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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, April 30, 2004, Vol. 5, Issue 85

                            Headlines


A R G E N T I N A

BANCO DE GALICIA: Completes Offers, Steps Up Floating Rates Note
COMPANIA TECNICA: Reorganization Proceeds To Bankruptcy
FUSAVIM: Closes Reorganization
HECSA CO: Court Favors Creditor's Bankruptcy Petition
LACTERIA FRANCESA: Court OKs Creditor's Bankruptcy Petition

PETROBRAS ENERGIA: Registers Higher 1Q04 Sales
TELECOM ARGENTINA: Fitch Affirms 'DD' Ratings


B R A Z I L

AES CORP.: Elects Three New Directors
AES CORP: Ups Operating Income By 18% to in 1Q04
CEMIG: Board Decisions Taken at Meeting Held April 28
CEMIG: Stake Sale Not Involved In BNDES-SEB Talks
CEMIG: To Hold Auction To Sell 120MW

EMBRATEL: Telmex Deal Will Get Regulators' Approval
GERDAU: Increased Brazilian Exports Boost Performance


C H I L E

ENERSIS: ENDESA Reports ERU400M in Net Profit in 1Q04


E C U A D O R

PETROECUADOR: Adopts Measures To Raise Production


E L   S A L V A D O R

MILLICOM INTERNATIONAL: Redeems Sr Convertible PIK Notes


J A M A I C A

C&WJ: Widens the Reach of its Mobile Roaming Service


M E X I C O

ARACRUZ CELULOSE: Moody's Affirms Ratings
GRUPO ELEKTRA: Reports EBITDA of MXN827 Million in 1Q04
LUZ Y FUERZA: Financial Position Worsens
SATMEX: Needs US$50M for Satmex 6 Insurance
UNEFON: Signs SMS Deal With Telefonica


P A N A M A

BLADEX: To Redeem Preferred Shares


P E R U

*S&P Rates Republic of Peru's US$500M Bonds 'BB-'


V E N E Z U E L A

CANTV: Sees Doubled ADSL Growth

     -  -  -  -  -  -  -  -

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

BANCO DE GALICIA: Completes Offers, Steps Up Floating Rates Note
----------------------------------------------------------------
Banco de Galicia y Buenos Aires S.A., an Argentine corporation
announced Tuesday [April 27, 2004] that it has completed the
offers to holders of its 9% Notes due 2003 and Step Up Floating
Rate Notes due 2002 (together, the "Existing Notes"). The offers
were made in order to exchange holders' Existing Notes for units
in a par-for-par exchange offer and, in an optional second step
to the exchange, to receive cash, Bonos del Gobierno Nacional
due August 3, 2012, issued by the Republic of Argentina, new
securities or preferred shares of Grupo Financiero Galicia S.A.
("Grupo Galicia"), in each case, subject to proration and upon
the terms and subject to the conditions set forth in the Pricing
Supplements, dated December 23, 2003, March 18, 2004 and April
6, 2004 and in the related electronic letter of transmittal and
authorization. The offers expired at 3:00 p.m., New York City
time, Tuesday.

As of 3:00 p.m., New York City time, Tuesday, the Bank estimates
that the aggregate principal amount of debt tendered by holders
of Existing Notes and bank debt was US$ 1,327.6 million,
including US$ 313.0 million of Existing Notes. The debt being
restructured represents 98.6% in aggregate principal amount of
all Existing Notes and bank debt that is subject to the
restructuring. The Bank will accept all Existing Notes validly
tendered upon the satisfaction of the conditions to the offers.
Settlement of the offers and the bank debt restructuring is
expected to occur on May 18, 2004.

Founded in 1905, the Bank is one of the largest private-sector
banks in the Argentine financial system and a leading financial
services provider in the country. As a universal bank, through
affiliated companies and a variety of distribution channels,
Banco Galicia offers a full spectrum of financial services to
individuals and corporations.

CONTACT:  BANCO DE GALICIA Y BUENOS AIRES
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman


COMPANIA TECNICA: Reorganization Proceeds To Bankruptcy
-------------------------------------------------------
Compania Tecnica S.A., a La Plata-based company that was
undergoing reorganization, was declared bankrupt. Argentine news
source Infobae relates that the Civil and Commercial Court No. 4
of La Plata ruled that the Company is "Quiebra Decretada".

The report adds that the court assigned Ms. Silvana Diva Sosa as
receiver, who will verify creditors' proofs of claim until May
21, 2004. The court also ordered the receiver to prepare
individual reports after the verification process is completed,
and have them ready by July 6, 2004. The court also expects a
general report on the bankruptcy process to be filed on
September 3, 2004.

The case will close with the liquidation of the Company's assets
in order to repay creditors.

CONTACT: Compania Tecnica S.A.
         Calle 11 Nro. 66 A 1/2
         La Plata

         Silvana Diva Sosa, Receiver
         Calle 14 Nro. 659
         La Plata


FUSAVIM: Closes Reorganization
---------------------------------
The reorganization of Cordoba-based Fundacion para la Salud de
Villa Maria (FUSAVIM) has been concluded. Data revealed by
Infobae on its Web site indicated that the process was concluded
after the Civil and Commercial Court No. 1 of Villa Maria
(Cordoba), with assistance from Clerk No.1, homologated the debt
agreement signed between the Company and its creditors.


HECSA CO: Court Favors Creditor's Bankruptcy Petition
-----------------------------------------------------
Lorena Ocampo successfully sought the bankruptcy of construction
company Hecsa Co S.A.I.C.F.I. after Judge Ferrario of Buenos
Aires Court No. 12 declared the Company "Quiebra," reports La
Nacion.

As such, Hecsa Co will now start the bankruptcy process with Mr.
Norberto Bonesi as receiver. Creditors of the Company must
submit their proofs of claim to the receiver before July 1, 2004
for authentication. Failure to do so will mean a
disqualification from the payments that will be made after the
Company's assets are liquidated.

Ms. Ocampo sought the Company's bankruptcy after the latter
failed to pay debts amounting to US$15,329.08. Dr. Mendez
Sarmiento, Clerk No. 12, assists the court on the case, which
will culminate in the liquidation of all of its assets.

CONTACT:  Hecsa Co SAICFI
          Parana 383, piso 1§ "A"
          Buenos Aires

          Norberto Bonesi
          Avenida Juan B. Justo 5096, piso 1§ "A"
          Buenos Aires


LACTERIA FRANCESA: Court OKs Creditor's Bankruptcy Petition
-----------------------------------------------------------
Judge Sala of Buenos Aires Court No. 14 declared Lacteria
Francesa S.R.L., a distributor of milk products, bankrupt,
reports online newspaper La Nacion.

The ruling comes in approval of the bankruptcy petition filed by
the Company's creditor, Roberto Gomez, for nonpayment of
US$11,746.18 in debt.

Clerk No. 27, Dr. Aleman, assists the court on the case, which
will conclude with the liquidation of the Company's assets.

The Company's receiver, Angel Vazquez, will examine and
authenticate creditors' claims until July 1, 2004. This is done
to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the receiver
by the said date in order to qualify for the payments that will
be made after the Company's assets are liquidated.

CONTACT:  Lacteria Francesa SRL
          Lavalle 1290, piso 11§, oficina "1110"
          Buenos Aires

          Angel Vazquez
          Viamonte 1592, Piso 6§ "G"
          Buenos Aires


PETROBRAS ENERGIA: Registers Higher 1Q04 Sales
----------------------------------------------
In a statement to the local stock exchange, Argentine oil and
gas company Petrobras Energia said that most of its major
products have posted for the first quarter moderately higher
sales volumes compared with what it recorded for the same period
in 2003, Dow Jones reports.

For the January to March period, Petrobras Energia posted oil
sales of 115,200 barrels a day, up from 97,600 b/d in the same
period last year. The company also experienced a jump in its
electricity sales, selling 1,508 gigawatt-hours in the first
quarter compared with 1,354 gigawatt-hours in 2003's first
quarter.

Meanwhile, the company's natural gas and petrochemical products
sales for the period did not differ much from its 2003 first-
quarter sales. The volume for natural gas was slightly up to
274.5 million cubic feet per day from 274.1 million cubic feet
in the same period last year. For petrochemicals, 162,000 tons
were sold for the period, 2,000 tons higher than the 160,000 it
registered in the first quarter of 2003.

Petrobras Energia suffered a slight drop in its refined products
sales, selling only 110,000 cubic meters for the quarter. Last
year, the company registered first-quarter sales of 116,000
cubic meters.

The company is 98.21% owned by Petrobras Energia Participaciones
(PZE), which is in turn a unit of state-owned Brazilian energy
concern Petroleo Brasileiro SA (PBR), or Petrobras.


TELECOM ARGENTINA: Fitch Affirms 'DD' Ratings
---------------------------------------------
Fitch Ratings affirmed its international scale unsecured debt
ratings of 'DD' for Telecom Argentina S.A. (Telecom). Fitch also
maintained its national scale debt ratings of 'D(arg)' for
Telecom.

Telecom has been in default since June 2002 when it suspended
payments on its debt obligations. The company restructured a
small portion of its defaulted debt during June 2003 by
repurchasing notes with cash at a 45% discount. On Jan. 9, 2004,
Telecom announced a proposal to restructure all of its
outstanding unsecured debt under the framework of an Acuerdo
Preventivo Extrajucial (APE). The APE is an out of court
restructuring agreement governed by Argentine law that requires
a minimum participation by two-thirds of a company's creditors.
At Dec. 31, 2003, Telecom's consolidated debt totaled the
equivalent of $3.4 billion. Fitch will continue to monitor
progress of the restructuring and its ultimate effect on the
credit quality of Telecom.

During 2003, Telecom continued to take several measures designed
to mitigate the ongoing effects of Argentine economic crisis and
the unfavorable regulatory environment. These measures included
a cost-reduction program, a focus on minimizing uncollectible
accounts, and a cutback in capital expenditures. At the same
time, the company benefited from a partial recovery in demand
for telecommunications services, particularly in the wireless
segment. Consequently, the company was able to boost EBITDA
margins to 53% during 2003 from 47% during 2002. The recovery of
profitability margins coupled with the suspension of debt
payments have allowed Telecom to strengthen its cash balances to
$858 million at Dec. 31, 2003. A large portion of these cash
balances are expected to be used to complete the debt
restructuring process.

Notwithstanding the recent improvements in domestic demand,
Telecom continues to face significant regulatory risk since
local tariffs remain frozen. In addition, Telecom remains
exposed to foreign currency fluctuations because most of its
revenues are peso-denominated while its debt is largely foreign
currency-denominated. Over the medium to long term, improvements
in Telecom's credit quality will hinge upon a successful
completion of its debt restructuring, sustained recovery of the
Argentine economy and telecommunications services demand, and
tariff relief as part of a sustainable regulatory framework for
the fixed line business.

Telecom is one of the largest telecommunications providers in
Argentina, with 3.7 million fixed lines in service (45%
estimated market share) and 2.6 million wireless subscribers
(33% estimated market share) and 200,000 internet subscribers.
Telecom is 55% owned by Nortel Inversora, which in turn is 50/50
owned by Telecom Italia and Grupo Werthein; 5% owned by
employees; and the remainder is publicly traded.

CONTACT: Guido Chamorro +1-312-368-5473, Chicago
         Dolores Teran +5411 4327-2444, Buenos Aires

MEDIA RELATIONS: James Jockle +1-212-908-0547, New York



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

AES CORP.: Elects Three New Directors
-------------------------------------
The AES Corporation (NYSE:AES) announced that Kristina M.
Johnson, John A. Koskinen, and Sandra O. Moose were elected to
the Board of Directors at Wednesday's Annual Shareholders
Meeting. The addition of these three Directors expands the Board
to 12 members.

"These new Directors will add impressive capabilities in
management, technology and strategic planning," commented
Richard Darman, Chairman of the Board of AES. "We welcome their
contribution to the AES Board."

Kristina M. Johnson joins the AES board as an independent
member. She is the chief academic and administrative officer
(Dean) of the Edmund T. Pratt, Jr., School of Engineering at
Duke University. Prior to joining Duke in July 1999, Dr. Johnson
served on the faculty at the University of Colorado from 1985-
1999 as a Professor of Electrical and Computer Engineering, and
as a co-founder and Director (1993-1997) of the National Science
Foundation Engineering Research Center for Optoelectronic
Computing Systems Center. Dr. Johnson received her BS with
distinction, MS and PhD from Stanford University in Electrical
Engineering.

John A. Koskinen joins the AES board as an independent member.
He served as Deputy Mayor and City Administrator for the
District of Columbia from January 2000 to August of 2003. Since
2001, Mr. Koskinen has served as a Director of the US Soccer
Foundation and serves on the Foundation's audit committee. He
has also occupied several positions with the U.S. Government,
including service as Deputy Director for Management, Office of
Management and Budget (1994 - 1997), and as Assistant to then-
President Clinton (1998 - 2000), also Chairing the President's
Council on Year 2000 Conversion. Prior to his service with the
U.S. Government, in 1973, Mr. Koskinen joined the Palmieri
Company, which specialized in turnaround management, as Vice
President and later served as President and CEO from 1979
through 1993. Mr. Koskinen graduated with a JD from Yale
University School of Law and a BA in physics from Duke
University.

Sandra O. Moose also joins the AES board as an independent
member. She is President of Strategic Advisory Services and
previously was a Senior Vice President of The Boston Consulting
Group. Dr. Moose joined BCG in 1968, was a director since 1975,
and a Senior Vice President through 2003. She managed BCG's New
York Office from 1988-1998 and was appointed Chair of the East
Coast. Dr. Moose received her PhD and MA in economics from
Harvard University and BA summa cum laude in economics from
Wheaton College. Dr. Moose serves on the Boards of Directors of
Verizon Communications, Rohm and Haas Company, the Alfred P.
Sloan Foundation and CDC Nvest Funds.

CONTACT: The AES Corporation
         Scott Cunningham
         703-558-4875

         Web Site: www.aes.com
                   invest@aes.com


AES CORP: Ups Operating Income By 18% to in 1Q04
------------------------------------------------
The AES Corporation (NYSE: AES) reported Wednesday first quarter
results that included an increase of 18% in operating income to
$618 million on sales of $2.3 billion. AES also reaffirmed its
2004 earnings guidance. The table below summarizes sales,
operating income, income from continuing operations, diluted
earnings per share from continuing operations, adjusted earnings
per share*, and net income for the first quarter of 2004 and
2003.

($ millions except per share)            First   First
                                        Quarter Quarter
                                          2004    2003

Sales                                    $2,257  $1,911
Operating Income                           $618    $523
Income From Continuing Operations           $74    $131
Diluted Earnings Per Share From
  Continuing Operations                   $0.12   $0.23
Adjusted Earnings Per Share*              $0.17   $0.13
Net Income                                  $48     $93

* non-GAAP financial measure

Commenting on the results, President and Chief Executive Officer
Paul Hanrahan said, "We achieved broad-based, strong and
encouraging sales and operating income growth during the quarter
across our diversified portfolio of generation and distribution
businesses. Our continued focus on operations, combined with
stronger macroeconomic fundamentals, are both reflected in this
quarter's results, and we continue to see additional opportunity
ahead. I'm also encouraged by the progress and rational
responses of regulatory authorities on tariff increases. We
continued to reduce parent debt with additional repayments and
repurchases this quarter totaling $351 million."

Adjusted earnings per share (a non-GAAP financial measure) is
defined as diluted earnings per share from continuing operations
excluding gains or losses associated with (a) early retirement
of debt, (b) mark-to-market amounts related to FAS 133
derivative transactions, (c ) foreign currency transaction
impacts on net debt, and (d) significant asset impairments. AES
believes that adjusted earnings per share better reflect the
underlying business performance of the Company, and are
considered in the Company's internal evaluation of financial
performance. Factors in this determination include the
variability associated with mark-to-market gains or losses
related to certain derivative transactions, and periodic
strategic decisions to dispose of certain assets which may
influence results in a given quarter. For the first quarter of
2004, adjusted earnings per share were $0.17, an increase of 31%
over adjusted earnings per share of $0.13 for the first quarter
of 2003.

Business Segment Results

Sales increased in all four business segments and the segment
contribution to gross margin increased in the three largest
segments.

-- In Contract Generation, AES's largest segment, sales grew 21%
to $868 million and gross margin improved 24% to $ 359 million
in the first quarter of 2004. Increases were due primarily to
the addition of new generation plants and improved operating
results at Gener in Chile, Kilroot in Northern Ireland and
generation businesses in Brazil.

-- Large Utilities sales increased 17% to $818 million and gross
margin improved 18% to $194 million for 2004. Increases were
primarily driven by tariff increases at EDC and Eletropaulo
along with lower fuel costs, reduced operating costs and
favorable currency effects.

-- The Growth Distribution segment sales increased 24% to $328
million and gross margin increased 26% to $63 million,
respectively, benefiting from improved tariffs and operating
results, together with favorable currency effects and improved
margins at distribution businesses in El Salvador.

-- Sales in Competitive Supply increased 6% to $243 million
while gross margin declined 7% to $64 million, primarily as a
result of lower capacity revenues and higher coal costs in New
York during the first quarter of 2004.

Overall, consolidated sales increased 18% to $2.3 billion for
2004 and total gross margin from the four operating segments
increased 19% over 2003 to $680 million. Of the first quarter
2004 total segment gross margin, 53% was from Contract
Generation, 29% from Large Utilities, 9% from Growth
Distribution and 9% from Competitive Supply.

AES Reaffirms 2004 Forward-Looking Earnings Guidance

AES reaffirmed its 2004 diluted earnings per share from
continuing operations guidance of $0.62, excluding the $0.03 per
share cost associated with the previously disclosed Gener debt
transaction costs. Noting the Company's favorable earnings
outlook, Hanrahan said, "We remain optimistic about the outlook
for sales and earnings growth in 2004 and beyond, as we continue
to drive performance through productivity improvement, continued
deleveraging, and disciplined growth."

Other

The Company has adopted FASB's Interpretation No. 46 (Revised
December 2003) (FIN 46R) regarding the consolidation of variable
interest entities as of March 31, 2004. The Company continues to
analyze recent interpretations of the pronouncement as they
relate to variable interests, including certain power sales
agreements, which if applicable, could lead to the
deconsolidation of the associated entities. We will report our
results consistent with FIN 46R within the first quarter 10Q
filing. As the Company adopted FIN 46R on March 31, 2004, the
outcome of any potential deconsolidation impacts, if any, will
not affect the AES income statement for the three months ended
March 31, 2004 and would only have an impact on certain balance
sheet amounts and classifications. In future periods adoption of
FIN 46R could reduce reported sales and costs of certain
entities. This would not affect reported income from continuing
operations or diluted earnings per share.

About AES

AES is a leading global power company, with 2003 sales of $8.4
billion. AES operates in 27 countries, generating 45,000
megawatts of electricity through 113 power facilities and
delivering electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

To see financial statements: http://bankrupt.com/misc/AES.txt

CONTACT:  AES investor relations at invest@aes.com
          Web site: http://www.aes.com


CEMIG: Board Decisions Taken at Meeting Held April 28
-----------------------------------------------------
Cemig's Board of Directors made these decisions:

1. Contract with Computer Associates Programa de Computador
Ltda. to provide software licensing, maintenance and technical
assistance services and product upgrades.

2. Revision of Project 705/02: UHE Tres Marias - Modernization
of the Tres Marias hydroelectric generation plant.

3. Signature of contract with the Cemig-CEB consortium, to
provide operation and maintenance services at the Queimado
hydroelectric plant.

4. Collection and receipt of Contribution to Cost of Public
Lighting Services; ratification of the agreement with the
municipality of Belo Horizonte.

5. Amendment extending the period of contracts for works on the
aerial distribution network: re-ratification of CRCA-061/2000.

6. Electricity Efficiency Program: Re-ratification of CRCA-
064/2003 for suspension of conditions for development of
projects in partnership with Copasa.

CONTACT:  COMPANHIA ENERGETICA DE MINAS GERAIS
          Av.Barbacena, 1200
          Santo Agostinho - CEP 30190-131
          Belo Horizonte - MG - Brasil -
          Fax (0XX31)299-4691 - Tel.: (0XX31)349-2111


CEMIG: Stake Sale Not Involved In BNDES-SEB Talks
-------------------------------------------------
Contrary to local press reports, the negotiations for the
resolution of a US$750 million debt owed by a minority
shareholder of Brazilian power company Cemig to Brazil's
national development bank BNDES does not involve changes in
Cemig's shareholding structure, says Business News Americas,
quoting a source close to the talks.

According to the source, there is no truth to the reports that
the talks could include in its agenda the writing off of the
debt owed by Cemig shareholder Southern Electric Brasil
Participacoes to BNDES in exchange for its 33% stake in Cemig.
BNDES has said Tuesday it was suing SEB over the debt.

BNDES loaned SEB US$600 million in 1997 when a minority stake
in Cemig was auctioned, but SEB had to shell out US$1.05 billion
overall to acquire the control and decision-making power on
Cemig's board. However, Cemig has been under the control of the
state of Minas Gerais since former Governor Franco Itamar
nullified in 1999 a shareholders' agreement that allowed SEB to
control Cemig despite having just a minority stake. Since then,
the dispute has been tied up in court, and SEB hasn't paid any
installments on its debt to BNDES. All initial payments were
rescheduled by BNDES owing to the confusion over Cemig's
ownership.

SEB is made up of US power companies AES and Mirant and
Brazilian investment bank Opportunity.


CEMIG: To Hold Auction To Sell 120MW
------------------------------------
Cemig, the integrated power company of Brazil's Minas Gerais
state, is planning to hold an auction until April 30 to sell a
total of 120MW to large consumers in the southeast and Midwest
regions of the country, reports BNamericas, citing the Canal
Energia news service.

The Energia report said the planned 120MW sale, the contracts
for which will commence next year, will be divided into 3-year
contracts for 20MW and 3 to 5-year contracts for 100MW. The
price will start at BRL65.73 per MWh in 2005, and will increase
yearly until it reaches BRL94.02 per MWh in 2009.


EMBRATEL: Telmex Deal Will Get Regulators' Approval
---------------------------------------------------
Analysts consulted by Business News Americas agree that the
recently-approved sale of Brazil's largest long-distance carrier
Embratel to Mexican telephone company Telmex will get the
approval of market regulators Anatel, the securities and
exchange commission CVM, and antitrust authority Cade.

Since the Telmex deal carries no regulatory risks, the analysts
expect the sale will be "100% approved" by the authorities.

Telmex's US$400 million bid for Embratel was approved Tuesday by
Judge Arthur Gonzalez of the New York Southern District
Bankruptcy Court. Although Calais Participacoes, a consortium of
local telecom monopolies Brasil Telecom, Telemar and Telesp,
offered a higher price of US$550 million, the bankruptcy court
rejected the bid due to risks of Brazilian regulators blocking
the deal. In addition, MCI, which just emerged from Chapter 11,
cannot afford to sell Embratel to a consortium being subject to
an investigation by antitrust authorities.

Calais has yet to appeal the court decision but minority
shareholders of Brazil's largest long-distance carrier have
vowed to fight the ruling as the Calais bid assures them of a
higher payout under local takeover laws. The Cade will review
the details of the case on May 11.


GERDAU: Increased Brazilian Exports Boost Performance
-----------------------------------------------------
Gerdau Group exports from Brazil increased 9% from the first
quarter of 2003, reaching 714 thousand tons -- equivalent to 44%
of the total sales from Brazilian units. Earnings from exports
reached US$ 220 million, an increase of 43%. This result
reflects the 27% increase in the average price of Gerdau
products in the international market

The growth in exports from Brazil and the expanding demand in
North America and in the Southern Cone played a decisive role in
the positive performance of the Gerdau Group this quarter.
Exports from Brazil totaled 714 thousand tons, a 9% increase on
the 657 thousand tons shipped during the first quarter 2003.
Earnings from sales to foreign countries, which increased by
43%, totaled US$ 220 million, were also leveraged by a 27%
increase in the average price of Gerdau products in the
international market.

In the U.S. and Canada, Gerdau Ameristeel - the subsidiary
responsible for the Group's operations in the region - recorded
a 9% increase in sales over the first quarter of 2003. Sales
reached 1.4 million tons of steel products reflecting a scenario
of recovering prices and operating margins.

"Our performance in this first quarter signals a positive
perspective of increasing steel sales in North America in 2004.
In addition, the international market, which we service with
exports from Brazil, has remained vigorous, especially due to
the growth in demand from Asia," says senior vice-president
Frederico Gerdau Johannpeter.

Sales to Brazilian clients reached 915 thousand tons, an
increase of 7% over the same period in 2003.

The performance of units in Argentina, Chile and Uruguay was
also positive: together, these units sold 121 thousand tons, up
13%.

As a result of this scenario, a 27% increase was recorded for
consolidated net sales, for a total of R$ 5 billion. Brazilian
units were responsible for 52% of this total, Canada and the
U.S. for 44%, and Argentina, Chile and Uruguay, for 4% of the
consolidated net sales. Consolidated net profit increased 47%,
from R$ 288 million to R$ 423 million.

PRODUCTION

Production of slabs, blooms and billets reaches 3.1 million tons

The Gerdau Group manufactured 3.1 million tons of slabs, blooms
and billets, 6% more than in the same period last year. From
this total, 55% were produced by Brazilian mills, an increase of
2% from Q1 2003, reaching 1.7 million tons. The units in North
America recorded a 12% increase in production for a total of 1.3
million tons, corresponding to 42% of the consolidated volume.
The operations in Chile and Uruguay recorded a 1% increase in
production, totaling 86 thousand tons.

The total production of rolled products increased 12%, to 2.4
million tons. It is during the rolling process that crude steel
is transformed into higher value added products such as rebar,
bars, profiles and wire rod. This quarter, the units in Brazil
produced 1 million tons of rolled products (+11%); the units in
Canada and the U.S. produced 1.3 million tons of rolled products
(+13%); and the units in Argentina, Chile and Uruguay produced
106 thousand tons of rolled products (+16%).

INVESTMENTS

Investments reach US$ 77 million

Investments in the technological upgrade and expansion of the
Gerdau Group's units in the Americas totaled US$ 77 million, of
which 67% were destined for the operations in Brazil (US$ 52
million), 30% for the industrial plants in Canada and the U.S.
(US$ 23 million) and 3% for the mills in Argentina, Chile and
Uruguay (US$ 2 million).

LISTED COMPANIES

Increasing demand for Gerdau shares in the capital market

On May 18th, the shareholders of the listed companies in Brazil
- Gerdau S.A. and Metal£rgica Gerdau S.A. -- will receive
dividends in the form of interest on shareholders capital
relating to the first quarter of 2004. Metal£rgica Gerdau S.A.
will pay a total of R$ 45.4 million, equivalent to R$ 1.10 per
share. Gerdau S.A. will distribute R$ 94.4 million,
corresponding to R$ 0.64 per share.

This quarter, Metal£rgica Gerdau S.A. shares traded R$ 442.7
million on the Sao Paulo stock exchange (Bovespa), an increase
of 352% from Q1 2003. The average daily trading reached R$ 6.2
million. A total of 11,397 transactions were completed in the
period, a 251% increase.

Metal£rgica Gerdau S.A. recorded a net profit of R$ 167 million,
or R$ 4.02 per share. This amount is 31% higher than the net
profit of R$ 128 million recorded for the same period in 2003.

Gerdau S.A. shares were traded in 38,019 transactions on the
Bovespa, for a total of R$ 1.3 billion (+274%). The average
daily trading was R$ 20 million. The presence of Gerdau ADRs was
also stronger on the New York Stock Exchange (NYSE) trading
sessions: a volume of US$ 221 million was traded, 610% more than
in Q1 2003. This represents a daily average of US$ 3.6 million.
On the Madrid Stock Exchange (Latibex), the total volume of
trades involving Gerdau S.A. shares reached ? 1.3 million.

Gerdau S.A. recorded a net profit that was 55% higher than the
pro forma results for the period from January to March 2003,
reaching R$ 382 million in the quarter (R$ 2.59 per share).

Gerdau Ameristeel records profit of R$ 63 million

The net revenue for Gerdau Ameristeel, in accordance with the
Generally Accepted Accounting Principles in Brazil, reached R$ 2
billion, a 36% increase. For the quarter, the net profit was R$
63 million, versus a R$ 22 million loss for the first quarter
last year.

The trading volume of Gerdau Ameristeel (subsidiary responsible
for the Gerdau Group's operations in Canada and the U.S.) shares
at the Toronto Stock Exchange grew from Cdn$ 11 million to Cdn$
64 million.

CONTACT: Press Office +55(51) 3323-2170
         imprensa@gerdau.com.br
         Web Site: www.gerdau.com.br



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

ENERSIS: ENDESA Reports ERU400M in Net Profit in 1Q04
--------------------------------------------------------
Endesa's Operating Profit Totalled Euro 1,024 million In The
First Quarter Of 2004, An Increase Of 18.5% With Respect To 2003

Ordinary Profit Was Euro 736 million, An Increase Of 24.8%
Versus The Same Period Of 2003 Confirming The High Quality Of
The Company's Earnings Which In This Period Were All Recurring

A Like For Like Comparison Of Net Profit, After Stripping Out
Capital Gains And Extraordinary Provisions From The Results For
The First Quarter Of 2003, Net Profit Increased By 74.7% In The
First Quarter Of 2004.

-- All ENDESA's businesses recorded net profit. Net profit from
the Spanish electricity business totalled Euro 286 million, that
from the Latin American electricity business Euro 24 million,
that from the European electricity business Euro 45 million and
that from other businesses also Euro 45 million.

-- In addition, all the company's businesses recorded growth in
operating profit compared to the first quarter of 2003: the
Spanish electricity business by 27.4%, the electricity business
in the rest of Europe by 15.9%, the Latin American electricity
business by 3.4% and other businesses by 116.7%.

-- In the first quarter of 2004, the operating profit of
ENDESA's Latin American electricity business increased in terms
of euros despite the lower average exchange rate of the dollar
against this currency when compared to the first quarter of
2003. In this sense, operating profit of Latin American business
significantly reversed the trend seen in previous quarters.

-- In the first quarter of 2004, ENDESA generated a total of
44,300 GWh of electricity in all the markets in which it
operates in Spain, the rest of Europe and Latin America, an
increase of 12.8% on the same period of 2003. Electricity sales
in these same markets were 43,300 GWh, 7.4% more than in the
first quarter of 2003.

-- EBITDA (operating cash flow) totalled Euro 1,412 million in
the first quarter of 2004, an increase of 12.2% with respect to
2003.

-- The company's leverage ratio has remained stable, at 31 March
2004 it was 125.3% vs. 125.5% as of 31 December, 2003, an
improvement of 0.2 percentage points confirming progress towards
the goal of reducing leverage included in the Strategic Plan for
2004-2008.

-- At 31 March 2004, ENDESA's net debt was Euro 17,896 million.
92% of this was at fixed or hedged rates, thereby minimizing
risks from a possible rate hike in coming years.

-- The Spanish telecoms operator Auna made a profit for the
first time in the first quarter of 2004, which together with the
good performance of the Chilean mobile telephony company
Smartcom led to a Euro 32 million increase in equity-
consolidated earnings from these companies in the first quarter
of 2004 versus the same period of 2003.

-- At the beginning of March, ENDESA reached an agreement with
Charbonnages de France (CDF) to acquire an additional 35% of the
French generator SNET, in which ENDESA already held 30%, thereby
increasing its shareholding to 65%. The European Commission
approved this deal on April 21, so this now only requires the
authorization of the French State Holdings Agency.

-- In the first quarter of 2004, ENDESA maintained its
leadership of the Spanish electricity market, with a 44.9%
market share in electricity generation in the ordinary regime,
42.2% in distribution and 41.7% in sales to end customers.

-- In the first quarter of 2004, ENDESA's coal-fired power
plants generated 9,193 GWh, 18.3% of peninsular electricity
generation under the ordinary regime of the whole Spanish
electricity sector.

-- In the first quarter of 2004, which saw lower rainfall than
in the same period of 2003, the Company's coal-fired plants
provided one out of every five GWhs generated in the peninsula,
thereby making a significant contribution to guaranteeing
coverage of demand.

-- Tangible investment on the Spanish distribution business
totalled Euro 127 million in the first quarter of 2004, a rise
of 25.7% versus the same period of 2003, due to the efforts
ENDESA is making on improving supply quality.

-- Gas sales of companies in which ENDESA has a majority stake
amounted to 3,850 GWh in the first quarter of 2004. Of this
amount, 2,293 GWh was sold on the deregulated market and 1,557
GWh on the regulated market.

-- Endesa Chile started the loading of Ralco Dam (Chile), a 570
MW facility whose generation will cover 9% of the Central
Interconnected System (SIC). This plant will begin generating by
mid 2004.

ENDESA's (NYSE:ELE) net profit in the first quarter of 2004 was
Euro 400 million, and its EPS Euro 0.38.

No significant extraordinary results have been recorded in this
quarter so virtually all net profit reflects earnings from the
company's ordinary activities.

On the contrary, in the first quarter of 2003 the company
recorded capital gains from the sale of transmission assets to
Red Electrica de Espana (REE) and certain real estate assets,
whose impact on net profit for the period after the deduction of
extraordinary provisions made during this period totalled Euro
440 million. Stripping out this impact, recurring profit in the
first quarter of 2003 was Euro 229 million.

Consequently, a like for like comparison of net profit in the
first quarter of 2004 with that for the same period of 2003, in
other words after stripping out extraordinary earnings in both
periods, shows net profit increased by 74.7% in the first
quarter of 2004.

In the first quarter of 2004, ENDESA generated a total of 44,300
GWh of electricity in all the markets in which it operates, an
increase of 12.8% on the same period of 2003, with electricity
sales of 43,300 GWh, growth of 7.4% on the first quarter of
2003.

All ENDESA's businesses recorded net profit in the first quarter
of 2004. Net profit from the Spanish electricity business
totalled Euro 286 million, that from the Latin American
electricity business Euro 24 million, that from the European
electricity business Euro 45 million and that from other
businesses also Euro 45 million.

Ordinary profit was Euro 736 million, an increase of 24.8%
versus the same period of 2003 reflecting the high quality of
the Company's earnings.

Operating profit was Euro 1,024 million, an increase of 18.5% on
the same period of 2003.

Operating profit grew for all ENDESA's electricity businesses.
Operating profit from the domestic electricity business was Euro
586 million, an increase of 27.4% on the same period of last
year. In the rest of Europe this figure was Euro 124 million, an
increase of 15.9%, and in Latin America it was Euro 301 million,
an advance of 3.4%, while in the other businesses growth was
116.7% to Euro 13 million.

In the first quarter of 2004, the operating profit of ENDESA's
Latin American electricity business increased in terms of euros
despite the lower average exchange rate of the dollar against
this currency when compared to the first quarter of 2003. In
this sense, operating profit of Latin American business
significantly reversed the trend seen in previous quarters.

ENDESA's leverage ratio at 31 March 2004 was stable at 125.3%,
compared to 125.5% at 31 December 2003, an improvement of 0.2
percentage points. Accordingly, ENDESA has continued to make
progress towards the target of reducing leverage included in the
Strategic Plan 2004-2008.

At 31 March 2004, ENDESA's net debt was Euro 17,896 million. 92%
of this was at fixed or hedged rates, thereby eliminating risks
from a possible rate hike in coming years.

AUNA and Smartcom's results continued to perform well in the
first quarter of 2004. The Spanish telecoms operator made a
profit for the first time. This, allied to a good performance
from Smartcom, led to a Euro 32 million increase in equity-
consolidated earnings from these companies versus the same
period of 2003.

Operating profit

ENDESA posted revenue of Euro 4,246 million in the first quarter
of 2004, an increase of 8.1% on the same period of 2003.

Operating cash flow was Euro 1,412 million, an increase of 12.2%
compared to the first quarter of 2003.

Operating profit rose 18.5% to Euro 1,024 million. The table
below shows the breakdown for ENDESA's markets and businesses by
revenue, cash flow, operating cash flow and operating profits.

Electricity business Spain Europe Latin America Other businesses

Electricity business in Spain

ENDESA's Spanish electricity business made operating profits of
Euro 586 million in the first three months of 2004, an increase
of Euro 126 million in absolute terms or 27.4% in percentage
terms on the same period last year.

Euro 25 million of this increase came from the increase in the
estimated useful life of the company's nuclear power plants from
30 to 40 years, resulting in smaller depreciation charges for
these plants.

Coinciding with this change, ENDESA has begun to make a
provision to cover the costs of dismantling these plants once
their useful lives have concluded. In the first quarter of 2004,
Euro 5 million has been provided for in this respect.

Stripping out the effect of the change to the useful life of its
nuclear plants, operating profit from the Spanish electricity
business would have grown by 22.0%.

The main factors driving operating profit growth in the Spanish
electricity business were the 7.9% increase in energy generated,
the average 1.7% increase in the regulated tariff in 2004 versus
2003, the 8.8% increase in the average price to liberalized
customers, and the fact that the increase in fuel costs was
smaller than the increase in generation.

Revenues

Revenues from the Spanish electricity business were Euro 2,720
million in the first quarter of 2004, a 10.1% increase from the
year earlier.

Sales

Sales in the Spanish electricity market were Euro 2,473 million.

In the first quarter of 2004, ENDESA maintained its leadership
of the Spanish electricity market, with a 44.9% market share in
ordinary regime electricity generation, 42.2% in distribution
and 41.7% in sales to end customers.

Peninsular generation

In the first three months of 2004, electricity demand on the
Iberian peninsula grew 4.4% with respect to the same period of
2003. However, ordinary regime generation grew more, by 4.9%, as
a result of the decline in the balance of international
exchanges and the 10.1% increase in special regime generation.

In the first quarter of 2004, ENDESA generated 20,842 GWh of the
electricity sold on the wholesale market, representing a rise of
7.7% on the same period of 2003. This represents a market share
of 41.5%.

In the first quarter of 2004, ENDESA's coal-fired power plants
generated 9,193 GWh, 18.3% of peninsular electricity generation
under the ordinary regime of the whole Spanish electricity
sector. This means that in periods of lower than average
rainfall such as the first quarter of 2004, the Company's coal-
fired plants provided one out of every five GWhs generated in
the peninsula, thereby making a significant contribution to
guaranteeing coverage of demand.

Meanwhile, ENDESA companies operating under the special regime
generated 1,470 GWh in the first quarter of 2004. Earnings from
this activity are recorded under "Other businesses."

Of this amount, 903 GWh were generated by installations
exploiting renewable energy in which ENDESA has an interest, a
13.3% increase on the first quarter of 2003.

ENDESA's generation sales on the peninsula rose 11.5% due to the
increase in generation mentioned above and the 2.3% rise in the
average pool price in the first quarter of 2004 compared to the
same period of 2003. In absolute terms, the average pool price
for the first quarter of 2004 was Euro cents 3.14 per kWh.

Distribution and supply at peninsular tariff

ENDESA distributed 21,028 GWh of electricity in the peninsular
market in the first quarter of 2004, of which 14,522 Gwh were
supplied to regulated tariff customers.

Endesa's distribution tolls and energy sales on the peninsular
market increased by 2.6% compared to the same period of 2003.
This increase was mainly the result of a 0.3% rise in energy
supplied at tariff and the 1.2% hike in the price of energy
acquired from the pool, which automatically feeds through to
revenue billed to regulated customers.

The gross distribution margin, measured as the difference
between energy sales and purchases in this activity, amounted to
Euro 339 million in the first quarter of 2004, an increase of
4.0% on the same period of 2003.

Supply to liberalized clients

In the first quarter of 2004, ENDESA sold 7,158 GWh to clients
on the deregulated market, an increase of 21.1% from 2003.

This increase breaks down as follows: 15.4% in areas in which
ENDESA acts as distributor, 11.6% in other areas and 87.3% to
clients in other European countries.

The rise in energy sold, together with the 8.8% increase in the
average price, allowed for growth of 31.5% in sales of this
activity, to Euro 426 million.

Non-peninsular systems

ENDESA's output in non-peninsular systems was 3,106 GWh in the
first quarter of 2004, 8% more than in the same period of 2003.
Demand rose 8.2% in the system as a whole.

Sales on these markets in the period were Euro 247 million,
representing growth of 8.3% from the first quarter of 2003,
basically as a result of this rise in demand.

In addition, the company received Euro 56 million in
compensation, Euro 2 million more than in the first quarter of
2003.

Gas

Gas sales in the first quarter of 2004 amounted to Euro 57
million, an increase of 18.8% compared to the same period of
last year. Gas sales of companies in which ENDESA has a majority
stake amounted to 3,850 GWh in the first quarter of 2004. Of
this amount, 2,293 GWh was sold on the deregulated market and
1,557 GWh on the regulated market.

The 3,850 GWh sold together with the 3,395 GWh consumed in
generation amount to a total of 7,245 GWh, an 8.3% share of the
Spanish market.

CTC

In the first quarter of 2004, system revenues were sufficient to
cover all the system's recognized costs, allowing for the
payment of Euro 270 million in stranded costs (CTC).

Of this amount, Euro 143 million correspond to ENDESA, Euro 36
million more than in the first quarter of 2003.

Purchases

Purchases from January to March 2004 in the Spanish electricity
business were Euro 1,524 million, an increase of Euro 116
million or 8.2% on the first quarter of 2003. This was due
mainly to the following factors:

-- Energy purchases made by ENDESA's distributor and supplier
for client sales increased by Euro 84 million or 9.1% compared
to the corresponding period of 2003. This increase was mainly
the result of a 6.5% rise in energy supplied to both tariff and
deregulated clients and the 1.2% increase in the average price
of the energy acquired.

-- Gas purchases for client sales increased by Euro 8 million or
23.5% due to the 18.8% increase in gas sales.

-- Fuel costs for electricity generation rose by Euro 26
million, accounting for a 7.7% increase over the first quarter
of 2003.

Depreciation

In recent months a study has been carried out in the European
electricity sector into the remaining useful life of nuclear
plants based on their current situation taking into account the
investments made in recent years.

As a result of this study, it was concluded that these plants
were technically viable for a total period of 40 years compared
to the 30-year period over which they were being depreciated.

Accounting regulations establish that when a change is made to
the estimated useful life of plant this shall be reflected by
adjusting the depreciation charges over the remaining useful
life of the installation. In accordance with this, since 1
January 2004 ENDESA has been depreciating its nuclear plants on
the basis of a useful life of 40 years.

This change in the estimated useful life of the company's
nuclear power stations has resulted in a Euro 25 million smaller
depreciation charge in the first quarter of 2004 than would have
been the case if depreciation had been continued over 30 years.

Despite this, the depreciation charge for the Spanish
electricity business has only declined by Euro 5 million due to
the depreciation of the investments made in 2003 and the Euro 6
million increase in the depreciation of assets to be recovered
via CTCs applying their foreseeable recovery path.

The net impact of this change in the estimated useful life of
the company's nuclear power stations, together with the
beginning of the provision for their dismantling, on ENDESA's
net profit in the first quarter of 2004 was very small, around
Euro 13 million, or 3%.

Personnel expenses

At 31 March 2004, ENDESA's Spanish electricity business employed
13,593 employees, a reduction of 58 with respect to 31 December
2003. In the first quarter of 2004, personnel expenses totalled
Euro 211 million, an increase of 1.4% on 2003.

Other operating expenses

Other operating expenses totalled Euro 184 million in the first
quarter of 2004, an increase of Euro 15 million with respect to
2003. This increase was due mainly to the Euro 7 million
increase in repairs and maintenance as a result of plans aimed
at boosting the quality of supply and the Euro 8 million
increase in tax from the increase in the public thoroughfare
levy because of higher sales and the environmental tax which has
begun to be levied in Andalusia.

Electricity business in Europe

Operating profit from the electricity business in Europe
totalled Euro 124 million in the first quarter of 2004, an
increase of 15.9% with respect to 2003.

In both the first quarter of 2004 and in 2003, practically all
these earnings came from ENDESA Italia.

Figures for sales and purchases of energy include bilateral
wholesale operations carried out on the European market whose
results were neutral. These operations declined Euro 44 million
in the first quarter of 2004 compared to the same period of
2003.

ENDESA Italia's revenues were 5.5% higher in the first quarter
of 2004 than in the same period of 2003, due to a 16.0% increase
in electricity sold and a 14.6% decrease in the average sale
price caused by the tariff revision approved by the Electricity
and Gas Authorities. Meanwhile, this same regulatory body
approved through the resolution number 8/04 dated on February
5th the compensation for the purchase of "green certificates" in
prior years, having a positive effect of Euro 18 million over
Endesa Italia's revenues.

Endesa Italia sold 5,777 GWh of electricity in the first quarter
of 2004, of which 393 GWh was acquired from third parties for a
cost of Euro 14 million. ENDESA Italia's output was 5,394 GWh in
the first quarter of 2004, an increase of 768 GWh or 16.6% on
the same period of 2003.

This increase in output was the result of a 48 GWh decline in
hydro production and a 816 GWh increase in thermal-fired
electricity. The latter, together with higher fuel prices, led
to a Euro 8 million increase in fuel costs.

At the beginning of last August, ENDESA reached an agreement
with Charbonnages de France (CDF) to acquire an additional 35%
of the French generator SNET, in which ENDESA already held 30%.
The European Commission approved this deal on April 21, so this
now only requires the authorisation of the French State Holding
Agency. Once this operation has been completed, ENDESA will own
65% of SNET so the latter's results will be fully consolidated,
instead of equity accounted, as has been the case to date.

Electricity business in Latin America

Operating profit from the electricity business in Latin America
totalled Euro 301 million in the first quarter of 2004, an
increase of 3.4% with respect to 2003.

Growth was underpinned by improved economic trends in the
countries where ENDESA operates, which were first seen in 2003.

This business's operating profit has grown in euros despite this
currency's average exchange rate experienced a 16.3%
appreciation vis-a-vis the dollar between the first quarters of
2003 and 2004 and the fact that a significant portion of
revenues from Latin America, primarily from generation and the
interconnection between Brazil and Argentina, are linked to the
US$. Measured in dollars, the operating profit of the Latin
American electricity business in the first quarter of 2004
increased by 20.2%.

This operating profit performance demonstrates the basis
strength of ENDESA's Latin American electricity business and the
favourable operating performance of its subsidiaries in the
region.

Chile

Operating profit from the Chilean generation business totaled
Euro 60 million, a 1.7% increase on the first quarter of 2003,
despite earnings for this latter period including those from the
Canutillar power plant, which was subsequently sold. In the
first quarter of 2003, this plant produced a total of 234 GWh
and generated operating profit of Euro 3 million. Under like-
for-like conditions, in other words excluding earnings from
Canutillar, the operating profit of ENDESA's business in Chile
grew 7.1% in the first quarter of 2004.

The increase in sales obtained in the first quarter of 2004 was
offset by a similar increase in energy purchases. The operating
margin has had to absorb Euro 7 million in higher fuel and
energy transmission costs.

Meanwhile, the depreciation of the Chilean peso against the
dollar in the first quarter of 2004 allowed for a Euro 5 million
increase in capitalized expenses compare to the same period last
year.

Lastly, Euro 3 million less were allocated to depreciation and
amortization than in the first quarter of 2003.

Operating profit in the Chilean distribution business totalled
Euro 33 million, a 10% increase from the previous year.

This rise was fuelled by a Euro 9 million increase in the
contribution margin (i.e. the difference between revenues and
energy purchases), accompanied by a Euro 6 million increase in
fixed costs.

Endesa Chile has started loading the dam of the hydro plant at
Ralco, a 570 MW facility accounting for 15% of the company's
total capacity. The plant will start operations in the middle of
this year and will meet 9% of the Central Interconnected
System's (SIC) requirements.

Finally, the Chilean Government has recently decided to increase
the node price of the Central Interconnected System (SIC) to be
paid in Alto Jahuel by 18.8% in US$ due to uncertainty over the
supply of natural gas from Argentina.

Colombia

Operating profit in the Colombian generation business amounted
to Euro 42 million, a 23.5% increase from the first quarter of
2003.

The entire increase was due to the higher gross margin, thanks
to a Euro 6 million increase in revenues and a Euro 5 million
decrease in energy purchases and raw materials, while
electricity transmission costs were Euro 3 million higher.

The distribution business in Colombia contributed Euro 32
million in operating profits versus Euro 15 million in the first
quarter of 2003.

This improvement was driven by a 19.6% increase in the
electricity tariff, which, coupled with growth in energy sales,
led to a Euro 26 million rise in revenues while energy purchases
only increased by Euro 5 million.

Brazil

The Brazilian generation business recorded operating profit of
Euro 13 million versus Euro 9 million in the first quarter of
2003.

The increase derived from the start-up of the Fortaleza thermal
plant, which contributed operating profits of Euro 9 million.

Meanwhile, operating profit from Cachoeira Dourada was Euro 5
million lower, due to the fall in revenues temporarily recorded
pursuant to the Precautionary Measures ordered by the Brazilian
courts stemming from CELG's lawsuit over its contract with this
company. We would point out that although the Precautionary
Measure provides that the contract will be provisionally paid up
for a smaller amount than that established, the court has forced
CELG to provide guarantees for the full amount laid down in the
contract.

Operating profit from the Brazilian distribution business
totalled Euro 37 million, a 12.1% increase compared to the same
period last year.

Revenues advanced Euro 52 million (+31%) thanks to the 31%
increase in tariffs for COELCE and the 15% hike for CERJ.
Meanwhile, energy purchases rose Euro 37 million, while fixed
costs were Euro 11 million higher.

Operating profit deriving from the interconnection between
Brazil and Argentina was Euro 23 million, half the figure
obtained in the first quarter of 2003. As revenues from this
interconnection are indexed to the US$, the depreciation of the
dollar against the euro with respect to the first quarter of
last year, coupled with the renegotiation of the COPEL contract,
led to a decline in revenues in euros, which explains the fall
in operating profit.

Peru

Operating profit from the generation business in Peru totalled
Euro 23 million, the same as in the first quarter of 2003.

The only noteworthy change was the Euro 4 million decrease in
depreciation and amortization caused by the Peruvian sol's
depreciation against the euro between the first quarters of 2003
and 2004, which offset the decline in gross margin measured in
euros.

Despite the currency's 13.7% depreciation, operating profit in
euros was broadly flat, thanks to an 17.4% increase in operating
profit in local currency.

Operating profit from Peruvian distribution amounted to Euro 12
million, a 9.1% increase from the first quarter of 2003. The
entire increase was the result of a Euro 4 million decline in
fixed costs compensating the Euro 3 million decline in gross
margin.

Argentina

Argentine generation produced operating profit of Euro 26
million, 8.3% more than in the same period last year.

The increase was driven by a Euro 1 million rise in the gross
margin and an equal decline in fixed costs.

In distribution, operating profit in Argentina totalled Euro 11
million in the first quarter of 2004, Euro 2 million less than
in the same period of 2003.

This decline was caused by the Euro 8 million increase in the
cost of energy purchased versus the Euro 5 million rise in
revenues. Meanwhile, fixed costs were Euro 1 million lower.

Financial results

ENDESA reported financial losses of Euro 230 million in the
first quarter of 2004, compared to Euro 187 million in the same
period of 2003.

Financial expenses

Financial expenses in the first three months of the year
totalled Euro 355 million, in line with the year-earlier figure.
Of this amount, Euro 275 million correspond to debt interest and
commission, compared to Euro 315 million in the first quarter of
2003, a 12.7% reduction. The rest corresponds to the financial
updating of provisions and expenses mainly those associated with
the cancellation of financial operations.

ENDESA's total debt had an average cost of 5.62% versus 5.20% in
the first quarter of 2003. The rise was sharper at the ENERSIS
Group, from 7.38% to 8.90%. The average cost of ENDESA's debt ex
ENERSIS was 4.40%, versus 4.33% in the first quarter of 2003.

The higher average cost of debt was due to the hedging policy
followed in 2003, which enabled the Group to have 92% of its
debt at a fixed or hedged interest rate for an average period of
4 years, and to the extension of the average life of its debt to
5.2 years.

In this way, the company eliminates the risk of the potential
impact of a rise in interest rates on the P&L and diminishes
refinancing risk by extending the average life of its debt in
exchange for bearing a higher cost of debt.

However, net debt at 31 March 2004 stood at Euro 17,896 million,
an increase of Euro 646 million compared to the 31 December 2003
figure. This rise was due to the following factors:

-- The negative impact of the euro's exchange rate against the
dollar, which produced an increase of Euro 167 million in the
group's dollar-denominated debt (mainly through ENERSIS).

-- The Euro 261 million investment for the acquisition of an
additional 3% of AUNA.

-- The net acquisition of 6.8 million of the company' own
shares, which required an investment of Euro 98 million. At 31
March 2004 ENDESA holds 8.9 million shares in treasury stock,
equivalent to 0.84% of share capital.

-- After the dividend payment, working capital increased by Euro
111 million.

This increase recurs in the first quarter of each year as a
result of the cyclical impact of some expenses and investments
in the last quarter of the year and paid in the first quarter of
the ensuing year. Previous years' experience shows that this
increase in working capital is adjusted in the last quarter of
each year. If we look at the change in working capital between
31 March 2003 and 31 March 2004, we observe a decline of Euro
497 million.

Foreign exchange differences

Net forex differences in the first quarter of 2004 produced a
gain of Euro 43 million. Of this amount, Euro 77 million was due
to the cancellation of debt in US$ held in Spain so these are
realised forex differences.

Meanwhile, the Chilean peso's 3.67% depreciation against the
dollar led to negative forex differences of Euro 33 million.

It is worth mentioning that from 1 January 2004, ENDESA has
adapted its dollar debt hedging policies, both financial and
accounting, to IAS.

Accordingly, it has substituted the hedging policy based on the
correlation of currencies to one based on converting revenues
into dollars; i.e. cash flow hedge.

In accordance with this criteria, debt hedges are considered to
be debt in US$ to finance assets that produce revenues in
dollars or tied to the dollar.

Exchange differences, both positive and negative, arising from
this debt are directly recorded against equity and then taken to
income as the dollar revenues it covers are obtained. This
situation is mostly evidenced in the generation business in
Latin America and the interconnection between Brazil and
Argentina.

To adapt to this policy, ENDESA repaid US$ 296 million of the
debt held by ENDESA in Spain in the first quarter of 2004,
generating positive forex differences of Euro 77 million.
Additional switch over to local currencies from US$ denominated
debt of the Latin American subsidiaries is expected.

Equity income

In the first quarter of 2004 the key aspect as regards equity
accounted companies is the improvement in results of the
telecommunications business.

Spanish operator AUNA contributed Euro 1 million in profits from
ENDESA's shareholding and the Chilean mobile company Smartcom
posted a loss of just Euro 1 million, signalling improvements of
Euro 23 million and Euro 9 million, respectively, versus their
contributions in the first quarter of 2003.

At 31 March 2003, Auna had 8,470,000 mobile phone clients
(310,000 more than at 31 December 2003) and more than 660,000
cable network clients (24,000 more than at 31 December 2003).

At 31 March 2004, the 32.89% stake in AUNA had a book value of
Euro 1,273 million.

Smartcom had 1,220,000 clients at 31 March 2004, 50,000 more
than at the end of 2003.

Earnings of equity-consolidated companies attributable to Endesa
were Euro 19 million, an improvement of Euro 32 million versus
the first quarter of 2003.

The main items of this amount correspond to the assets of the
European electricity business in which ENDESA has an interest of
less than 50% and whose results, accordingly, are recorded by
the equity method. Specifically, earnings from these assets
totalled Euro 7 million in the first quarter of 2004, of which
Euro 4 million correspond to the Portuguese generator Tejo
Energia.

Extraordinaries

It should be pointed out that thanks to the performance of the
Argentine peso against the euro and the results recorded by the
group's Argentinean subsidiaries, the total book value of these
investments has increased by Euro 17 million during this period.

ENDESA, following prudent accounting policies, continues to
assign a value of zero to its investments in this country.
Therefore, in the first quarter of 2004 the group provisioned
Euro 17 million, on top of that already made at 31 December
2003, which was recorded under the extraordinary income caption
in the consolidated P&L account.

Therefore, ENDESA's balance sheet at 31 March 2004 included a
provision of Euro 198 million to cover the full risk of
investment and loans in Argentina.

Apart from the allocation to this provision, extraordinary
results for the first quarter of 2004 do not include any other
significant item. Conversely, extraordinary results for the
first quarter of 2003 amounted to Euro 528 million due to
extraordinary capital gains and provisions. These atypical
results had an impact of Euro 440 million on net income for this
period.

Information by business line

Tangible investments in distribution in Spain increased by 25.7%
in January-March 2004 compared to the same period in 2003. This
increase is part of the effort being made by the Company to
improve service quality. In relation to this, the Equivalent
Installed Capacity Interruption Time (TIEPI) was 0.38 hours for
ENDESA's total Spanish markets in the first quarter of 2004, an
improvement of 29% on the same comparative period of 2003.

The main financial investments were the acquisition of an
additional 3% stake in AUNA for Euro 261 million and the Euro
185 million capital increase at Smartcom - this was made by
converting existing loans into capital and therefore not
requiring any further outflow of funds.

Cash flow from operations came to Euro 1,004 million in the
first quarter of 2004, 1.3% higher than the same period in 2003.

This cash flow amply covered all tangible and intangible
investments (Euro 384 million), the interim dividend paid to
ENDESA shareholders on 2 January 2004 (Euro 280 million), the
dividends paid to minority shareholders in its subsidiaries
(Euro 70 million) and the payment of provisioned obligations -
fundamentally for headcount reduction programs (Euro 128
million).

Financial structure

At 31 March 2004, ENDESA's shareholder equity was Euro 9,162
million, an increase of Euro 361 million compared to 31 December
2003.

Equity of subsidiaries attributable to minority shareholders at
that date stood at Euro 5,122 million, an advance of Euro 177
million compared to the end of 2003.

Therefore, equity increased by Euro 538 million in the first
quarter of 2004 compared to an increase of Euro 646 million in
debt, putting leverage at 125.3% compared to 125.5% at 31
December 2003.

Lastly, we would point out that at 31 March 2004 the liquidity
of ENDESA in Spain and its direct subsidiaries stood at Euro
4,973 million, of which Euro 3,983 million corresponded to
unused credit lines. This sum covers maturities falling due in
the next 23 months for this group of companies.

Also, at 31 March 2004, the ENERSIS group had liquidity of Euro
566 million, which is sufficient to cover debt maturities for
the next 12 months, excluding (as has become usual practice)
debt maturities for the group's Argentine subsidiaries. Given
the economic situation of that country, all their debt is short-
term and rolled over on a recurrent basis.

To see financial statements: http://bankrupt.com/misc/Endesa.txt

CONTACT: ENDESA
         North America Investor Relations
         David Raya, 212-750-7200



=============
E C U A D O R
=============

PETROECUADOR: Adopts Measures To Raise Production
-------------------------------------------------
Ecuador's state oil firm Petroecuador is aiming to boost its
output, which has declined in recent years due to inadequate
investment levels, from the current 196,000 barrels a day to
210,000 barrels a day by rehabilitating 50 inactive wells,
reveals Dow Jones.

For the rehabilitation project, the company plans an investment
of between US$25 million to US$50 million, which energy minister
Eduardo Lopez described as part of the government's new
"aggressive and long-term" oil policy. Mr. Lopez added that work
on the 50 inactive wells are to begin in May, and that he will
instruct the company's production unit to reclassify certain
budget items for investment purposes.



=====================
E L   S A L V A D O R
=====================

MILLICOM INTERNATIONAL: Redeems Sr Convertible PIK Notes
--------------------------------------------------------
Millicom International Cellular S.A. (Nasdaq Stock Market: MICC)
("MIC"), the global telecommunications investor, announces that
it has called the entire outstanding amount of its 2% Senior
Convertible PIK Notes Due 2006 (the "2% Notes") (in an aggregate
principal amount of approximately $160,000) for redemption in
cash in accordance with the terms of the Indenture covering the
2% Notes.

A total of $63,371,000 of the 2% Notes was converted into shares
of MIC common stock, with a par value of $1.50 each, through
April 26, 2004 from the initial amount of $63,531,000. Following
these conversions there are 89,638,927 shares of MIC common
stock outstanding.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16
cellular operations and licenses in 15 countries. The Group's
cellular operations have a combined population under license of
approximately 387 million people.

CONTACTS:  Millicom International Cellular S.A.
           Marc Beuls
           President and Chief Executive Officer
           +352 27 759 327

           Shared Value Ltd
           Andrew Best
           Investor Relations
           +44 20 7321 5022

           Web site: http://www.millicom.com



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

C&WJ: Widens the Reach of its Mobile Roaming Service
----------------------------------------------------
Cable & Wireless Jamaica has recently added several countries in
which its mobile customers can enjoy roaming service using their
local number. The countries included in the most recent batch of
roaming agreements signed by C&WJ are Sweden, Switzerland,
Germany, the Dominican Republic and Aruba.

At the same time, roaming coverage has been further strengthened
in the USA and the UK with the signing of agreements with
additional service providers in both countries.

Under bilateral agreements reached since the start of the year,
mobile customers from Sweden (900/1800MHz), Switzerland
(900/1800MHz), Germany (1800MHz), USA (1900MHz), Dominican
Republic (900MHz) and Aruba (900/1900MHz) will also be able to
use their mobile phones on the Cable & Wireless network while in
Jamaica.

The extension of roaming to these countries has been made
possible through agreements reached with service providers such
as Orange, Cingular, O2, Telia Sonera and Setar.

C&WJ expects to have a bilateral roaming agreement with Italian
operator Wind within another week, which will bring to 30 the
number of countries within which the company's mobile customers
are able to roam with either GSM or TDMA service and across
dual-bands.

Ian Nieta, Senior Vice President for Mobile Services at C&WJ
says `The addition of these new roaming destinations is in
keeping with our commitment to deliver services to our customers
that add real value to them in the conduct of their business and
pursuit of leisure.'

`We have been very selective in picking our roaming partners as
we want to ensure that our global roaming footprint extends to
all those countries where our customers frequently visit," adds
Obaid Rahman, Cable & Wireless' Head of Roaming Services in the
Caribbean.

Apart from extending voice roaming, the company is also working
towards launching GPRS Roaming in the near future.



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

ARACRUZ CELULOSE: Moody's Affirms Ratings
-----------------------------------------
Moody's Investors Service affirmed the ratings of Aracruz
Celulose S.A. and changed the outlook for the ratings to stable
from negative.

The ratings affirmed are Aracruz's Baa3 Global Local Currency
issuer rating and its Aa1.br Brazil National Scale issuer
rating.

The affirmation, according to Moody's, reflects Aracruz's
position as the world's largest and most cost efficient producer
of bleached eucalyptus (hardwood) market pulp, the geographic
diversification of Aracruz's exports, consistent annual capacity
utilization of near 100%, Aracruz's commercial focus on long
term contracts with high value added and consumer product end-
users, the company's adequate debt protection and liquidity
measurements over a normal market pulp pricing cycle and the
anticipated contribution from its Veracel subsidiary in 2006.

However, the rating also considers above average volatility in
cash flow and margins due to Aracruz's near exclusive
participation in the pulp business, the Company's history of
maintaining a relatively high dividend payout ratio, start-up
risks associated with the Veracel investment and a continued
concentration of production at a single site.

The change in outlook to stable reflects a significant
improvement in Aracruz's liquidity and overall debt profile as
of March 31, 2004, the successful integration of Riocell, with
capital expenditures and realized production costs within
expectations and the finalization of all external financing for
the Veracel joint venture.

Additionally, the outlook also recognizes Aracruz's stated
intention to maintain coverage of its 12-month debt maturities
with cash and marketable securities and to continue to improve
the maturity profile and reduce the level of its debt, including
the use of excess free cash flow for debt reduction.

However, the outlook or rating could be pressured by an extended
period of below average pulp prices or increased debt levels due
to debt-financed acquisitions or capital investment programs
above current expectations.

The outlook or rating could improve due to the use of free cash
flow for debt reduction, a consistently strong liquidity profile
and the successful start-up of Veracel, with a resulting
improvement in financial performance, says Moody's.


GRUPO ELEKTRA: Reports EBITDA of MXN827 Million in 1Q04
-------------------------------------------------------
Grupo Elektra S.A. de C.V. (NYSE: EKT, BMV: ELEKTRA*), Latin
America's leading specialty retailer, consumer finance and
banking services company, reported Wednesday its financial
results for the first quarter of 2004.

Javier Sarro, CEO of Grupo Elektra commented: "This quarter, we
are pleased to announce that the Company took one of the most
important steps in Grupo Elektra's history. On one hand, we
redeemed, four years in advance, our 12% US$275 million Senior
Notes. On the other hand, we made history by issuing the first
securitization in Mexico based on commissions from Dinero
Express, our successful intra-Mexico electronic money transfer
business. Through these transactions, the Company eliminated all
its liabilities with cost denominated in US dollars."

"Results in our core operations showed an excellent quarter. In
the remainder of the year, we will continue with our efforts to
increase sales through our competitive pricing strategy and
promotions, as well as our expansion program planned for 2004,
through which we expect to increase our presence in Mexico,"
added Mr. Sarro.

Carlos Septien, CEO of Banco Azteca said: "Banco Azteca
continues serving our people and Mexico with a simple strategy:
offering high quality financial products and services to a
market previously not served. This can be evidenced by the
outstanding growth trend experienced by our deposits. Our plan
for the year will continue focusing on the implementation of new
products, on our own expansion and on the development of our
unparalleled credit experience among other retailers".

"On April 21, 2004, we successfully redeemed our 12% US$275
million Senior Notes, and Grupo Elektra broke the mismatch of
paying interests in US$ dollars and earning revenues in Pesos,"
said Rodrigo Pliego, Chief Financial Officer of Grupo Elektra.
"At the end of 2003, the Company had liabilities with a face
value of approximately the equivalent of US$ 330 million;
however, after the financial transactions and with the help of
our cash position, our liabilities with cost as of April 21,
represented the equivalent of US$272 million, an important
decrease in only three months. As a result, all of our
liabilities with cost are currently denominated in Mexican
Pesos."

Redemption of Senior Notes:

On April 21, 2004, Grupo Elektra deposited US$293.3 million in
The Bank of New York to fully amortize, four years in advance,
the Company's 12% US$275 million Senior Notes due in 2008. Since
that date, Grupo Elektra eliminated its liabilities denominated
in US dollars and will only carry peso-denominated debt on its
balance sheet. The redemption of the Senior Notes was a major
milestone, reached through the financial strategy that Grupo
Elektra implemented since last year. The objectives of the
financial strategy aimed to improve the terms of its expensive
debt and to refinance its debt issued in US dollars with debt in
local currency. The full payment covered the call price on the
principal, plus the accrued interest since the last coupon
payment, to its redemption date.

Key factors that allowed Grupo Elektra to refinance its
liabilities were its two successful placements of unsecured
long-term and short-term Certificados Bursatiles for MXN2,600
million (equivalent to US$218 million) and MXN400 million
(equivalent to US$36 million), respectively. Through the
redemption of the 12% US$275 million Senior Notes, the Company
estimates savings for the next four years of approximately US$40
million, completely eliminating foreign exchange risk and
interest expenses in US dollars, which will ultimately be
reflected on the net income line.

After a thorough review process and analysis with our external
auditors and in response to the feedback received from market
participants, since the fourth quarter of 2003, we are
presenting the results of Banco Azteca and Afore Azteca under
the consolidation method. All figures and discussions detailed
in this press release result from the application of this
accounting method, which provides a clearer overview of Grupo
Elektra. To make these figures totally comparable to those from
prior periods which did not use the consolidation method, we
have reformulated those periods under the same accounting
method, in accordance to the concepts established in Bulletins
A-7 and B-8 of the Generally Accepted Accounting Principles
(Principios de Contabilidad GeneralmenteAceptados) regarding the
comparability and consolidation of figures in financial
statements.

    1Q04 Financial Highlights:

    Consolidated Revenues

Total consolidated revenues increased 13.9% YoY from MXN4.7
billion in 1Q03 to MXN5.4 billion in 1Q04, the highest level
ever reached in a first quarter. This outstanding result is
explained by the strong performance in merchandise sales (10.1%
YoY growth), and an increase of four times YoY in revenues from
Banco Azteca. Growth in merchandise sales was a consequence of
the positive performance across all our store formats, as
revenue from Elektra, Salinas y Rocha, and Bodega de Remates
increased YoY by 10.7%, 1.2% and 8.9%, respectively.
Additionally, we continue registering solid results due to our
pricing strategies "Nobody Undersells Elektra" (Nadie Vende Mas
Barato que Elektra), "MXN100 or Less Weekly" (MXN100 Semanales o
Menos), and a seasonal campaign. The increase in merchandise
revenues is also attributable to the improvement in product
supply, as we built four new distributions centers in 2003, our
compensation plan for employees and better- trained personnel at
our stores. Likewise, the increase in Banco Azteca's income is
largely due to its promotional campaigns, better customer
service, and more professionally trained personnel, altogether
making consumer credit more efficient.

Gross Profit

Total Gross profit experienced a strong 15.7% YoY increase, from
MXN2.0 billion to MXN2.3 billion in 1Q04, as gross margin
increased 70 basis points YoY from 42.2% to 42.9% in 1Q04. Gross
margin from our merchandise sales increased 170 basis points YoY
from 26.9% to 28.6% in 1Q04. This positive trend reflects the
larger volumes in sales and further operational efficiency
improvements that offset previous declines resulting from our
competitive pricing strategy: to offer the most competitive
prices in every specific area where our stores are located.

EBITDA and Operating Profit

Consolidated EBITDA reached a record amount for a first quarter,
MXN826.5 million or a 9.5% YoY increase from MXN754.8 million in
1Q03. The growth in revenues, coupled with a higher consolidated
gross margin, partially offset the 18.8% YoY increase in
operating expenses. The increase in administrative and selling
expenses is largely due to new employees hired and trained for
Banco Azteca, Afore Azteca and Seguros Azteca, including
collection personnel, credit executives, cashiers, new employees
that have a direct interaction with clients and who are also
used for our door-to-door selling and credit line pre-approval
efforts, and lastly, new hirings and expenses at our four new
distributions centers.

Operating profit increased by 28.5% YoY as depreciation and
amortization expenses decreased 17.6% YoY. This decrease is
largely due to the start-up expenses related to Banco Azteca,
which were amortized during 2003, thus making the consolidated
base higher when compared to the figure reported in 1Q04.

Comprehensive Cost of Financing

Comprehensive cost of financing for 1Q04 was MXN85.9 million,
77.3% lower compared to the MXN378.0 million in 1Q03. The
difference in the cost of financing is explained by:

    At the retail level:

     * A MXN104.6 million decrease in net interest expenses,
       largely due to the reduction in liabilities with cost, in
       line with our financial strategy.
     * A change in FX gains of MXN198.7 million from 1Q03 to
       1Q04.
     * A change in monetary gains of MXN11.3 million from 1Q03
       to 1Q04.

    Net Profit

The above mentioned decrease in the comprehensive cost of
financing, coupled with our solid operating performance and the
positive result of our investment in CASA (MXN302.0 million),
led to a net profit of MXN411.3 million, well above the net loss
reported in 1Q03 of MXN67.8 million.

Retail Division

During 1Q04, we continued benefiting from our enhanced
merchandising strategies "Nobody Undersells Elektra", "MXN100 or
Less Weekly", a new seasonal strategy and our improved
merchandise supply logistics at all our stores based on our 10
distribution centers in Mexico and three in Latin America. Sales
volumes were positively impacted as evidenced by the YoY revenue
increases in all our store formats (10.7%, 1.2% and 8.9% for
Elektra, Bodega de Remates and Salinas y Rocha, respectively)

We also benefited from a significant improvement in our Latin
American operations (Guatemala, Honduras and Peru) where we also
implemented our successful merchandising strategies, our
compensation based on contribution policies for paying our
employees at the stores, and our strict cost controls. As a
consequence of these factors, during 1Q04, revenues and gross
profits in this geographical division registered YoY increases
of 37.6% and 76.3%, respectively.

Some of the main highlights in the Retail Division include:

Dinero Express. Continuing with the success of this important
business line, during 1Q04, revenues from our intra-Mexico
electronic money transfer service increased 31.7% to MXN81.7
million from MXN62.1 million in 1Q03. Revenue was boosted by a
37.0% growth in the number of transfers from 585,000 in 1Q03 to
804,000 in 1Q04. This represents a 32.4% increase in the amount
transferred, from MXN877.0 million in 1Q03 to MXN1,161 million
in 1Q04, and a 33.9% expansion in the number of transactions.

Western Union. We continue to experience a positive momentum in
our electronic money transfer business from the United States to
Mexico thanks to our successful advertising and promotional
campaigns. This was reflected in the 12.1% YoY increase in
revenues to MXN102.4 million from MXN91.4 million in 1Q03.
During the quarter, we transferred the equivalent of MXN3.1
billion through 1.2 million transactions, representing YoY
increases of 36.2% and 30.0%, respectively.

Telephones (Wireless Products and Services). We continue to see
growth potential in this business line, especially among our
target market. However, we feel that we have not been able to
fully exploit this line, mainly as a result of our previous
product selection and inside-store strategies. Nevertheless,
revenue continued to grow during the quarter, benefiting from a
broader selection of wireless products and services, as since
3Q03 we introduced Iusacell wireless products and services
through our stores making us the largest distributor in Mexico,
and the only one to offer the four main brands of wireless
products and services in Mexico. As a consequence, revenues
increased 22.8% to MXN302.3 million in 1Q04 from MXN246.1
million in 1Q03 and the decrease in the gross profit is
explained by an adjustment in our pricing strategy following
conditions set by our competition.

Banco Azteca

Banco Azteca continues to be a successful nation-wide bank in
benefit of both Grupo Elektra and Mexico. By offering a variety
of banking and financial products, over the last year, Banco
Azteca has received an outstanding response from a market
previously overlooked by other banks.

For 1Q04, Banco Azteca reported net income of MXN155.3 million,
a significant improvement from the net loss of MXN41.7 in 1Q03,
and already above the net income registered during the year
2003. This favorable outcome is mostly attributable to the
growth in interest income. This outcome comes from the volume
and portfolio mix of consumer financing granted at all Grupo
Elektra's stores in Mexico and in other retailers.

Credimax (Consumer Loans) and Credimax Efectivo (Personal Loans)
Combined Credit Portfolio.

The two products account for 95.6% of our loan portfolio.
Although we started granting commercial loans during the
quarter, we will be very cautious always evaluating the risks
associated.

During 1Q04, our efforts to continue installing Banco Azteca's
modules at other retailers showed positive results as we
increased from 96 desks at the end of 4Q03 to 323 desks at the
of 1Q04. This strategy has allowed us to broaden our base of
clients.

At the end of 1Q04, we had a combined total of 3.062 million
active accounts, representing a 6.4% increase from 2.877 million
in 4Q03 and a 31.2% increase over the same period of last year.
Consolidated gross consumer loans increased 2.0%, reaching
MXN6.3 billion from MXN6.2 billion at the end of 4Q03. The
average term of the combined credit portfolio at the end of the
1Q04, was 52 weeks, representing increases of one and two weeks
when compared to 4Q03 and 1Q03, respectively. Personal loans
represented 15.3% of the total consumer portfolio at the end of
1Q04, showing an increase of 290 basis points when compared to
12.4% at the end of 4Q03. The collection rate of Banco Azteca
remains at the same excellent historic level that defines Grupo
Elektra's standard, 98% approximately.

Guardadito (Savings Accounts) and Inversion Azteca (Term
Deposits).

In 1Q04, Banco Azteca increased its deposits, as the different
options launched during 2003 filled our customers expectations
to continue entrusting their money at our bank branches. Net
deposits showed an outstanding growth of 28.9% QoQ, from MXN8.3
billion at the end of 4Q03 to MXN10.7 billion in 1Q04, and seven
times the deposits of 1Q03. Over the quarter, the total number
of accounts rose by approximately 660,000 to 4.1 million.

As of March 31, 2004, the capitalization index of Banco Azteca
was 11.5%, compared to 11.3% as of December 31, 2003, and to
9.6% as of March 31, 2003. Recall that the law in Mexico sets 8%
as the minimum capitalization index requirement.

The average funding mix of Banco Azteca had a 3.4% cost at the
end of 1Q04, 20 basis points more than the rate reported in
4Q03, although 330 basis points below the cost reported in 1Q03.
The increase in the cost of financing from quarter to quarter
can be explained by the growth in deposits in Inversion Azteca,
above the growth in deposits in Guardadito.

Afore Azteca

Starting on 4Q03, Afore Azteca's financial results were
consolidated with Grupo Elektra's financial statements, and for
a second consecutive time, our pension management company
registered a positive net income of MXN10.4 million for 1Q04
from a net income of MXN3.1 million in the previous quarter. As
of March 31, 2004, Siefore Azteca reached MXN1.0 billion in net
assets under management, a 73.2% increase over the previous
quarter. It also yielded a 10.88% return in the 1Q04, 227 basis
points above the average rate of the industry of 8.61%. The
number of affiliates reached 26,000 and the number of assignees
was 478,000, both as of March 31, 2004.

Consolidated Balance Sheet

To continue maintaining clarity in our consolidated balance
sheet and to separate between what once was restricted and
unrestricted to former bondholders of Grupo Elektra, following
we discuss certain items included on a separated basis.

Total cash and cash equivalents rose to MXN12.0 billion in 1Q04
from MXN4.1 in 1Q03, comprised of MXN6.5 billion from the retail
division and MXN5.6 billion from Banco Azteca. The retail
division cash and equivalents registered a growth of almost
three times when compared to 1Q03. This result is attributable
to the funds obtained from the peso-denominated placements
during March 2004, later used to redeem, four years early, our
12% US$275 million Senior Notes on April 21, 2004. Cash and
equivalents from Banco Azteca increased over three times by
MXN3.2 billion over the same period a year ago. On a proforma
basis, after April 21, the retail division cash and equivalents
after the payment of the Senior Notes decreased to MXN2.6
billion which is still 10.8% higher compared to its cash and
equivalents registered in 1Q03.

Banco Azteca's gross credit increased 9.7% QoQ to MXN5.9 billion
in 1Q04 from MXN5.4 billion at the end of 4Q03. The 73.8% YoY
decrease in the retail division's customer accounts receivables
from MXN1.1 billion to MXN296.1 million has been compensated by
the expansion of Banco Azteca's credit portfolio. Please recall
that the transfer of our credit operations in Mexico to Banco
Azteca explains this trend. Also recall that we continue to
maintain our credit operations of Latin America under the retail
division.

At the end of 1Q04, total debt with cost in the retail division
was MXN6.8 billion, 72.1% higher when compared to MXN3.9 billion
at the end of 4Q03. This growth is only attributable to both
issuances of unsecured debt of Certificados Bursatiles placed on
March 2004. Those funds were used to redeem, four years in
advance, our 12% US$275 million Senior Notes on April 21, 2004,
as part of our financial strategy outlined at the beginning of
the year. Our strategy focused on refinancing and prepaying
expensive, long-term debt for local currency, short-term debt.
As a result of these changes, net debt for the retail division
at the end of 1Q04 was MXN307.1 million. On a proforma basis,
after April 21, total debt with cost of the retail division
decreased to MXN3.0 billion pesos and has decreased 23.7%
compared to total debt with cost reported in 1Q03.

Total net deposits for Banco Azteca continued showing an
outstanding success by increasing 28.9% QoQ to MXN10.7 billion
at the end of 1Q04, from MXN8.3 billion at the end of 4Q03.
Year-over-year, deposits increased over two times from MXN4.4
billion in 1Q03.

CONTACTS:

    Investor and Press Inquiries

    Esteban Galindez, CFA,
    Director of Finance & IR
    Grupo Elektra, S.A. de C.V.
    Tel. +52 (55) 8582-7819
    Fax. +52 (55) 8582-7822
    egalindez@elektra.com.mx

    Rolando Villarreal
    Head of Investor Relations
    Grupo Elektra S.A. de C.V.
    Tel. +52 (55) 8582-7819
    Fax. +52 (55) 8582-7822
    rvillarreal@elektra.com.mx

    Samantha Pescador
    Investor Relations
    Grupo Elektra S.A. de C.V.
    Tel. +52 (55) 8582-7819
    Fax. +52 (55) 8582-7822
    spescador@elektra.com.mx


LUZ Y FUERZA: Financial Position Worsens
----------------------------------------
Despite continued subsidies from the federal government, the
financial position of Mexican state power company Luz y Fuerza
del Centro (LyFC) continues to deteriorate as it continues
operations in the face of plummeting assets, according to a
report by local daily El Universal.

El Universal reveals that LyFC's financial statements show
liabilities amounting to MXN4.94 billion (US$435 million) in the
first quarter of this year, equivalent to 63% of income obtained
from electricity sales in the central zone of the country during
the same period. While LyFC's sales totaled MXN7.81 billion
pesos (US$689 million), the company's exploitation costs
amounted to MXN12.89 billion (US$1.13 billion) during the same
period. No private company would be able to continue operating
under these conditions, the report said.

As of March 31, 2004, the company's total liabilities closed at
MXN92.48 billion (US$8.1 billion) a figure that surpasses the
total value of its plants, facilities and equipment, estimated
at MXN68.64 billion pesos (US$6.05 billion).


SATMEX: Needs US$50M for Satmex 6 Insurance
---------------------------------------------
The operations vice president of Mexico's Satmex said Tuesday
that the launch of Satmex 6, the company's latest satellite,
cannot proceed if the US$50 million needed for the satellite's
insurance premium isn't raised, relates BNamericas.

"If we don't get the money we won't be able to launch," Satmex
operations Vice President Arturo Gonz lez-Arquieta said. The
company only needs to pay the insurance premium to be able to
launch the satellite, as it has almost fully paid for the
satellite's building and launching costs, he added. Mr.
Gonzalez-Arquieta also stressed the satellite's importance,
saying it is intended to be the company's news unit in service
that will cover all of the Americas, from Canada to Argentina.

The insurance premium was supposed to have been covered by the
United States' Export-Import Bank (Ex-Im), but the bank's
decision to withdraw its guarantees earlier this year has left
the company with the problem of raising the US$50 million
premium. Satmex now has initiated efforts to raise the money.


UNEFON: Signs SMS Deal With Telefonica
--------------------------------------
Unefon, Mexico's third-largest wireless phone company, has
forged an agreement with Telefonica Moviles Mexico that would
allow the exchange of short text messages among customers of
both companies, without the payment of activation charges or
carrying out of any special procedures, reports ISI Emerging
Markets.

In a statement, Telef¢nica M¢viles M‚xico said the service,
which is already in effect, enables its cellular phone users to
exchange text messages up to 150 characters in length with
Unefon users, and vice-versa. Fees for the text messages will be
consistent with what the companies normally charge.

CONTACT:  Unefon Holdings, S.A. de C.V.
          Hector Romero
          Mexico
          Phone: +011-5255-3099-0060
          Email: hromero@gruposalinas.com.mx



===========
P A N A M A
===========

BLADEX: To Redeem Preferred Shares
----------------------------------
Banco Latinoamericano de Exportaciones,S.A.(BLADEX or "The
Bank")- (NYSE: BLX),a specialized multinational bank established
to finance trade in the Latin American and Caribbean Region,
notified its preferred shareholders on Wednesday that, pursuant
to the terms and conditions of its preferred shares contained in
the text of the stock certificate, effective May 17, 2004, the
Bank will redeem a total of 304,639 preferred shares (which
represents 20% of the preferred shares issued as of March 15,
2002) among the preferred shareholders registered as of April
30, 2004. With this purpose, a drawing will be held at its
offices located at 50th Street and Aquilino de la Guardia
Street, Panam , Republic of Panam , on Monday May 3, 2004 at
3:00 p.m. local time, whereby will be selected for their
redemption at par value on May 17, 2004.

In the procedures established to choose the preferred shares,
the stock certificates will be listed in the order they appear
during the drawing until completion of 304,639 preferred shares.
In the event that the last certificate of preferred share cannot
be totally paid because it may exceed the 304,639 preferred
shares, such certificate will be partially redeemed and a new
share certificate with the number of shares that were not
redeemed will be sent to the shareholder.

The drawing will take place with the presence of a Public Notary
of the Republic of Panam  and officers of BLADEX's Internal
Audit Department.

BLADEX will announce to all the registered preferred
shareholders, the results of the drawing. The results will be
also available on BLADEX's web site at www.blx.com on May 4,
2004.

In order to do the corresponding payments, the shareholders of
the selected certificates must send their certificates to BLADEX
at the following address:

CONTACT: Luisa Lin de Polo
         Assistant Manager
         Shareholder Relations
         BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
         Calle 50 y Aquilino de la Guardia
         P.O. Box 6-1497 El Dorado
         Panam , Republic of Panam
         Phone: (507) 210-8667
         Fax: (507) 210-8666
         E-mail: lpolo@blx.com

         Web Site: www.blx.com


Payment will be made as soon as the corresponding certificates
are received by BLADEX.



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

*S&P Rates Republic of Peru's US$500M Bonds 'BB-'
------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it
assigned its 'BB-' foreign currency rating to the Republic of
Peru's US$500 million senior unsecured bond issue, which is due
in 2016.

Standard & Poor's also said that it affirmed its 'BB+' long-term
local currency and 'BB-' long-term foreign currency sovereign
credit ratings on Peru as well as its 'B' short-term ratings.

The outlook on Peru is stable.

The US$500 million issue completes the government's planned
external issuance for 2004. The government's financial program
incorporated a total of US$1 billion from international capital
markets, but US$500 million was pre-financed at the end of 2003.

"Peru's macroeconomic fundamentals continue to strengthen
despite President Toledo's and Congress's low levels of
popularity," said Standard & Poor's credit analyst Sebastian
Briozzo. Improvements are supported by a fiscal consolidation
strategy that has gradually reduced the country's public-sector
deficit to an estimated 1.5% of GDP in 2004 from 3.2% in 2000.
Fiscal consolidation--in the context of fairly robust economic
growth--has stabilized Peru's relatively high debt burden at
about 46% of GDP and will create the basis for reducing this
ratio.

In addition, recent policies directed at developing the domestic
market for local currency debt are gradually reducing the
country's still significant external vulnerability, a major
credit constraint for Peru. Net public-sector external debt, at
102% of current account receipts, compares unfavorably with the
median of only 33% for Peru's 'BB' rated peers. The government's
financial plan for 2004 includes US$550 million of financing
from the domestic market, all denominated in Nuevos Soles.

Relatively high economic growth rates since 2002, averaging 4.4%
(including the expected 4% growth for 2004), have not
contributed to substantially improve political predictability
and the social climate in Peru. "Despite relatively strong
growth prospects over the medium term, the need to make this
growth pattern sustainable and job-creating will continue to
constrain the Peruvian government," Mr. Briozzo added.

ANALYSTS:  Sebastian Briozzo, New York 212-438-7342
           Jane Eddy, New York (1) 212-438-7996



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

CANTV: Sees Doubled ADSL Growth
-------------------------------
With the rise in education via public and private internet
access points, the president of Venezuelan telephone company
Cantv is expecting a more than 100% growth in the sales of ABA,
its broadband internet service, for 2004 compared to last year,
BNamericas relates, citing a report by news service La Red.

Cantv President Gustavo Roosen's optimistic scenario is based on
company estimates saying the Venezuelan economy grew 20% for the
first quarter of 2004, with basic telephony and mobile call
volume showing recovery. He added that despite the Venezuelan
economy's decline as a whole, ABA registered an increase in
signups last year.

Cantv is the largest provider of fixed telephone lines and
Internet access in Venezuela.


                            ***********


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

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