---

        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, July 30, 2004, Vol. 5, Issue 150

                            Headlines

A R G E N T I N A

AGROMECANICA: Court Converts Bankruptcy to Reorganization
FEMA IND Y COM: Reorganization Concluded
HEDWIN S.A.: Gears For Reorganization


B A R B A D O S

PERSONA: Receives Final Approval For Plan of Arrangement


B E R M U D A

FOSTER WHEELER: Inks Consultancy Contract in Korea
GLOBAL CROSSING: Slim Buys Additional Stake


B R A Z I L

AES-ENRON: Commission to Probe Privatization Deals
BANCO ITAU: Not Affected By Partnership Says S&P
BANCO LAVRA: Seeks $70M in Damages From Comerica Inc.
CEMIG: Releases July 28 Supervisory Board Resolutions
CEMIG: Tenders Infovias Assessment Deal

EMBRATEL: Extends Exchange Offer Expiration Date



C H I L E

ENERSIS: Reports Lower Net Profit in the 1H04
TELEFONICA CTC: S&P Removes Ratings From CreditWatch


G U Y A N A

* Guyana's Anti-Poverty Program Gets $8.8M Boost From IMF


H O N D U R A S

* Honduras Secures $20M IADB Loan for Social Programs


M E X I C O

AEROMEXICO: Abandons Utah Flight Due to New US Customs Policy
CINTRA: Shows 2Q04 Net Loss of MXP470M
DIRECTV LA: Mexican Media Company Looks To Acquire Subscribers
EMPRESAS ICA: Posts MXN377M EBITDA in 2Q04
GRUPO MEXICO: Reports Financial Performance of Units During 2Q04

GRUPO TFM: Posts $184.9M Net Revenue for 2Q04
GRUPO TMM: Records Improved 2Q04 Revenue
HYLSAMEX: Net Profit Soars On Higher Steel Prices
MAXCOM TELECOMUNICACIONES: Reports Higher Revenues for 2Q04
TV AZTECA: Names Mario San Roman as CEO

UNEFON HOLDINGS: Files Preliminary Info Memorandum Before CNBV


P E R U

PAN AMERICAN SILVER: Reports Sharply Higher Profits in 2Q04


S U R I N A M E

* S&P Lowers Suriname's LTFC Rating to 'SD' from 'B-'


V E N E Z U E L A

CANTV: Net Income at US$50M in 2Q04
CANTV: Assures Government of Robust Communications System
PDVSA: Planned Refineries Could Cost $6.4 Billion

     -  -  -  -  -  -  -  -


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

AGROMECANICA: Court Converts Bankruptcy to Reorganization
---------------------------------------------------------
Agromecanica Sudeste S.A. proceeds with reorganization after
Court No. 1 of Azul's civil and Commercial Tribunal converted
the Company's ongoing bankruptcy case into a "concurso
preventivo", states Infobae.

Under Insolvency protection, the Company will draft a proposal
designed to settle its debts with creditors. The reorganization
also prevents Agromecanica's outright liquidation.

Ms. Gabriela Raquel Weisburd, the court-appointed trustee, will
verify creditors' proofs of claims until August 27, 2004.
Creditors with unverified claims cannot participate in the
Company's settlement plan.

CONTACT: Agromecanica Sudeste S.A.
         Ruta Nacional 3 Km. 299,2
         Azul

         Ms. Gabriela Raquel Weisburd, Trustee
         Belgrano 530
         Azul


FEMA IND Y COM: Reorganization Concluded
----------------------------------------
The settlement plan proposed by Fema Ind y Com S.H. de Horacio
Massimino y Antonio Natale Massimino for its creditors acquired
the number of votes necessary for confirmation. As such, the
plan has been endorsed by Court No. 13 of Lomas de Zamora's
Civil and Commercial Tribunal and will now be implemented by the
company.

CONTACT: Fema Ind y Com S.H. de Horacio Massimino
         y Antonio Natale Massimino
         Alfredo Palacios 3147
         Valentin Alsina
         Lomas de Zamora


HEDWIN S.A.: Gears For Reorganization
-------------------------------------
Court No. 9 of the Buenos Aires Civil and Commercial Tribunal,
assisted by Clerk No. 17, issued a resolution opening the
reorganization of Hedwin S.A., reports Infobae.

This pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. It further allows the Company to retain control of
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee.

Mr. Mario Gustavo Doctorovich will serve as trustee during the
course of the reorganization. He will be validating creditors'
proofs of claims until August 17, 2004. Afterwards, the results
of the verification will be presented in court as individual
reports on September 28, 2004.

The trustee is also required to give the court a general report
of the case on November 10, 2004. The general report summarizes
events relevant to the reorganization and provides an audit of
the Company's accounting and business records.

Hedwin S.A. will present a completed settlement proposal to its
creditors during the informative assembly scheduled on March 30
next year.

CONTACT: Mr. Mario Gustavo Doctorovich, Trustee
         Montevideo 527
         Buenos Aires



===============
B A R B A D O S
===============

PERSONA: Receives Final Approval For Plan of Arrangement
--------------------------------------------------------
The Canadian Radio-television and Telecommunications Commission
(CRTC) approved Wednesday an application by Persona Inc.
("Persona" or "the Company") (TSX: PSA) relating to the change
control of Persona Communications Inc.

This approval represents the final of several regulatory
approvals required in order for Persona to proceed with a plan
of arrangement involving Persona and Canadian Cable Acquisition
Company Inc. The original CRTC approval did contain several
condition precedents that the purchaser has now satisfied. Court
approval for the plan of arrangement was received from the
Ontario Superior Court of Justice on June 2, 2004.

The transaction, if consummated, will result in Canadian Cable
Acquisition Company Inc. acquiring all of the common shares of
Persona. As well, if consummated, Mr. Philip Keeping will
acquire the shares of Persona Communications (Barbados) Inc.
currently owned by Persona. Persona shareholders will receive
$6.80 cash for each common share held. Persona option holders
whose options have an exercise price of less than $6.80 will
receive the difference between the exercise price and $6.80 for
each option held.

The Purchaser and the Company are now working in an effort to
close the transaction in accordance with the timeframes
contemplated in the Plan of Arrangement. Persona's common shares
are expected to cease trading on The Toronto Stock Exchange at
the close of markets on the day following the closing. However,
there is no certainty the transaction will close.

About the Company

Persona is in the business of providing cable television,
digital cable, high speed Internet, dial-up Internet and telecom
services to a diverse base of residential and commercial
customers in British Columbia, Alberta, Saskatchewan, Manitoba,
Ontario, Quebec and Newfoundland. Persona, as the largest and
controlling shareholder of Cable Bahamas Ltd., also provides
similar as well as more advanced services throughout the
Commonwealth of The Bahamas. Persona is a widely held public
company whose shares trade on The Toronto Stock Exchange (PSA).

CONTACT: Brendan Paddick, President and CEO
         Tel: (242) 373-1335
         E-mail: bpaddick@personainc.ca

         Sally Moyer Kent, Chief Financial Officer
         Tel: (416) 489-7898
         E-mail: smkent@personainc.ca



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

FOSTER WHEELER: Inks Consultancy Contract in Korea
--------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that a
subsidiary of Foster Wheeler Limited (England) has been awarded
a project management consultancy contract by Hyundai Oilbank
Co., Ltd. (HDO) for a $200 million clean fuels upgrade project
at the Hyundai Oilbank Refinery at Daesan, 130 kms southwest of
Seoul, Korea. The value of Foster Wheeler's contract was not
disclosed. The booking was included in the first quarter.

"We have been involved with this refinery since the late 1980s,
when it was known as the Kukdong refinery, and we are delighted
to continue our long-standing relationship," said Steve Davies,
chairman and chief executive officer of Foster Wheeler Limited
(England).

"We are committed to helping Hyundai Oilbank realize its
objectives for this fast-track project to meet new Korean
legislation by bringing to the project our extensive worldwide
clean fuels experience, along with our successful track record
in project management consultancy."

This clean fuels project will include a new plant comprising a
third 25,000 barrels per day (bpd) gas oil (heating oil)
hydrotreating unit, a 20,000 bpd motor gasoline (mogas)
hydrodesulfurization unit, and a 40 million standard cubic feet
per day hydrogen manufacturing unit. It will also include the
revamp of the second existing 35,000 bpd gas oil hydrotreating
unit, plus minor offsites and utilities works.

This investment will reduce the sulfur content of the mogas from
the hydrodesulfurization unit from 200 parts per million (ppm)
to 30 ppm and the gas oil from the new gas oil hydrotreating
unit to 10 ppm. This is being undertaken in compliance with the
Korean government's environmental legislation, which comes into
effect on January 1, 2006.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemical, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Media Contact:
         Foster Wheeler Ltd.
         Ms. Maureen Bingert
         Phone: 908-730-4444
         Maureen_bingert@fwc.com

         Other Inquiries
         Phone: 908-730-4000

         Web Site: http://www.fwc.com


GLOBAL CROSSING: Slim Buys Additional Stake
-------------------------------------------
Mexican billionaire Carlos Slim Helu upped his stake in Global
Crossing, the US telecommunications group that emerged from
Chapter 11 bankruptcy protection in December.

According to a recent filing with the Securities and Exchange
Commission, Orient Star Holdings LLC, the holding group for Slim
and his family, bought 120,500 shares of Global Crossing last
Friday for US$12.63 apiece.

On Monday, the holding bought another 31,000 for US$12.83 -
$13.92 apiece, bringing the Slim family's total holdings to 4.14
million, or 10.4% of Global Crossing's equity.

After the purchase, Global Crossing shares rose US$2.44 to
US$16.68, on the Nasdaq Stock Market.

Bermuda-based Global Crossing has until today to file restated
financial results for 2002 and 2003 and unaudited statements for
the first quarter of this year or it faces delisting from
Nasdaq.

CONTACTS: Press Contacts:
          Ms. Becky Yeamans
          + 1 973-937-0155
          PR@globalcrossing.com

          Ms. Fernanda Marques
          Latin America
          + 55 21-3820-4712
          LatAmPR@globalcrossing.com

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

          Investors Contact:
          Mr. Mitch Burd
          +1 800-836-0342
          glbc@globalcrossing.com



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

AES-ENRON: Commission to Probe Privatization Deals
--------------------------------------------------
A parliamentary commission is set to launch an investigation
into the privatization deals entered by AES and the Brazilian
government in the early 90's.

Lower house congressman Mauro Passos said in a Business News
Americas report that the commission will begin its probe as soon
as representatives from the different parties are convened.

The commission will look into allegations that terms of the
loans made to the U.S. companies by national development bank
BNDES were not in the best interests of Brazil. Mr. Passos
claims that the procedures used by the bank could be illegal.


BANCO ITAU: Not Affected By Partnership Says S&P
------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that the
announcement of the creation of a new financial company by Banco
Itau Holding Financeira S.A. and Companhia Brasileira de
Distribuicao (CBD) would not affect the ratings or outlooks on
Banco Itau S.A. (Itau; LC: BB/Stable/B; FC: B+/Positive/B) or
its related entities. The transaction is consistent with Itau's
strategy of increasing its presence in the Brazilian retail
market. Itau will be in charge of the credit approval process
and procedures of the new company and will provide funding for
the operations. CBD is the largest retail chain in Brazil, with
555 stores and total revenues of BrR15 billion, holding well-
regarded brands like Pao de Acucar and Extra. Agreements of
financing with other banks will be discontinued during 2004.
Given the amount involved - BrR455 million to BrR380 million of
goodwill that may be amortized during 2004 - it is not expected
that Itau's liquidity and capital position will be affected by
the agreement.

ANALYSTS: Tamara Berenholc, Sao Paulo (55) 11-5501-8950
          Claudio Gallina, Sao Paulo (55) 11-5501-8938


BANCO LAVRA: Seeks $70M in Damages From Comerica Inc.
-----------------------------------------------------
A small Brazilian bank is seeking US$70 million in damages from
Comerica Inc. (NYSE:CMA) based on allegations that the Detroit-
based bank failed to live up to its agreement for a business
combination.

An amended complaint was filed this month by Attorney Mark
Brewer of Brewer & Pritchard law firm in Houston, with the
Eastern District of Michigan presided over by Hon. Marianne O.
Battani. It alleges actions that led to the bankruptcy of Banco
Lavra in Sao Paulo, Brazil.

The complaint claims that Comerica agreed to acquire Banco Lavra
and entered into an interim agreement called a "strategic
alliance." It then required Banco Lavra to abandon its
successful retail business. The Brazilian bank was to become
Comerica's arm of international finance, according to the
petition.

Banco Lavra, headed by brothers Valdner and Marcio Papa, had a
solid retail banking operation with a very profitable
international financial division. The lawsuit alleges that
Comerica promised to expand the international finance division
through its contacts with large US and Latin American
corporations doing business in Brazil.

Comerica's Doug Ransdell, senior vice president, international
finance, and other Comerica bankers met with Lavra's owners in
April 1998 to discuss terms of the acquisition. The bank's value
was agreed to be $34.5 million, based on a multiple of Lavra's
earnings, according to the complaint.

In the spring of 1998, Comerica met with the Brazilian Central
Bank concerning the acquisition of Banco Lavra. And in July
1998, a third meeting was held to finalize the discussions about
the acquisition of Lavra by Comerica.

Shortly after this meeting, the complaint alleges that
Comerica's board of directors told its officers it had no
intention of acquiring the Brazilian bank. But Ransdell
proceeded with the acquisition anyway, according to Brewer.

"We allege that Comerica did not disclose that its executive
officers had no intention of obtaining board of directors
approval for any acquisition of a bank in Brazil," said Brewer.

The lawsuit alleges that by early October 1998, the Papas were
told that Comerica would sign a strategic alliance to show their
"good will and good faith." Comerica continued to lead Banco
Lavra's shareholders to believe that the acquisition was
proceeding as planned, and the strategic alliance agreement
would serve as a "bridge" to the acquisition, the complaint
states.

The Papas said in the lawsuit that Comerica insisted that
Lavra's Sao Paulo operation become a lean business with its
(most profitable) retail business eliminated and its staff and
overhead structure altered to conform to the international
finance business model that Comerica had promised to bring to
Banco Lavra.

"Ransdell admitted he moved ahead with the acquisition despite
the board's objection. Now the Papas are bankrupt," said Brewer.

CONTACTS:  Shirleybarr Public Relations
           Shirley Barr, 713-622-4747
           713-805-2711 (cell)


CEMIG: Releases July 28 Supervisory Board Resolutions
-----------------------------------------------------
The CEMIG supervisory board meeting held on Wednesday, July 28,
2004, decided on the following items:

1. Ratification of signature of the agreement with the Minas
Gerais State Planning and Management Secretariat, for execution
of network extension works on the Jaiba Project.

2. Authorization for contracting of consumption meter reading
services, under the Central Distribution Commercial Relationship
Management Unit, for the regions of Venda Nova, Savassi, Sabara,
Caete, Nova Lima and Santa Luzia.

3. Authorization for acquisition of office material and
information technology supplies via WEB.

4. Approval of Project: Updating of Microsoft Product Licenses.

5. Authorization to change the quantity and form of acquisition
of vehicles for the company. Re-ratification of CRCA.

6. Ratification of signing of the contract with Central
Termeletrica de Cogeracao S.A., with the agreement of FORLUZ,
for sub-letting of an area in the Julio Soares Building in Belo
Horizonte, Minas Gerais State.

7. Ratification of signing of the contract with Central
Hidreletrica Pai Joaquim S.A., with the agreement of FORLUZ, for
sub-letting of an area in the Julio Soares Building in Belo
Horizonte, Minas Gerais State.

8. Change in the modality of contracting of engineering services
and works for construction of a residence and/or establishment
for supervision of the works for those affected by the Irape
hydroelectric plant.

9. Ratification of advance against future increase of capital in
Usina Termeletrica Barreiro S.A.

10. Authorization for signing of amendments to the EPC Contract
signed with Consorcio da Hidreletrica de Aimores and Consorcio
Brasileiro de Aimores, for reprogramming of the civil works of
the Aimores Hydroelectric plant. Re-ratification of CRCA.

11. Authorization for contracting of independent auditors.

12. Authorization to change the limits date for establishment of
the right to receive Interest on Equity to the Company's
stockholders from 11 Jun 2004 to 10 Jun 2004. Reratification of
CRCA.

13. Review of Budget Proposal for 2004 approved.

14. Authorization for adoption of the procedures necessary for
presentation of the documentation for prequalification of Cemig
in Aneel Auction No. 001/2004.

15. The Board received, and authorized disclosure of, updated
Financial Projections for Cemig for the period 2004 to 2008.

CONTACT: Companhia Energetica de Minas Gerais (CEMIG)
         Av.Barbacena, 1200
         Santo Agostinho - CEP 30190-131
         Belo Horizonte
         Brasil
         Fax:   (0XX31)3299-3934
         Phone: (0XX31)3299-4015


CEMIG: Tenders Infovias Assessment Deal
---------------------------------------
Brazilian power outfit Cemig is soliciting bids for a contract
to evaluate the status of its telecom subsidiary Infovias and
television cable company Way, says Business News America.

The tender, which will close August 26, could open the way for
the sale of Infovias. Company executives had discussed a
possible divestment last May.

Infovias uses Cemig's transmission and distribution network to
host other carriers. Its service spans more than 1,300
kilometers of fiber-optic lines in Minas Gerais. To date,
Infovias has invested some US$130 million in its networks.


EMBRATEL: Extends Exchange Offer Expiration Date
------------------------------------------------
Embratel Participacoes S.A. (Embratel Holdings) (BOVESPA: EBTP4;
EBTP3 - NYSE: EMT) announced Wednesday that its subsidiary,
Empresa Brasileira de Telecomunicacoes S.A.-Embratel (Embratel),
has extended the expiration date of its offer to exchange up to
US$275 million aggregate principal amount of Embratel's
registered 11.0% Guaranteed Notes due 2008 (the "New Notes") for
any and all of Embratel's outstanding unregistered 11.0%
Guaranteed Notes due 2008 (the "Old Notes").

The new expiration date for the exchange offer will be 5:00
p.m., Eastern Standard Time (EST) on August 6, 2004, unless
extended.

The Exchange Agent has informed Embratel that, as of 5:00 p.m.
(EST) on July 28, 2004, approximately U.S.$272,104,000 in
aggregate principal amount of its Old Notes had been tendered in
the Exchange Offer. This amount represents approximately 98.95%
of the outstanding Old Notes.

The terms of the exchange offer and other information relating
to Embratel Holdings and Embratel are set forth in a prospectus
dated June 29, 2004. Copies of the prospectus and the related
letter of transmittal may be obtained from the exchange agent --
Deutsche Bank Trust Company Americas, Corporate Trust and Agency
Group, 60 Wall Street, New York, New York 10005, Attn: Corporate
Market Services, telephone (800) 735-7777, fax number (615) 835-
2700.

This announcement is neither an offer to sell nor a solicitation
of an offer to buy or exchange the New Notes or the Old Notes.
The exchange offer is made solely by the prospectus dated June
29, 2004.

Embratel is the premium telecommunications provider in Brazil
and offers an ample variety of telecom services -- local and
long distance telephony, advanced voice, high-speed data
transmission, Internet, satellite data communications, and
corporate networks. The company is a leader in the country for
data services and Internet, and is highly qualified to be an
all-distance network carrier in Latin America. Embratel's
network spreads countrywide, with almost 29 thousand kms of
optic cables, which represents about one million and sixty-nine
thousand km of fiber optics.

CONTACT:  Silvia M.R. Pereira, Investor Relations
          Tel: (55 21) 2121-9662
          Fax: (55 21) 2121-6388
          E-mail: silvia.pereira@embratel.com.br
                  invest@embratel.com.br



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

ENERSIS: Reports Lower Net Profit in the 1H04
---------------------------------------------
Chilean power sector holding Enersis (NYSE: ENI) saw its net
profit drop in the first half of 2004 after it sold some of its
local assets, reports Business News Americas.

In a statement, the Company revealed net profits of CLP13.7
billion (US$21.5mn) in the first half of the year, down from
profits of CLP40.1 billion in the same year-ago period.

In the first half of 2003, Enersis sold its Rio Maipo
distributor, 172MW Canutillar hydro plant and Infraestructura
2000 holding.

Meanwhile, operating revenues improved 13% to CLP1.43 trillion,
reflecting the recovery of the Company's energy sales across the
region, part offset by a 14% increase in operating costs to CLP1
trillion and a 5.1% increase in administration and sales costs
to CLP94.9 billion.

The Company reduced its non-operating losses 26.2% to CLP161
billion from losses of CLP218 billion in the same period of
2003, despite the fact that the 2003 result included the impact
of the sale of Rio Maipo, Canutillar and Infraestructura 2000.

The improvement is mainly due to a 15.9% reduction of debt to
US$6.19 billion in June 2004 from US$7.36 billion in June 2003.

The combination of higher operating profits and lower non-
operating losses added up to a 122% increase in before-tax
profits to 170bn pesos. But this positive increase was mainly
absorbed by a 93.9% increase in taxes to 112bn pesos due to
differed taxes mainly in Argentina, the statement said.

Enersis S.A. is an electricity utility company primarily
engaged, through its principal subsidiaries and related
companies, in the generation, transmission and distribution of
electricity in Chile, Argentina, Brazil, Colombia and Peru. The
Company has over 10 million customers. Endesa Spain acquired
control of Enersis in April 1999, and owned 60.6% of Enersis'
outstanding shares at December 31, 2003. The Company operates
its electricity generation business through Endesa-Chile.
Enersis' electricity distribution business has been conducted
through Chilectra, Rio Maipo, Edesur, Cerj, Coelce, Codensa and
Edelnor. Enersis remained focused on the electricity sector,
although it also has small operations in other businesses, such
as real estate, electrical parts procurement, computer services
and infrastructure projects.

CONTACT:  ENERSIS SA
          Santo Rosa 76
          Santiago, CHILE
          Phone: (562) 688-6840
          Web Site: http://www.enersis.cl

          TOP EXECUTIVES:
          Pablo Yrarrazaval, Chairman
          Mario Valcarce, CEO
          Rafael Miranda, Vice Chairman
          Alfredo Ergas, CFO
          Domingo Valdes, Gen. Counsel


TELEFONICA CTC: S&P Removes Ratings From CreditWatch
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BBB' long-term
counterparty credit rating on Compania de Telecomunicaciones de
Chile S.A. (CTC) after the closing of the sale of its mobile
subsidiary to Telefonica Moviles (TEM). The ratings were removed
from CreditWatch, where they had been placed on May 20, 2004.
The outlook is now stable.

On July 23, 2004, TEM and CTC signed the contract to sell off
CTC's mobile business (Telefonica Movi Chile S.A.) at US$1.3
billion, including about US$253 million to pay down Telefonica
Movil Chile's debt to CTC. As previously stated, Standard &
Poor's expects CTC to apply the proceeds of the transaction (net
of a US$800 million extraordinary dividend payment) to reduce
debt. "The lower leverage should offset lower mobile revenues
and EBITDA (of about 30% and 20%, respectively), allowing the
company to maintain a robust financial profile," said Standard &
Poor's credit analyst Ivana Recalde. "We expect CTC to maintain
a solid financial profile, as reduced debt levels, a lower
capital expenditure program, and still solid and stable pro
forma cash generation from the fixed-line businesses should
compensate for the increased exposure to regulatory pressures
and expected lower growth of the remaining more mature business
lines. These conditions justify the stable outlook."

CTC, Chile's largest telecommunications provider, enjoys a
leading competitive position in the Chilean telecommunications
sector and a moderate financial policy that is enhanced by the
strength and expertise of its major owner, Telefonica de Espana
S.A. These strengths are partially offset by regulatory risk and
tariff revisions, which could result in aggressive interference
in CTC's local-service pricing strategy. In addition, CTC faces
increasing competition in most segments. As of June 2004, CTC
had consolidated debt of about US$1.4 billion.

ANALYSTS: Ivana Recalde, Buenos Aires (54) 114-891-2127
          Marta Castelli, Buenos Aires (54) 114-891-2128



===========
G U Y A N A
===========

* Guyana's Anti-Poverty Program Gets $8.8M Boost From IMF
--------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the second review of Guyana's economic performance
under its SDR 54.55 million (about US$73 million) Poverty
Reduction and Growth Facility (PRGF) arrangement, (see Press
Releases No.02/42 and No.03/152). This decision entitles Guyana
to the release of a further SDR 5.97 million (about US$8.8
million) under the arrangement.

The Executive Board also approved Guyana's request for waivers
on the non-observance of the end-December 2003 quantitative
performance criteria on the net foreign assets of the Bank of
Guyana, and three end-December 2003 structural performance
criteria.

Following the Executive Board's discussion of Guyana on July 26,
2004, Takatoshi Kato, Deputy Managing Director and Acting Chair,
said:

"Guyana's macroeconomic performance has been broadly in line
with program expectations, despite a difficult security and
political situation and wage pressures. Important progress has
been made in advancing key structural reforms in the fiscal,
governance, and public enterprise areas. Nevertheless, growth
has remained weak, reflecting structural weaknesses and the
difficult political situation. Accelerating the pace of poverty
reduction remains an important challenge. Moreover, Guyana's
debt burden remains high, even following debt relief under the
HIPC Initiative.

"The authorities' medium-term program, embodied in the Poverty
Reduction Strategy Paper (PRSP), seeks to address these
challenges on the basis of prudent macroeconomic policies,
including sustained tax reform, the introduction of a value-
added tax in 2006, careful wage policies, adherence to strict
limits on external debt, and prudent monetary and exchange rate
policies.

"Sustained structural reform remains key to promoting private
sector development, diversifying the economy, and achieving the
poverty reduction and growth objectives of Guyana's PRSP. The
2004-05 agenda focuses on continuous restructuring in the state-
owned sugar and bauxite companies, and strengthening the
regulatory framework of the domestic banking system. In
addition, budgetary procedures will be further improved, and
social spending better monitored and targeted.

"To improve the quality and efficiency of public spending and
safeguard debt sustainability, the authorities plan to establish
a five-year rolling Public Sector Investment Program, to conduct
feasibility studies for all large projects, and to strengthen
procurement procedures. In this context, the authorities have
committed to keep the planned construction of a sports stadium
within the program's fiscal, debt, and social spending targets,
and to take compensatory measures, if necessary, on the basis of
a feasibility study.

"Going forward, strong efforts to safeguard debt sustainability
and steadfast implementation of macroeconomic and structural
policies in line with the PRSP will provide a solid basis for
sustained progress toward poverty reduction," Mr. Kato said.

CONTACT: IMF External Relations Department
         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278

         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772

         Web Site: www.imf.org



===============
H O N D U R A S
===============

* Honduras Secures $20M IADB Loan for Social Programs
-----------------------------------------------------
The Inter-American Development Bank announced Wednesday the
approval of a $20 million soft loan to Honduras to support a
comprehensive social safety network program that will offer
subsidies to poor families as incentives to raise the demand for
nutritious food, improve the health of infants, pregnant women
and lactating mothers, and raise primary school enrollment and
attendance.

The program, which will focus on the poorest municipalities of
Honduras, is based on the experiences and lessons learned from
other IDB-supported conditional cash transfer programs with
proven results in Mexico, Colombia, Ecuador and Nicaragua.

The program, which will be carried out by the Honduran Family
Allowance Program (PRAF), will provide female heads of
households cash bonuses for health, nutrition and education,
promoting women's active participation in improving their
families' welfare as well as appreciation for the roles they
play in their communities.

"The new program is an important element in the Honduran social
safety network," said IDB project team leader Jennelle Thompson.
"It offers beneficiaries an attractive package to address health
and education issues using economic incentives and working
directly with mothers."

"It also emphasizes the monitoring of health and nutrition of
children under five in order to promote adequate development
during early childhood, a crucial stage of growth," Thompson
added. "Education incentives help offset the cost of
opportunity, preventing children from dropping out of school due
to the need to work to contribute to their families' income."

Bonuses will have higher values and will be paid out twice more
often than those offered during PRAF's previous stage. The
health and nutrition services offered will be simplified and a
new monitoring system will be employed to verify that
beneficiaries comply with the responsibilities they assume under
the program.

The use of the subsidies is not tied, leaving to each woman head
of household the decision of how to use the money. In exchange
for bonuses, families must attend educational workshops and meet
health care schedules for infants, pregnant women and lactating
mothers. The program will also provide subsidies for childbirths
at health care centers and disseminate information on hygene,
nutrition and prevention of HIV/AIDS and domestic violence.

The school bonuses are for families with children between the
first and the sixth grades that agree to keep them in school and
limit unjustified absences. The program also offers subsidies to
school parents associations to support the purchase of
educational materials, small works to maintain school buildings,
equipment or furniture and teachers' participation in training
workshops.

The new program will provide resources to strengthen the PRAF
and improve the efficiency and effectiveness of the Honduran
social safety network. It will support both the standardization
of existing human capital programs and capacity building for
organizations involved in the program.

The new program is expected to promote the demand for health,
nutrition and education services for the poor, as well as to
foster behavioral changes among its beneficiaries so they may
continue to build their human capital. Once the effectiveness of
the program is proven, it may be expanded gradually with
resources freed up due to the reduction of Honduras' external
debt and with contributions from donor countries and
international development agencies.

The program reflects the IDB strategy of supporting Honduras'
poverty reduction efforts through investments in projects to
increase human capital and raise productivity. The IDB is also
coordinating its work with donor countries and other
international agencies active in Honduras.

The loan is for 40 years, with a 10-year grace period. Annual
interest rates will be 1 percent during the first decade and two
percent thereafter. Local counterpart funds for the program will
total $2.2 million.

CONTACT: Mr. Daniel Drosdoff
         Press and Information Officer
         Inter-Amrerican Development Bank - Caribbean
         Tel. (202) 623-2407
         danieldr@iadb.org

         Web Site: www.iadb.org



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

AEROMEXICO: Abandons Utah Flight Due to New US Customs Policy
-------------------------------------------------------------
A policy implemented by U.S. Custom officials starting May
forced Mexican air transportation Aeromexico to cancel a new
direct flight from Mexico City to Salt Lake City.

According to an AP report, the inaugural flight was supposed to
arrive at 11:55 p.m. Tuesday, but it never left Mexico.

Under the new policy, customs officials have refused to service
new commercial and private international flights into Salt Lake
City that don't arrive between 8 a.m. and 4:30 p.m., Monday
through Friday.

In a July 9 letter, Nat Aycox, director of field operations for
the U.S. Customs office in San Francisco, said the agency's
employees in Utah are overworked, understaffed and unable to
work an additional late-night flight.

"If we were to grant your request, we would be asking our
officers to work until (1 a.m. or 2 a.m.) during the middle of
the week and still have to be back for the normal cargo
operations at (8 a.m.)," he said.

According to AP, Aeromexico will continue to offer direct
flights from Mexico City into Salt Lake City on Friday and
Saturday nights, but have canceled the intended expanded service
with Tuesday flights.


CINTRA: Shows 2Q04 Net Loss of MXP470M
--------------------------------------
CINTRA, S.A. DE C.V., (BMV:CINTRA), Mexico 's leading air
transportation system reported its non audited results for the
second quarter 2004, emphasizing the following:

Highlights:

Load Factor                        64.0%
Total Revenues (million pesos)     8,359
EBITDAR (million pesos)            1,037
Operation Loss (million pesos)      (62)
Net Loss (million pesos)           (470)


Second Quarter 2004 compared to Second Quarter 2003:

Comparative Highlights          Second Quarter

                                2004    2003    Variation
Load factor                    64.0%  61.1%     2.9 p.p.
Total revenue (million pesos) 8,359   7,291        14.6%
EBITDAR (% of revenue)        12.4%    5.7%     6.7 p.p.
Operation Loss (million pesos) (62)   (619)        90.0%
Net loss (million pesos)      (470)   (729)        35.5%

(All figures are expressed in pesos of equivalent purchasing
power as of June 30, 2004, unless specified otherwise. Financial
Statements meet Mexican GAAP)

Total Revenue increased 14.6% due to the growth in all items,
regarding the second quarter 2003. The increase in EBITDAR is as
result of the increase in total revenue, which compensated the
6.5% increase in Operation expenses, generated by the rise in
jet fuel expenditure, commissions to agents and maintenance. It
is important to mention that as result of different cost
reduction programs we have obtained savings in insurance,
passenger service, promotion and sales, and administration and
IT.

The above result decreased by capital expenses -which increased
6.3% than 2Q 2003-, generate an Operation Loss of 62 million
pesos, 90.0% lower than the same period 2003.

CINTRA obtained a net loss during the quarter of 470 million
pesos lower in 35.5% than the one from the same period 2003.


Available seat and
Revenue passenger kilometers     First Quarter
                                 2004  2003  Variation

ASK's (millions)               10,380 9,887  5.0%
RPK's (millions)                6,644 6,041 10.0%
Yield
(Passenger Income/RPK)(pesos)  1.0296 1.0093 2.0%
ASK/Cost (pesos)               0.793  0.784  1.1%

During the period April - June 2004 the Available Seat
Kilometers (ASK's) reported 10,380 million, higher in 5.0% than
2Q  2003, as a result of the 2.0% increase in Operations
compared to the same period last year.

The demand expressed in Revenue Passenger Kilometers (RPK's) for
the 2Q 2004 was 6,644 million, 10.0% higher than the same period
2003, as a result of the 6.6% increase in passengers.

The average passenger income per RPK (yield) reached 1.0296
pesos during the quarter, 2.0% higher than the same period 2003,
in spite of the competition in the domestic market.

The ASK/Cost increased 1.1% during the second quarter 2004,
reaching 0.793 pesos, as a result of the increase in operation
expenses, mainly in jet fuel expenditure. The ASK/Cost not
considering the jet fuel expenditure cost was 0.652 pesos, lower
in 4.0% than the same period 2003.

A. Operation Results.

Revenues

Total revenues during the period April - June were 8,359 million
pesos, that represents a 14.6% increase in real terms versus the
same period 2003, such growth was generated by the 32.8%
increase in other, 13.7% in cargo, 13.4% in international
markets, 12.5% in excess baggage and 11.3% in domestic markets.

In U.S. dollars terms, total revenues were 739 million during
the quarter that shows a 10.8% increase with respect to the same
period 2003.

Operation Expenses

Total operation expenses during the second quarter 2004 were
7,322 million pesos, 6.5% lower than the same period 2003.

Personnel cost was 2,509 million pesos, 0.1% lower than the
second quarter 2003, which represents 30% of total revenue
during the period, compared to 34.4% in 2Q 2003.

Jet fuel expenditure was 1,502 million pesos, superior in 41.8%
than the same period 2003, this rise was due to the 34.7%
average increase in the jet fuel price, compared to the average
prices during the second quarter 2003, as well as the 2%
increase in operations; another issue is the devaluation of the
Mexican peso, which average exchange rate during the quarter was
$11.38 Mexican pesos per U.S. dollar than $10.46 Mexican pesos
per U.S. dollar during the same period last year.

Aircraft and traffic servicing were 866 million pesos during the
period, 0.1% higher than those in the same period 2003. It is
important to mention that we kept the same amount than 2Q 2003
in spite of the 2% increase in operations.

Maintenance was 743 million pesos, 2.0% higher than the second
quarter 2003, due to the 2% increase in operations, percentage
equivalent to the increase in operations, and the aircraft
maintenance.

Passenger service was 228 million pesos during the quarter, 1.8%
lower than the same period 2003; it is important to consider the
6.6% increase in passengers.

During 2Q 2004 Commissions to agents were 569 million pesos,
8.9% higher than the same quarter 2003; during the period total
revenue increased 14.6%, higher in 5.7 percentage points versus
commissions to agents; also, the relation between this expense
and total revenue represents 6.8% during the period, than 7.2%
in the same quarter 2003.

Promotion and sales during the period April - June 2004 reached
507 million pesos, which reflects a decrease of 1.5% compared to
the same period 2003, as a result of the implementation of an
austerity program, nevertheless, the advertising campaigns
reinforcement that represented an increase in passengers.

Insurance figures reached 111 million pesos during the second
quarter 2004, 28.3% lower than the same period 2003, as a result
of the re-negotiations of premiums for the 2004 - 2005 program.

Administration and IT expenses were 287 million pesos, lower in
0.6% than the same period 2003, in spite of the implementation
of different IT projects, the development of internet programs
and the installation of automatic counters, all of them related
to Club Premier of Aeromexico.

Operation expenses during the period were 648 million dollars,
higher in 3.0% than the same quarter 2003; due to the increase
in Jet fuel expenditure.

EBITDAR

EBITDAR was 1,037 million pesos during the quarter,  a 622
million peso increase that represents 150.0% than the second
quarter 2003.

Capital expenses

Capital expenses were 1,100 million pesos during 2Q 2004, 6.3%
higher than the same period 2003, due to the flight equipment
rents equivalent to 885 million pesos, 13.8% higher than the
same quarter last year originated by the fleet renewal.

Regarding depreciation, it reached 214 million pesos, 16.3%
lower than the same period 2003, as a result of the changes in
the fleet composition of Cintra's companies, like the ground of
own Metro equipment in Aerolitoral and the incorporation of
other leased equipment.

Operation loss

During the period April - June 2004 the operation loss was 62
million pesos, 90% lower than the same period 2003.

Integral Financing Expense

Integral Financing Expense during the second quarter 2004 was
212 million pesos, compared to 7 million pesos during the same
quarter 2003, where financial expenses were 97 million pesos,
that shows a 8.6% increase versus the same period 2003, as a
result of the financial cost applied to Aeromexico for the pre-
payment of the accounts receivable bursatilization program in
the U.S.A.

Foreign exchange loss was 121 million pesos, compared to 84
million pesos foreign exchange gain during the same period 2003,
as a result of the Mexican peso devaluation.

During the period April - June 2004 monetary position obtained a
positive figure of 6 million pesos, compared to 1 million pesos
loss during the same period 2003, this variation is due to the
composition of the monetary items, as well as the inflation of
the period.

Net loss

During the 2Q 2004 Cintra obtained a 470 million pesos net loss,
lower in 35.5% than the obtained during the same period 2003.

Relevant events

These are the most relevant events during the second quarter
2004:

Fleet renewal process in Aeromexico

On July 26th, 2004 the Board of Directors of Cintra considered
the advantages of the incorporation of ten aircraft Boeing 737-
700 to Aeromexico's fleet, to replace the MD 82-83 aircraft and
Boeing 757; the replacement that will be done in two stages. The
first one with immediate effect will be for five aircraft, four
of them from the Boeing proposal and one through operating
lease.

The second stage to replace five Boeing 737-700, four of them
under a "sale and lease back" scheme and one through operating
lease, is subject to be approved by the Structural Change
Committee.

For the second stage effects it is responsibility of the
Chairman of the Board of Aeromexico or its CEO to exercise the
positions of this stage, if in his judgement, it results risky
the replacement of the aircraft.

Increase in the jet fuel price

An external element not under Cintra's control is the jet fuel
price, which average price per liter during the second quarter
2004 was 3.49 pesos, 34.7% higher than the same period 2003;
this issue directly impacts the results of Cintra's companies
and reduce the positive effect of the impIemented actions in
order to generate savings.

Mexicana de Aviacion restarts Operations at the JFK Airport of
New York

In order to offer a better service to its passengers, Mexicana
concluded negotiation to restart direct flights to the JFK
Airport in New York since July 1st.

Mexicana de Aviacion New Alliances

On April 1st Share Code Agreements with American Airlines and
Iberia started operations.

Foreign exchange

The parity of the Mexican peso during the quarter reached $11.38
Mexican pesos per U.S. dollar against $10.46 Mexican peso per
U.S. dollar during the same quarter 2003.

Securitization program pre-payment

During the first week of April 2004, Aeromexico totally prepaid
with own funds its account receivable securitization program in
the U.S.A.

Changes in the fleet composition

In order to improve their operation programs as well as offering
better service, during the period Mexicana incorporated an
Airbus A 319, Aerolitoral incorporated three Embraer ERJ145 LR
aircraft, the first regional jets of its type in Mexico, and
Aeromexico incorporated one Boeing B767 200 and one Boeing B737-
700, these aircraft started operations during July of this year.

Main Accumulated Results January - June 2004:

Revenues

Total revenues during the first semester were 15,892 million
pesos, a 10.5% increase versus the same period 2003 mainly as a
result of a 36.3% increase in other, 11.1% in excess baggage,
7.8% in domestic markets, 7.7% in international markets and 6.5%
in cargo.

In US dollars terms, total revenues during the period January -
June 2004 were 1,422 million dollars, 10.1% higher than those
for the same period 2003, as a result of the increase in all
revenue items.

Operation Expenses

During the period January - June 2004 Operation expenses were
14,192 million pesos, a 2.2% increase than the same period 2003,
as a result of the 21.3% increase in jet fuel expenditure,
originated by the unit price increase, and 3.5% increase in
commissions to agents as a result of the 14.6% increase in
revenues during 2Q 2004. It is important to mention the relation
between operation expenses and total revenues for the first
semester 2004 that represents 87.6% versus 94.3% during the same
period 2003, a 6.7 percentage points reduction, as a result of
different saving measures implemented.

In US dollars terms, operation expenses during the first
semester were 1,271 million dollars, 1.9% higher than the same
period 2003, as a result of the 20.5% increase in Jet fuel
expenditure compared to the first semester 2003.

EBITDAR

During the period January - June 2004 EBITDAR was 1,700 million
pesos, a 1,207 million pesos increase that represents 244.7%
than the same period 2003.

Capital expenses

Capital expenses during the first semester 2004 were 2,202
million pesos, 3.4% higher than the same period 2003, as a
result of 8.6% increase in rents and 12.8% decrease in
depreciation, due to the impact of the parity of the Mexican
Peso.

Operation loss

As a result of the above matters, during the first semester 2004
Operation loss was 502 million pesos, lower in 1,134 million
pesos, that represents 69.3% versus the same period 2003.

Integral Financial Expense

Integral Financial Expense was 168 million pesos during the
period January - June 2004, 40.9% higher than the same period
last year, as a result of a 8.8% reduction in financial
expenses, a 28.0% increase in the positive figure of monetary
position and an important increase in exchange rate.

Net loss

During the period January - June 2004 the net loss was 965
million pesos, 47.4% lower than the same period 2003.

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

CONTACT: CINTRA S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle M‚xico DF
         Phone: (5)448 - 8000
         E-mail: infocintra@cintra.com.mx

         Web Site: www.cintra.com.mx


DIRECTV LA: Mexican Media Company Looks To Acquire Subscribers
--------------------------------------------------------------
A Grupo Televisa SA executive said Tuesday that the Mexican
media company is hoping to buy the 300,000 local clients of
rival DirectTV before the end of the year, reports Reuters

"We think it would make sense to have a single (satellite)
platform in Mexico, however the only thing we would like to buy
are the (DirecTV) customers," said Alfonso de Angoitia,
Televisa's (TLEVISACPO.MX) executive vice president. He declined
to comment on "specific negotiations."

Analysts say the purchase of DirecTV's subscribers would be
unlikely to cause regulatory problems for Televisa as there are
still a number of cable TV companies in Mexico.

DirectTV Mexico is a unit of DirecTV Latin America.


EMPRESAS ICA: Posts MXN377M EBITDA in 2Q04
------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction and procurement
Company in Mexico, announced Wednesday its unaudited
consolidated results for the second quarter of 2004. ICA noted
the following highlights:

- Second quarter revenues rose 39 percent to Ps. 3,105 million,
compared to Ps. 2,235 million recorded in the second quarter of
2003.

- Operating income for the second quarter of 2004 was Ps. 75
million, an increase of 212 percent compared to Ps. 24 million
in the same period of 2003.

- EBITDA generated during the quarter was Ps. 377 million,
equivalent to 12.1 percent of sales. During the prior year
period, the comparable figures were Ps. 112 million and 5
percent, respectively.

- The integral cost of financing was Ps. 25 million, a 43
percent reduction from the same period of 2003.

- General and administrative expenses rose 41 percent to Ps. 299
million from the prior year period, primarily as a result of an
increase in the expenses associated with preparing bid documents
for new projects, which were Ps. 76 million in the second
quarter of 2004, a 276 percent increase from the Ps. 21 million
recorded during the second quarter of 2003.

- During the quarter, ICA was awarded new projects and contract
additions of Ps. 3,590 million. ICA's construction consolidated
backlog as of March 31, 2004 was Ps. 15,551 million, equivalent
to 17 months of work based on the volume of work executed in the
second quarter of 2004.

- Total debt at June 30, 2004 was Ps. 6,997 million, an increase
of Ps. 2,075 million compared to Ps. 4,922 million at June 30,
2003. The increase in total debt primarily reflects the
incurrence of debt in connection with the El Caj¢n hydroelectric
project, which represents 60.4 percent of ICA's total debt at
June 30, 2004. Excluding El Caj¢n, ICA had a decrease of Ps.
1,995 million in total debt compared with the second quarter of
2003.

- Purchase offers were received for the Deprisa and Alsur
subsidiaries, at prices below their book values. The book values
of Deprisa and Alsur were adjusted to equal the estimated sales
price. At the close of the first half of 2004, the estimates for
the previously established recovery values for the main long-
term assets were reviewed, taking into account the present value
of future cash flows. The net effect was a charge of Ps. 54
million to Other Expense.

- ICA recorded a net loss of majority interest of Ps. 112
million in the second quarter of 2004, compared to a loss of Ps.
88 million in the second quarter of 2003.

For additional information, visit:
http://bankrupt.com/misc/ICA_2Q04.doc

CONTACT: Empresas ICA Sociedad Controladora SA de CV
         Mineria No. 145, Edificio Central
         11800 Mexico, D.F.,
         Phone: (212) 688-6840
         Email: inversionistas@ica.com.mx

         Ing. Alonso Quintana
        (5255) 5272-9991 x3468
         alonso.quintana@ica.com.mx

         Web Site: www.ica.com.mx


GRUPO MEXICO: Reports Financial Performance of Units During 2Q04
----------------------------------------------------------------
Grupo Mexico issued details of its 2Q04 financial reports:

HIGHLIGHTS:

Consolidated data on mining operations in the US, Asarco, in
Mexico, Minera M‚xico and in Peru, SPCC, as well as the
transportation division with Ferrocarril Mexicano, Intermodal
M‚xico and Texas Pacifico.

- Emphasis on the performance in sales, EBITDA and profit of our
mining units SPCC and Minera M‚xico (MM) as well as those of
Ferromex compared with previous periods.

- Significant increment in copper production volumes, very
especially MM and SPCC, which increased their copper production
by 12% and 7% during 2Q04 compared to 2Q03.

- Important increase in stripping at Asarco during 2Q04 in order
to open and expose copper ore in the coming months and thus
improve its operating breakeven point and therefore ensure its
operations over the long term at competitive costs, and is
reflected with an increased of waste material moved by 133% (6.4
million MT) compared with the same period of last year.

- Increase in the prices of the metals that we produce: 65% in
copper, 175% in molybdenum, 33% in zinc and 36% in silver, all
year over year.

- Greater consolidated sales in 2Q04 that reached $995.2
million1, 68% higher than total 2Q03 sales, bolstered by the
increment in prices and the greater volumes sold, particularly
copper that was increased by 13%, but also by 11% in zinc, 11%
in gold, 9% in molybdenum and 5% in silver, year over year.

- Greater consolidated operating profit in 2Q04, which reached
$377.4 million, 357% more than that recorded in the same period
of 2003.

- A 190% increment in EBITDA compared to 2Q03 and 9% above that
recorded in 1Q04, totaling $445.8 million with an EBITDA margin
of 44.8% over sales.

- Considerable increment in consolidated net profit during 2Q04
of $197.4 million, compared with a $63.5 million loss in the
same quarter of 2003.

- A prepayment, in accord with that set forth in the credit
contracts, in excess of $137 million in MM's debt coupled with
the amortizations and previous prepayments made in 2004 account
for a considerable $267 million decrease in debt in the first
six months that will allow the adaptation of Minera M‚xico's
financial profile to improve its operating development.

- Early reduction of GMexico's debt when it prepaid a $50
million credit and thus reduced debt by 80% at the holding
company level with resources from the capitalization carried out
in October of last year.

Relevant Events

- On February 3, GMexico/AMC presented a proposal to their
subsidiary SPCC for the possible transferal of the stock of its
subsidiary Minera M‚xico (MM) to SPCC in exchange for additional
SPCC shares.

The Special Committee of Disinterested Directors, formed by
independent directors and minority shareholders of the Board of
Directors of SPCC continues with the detailed analysis in order
to define the best way to "combine" said entities. It is
noteworthy that in principle both companies believe that there
are important benefits to be derived from the possible
combination.

GMexico clarifies that there can be no assurance as to whether
any agreement will be reached with regard to this transaction,
so it made this proposal reserving the right to change its
intentions and plans with respect to the aforementioned
transaction at any time.

Investments

The Group's investment program during the second quarter of 2004
totaled $87.4 million, 68.3% higher than in the same year-
earlier period, of which $70.8 million corresponds to the Mining
Division (AMC) and $16.5 million to the Railroad Division.

Financing

The financial cost of the second quarter of 2004 was $56.6
million, $2.0 million less than in the same quarter of 2003
because of a reduction in the net liabilities of the Group.

Cash and marketable securities at the close of December of 2003
totaled $556.2 million, which yields a net debt of $2,429.8
million vs. $2,081.1 million in June of 2004. This ratio
generates a debt reduction of $348.7 million.

As a consequence of its good performance during 2Q04, MM will
make, in accord with its credit contracts, a prepayment on its
debt in excess of $137 million, which will take effect on the
last day of July of this year. This prepayment will reduce
refinanced debt maturing in 2007 from $881 million to $618
million, equal to 30%, and shows the important capacity and
decision on MM's part to reduce debt in the short term.

Moreover, these important reductions will place MM at
internationally competitive levels in terms of debt that will
allow good development of operating and investment programs.

During the month of June, Ferromex was able to extend the
maturity of its $2,500 million peso (approx. $219 million)
credit with Inbursa, which originally came due in December of
2008, for one year and, likewise, achieved a reduction in its
financial cost in keeping with its improved economic/financial
structure. Furthermore, during the first quarter, this company
liquidated in its entirety the $200 million derived from the
credit obtained in March of last year from a syndicate of banks
led by JP Morgan Chase Bank and Bank of America with cash flow
and the proceeds of several placements of stock market
instruments.

GMexico has achieved the goal that it had announced with respect
to improving the financial profile of its railroad subsidiary by
having converted debt denominated in dollars to pesos at
competitive market rates, including the improvement of
Ferromex's amortization schedule.

MINING DIVISION

AMERICAS MINING CORPORATION

Metal prices maintained their marked upward trend during the
second quarter of 2004, primarily with important increments in
the case of copper 65.2%, molybdenum 175.4% and silver 36.2% in
comparison with 2Q03.

Growth in the demand for copper continued to strengthen in 2Q04
in all consumer economies, especially as witnessed by the
pronounced demand in China and the recovery of the economy of
the United States, which contributed so that there was a deficit
on the market, reducing international metal inventories by 68%
during the first six months of 2004. Analysts' expectations
continue to estimate a deficit in the supply of copper for the
next two years.

Americas Mining Corporation - Financial Highlights

Sales in the mining sector (AMC) increased 92% in 2Q04 to $834
million, while the cost of sales only rose 34.2%, resulting in
net profit 341.7% higher than that of the same year-earlier
period, which was equal to a loss of $73.0 million.

The EBITDA margin as a percentage of sales was increased from
21.6% to 46.2%.

Americas Mining Corporation, incorporated in Delaware is the
holding company for mining operations in Mexico, the United
States and Peru, and is ranked number two worldwide with respect
to copper reserves. It is the number three producer of copper,
the fourth producer of silver and the seventh producer of zinc
in the world.

METAL PRODUCTION

MINERA MEXICO (MM) - Financial Highlights

Copper mining production reached 83,851 MT in 2Q04, 11.7% higher
than production in the same period of 2003. This increment of
8,755 MT of copper came from an additional 5,416 MT contributed
by the Cananea mine and another 4,256 MT from the La Caridad
mine.

These increments in copper production are due primarily to the
ongoing plan to rehabilitate operating equipment and the
productive plant that, in the case of the Cananea mine, allowed
the concentrator plant to process 6.6 million MT of copper ore
versus 5.2 million MT during the same period of last year, an
increase of 27%. In turn, the copper of the same concentrator
plant at Cananea was also benefited by a higher grade ore and
mineral recovery, posting a net 14% increment in copper
produced. The concentrator plant at the La Caridad mine also
recorded higher volumes of copper produced due to an 8%
increment in the volume of ore processed and better metal
recovery.

These volumes, coupled with the increment in metal prices,
caused sales to increase to $333.2 million in the second quarter
of 2004, 81.7% higher when compared with the same period of
2003.

On the other hand, the cost of sales in 2Q04 was $151.4 million,
which is superior to that of the same period of last year by
7.8%. This was mitigated by higher production of copper and the
other materials that we produce, such as molybdenum, which
posted an increment of 40%, and zinc with an increase of 3%.

Minera M‚xico's EBITDA rose $139.7 million to $171.6 million in
2Q04 compared with the same period of 2003 due to the
combination of greater volumes, lower costs and expenses and
better metal prices.

Minera M‚xico reported an increment of 333% in its net profit,
going from a loss of $50.8 in 2Q03 to a gain of $118.6 million
in 2Q04.

Minera Mexico is the largest mining company in Mexico and the
ninth largest copper producer in the world. It operates two
large open pit mines, Cananea, the fourth largest mine in the
world in terms of reserves and the first in terms of "years of
operation", and the metallurgical mining complex La Caridad,
which includes copper smelting and refining, a wire rod plant
and precious metal refining. It also operates four poly-metallic
underground mining units.

SOUTHERN PERU COPPER CORPORATION (SPCC) - Financial Highlights

Copper mining production for 2Q04 was increased by 6.9% to
98,900 MT. This increment of 6,378 MT includes 6,300 MT from the
Toquepala mine, 1,605 MT from the Cuajone mine and a decrease of
1,527 MT in SX/EW production. The increase in the Toquepala
mine's production was due primarily to a 3.1% greater volume of
ore processed, as well as ore grade that was 10% higher. The
increment in the production of the Cuajone mine was also due to
higher grade ore, rising from 0.714% in 2Q03 to 0.815% in 2Q04,
fully mitigating the effect of less tonnage processed. The SX/EW
production of copper decreased by 1,527 MT due to a lower grade
of ore in the PLS.

Product sales totaled $389.0 million in the second quarter of
2004 compared to $168.4 million in the second quarter of 2003,
an increase of 131% that can be attributed to the increment in
the price of metals and greater volumes sold.

EBITDA for 2Q04 was increased by 273% from $56.4 to $210.2
million. At the same time, SPCC's cash on hand increased 143.9%
to reach $331.9 million on June 30, 2004.

The company's net profit was 459% higher than that of the
previous year and totaled $120.9 million compared to $21.6
million during the same period of the year before.

The increments in production and efficiencies achieved represent
a significant step toward the goal of reducing unit costs and
optimizing SPCC's operating cost.

As for SPCC's expansion and modernization program, the Ilo
smelting project is moving ahead on schedule with detailed
engineering work in process in order to finish by the end of
2006.

Additionally, the Company's leaching project at the Toquepala
mine is also progressing on schedule. An $8 million contract for
construction work was awarded to Cosapi, a Peruvian construction
firm, in March 2004. The contract is part of the $70 million
project, which is scheduled for completion in mid-2005 and
projected to save the Company $25 million in annual operating
costs.

Southern Peru Copper Corporation (SPCC) is one of the largest
companies in Peru and the eighth largest copper producer in the
world. The shareholders of SPCC are, directly or through
subsidiaries, as follows: Grupo M‚xico (54.2%), Cerro Trading
Company (14.2%), Phelps Dodge (14.0%) and other common
shareholders (17.6%).

ASARCO, INC. - Financial Highlights

In order to expose areas of copper ore in the near future and
ensure the supply of copper over the long term, Asarco increased
the movement of hardpan at the Mission and Ray mines very
significantly during 2Q04, recording an increment of 258% and
90%, respectively. At the same time, since equipment for
stripping activities was employed, the company posted a
temporary decrease in copper ore moved, which in the case of
Mission was 11% and at Ray 22%. It is expected that during the
coming quarters, the Company can achieve a sustainable breakeven
point per pound of copper for the long term of roughly 70 cents.

Due to the reasons mentioned above, copper production was 30,622
MT in the second quarter of 2004, 31.9% below that of the same
period of 2003.

Despite lower production, Asarco's total sales rose 38% to
$117.5 million in 2Q04 compared to $85.1 million in the same
period of 2003, a situation that was due to the increment in
copper prices.

As a result of the stripping program and having moved an
additional 6.4 MT of hardpan, the cost of sales in 2Q04
increased by $34.5 million year over year. Despite this,
Asarco's EBITDA was $3.5 million in 2Q04.

Asarco reported a net loss of $9.2 million in 2Q04 compared with
$24.9 million in the same period of 2003. Net profit accumulated
to June 30, 2004 was $7.1 million.

The improvement in metal prices at the end of 2003 as well as
the financial restructure carried out in 1Q03 allowed Asarco to
implement the aggressive movement of hardpan and also achieve
important savings in financial costs in the neighborhood of $55
million annually.

Consequently, net interest expenses in 2Q04 were only $7.8
million versus $9.2 million in 2Q03 and coupled with a very
long-term amortization profile whose next significant
amortization is not until the year 2013, the company already has
favorable conditions for better development of its operations
and results in the coming fiscal years.

Asarco, founded in 1899, is a fully integrated copper miner,
smelter and refiner in the United States. It has important
copper and zinc reserves. The open pit mining units at Mission,
Ray and Silver Bell in Arizona include electro-sedimentation
plants at both Ray and Silver Bell. Asarco operates a copper
smelter in Hayden, Arizona; it has a copper refinery and a
copper rod and cake plant in Texas.

RAILROAD DIVISION

GRUPO FERROVIARIO MEXICANO (GFM) - Financial Highlights

The kilometer/load volumes (tons/km) hauled by Ferromex during
2Q04 increased 11% compared to the same period of 2003,
primarily because of an increase in the flow of trade between
Mexico and the United States resulting from the economic growth
of the market.

During the second quarter of 2004, the total tons/km was 8,344,
an increase of 10.9% compared with the same period of the
previous year, which offset in full the loss of revenues due to
the exchange rate effect.

Sales denominated in dollars (US GAAP) witnessed a 3.4%
increment through 2Q04 in comparison with the year before
despite the effect caused by the devaluation of the exchange
rate mentioned above, which recorded an average of 11.41 pesos
to the dollar in 2Q04 compared with 10.48 in the same period of
2003, a devaluation of 8.8%.

Cost of sales in 2Q04 of $100.1 million showed a 6.8% increase
year over year. This effect was almost entirely compensated for
during the period when a significant increment in volumes hauled
was recorded, which allowed for greater service revenues during
the quarter when compared with the same period the year before
despite a 14.0% increment in the cost of diesel.

The EBITDA for the six months ended June 30, 2004 rose 5.9% and
reached $109.4 million with respect to the previous year.
Operating profit was higher than that of the second quarter of
last year by 6.6%, in spite of the significant growth in the
cost of diesel, which is the main intake of rail operations.

Cumulative net profits grew 7% from $39.8 million to $42.6
million through June 30, 2004.

As for investment projects and the acquisition of other assets,
in the second quarter of 2004 $16.5 million were invested, 5.9%
less than the year before. However, the investment budget for
the remainder of the year is higher than the real one during
2003.

As of June 30, 2004, debt totaled $448.7 million, showing a
decrease of 10.9% from the $503.5 million in the same period of
the year before.

This decrease originated in the amortizations paid to Eximbank
of $7.8 million and $6.8 million to Bank of America for the bond
program, carrying out two emissions in December of 2003 for $500
million pesos each with maturities of three and five years,
respectively. With the proceeds a partial payment of $90.0
million was paid against the loan from JP Morgan, Bank of
America and other banks. In the month of March there were two
more emissions for $700 and $345 million pesos each that come
due in four years, nine months and three years, six months,
respectively. With the resulting proceeds and the utilization of
roughly $15.0 million in cash, the $110 million balance on the
loan from JP Morgan, Bank of America and other banks was paid
down.

Ferromex is the largest rail company in Mexico and has the
widest coverage. With a network of 8,500 kilometers of track it
covers 71% of the Mexican territory. Ferromex has five gateways
into the United States as well as four ports on the Pacific and
two on the Gulf of Mexico. Grupo Mexico controls 74% of Ferromex
and Union Pacific 26%.

To see financial statements:
http://bankrupt.com/misc/GrupoMex_2Q04.pdf

CONTACT:  Mr. German Larrea Mota Velasco
          Chairman & CEO
          GRUPO MEXICO
          Av. Baja California No. 200
          Colonia Roma Sur
          06760 Mexico, D.F.
          Tel. Conm. 52 (55) 5080-0050


GRUPO TFM: Posts $184.9M Net Revenue for 2Q04
---------------------------------------------
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and its
subsidiaries ("TFM") reported financial results for the second-
quarter and first six-month period of 2004.

SECOND QUARTER 2004 OPERATIONAL RESULTS

Consolidated net revenue for the three months ended June 30,
2004, was $ 184.9 million, which represents an increase of $8.3
million, or 4.7 percent, from revenue of $176.6 million for the
same period in 2003. Improved revenue resulted mainly from an
increase in volume of 8.0 percent in general cargo, driven by
truck-to-rail conversion and economic recovery in the Chemicals
and Petrochemicals and Metals and Minerals segments, and
improved Mexrail revenue of $0.9 million. A decrease of 7.0
percent in automotive industry volume, intermodal traffic that
was flat for the quarter, and an 8.7 percent devaluation of the
peso, which had a $7.6 million effect on revenue, offset
improved revenue in the quarter.

Consolidated operating profit for the second quarter of 2004 was
$37.3 million, representing an increase of $1.2 million from the
second quarter of 2003. The operating ratio (operating expenses
as a percentage of revenue) for the second quarter of 2004 was
79.8 percent including Mexrail operations and 77.3 percent
without Mexrail operations. Operating expenses were impacted by
increased fuel prices of $3.8 million and by higher Tex Mex
costs, other than fuel, of $0.8 million. Operating expenses were
also impacted in the period by $3.0 million higher casualty and
insurance expenses due to the recovery of credits and casualty
in the second quarter of 2003. Mexrail operating loss for the
second quarter of 2004 was $1.0 million.

FIRST SIX MONTHS 2004 OPERATIONAL RESULTS

Consolidated net revenue for the six months ended June 30, 2004,
was $352.4 million, which represented an increase of $7.3
million, or 2.1 percent, from the six months ended June 30,
2003. During the first half of 2004, revenue was negatively
impacted by approximately $6.5 million related to the downturn
in the automotive segment, and by approximately$ 7.2 million
effect on revenue due to depreciation of the peso. These
negative effects were offset by the Company's truck-to-rail
conversion efforts, and recovery in the chemical and
petrochemical industry, steel and other segments, which overall
generated an increase in volume of 5.7 percent over the same
period of 2003.

Operating profit for the six months ended June 30, 2004, was
$63.1 million, resulting in an operating ratio of 82.1 percent
with Mexrail and 79.4 percent without Mexrail. Operating results
were impacted in the period by improved revenue; an increase of
$5.9 million in fuel expense over the same period of 2003, which
represented 10.8 percent of revenue; and higher insurance and
casualty related costs when compared with the 2003 first half.

FINANCIAL EXPENSES

Net financial expenses incurred in the six months ended June 30,
2004, were $55.7 million, including $4.1 million in foreign
exchange loss resulting from the depreciation of the Mexican
peso relative to the U.S. dollar.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2004, accounts receivable had decreased to $184.5
million from $ 192.3 million at December 31, 2003.

TFM made capital expenditures of $12.7 million and $24.3 million
during the second quarter of and first six months 2004
respectively, investing in the improvement of TFM and Mexrail
lines.

As of June 30, 2004, TFM had an outstanding debt balance of
$933.6 million, including $69.9 million of short-term and $863.7
million of long-term debt. Debt included $186.4 million in an
amended term loan.

RECENT EVENTS

VAT LAWSUIT

On January 19, 2004, the Mexican Treasury delivered to TFM a VAT
Certificate representing the historical claim amount of
approximately $195 million as of that date, but excluding
additional amounts due to TFM from the effect of inflation and
interest accrued on the original claim amount. On January 20,
2004, the Mexican Fiscal Administration Service placed an
attachment to the VAT Certificate, stating that the documents
that support the value of the VAT Certificate do not comply with
applicable tax requirements.

As reported previously, TFM has not yet received an official
decision from the Fiscal Court regarding the claim the company
filed requesting to compel the government to reissue its Special
Certificate to include inflation and accrued interest. The
Company has knowledge that the Fiscal Court voted against TFM's
claim. Once TFM is notified, the Company will bring to the
Federal Court all proper petitions and protections, which
support its rights and are consistent with the rulings of the
Federal Court over the past year. The Company believes that
TFM's claim to have the VAT certificate updated for interest and
inflation accruals will be upheld by Mexico's legal system.
Details on the VAT litigation can be found in previous Company
filings and quarterly reports.

GRUPO TFM PUT

As previously stated, Grupo TFM also requested and received from
a federal judge an injunction, which blocked the government from
exercising its put option. The ability of the Mexican government
to exercise its put option has been suspended indefinitely until
the put lawsuit is resolved.

Grupo TFM acknowledges its intention to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its intention to comply once the
pending steps from the original Agreement are completed, which
should occur after the VAT claim has been reimbursed to TFM
according to the provisions of the law to determine the real
value of the shares.

DEBT REFINANCING

On June 24 the Company refinanced its term loan and Commercial
Paper program under one single term loan and extended the final
maturity date to September 2006. Amounts outstanding under the
amended term loan facility are secured by a first priority
conditional pledge on the locomotives and other rolling stock
owned by TFM's subsidiary, Arrendadora TFM, S.A. de C.V.

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


GRUPO TMM: Records Improved 2Q04 Revenue
----------------------------------------
Grupo TMM, S.A. (NYSE:; BMV:TMM A; "TMM"), a Mexican multi-modal
transportation and logistics company and owner of the
controlling interest in Mexico's busiest railway, TFM, reported
revenue from consolidated operations of $241.6 million for the
second quarter of 2004, compared to $228.8 million for the same
period of 2003.

Improved revenue was reported at rail, port and specialized
maritime operations. Grupo TMM's second quarter 2004
consolidated operating income improved $5.3 million, from $34.5
million in 2003 to $39.8 million in 2004. Net profit for the
quarter was $8.1 million, or $0.14 per share, compared to $37.2
million, or $0.65 per share for the prior-year period. However,
net results for the second quarter of 2003 included a gain of
$60.8 million from the sale of the Company's 51 percent interest
in TMM Ports and Terminals to SSA Mexico. Without this gain, net
results would have been a loss of $23.6 million in the second
quarter of 2003. Selling, general and administrative (SG&A)
costs, including restructuring charges, in the second quarter of
2004 decreased $3.3 million compared to the same period of last
year.

For the first half of 2004, revenue from consolidated operations
were $460.1 million, compared to $448.0 million for the same
period of 2003. Improved revenue was reported at rail, port and
specialized maritime operations. Grupo TMM's first six months
2004 consolidated operating income improved $3.9 million, from
$61.6 million in 2003 to $65.5 million in 2004. Net results for
the 2004 first six months decreased $10.6 million from the year-
earlier period. As noted above however, results for the first
six months of 2003 included a gain of $60.8 million from the
sale of the Company's 51 percent interest in TMM Ports and
Terminals to SSA Mexico. SG&A costs, including restructuring
charges, in the first six months of 2004 decreased $2.9 million
over the prior-year period.

As anticipated, the Company continued to benefit from improving
trade growth on the NAFTA corridor. During 2004, Mexican trade
in the manufacturing sector without including in-bond grew 14.1
percent in the second quarter, and 12.3 percent during the first
six months of this year compared to the prior year. This growth
was reflected in an increase in the Company's volume and
revenue, beginning in March, compared to last year. The Company
believes that trade growth should continue to improve in 2004,
particularly if Mexican automobile manufacturing returns to
normalized levels in the second half of the year.

At TFM, second quarter 2004 results reflected the growth and
improvement in NAFTA, as both volume and revenue results
exceeded the last five quarters. During the second quarter,
revenue and volume grew 4.5 percent over the same period of last
year, and revenue improved ten percent and volume improved eight
percent compared to the first quarter of this year.

The following chart reflects the division's segment results,
comparing the second quarter of 2004 with the same period of
2003:

                                    Revenue
  --------------------------------------------
Chemical                                +24%
  --------------------------------------------
Industrial                               +4%
  --------------------------------------------
Cement, Metals and Minerals              +6%
  --------------------------------------------
Agroindustrial                           -1%
  --------------------------------------------
Intermodal                                0%
  --------------------------------------------
Automobile                               -6%
  --------------------------------------------

At Specialized Maritime, which provides service to the oil
production and exploration sectors, revenue improved 20.2
percent in the second quarter and 12.3 percent in the first six
months of 2004, both periods as compared to 2003. As a
consequence, operating results increased $3.5 million in the
second quarter and $5.3 million for the first six months of 2004
as compared to the prior year. Results were positively impacted
by an increased number of chartered vessels in the oil
production and exploration sectors, by additional product
tankers and a renewed contract with Pemex, and by higher volume
and revenue from parcel tanker additions made in the fourth
quarter of 2003. Tugboats at Manzanillo continued to enhance
gross profit, as vessel calls increased 10.6 percent, quarter
over quarter.

In the Ports and Terminals division, revenue and operating
profit continued to improve, as Acapulco's car warehousing and
cruise ship activity grew in both volume and revenue. Revenue
for auto handling at Acapulco increased 28.9 percent during the
2004 second quarter and 25.9 percent for the 2004 first six
months over 2003, as auto activity accelerated use of the
warehouse facility. Cruise ship revenue increased 16.4 percent
and passenger growth 14.7 percent quarter over quarter.

In the Logistics division, both volume and revenue remained
sluggish, as the struggling automobile sector continued to
impact terminals, auto services yards, trucking and intermodal
services throughout the country. However, maintenance and repair
revenue increased 16.2 percent in the second quarter of 2004 as
compared to the same quarter of 2003. Quarter-over-quarter
revenue decreased approximately $700,000, gross results
approximately $200,000 and operating results approximately
$600,000, as SG&A is now being captured at each operating unit
rather than at the corporate level.

Javier Segovia, president of TMM, said, "During the past year
and a half, in spite of the very difficult challenges the
Company has faced, we have positioned our company for growth and
profitability by establishing a new corporate drive and
direction. This second quarter is continued confirmation that
our strategy to reduce administrative expenses will positively
impact results. Additionally, because of previous investments,
we continue to see consolidated EBITDA increasing, as new
operations and services begin to contribute to our operating
results. Overall results improved over the first quarter of this
year, and we believe this bodes well for continued improvement
in the second half of 2004. We found a great deal to encourage
us during the second quarter, including the improvement in our
rail, port and specialized maritime operations, particularly in
oil-related exploration revenue. Overall TMM remains well
positioned to take advantage of the current and future growth of
NAFTA."

"We continue to be pleased with the strength of our business,
especially in light of the challenges faced this year and last.
We believe that our solid performance indicates how critical
NAFTA transportation is to the North American economy."

AUDIT ADJUSTMENTS:

Due to new IFRS regulations and an extensive annual audit in
preparation for the Company's bond exchange offer, important
specific adjustments were made to the balance sheet as reported
in the first quarter 2004 financial results. Those audited
adjustments affected financial statements for the period ended
December 31, 2003, which included re-classifications and the
application of new accounting regulations with respect to the
financial statements as of that date, which were presented in
the Company's last press release. As such, for the fiscal year
2003, TMM created allowances on its fiscal assets for $32
million and wrote-down restructuring net expenses for $12
million, among other adjustments and re-classifications, which
resulted in a net decrease of $40 million in the Company's
reported stockholder equity. More information is available in
the Company's 20-F filing with the Securities and Exchange
Commission.

RESTRUCTURING UPDATE:

On July 23, 2004, the Company extended and amended its exchange
offer and consent solicitation, reducing the percentage of
outstanding 2003 notes required to be tendered in the exchange
offer from 98 percent to 95.7 percent and increasing the
percentage of outstanding 2006 notes required to be tendered
from 95 percent to 97.3 percent. All other conditions to the
exchange offer and consent solicitation remained unchanged. As
of 5:00 p.m., New York City time, on July 23, 2004, $169,324,000
principal amount of the 2003 notes and $194,771,000 principal
amount of the 2006 notes had been tendered and not withdrawn
(including tenders of notes pursuant to guaranteed deliveries).
In conjunction with the amendment to the exchange offer and
consent solicitation, Grupo TMM extended the expiration date for
the exchange offer and consent solicitation to midnight, New
York City time, on August 5, 2004, and provided withdrawal
rights to all holders of Existing Notes.

The Company anticipates that the restructuring of its bond debt
will be accomplished by August 10, 2004.

STATUS OF VAT LAWSUIT AND MEXICAN GOVERNMENT PUT:

Vat Lawsuit

On January 19, 2004, the Mexican Treasury delivered to TFM a VAT
Certificate representing the historical claim amount of
approximately $195 million as of that date, but excluding
additional amounts due to TFM from the effect of inflation and
interest accrued on the original claim amount. On January 20,
2004, the Mexican Fiscal Administration Service placed an
attachment to the VAT Certificate, stating that the documents
that support the value of the VAT Certificate do not comply with
applicable tax requirements.

As reported previously, TFM has not yet received an official
decision from the Fiscal Court regarding the claim the company
filed requesting to compel the government to reissue its Special
Certificate to include inflation and accrued interest. The
Company has knowledge that the Fiscal Court voted against TFM's
claim. Once TFM is notified, the Company will bring to the
Federal Court all proper petitions and protections, which
support its rights and are consistent with the rulings of the
Federal Court over the past year. The Company believes that
TFM's claim to have the VAT certificate updated for interest and
inflation accruals will be upheld by Mexico's legal system.
Details on the VAT litigation can be found in previous Company
filings and quarterly reports.

Grupo TFM Put

As previously stated Grupo TFM also asked for and received from
a federal judge an injunction, which prevented the government
from exercising its put option. The ability of the Mexican
government to exercise its put option has been suspended
indefinitely until the put lawsuit is resolved.

Grupo TFM acknowledged its intention to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its intention to comply once the
pending steps from the original Agreement are completed, which
should occur after the VAT claim has been reimbursed to TFM to
determine the real value of the shares.

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services. TMM also has a
significant interest in Transportacion Ferroviaria Mexicana
(TFM), which operates Mexico's Northeast railway and carries
over 40 percent of the country's rail cargo.

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

CONTACT: TMM Company
         Mr. Juan Fernandez
         Phone: 011-525-55-629-8778
         juan.fernandez@tmm.com.mx

          or

         Mr. Brad Skinner
         Investor Relations
         Phone: 011-525-55-629-8725
                203-247-2420
         brad.skinner@tmm.com.mx

         Web Site: www.tmm.com.mx


HYLSAMEX: Net Profit Soars On Higher Steel Prices
-------------------------------------------------
Hylsamex SA, a steelmaker unit of Mexican industrial
conglomerate Alfa, reported an excellent financial performance
in the second quarter of the year, with revenue, margins and
cash flow greatly exceeding the already high level attained in
the first quarter.

The unit posted net profit of MXN1.39 billion in the three
months ended June 30, up from MXN480.4 million a year ago. Sales
were two-thirds larger to total MXN6.69 billion.

Hylsamex took advantage of improved industry conditions from
high demand in the United States and Asia, which has sent prices
soaring.

Furthermore, Hylsamex reduced net debt by 10% since the end of
March. It raised US$137 million with an equity offering earlier
this month to pay down debt.

Sales volume on the domestic market rose 7% from a year earlier
to 618,500 tons, but was 2% lower than in the first quarter due
to the Easter week in April. Exports surged 32% to 168,200 tons.

CONTACT:  Hylsamex S.A. de C.V.
          101 Ave Munich Cuauhtemoc
          66452 San Nicolas de los Garza
          Nuevo Leon
          Mexico
          Phone: +52 81 8865 2828
          Fax: +52 81 8865 1210
          Home Page: http://www.hylsamex.com.mx
          Contact:
          Engr. Dionisio Garza Medina, Chairman
          Alejandro Elizondo Barragan, Chief Executive Engr


MAXCOM TELECOMUNICACIONES: Reports Higher Revenues for 2Q04
-----------------------------------------------------------
Maxcom Telecom detailed its better performance for 2Q04:

The number of lines in service at the end of 2Q04 increased 9%
to 147,238 lines, from 134,659 lines at the end of 2Q03, and 6%
when compared to 138,829 lines in service at the end of 1Q04.
Out of the total outstanding lines at the end of 2Q04, 9,940
lines, or 7% were from Wholesale customers, which compares to
6,020 lines, or 4%, at the end of 2Q03, and 6,970 lines, or 5%,
at the end of 1Q04.

During 2Q04, lines construction was higher by 176% at 7,587
lines, from 2,749 constructed lines in the same period of 2003;
and by 164% when compared to 2,872 constructed lines during
1Q04.

During 2Q04, 16,285 new lines were installed, 7% above the
15,220 lines installed during 2Q03. When compared to 1Q04, the
number of installations increased 62% from 10,029 lines.

During 2Q04, the monthly churn rate was 1.9%, lower than the
2.7% monthly average churn during 2Q03. When compared to 1Q04,
churn rate decreased from 2.2%. Voluntary churn in 2Q04 resulted
in the disconnection of 2,332 lines, a rate of 0.6%, the same
rate registered in 1Q04 with 2,429 disconnected lines.
Involuntary churn resulted in the disconnection of 5,334 lines,
a rate of 1.3%, which is lower than the 6,195 disconnected
lines, or 1.6% during 1Q04.

During 2Q04, net additions for Wholesale customers were positive
in 2,970 lines, which compares to 930 positive net additions
during 2Q03 and to 120 positive net additions during 1Q04.

CUSTOMERS:

Total customers grew 8% to 106,447 at the end of 2Q04, from
98,307 at the end of 2Q03, and 4% when compared to 102,332
customers as of the end of 1Q04.

The growth in number of customers by region was distributed as
follows: (i) in Mexico City customers increased by 5% from 2Q03
and 3% when compared to 1Q04; (ii) in Puebla customers grew 12%
from 2Q03 and 5% when compared to 1Q04; and, (iii) in Queretaro,
the number of customers decreased 3% from 2Q03 and increased 3%
when compared to 1Q04.

The change in the number of customers by category was the
following: (i) business customers increased by 2% from 2Q03 and
increased 1% when compared to 1Q04; and (ii) residential
customers increased by 9% from 2Q03 and by 4% from 1Q04.

REVENUES:

Revenues for 2Q04 increased 8% to Ps$203.8 million, from
Ps$188.5 million reported in 2Q03. Voice revenues for 2Q04
increased 3% to Ps$170.8 million from Ps$166.7 million during
2Q03, driven by a 9% increase in voice lines partially offset by
a 3% decrease in ARPU. Data revenues for 2Q04 were Ps$8.7
million and contributed 4% of total revenues; during 2Q03 data
revenues were Ps$5.3 million. Wholesale revenues for 2Q04 were
Ps$24.4 million, a 47% increase from Ps$16.6 million in 2Q03.

Revenues for 2Q04 increased 9% to Ps$203.8 million, from
Ps$187.5 million reported in 1Q04. Voice revenues for 2Q04
increased 8% to Ps$170.8 million, from Ps$158.5 million during
1Q04. Data revenues in 2Q04 decreased 18% to Ps$8.7 million from
Ps$10.5 million during 1Q04, when we recognized non- recurring
revenues of Ps$3.3 million from one single customer. During
2Q04, revenues from Wholesale customers increased 33% to Ps$24.4
million, from Ps$18.4 million in 1Q04.

COST OF NETWORK OPERATION:

Cost of Network Operation in 2Q04 was Ps$74.0 million, a 9%
increase when compared to Ps$67.9 million in 2Q03. Over the same
period, outbound traffic grew 21%, showing an improvement on a
cost per minute basis. The Ps$6.1 million increase in Cost of
Network Operation was generated by: (i) Ps$4.3 million, or 9%
increase in network operating services, mainly driven by Ps$2.4
million higher calling-party pays charges as traffic increased
and a higher number of lines in service; and Ps$3.0 million
higher cost of circuits and ports; partially offset by a Ps$0.6
million reduction in long-distance reselling cost as a result of
lower reselling rates and better routing of long distance
traffic; and Ps$0.5 million lower cost of other services like
Internet and AsistelMax; (ii) Ps$4.6 million, or 31% increase in
technical expenses basically as a consequence of higher
maintenance costs; and (iii) Ps$2.8 million or 60% decrease in
installation expenses and cost of disconnected lines.

Cost of Network Operation increased 9% quarter-over-quarter when
compared to Ps$68.1 million in 1Q04. Network operating services
increased Ps$6.3 million or 10%, mainly driven by Ps$1.6 million
higher calling party pays charges, Ps$2.3 million higher long
distance reselling cost as a result of increased traffic, and
Ps$1.2 million of higher leases of circuits. Technical expenses
increased Ps$1.0 million or 6%, and installation expenses and
cost of disconnected lines decreased Ps$0.4 million or 17% as a
result of the recognition in 1Q04 of installation charges
associated with the installation of capacity to one single
customer. When compared cost per minute on a traffic-related
cost basis, cost per minute improved as outbound traffic
increased 29%.

Gross margin at 64% in 2Q04 remained at the same level of those
reported in 2Q03 and in 1Q04.

SG&A:

SG&A expenses were Ps$87.1 million in 2Q04, which compares
favorably to Ps$94.8 million in 2Q03. The 8% decrease was mainly
driven by: (i) lower bad debt reserve of Ps$9.3 million; (ii)
lower consulting fees of Ps$3.3 million, (iii) lower salaries,
wages and benefits of Ps$2.1 million; and (iv) lower sales
commissions of Ps$1.5 million. Lower expenses were partially
offset by: (i) higher leases and maintenance expenses of Ps$5.3
million as a result of the cancellation in 2Q03 of the
provisions for the settlement of our former headquarters; (ii)
higher advertising expenses of Ps$2.3 million; and (iii) higher
general, advertising and insurance expenses of Ps$0.9 million.

SG&A expenses in 2Q04 increased 10%, from Ps$79.3 million in
1Q04. This variation was mainly driven by: (i) higher salaries,
wages and benefits of Ps$6.0 million; (ii) higher consulting
fees of Ps$1.7 million; (iii) higher advertising expenses of
Ps$1.0 million; and (iv) higher general and insurance expenses
of Ps$0.4 million. Higher expenses were partially offset by: (i)
lower leases and maintenance of Ps$0.9 million; and (ii) lower
bad debt reserve of Ps$0.4 million.

EBITDA:

EBITDA for 2Q04 increased 65% to Ps$42.7 million, from Ps$25.9
million reported in 2Q03.

When compared to 1Q04, EBITDA grew 7% from Ps$41.0 million.

EBITDA margin improved from 14% in 2Q03 to 21% in 1Q04, and
remained at 21% in 2Q04.

This is the 5th consecutive quarter that Maxcom reports positive
EBITDA. Cumulative EBITDA for the last four quarters was
Ps$168.2 million.

CAPITAL EXPENDITURES:

Capital Expenditures for 2Q04 were Ps$61.4 million, a 97%
increase when compared to Ps$31.1 million in 2Q03, and a 167%
increase when compared to Ps$23.0 million in 1Q04.

CASH POSITION:

Maxcom's cash position at the end of 2Q04 was Ps$39.4 million in
Cash and Cash Equivalents, compared to Ps$61.8 million at the
end of 2Q03. Cash and Cash Equivalents at the end of 1Q04 were
Ps$50.7 million.

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile
connectivity to micro, small and medium- sized businesses and
residential customers in the Mexican territory. Maxcom launched
commercial operations in May 1999 and is currently offering
Local, Long Distance and Internet & Data services in greater
metropolitan Mexico City, Puebla and Queretaro.

    For more information contact:

    Jose-Antonio Solbes
    Maxcom Telecomunicaciones
    Mexico City, Mexico
    (52 55) 5147 1125
    investor.relations@maxcom.com

    Lucia Domville
    Citigate Financial Intelligence
    Hoboken, NJ
    (201) 499-3548
    lucia.domville@citigatefi.com

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


TV AZTECA: Names Mario San Roman as CEO
---------------------------------------
TV Azteca, S.A. de C.V. (NYSE:TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish-language television programming in
the world, announced Wednesday that Mario San Roman, former COO
of TV Azteca, was appointed by the Board of Directors, effective
July 14, as company CEO, succeeding Pedro Padilla who leaves
that position to become CEO of Grupo Salinas.

"Mario has unparalleled knowledge of efficient content
production, superior programming and sales strategies, as well
as strong managerial leadership to further enhance the company's
strengths," said Ricardo B. Salinas, Chairman of the Board of TV
Azteca. "He is the natural choice to succeed Pedro Padilla,
whose notable contributions to the strategy of TV Azteca will
now be replicated to all of the Grupo Salinas' companies."

Mr. San Roman, 45, joined TV Azteca in 1998, as head of the
Azteca 13 network. He was soon responsible for all of the
company's distribution channels, before being appointed COO in
October 2002. Under his direction, TV Azteca has developed
programming aligned with the advertisers' target markets,
superior-quality, cost-effective productions, and optimal sales
options, which have resulted in improved overall profitability.

Mr. San Roman is not only an expert in viewer tastes and content
production, he also has a wide-ranging vision of the business
that embraces the perspective of the broadcaster, the client and
the ad agency. Additionally, as COO of the company, he has been
instrumental in the decision making of the most important
financial resolves. He was also appointed to the Board of
Directors early this year, and will continue to head the
company's Executive Committee, the body in charge of the day-to-
day operations of TV Azteca.

"I welcome the challenge to succeed Pedro Padilla, who has
positioned this company as one of the most dynamic and
profitable broadcasters worldwide," said Mr. San Roman. "I will
work intensely to maximize value creation through consolidating
TV Azteca as the best Spanish-language television company."

The company noted Mr. San Roman's appointment is effective July
14, and that there will be a six-month transition period, ending
on December 31, 2004, to ensure a comprehensive and orderly
transfer of functions.

Prior to joining TV Azteca, Mr. San Roman worked at the consumer
products company BDF Mexico as marketing director in Mexico for
personal care goods.

Mr. San Roman holds a B.A. in communications and marketing from
the Universidad Iberoamericana, one of the most prestigious
universities in Mexico. He also conducted post-graduate
marketing and management studies at the Stanford Graduate School
of Business, the Instituto Panamericano de Alta Direcci¢n de
Empresa, and the Ashridge Business School in London.

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

CONTACT: Investor Relations
         Mr. Bruno Rangel
         5255 3099 9167
         jrangelk@tvazteca.com.mx

         Mr. Omar Avila
         5255 3099 004
         1oavila@tvazteca.com.mx

         Web Site: www.irtvazteca.com


UNEFON HOLDINGS: Files Preliminary Info Memorandum Before CNBV
--------------------------------------------------------------
Unefon Holdings, S.A. de C.V., the owner of a 46.5% equity
interest in Unefon, S.A. de C.V. (BMV: UNEFONA) and a 50%
interest in Cosmofrecuencias, S.A. de C.V., announced Wednesday
that it has started the registration process to have its shares
listed on the Mexican Stock Exchange.

Unefon Holdings started its registration process Wednesday by
filing its preliminary information memorandum before Mexico's
Comision Nacional Bancaria y de Valores (CNBV), the Mexican
securities authority. The company expects that upon approval of
its application, its shares should be listed on the Mexican
Stock Exchange during 2004, at which time the shares of Unefon
Holdings would be publicly distributed pro-rata to the
shareholders of TV Azteca in Mexico, for no consideration.

Unefon Holdings previously announced that it had applied to the
U.S. Securities and Exchange Commission (SEC) for an exemption
from the reporting requirements of the Securities Exchange Act
of 1934. If the SEC grants that exemption, over-the-counter
trading of Unefon Holdings shares may develop in the United
States. The application process is still underway, and Unefon
Holdings will notify the marketplace of its plans with respect
to the shares of Unefon Holdings in the United States once the
outcome of such process is determined.

Company Profile

Unefon Holdings, S.A. de C.V. is a holding company that owns a
46.5% equity interest in Unefon, S.A. de C.V., the Mexican
mobile telephony operator focused on the mass market, and a 50%
equity interest in Cosmofrecuencias, S.A. de C.V., a wireless
broadband Internet access provider.

CONTACT:  UNEFON HOLDINGS, S.A. DE C.V.
          Hector Romero, Chief Financial Officer
          Tel: +5255-3099-0060
          E-mail: hromero@gruposalinas.com.mx



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

PAN AMERICAN SILVER: Reports Sharply Higher Profits in 2Q04
-----------------------------------------------------------
Pan American Silver issued its SECOND QUARTER HIGHLIGHTS:

-  Net earnings of $1.3 million for the quarter versus a net
loss of $1.2 million in the second quarter of 2003. Consolidated
revenue increased 67% over the second quarter of 2003 to $20.9
million.

-  Record quarterly silver production of 2.6 million ounces, an
increase of 19% over the same period of 2003.

-  Cash flow from operations, before changes to non-cash working
capital, increased to $2.4 million, versus $0.24 million in
2003. Year-to-date, cash flow from operations before working
capital changes increased to $5.3 million.

-  Eliminated 99% of $86.25 million in convertible debt through
conversion of outstanding debentures. Outstanding project loans
also pre-paid in full, leaving Company virtually debt free.

-  Package of non-core Peruvian properties near Quiruvilca sold
to
Barrick Gold Corp. for $3.65 million.

FINANCIAL RESULTS

Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) reported
consolidated revenue for the second quarter of $20.9 million,
67% greater than revenue in the second quarter of 2003 due to
increased silver production, higher realized metal prices and
the sale of accumulated concentrate inventory from the first
quarter. Net earnings for the quarter were $1.3 million compared
to a net loss of $1.2 million in 2003. A one-time gain of $3.65
million from the sale of Peruvian properties was partially
offset by $1.3 million in debt settlement expense relating to
the debenture conversion, $0.7 million in stock-based
compensation expense and $1.1 million in increased exploration
and development expenditures. Cash flow from operating
activities before changes to non-cash working capital increased
to $2.4 million.

Consolidated silver production for the second quarter was
2,593,078 ounces, a 19% increase over the second quarter of 2003
and the greatest quarterly production in the Company's history.
Better-than-expected production from Quiruvilca, Huaron and the
pyrite stockpiles more than compensated for below- forecasted
results from La Colorada. The Company remains on track to
produce 11.5 million ounces of silver in 2004. Zinc production
of 7,589 tonnes was 3% lower than in the second quarter of 2003
while lead production of 4,201 tonnes was 10% lower due to lower
grades at Huaron.

Cash costs at Huaron, Quiruvilca, and the pyrite stockpiles
averaged under $ 3.50/oz, however, lower-than-expected
production at La Colorada pushed cash costs at that operation to
$6.42/oz. As a result, consolidated cash costs for the quarter
dropped only 8% from 2003, to $4.05/oz. Total production costs
were $5.00/oz.

For the six months ended June 30, 2004, consolidated revenue
totaled $36.1 million versus $20.4 million in the year-earlier
period. Net earnings were $0.9 million versus a loss of $2.75
million in the first half of 2003.

Consolidated silver production in the first six months of 2004
was 5,009,191 ounces, a 16% increase over 2003. Zinc production
of 14,828 tonnes was 14% lower than in 2003. Lead production was
23% lower at 8,095 tonnes and copper production of 1,291 tonnes
was 28% lower. Cash production costs for the first six months
declined 8% to $3.90/oz, while total production costs rose 3% to
$ 4.88.

Working capital at June 30, 2004 including cash and short-term
investments of $118.7 million, improved to $124.9 million, an
increase of $43 million from December 31, 2003. The improvement
in working capital resulted primarily from the issuance of 3.33
million shares in February 2004 for net proceeds of $54.8
million. The proceeds were used to prepay a $9.5 million loan
incurred for the La Colorada expansion and to repay a $3.5
million loan relating to the Huaron mine. Up to an additional
$37 million from the proceeds are expected to be used for the
purchase of the Morococha mine in Peru, which is scheduled to
close in August. During the second quarter, the Company
converted 99% of its $86.25 million convertible debentures,
incurring a one-time interest payment of $11.2 million. As of
June 30, 2004 only $819,000 Principal amount of the convertible
debentures remain outstanding, and with the bank loans repaid,
the Company is virtually debt free. Capital spending in the
quarter was $2.6 million, down from $3.9 million a year earlier.
Exploration spending increased from $492,000 in the first half
of 2003 to $1.1 million in the first half of 2004 largely
reflecting increased activity at Manantial Espejo where the
Company continues to aggressively move the project towards
completion of a feasibility study.

Ross Beaty, Chairman of Pan American said, "This was a record
quarter for production and earnings and it marks a significant
turning point for Pan American. We have strong cash flow, we are
debt free with $119 million in cash, we have projects in the
pipeline that will continue to deliver tremendous growth and we
are profitable. Pan American marked its 10th anniversary this
year and I am extremely pleased at our success in building the
world's pre-eminent silver mining company during this period.
Our challenge now is to build on these achievements and to
deliver even better performance in the future."

OPERATIONS AND DEVELOPMENT HIGHLIGHTS

PERU

The Quiruvilca mine has dramatically improved its performance
and in the second quarter produced 621,311 ounces of silver at
cash and total production costs of $3.52/oz, down from cash
costs of $5.80/oz and total costs of $5.83/oz in the year-
earlier period. For the first half of the year, the mine
produced 1, 238,201 ounces of silver at a cash cost of $3.21/oz.
Development drilling at Quiruvilca has identified a major new
vein structure approximately 20 meters from existing underground
infrastructure. Given the location of the new vein, development
costs are expected to be low and will allow Quiruvilca to
continue to mine profitably well into the future.

As expected, silver production at the Huaron mine in the second
quarter of 2004 returned to normal levels. The mine produced
1,100,510 ounces of silver at a cash cost of $3.77/oz. Year-to-
date the mine has produced 2,064,595 ounces at a cash cost of
$3.96/oz. During the quarter the Company replaced one of the two
mining contractors with its own employees, which is expected to
lead to decreased cash costs beginning in the third quarter. The
recently completed $1 million exploration drilling program
successfully intersected several ore-grade zones which could add
significantly to mineable ore reserves. Further exploration
drilling and development will be conducted this year as part of
the expansion project at Huaron.

The Silver Stockpile Operation continued to generate excellent
cash flow, producing 261,746 ounces of silver at a cash cost of
$2.72/oz during the most recent quarter. Year to date the
Company has produced 548,311 ounces from the silver stockpiles
at a cash cost of $2.81/oz. The increased cash costs in 2004
reflect a sliding-scale refining charge, which increases as the
silver price rises.

The Company has initiated the final steps necessary to complete
the Morococha Mine acquisition, which was announced in February
2004. Assuming the Morococha purchase closes in August as is
expected currently, the mine should contribute 1.4 million
ounces of silver to Pan American's production in 2004 at a cash
cost of $3.25/oz. Over the longer term, Morococha is expected to
add approximately 3.5 million ounces of annual silver production
at a cash cost of less than $3/ oz.

MEXICO

While second-quarter production from the La Colorada mine
increased to 415, 828 ounces as compared to 229,557 ounces in
2003, production rates with cash production costs of $6.42/oz
for the quarter have been disappointing. Total silver production
from La Colorada for 2004 is now expected to be 1.8 million
ounces, approximately 40% lower than originally anticipated.
Consequently, cash costs will also be significantly higher than
predicted at $5.50/oz for the year. A combination of factors has
contributed to the disappointing results: worse than expected
ground conditions, which have slowed both development and
mining; increased dewatering requirements; and areas of high
clay content in the ore, which have negatively affected
recoveries and mill throughput. A revised mining and processing
plan has been developed and is now being implemented to address
these issues. The primary component of the plan will see a
switch to more selective narrow-vein mining, which will decrease
tonnage but will increase grade substantially. The Company still
expects La Colorada to achieve an annualized production rate of
3.5 million ounces at cash costs of less than $ 3.50/oz,
however, the timing will be determined by the speed of
dewatering and execution of the new mine plan.

The feasibility study update on the Alamo Dorado project
continues to progress with the completion of a new geological
model, the advancement of critical permits and the start of
testing to recover cyanide used in a conventional milling
process. A production decision continues to be anticipated at
the end of the year.

ARGENTINA

A 12,000 meter drilling program completed on the 50% owned
Manantial Espejo silver-gold joint venture has been extremely
successful and has been extended. Drilling continues to
intersect new vein structures and to expand the two main systems
on the property, the Maria and the Karina Union. Hatch Engineers
have been retained to develop an operating and capital cost
estimate for the project and the results of this study
incorporating a completed resource estimate are expected to be
available in September. The feasibility study remains on track
for completion early in 2005.

BOLIVIA

At the San Vicente property, a small-scale test mining program
has produced 247,494 ounces of silver in the first half of the
year to Pan American's account, at the same time as the Company
has continued to move forward with a feasibility study. EMUSA, a
Bolivian mining company, will continue to carry out the test
mining program under a site services agreement.

SILVER MARKETS

The silver price opened the quarter at $7.94/oz, dropping to
$5.49/oz before rebounding to close at $5.91/oz on June 30, 2004
for an average price of $6.25. The silver price remains very
volatile, but has continued to gain ground in July and was up
10% over year-end 2003 as of mid-July. In May the 2004 World
Silver Survey was released by the Silver Institute. A summary
can be found on Pan American's website. Industrial use of silver
increased 3% to 351 million ounces, jewelry and silverware grew
4% to 277 million ounces, photographic demand fell by 4.7% to
196 million ounces and coinage demand grew by 7.5% to 35 million
ounces. Silver mine supply fell slightly to 596 million ounces.
The silver deficit of 92 million ounces was mostly filled again
by the 83 million ounces sold from government inventories -
primarily Chinese. These stockpiles are considered nearly
depleted and the demand-supply fundamentals for silver remain
strong.

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

CONTACT:  Brenda Radies, Vice-President Corporate Relations
          Tel: (604) 806-3158
          Web site: http://www.panamericansilver.com



===============
S U R I N A M E
===============

* S&P Lowers Suriname's LTFC Rating to 'SD' from 'B-'
-----------------------------------------------------
Standard & Poor's Rating Services lowered its long-term foreign
currency sovereign credit rating on the Republic of Suriname to
'SD' from 'B-'. Standard & Poor's also affirmed its 'B' long-
term local currency sovereign credit rating on the republic. The
outlook on the long-term local currency rating remains stable.

According to Standard & Poor's Ratings Services credit analyst
Olga Kalinina, the rating actions are based upon the
government's failure to make full payments on the credit lines
extended in 1997 by Banco Exterior de Espana (US$15.6 million)
and Banco Santander (US$22.3 million).

"The government is in arrears because it decided not to make
full and timely payments to its commercial creditors, using
these funds instead to subsidize the domestic price of gasoline-
which remains fixed in an environment of increasing oil prices,"
said Mrs. Kalinina.

Arrears to Banco Exterior de Espana started accumulating in
April 2003, when the government began making only partial
payments of principal and interest on the due dates. As of end-
June 2004, arrears to this bank totaled US$2.975 million
(US$2.253 million accumulated principal,
US$722,000 interest, including capitalized interest), and the
outstanding credit line totaled US$8.8 million (including
principal arrears) at the end of the same period. Arrears to
Banco Santander started accumulating in May 2003, and totaled
US$3.704 million as of end-June 2004 (US$ 2.963 million
accumulated principal,US$741,500 interest, including capitalized
interest), when the outstanding credit line totaled US$8.4
million (including principal arrears).

Suriname was previously in default to Banco Santander and Banco
Bilbao Vizcaya Argentaria in 2000-2001. The arrears were cleared
by November 2001 with the proceeds of the ?137 million loan
extended by the government of the State of the Netherlands in
August 2001.

"There are evident signs of macroeconomic stabilization and
certain progress in strengthening the legal framework to
underpin the continuously prudent macroeconomic stance," said
Mrs. Kalinina. "However, inadequate debt management, a weak debt
payment discipline, and poor (albeit improved) data transparency
continue to weigh heavily on the rating-and ultimately led to
arrears and the rating downgrade. Given the relatively small
amount of principal and interest payments due to these banks
(versus available foreign exchange reserves of US$122 million in
May 2004), the government's decision to go into arrears further
emphasizes the continuously poor debt culture," she concluded.

ANALYSTS:  Olga Kalinina, CFA, New York (1) 212-438-7350
           Helena Hessel, New York (1) 212-438-7349



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

CANTV: Net Income at US$50M in 2Q04
-----------------------------------
Venezuela's bullish mobile telephone market propelled telecom
firm CANTV back into black in the second quarter of 2004, says
Reuters.

CANTV, the country's leading communications provider, bounced
back from a year-ago loss to post net income of US$50 million.
This translates into 45 cents per American Depositary Share.

The Company's mobile telephone subsidiary, Movilnet, contributed
revenues totaling US$151 million in the last quarter. Part of
this amount comes from the 41,000 new subscribers Movilnet
signed-in during the period. Overall, CANTV's operating revenues
rose to US$502 million in 2Q04 from US$459 million a year
earlier.

Earnings before interest, tax, depreciation and amortization
(EBITDA), a closely watched financial indicator, increased from
US$138 million a year earlier to top at US$165 million in 2Q04.

For detailed information on CANTV's second quarter results,
please visit: http://bankrupt.com/misc/CantTV_2Q04.xls

CONTACT:  Gregorio Tomassi
          CANTV Investor Relations
          011-58-212-500-1831
          FAX: 011-58-212-500-1828
          E-Mail: invest@cantv.com.ve


CANTV: Assures Government of Robust Communications System
---------------------------------------------------------
CANTV will be at the forefront of Venezuela's August 15
presidential recall vote when it provides secure data
transmission services at the polls, AP Worldstream reports.

Company president Gustavo Roosen has assured the government that
CANTV will coordinate with the National Elections Council in
implementing strict controls to foil possible electronic fraud.
The government's Telecommunications Commission is also slated to
inspect CANTV's systems to find out if potential loopholes still
exist.

Issues regarding data security surfaced after Vice-President
Jose Vicente Rangel pointed that the formerly state-run company
could manipulate results during the recall referendum.

The recall election is a process recently allowed in Venezuela.
A recall of President Hugo Chavez will pave the way for new
elections within a month. The winner of this election will
takeover Chavez's term, which will end in 2007.


PDVSA: Planned Refineries Could Cost $6.4 Billion
-------------------------------------------------
State-owned oil firm Petroleos de Venezuela (PDVSA) could team
up with private investors to build two new domestic refineries
in 2007, says Dow Jones Newswires.

Mr. Igor Martinez, a PDVSA manager, said that the Company is
outlining initial plans to " test all the possibilities, the
locations and the capacities" for the refineries.

Construction costs for the two refineries, to be built in Sucre
and Bolivar state, could reach US$6.4 billion, Mr. Martinez
reveals. Once completed, the refineries will add 200,000 barrels
daily to PDVSA's processing capacity.

In addition, PDVSA will be outfitting two of its existing
refineries with Deep Conversion Units. The remodeling is
expected to raise revenue by transforming low value fuel oil
into higher priced light products such as diesel and gasoline.

PDVSA has begun Modifications at the Puerto la Cruz refinery,
where a US$390 million Valcor Naptha processing unit was
recently completed. Total costs for the deep conversion plant
would cost US$1 billion. A second project at the El Palito
refinery would cost another US$350 million.



                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

Copyright 2004.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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subscription or balance thereof are $25 each.  For subscription
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* * * End of Transmission * * *