TCRLA_Public/040802.mbx      T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, August 2, 2004, Vol. 5, Issue 151

                            Headlines


A N T I G U A   &   B A R B U D A

LIAT: Financial Woes Put a Damper on Merger Plans


A R G E N T I N A

ACINDAR: To Pay First Coupon of Convertible ON
ALCALOR: Prepares for Informative Assembly
ALIMENTOS FARGO: Antitrust Agency Approves Bimbo Purchase
CLINICA DE LA CONCEPCION: Reorganization Concluded
DOSO: Verification Period Closes

FUNDACION DOCTOR: Liquidates Assets to Pay Debts
GALASSI 2,000: Court Appoints Trustee for Reorganization
INDUSTRIAS PIP: Will Undergo Debt Restructuring
LICARI: Gears for Reorganization
LORD SUPPLY: General Report Due Tuesday

PISOS INDUSTRIALES: Trustee Submits Individual Reports
RADIO DIFUSORA: Court Grants Reorganization Plea
TRANSENER: Antitrust Watchdog OKs Dolphin Acquisition
WIRTH S.A.: Enters Bankruptcy on Court Orders
* Evaluation of IMF's Role in Argentina


B R A Z I L

AES CORP: Reports Strong Second Quarter Results
AHOLD: 2Q04 Net Sales Declines 8.5% From 2Q03
BRASKEM: EBITDA Reaches R$1.1 Billion in 1H04
CEMIG: Net Profit Up 4% in 2Q04
EMBRATEL: Records BRL64M Loss in 2Q04

GTECH Holdings: Provides Update on Brazilian Matters
PARMALAT: Files Suit to Recover Damages From Citigroup
PARMALAT: Settles Pending Litigation With U.S. S.E.C.
TELEMAR: Reports 2Q04 Net Income of BRL78M


C O L O M B I A

PAZ DEL RIO: To Search for Strategic Partner Soon


J A M A I C A

C&WJ: Penetrates VOIP Market
KAISER ALUMINUM: PBGC Intends to Assume Inactive Pension Plan


M E X I C O

ELAMEX: Posts Gross Profit of US$6M in 2Q04
SANLUIS CORPORACION: EBITDA Slips 8.9% in 2Q04
TV AZTECA: To Restrict Salinas' Legal Powers
TV AZTECA: To Wrap Up Unefon Spinoff Soon


T R I N I D A D   &   T O B A G O

BWIA: Unions Want More Than Just Government Takeover
BWIA: CAA To Monitor Ground Handling Operations
CDC: Carib Workers Return to Work


V E N E Z U E L A

CITGO: Lures Hispanic Market With Spanish Web Site

     -  -  -  -  -  -  -  -

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

LIAT: Financial Woes Put a Damper on Merger Plans
-------------------------------------------------
The present financial condition of LIAT is likely to delay plans
to merge the troubled Antigua-based carrier with Trinidad
flagship airline BWIA, The Trinidad Guardian reports.

Citing New York-based aviation consultants SH&E, which was hired
to look at the viability of such a merger, Trinidad's Trade and
Industry Minister Kenneth Valley said LIAT needs some real
operations restructuring to make it viable.

Just recently, the prime ministers of Trinidad, Barbados,
Antigua and St. Vincent pledged a US$9.4-million bailout package
for the LIAT to keep the airline afloat. The four countries gave
the airline until December to use the money for restructuring
its operations.



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

ACINDAR: To Pay First Coupon of Convertible ON
----------------------------------------------
Acindar announced that August 4 is the deadline for the first
period of payment of interests of the ONs ("Obligaciones
Negociables") convertible in ordinary shares class "B",
subscription completed last February.

These bonds will accrue an annual interest of 6%, payment that
will be made 50% in dollars and 50% in new convertible ON of the
same type.

These new convertible ON will be automatically accredited by
Caja de Valores in the respective Holder's bank account whereas
the payment in cash will be made in checks in dollars drawn by
Caja de Valores against a New York bank or by wire transfer to a
holder's account in the same city.

According to the accrual and capitalization of interests, the
total number of Convertible ON will reach US$81,196,712, an
official notice of the company informed.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com

          Jose I. Giraudo, Investor Relations Manager
          Tel: (54 11) 4719 8674
          Andrea Dala, Investor Relations Officer
          Tel: (54 11) 4719 8672


ALCALOR: Prepares for Informative Assembly
------------------------------------------
Argentine company Alcalor S.A. is set to finalize its
reorganization when it presents a completed settlement plan
during the informative assembly to be conducted tomorrow, August
3, 2004. Validated creditors of the Company will ratify the plan
during the assembly.

Buenos Aires Court No. 8 has jurisdiction over this case while
Mr. Mario Bertolot serves as trustee.

CONTACT: Mr. Mario Bertolot, Trustee
         Uruguay 660
         Buenos Aires


ALIMENTOS FARGO: Antitrust Agency Approves Bimbo Purchase
---------------------------------------------------------
Argentina's antitrust watchdog has signaled a green light to the
sale of local bakery chain Compania de Alimentos Fargo SA to
Mexican confectioner Grupo Bimbo, Argentine Economy Minister
Roberto Lavagna said Thursday.

But according to Dow Jones Newswires, the approval carries a
condition: Fargo's Lactal bread and bakery brand and its Pacheco
plant must be sold. The antitrust authority didn't give
deadlines for the sales.

The antitrust agency said the sale of Lactal will allow for the
"rapid expansion" of a new player to compete with Fargo and
Bimbo.

Fargo plunged into a deep financial trouble following the
country's economic crisis in 2002 and the peso's subsequent 70%
devaluation, which caused corporate debt loads to skyrocket.


CLINICA DE LA CONCEPCION: Reorganization Concluded
--------------------------------------------------
The settlement plan proposed by Clinica de la Concepcion S.R.L.
for its creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by Court No. 3
of Cordoba's Civil and Commercial Tribunal and will now be
implemented by the company.

CONTACT: Clinica de la Concepcion S.R.L.
         Buenos Aires 744, Bø Nueva Cordoba
         Cordoba
         Tel.: (0351) 4230010/5757/8998 - 4222228/8828


DOSO: Verification Period Closes
--------------------------------
Creditors of insolvent Argentine company Doso S.R.L. must submit
proof of the Company's indebtedness before the verification of
claims ends on August 3, 2004. All such claims should be
forwarded to the court-appointed trustee, Mr. Jose Antonio
Sabuqui, for appraisal.

CONTACT: Doso S.R.L.
         Viamonte 1592
         Buenos Aires

         Mr. Jose Antonio Sabuqui, Trustee
         Bernardo de Irigoyen 330
         Buenos Aires


FUNDACION DOCTOR: Liquidates Assets to Pay Debts
------------------------------------------------
La Plata based Fundacion Doctor Jose Maria Mainetti Para el
Progreso de la Medicina will begin liquidation proceedings after
Court No. 2 of the city's Civil and Commercial Tribunal issued a
bankruptcy order against the company.

The ruling places the company under the supervision of court-
appointed trustees, Mr. Julio D. Bello, Mr. Victor R. Bellaria
and Mr. Luis A. Cor. The trustees will verify creditors' proofs
of claims until August 27, 2004. These claims will then be
presented in court as individual reports on October 8, 2004.

The trustees will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on November 22, 2004.

CONTACT: Fundacion Doctor Jose Maria Mainetti -
         Para el Progreso de la Medicina
         Calle 508 Nro. 2200,
         Manuel Gonnet
         La Plata

         Mr. Julio D. Bello;
         Mr. Victor R. Bellaria;
         Mr. Luis A Cor; Trustees
         Calle 18 Nro. 980
         La Plata


GALASSI 2,000: Court Appoints Trustee for Reorganization
--------------------------------------------------------
Galassi 2,000 S.A., a company operating in Bahia Blanca, is
ready to start its reorganization after the city's Court No. 5
appointed Mr. Horacio Guillermo Escrina to supervise the
proceedings as trustee.

Infobae relates that the trustee will verify creditors claims
until September 10, 2004. Afterwards, He will present these
claims as individual reports for final review by the court on
October 25, 2004. He will also provide the court with a general
report pertaining to Galassi's reorganization on December 6,
2004.

The court has scheduled the informative assembly on June 3 next
year.

CONTACT: Galassi 2,000 S.A.
         Camino Sesquicentenario y Ruta 35
         Bahia Blanca

         Mr. Horacio Guillermo Escrina, Trustee
         Zapiola 319
         Bahia Blanca


INDUSTRIAS PIP: Will Undergo Debt Restructuring
-----------------------------------------------
Court No. 5 of Santa Fe's Civil and Commercial Tribunal
authorized Industrias P.I.P. S.R.L. to proceed with
reorganization. During the insolvency process, the company will
draft a settlement to satisfy the demands of its creditors and
avoid liquidation. The court has not revealed the name of the
case's trustee as well as the relevant dates in the proceedings.

CONTACT: Industrias P.I.P. S.R.L.
         Rosario, Santa Fe


LICARI: Gears for Reorganization
--------------------------------
Court No. 2 of Cordoba's Civil and Commercial Tribunal issued a
resolution opening the reorganization of Licari S.A. This
pronouncement authorizes the Company to begin drafting a
settlement proposal with its creditors in order to avoid
liquidation. The reorganization further allows the Company to
retain control of its assets subject to certain conditions
imposed by Argentine law and the oversight of the court
appointed trustee.

CONTACT: Licari S.A.
         Avda Figueroa Alcorta 145
         Bell Ville, Cordoba


LORD SUPPLY: General Report Due Tuesday
---------------------------------------
A general report on the Lord Supply S.R.L. bankruptcy will be
presented in court on Tuesday, August 3, 2004. The court-
appointed trustee, Ms. Nelida Manuela Schub, will prepare this
report from the Company's accounting and business records.

CONTACT: Ms. Nelinda Manuela Schub
         Paraguay 1307
         Buenos Aires


PISOS INDUSTRIALES: Trustee Submits Individual Reports
------------------------------------------------------
Mr. Hector Rodolfo Arzu, the trustee overseeing the liquidation
of Pisos Industriales S.R.L., will submit individual reports
from the case on Tuesday, August 3, 2004.

The individual reports contain information on the claims
submitted by the Company's creditors during the verification
period. These documents will be the basis for the final listing
of creditors who will be included in the settlement plan.

CONTACT: Pisos Industriales S.R.L.
         Libertad 877
         Buenos Aires

         Mr. Hector Rodolfo Arzu, Trustee
         Junin 55 Capital Federal
         Buenos Aires


RADIO DIFUSORA: Court Grants Reorganization Plea
------------------------------------------------
Radio Difusora Mediterranea S.A., a company operating in
Cordoba, begins reorganization proceedings after the city's
Court No. 39 granted its petition for "concurso preventivo",
says Infobae.

During the reorganization, the company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.

The court has yet to name a trustee for the case and schedule
the verification of creditors' claims.

CONTACT: Radio Difusora Mediterranea S.A.
         Cordoba


TRANSENER: Antitrust Watchdog OKs Dolphin Acquisition
-----------------------------------------------------
Argentine investment group Dolphin Fund Management has wrapped
up the acquisition of a 50% stake in Citilec, the holding
company of local electricity transporter Compania de Transporte
de Energia Electrica en Alta Tension (Transener SA).

According to Dow Jones, antitrust authorities approved Thursday
the acquisition, which was done in two phases.

In December 2003, Dolphin Fund bought a 7.52% stake from another
private equity fund, The Argentine Investment Company. It then
purchased another 42.493% from British company National Grid
(NGG) in March.

In a statement, the Economy Ministry said approval "doesn't
imply any change to the irrevocable commitment made by the
company Petrobras Energia SA" to sell its 50% holding in
Citelec.

In 2003, when Brazilian company Petroleo Brasileiro took over
Perez Companc, Petrobras Energia's former parent company, it
promised Argentine antitrust authorities it would sell its stake
in Transener.

According to analysts, final approval of the changes in
Transener's shareholding structure should allow it to finally
restructure its US$520 million debt.


WIRTH S.A.: Enters Bankruptcy on Court Orders
---------------------------------------------
Wirth S.A. will enter bankruptcy protection after Buenos Aires
Court No. 7 ordered the company's liquidation. The bankruptcy
order effectively transfers control of the company's assets to
the court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Mr. Jorge Daniel Alvarez
as trustee. He will be verifying creditors' proofs of claims
until the end of the verification phase on September 6, 2004.

Clerk No. 14 assists the court on this case, which will end with
the sale of the Company's assets to pay its debts.

CONTACT: Wirth S.A.
         Parana 567
         Buenos Aires

         Mr. Jorge Daniel Alvarez, Trustee
         Bartolome Mitre 1738
         Buenos Aires


* Evaluation of IMF's Role in Argentina
---------------------------------------
The Independent Evaluation Office (IEO) of the International
Monetary Fund (IMF) released Thursday the report Evaluation of
the Role of the IMF in Argentina, 1991-2001.

The Argentine crisis of 2000-02 was among the most severe of
recent currency crises. In December 2001, Argentina defaulted on
its sovereign debt and soon afterwards abandoned the
convertibility regime, under which the peso had been pegged at
parity with the U.S. dollar since 1991. The crisis had a
devastating economic and social impact, causing many observers
to question the role played by the IMF over the preceding decade
when it was almost continuously engaged in the country through
five successive financing arrangements.

The report examines the role of the IMF in Argentina during
1991-2001, taking advantage of the IEO's unique access to
internal documents, in order to draw lessons for the IMF in
improving both its surveillance and crisis management
capabilities in future. In accordance with the IEO's general
terms of reference, we do not assess issues that have a direct
bearing on ongoing operations. Consequently, the report does not
discuss developments beyond the first few days of 2002. As with
all IEO reports, the version being made public is identical to
the one submitted to management and the Executive Board. The
report has not been changed in response to management's comments
or the views expressed at the Board. Instead, following standard
IEO practice, it is being released along with separate
management and staff comments and the summing up of the Board
discussion.

Major findings:

The crisis resulted from the failure of Argentine policy makers
to take necessary corrective measures sufficiently early. IMF
surveillance failed to highlight the growing vulnerabilities in
the authorities' choice of policies and the IMF erred by
supporting inadequate policies too long. By 2000, there were
concerns about exchange rate and debt sustainability, but there
was no easy solution. Recognizing the large costs of exit, the
IMF supported Argentina's efforts to preserve the exchange rate
regime. This support was justifiable up to January 2001 because
large financial support, combined with strong policy
corrections, had some chance of success. However, subsequent
disbursements, made despite repeated policy inadequacies, only
postponed the fundamental resolution of the crisis. In
retrospect, the resources used in an attempt to preserve the peg
could have been better used to mitigate some of the inevitable
costs of exit.

- During the precrisis period, the IMF correctly recognized
fiscal discipline and structural reform, labor market reform in
particular, as essential to the viability of the convertibility
regime. However, surveillance underestimated the vulnerability
that could arise from the steady increase in public debt, when
much of it was dollar-denominated and externally held, and did
not consider exit strategies when it became evident that
meaningful progress in structural reform was not forthcoming.
Long-standing political obstacles proved formidable, but neither
did the IMF use the available tools effectively. Conditionality
was weak, and Argentina's failure to comply with it was
repeatedly accommodated. The result was that the IMF remained
engaged in a program relationship with Argentina too long, when
the policies being supported were inadequate.

- From late 2000, the IMF increased its commitment of resources
to as much as US$22 billion. The strategy viewed any exchange
rate or debt sustainability problem as manageable with strong
action on the fiscal and structural fronts, and may well have
worked if the underlying assumptions had materialized and the
program had been impeccably executed. The authorities, however,
proved unable to implement the policies as agreed, and the
successive resignations of two Ministers of Economy in March
2001 shattered market confidence. Then, the new Minister of
Economy began to take a series of controversial and market-
shaking measures. Yet, the IMF, having no effective contingency
plan, continued to disburse and augment funds in support of the
existing policy framework.

- By mid-2001, it should have been clear that the initial
strategy had failed and that Argentina's exchange rate and
public debt could not be considered sustainable. However, the
IMF did not press the authorities for a fundamental change in
the policy regime and, in December 2001, effectively cut off its
financial support to Argentina. The decision to call the program
off-track was fully justified under the circumstances, but the
way in which it was done meant that the IMF was unable to
provide much help as the crisis unraveled. Exit from the peg
would have been very costly regardless of when it was made, but
an earlier shift in the IMF's strategy could have mitigated some
of the costs because Argentina's economic health would have
deteriorated that much less and more resources would have been
available to moderate the inevitably painful transition process.

- The Argentine experience reveals weaknesses in the IMF's
decision-making process. First, contingency planning was
insufficient. Second, from March 2001 on, the IMF accepted a
less cooperative relationship with the authorities, who often
took multiple policy initiatives without prior consultation.
Third, little attention was paid to the risks of giving the
authorities the benefit of the doubt beyond the point where
sustainability was clearly in question. Fourth, the Executive
Board did not fully perform its oversight responsibility,
exploring the potential tradeoffs between alternative options.

Recommendations:

A great deal of learning has already taken place within the IMF
since the Argentine crisis. New guidelines have been issued, or
are being discussed, to incorporate that learning into policies
and operational procedures. The report draws ten lessons, from
which it presents six sets of recommendations in order to
strengthen the initiatives already being taken. The main points
are as follows:

- IMF surveillance needs to be strengthened further, by making
medium-term exchange rate and debt sustainability the core
focus. To fulfill these objectives, the IMF needs to improve
tools for assessing the equilibrium real exchange rate, examine
debt profiles from the perspective of "debt intolerance," and
take a longer-term perspective on vulnerabilities that could
surface over the medium term. Systematic discussion of exchange
rate policy must become a routine exercise on the basis of
candid staff analysis.

- The IMF should have a contingency strategy from the outset of
a crisis, including "stop-loss rules"- a set of criteria to
determine if the initial strategy is working and to guide the
decision on when a change in approach is needed. Where the
sustainability of debt or the exchange rate is in question, the
IMF should indicate that its support is conditional upon a
meaningful shift in the country's policy. High priority should
be given to defining the role of the IMF when a country seeking
exceptional access has a solvency problem.

- The IMF should refrain from entering a program relationship
with a country when there is no immediate balance of payments
need and there are serious political obstacles to needed policy
adjustment or reform. Exceptional access should entail a
presumption of close cooperation, and special incentives to
forge such close collaboration should be adopted, including
mandatory disclosure to the Board of any critical issue or
information that the authorities refuse to discuss with (or
disclose to) staff or management.

- In order to strengthen the role of the Executive Board,
procedures should be adopted to encourage: (i) effective Board
oversight of decisions under management's purview; (ii)
provision of candid and full information to the Board on all
relevant issues; and (iii) open exchanges of views between
management and the Board on all topics, including the most
sensitive ones. These initiatives will be successful only
insofar as IMF shareholders uphold the role of the Board as the
prime locus of decision-making.

The report was discussed by the IMF's Executive Board on July
26, 2004. The Board welcomed the report and broadly endorsed the
thrust of its findings, lessons and recommendations. It
emphasized that it would be important to make further progress
in incorporating these lessons into the IMF's operations and
decision making process. The report, along with IMF management
and staff responses and the summing up of the Board discussion
are available on the IEO's website at www.imf.org/ieo.

CONTACTS: Independent Evaluation Office (IEO)

          Mr. David Goldsbrough
          Tel. (202) 623-4735

          Ms. Isabelle Mateos y Lago
          Tel. (202) 623-7219

          IMF External Relations Department

          Public Affairs:
          Phone: 202-623-7300
          Fax: 202-623-6278

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



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

AES CORP: Reports Strong Second Quarter Results
-----------------------------------------------
The AES Corporation (NYSE:AES) reported Thursday significant
increases in sales, gross margin and operating income for the
second quarter of 2004. Diluted earnings per share from
continuing operations were $0.10 and adjusted earnings per
share(1) were $0.15. Adjusted earnings per share excludes the
effects of gains or losses from certain foreign currency
transactions, risk management mark-to-market accounting and
early parent company debt retirement, plus an asset impairment
in the 2003 quarter. For the prior year quarter, diluted
earnings per share from continuing operations were $0.24, and
adjusted earnings per share were $0.05.

Second Quarter Financial Highlights:

- Sales growth for the quarter was strong, increasing 14% to
$2,263 million compared to $1,992 million in 2003. Sales were
driven by higher prices and demand and new plants in operation,
partly offset by foreign currency translation effects.

- Gross margin increased 20% to $648 million compared to $539
million last year, while gross margin as a percent of sales
increased to 29% from 27%. Operating income increased 24% to
$611 million. These increases were largely attributable to the
increased sales and operating performance improvements. The
gross margin percentage improvement was largely driven by
improved prices and performance gains.

- Net interest expense declined 16% to $390 million compared to
$462 million in the prior year, reflecting the benefits of
financial restructuring and debt repayments.

- The effective tax rate increased to 32% from 29% a year ago,
but remained unchanged from the first quarter of 2004.

- Net income was $38 million, compared to a prior period loss of
$129 million.

"We continue to improve the underlying earnings potential of our
business portfolio," said Paul Hanrahan, President and Chief
Executive Officer. "Higher tariffs and demand, reduction of
commercial losses and improved plant operations are driving
operating income growth. As a result, we believe we are on track
to achieve our 2004 financial targets."

Second Quarter Segment Highlights:

In Contract Generation, AES's largest segment, sales in the
second quarter grew 18% to $868 million from $735 million in
2003, reflecting contract price escalation, increased demand,
and new projects on line.

Gross margin improved 14% to $326 million from $286 million a
year ago, benefiting from the higher sales. Gross margin as a
percent of sales declined to 38% from 39% a year ago, influenced
principally by the higher cost of gas and purchased electricity
in Chile, more than offsetting strong demand growth in that
country.

Competitive Supply sales grew 27% to $248 million from $196
million in the 2003 quarter, benefiting largely from increased
demand and new projects on line. Gross margin increased 18% to
$53 million from $45 million last year. Gross margin as a
percent of sales declined to 21% from 23% a year ago, reflecting
higher coal prices and maintenance costs in the New York plants.

Large Utilities sales increased 7% to $834 million from $778
million in the prior period, driven primarily by tariff
increases and reduced non-commercial losses, partly offset by
foreign currency translation effects. Gross margin increased 27%
to $207 million from $163 million in the prior period,
attributable to higher sales and performance improvements. Gross
margin as a percent of sales improved to 25% from 21% a year
ago, reflecting the benefit of improved performance in the US
and Brazil.

Growth Distribution sales increased 11% to $313 million compared
to $283 million last year, helped by increased demand as well as
higher tariffs. Gross margin increased 38% to $62 million
compared to $45 million a year ago. Gross margin as a percent of
sales increased to 20% from 16%, reflecting improved performance
in Cameroon.

Year to Date Financial Highlights

Diluted earnings per share from continuing operations were
$0.22, compared to $0.47 for the first half of 2003. Adjusted
earnings per share were $0.32, compared to $0.18 for the first
six months of 2003.

Sales increased 16% to $4,520 million from $3,903 million in the
prior period, benefiting from higher prices and demand, foreign
currency translation effects, and new plants on line.

Gross margin increased 19% to $1,328 million compared to $1,113
million in last year's first half, largely reflecting higher
sales. Gross margin as a percent of sales also improved slightly
from a year ago.

Operating income increased 23% to $1,243 million from $1,014
million, reflecting the increase in sales and gross margin.

Net interest expense declined 9% to $814 million from $893
million in the 2003 period, reflecting the impact of financial
restructuring and debt repayment.

The effective tax rate increased to 32% from 29% a year ago.
Net cash from operating activities was $610 million, which was
$126 million lower than in the prior year. Comparisons were
adversely affected by $31 million of cash flows related to
discontinued operations. In addition, working capital decreased
in 2004, principally in the Large Utilities segment, driven by
payments for outstanding payables from the pre-debt
restructuring period.

Debt has been reduced by $1,301 million since the beginning of
the year, reflecting completion of several financial
restructuring transactions and early debt repayment.
Net income was $86 million compared to a prior period loss of
$36 million.

(1)Note: This analysis of adjusted earnings per share involves a
non-GAAP financial measure. See the Reconciliation of Adjusted
Earnings Per Share.

AES is a leading global power company, with 2003 sales of $8.4
billion. AES operates in 27 countries, generating 45,000
megawatts of electricity through 113 power facilities and
delivers electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs. To learn more about
AES, please visit www.aes.com or contact AES investor relations
at invest@aes.com.

CONTACT: Headquarters
         AES Corporation
         1001 North 19th Street
         Suite 2000
         Arlington, VA 22209
         703-522-1315

         Investor Relations
         Scott Cunningham
         703-558-4875
         invest@aes.com


AHOLD: 2Q04 Net Sales Declines 8.5% From 2Q03
---------------------------------------------
Ahold released these 2Q04 HIGHLIGHTS:

- Consolidated second quarter 2004 net sales amounted to EUR
12.3 billion, a decline of 4.8% compared to the same period last
year.

- Net sales significantly impacted by lower currency exchange
rates and divestments; second quarter 2004 net sales growth
excluding currency impact and impact of divestments was
approximately 3.1%

- Consolidated first half year 2004 net sales amounted to EUR
27.7 billion, a decline of 8.5% compared to the same period last
year

- First half year 2004 net sales growth excluding currency
impact and impact of divestments was approximately 2.1%

Ahold announced on Thursday consolidated net sales (excluding
VAT) for the second quarter of the year (12 weeks: April 19,
2004 - July 11, 2004) of EUR 12.3 billion, a decline of 4.8%
compared to the same period last year (2003: EUR 13.0 billion).
Net sales were significantly impacted by lower currency exchange
rates, in particular that of the U.S. dollar. Net sales
excluding currency impact decreased by 1.4%. Additionally, net
sales were impacted by divestments. Net sales growth excluding
currency impact and impact of divestments was approximately 3.1%
in the second quarter.

Consolidated net sales in the first half year of 2004 amounted
to EUR 27.7 billion, a decline of 8.5% compared to the same
period last year (2003: EUR 30.3 billion). Net sales excluding
currency impact declined by 1.4%. Net sales growth excluding
currency impact and impact of divestments was approximately 2.1%
in the first half year.

The net sales numbers are preliminary and unaudited.

USA - retail

In the United States, net sales in the second quarter of 2004
increased in U.S. dollars by 0.5% to USD 6.3 billion (2003: USD
6.2 billion). Net sales growth excluding the impact of the
divestment of Golden Gallon in 2003 was approximately 2.0%.
Identical sales growth was 0.3% and comparable sales growth was
0.9%, in U.S. dollars. Identical sales in the second quarter
were positively impacted by the Easter calendar effect by
approximately 1.0%. Food price inflation remained stable in the
second quarter of 2004 compared to the first quarter of 2004. At
Stop & Shop and Giant Landover, increased competitive
promotional activity and selling square footage, as well as the
ongoing integration initiatives, have had an impact on sales
during the second quarter of 2004.

In the first half of 2004, net sales amounted to USD 14.4
billion, a decline of 0.5% compared to the same period last year
(2003: USD 14.5 billion). Net sales excluding the impact of the
divestment of Golden Gallon in 2003 showed a growth of
approximately 1.0%. Identical sales decline was 0.8%. Comparable
sales decline was 0.2%.

Europe - retail

In Europe, net sales in the second quarter of 2004 amounted to
EUR 3.1 billion (2003: EUR 3.1 billion). Net sales growth
excluding currency impact amounted to 0.8%. Identical sales
growth at Albert Heijn was 1.4%; the increase in transactions
was partly offset by a lower average basket size, which was
partly caused by modest food price deflation. Net sales growth
in Central Europe from store openings was largely offset by
lower currency exchange rates. Net sales in Spain decreased as a
consequence of a lower store count, declining tourism in the
Canary Islands and increased competition.

In the first half of 2004, net sales amounted to EUR 6.8 billion
(2003: EUR 6.8 billion). Net sales growth excluding currency
impact amounted to 0.1%. Identical sales growth at Albert Heijn
was 0.4%.

Foodservice

Net sales in the second quarter of 2004 at U.S. Foodservice
increased in U.S. dollars by 7.5% to USD 4.4 billion (2003: USD
4.1 billion). The increase was primarily attributable to higher
pricing and improved volumes.

In the first half of 2004, net sales in U.S. dollars increased
by 5.9% to USD 10.0 billion (2003: USD 9.4 billion).

South America

In South America, net sales in the second quarter of 2004
amounted to EUR 215 million (2003: EUR 609 million), down 64.7%
from the same period last year, mainly due to the divestment of
Bompre‡o in Brazil in the first quarter of 2004 and Santa Isabel
in the second half of 2003.

Net sales in the first half of 2004 decreased by 53.7% to EUR
551 million (2003: EUR 1.2 billion).

Unconsolidated joint ventures

The net sales of unconsolidated joint ventures decreased by 2.5%
to EUR 2.7 billion in the second quarter of 2004 (2003: EUR 2.8
billion). Net sales at ICA were impacted primarily by the
transportation strike in Norway. Net sales at Jer¢nimo Martins
Retail remained flat compared to the same period last year. In
Central America, net sales were significantly impacted by lower
currency exchange rates. Net sales growth excluding currency
impact in Central America was 12.1% in the second quarter.

In the first half of 2004, net sales of unconsolidated joint
ventures amounted to EUR 5.3 billion (2003: EUR 5.4 billion).

Segment Reporting Changes

During the second quarter of 2004, Ahold changed the
organizational and managerial responsibilities of the companies
reported in the Other Business Segment (including the separately
managed Real Estate companies and Ahold Coffee Company).
Beginning in the second quarter of 2004, the managerial
responsibilities of these companies have been transferred to the
management of the relevant retail companies.

The reported net sales figures for the first half year of 2003
therefore have been adjusted as follows: a total of EUR 27
million of net sales from the Other Business Segment have been
included in Other Europe Retail (EUR 26 million) and Other USA
Retail (EUR 1 million).

The reported net sales figures for the first quarter of 2004
have been adjusted as follows: a total of EUR 16 million net
sales from the Other Business Segment have been included in
Other Europe Retail (EUR 15 million) and Other USA Retail (EUR 1
million).

CONTACT:  ROYAL AHOLD N.V.
          Albert Heijnweg 1
          1507 Eh Zaandam,
          The Netherlands
          Phone: +31 (0)75 659 57 20 (office hours)
          Phone: +31 (0)75 659 91 11 (outside office hours)
          Fax:   +31 75 659 8350
          Email: corp.communications@ahold.com
          Web site: http://www.ahold.com


BRASKEM: EBITDA Reaches R$1.1 Billion in 1H04
---------------------------------------------
BRASKEM S.A. (NYSE:BAK) (BOVESPA:BRKM5) (LATIBEX:XBRK), leader
in the thermoplastic resins segment in Latin America and one of
the five largest Brazilian privately-owned industrial companies,
announced Thursday its results for the second quarter of 2004.

HIGHLIGHTS

Braskem's maintained its upward trajectory in relation to
operating performance reaching a record EBITDA of R$615 million
in 2Q04. Accumulated EBITDA for the year already amounts to
R$1.1 billion. In addition to the EBITDA performance, the
quality of the operating performance of Braskem is evidenced by
an increase in sales volume in the domestic market, combined
with the maintenance of the export levels which accumulated US$
353 million by the end of the 1st half of 2004. The capacity
utilization rates kept their upward trend, confirming the
improvement in the petrochemical industry scenario, particularly
in Brazil.

As commented by Jose Carlos Grubisich, Braskem's CEO:

"it is important to highlight the consistence and quality of the
operational result reported by Braskem. In the last twelve
months, the Company's accumulated gross revenue exceeded R$12
billion and the EBITDA accumulated in the same period was above
R$2 billion. The higher demand for thermoplastic resins in the
domestic market had already been foreseen by Braskem. The market
for our strategic products -- Polyethylene (PE), Polypropylene
(PP) and PVC -- grew by 10% in the first half 2004 in relation
to the same period of the previous year, reflecting the recovery
of the Brazilian economy. The margins provided by our products
increased even in a challenging environment as far as naphtha
prices and the exchange rate unfavorable trend are concerned.
Also, the announced capacity increases for PP, PVC and, more
recently, the additional 30 thousand tons of Polyethylene in
Camacari unit in Bahia, reassure Braskem's competitive advantage
to face the growing demand for its products through globally
competitive investments and confirm our leadership position in
the region."

According to Paul Altit, Braskem's CFO: "Braskem has maintained
its focus on debt management and continued with its strategy of
prioritizing the use of operational cash flow to amortize short-
term debt, mainly the dollar-denominated portion of the debt not
associated to trade finance lines. At the same time, the Company
concentrated efforts to extend the maturities of its financial
liabilities and to increase liquidity levels, improving, then,
the Company's strategic, financial and operational flexibility
levels, while continuing the reduction process of its capital
cost".

Braskem in Figures
R$million
except where
otherwise             2Q04   2Q03   Chg.%   1H04   1H03   Chg.%
indicated              (A)    (B)  (A)/(B)   c    (D)  c/(D)
   -------------------------------------------------------------
Gross Revenues         3,502  2,651    32    6,260  5,537    13
Net Revenues           2,742  2,155    27    4,883  4,447    10
Gross Profit             628    420    50    1,185    889    33
Gross margin (%)        22.9   19.5  3 p.p.   24.3   20.0  4 p.p
EBITDA*                  615    405    52    1,144    855    34
EBITDA margin (%)       22.4   18.8  4 p.p.   23.4   19.2  4
p.p.
Net Income (loss)       (302)   338    na     (292)   468    na

Braskem in Figures
R$million
except where
otherwise            1H04   1Q04   2003   Chg.%   Chg.%   Chg.%
indicated             (A)    (B)    c  (A)/(B) (A)/c (B)/c
    ------------------------------------------------------------
Net Debt in US$
  million             2,178  2,183 2,166      0        1      1
Net Debt              6,768  6,351 6,258      7        8      1
Net Debt/EBITDA
  - LTM**             3.28x  3.42x 3.52x     (4)      (7)    (3)

* EBITDA = Earnings before interest, taxes, depreciation and
  amortization / **LTM = last twelve month


CEMIG: Net Profit Up 4% in 2Q04
-------------------------------
Cemig informs its stockholders and investors that, in a meeting
held on 28 July 2004, the Supervisory Board was informed of the
consolidated financial statements for the first half of 2004,
which will be sent to the CVM on 4 August.

The financial statements showed net profit of R$ 557 million, or
R$ 3.44 per thousand shares. This compares with profit of R$ 535
million in the same period of 2003, representing an increase of
4%.

Sales revenue reached R$ 3.395 billion. EBITDA was R$ 1.141
billion, an increase of 60% from the second half of 2003.

Sales of electricity were 18,670 GWh, 4.5% more than in the
first half of 2003, with sales to final consumers totaling
18,420 GWh, 3.7% more than in first half 2003.

Operational expenses were 20% higher, led by: purchases of
natural gas for resale, which were up 86%; outsourced services,
which increased 20%; and energy bought for resale, 4% higher
than in the first half of 2003.

Personnel expenses were 31% higher, primarily resulting from
provisioning for expenses under the Voluntary Retirement
Program, totaling R$ 24 million, which will make possible the
reduction of approximately 1,000 in the company's number of
employees.

The financial result, which was impacted by payment of R$ 200
million in Interest on Equity, also made a significant
contribution.

Cemig will hold a meeting with the domestic and international
investor markets on 5 August, announcing further details and
making comments.

Belo Horizonte, 28 July 2004
Mr. Flavio Decat de Moura
CFO and Director of Investor Relations

CONTACT: CEMIG
         Av.Barbacena, 1200
         Santo Agostinho - CEP 30190-131
         Belo Horizonte, MG
         Brasil
         Fax:  (0XX31)3299-4691
         Tel.: (0XX31)3349-2111


EMBRATEL: Records BRL64M Loss in 2Q04
-------------------------------------
Embratel revealed losses in its 2Q highlights:

- Net revenue was R$1.8 billion in the second quarter of 2004,
increasing 8.5 percent compared to the second quarter of 2003.
Compared to the first quarter of 2004, revenues declined 4.5
percent. Year-to-date total revenues were R$3.7 billion.

- Local revenues represented 8.6 percent of total net revenues
in the second quarter of 2004. Quarter-over-quarter, local
services revenue rose 13.5 percent.

- EBITDA in the second quarter of 2004 was R$347 million. EBITDA
was impacted by the revenue decline as well as by non-recurring
items (see below for a detailed discussion).

- Net loss in the second quarter of 2004 was R$64 million.
Bottom line was also impacted by the devaluation of the currency
on our non-hedged foreign currency debt and by non-recurring
items.

- Total debt remained flat at R$4.1 billion reflecting the
devaluation of the currency despite some debt repayment.

- Total capital expenditures in the second quarter of 2004 were
R$191 million.

- The administrative process on the withholding tax on outbound
remittances is practically terminated with a favorable outcome
to Embratel (see Other Information below).

Domestic Long Distance:
(Year-over-year growth of 4.5%)

Domestic long distance revenue was R$978 million representing a
4.5 percent increase when compared to the second quarter of
2003. The year-over-year DLD revenue growth is explained by the
ability to participate in the SMP long distance market and to
the substitution for advanced voice that are under term
contracts.

Compared to the first quarter of 2004, domestic long-distance
revenues declined 9.8 percent. Competition and the introduction
of new anti- raud practices resulted in loss of basic voice
traffic in the consumer segment. Another factor which
contributed to a lower domestic long distance revenue was the
fact that the mobile industry is having difficulty billing
clients and Embratel is being affected.

The company continues to replace basic voice revenues with
advanced services and has continued to grow the number of 0800
and VipPhone clients. The number of VipPhone clients increased
10 percent quarter-over-quarter and more than 30 percent since
June 2003.

Year-to-date domestic long distance revenues were R$2.1 billion
representing an increase of 9.1 percent when compared to the
first half of 2003. The increase in revenues is attributed to
the entry into the SMP market and tariff increases.

International Long Distance:

International long distance revenue was R$188 million in the
second quarter of 2004 compared to R$215 million in the second
quarter of 2003 and R$203 million in the first quarter of 2004.
Competition (from legal and illegal providers), and less SMP
revenues (see above) were the main causes for the decline in the
second quarter of 2004. International revenues accumulated in
2004 were R$391 million compared to R$441 million in the first-
half of 2003.

Data Communications:
(Quarter-over-quarter growth of 4.1%)

Embratel's data communications revenues were R$432 million in
the second quarter of 2004 compared to R$438 million in the
second quarter of 2003 and R$415 million in first quarter of
2004. The quarter-over-quarter 4.1 percent growth in data
revenues resulted from the higher wholesale revenues as well as
to a short-term contract.

In the first six months of 2004, data revenues reached R$847
million compared to R$893 in the prior year period. The decline
is mainly explained by price reductions and the termination of
the contract with UOL, an Internet service provider, in the
first quarter of 2003 and the general downturn of the Internet
provider market.

During the second quarter of 2004, Embratel's free Internet
service provider, Click21a launched its new portal with
exclusive content and a modern look & feel. It continued to grow
in usage hours and, less than a year after launch, it has passed
the mark of 900,000 subscriptions.

With the success of Click21, Embratel is rapidly building an
important relationship tool, a high quality franchise and user
base that will be leveraged for Embratel's broadband
initiatives.

Local Revenue:

Embratel ended the second quarter of 2004 with local revenues of
R$155 million reflecting a substantial growth since a full-blown
commercial launch of the service in the second quarter of 2003
and a 13.5 percent increase relative to the prior 2004 quarter.
This quarter-over-quarter revenue growth derives not only from
the growth in the sale of Viplines but also from inbound
interconnection revenues.

Year-to-date, local service revenues were R$291 million,
compared to R$25 million in the prior year period. Embratel's
local services continue to present a healthy growth. Quarter-
over-quarter, the number of Vipline clients rose 57.7 percent
and the capacity made available to these clients has increased
51.1 percent in the second quarter of 2004.

The service is being very successful with medium size companies.
Livre„, Vesper's first service launch with Embratel continues to
have wide acceptance. Vesper's client base has continued to
grow. Vesper is currently launching "Livre 2 em 1". This product
allows the customer to have two telephone lines in the same
telephone equipment. The service allows the use of the same
phone in multiple locations - such as at home and at work, for
example.

Sale of ADSL services over Embratel's own networks is now
available in selected areas of Porto Alegre and Rio de Janeiro.
These services are being provided to small businesses and the
high-end residential market.

EBITDA

Impacted by several non-recurring items:

In the second quarter of 2004, EBITDA was R$347 million compared
to R$391 million in the second quarter of 2003 and R$448 million
in the first quarter of 2004. EBITDA margin was 19.2 percent in
the second quarter of 2004. EBITDA margin was impacted by higher
interconnection costs and non-recurring payments and income.

Interconnection

Interconnection costs, as a percentage of net revenues, rose to
46.9 percent in the second quarter of 2004. The quarter-over-
quarter increase in interconnection costs is related to several
factors including: the increase in mobile interconnection in mid
February - an average of 7.9 percent - which affected the cost
of SMP traffic as well as Vesper's local VC1 traffic cost and
higher settlement which offset the decline in interconnection
due to lost traffic. The increase in telco ratio was also
impacted by the fact that some mobile interconnection payments
relate to the unbilled SMP revenues.

Note that due to the implementation of new systems that have
enabled us to have a better visibility of the behavior of
certain components of our interconnection costs, some timing
adjustments, with no cash impact, were made to the
interconnection cost in the second quarter. As a result,
interconnection was understated in the first quarter of 2004 and
overstated in the second quarter of 2004. Thus, the year-to-date
telco ratio of 45.7 percent is a better indicator of the telco
run rate.

In Cost of Services, the "Other" category includes the costs of
handsets sold by Vesper. Embratel did not have this cost in 2003
and in the first quarter of 2004 the cost of handsets was
classified under SG&A. In the second quarter of 2004, Embratel
not only reclassified the handset cost relative to the first
quarter of 2004 in the "Other Cost of Services" line, and but
added the handset cost relative to the second quarter cost 2004
per se.

SG&A

SG&A, excluding personnel, remained flat quarter-over-quarter.
Third party expenses rose slightly and provision for doubtful
accounts remained flat as a percentage of net revenue.

Personnel expenses were increased by a non-recurring R$92
million cash expense related to the execution of "The Plan for
Retention of Executives and Strategic Persons" which was
triggered by the expected change of control.

Other operating income

EBITDA in the second quarter of 2004 benefited from several non-
recurring reversals. Embratel credited R$66 million (non-cash)
due to the reversal of a provision which was constituted in the
second half of 2003 and was intended to accommodate the risk
that the interconnection tariff adjustment would be based on
IGP-DI index instead of the of the IPCA as established by the
courts' stay.

Embratel also recovered a credit of R$38 million related to the
excess payment of FUST. Based on an Anatel decision Embratel was
granted the prerogative of making its contribution to FUST net
of the interconnection payments. Based on this decision,
Embratel recovered the payments made in excess to FUST as well
as the corresponding interest for the period. The excess funds
were retained by Anatel.

EBITDA accumulated in the first half of 2004 was R$796 million,
and considering the nonrecurring itens was flat when compared to
the first half of 2003. EBITDA margin in the first six months of
2004 was 21.5 percent.

Vesper impact on EBITDA

Vesper has continued to have a negative impact on EBITDA. In the
second quarter of 2004, Vesper had a negative EBITDA of R$36
million. Year-to-date EBITDA loss has been R$59 million. Vesper
has accelerated its sale process by aggressively pricing
handsets to stimulate sales.

EBIT

EBIT was R$58 million in the second quarter of 2004 compared to
R$104 million in the corresponding 2003 quarter and R$155
million in the first quarter of 2004. The decline in EBIT
results from the decline in revenues, increase in
interconnection costs and the nonrecurring items mentioned
above.

Year-to-date EBIT was R$213 million compared to R$203 million in
the first six months of 2003. This improvement results from
reduced interconnection costs and a lower allowance for doubtful
accounts.

Net Income

Embratel registered a net loss of R$64 million in the second
quarter of 2004 due to declining revenues, higher
interconnection costs, non- recurring retention expenses and
higher financial expenses due to a 6.8 percent devaluation of
the currency. Attenuating the loss were a non- recurring
interest income credit of approximately R$20 million recorded as
financial income on the FUST funds not due but retained by
Anatel and an extraordinary non-operating income of R$106
million related to a recovery of ILL tax inflationary purges and
the interest related to those amounts.

On May 2004, the Judge of the 26th Federal Court determined the
final closure of the process and as a result, Embratel was able
to record the credit of the above-mentioned amount.

In the first six months of 2004 Embratel registered a loss of
R$60 million compared to profits of R$139 million in the same
period of the previous year.

Financial Position

Cash position on June 30, 2004 was R$969 million. During the
quarter cash was used for debt payment and retention
disbursements. Embratel ended the quarter with a total
outstanding debt of R$4.1 billion.

Although debt repayment, net of new debt (all related to the
refinancing agreement) was of approximately R$134 million, the
impact of the 6.8 percent devaluation of the Real relative to
the US dollar increased the debt level expressed in Reais. Net
debt rose to R$3.2 billion increasing due to the uses of cash
mentioned above.

Short-term debt (accrued interest, short-term debt and current
maturity long-term debt in the next 12 months) was R$1.3
billion. Approximately 80.2 percent of short-term debt is either
hedged or in Reais.

In the second quarter of 2004, Embratel rolled over the
remaining loan maturities that were part of the Financing
Agreement signed in March of 2003.

Receivables

Embratel ended the second quarter of 2004 with a net receivable
balance of R$1.7 billion, flat relative to the prior 2004
quarter.

CapEx

Total capital expenditures in the quarter were R$191 million
reflecting additional expenditure on Star One's satellite under
construction. The breakout of this expenditure is as follows:
local infrastructure, access and services- 19.4 percent
(including PPIs and Vesper); data and Internet services - 15.9
percent; network infrastructure - 3.2 percent, others - 17.6
percent and Star One - 44.0 percent.

Other Information

Regulatory Agenda

During the quarter, Anatel issued regulation on line sharing
unbundling. Embratel believes this is an important step towards
leveling the competitive playing field and it will enable
Embratel to expand its addressable local market offering
broadband as well as internet and voice services.

Also during the quarter, Anatel ruled on the reduction in the
number of local areas from 7,600 to under 5,400. This will
enable Embratel to eliminate unprofitable short-distance long
distance calls while enlarging the addressable local market. The
reduction in the number of local areas will take place in
September of this year.

Withholding Tax on Outbound Remittances - Status Update

Fact 1 - Embratel was assessed by the "Receita Federal" (Federal
Revenue Agency) for the non-payment of income tax on remittances
of payments to foreign telecom operators. The assessment
amounted to R$411 million and corresponded to the period between
December 1994 and October 1998.

Fact 2 - In September 2002 the "Delegacia de Julgamento" of the
Federal Revenue Agency reduced the assessment to R$12.9 million.

Fact 3 - In December 2003, the "Conselho de Contribuintes" (Tax
Payer Council) of the Internal Revenue unanimously negated the
Federal Union's appeal to the former judgement by the "Delegacia
de Julgamento".

Given that, on July 16, 2004 the Internal Revenue was formally
notified of the decision of the "Conselho de Contribuintes", and
taking into consideration that such decision is unanimous and
there is no other decision from that "Conselho de Contribuintes"
with contradictory interpretation on a similar matter, there is
no legal basis for further appeals on this matter. The company's
legal advisors have good reason to believe that the decision of
the "Delegacia de Julgamento" reducing the assessment to R$12.9
million from the original R$411 million is final.

Tariff Increases

Anatel approved tariff increases using the price adjustment
formula and IGP-DI index at the end of June. The approved rates
were as follows:

- domestic long distance - 3.2 percent increase;
- international long distance - 8.22 percent decline;
- TU-RL - 10.5 decline;
- TU-RIU - 3.2 percent increase.

Subsequently, the Supreme Court approved the IGP- DI as the
index upon which to base June 2003 tariff increases. This
decision increases the base tariff rate on which 2004 increase
will be applied, however actual implementation depends on the
outcome of talks with the Government.

Since Embratel is an authorized local service provider, it is
not subject to the same local service tariff adjustment ceiling
applied to local service concessionaires.

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

(*Note: Throughout this document, the second quarter 2003 income
statement was restated to reflect the reclassification of
certain expenses related to financial transactions such as taxes
(PIS/Cofins on financial income and CPMF) and expenses such as
bank expenses and letters of credit costs below the operating
line under the financial expense account. This reclassification
occurred in the third quarter of 2003. Previously, these
expenses were classified either as third party or as taxes both
under G&A expenses.)

CONTACT: Rua Regenta Feijo
         166 sala 1687-B Centro
         Rio de Janeiro
         20060-060
         Brazil
         Phone: 5521-519-6474

         Web Site: www.embratel.net.br


GTECH Holdings: Provides Update on Brazilian Matters
----------------------------------------------------
GTECH Holdings Corporation (NYSE: GTK) provided Thursday an
update on recent developments in Brazil. The Company announced
that it has received notice from the United States Securities
and Exchange Commission (SEC) that it has approved a formal
order of investigation in the preexisting matters the SEC staff
has been examining related to media reports about public
corruption issues in Brazil. The Company has been advised by the
SEC staff that the new order is unrelated to any recent or new
developments in the matter and is routine and intended to give
it adequate investigatory powers should it desire to employ
them. The SEC has also sent the Company a subpoena for the
production of certain documents and records related to GTECH's
operations in Brazil that is identical to the previously-
disclosed informal request for documents from the SEC.

The Company has been cooperating fully with all SEC information
requests which require the review of a substantial volume of
documents, many in Portuguese, from its Brazilian operations.
The SEC has expressed its satisfaction with GTECH's cooperation
in this matter.

An internal review conducted by management and under the
supervision of the independent directors of the GTECH Board of
Directors is continuing. From what has been learned from that
investigation to date, the Company is confident that it acted
appropriately and GTECH's compliance program worked as it is
intended.

In other related developments, GTECH has been formally served
with the civil complaint filed by the Public Ministry in
relation to its contracts with Caixa Economica Federal (Caixa).
The Company will now be afforded the opportunity to review the
evidence developed by the public ministry attorneys. The Company
reiterated that it has good and adequate defenses to the claims
made in the lawsuit, will vigorously defend itself in the
proceedings, and expects a positive outcome.

This lawsuit seeks to impose damages equal to (i) the sum of all
amounts paid to GTECH under the 1997 contract and the 2000
contract which has been estimated to be $650 million to date;
(ii) certain other permitted amounts; (iii) minus our proven
investment costs; and (iv) potential penalties. GTECH believes
that the services were provided under valid and enforceable
contracts and as such does not anticipate material liabilities
to result from this claim.

As part of that civil action, the Company also filed an appeal
to the injunctive order that placed the restrictions on the
transfer or sale of the Company's Brazilian assets and placed 30
percent of the regular revenues from its contract with Caixa
under court control. The court is expected to take up that
appeal when it returns from its current recess.

GTECH, a leading global information technology company with over
$1 billion in revenues and more than 5,500 people in 45
countries, provides software, networks, and professional
services that power high-performance, transaction processing
solutions. The Company's core market is the lottery industry,
with a growing presence in commercial gaming technology and
financial services transaction processing. For more information
about the Company, please visit GTECH's website at
http://www.gtech.com.

CONTACT:  Robert K. Vincent, Public Affairs
          GTECH Corporation, 401-392-7452

          GTECH HOLDINGS CORP
          55 Technology Way
          West Greenwich, RI 02817
          Phone: (401) 392-1000
          Fax: (401) 392-1234
          Email: info@gtech.com
          Web Site: http://www.gtech.com/


PARMALAT: Files Suit to Recover Damages From Citigroup
------------------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates that Dr. Enrico Bondi, Parmalat's Extraordinary
Commissioner, has filed on Thursday, July 29, 2004, an action in
the Superior Court of New Jersey ("the action") to recover
damages from Citigroup and certain of its subsidiaries.

The action is part of a process through which the Extraordinary
Commissioner, following the approval of Parmalat's Industrial
and Financial Restructuring Plan, will seek recovery from third
parties believed to have played a role in Parmalat's collapse.

Parmalat's Industrial and Financial Restructuring Plan
contemplates the distribution to its future shareholders of at
least 50% of Parmalat's distributable profits arising from the
next 15 years' annual results, including any eventual proceeds
derived from revocatory actions or actions for damages.

CONTACT: Parmalat Finanziaria
         piazza Erculea 9, 20122
         Milano (MI), ITALIA.
         Phone: +39 02 8068801
         Fax: +39 02 8693863

         Parmalat Partecip. Do Brasil Ltda
         Rua Gomes de Carvalho
         1629 - CEP 04547-005
         Sao Paulo, SP.

         Web Site: www.parmalat.com


PARMALAT: Settles Pending Litigation With U.S. S.E.C.
-----------------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
communicates that it has reached a settlement of pending
litigation with the Securities and Exchange Commission by
entering into a Consent and Undertaking to the terms of the
settlement.

As part of the settlement, Parmalat, without admitting or
denying the allegations in the SEC's First Amended Complaint
(filed on July 28, 2004), agreed to a Permanent Injunction
prohibiting Parmalat and its affiliates from violating
U.S.securities laws. In addition, Parmalat has agreed to comply
with extensive provisions concerning corporate governance and
shareholder participation, which also are an important part of
its Restructuring Plan in Italy, and to cooperate with the SEC
investigation in the Parmalat matter.

The settlement resolves all the claims against Parmalat in the
SEC's Complaint. The settlement does not provide for a monetary
payment by Parmalat.

CONTACT: Parmalat Finanziaria
         piazza Erculea 9, 20122
         Milano (MI), ITALIA.
         Phone: +39 02 8068801
         Fax: +39 02 8693863

         Parmalat Partecip. Do Brasil Ltda
         Rua Gomes de Carvalho
         1629 - CEP 04547-005
         Sao Paulo, SP.

         Web Site: www.parmalat.com


TELEMAR: Reports 2Q04 Net Income of BRL78M
------------------------------------------
Telemar's financial report for the second quarter of 2004
highlighted the following items:

- Our customer base increased by 823,000 clients in 2Q04, to
reach 20.6 million subscribers by the end of the quarter, being:

   Wireline: 15.2 million lines in service (+0.5% qoq)
   Wireless: 5.1 million subscribers (+15.5% qoq)
   ADSL: 345,000 subscribers (+21.5% qoq)

- Net revenues amounted to R$ 3,798 million, increasing by 3.0%
and 13.6% over 1Q04 and 2Q03, respectively. For the quarter,
wireline ARPU stood at R$ 75, and wireless ARPU reached R$ 24.

- Consolidated EBITDA was R$ 1,545 million, down 8.1% from 1Q04,
and up 3.7% from 2Q03.

- Consolidated margin stood at 40.7% (45.6% for 1Q04).

- Net financial expenses totaled R$ 458 million for the quarter
(+11.4% from 1Q04).

- Net income for the quarter amounted to R$ 78 million, or R$
0.20 per thousand shares (US$ 0.07 per ADR), compared to a net
loss of R$ 165 million for 2Q03.

- Capital expenditures (Capex) totaled R$ 337 million, equal to
8.9% of net revenues, and amounting to R$534 million in 2004.

- Free cash flow after capex amounted to R$ 1,538 million (2Q03
- R$ 942 million), amounting R$ 2,247 million for the first half
of 2004, compared to R$1,064 million for the first half of 2003.

- At the end of June/04, net debt totaled R$ 7,355 million, down
12.3% and 22.7% from Mar/04 and Jun/03, respectively.

- At the end of June 2004, six bundled products, from wireline,
wireless and broadband, had already been offered to Telemar
customers.

2. OPERATING PERFORMANCE REVIEW

2.1 Customer Base:

At the end of the quarter Telemar had 20.6 million customers,
with 15.2 million in fixed line, 5.1 million in mobile, and
345,000 in broadband services. In relation to Jun/03, the
increase amounted to 3.4 million customers (+19.8%).

2.1.1 Wireline and Broadband Services:

The wireline installed plant remained virtually unaltered from
the previous quarter, consisting of 17.3 million lines, of which
15.2 million was the quarter average for lines in services
(+0.5% in the quarter), including 662,000 public phones. The
utilization rate was 87.8% in June/04.

During 2Q04, 793,000 lines were activated and 717,000
disconnected, with net additions of 76,000 lines. The wireline
plant in service grew by 2.0% over the same period of last year.
The digitalization rate of the network was 99%.

ADSL (Velox) activations maintained the strong growth seen in
recent quarters, reaching 345,000 subscribers at the end of 2Q04
(+21.5% from Mar/04), with 60,000 new customers being acquired
during the quarter.
Our ADSL customer base already accounts for 2.3% of total fixed
lines in service, compared to 1.9% in Mar/04 and 0.6% in Jun/03.

2.1.2 Wireless Services:

At the end of 2Q04, Oi had 5.1 million customers, with a market
share in excess of 21% in its region. This corresponds to a
15.5% growth on the previous quarter and 127.8% on 2Q03. During
2Q04, additions amounted to 979,000 users, while disconnections
totaled 294,000, i.e. a net expansion of 685,000 new customers.
Oi, in fact, accounted for approximately 35% of net additions in
its region.

The 294,000 disconnections represented a churn rate of 6.2% for
the period (3.6% in the 1Q04), being around 122,000 as a result
of prepaid subscribers which did not comply with the
registration process required by the Federal Government.

Oi's customer mix at the end of the period consisted of 85.3%
and 14.7% of customers under prepaid and postpaid plans,
respectively. The average customer base for the quarter was 4.8
million customers (1Q04
- 4.2 million).

2.1.3 Contact Center Services:

At the end of the quarter, Contax had 14,887 attendant
positions, growing by 18.7% compared to 1Q04 and 67.6% compared
to 2Q03. In April/04, Contax and Orbitall - the main credit card
processing company in the country - signed the largest agreement
to date in Brazil's call center market. Under this agreement,
Contax will be responsible for managing Orbital's contact center
operations, while Orbitall will be in charge of strategy,
products and systems for the credit card market.

Pursuant to that agreement, in April/04 Contax took over the
management of Orbitall's contact centers, comprising 1,853
attendant positions serving large companies, such as Credicard,
Citibank, Ita£, Caixa Econ“mica Federal, Banespa, and Sodexho.

3. CONSOLIDATED REVENUES

3.1 Revenues:

In 2Q04, consolidated gross revenues totaled R$ 5,316 million,
growing by R$ 171 million (3.3%) on 1Q04, as a result of the
increase in wireless (R$ 121 million), call center (R$ 38
million) and ADSL (R$ 17 million) revenues.

Compared to 2Q03, the increase amounted to R$ 746 million
(16,3%), driven by the growth in wireline (R$ 497 million -
local, long-distance and data services) and wireless revenues
(R$ 201 million).

Consolidated net revenues reached R$ 3,798 million, growing by
3.0% and 13.6% on 1Q04 and 2Q03, respectively. Net revenues for
the first half of the year totaled R$ 7,487 million, up 14.1%
from 1H03.

3.1.1 Wireline Services:

Gross revenues from wireline services in the quarter rose 0.2%
and 11.7% over the previous quarter and the same period of last
year, respectively.

- Local ex-VC1 (monthly subscription, pulse, installation fee):
gross revenues from local services decreased 0.2% from 1Q04, due
to lower pulse-based revenues. Compared to 2Q03, local revenues
grew 11.6%.

- Revenues from Monthly subscriptions amounted to R$ 1,417
million in 2Q04, virtually unaltered from the previous quarter
(R$ 1,415 million) on account of a stable average plant in
service during the period.

- Pulse-based revenues reached R$ 628 million for the quarter,
down 1.1% from 1Q04. Compared to the same period of last year,
these revenues increased by 5.4%. Pulse-based revenues are being
impacted by the increased ADSL (Velox) plant, whereby traffic
measured is replaced by a flat tariff charged to heavy internet
users, in addition to the increasing migration to wireless
services and the continued weak Brazilian economy.

- Local fixed-to-mobile Call (VC1): revenues increased by 2.5%
compared to 1Q04. The tariff adjustment authorized in Feb/04
(7.0% on average) was partially offset by the 4.1% decrease in
traffic during the quarter. Compared to 2Q03, the 7.2% decline
in revenues arose from the traffic decrease (13.7%), chiefly as
a result of the migration of fixed-to-mobile calls to mobile-to-
mobile calls due to tariff differences and blocked lines for
this calls (4.2 million).

- Long-distance (intra and inter-regional, international and
VC2/VC3): revenues amounted to R$ 890 million for the quarter
(0.6% and 30.7% from 1Q04 and 2Q03, respectively). The lower
revenue growth in 2Q04 compared to the previous quarter was
driven by factors such as the non-recurring revenues from fixed-
to-mobile calls (VC2/VC3) obtained with a TV show during 1Q04
(R$14 million), and one-time settlements with wireless companies
(Claro and TIM), in 1Q04, relating to SMP calls from prior
periods (R$15 million). During 2Q04, Telemar's market share
continued to increase in all segments, most notably the inter-
regional segment. Revenues from mobile phone originated calls
(SMP) grew R$ 19 million in the quarter, totaling R$ 109
million. Compared to 2Q03, the 30.7% increase in long distance
revenues (R$ 209 million) was mainly due to market share gains,
in particular the increased number of SMP calls using the 31
code, up R$ 88 million during the period.

- Remuneration for network usage: revenues decreased 4.7% (R$ 14
million) from the previous quarter due to provisions relating to
claims by other operators, for the approximate amount of R$ 20
million. These revenues dropped by 10.8% compared to 2Q03,
chiefly on account of our increased market share in long-
distance services, as well as new points of presence from other
telecommunications companies in Region I.

- Data transmission services: revenues increased by 2.5% (R$ 9
million) over 1Q04. Such performance is a result of increased
sales of Velox (ADSL) services, up R$ 17 million, as well as
switching packages and frame relay services, partly offset by
lower revenues from dedicated line rentals, basically due to the
canceling of revenues from contract revaluations (R$ 11
million). Compared to 2Q03, revenues from data services
maintained a robust 29.2% rate of growth (R$ 84 million), driven
by the increase in sales of Velox (R$ 62 million).

- Public telephones: revenues were down 1.9% from 1Q04, due to
the decline in phone card sales compared to the previous
quarter. Such sales are tipically boosted in 1Q04 by summer
vacations and tourism in our region. When compared to 2Q03, the
20.7% increase is mainly attributable to the 14% adjustment in
price of phone card units (at the end of Jun/03) and the 8%
increase of credits sold during the period.

3.1.2 Wireless Services:

Gross revenues from wireless services amounted to R$ 493
million, growing by 32.6% (R$ 121 million) compared to 1Q04,
mainly due to the increased handset sales during the quarter
(driven by Mothers' and Valentine's Days promotions), leading to
a R$ 82 million growth in revenues. Revenues from services rose
by R$ 39 million (14.1%) on 1Q04, in line with the increase of
the average customers base.

Revenues from mobile data services amounted to R$ 23 million,
representing 5.2% of Oi total service revenues. Consolidated
revenues from remuneration for the use of the wireless network,
totaling R$ 56 million - after elimination of R$123 million
relating to TMAR -increased 21.9% over 1Q04.

When compared to 2Q03, the growth in consolidated service
revenues was 81.7%, while the average customer base increased by
140.1%. The different growth reflects a change in the criteria
for measuring the remuneration for the use of networks between
mobile operators ("bill & keep") and the average customer mix
increase (prepaid 158.1% and postpaid 72.1%). In 2Q04, the
average revenue per user (ARPU) was R$ 23.90, in line with the
previous quarter (R$ 23.80).

Net revenues from the resale of 773,000 handsets amounted to R$
133 million (87.3% over 1Q04 in terms of revenues and 81.5% in
terms of handsets sold).

3.1.3 Contact Center Services:

In 2Q04, Contax gross revenues amounted to R$ 177 million, up
30.5% and 75.2% from 1Q04 and 2Q03, respectively. The main
driver was the acquisition of new customers, with a R$ 38
million contribution to revenues for 2Q04.

3.1.4 Revenue Breakdown:

Changes in the breakdown of consolidated gross revenues for 2Q04
compared to the same period of last year are as follows. Once
again, increases were seen in the share of wireless services
(from 6% in 2Q03 to 9% in 2Q04), long- istance services (from
15% in 2Q03 to 17%), and data (from 6% in 2Q03 to 7%), to the
detriment of local wireline services, including VC1 (from 57% in
2Q03 to 52%) and network usage (from 7% in 2Q03 to 5%).

3.2 Operating Costs and Expenses:

Operating costs and expenses (ex-depreciation and amortization)
for the quarter were up 12.2% (R$ 245 million) from 1Q04,
primarily due to the increase in costs for handsets (R$ 102
million) and thirdparty services (R$ 75 million), as well as
higher provisions for contingencies (R$ 70 million), and the
increase in interconnection and personnel costs (R$ 50 million)
was partly offset by a reduction in the provisions for doubtful
accounts (R$ 46 million) in the quarter. The increase in
operating costs and expenses on 2Q03 was 21.6%.

Interconnection costs increased by 4.3% (R$ 25 million), chiefly
due to the average 7.2% rate adjustment for mobile
interconnection (VU-M) in Feb/04, up R$18 million, and the
increased volume of long-distance calls originated on mobile
phones using our selection code.

Interconnection costs accounted for 27.6% of our total operating
cost and expenses in 2Q04 (1Q04 - 29.8%; 2Q03 - 33.5%).
Personnel expenses increased 10.5% (R$ 25 million) quarter-over-
quarter, mainly due to new contracts signed by Contax which led
to the addition of nearly 4,000 employees, in the quarter,-
despite advanced payments of R$ 5 million in the period (non
recurring) - with an impact on the consolidated payroll of R$ 24
million.

When compared to 2Q03, the 23.7% growth in expenses (R$ 52
million) also reflects the expansion of Contax operations, whose
staff increased 52.7%. It should be pointed out that over the
past 12 months the number of employees in the wireline business
(TMAR/TNL) decreased by 1,270, while 268 new employees were
hired by the mobile business.

Handset costs and Other (COGS) increased by 85.0% compared to
1Q04, mainly due to the 81.5% expansion in the volume of handset
sales during the period. Compared to the same period of last
year, the increase was 47.0%, also as a result of the growth in
handset sales (50.6%).

Third-party services increased by 14.4% quarter-over-quarter (R$
75 million), mostly on account of higher costs for maintenance
and improved plant quality (R$ 26 million), mainly the external
network (R$ 8 million) and the internal network (R$ 3 million),
and data/ADSL networks (R$8 million). Additional drivers of the
increase in these costs were higher sales commissions
(essentially Oi and Velox, R$ 24 million), consulting and legal
counsel expenses (R$ 10 million), as well as higher postage
expenses (R$ 4 million).

Compared to 2Q03, the increase was 20.9% (R$ 103 million),
mainly attributable to plant maintenance costs (R$ 38 million),
sales and dealers commissions (R$ 35 million), postage and
collection fees (R$
17 million).

Marketing expenses were in line with the previous quarter and
31.9% above 2Q03 figures. An increased competitive environment,
mostly in connection with wireless services, led us to launch
more aggressive sales campaigns for Mother's Day and Valentine's
Day. It should also be pointed out that we are seeking to
strengthen our position in the long-distance market, through
specific promotions for national and international calls, as
well to consolidate our position in the broadband market through
our ADSL service, Velox.

Provisions for doubtful accounts - PDA: declined by 25.4% (R$ 46
million) from 1Q04 levels, representing 2.5% of the quarter
consolidated gross revenues (1Q04 - 3.5%; 2Q03 - 3.3%). Factors
behind this improvement include the recovery of revenues, in
particular in the corporate, business and wholesale (telecom
service providers) segments, and the successful negotiation with
public sector customers, which resulted in collection of overdue
bills.

At Oi, PDA levels for the quarter represented 2.0% of gross
revenues (1Q04 - 3.7%), while at TMAR, PDA was equal to 2.5% of
gross revenues (1Q04 - 3.4%). Other operating expenses
(revenues): increased by R$ 41 million over the previous
quarter. This increase is chiefly attributable to higher
provisions for contingencies (R$ 79 million), mainly civil
claims (R$ 56 million), as a result of unfavorable court
decisions and agreements we reached recently, as well as a
higher volume of labor claims filed by outsourced employees
dismissed after the large plant expansion in 2001 (R$ 11
million). This line also includes other operating revenues (R$
26 million), substantially due to the reversal of taxes payable
and fines on overdue bills.

3.3 EBITDA:

Consolidated EBITDA amounted to R$ 1,545 million, with a 40.7%
margin (1Q04 - 45.6%), due to the increased costs and expenses
in the quarter, as described above. TMAR's consolidated EBITDA
was R$ 1,491 million (-8.3% and +4.7% over 1Q04 and 2Q03,
respectively). EBITDA margin for the period stood at 39.9%,
against 44.4% in 1Q04. Such decline reflects the increase in
costs during the quarter, in particular handsets and additional
provisions for contingencies.

- Oi's EBITDA was R$ 18 million, with a 3.3% margin (1Q04 - R$42
million and 9.7% margin). This decline was basically due to the
increase in costs and expenses arising from the strong growth in
handset sales and higher mobile interconnection costs derived
from long-distance calls using our code, originated outside
Region I (where the PSTN licence is held by Oi).

- Contax's EBITDA for the quarter amounted to R$ 16 million,
with a 10.0% margin (1Q04 - 13.6%).

Net financial expenses amounted to R$458 million in 2Q04, up
R$47 million from 1Q04, as a result of net monetary and exchange
variations, reflecting the depreciation of the real in the
quarter, as well as higher taxes and contribution on financial
revenues.

Financial revenues totaled R$ 161 million, a R$15 million
increase (10.3%) over the previous quarter, chiefly due to
exchange variations on accounts receivable (R$ 9 million),
mainly related to roaming and international long-distance calls.

Financial expenses amounted to R$ 619 million, increasing by R$
62 million on the previous quarter. The main items were:

1. interest on loans and financing, up R$ 8 million in the
quarter, due to a slight increase in total debt during the
period, partly offset by a reduction of the average interest
(SELIC) rate in the quarter, from 16.5% p.a. in 1Q04 to 16% p.a.

2. exchange results on loans and financing, with a R$ 29 million
increase in the quarter arising from:

   (a) exchange variation expenses (R$ 490 million), brought
about by the 6.8% devaluation of the real in the quarter, and
monetary variations (R$ 19 million);

   (b) exchange rate hedge results (R$ 319 million), arising
from revenues of R$ 598 million from exchange variations (1Q04 -
R$ 235 million), as a result of the devaluation mentioned above,
and interest expenses - CDI-based, amounting to R$ 279 million
(1Q04 - R$ 285 million).

3. other financial expenses, with a R$25 million increase
compared to 1Q04, mainly due to higher provisions for PIS/COFINS
taxes on financial income, and the increase in the COFINS tax
from 3% to 7.6%.

3.5 Net Income:

Consolidated net income for the quarter amounted to R$ 78
million (1Q04 - R$ 220 million; 2Q03 - loss of R$ 165 million),
equivalent to earnings of R$ 0.203 per thousand shares (1Q04 -
R$ 0.57), or US$ 0.067 per ADR in the quarter. In the first half
of 2004, net income totaled R$ 299 million, compared to a loss
of R$ 278 million in the first half of 2003.

4. DEBT

Consolidated gross debt totaled R$ 12,200 million at the end of
2Q04, while the consolidated position of cash and equivalents
reached R$ 4,845 million. At the end of the quarter, cash and
equivalents exceeded short-term debt by 75.4%.

At the end of the quarter, the consolidated net debt totaled R$
7,355 million, declining by R$ 1,033 million (12.3%) compared to
the end of Mar/04 and by R$ 2,164 million (22.7%) compared to
Jun/03.

At the end of 2Q04, loans in local currency amounted to R$ 3,193
million, mainly comprised of R$1,796 due to BNDES, at the
average cost of TJLP + 4.4% p.a., and R$ 1,221 million relating
to nonconvertible local debentures bearing interest at CDI+ 0.7%
p.a., maturing in 2006.

Foreign currency loans, in the amount of R$ 9,007 million -
including swap results of R$ 465 million bear interest at
contractual average rates of 5.8% p.a. for transactions in U.S.
dollar, 1.5% p.a. fixed for transactions in Japanese yen, and
10.5% p.a. fixed for a basket of currencies (BNDES).
Approximately 74.9% of the foreign currency loans were subject
to floating interest rates. Of the total foreign currency debt,
approximately 96% had some kind of hedge, with 81% in foreign
exchange swap transactions (88% of which contracted through
final maturity of the related debts), and 15% in financial
investments linked to the exchange variations.

Under the exchange swap transactions, exposure to foreign
currency fluctuations is transferred to local interest rates
(CDI). The average cost of swap transactions at the end of the
quarter was equal to 100.9% of the CDI rate.

During 2Q04, TMAR obtained funds amounting to R$ 377 million,
broken down as follows: R$ 272 million for the wireline capex
program (R$ 120 million from BNDES, R$ 88 million from ABN Amro
Bank and R$ 64 million from BNB - Banco do Nordeste do Brasil)
and R$ 105 million from a syndicate of banks and suppliers to
finance Oi's investment program and working capital
requirements.

Amortization in the quarter totaled R$ 684 million (1Q04 - R$
1,072 million), of which R$377 million relate to principal
repayments (1Q04 - R$ 736 million) and R$ 307 million relate to
cash interest expenses.

At the end of the quarter, the amount of intercompany loans was
R$1,642 million, in which R$ 1,502 million owed by TMAR to TNL
(down 42,8% from the end of Mar/04). The balance was owed by
other subsidiaries of TNL.

5. CAPITAL EXPENDITURES

During the quarter, Capex totaled R$ 337 million, of which R$
236 million was allocated to the wireline business and R$ 95
million to the wireless business. Year to date, capex amounts to
R$ 534 million, representing 7.1% of consolidated net revenues
(1H03 - 7.3%), and 16.6% of EBITDA.

6. CASH FLOW

The consolidated cash flow from operations reached R$ 1,876 for
the quarter (1Q04 - R$ 912 million). The consolidated free cash
flow, after investing activities, amounted to R$ 1,538 million
(compared to R$ 709 million in 1Q04 and R$ 942 million in 2Q03).

Worth mentioning is the positive change in working capital
during the quarter, while in 1Q04 the change was negative due to
a reduction in the supplier account (-R$ 742 million).

During the first six months of the year, the consolidated cash
flow after investing activities amounted to R$ 2,247 million,
compared to R$ 1,064 million in the first half of 2003.

7. MAIN EVENTS OF THE QUARTER

TNL and TMAR: Treasury stock cancelled

General Shareholder Meetings held by Telemar Norte Leste -TMAR
(5/13/04) and Tele Norte Leste - TNL (5/24/04) approved the
cancellation of treasury stock without share capital reduction.

Treasury stock cancelled:

a) TNL: 2,312,168,000 common and 4,624,337,000 preferred shares;
b) TMAR: 4,211,695,000 preferred class "A" shares;

Following the cancellation, the companies' stock capital is
comprised as follows:

                                    TNL              TMAR
Capital (R$)           7,120,864,712.98  4,812,021,018.99
Number of Shares
Common                  129,306,291,613   107,186,966,151
Preferred               258,612,581,399
Preferred "A"                 -           133,047,902,213
Preferred "B"                 -             1,433,365,001
Total Shares            387,918,873,012   241,668,233,365

For more details, please access:
http://www.telemar.com.br/docs/TNE_minutes_cancel_240504.pdf

TNL and TMAR: Reverse Stock Split

General Shareholders Meeting held by Telemar Norte Leste -TMAR
(5/13/04) and Tele Norte Leste - TNL (5/24/04) approved the
reverse stock split. In order to reduce administrative costs and
lend more transparency to share trading on the Bovespa, the
Boards of Directors of TNL and TMAR approved a grouping of
shares at the ratio of 1,000/1, that is, each lot of existing
shares will be converted into one share. Accordingly, effective
8/30/04 only grouped shares will be traded, with a single
valuation, and each ADR will represent one preferred share,
instead of 1,000 shares.

For more details, please access:
http://www.telemar.com.br/docs/TNE_minutes_cancel_240504.pdf

Sale of shareholding in iG

In May 2004 the Company sold 100% of the 6,791,217 shares
indirectly held in the capital of Internet Group Limited
"iG"(Cayman) for the equivalent to US$ 17,487,383.78. The
transaction is subject to the completion of a due diligence and
negotiation of the final terms of the documents.

Payment of Dividends and Interest on Capital (IOC) for 2004

The total amount authorized by the Board of Directors of TMAR to
be distributed as IOC of up to R$750 million for the year of
2004 was increased by R$199.9 million on 06/28/04, in addition
to the amount of R$ 200 million previouslly declared on 1/28/04.
For TNL, the authorized amount for IOC in 2004 was R$ 300
million, of which R$ 100 million was declared on 1/28/04, as
disclosed in our press release for 1Q04.

Telemar reduced by 30% the price of fixed-to-mobile calls to Oi
in Minas Gerais

On 6/30/04, TMAR and Oi signed the first freely negotiated
mobile interconnection tariff agreement in Brazil. The agreement
was valid for Minas Gerais for a 30-day term subject to an
extension. Oi reduced VU-M (interconnection tariff) from R$ 0.37
to R$ 0.23, depending on the reduction by the same amount for
TMAR customers who call Oi phones.

Accordingly, the fixed-to-mobile tariff, net of taxes, would
decrease from R$0.46 to R$0.32 during business hours.

For more details, please access:
http://www.telemar.com.br/docs/VUM_TMAR-Oi_300604_eng.pdf

Tariff Adjustment

2004

On 6/30/04, pursuant to the Concession Agreement and as ratified
by Anatel, Telemar disclosed the new adjustments for local and
long- distance service tariffs based on the IGP-DI for the 12
month-period ended in May/04 (7.97%).

For more details, please access:
http://www.telemar.com.br/docs/TNE_tariffs2004.pdf


2003

The Higher Justice Court decided on 7/1/04 to reinstate the
application of the IGP-DI to adjust tariffs in 2003, as provided
for in the concession agreements. The adjustment difference
relating to 2003 should be applied to the adjusted tariffs (in
06/30/2004) in two installments, the first one in Sep/04 and the
second in Nov/04.

For more details, please access:
http://www.telemar.com.br/docs/stj_igpdi_010704_eng.pdf

Renegotiation of Oi's debt

In June 2004, Telemar asked the lenders of a syndicated loan
originally structured by ABN-AMRO in 2001, in the total amount
of up to US$ 1.4 billion (Note Purchase Facility Agreement) to
increase or maintain their respective interests in the original
credit lines and take part in a new tranche, the purpose of
which will be financing a portion of the original line balance
still to be drawn. The total operation will amount to
approximately US$ 716 million.

The structure would be the same both for the new and the old
transactions, and contractual provisions will be maintained
(guarantees, collateral and covenants). Interest rates on
disbursed portions will be revised downwards, leading to annual
savings of approximately 250 bps.

The maturity of the debt to those lenders who choose not to take
part in the transaction will be accelerated and such lenders
will be replaced by new ones on August 16, 2004. Suppliers and
Export Credit Agencies, who also took part in the original
transactions, were also invited to maintain their respective
positions.

The restructuring transaction reflects the improved credit
profile of the company, bringing the transactions costs to more
adequate levels. Although the transaction is yet to be
completed, the level of agreement seen points to a successful
outcome.

BUNDLED SERVICES

Telemar, a company acting in different telecommunication service
segments, is taking advantage of new opportunities brought about
by synergies between the wireline and wireline businesses to
provide its customers with an increasing range of customized
services and products.

Following is a list of integrated products launched by TMAR/Oi:

1. Virtual PBX -  Enables customers to use fixed and mobile
lines as if they were company internal extensions, through
"Voice Net" and "Oi Empresas +" plans.

2. Oi Fam¡lia - Four plans are offered: "Oi Fam¡lia 200
(1dependent), 400 (2 dep.), 600 (3dep.) e1000 (4 dep.)" that
indicate the amount of minutes allowed by each plan. Customers
can also choose a fixed line to make free calls to. Plans range
from R$ 97.90 to R$ 329.90.

2. Velox+Oi (ADSL)- Residential customers who subscribe to Velox
(256Kbps) or Velox 512Kbps receive a Nokia 2100 or a Motorola
C333 handset, respectively. Non-residential customers
subscribing to Velox (256 Kbps or 512 Kbps) receive a Motorola
C333 handset.

3. Oi prepaid recharge included in the fixed-line bill -
Recharges for R$ 10, R$ 15, R$ 20 and R$ 25 through 8/31/04
entitle the customer to a bonus in the same amount for each
recharge, in addition to 50 additional pulses for the fixed-line
phone for recharges in excess of R$ 25.

4. Oi + Public Telephone - When buying Oi recharge cards,
customers receive as a bonus 10 public phone credits+C3; when
buying public telephone cards, customers get a R$ 2 bonus for Oi
prepaid lines.

Oi promotions (1Q04 and Mothers' Day)- Customers purchasing one
of Oi Conta plans until 5/20 were entitled to select a fixed-
line number or an Oi number, or other mobile number,
irrespective of the operator involved, to make free local calls
up to 100 minutes a month, during one year.

To view financial statements visit:
http://bankrupt.com/misc/Telemar_2Q04.pdf

CONTACT: TNL - Investor Relations (IR Team)
        (invest@telemar.com.br)
         55(21) 3131-1314/1313/1315/1316/1317



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

PAZ DEL RIO: To Search for Strategic Partner Soon
-------------------------------------------------
Colombia's Acerias Paz del Rio indicated the need for a partner
search, reports Business News Americas.

"Given that our principal shareholders are the workers, in
future the company will need a strategic partner which knows the
market and the technology, and has the solid financial backing
needed to make the required investments," Business News Americas
quoted an official as saying.

According to the executive, Colombia's President Alvaro Uribe
will help in the search for a partner while on a series of
foreign tours.

The steelmaker's legal situation has now improved following its
victory in two court cases, which also gives it more financial
security.

The Company posted a net income of US$26 million in the first
half of the year, 148% higher than the US$10.5 million posted in
the same period last year.



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

C&WJ: Penetrates VOIP Market
----------------------------
Cable & Wireless Jamaica is looking at the possibility of
getting into the voice over the internet protocol (VOIP) market.
In fact, it is now testing a VOI for possible offer to
commercial clients, according to Observer Business Reporter.

Large companies are now trying to get into this new line of
business, Mark Allen, chief executive officer at VOIP
International, told the Business Observer.

"But we are not concerned about them, because we already have an
advantage of having market share and equipment," the Business
Observer quoted Allen as saying.

But the calling quality is one great problem that new entrants
to the telecoms market have to deal with.

"In the general marketplace, very few cheap offerings of VOIP
offer any quality of service," C&W said.

"Excessive compression or insufficient bandwidth in a VOIP
scenario could be identified with the symptoms cited (as
problems)," the Company added.

However, VOIP players are blaming C&W for this problem. They
contend that C&W has been blocking their calls and affecting the
quality of their service in a bid to protect its market share.

Even the regulator agency has made similar charges against the
former monopoly.

"C&W has engaged in anti-competitive practices," says the Office
of Utilities Regulation (OUR)- accusing the telecoms firm of
charging higher rates to VOIP players than to other customers
for the same services, and of blocking VOIP calls.

"The Office of Utilities Regulation is very concerned about the
practices of C&W," notes Courtney Jackson, the deputy director
general.


KAISER ALUMINUM: PBGC Intends to Assume Inactive Pension Plan
-------------------------------------------------------------
Kaiser Aluminum said that it has been notified by the Pension
Benefit Guaranty Corporation (PBGC) that the PBGC intends to
assume responsibility for the Kaiser Aluminum Inactive Pension
Plan retroactive to June 30, 2004.

The Inactive Plan generally covers hourly retirees who were
represented by unions at several smaller Kaiser plants where
operations were discontinued a number of years ago.

The PBGC's action was not unexpected. In February 2004, Kaiser
had obtained a ruling from the U.S. Bankruptcy Court for the
District of Delaware that the company met the legal requirements
for a distress termination of the Inactive Plan and several
other plans. The PBGC has appealed some portions of that ruling
but not with respect to the Inactive Pension Plan. The company
and the PBGC continue to be in discussions concerning the status
of the other plans.

The PBGC assumed responsibility for Kaiser's salaried employee
pension plan in December 2003.

Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of
fabricated aluminum products, alumina, and primary aluminum.

CONTACT: Kaiser Aluminum
         5847 San Felipe
         Suite 2500
         P.O. Box 572887
         Houston
         TX 77257-2887
         USA
         Phone: 713-267-3777

         Web Site: http://www.kaiseral.com



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

ELAMEX: Posts Gross Profit of US$6M in 2Q04
-------------------------------------------
Elamex S.A. de C.V. (NasdaqNM:ELAM - News), a diversified
manufacturing services company with food, plastics and metals
operations and real estate holdings in Mexico and the United
States, announced Thursday, July 29, 2004, financial results for
the second quarter of 2004.

Second Quarter Results:

Second quarter 2004 operations are comprised of the Food
Products segment (Franklin Connections) and Shelter Services. As
explained below, the results of operations for Precision Tool,
Die and Machine Company ("Precision") are reflected in the
Elamex consolidated statement of operations through December 19,
2003, but are excluded from consolidation in subsequent periods.
The Company also has a 50.1% investment in Qualcore, an
unconsolidated joint venture that manufactures plastics and
metal parts. The equity method of accounting is used to
recognize the results of operations for Qualcore and Precision.
The company is actively working to sell its interests in both
Precision and Qualcore.

Second quarter consolidated net sales totaled $23.4 million
compared with $41.4 million for the second quarter of 2003. The
Food Products segment represented $22.9 million, or 97.9%, of
second-quarter 2004 consolidated net sales, compared with $18.7
million, or 45.2%, of consolidated net sales for the second
quarter of 2003. Because the operations of Precision are
excluded from consolidation in 2004, year-over-year comparison
of quarters shows a large decrease in net sales. In the second
quarter of 2003, Precision recorded $18.0 million of net sales,
which was 43.5% of consolidated net sales. Shelter Services
generated $3.6 million in second-quarter 2004 net sales, a year-
over-year decrease of 57.6%, due primarily to the divestiture of
a substantial portion of that segment at the end of the second
quarter of 2003. Intersegment sales between Food Products and
Shelter Services are eliminated in consolidation. The
eliminations totaled $3.1 million for the second quarter of 2004
and $3.8 million in the second quarter of 2003.

Gross profit was $6.0 million, or 25.6% of sales, for the second
quarter of 2004, compared with gross profit of $5.4 million or
13.0% of net sales for the second quarter of 2003. Total
operating expenses for the second quarter of 2004 were $5.6
million compared with $6.2 million for the second quarter of
2003.

Other income (expense) in the second quarter of 2003 included
recognition of a gain on the sale of certain shelter contracts,
miscellaneous assets and stock of five newly created companies
of approximately $1.7 million.

First Half Results

First half 2004 operations are comprised of the Food Products
segment (Franklin Connections) and Shelter Services. As
explained above, the results of operations for Precision Tool,
Die and Machine Company ("Precision") are excluded from
consolidation. The equity method of accounting is used to
recognize the results of operations for Qualcore and Precision.
The company is actively working to sell its interests in both
Precision and Qualcore.

First half consolidated net sales totaled $43.2 million compared
with $80.8 million for the first half of 2003. Because the
operations of Precision are excluded from consolidation in 2004,
year-over-year comparison of first half results shows a large
decrease in net sales. In the first half of 2003, Precision
recorded $36.2 million of net sales, which was 44.8% of
consolidated net sales.

Gross profit was $10.7 million, or 24.8% of sales, for the first
half of 2004, compared with gross profit of $10.0 million or
12.4% of net sales for the first half of 2003. Total operating
expenses for the first half of 2004 were $10.6 million compared
with $15.7 million for the first half of 2003.

In the first quarter of 2003, recognition of $3.6 million of
expense for impairment of goodwill attributable to Precision
contributed to the first half 2003 net loss of $5.2 million, or
$0.69 per basic and diluted share, compared to a net loss of
$1.8 million, or $0.23 per basic and diluted share, in the first
half of 2004.

Other income (expense) in the first half of 2003 included
recognition of a gain on the sale of certain shelter contracts,
miscellaneous assets and stock of five newly created companies
of approximately $1.7 million.

Financial Reporting for Precision Tool, Die and Machine Company

In December 2003, Elamex announced that its board of directors
had authorized the sale of Precision, the company's Metal
Stamping segment, which filed for Chapter 11 protection on
December 19, 2003. Neither Elamex nor any of its subsidiaries or
affiliates has guaranteed any of the obligations of Precision.

As a consequence of seeking protection under bankruptcy laws,
and in view of the specific pattern of facts in this situation,
accounting rules require that Precision results of operations
are included in the consolidated results of operations for
Elamex and subsidiaries only through December 19, 2003.
Thereafter, earnings or losses of Precision are recognized in
accordance with the equity method of accounting, as defined by
generally accepted accounting principles. Accordingly, no
Precision revenues or expenses occurring subsequent to December
19, 2003, are reflected in the Elamex consolidated statement of
operations. Management expects that no future losses will be
recognized in connection with Precision because the parent
company's investment in this subsidiary has been reduced to
zero.

The equity method also defines the balance sheet presentation of
Precision. As of December 31, 2003, and June 30, 2004, the net
amount of Elamex's investment in Precision is zero, excluding
Precision entirely from the consolidated balance sheets as of
those dates.

Financial Condition

At June 30, 2004, the Company had cash and cash equivalents
totaling $1.5 million and total assets of $67.5 million. Long-
term debt and capital leases, excluding current portion, totaled
$16.5 million at June 30, 2004, and stockholders' equity totaled
$29.3 million.

Mixed Results for the Second Quarter

Focusing on the Food Services segment, Elamex President and
Chief Executive Officer Richard Spencer said:

"We recorded a double digit rate of growth in net sales to
commercial food service customers and to contract manufacturing
customers. Combined, these two product lines make up about two
thirds of our total Food Services segment. We had a degree of
unanticipated softness in sales of candy and nuts to retailers,
resulting in a small decrease in volume on a year-to-date basis.
A portion of this is due to our strategy of emphasizing private
label sales direct to retailers, rather than selling through
resellers. Looking at the full Food Service segment, year-to-
date net sales are up more than 19% over the same period last
year. Even with this substantial increase in sales, the increase
in operating expenses was limited to 4.5%. Second quarter
operating expenses were affected by the dramatic nationwide
increase in fuel prices.  We also experienced increases in the
price of certain commodities. Inclusive of those adverse
factors, however, the Food Services segment produced first-half
net income of $602,000. This is compared to a net loss of
$1,859,000 for the first-half of 2003."

"We will continue to focus on contract manufacturing
opportunities," Spencer stated. "We have additional capacity to
expand contract manufacturing revenues in both the candy plant
and the nut processing plant. Our manufacturing facilities are
excellent and our labor force is skilled. We have access to
favorably priced raw materials and comparatively low cost labor.
These are distinct advantages to potential customers."

About Elamex

Elamex is a Mexican company with manufacturing operations and
real estate holdings in Mexico and the United States. The
Company is involved in the production of food items related to
its candy manufacturing and nut packaging operations, and metal
and plastic parts for the appliance and automotive industries.
Elamex's competitive advantage results from its demonstrated
capability to leverage low cost, highly productive labor,
strategic North American locations, recognized quality and
proven ability to combine high technology with labor-intensive
manufacturing processes in world-class facilities. As a value
added provider, Elamex's key business objectives include
superior customer satisfaction, long-term supplier relationships
and employee growth and development, with the ultimate goal of
continuously building shareholder value.

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

CONTACT: Mr. Sam Henry
         915-298-3061
         sam.henry@elamex.com

         Web Site: www.elamex.com


SANLUIS CORPORACION: EBITDA Slips 8.9% in 2Q04
----------------------------------------------
SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), a Mexican
industrial group that manufactures autoparts (Suspension and
Brake components), reported Wednesday results for the three
months ended June 30, 2004.

HIGHLIGHTS:

- Sales were US$ 151.3 million in the second quarter of 2004,
and US$ 287 million for the first half of the year.

- EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) in the last three months were US$ 15.4 million
(10.2% to sales), and US$ 31.3 million (10.9% to sales) for the
first half of 2004.

- Compared to the second quarter of last year, sales increased
24.8 % while EBITDA decreased 8.9 %; comparing against the first
half of 2003, sales increased 21.4 % and EBITDA decreased 11.1
%.

Even with the extraordinary sales levels achieved in the first
half of 2004, SANLUIS consolidated results present a lower
operating income level due mainly to the impact generated by the
severe increase in the international price of steel (+40% in the
last eight months). This outcome prevented the company in
reaching the consistent operating profitability levels achieved
in the past, in spite of the improved manufacturing
productivities and lower expense levels reported.

For the first half of 2004, sales in the Suspension Division
(76% of total volume) were 28.5% above the previous year levels,
with all product lines having important increases in dollar
terms (Leaf Springs: +28%, Coil Springs: +48%, and Torsion Bars:
+16%). Whereas the Brake Division (24% of total volume) posted
an increase of 3.4%, but with a more profitable product mix due
to a larger percentage of high value added brake assemblies.

The Operating margin (EBITDA/Sales) in the first half of this
year is four percentage points lower than the one achieved in
the same period of last year (10.9% vs. 14.9%), due to the
larger cost of steel that specially affected our Nafta related
Suspension business (64% of consolidated sales), whereas our
Brazilian Suspension operations (12% of sales) and the Brake
Division (24% of sales) reported increased EBITDAs due to the
ease with which in the Brazilian market cost increases can be
passed-through to the customers, and a richer product mix in the
Brake Division due to larger than expected volumes in high value
added assemblies. The cost increase in steel, our major raw
material (representing 49% of our direct cost base), has not
been fully compensated in spite of the excellent sales volume
achieved in the Nafta region, lower fixed manufacturing costs
and improved productivity levels at our production facilities.

After the recent exit of our largest regional competitor from
the Leaf spring business, we have achieved an 88% market share
in the Nafta region. We are confident on capitalizing such
dominant position and improve our margins by concentrating on
the application of our technical expertise in designs aimed at
weight reduction (and therefore, lower steel content) in our
products, while maintaining the same mechanical properties,
allowing us to reduce the negative effects of the competitive
pressures based solely on pricing that affected us in the past.
During the last couple of months we were able to advance further
in this strategy which has helped us in partially absorbing
steel cost increases. If we are able to maintain such process,
in the second part of the year we will be able to reach the
larger margin levels with which we operated in the last part of
2003.

In the Income Statement, the lower EBITDA level and the Exchange
Losses recorded due to the Mexican peso devaluation against the
USDollar (based on our net liability position in foreign
currency), have been totally compensated by the Monetary Gains
in our net monetary liability position and by the important
gains realized on the repurchase of SANLUIS un-restructured debt
at a discount against its face value, producing at the end a

Net Profit for the first half of 2004 of US$ 0.5 million, which
favorably compares to the US$ (6.1) million loss reported a year
earlier

In terms of Cashflow generation, and in spite of the lower
EBITDA recorded, the company was able to increase its available
cash and marketable securities at the end of the quarter by
deferring and containing expected Capital Expenditures, by the
use of new financing programs for its steel purchases (Supplier
Factoring) that increased in 16 days its supplier financing and
better Working Capital management; allowing the company to
continue with its de-leveraging process during the first half of
the year, reducing in US$ 22.4 million its debt outstandings
(through debt repurchases at a discount to face value and
scheduled amortizations on its operating company bank debt).

SANLUIS

SANLUIS produces suspensions and brake components for the global
automotive industry, with a focus on Original Equipment
Manufacturers (OEMs).

Suspension products include Leaf Springs (parabolic and multi-
leaf), Coil Springs, Torsion Bars, Bushings, and Stabilizer
Bars. The Brake Division produces Drums and Discs.

SANLUIS-Rassini has an 88% share of the Nafta market (U.S.,
Mexico and Canada) for light truck suspensions. Its solid and
diversified client base includes General Motors, Ford Motor
Company, Daimler-Chrysler, Nissan, Volkswagen and Toyota.  In
the Brake division, SANLUIS-Rassini has a 12% market share in
the light truck and automobile segment of the U.S.and Canada
markets.

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

CONTACT: Mr. Antonio Olivo
         SANLUIS Corporaci¢n S.A. de C.V.
         Tel : (52) 5229-58-44
         Fax : (52) 5202-66-04
         e-mail : aolivo@sanluiscorp.com.mx

         Web Site: http://www.sanluiscorp.com


TV AZTECA: To Restrict Salinas' Legal Powers
--------------------------------------------
Mexican media group TV Azteca SA (TZA) revealed Thursday it will
modify the powers of attorney granted to controlling shareholder
Ricardo Salinas Pliego as he faces a securities investigation.

U.S. and Mexican regulators subjected Salinas into a probe over
his involvement in a controversial 2003 loan deal to rescue one
of his companies, mobile phone operator Unefon
(Mexico:UNEFONA.MX). Salinas and a business partner made US$218
million through investment company Codisco, which helped
refinance Unefon's hefty debt last year.

In a 20-F filing with the U.S. Securities and Exchange
Commission, TV Azteca said it will modify Salinas Pliego's
powers of attorney "so that he cannot act on behalf of TV Azteca
in any material transaction or related party transaction"
without the board's approval.

The filing also revealed that TV Azteca appointed law firm
Mayer, Brown, Rowe & Maw as its new U.S. legal counsel. Last
year Akin, Gump, Strauss, Hauer & Feld withdrew as the Company's
counsel because the firm believed TV Azteca had broken U.S. law
by not fully disclosing material facts surrounding the
controversial Unefon debt deal.


TV AZTECA: To Wrap Up Unefon Spinoff Soon
-----------------------------------------
TV Azteca SA said Wednesday that it is close to completing the
spinoff of its investment in wireless communications operator
Unefon SA.

Dow Jones Newswires recalls that TV Azteca created Unefon
Holdings SA in December to accommodate its 46.5% stake in the
carrier. The holding company said late Wednesday that it has
started the registration process to list on the Mexican Stock
Exchange, after which shares will be distributed and the spinoff
will be complete.

The shares are expected to list this year.

"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," Dow Jones quoted the holding
company as saying.



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

BWIA: Unions Want More Than Just Government Takeover
----------------------------------------------------
It was good news for BWIA unions when the Trinidad government
announced that it was taking the helm of the struggling flagship
carrier, The Trinidad Guardian reports.

However, unions want more than that. They want to see changes in
the airline's management.

"We have been calling for a change in management for the longest
while," the Guardian quoted Christopher Abraham, president of
the Aviation, Communication and Allied Workers Union (Acawu), as
saying.

"The BWIA management exists without purpose. They have no
vision. They are not creative and they are inefficient," Abraham
added.

Mr. Jagdeo Jagroop, president of the Communication, Transport
and General Workers union (Cattu), agrees with Abraham.

"I don't think the company will become viable with the current
lot entrusted with management. If the Government continues with
them it would be worse," Jagroop said.

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


BWIA: CAA To Monitor Ground Handling Operations
-----------------------------------------------
The Civil Aviation Authority will keep a tight watch on BWIA
over the coming months to ensure that ground handling operations
are satisfactory, says The Trinidad Express.

BWIA recently had two of its aircraft damaged after vehicles
owned by ground handling company ServisAir crashed into the
passenger aircraft at Piarco International Airport.

Three ServisAir drivers have already been dismissed following
the incident. But Transport Minister Franklin Khan indicated
that ServisAir is not entirely responsible for what happened.

BWIA should provide more supervision and do a total review of
ServisAir's performance and prove that ServisAir is capable of
fulfilling the ground handling operation. According to the
minister, the ServisAir staff was not properly trained, they
were underpaid and even their working conditions needed to be
reviewed.

The airline may be asked to replace ServisAir if the company's
operations are not up to speed, he said.


CDC: Carib Workers Return to Work
---------------------------------
The more than 800 Carib workers, against whom lockout action was
taken by Carib Brewery and Carib Glassworks on May 24, are now
going back to work, reports Newsday, Trinidad & Tobago's online
newspaper.

And according to Carl St Rose, the president of the Carib
Workers section of the National Union of Government and
Federated Workers (NUGFW), the workers won't be going back to
work with empty pockets.

The Company had decided to provide each of the workers with a
fortnight's pay by way of a loan without interest, to be repaid
over a five-month period.

A Memorandum of Understanding has been signed between Carib and
NUGFW. The accord shows that three points have been agreed on -
a broad approach to a Pension Plan, restructuring of a
production incentive plan at both companies and an approach to a
medical plan.

Carib is a subsidiary of the Caribbean Development Company
(CDC).



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

CITGO: Lures Hispanic Market With Spanish Web Site
--------------------------------------------------
CITGO Petroleum Corporation has launched a Spanish Web site at
www.CITGO.com. To view the site, simply click on "Espanol" in
the top right-hand corner of the home page.  The company
launched the Spanish version earlier this summer as part of its
growing Hispanic marketing initiative.

"Now is the perfect opportunity for CITGO to employ a highly
concentrated effort to reach the Hispanic consumer," said Don
Rucks, CITGO brand development manager. "CITGO.com en Espa¤ol is
another avenue we can use to communicate with this key audience
and introduce them to CITGO, our products, national sales
promotions and international business opportunities."

The Spanish version of CITGO's Web site offers the same
functionality as the English site including product information,
a retail outlet locator that allows users to find CITGO stations
in their area, and details about CITGO's sponsorships of Bass
fishing and Venezuelan racecar driver Milka Duno. In addition,
CITGO.com en Espanol will provide information about Petr¢leos de
Venezuela, S.A. (PDVSA), CITGO's parent company, and Venezuelan
products and tourism.

While the site officially launched in June 2004, refinements and
expansion of content will continue, including an on-line news
room and press release archive that will be added to the site
later this summer.

Earlier this year CITGO announced a new Hispanic marketing
initiative to build awareness among the Hispanic communities
across the nation which, in addition to the Spanish version of
the Web site, includes the following:

- Sponsorship of national programming on Fox Sports en Espa¤ol,
ESPN Deportes and ESPN Deportes Network;

- CITGO messages in Spanish visible on ESPN Deportes.com; and

- Sponsorship of Venezuelan racecar driver Milka Duno.

CITGO is a refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals, refined waxes, asphalt and
other industrial products. The company is owned by PDV America,
Inc., an indirect wholly owned subsidiary of Petr¢leos de
Venezuela, S.A., the national oil company of the Bolivarian
Republic of Venezuela.

CONTACT: Investor Relations
         Mr. Jason Schmitz
         Associate Financial Analyst
         Phone: (918) 495 -5100
         E-Mail: InvRel@citgo.com

         Web Site: www.CITGO.com.



                            ***********


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
prior written permission of the publishers.

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

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


* * * End of Transmission * * *