding debt as of June 30, 2003 of US$1,442
million considers the netting of reserve and collection accounts
created in connection with the syndicated facilities of Flat
Glass and Glass Containers. Such amounts were registered in
previous quarters as "long-term restricted assets" and totaled
US$44 million as of June 30, 2003. Since the sole purpose of
these investments is to pay down debt related with such
syndicated facilities, the Company is adjusting its numbers, in
accordance with Mexican GAAP, to net the effect of the reserve
and collection accounts with its consolidated debt. As of 2Q'03,
the Company reclassified historical figures to reflect the
netting effect of such accounts. For ease of comparison, the
following table shows the above mentioned effect for the last
quarters. The Glass Containers reserve and collection accounts,
for a total amount of approximately US$22 million were
reclassified to be netted from August 2001 and thereafter. The
Flat Glass reserve account for approximately US$23 million was
netted starting February 2003, when the syndicated operation was
closed.

Consolidated debt decreased QoQ by US$90 million or 5.8 percent,
from US$1,531 million as of March 31, 2003 to US$1,442 million on
June 30, 2003, derived mainly from usage of cash.
Financing activities as of June 30, 2003 consider the sale of
Vitro America's invoices to a new off-balance securitization
agreement with Wachovia Bank for a notional amount of US$40
million from which the Company drew down US$33 million. Such
resources were applied to pay down debt after the end of 2Q'03.
It also considers a bridge loan in connection with the
construction of the Flat Glass facility at Mexicali for US$11.2
million.

Debt Profile as of June 30, 2003

- The Company's average life of debt is currently 3.1 years.

- 44 percent of debt maturing in the period July 2003 - June
2004, approximately US$198 million, is related to trade finance.

- Revolving debt, including trade related, accounts for 50
percent of total short term debt. This type of debt is usually
renewed within periods of 28 to 180 days.

- Amortizations of long term debt are mostly related with the
syndicated facilities at the three businesses. The Company is
working on refinancing maturities at Glass Containers and
Glassware.

- Market debt is related with short term Euro Commercial Paper
and Certificados Bursatiles that the Company uses on a regular
basis to cope with short term needs and as a way to maintain its
presence in these markets.

- Market maturities during 2007 include the Yankee Bond and
Medium Term Notes which were initially issued in UDI's and are
currently swapped to pesos.

- Market maturities from 2008, 2009 and thereafter, consider the
Certificados Burs tiles.

Cash Flow
Reductions in working capital needs for the quarter resulted
mainly from a US$33 million off-balance securitization
transaction at Vitro America, which was partially compensated by
an increase in accounts receivables; as well as reductions in
inventory balances across all three business units. Dividends
paid for the period corresponded to minority interests from joint
venture partners in the U.S. and majority interests. Cash taxes
were lower YoY due to exchange losses and tax refunds. Free cash
flow was allocated to the Company's Pension Fund Plan and to pay
deferred charges and severance payments.


Flat Glass (49 percent of Consolidated Sales)

Sales

Flat Glass consolidated net sales decreased 2.1 percent YoY as
demand in both Mexico and the US declined. The domestic
construction industry was affected by the Easter and Mexican
Labor Day holidays, which contributed to lower demand volumes
resulting in a 6.7 percent decline in domestic sales.
Nonetheless, the impact was somewhat offset by a 13.5 percent YoY
increase in average prices during the quarter in USD terms. Such
increase reflects a 30 percent YoY growth in sales of value added
products such as duovent windows. Our U.S. subsidiary, Vitro
America, posted a decrease in sales YoY by 3.0 percent. However,
it shows a positive trend as QoQ sales increased by 8 percent.

Vitro's European operations, rose 46 percent supported by strong
growth in the Spanish construction market and the incorporation
of Vidraria Chaves, our Portuguese subsidiary which was acquired
on December of 2002 and accounted for approximately 15 percent of
the increase.

The auto replacement market, which now accounts for approximately
65 percent of the automotive glass sales, experienced positive
results. Domestic and export replacement sales rose by 7 percent
each. Although total volumes in the automotive segment were down,
average prices in USD terms increased YoY partially offsetting
the decline.

In the OEM automotive segment, a combination of flat sales, high
inventories and low production levels within the auto industry
affected the demand of our products. Domestic OEM sales decreased
by 13 percent YoY and export sales declined by 17 percent during
the same period.

EBIT and EBITDA
Second quarter EBIT and EBITDA decreased YoY by 9. 9 percent and
14.0 percent respectively. This decrease is mostly explained by
inventory reductions resulting from the 81-day refurbishment of
the VF2 float at Monterrey during the quarter, as well as
increases in energy costs YoY and lower margins as a result of
outsourced products. Within the auto segment, lower demand
resulted in lower capacity utilization which in turn decreased
our fix cost absorption.

European operations have helped to partially compensate the
overall decrease by reporting YoY EBIT and EBITDA increases of 18
percent and 22 percent respectively.

Lower SG&A generated YoY also helped compensate part of the
decrease in EBIT and EBITDA.
For 2003, dividends will not be paid in the Vitro Plan joint
venture thus allocating resources to the capital expenditures of
ongoing projects.

Glass Containers (40 percent of Consolidated Sales)

Sales

Consolidated net sales for the Glass Containers business unit
declined YoY by 9.3 percent to US$230 million in the second
quarter. Colder than expected weather in the US affected beverage
consumption impacting, especially indirect exports in the beer
segment.

Domestic sales fell by 13.6 percent despite strong results in the
soft drink non-returnable bottle segment. Weak demand in the
beer, returnable soft drinks and food areas affected performance.
However, exports remained strong for the second quarter, with a
6.6 percent increase in sales YoY, driven primarily by the wine
and liquor segments. Our Central American subsidiary's sales
declined YoY by 21.7 percent reflecting weaker domestic demand
and lower capacity utilization compared with last year when
Mexican operations were oversold, shifting demand to Central
America in order to continue serving our customers.

Glass Containers continues to develop new products that are
consistent with the strategy to expand in niche markets, such as
liquor, cosmetics, juices and other beverage and food items. One
of these projects was developed for Coca-Cola bottlers in Mexico,
as their non-returnable Contour package which has been introduced
in the Mexican market with outstanding results. Volumes for this
product have increased by 113 percent, from the first half of
2002 to the same period in 2003.

EBIT and EBITDA
For the quarter, EBIT and EBITDA declined YoY by 46.8 percent and
31.1 percent respectively due to the mentioned decline in sales
and lower capacity utilization which resulted in minor fixed cost
absorption. A less profitable sales mix and higher YoY energy and
raw materials costs, also affected results. We began to see
recovery in June's results as additional volumes started to
improved fix cost absorption setting the stage for a more
optimistic second half of the year. We are also aligning
available capacity to current market requirements.

Glassware (11 percent of Consolidated Sales)

Sales

YoY consolidated net sales at Glassware declined 8.5 percent to
US$64 million. Domestic sales weakened as a result of lower
demand in the industrial segment, such as packaging products for
the food industry and promotional products given as incentives by
our customers. The business unit continues to be faced with an
economy coming through a challenging period, with a war recently
concluded and a noticeable consumer apprehension. Export sales
declined by 12.5 percent YoY as a result of weaker demand from
the retail service segment.

EBIT and EBITDA
EBIT and EBITDA posted a decrease YoY of 54.3 percent and 36.2
percent , respectively, due to lower capacity utilization
generated by lower sales and a less profitable sales mix, as well
as an inventory reduction as part of our strategy to increase
liquidity. Higher YoY energy and raw materials cost also affected
results. However, June's results showed an increase in capacity
utilization from 50 percent to 60 percent QoQ as Glassware
continues its focus on value added products by joining marketing
forces with customers, targeted toward the end user.

Year End 2003 Outlook
Looking ahead to the second half of the year we remain cautiously
optimistic and base our estimates on a gradually improving US
economy that will have a positive impact on Mexico's GDP.

For Flat Glass, we expect the domestic construction market
outlook to improve based on returns from our focus on service and
a broader product line. In addition, our recently refurbished
Monterrey (VF2) furnace is operating at full capacity with
increased efficiencies and output. Expected increases in general
construction spending in Mexico should have a positive impact on
domestic flat glass demand. The U.S. commercial construction
market shall remain flat for the rest of the year.

In the automotive segment, an increase in purchase orders from
some of our OEM clients will generate additional demand of
laminated products that will result in better utilization levels
for the rest of the year.

In Glass Containers, the Company has aligned its capacity
utilization levels in anticipation of additional demand. In
addition, the forecasted launch of several other new projects set
the stage for a better second half. Higher export purchase orders
in Glassware imply an increase in capacity utilization during the
second half especially for the hotel and food service segments.
Moreover, the business unit will benefit from the seasonal demand
in the industrial segment. Expected increases in personal
consumption in both the U.S. and Mexico should also have a
positive impact on results.

Key Developments

Debt Refinancing

Vitro America's Securitization Agreement

On June 27, 2003, Vitro America, our Flat Glass subsidiary in the
U.S. established a US$40 million accounts receivable
securitization facility with Wachovia Bank to replace the former
securitization program. On June 30, 2003 it sold Wachovia US$33
million in account receivables. The proceeds from the sale of
receivables is included in the "Cash and Cash Equivalents" item
as of June 30, 2003 but were used during the first days of July
to pay down other debt.

Flat Glass financing of new facility at Mexicali

During June 2003, the Company entered into a bridge loan
agreement with ABN Amro Bank to finance the new float being built
at Mexicali in conjunction with AFG Industries, the U.S.
subsidiary of Asahi Glass Inc. The bridge loan facility is for a
total amount of US$40 million, from which US$22.4 million have
already being disbursed. Vitro's current balance in this bridge
loan is of US$11.2 million. Total financing expected for the
construction of the new float is of US$60 million, in which Vitro
participates on a 50 percent basis.

Committed Credit line at Vitro America

On June 27, 2003, Vitro America and Bank of America rolled over a
committed working capital credit facility of US$25 million for an
additional 3 years with a maturity date of June 26, 2006.

Guarantee of Anchor Glass pension fund liability

As part of the disposal of Anchor Glass Container Corp., which we
refer to as "Anchor Glass," in a transaction approved by the U.S.
Bankruptcy Court, we entered into a term sheet which contemplated
an agreement pursuant to which we would provide to the Pension
Benefit Guaranty Corporation, which we refer to as the "PBGC," a
United States governmental agency that guarantees pensions, a
limited guaranty of Anchor's unfunded pension liability. No
payments would be made under such a guaranty unless the PBGC
terminated any of the covered pension plans, and the guaranty
would be payable only to the extent the PBGC could not otherwise
recover the unfunded liabilities from the entity that purchased
Anchor's assets, which we refer to as "New Anchor." The amount of
the guaranty was originally limited to US$70 million. Under the
guaranty, payments would not begin until August 1, 2002, and
would then generally be payable in equal semiannual installments
over the following 10 years. Payments would not bear interest.
The amount and the term of the guaranty would be proportionately
reduced if the pension plans were terminated after January 31,
2002. Beginning February 2002, the guaranty would be reduced by
US$7 million semiannually until August 1, 2006, when the guaranty
would expire if the plans did not terminate. On April 15, 2002,
New Anchor filed a pre-negotiated plan of reorganization under
Chapter 11 of the U.S. Bankruptcy Code. On August 8, 2002, an
amended plan of reorganization was confirmed, pursuant to which
the plan resulting from the merger of the covered pension plans
was terminated and the obligations there under were assumed by
the PBGC in exchange for cash, securities and a commitment of
reorganized New Anchor to make certain future payments.

On June 20, 2003, the PBGC wrote us, asserting that the plan had
been terminated effective as of July 31, 2002 with an estimated
unfunded liability of US$219 million. The PBGC stated that the
value of the recovery from New Anchor and reorganized New Anchor
amounts to no more than US$122.25 million; it alleged that the
recovery that it secured in the bankruptcy was insufficient and
that an under funding in excess of the Vitro limited guaranty had
occurred.

Accordingly, in such letter, the PBGC demanded payments pursuant
to the term sheet of US$7 million on or before August 1, 2003 and
of US$3.5 million semi-annually through August 1, 2011. We intend
to contest this contingent liability. There are various issues
concerning such demand and certain defenses that may be asserted
by Vitro. Management is currently evaluating these issues and
defenses. At this point, it is not possible to reasonably
estimate the amounts that will ultimately be payable in response
to such demand. When management is able to reasonably estimate
those amounts, Vitro will establish an appropriate accounting
reserve. As of this date, Vitro has not established any reserves
in connection with such contingent liability.

EBITDA Reconciliation
EBITDA consists of operating income plus depreciation,
amortization and reserves for seniority premiums and pensions.
The concept of EBITDA is presented because some of our investors
have indicated to us that they consider it an appropriate
measurement of funds available to service our debt. EBITDA is not
intended to represent cash flow from operations as defined by
generally accepted accounting principles and should not be
considered as an alternative to net income to measure our
operating performance or to resources generated by continuing
operations as a measure of our liquidity. Because not all
companies calculate EBITDA identically, our presentation of
EBITDA may not be comparable to other similarly entitled measures
used by other companies. The following table sets forth, for the
periods indicated, the reconciliation of EBITDA to resources
generated from continuing operations of each of our business
units.

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

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

CONTACT:  Investor Relations
          Beatriz Martinez / Jorge Torres
          VITRO S.A. DE C.V.
          + (52) 81-8863-1258 / 1240
          bemartinez@vitro.com
          JTorres@vitro.com

          U.S. agency
          Alex Fudukidis / Susan Borinelli
          BREAKSTONE & RUTH INTERNATIONAL
          (646) 536-7012 / 7018
          afudukidis@breakstoneruth.com
          Sborinelli@breakstoneruth.com

          Media Relations
          Albert Chico
          VITRO, S. A. DE C.V.
          + (52) 81-8863-1335
          achico@vitro.com



=======
P E R U
=======

SIDERPERU: Net Loss Balloons to $1.97M in 2Q03
----------------------------------------------
Peruvian steelmaker Siderperu, controlled by Sider Corp.,
registered a PEN6.83-million (US$1.97mn) loss in the second
quarter of this year, compared to a loss of PEN2.58 million in
the same year-ago period. Citing a company statement to the
Conasev securities regulator, Business News Americas reports that
the Company's sales revenues increased over the two periods from
PEN94.4 million to PEN102 million.

Siderperu's plant, located in Chimbote in center-west Peru's
Ancash department, has installed capacity of around 400,000t



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

PDVSA: Executive Says 2002 Financial Results Due Next Month
-----------------------------------------------------------
Venezuela's state oil company, Petroleos de Venezuela S.A.
(PdVSA) will file its 2002 financial reports with the U.S.
Securities and Exchange Commission (SEC) in August, reports
Vheadline.Com, citing the PdVSA president Ali Rodriguez.

Mr. Rodriguez said that the company has until September 30 to
file the results but decided to file the results a month ahead of
the deadline. The company was supposed to submit the 2002
financial results last June 30. However, the company had to
request an extension as it is having difficulties completing its
books because of some problems in the information compiled in
January and February.

The executive indicated last month that the books were "almost
complete". He also said that the company is working with "utmost
dedication and seriousness" to produce the required statements.
The company is expected to post substantial losses following
instances sabotage at its petroleum installations. The company
has also recently survived a nationwide strike that cut its
output by as much as 90 percent.

"First estimates showed we had lost around $8 billion in 2002
against $3.993 billion in 2001 as the 5th largest exporter of
crude oil to world markets," said the executive as quoted by the
report.

However, he said that he remains optimistic with the company's
finances as it has been able to return to normal production
levels.

"It is probably, extremely probably, even if I cannot say with
100% certainty at this moment, but this year (2003) could
possibly show very much greater results than 2002," he said.


REPSOL: Venezuela Approves Plans For Barranca Gas
-------------------------------------------------
Spanish-Argentine oil and energy company Repsol-YPF SA (REP)
received permission from the Venezuelan government to carry out
its exploration and development plans for Barrancas gas block,
relates Venezuelan Oil Minister Rafael Ramirez on Monday.

In an effort to mitigate some of the risks the company may face
with the project, the country is allowing Reprol to sell gas from
Barrancas at US$1.50 per million BTU, which is significantly
higher than the US$0.90/mBTU being discussed for fields nearer
centers of consumption in the northern part of the country,
reports Vheadline.Com

Repsol, which holds 100 percent of the Barrabcas block, said it
will invest US$250 million during the next three years to develop
the gas block. The Company expects to have its first exploration
well drilled in October and start production by January 2006.

Repsol plans to pipe the gas to a nearby power plant. Earlier
this month, the company's officials said that an agreement with a
big private electricity company, which it refused to name, is
nearly complete.



               ***********


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
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Information contained herein is obtained from sources believed to
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