TCRLA_Public/040805.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

             Thursday, August 5, 2004, Vol. 5, Issue 154

                            Headlines

A R G E N T I N A

ACEROS BLANCO: Claims Check to End Friday
AGUAS ARGENTINAS: Congress Moves Closer to Approving Agreement
ASERNAT: Trustee to End Validation Phase
CARPINTERIA METALICA: Debt Payments Halted, Set To Reorganize
CODPE S.A.: Claims Verification to End Friday

COOPERATIVA DEL ESTE: Trustee Closes Verification Phase
DINAR LINEAS: Trustee Readies Individual Reports for Submission
GONZALEZ HNOS: Verification Deadline Approaches
INVESTMENT TERMS: Trustee to Finalize Claims Validation
OCHOA E HIJOS: Enters Bankruptcy on Court's Order

METROGAS: Extends Solicitation of Consents To Restructure Debts
TRANSENER: Petrobras Energia Gets Green Light to Up Stake
UNIBACK: Trustee to Conclude Verifications Friday


B E R M U D A

FOSTER WHEELER: Secures Enagas LNG Terminal Contract
FOSTER WHEELER: Progresses on Amended Exchange Offer


B O L I V I A

COEUR D'ALENE: OPIC OKs San Bartolome Project


B R A Z I L

BANCO ITAU: Reports R$1.8 Bln Net Income in the 1H04
EMBRATEL: Deloitte Touche Tohmatsu Issues Audit Report
GERDAU: Profit Soars on First Quarter 2004
NET SERVICOS: Reports Consolidated EBITDA of $29.9M in 2Q04
NII HOLDINGS: STJ Ditches Request to Lift Injunction on Assets

TELEMAR: BNDES OKs BRL663M Financing for Oi


C H I L E

ENERSIS: No Interim Dividend In August Says Board


E L   S A L V A D O R

MILLICOM INTERNATIONAL: EBITDA Up 47% in Q204


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Buys 10Mhz of Spectrum from AT&T


S U R I N A M E

* S&P Revises LTFC Rating of Republic of Suriname to 'B-'


V E N E Z U E L A

CANTV: Opposition Leaders Dismiss Chavez's Threats
PDVSA FINANCE: Completes Tender Offer, Consent Solicitation
SIVENSA: Posts $25M Net Profit in 3Q04


     -  -  -  -  -  -  -  -

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

ACEROS BLANCO: Claims Check to End Friday
-----------------------------------------
All claims against bankrupt Aceros Blanco Inoxidables S.A. will
be accepted for validation until August 6, 2004. These claims
should be forwarded to Ms. Mirta Aurora Lopez, the court-
appointed trustee.

On September 20, 2004, the trustee will also provide the court
with a list of verified creditors through the individual
reports. A general report is also scheduled for court
presentation on November 2, 2004.

Court No. 20 of Buenos Aires' Civil and Commercial Tribunal
handles this case with the assistance of Clerk No. 40.

CONTACT: Ms. Mirta Aurora Lopez, Trustee
         Avda Corrientes 2335
         Beunos Aires


AGUAS ARGENTINAS: Congress Moves Closer to Approving Agreement
--------------------------------------------------------------
A joint Argentine congressional committee moved a step closer to
approving a transitional agreement between the government and
water utility Aguas Argentinas SA on Tuesday.

Citing an official from the office of the committee chairman,
Senator Ernesto Sanz, Business News Americas reports that the
10-member committee issued three reports on the agreement.

The first report was from four Justicialista ruling party
legislators that approved the agreement. The second is from
three UCR opposition party legislators that rejected the
agreement arguing procedural irregularities. The third is from
an ARI opposition party legislator that also rejected the
agreement.

According to the official, the two other Justicialista committee
members approved the agreement but with observations.

The reports will now be sent to the floors of both the house and
the senate for a vote that is expected in coming weeks.

The transitional agreement was signed in May by Argentine
President Nestor Kirchner and Aguas Argentinas President Yves-
Thibault de Silguy. The agreement is retroactively effective
from Jan. 1, 2004, and is supposed to remain in effect until
year's end. After that, the two sides are due to negotiate a
new, multi-year contract.

Under the agreement, water rates, which were converted from
dollars into devalued pesos and then frozen in early 2002, will
remain unchanged this year.

Meanwhile, Suez, Aguas' principal shareholder, will have to
spend ARS242 million on waterworks investments during 2004.

The deal also requires Suez to suspend its claim against
Argentina in the World Bank's arbitration tribunal, or ICSID.
However, Suez wasn't asked to drop its complaint altogether.

The French utility is among several foreign-owned companies with
Argentine operations that have filed claims against Argentina
for the so-called "pesification" of rates converted from dollars
into devalued pesos.


ASERNAT: Trustee to End Validation Phase
----------------------------------------
Creditors with claims against troubled Company Asernat S.A. must
present proofs of the Company's indebtedness to Ms. Viviana
Palapoli, the trustee, before the verification period ends on
August 6, 2004.

These claims will constitute the individual reports to be
submitted in court on September 20, 2004. The court also
requires the trustee to present an audit of the Company's
accounting and business records through a general report due on
November 2, 2004.

This falls under the jurisdiction of Buenos Aires' Civil and
Commercial Tribunal Court No. 5.

CONTACT:  Asernat S.A.
          Condarco 5164
          Buenos Aires

          Ms. Viviana Palapoli, Trustee
          Avenida Cordoba 859
          Buenos Aires


CARPINTERIA METALICA: Debt Payments Halted, Set To Reorganize
-------------------------------------------------------------
Court No. 26 of Buenos Aires' Civil and Commercial Tribunal is
presently reviewing the merits of the reorganization petition
filed by Carpinteria Metalica San Eduardo S.A.

Infobae reports that the company filed the petition following
cessation of debt payments. Reorganization will allow the
Company to avoid bankruptcy by negotiating a settlement with its
creditors.

CONTACT: Carpinteria Metalica San Eduardo S.A.
         Larrazabal 2570
         Buenos Aires


CODPE S.A.: Claims Verification to End Friday
---------------------------------------------
Court Appointed trustee Juan Carlos Rama will be reviewing
creditors' proofs of claims for the Codpe S.A. bankruptcy until
August 6, 2004. These claims will serve as basis for the
individual reports to be presented for court approval on
September 20, 2004. Mr. Rama is also scheduled to submit a
general report on November 2, 2004.

Clerk No. 15 assists the Buenos Aires Court No. 8 on this case,
which will end with the disposal of the Company's assets to pay
its liabilities.

CONTACT:  Codpe S.A.
          Mariano Moreno 4434
          Sarandi (Pdo de Avellaneda)
          Buenos Aires

          Mr. Juan Carlos Rama, Trustee
          Viamonte 1453
          Buenos Aires


COOPERATIVA DEL ESTE: Trustee Closes Verification Phase
-------------------------------------------------------
All creditors of insolvent Company Cooperativa del Este de
Credito Consumo y Vivienda Ltda are required to submit proofs of
their claims to the court's trustee, Mr. Carlos Manuel
Carrescia, by Friday, August 6, 2004. These claims will be
presented as individual reports on October 1, 2004. The court
will use the individual reports to finalize the list of
creditors to be included in the Company's settlement plan.

CONTACT: Mr. Carlos Manuel Carrescia, Trustee
         Tucuman 1621
         Buenos Aires


DINAR LINEAS: Trustee Readies Individual Reports for Submission
---------------------------------------------------------------
Individual reports from the Dinar Lineas Aereas S.A. bankruptcy
are due for court presentation on Friday, August 6, 2004.
Accounting firm Estudio Gauffin Fassini y Asociados will prepare
these reports from all proofs of claims forwarded by the
Company's creditors during the credit verification period.

Court No. 2 of Salta's Civil and Commercial Tribunal handles
this case, which will end with the sale of all Company assets to
repay its creditors.

CONTACT:  Dinar Lineas Aereas S.A.
          Mitre 101
          Salta

          Estudio Gauffin Fassini y Asociados, Trustee
          General Guemes 1587
          Salta


GONZALEZ HNOS: Verification Deadline Approaches
-----------------------------------------------
Mr. Jose Miras, the trustee supervising the liquidation of
Gonzalez Hnos S.R.L. will close the verification of creditors
claims on Friday, August 6, 2004. Creditors of the Company must
submit proofs of their claims before the deadline to qualify for
any post-liquidation payments.

Buenos Aires Court No. 16, assisted by Clerk No. 32, has
jurisdiction over this bankruptcy case.

CONTACT: Gonzalez Hnos S.R.L.
         Piedras 1841
         Buenos Aires

         Mr. Jose Miras, Trustee
         Paraguay 1307
         Buenos Aires


INVESTMENT TERMS: Trustee to Finalize Claims Validation
-------------------------------------------------------
Mr. Jorge Juan Gerhkovich, court-appointed trustee for the
Investment Terms S.A. bankruptcy, will verify creditors' proofs
of claim until August 6, 2004.

The verified claims will serve as basis for the individual
reports to be submitted in court on September 20, 2004. The
submission of the general report follows on November 2, 2004.

CONTACT: Mr. Juan Gerchkovich, Trustee
         Lavalle 1882
         Buenos Aires


OCHOA E HIJOS: Enters Bankruptcy on Court's Order
-------------------------------------------------
La Plata-based Ochoa e Hijos S.A. enters bankruptcy protection
after Court No. 16 of the city's Civil and Commercial Tribunal
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. Americo Veigas as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on August 9, 2004.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on September 21, 2004 followed by the general report, which is
due on November 3, 2004.

CONTACT: Ochoa e Hijos S.A.
         Avda 1 Nro. 2032
         La Plata

         Mr. Americo Veigas, Trustee
         Avda 1 Nro. 1789
         La Plata


METROGAS: Extends Solicitation of Consents To Restructure Debts
---------------------------------------------------------------
MetroGAS S.A. (the "Company") announced Tuesday that it was
further extending its solicitation (the "APE Solicitation") from
holders of its 9-7/8% Series A Notes due 2003 (the "Series A
Notes"), its 7.375% Series B Notes due 2002 (the "Series B
Notes") and its Floating Rate Series C Notes due 2004 (the
"Series C Notes" and, together with the Series A Notes and the
Series B Notes, the "Existing Notes") and its other unsecured
financial indebtedness (the "Existing Bank Debt" and, together
with the Existing Notes, the "Existing Debt"), subject to
certain eligibility requirements, of powers of attorney
authorizing the execution on behalf of the holders of its
Existing Notes, and support agreements committing holders of its
Existing Bank Debt, to execute an acuerdo preventivo
extrajudicial (the "APE") until 5:00 p.m., New York City time,
on September 2, 2004, unless further extended by the Company.

APE Solicitation

As of 5:00 p.m., New York City time, on August 2, 2004, powers
of attorney and support agreements had been received with
respect to approximately U.S.$ 100,130,340 principal amount of
Existing Debt.

The APE Solicitation will remain in all respects subject to all
terms and conditions described in the Company's Solicitation
Statement dated November 7, 2003.

The Information Agent for the APE Solicitation outside Argentina
is GBR Information Services and its telephone number is (212)
644-1772. The Information Agent within Argentina is JP Morgan
Chase Bank Buenos Aires Branch and its telephone number is 5411-
4348-3475/4325-8046.

CONTACT:  MetroGAS S.A.
          Pablo Boselli, Financial Manager
          E-mail: pboselli@metrogas.com.ar
          Tel: 5411-4309-1511

          Citigate Financial Intelligence
          Lucia Domville
          E-mail: Lucia.Domville@citigatefi.com
          Tel: 201-499-3548


TRANSENER: Petrobras Energia Gets Green Light to Up Stake
---------------------------------------------------------
Argentine energy company Petrobras Energia has obtained approval
from the antitrust authority to increase its ownership in the
holding company of electricity transporter Compania de
Transporte de Energia Electrica en Alta Tension (Transener SA).

According to Business News Americas, Petrobras Energia can now
exercise its first refusal to buy 17,406 shares or 0.007% stake
in the holding company Citelec from British company National
Grid (NGG).

Business News Americas earlier suggested that the move raises
Petrobras Energia's total stake in Citilec to 50% at a price of
less than US$100,000.

Petrobras Energia has made an irrevocable commitment 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.


UNIBACK: Trustee to Conclude Verifications Friday
-------------------------------------------------
Mr. Carlos Rapetti, the court-appointed Trustee foe the Uniback
S.A. reorganization, will receive creditor's proofs of claim
until August 6, 2004. Creditors who fail to submit the required
proofs before the verification ends will not qualify for the
post-liquidation payments that will be made.

Buenos Aires Court No. 26, with assistance from Clerk No. 52,
handles this case.

CONTACT: Uniback S.A.
         Avda Santa Fe 900
         Buenos Aires

         Mr. Carlos Rapetti, Trustee
         Echeverria 2670
         Buenos Aires



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

FOSTER WHEELER: Secures Enagas LNG Terminal Contract
----------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced on Wednesday that
its subsidiary Foster Wheeler Iberia, S.A. has been awarded a
contract for a liquefied natural gas (LNG) terminal expansion in
Cartagena (Spain) by Enagas, the leading Spanish natural gas
supplier.

Following the basic design of the LNG terminal expansion also
executed by Foster Wheeler Iberia, the company will manage both
the detailed engineering to be completed by the second quarter
of 2005, and the construction to be completed by year-end 2006.
The terms of the contract were not disclosed.

"With this latest award," stated Jesus Cadenas, chief executive
officer of Foster Wheeler Iberia, "Foster Wheeler is now
executing projects in the three Enagas LNG terminals, as well as
collaborating with two other Spanish gas companies in Spain and
Egypt. These awards emphasize the Madrid office's involvement in
the LNG business, a significant continuous growth market."

The Cartagena terminal capacity will increase from 900,000 to
1,200,000 normal cubic meters per hour of gas, and the expansion
project includes the installation of new vaporization lines,
send-out pumps, water system, and a measuring station.

The booking is included in the second-quarter results.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services.

Foster Wheeler serves the refining, upstream oil and gas, LNG
and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries. The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         Media:
         Ms. Maureen Bingert
         908-730-4444

         or

         Other Inquiries:
         908-730-4000

         Web Site: www.fwc.com


FOSTER WHEELER: Progresses on Amended Exchange Offer
----------------------------------------------------
Foster Wheeler Ltd. (OTCBB:FWLRF) announced Tuesday that on July
30, 2004 the Securities and Exchange Commission declared
effective the registration statement for Foster Wheeler's
amended equity-for-debt exchange offer. It also announced that
significant numbers of institutional investors have agreed to
tender their securities in the amended exchange offer. The
company is in the process of distributing revised offering
materials related to the amended exchange offer, which has been
extended through August 30, 2004, subject to further extension.

Institutional investors holding 61.0% of the 6.75% Senior Notes
due 2005, 85.0% of the 6.50% Convertible Subordinated Notes due
2007, 92.6% of the Robbins Series C and D Bonds due 2009, and
22.2% of the 9.00% Preferred Securities have agreed to tender
their securities in the amended exchange offer.

As previously announced, assuming the amended exchange offer is
completed as proposed and at the minimum required participation
levels, it would reduce Foster Wheeler's existing debt by
approximately $410 million, extend the maturities on $135
million of debt to 2011, reduce interest expense by
approximately $22 million per year, and, when combined with the
sale of new notes to retire funded bank debt, eliminate
substantially all material scheduled corporate debt maturities
prior to 2011.

"This is a significant milestone as we move toward the
completion of our balance sheet restructuring, which we expect
to complete in the third quarter," said Raymond J. Milchovich,
chairman, president and chief executive officer. "We appreciate
the hard work and commitment of the investors who have executed
lock-up agreements, as well as the confidence in Foster Wheeler
of those who will accept equity in the newly capitalized company
in exchange for debt. The completion of the amended exchange as
proposed will improve our financial position and provide
important financial flexibility for all of our operating
companies."

The amended exchange offer modifies certain terms and conditions
for the proposed exchange of (i) 6.75% Senior Notes for a
combination of equity and new senior secured notes due 2011;
(ii) 6.50% Convertible Subordinated Notes and Robbins Bonds for
equity; and (iii) 9.00% Preferred Securities for equity and
warrants. The completion of the amended exchange offer is
subject to, among other things, attaining certain minimum
participation thresholds.

A description of the differences in terms and conditions between
the original and the amended exchange offer is set forth in the
prospectus for the exchange.

A copy of the prospectus relating to these securities and other
related documents may be obtained from the information agent.
The information agent for this exchange offer and consent
solicitation is Georgeson Shareholder Communications Inc., 17
State Street, 10th Floor, New York, New York 10014. Georgeson's
telephone number for bankers and brokers is 212-440-9800 and for
all other security holders is 800-891-3214.

Individuals holding their securities through brokers are urged
to contact their brokers to receive a copy of the prospectus and
to tender their securities.

The dealer manager for the exchange offer and consent
solicitation is Rothschild Inc., 1251 Avenue of the Americas,
51st floor, New York, New York 10020. Contact Rothschild at 212-
403-3784 with any questions on the exchange offer.

As previously announced, Foster Wheeler will pay a soliciting
brokers' fee to registered broker/dealers for soliciting
qualifying tenders of trust preferred securities pursuant to
this exchange offer. This fee will be equal to 50 cents per
9.00% Preferred Security (liquidation amount $25) which the
registered broker/dealers tender on behalf of their customers
and which Foster Wheeler accepts for exchange, subject to
certain limitations.

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information: (1) the registration statements on Form
S-4 (File No. 333-107054 and File No. 333-117244) and (2) the
Schedule TO (File No. 005-79124). These and any other documents
relating to the proposed exchange offer, when they are filed
with the SEC, may be obtained free at the SEC's Web site at
www.sec.gov, or from the information agent as noted above.

The foregoing reference to the exchange offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer
to sell or exchange any securities in Foster Wheeler Ltd. or any
of its subsidiaries.



=============
B O L I V I A
=============

COEUR D'ALENE: OPIC OKs San Bartolome Project
---------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer and a growing gold producer, announced
Monday that the board of directors of the Overseas Private
Investment Corporation (OPIC) has approved up to $135 million in
political risk insurance for Coeur's San Bartolome silver
project in Bolivia.

OPIC will provide the insurance to Coeur for the construction
and operation of San Bartolome, a silver mining project with 123
million ounces of proven and probable silver reserves. The
Company expects initial annual production at San Bartolome of
six million ounces, a 42 percent increase over existing company-
wide production levels, then ramping up to eight million ounces
of silver per year. Mine construction is expected to take 18
months, with anticipated operating cost of $3.55 per ounce of
silver. During construction, San Bartolome is expected to
generate 500 local jobs, and approximately 370 full-time jobs
during operations.

The project will also establish a foundation, called Fundespo,
to assist in the development of the silversmith, industrial and
tourism industries in Potosi, Bolivia, a historically rich
silver mining area where the project is located. OPIC is a U.S.
Government agency which helps U.S. businesses invest and manage
risk overseas, and fosters economic development in new and
emerging markets.

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

Cautionary Statement

The United States Securities and Exchange Commission permits
mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and
legally extract or produce. We use the term "resource" in this
press release which the SEC guidelines strictly prohibit us from
including in our filings with the SEC. Investors are urged to
consider closely the disclosure in our Form 10-K for the year
ended December 31, 2003 and Form 10-Q for the quarter ended
March 31, 2004. You can review and obtain copies of these
filings as well as an amendment to the Form 10-Q restating the
financial statements to revise the valuation of pending metal
sales as explained in that amendment from the SEC website at
http://www.sec.gov/edgar.html.

CONTACT: Mr. Tony Ebersole
         Investor Relations
         Coeur d'Alene Mines Corporation
         Coeur d'Alene Mines Building
         505 Front Avenue, Coeur d'Alene, Idaho 83814
         Tel: (208) 667-3511
              1-800-523-1535

         Web Site: www.coeur.com



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

BANCO ITAU: Reports R$1.8 Bln Net Income in the 1H04
----------------------------------------------------
Banco Itau issued these financial highlights:

1. Consolidated net income totaled R$ 1.8 billion in the six-
month period, with an annualized return of 30.6% and growth of
22.4% in relation to the 1st semester of 2004.

2. Itau has paid or provisioned taxes and contributions related
to the semester amounting R$ 1.8 billion.

3. Itau had 42,206 employees by the end of the six-month period.
The fixed remuneration added to the charges and benefits totaled
R$ 1.3 billion, representing R$ 31 thousand by employee and
average in the six-month period. During the period, R$ 22
million was invested in the development of personnel.

4. Consolidated stockholders' equity totaled R$ 12.8 billion, an
18.7% increase as compared to June 2003, while the net
regulatory capital reached R$ 18.1 billion. Itau's stock
exchange market capitalization reached R$ 30.5 billion, the
highest among banks in Latin America.

5. The efficiency rate was below the 50% for the seventh
consecutive quarter, confirming Itau's efficiency in controlling
costs, thanks to the efforts of the entire organization.

6. By the end of the semester, the value of Itau Shares
increased 36.3% over June 2003. The amount of interest on own
capital, provisioned and distributed to the stockholders totaled
R$ 503 million, at R$ 4.44 per thousand shares.

7. Consolidated assets totaled R$ 122.8 billion, a 14.9% growth
compared to the first half of 2003. In the same period, the loan
portfolio increased 9.3% to R$ 48.7 billion, and 8.8% in the 2nd
quarter of 2004.

8. Total resources grew 23.2% as compared to June 2003, totaling
R$ 194.8 billion. The increase of 32.3% in investment funds must
be pointed out.

9. Total technical provisions related to insurance, pension and
capitalization reached R$ 9.3 billion, a 72.0% growth compared
to the same period of 2003. The premiums earned and pension and
capitalization plans grew 15.3% as compared to June 2003.

10. In the social and cultural areas, we highlight the
activities of Fundacao Itau Social and Instituto Itau Cultural.
It is worth highlighting, at Fundacao Itau Social, the launching
of the 2nd edition of the "Premio Escrevendo o Futuro" ("Writing
the Future Award"), the expansion of the "Programa Melhoria da
Educacao do MunicĄpio" ("Improvement of Municipal Education
Program"), and the launching of the "Programa Jovens Urbanos"
(Urban Youth Program). Itau Cultural reaffirms its commitment
with the Brazilian artistic production, launching the seventh
edition of the "Rumos" program, which nowadays is divided in
eight segments: Visual Arts, Cinema and Video, Dance, Cultural
Journalism, Literature - Audiofictions, Music, Academic Research
and Transmedia, with wide mapping action, selection of artists,
work difusion and seminars to discuss general interest themes.
In addition, three important partnerships celebrated in Minas
Gerais are worth mentioning: with Clovis Salgado Foundation -
Palacio das Artes, the State Education Department, and the TV
network Rede Minas de Televisao.

11. Itau, through Banco Itau-BBA, has an environmental policy
comprising loans to client businesses, structured based on the
compliance to the environmental guidelines set forth by
organizations dedicated to encourage sustainable development.
The strategy orientation to favor environmental responsibility
aspects was restated, with the deepening of guidelines, both to
grant loans and in the Bank's relationship with the surrounding
communities.

12. The Itau brand was considered the most valuable brands for
the third consecutive time according to a recent appraisal
carried out by British consultants Interbrand, world leader in
brand appraisal. This year, it was valued at US$ 1,204 billion,
10% higher than in 2003 (US$ 1,093 billion). Itau was also
considered, by the 7th consecutive year, the best Brazilian
bank, by Euromoney magazine.

13. The Audit Committee started its activies on July 1st, 2004,
in line with the requirements of Resolution no. 3198 of the
National Monetary Council, the Sarbanes-Oxley Act and the SEC.
Three outside members were appointed to this Committee: director
Carlos da Camara Pestana, as Committed Chairman, and directors
Alcides Lopes Tapias and Tereza Cristina Grossi Togni. The
latter will be the Committee's expert director because of her
proven knowledge in the accounting and audit areas.

14. On July, 27, 2004, Itau and Companhia Brasileira de
Distribuicao (CBD) announced the signature of a Memorandum of
Understanding, which objective is to establish a partnership
with the formation of a new financial institution that will work
with exclusivity in the structuring and sale of products and
financial services and related services for CBD customers. This
association of two leading domestic groups of acknowledged
management excellence and high value brands will strengthen the
credit market for Brazilian consumers.

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

CONTACT:  Alfredo Egydio Setubal, Investor Relations Director
          BANCO ITAU S.A.
          Sao Paulo, S.P.
          Brazil
          Tel: +55 11 5019 1549
          Fax: +55 11 5019 1133
          Email Address: investor.relations@itau.com.br


EMBRATEL: Deloitte Touche Tohmatsu Issues Audit Report
------------------------------------------------------
Deloitte Touche Tohmatsu, Independent Auditor for Embratel
Participacoes S.A., issued the following audit statement
concerning the Special Review of the Balance Sheets as of June
30, 2004 and March 31, 2004 and the Statements of Income for the
semesters ended June 30, 2004 and 2003:

1.  We have performed a special review of the balance sheets of
Embratel Participa‡oes S.A. and subsidiaries (company and
consolidated) as of June 30, 2004 and March 31, 2004 and of the
statements of income and comments on the consolidated
performance for the semesters ended June 30, 2004 and 2003,
prepared under the responsibility of the Company's management,
in accordance with accounting practices adopted in Brazil, and
presented as part of the mandatory quarterly information to the
Brazilian Securities and Exchange Commission (CVM).

2.  Our review was conducted in accordance with specific
standards established by the Brazilian Institute of Independent
Auditors - Ibracon, together with the Federal Accounting
Council, for special review of quarterly information of public
companies (Standard #NPA 06) and comprised: (a) inquiries of and
discussions with Company's Management responsible for the
accounting, financial and operating areas as to the principal
criteria adopted in the preparation of the quarterly
information; and (b) review of the information and subsequent
events that had or might have had significant effects on the
financial position and operations of the Company. Considering
that this special review does not constitute an examination in
accordance with auditing standards, we do not express an opinion
on the aforementioned financial statements.

3.  Based on our special review, we are not aware of any
material modification that should be made to the information
contained in the financial statements referred to in paragraph
1, for them to be in accordance with accounting practices
adopted in Brazil, applied in conformity with the standards
issued by the Brazilian Securities and Exchange Commission (CVM)
specifically applicable to the presentation of the mandatory
quarterly information.

To view financial statements, please visit:
http://bankrupt.com/misc/Embratel_2Q04.pdf

CONTACT: 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


GERDAU: Profit Soars on First Quarter 2004
-------------------------------------------
Gerdau issued these profit highlights for first quarter '04:

* Net Profit -- Consolidated net profit for the first semester
of 2004 was strongly influenced by the substantial improvement
of the Gerdau North American operations.  Of the total net
profit of the period (R$ 1.3 billion -- increase of 136.8%),
37.3% was generated by the North and South American companies,
Brazil not included.  In the same period last year, these
companies contributed with only 2.2% to the results. Net margin
improved to 13.7% this year compared to 8.6% in the first half
of 2003.  This is due to the recovery in margins at the North
American operations, and to exports from Brazil, which benefited
from the high prices of steel products in the international
markets.

* Gross Sales -- The consolidated figure for Gross Sales reached
R$ 11.3 billion, an improvement of 50.8% over that of the first
half of 2003. The Brazilian operations contributed with 52.0% of
this total (R$ 5.9 billion), while the North American operations
contributed with 43.8% (R$ 4.9 billion) and companies in Chile,
Uruguay and Argentina contributed with the remaining 4.2% (R$
474.8 million).

* Exports -- Shipments from Gerdau Acominas to clients overseas
reached 1.4 million metric tons in the first half of 2004
compared to the 1.5 million of the same period last year.  In
spite of the reduction of 6.5% in tons shipped, revenues
obtained with these Sales increased by 42.4%, reaching US$ 509.2
million (R$ 1.8 billion) this year (US$ 357.6 million pro-forma
for 2003 -- R$ 1.3 billion).  This is a consequence of the
increase in international prices of steel products.  For Gerdau
Acominas, average export prices increased 47.2% in the first six
months of the current year compared to those of the same period
in 2003.

* EBITDA -- The operating cash generation (EBITDA) reached R$
2.6 billion this first half, compared to the R$ 1.4 billion in
the same period of 2003, an increase of 92.3%.  The EBITDA
margin jumped from 21.3% to 27.4% for the year.

* Output -- The output of slabs, billets and blooms this first
half of 2004 reached 6.4 million metric tons, 5.2% greater than
that of the first half of 2003, when output reached 6.1 million
tons.  The output of rolled products reached 4.8 million metric
tons, 10.1% more than in 2003.  Growth in demand in the North
and South American markets, regions in which Gerdau has
industrial units, contributed to the increase in output.  The
greater variation in rolled products resulted from the beginning
of operation of the new wire-rod rolling mill and to the greater
utilization of the installed capacity at the structural steel
mill, both located at the Ouro Branco Mill.

* Interest on capital stock and dividends -- Interest on capital
stock and dividends for the second quarter will be paid on
August 17th to shareholders of both Metalurgica Gerdau S.A. and
Gerdau S.A. Payouts will be of R$ 89.1 million (R$ 1.08 per
share) and R$ 191.8 million (R$ 0.65 per share), respectively.

* Anticipation of interest on capital stock -- At meetings held
on July 31st, the Boards of Metalurgica Gerdau S.A. and Gerdau
S.A. approved the payment of interest on capital stock, in
anticipation of results of the third quarter of 2004.
Shareholders of Metalurgica Gerdau S.A. will receive R$ 66.0
million (R$ 0.80 per share) and Gerdau S.A. shareholders R$
135.8 million (R$ 0.46 per share).  These amounts will be paid
on November 17th 2004, based on the number of shares held in
each of the companies on August 13th.

* Capital increase at Gerdau Ameristeel -- Gerdau Ameristeel
Corporation announced on April 1st the private placement of 26.8
million shares at the price of Cdn$ 4.90, approximately US$
100,0 million.  This capital increase was made by Gerdau S.A.,
which increased its stake in the Company to 72.3% up from 68.6%.

* Issuance of Senior Secured Export Notes -- On June 3rd Gerdau
Acominas S.A. concluded the issuance of a second tranche of US$
128 million of its Securitizaton program.  This second tranche
was placed with a final maturity of 8 years (April 2012) and
interest of 7.321% per annum.  The operation was concluded in
parallel with a derivate instrument (US Treasury Lock) that
reduced the effective final cost to 6.798% per annum.

To see financial statements:
http://bankrupt.com/misc/Gerdau_2Q04A.pdf


NET SERVICOS: Reports Consolidated EBITDA of $29.9M in 2Q04
-----------------------------------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq:NETC) (Bovespa:PLIM4)
(Bovespa:PLIM3) (Latibex:XNET), the largest Pay-TV multi-service
operator in Latin America, an important provider of bi-
directional broadband Internet access (Virtua), multimedia, and
data communication services for corporate network, announced on
Tuesday its earnings results for the 2Q04. The following
financial and operating information, except where otherwise
stated, is presented in U.S. GAAP on a consolidated basis.

a) Net Revenues totaled US$ 115.9 million, an increase of 0.8%
in comparison to 1Q04. This growth occurred due to increase in
PPV revenues, increase in monthly fees for part of the Pay TV
subscribers' base and an increase in Pay-TV and Broadband
subscriber base.

b) Consolidated EBITDA reached US$ 29.9 million, a 5.7% decrease
compared to the US$ 31.8 million recorded in the previous
quarter. This decrease is due to Real Depreciation, since in BR
GAAP Consolidated EBITDA reached a record high in the Company's
history with a 3.5% increase compared to the prior quarter. This
performance occurred as a consequence of a general operating
improvement, once the Company posted higher sales in all its
business segments and has also maintained operating costs under
control.

c) Operating Income (EBIT) ended the quarter at US$ 13.8
million. In BR GAAP, this was also the highest EBIT ever
reported, 8.9% higher than 1Q04 result, following the
implementation of key improvements to the Company's operations,
resulting in recurring superior performance in churn management,
client retention, in sales channels execution and in continuous
cost control. This drop in Operating Income is a consequence of
the Real Depreciation.

d) Net Loss rose from US$ 15.0 million to US$ 24.6 million (or
US$ 0.01 per share). Higher losses mainly reflect the Real
Depreciation, since in Corporate Law there was a decrease in Net
Loss.

To view financial statements please visit:
http://bankrupt.com/misc/NetServ_2Q04.pdf

CONTACTS: Net Servicos de Comunicacao S.A.
          Mr. Marcio Minoru, 5511-5186-2811
          minoru@netservicos.com.br

          or

          Mr. Rodrigo Alves, 5511-5186-2637
          rodrigo.alves@netservicos.com.br


NII HOLDINGS: STJ Ditches Request to Lift Injunction on Assets
--------------------------------------------------------------
The Brazilian unit of US-based trunking operator NII Holdings
failed to convince the appeals court STJ to end a freeze on some
of its assets.

Business News Americas recalls that the Rio de Janeiro state
government earlier froze 5% of Nextel Brazil's assets after the
Company allegedly failed to pay BRL90 million (US$29.5mn) in
unpaid taxes. Denying the government's claim, Nextel went to
court and requested to suspend the injunction.

But according to STJ vice-president Salvio de Figueiredo
Teixeira, the injunction cannot be suspended because Nextel did
not demonstrate the extent to which freezing the assets would
damage the Company.


TELEMAR: BNDES OKs BRL663M Financing for Oi
-------------------------------------------
Tele Norte Leste (NYSE:TNE) announced Monday that Oi, Telemar's
mobile operator, has been granted a BRL663 million direct loan
from BNDES, the Brazilian National Development Bank.

The proceeds will be used to fund/reimburse part of Oi's
2003/2005 CAPEX program. The financing carries a maturity of
eight years, including a one and a half year grace period and
will be subject to an interest rate based on the long term
lending rate of the Bank - TJLP plus 4.5% p.a.

CONTACT: Investor Relations
         Email: invest@telemar.com.br
         Mr. Roberto Terziani - 55 (21) 3131-1208
         Mr. Carlos Lacerda - 55 (21) 3131-1314
         Fax: 55 (21) 3131-1155



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

ENERSIS: No Interim Dividend In August Says Board
-------------------------------------------------
The board of Chilean electricity producer Enersis unanimously
decided in an ordinary session held July 28 to skip an interim
dividend in August 2004, with respect to the financial results
of June 2004.

In a filing with the Securities and Exchange Commission, Enersis
said the expected conditions of the dividend policy weren't met.

Enersis ended the first half of 2004 with a lower net profit
following the sale of some of its local assets. In a statement,
the Company revealed net profits of CLP13.7 billion (US$21.5mn)
in the first half of the year, down from profits of CLP40.1
billion in the same year-ago period.

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

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

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



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

MILLICOM INTERNATIONAL: EBITDA Up 47% in Q204
---------------------------------------------
Millicom International Cellular S.A. (Nasdaq Stock Market: MICC,
Stockholmsborsen and Luxembourg Stock Exchange: MIC), the global
telecommunications investor, announced on Tuesday results for
the quarter and six months ended June 30, 2004:

HIGHLIGHTS:
- Record quarterly total subscriber increase for Q2 04 of
474,996 *(i)
- 50% increase in revenues for Q2 04 to $216.0m (Q2 03:
$143.9m)*
- 47% increase in EBITDA for Q2 04 to $107.7m (Q2 03: $73.4m)*
- Profit for Q2 04 of $14.8m (2003: $176.0m)
- Profit per common share of $0.17 for Q2 04 (Q2 03: $2.70)
- 52% increase in revenues for the first half of 2004 to $429.9m
(2003: $282.6m)*
- 51% increase in EBITDA for the first half of 2004 to $214.5m
(2003: $142.4m)*
- Profit for the first half of 2004 of $29.5m (2003: $202.3m)
- Profit per common share of $0.39 for the first half of 2004
(2003: $3.11)

Financial summary for the quarters ended June 30, 2004 and 2003*

                                 June 30     June 30     Change
                                   2004        2003
Worldwide subscribers (i)
- proportional  cellular(ii)   4,421,185   3,083,955        43%
- total cellular               6,372,367   4,471,835        43%

US$ ``000
Revenues                        216,049     143,862        50%

Operating profit before
interest, taxes,                 107,705      73,403        47%
depreciation and
amortization, EBITDA(iii)

EBITDA margin                        50%         51%

Profit for the quarter            14,786     176,035

Basic profit per common             0.17        2.70
share (US$)

Diluted profit per common           0.17        2.58
share (US$)

Weighted average number of         86,094      65,138
shares (thousands)

Weighted average number of
shares and dilutive                89,601      68,655
potential shares (thousands)

(i) Subscriber figures represent the worldwide total number of
subscribers of cellular systems in which MIC has an ownership
interest. Subscriber figures exclude divested operations.

(ii) Proportional subscribers are calculated as the sum of MIC's
percentage ownership of subscribers in each operation.

(iii) EBITDA; operating profit before interest,
taxation,depreciation and amortization, is derived by deducting
cost ofsales, sales and marketing costs, and general
andadministrative costs from revenues.

* Due to local issues in El Salvador, MIC discontinued
consolidating El Salvador on a proportional basis from May 2001
to September 2003. Figures for 2003 in this press release
therefore exclude divested operations and El Salvador in respect
to subscribers and for financial results, down to and including
EBITDA. Figures for 2004 include El Salvador and exclude
divested operations for subscribers and financial results, down
to and including EBITDA.

Marc Beuls, MIC's President and Chief Executive Officer stated:
"MIC has built on the buoyant start of 2004 by producing revenue
growth of over 50 % whilst keeping the EBITDA margin at 50% in
the second quarter of 2004. MIC added 474,996 net new total
cellular subscribers in the second quarter of 2004, the highest
quarterly absolute increase in subscribers excluding El Salvador
and divested operations on record, bringing the total
subscribers for the Group to almost 6.4 million at the end of
June 2004. The accelerated subscriber growth is driven by the
increase in capex spent since the third quarter of 2003 but does
not yet include the impact of our recent investment in four GSM
networks in Latin America, which will all be launched by the end
of August 2004.

"Paktel, one of our operations in Pakistan, has finalized phase
one of the build-out of its GSM network and has asked permission
from the PTA (the Pakistan regulator) to launch the service
nationwide. Paktel's license was modified in 2002 to allow the
company to market GSM services, subject to Paktel committing to
invest US$150 million within 3 years, paying Rs200 million in
administrative fees and lowering existing tariffs by at least
20%. Despite being in compliance with the modified license terms
and conditions however, Paktel has been prevented from launching
its GSM network and has been ordered by the PTA to pay an
additional US$38.8 million in order to launch its GSM network.
Paktel fundamentally disagrees with the order and has, in line
with the prescribed process, launched an appeal in the Pakistan
High Court. In the light of the planned GSM migration, both
Paktel and Pakcom stopped investments in the TDMA network in the
beginning of 2004, which impacted revenues slightly in the
second quarter.

"As I indicated last quarter, revenues in Vietnam were impacted
by the tariff reduction introduced on May 1st and by changes in
the interconnect terms. We noticed, however, increases of 11 and
8 percent in minutes of use respectively for the prepaid and
postpaid market in June from the previous month and expect that
revenues will again be at the April level in July. It confirms
once more the price elasticity in the mobile industry in the
emerging markets. New tariff reductions have been decided by the
VNPT starting August 1st. We expect to see a similar impact in
Q3 as we experienced in Q2.

"The benefits of further investment in GSM networks saw MIC
Africa perform particularly strongly, producing year-on-year
quarterly growth in revenues and EBITDA of 91% and 68%
respectively. Growth in our West African operation Ghana has
been particularly strong since the beginning of this year.

"Our operations in Central America continue to show good growth
and, in South America, both Bolivia and Paraguay produced their
highest quarterly revenue increases for several years, giving us
confidence that the Latin American markets will continue to
improve, fuelled by the GSM migration in Paraguay, Guatemala, El
Salvador and Honduras under the common Tigo brand. Telemovil,
our operation in El Salvador has been improving its
profitability over the quarter and is approaching the MIC
average."

FINANCIAL AND OPERATING SUMMARY*

Subscriber growth:

- An annual increase in total cellular subscribers of 43% to
6,372,367 at June 30, 2004.

- 32% underlying annual growth in total cellular subscribers
excluding El Salvador.

- An annual increase in proportional cellular subscribers of
43% to 4,421,185 at June 30, 2004

- 28% underlying annual growth in proportional subscribers
excluding El Salvador.

- In the second quarter of 2004 MIC added 474,996 net new total
cellular subscribers.

- Proportional prepaid subscribers increased to 3,915,886 from
2,764,099 at June 30, 2003.

Financial highlights:

- Revenues for the second quarter of 2004 were $216.0 million,
an increase of 50% from the second quarter of 2003.  Excluding
El Salvador the increase was 26%.

- EBITDA increased by 47% in the second quarter of 2004 to
$107.7 million, from $73.4 million for the second quarter of
2003. Excluding El Salvador, the increase was 24%.

- Total shareholders' equity at June 30, 2004 was ($4.3m)
compared to ($85.2m) at December 31, 2003.

- Profit for the second quarter of 2004 was $14.8 million,
compared to $176.0 million for the second quarter of 2003. The
profit for the second quarter of 2003 included an amount of
$161.2 million relating to the gain and valuation movement on
investment in securities and the gain on debt restructuring.

- Capital expenditure for the three months ended June 30, 2004
was $42.0 million and for the six months ended June 30, 2004 was
$103.3 million.

- Total cellular minutes increased by 48% for the three months
ended June 30, 2004 from the same quarter in 2003 and increased
by 32% excluding El Salvador.  Prepaid minutes increased by 57%
in the same period and by 47% excluding El Salvador.

On April 26, 2004 Millicom called the entire outstanding amount
of its 2% Senior Convertible PIK Notes Due 2006 for redemption
in cash in accordance with the terms of the Indenture covering
the 2% Notes. A total of $63,371,000 of the 2% Notes was
converted into shares of MIC common stock, with a par value of
$1.50 each from the initial amount of $63,531,000.

Subsequent events:

  -  On July 1, 2004, Telecel S.A., Millicom's operation in
Paraguay, launched GSM services in the 850MHz frequency,
covering 95 cities and towns, under the brand name of Tigo.

REVIEW OF OPERATIONS

SUBSCRIBER GROWTH*

In the second quarter of 2004 MIC's worldwide operations in
Asia, Latin America and Africa added 474,996 net new total
cellular subscribers. On a proportional basis, MIC added 293,155
subscribers, bringing the number of proportional cellular
subscribers at June 30, 2004 to 4.4 million.

At June 30, 2004, MIC's total cellular subscriber base increased
by 43% to 6,372,367 cellular subscribers from 4,471,835 as at
June 30, 2003. Particularly significant percentage increases
were recorded in Ghana, Senegal, Sierra Leone and Vietnam. MIC's
proportional subscriber base increased to 4,421,185 at June 2004
from 3,083,955 at June 30, 2003, an increase of 43%.

Within the 4,421,185 proportional cellular subscribers reported
at the end of the second quarter, 3,915,886 were prepaid
subscribers. Excluding El Salvador, proportional prepaid
subscribers increased by 29% from June 2003. Prepaid subscribers
currently represent respectively 87% and 89% of total and
proportional cellular subscribers.

Cellular Operations (i)*


    Proportio  Proportio  Annua     Total     Total     Annua
     nal (ii)   nal (ii)  lized    Subs at   Subs at    lized
    Subs at    Subs at   Increase   June 30,  June 30,  Incre
    June 30,   June 30,              2004       2003     ase
     2004       2003

South
East
Asia     883,229    562,246  57%    1,939,790  1,222,404    59%
South
Asia    1,063,081   831,671  28%    1,271,138  1,005,761    26%
MIC
Asia    1,946,310 1,393,917  40%    3,210,928  2,228,165    44%
Central  1,037,755   431,124  141%   1,523,790    811,731    88%
America
South      754,900   962,240 -22%      774,304    986,397   -22%
America
MIC
Latin   1,792,655 1,393,364  29%     2,298,094 1,798,128    28%
America
MIC        682,220   296,674  130%      863,345   445,542    94%
Africa
Total    4,421,185 3,083,955  43%     6,372,367 4,471,835    43%
Cellular
Ops

(i)  All numbers and comparatives exclude divested operations.
(ii) Proportional subscribers are calculated as the sum of
MIC's percentage ownership of subscribers in each operation.

*  Due to local issues in El Salvador, MIC discontinued
consolidating El Salvador on a proportional basis from May 2001
to September 2003.Figures for 2003 therefore exclude El
Salvador. Figures for 2004 include El Salvador.

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2004*

Total revenues for the three months ended June 30, 2004 were
$216.0 million, an increase of 50% from the second quarter of
2003, reflecting the increasing trend of growth in MIC's
operations and the reconsolidation of El Salvador. MIC recorded
revenue growth in Africa of 91% to $35.2m in the second quarter
of 2004 compared with the same period in 2003, with Ghana
producing growth of 170%. Revenues for Asia for the second
quarter of 2004 increased by 21% from the same period last year,
to $81.5 million, with $51.8 million for South East Asia and
$29.7 million for South Asia.

Second quarter revenues for Latin America increased by 78% from
the second quarter of 2003, mainly because of the
reconsolidation of El Salvador, or by 13% if El Salvador is
excluded. The Central American market continued to perform
strongly, producing a 130% increase in revenues from the second
quarter of 2003 and by 15% excluding El Salvador. In South
America, Bolivia and Paraguay produced revenue increases of 7%
and 14% respectively, their highest year-on-year quarterly
increases for several years, pointing to a sustained recovery in
the region.

Second quarter revenues for South East Asia were $51.8 million
compared to $55.7 million in the first quarter of 2004. This
decrease was mainly due to the tariff reduction introduced on
May 1st and to changes in the interconnect terms in Vietnam. A
10 percent increase in total minutes of use was however recorded
in June as compared to May, and revenues are expected to return
to the April level in July.

Second quarter revenues for South Asia were $29.7 million
compared to $30.6 million in the first quarter of 2004. This
decrease was partly due to the fact that, in light of the
planned GSM migration of Paktel, both Paktel and Pakcom stopped
investments in the TDMA network at the beginning of 2004, which
impacted revenues slightly in the second quarter.

EBITDA for the three months ended June 30, 2004 was $107.7
million, an increase of 47% from the quarter ended June 30,
2003. EBITDA for Africa increased by 68% to $14.0 million in the
second quarter of 2004 from $8.3 million in the second quarter
of 2003, with the most impressive growth occurring in Ghana.
EBITDA for Asia was $47.4 million for the second quarter, an
increase of 24% from the same period in 2003, with increases of
28% and 16% for South East Asia and South Asia respectively.
Latin America recorded growth in EBITDA of 78% from the second
quarter of 2003 to $46.4 million, following the reconsolidation
of El Salvador, with a strong increase of 22% produced by
Guatemala. Excluding El Salvador, EBITDA grew by 16%. The
quarterly EBITDA margin for Asia was 58%, (63% for South East
Asia and 50% for South Asia), for Latin America it was 48% (51%
for Central America and 38% for South America) and for Africa it
was 40%.

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2004*

Total revenues for the first half of 2004 were $429.9 million,
an increase of 52% from the first half of 2003. Revenues for
Africa were $66.9 million, increasing by an impressive 83%. In
Asia revenues increased by 27% from the first half of 2003 to
$167.9 million, with $107.5 million recorded for South East Asia
and $60.4 million for South Asia. Revenues for Latin America for
the first half of the year increased by 77% to $191.1 or by 13%
to $121.8 million if El Salvador is excluded. Revenues for
Central America (including El Salvador) and South America were
$139.5 million and $51.6 million respectively.

EBITDA was $214.5 million for the first half of 2004, an
increase of 51% over the first half of 2003. Most notably Africa
recorded a 79% increase to $27.3 million for the six months
ended June 30, 2004. EBITDA for Asia was $97.4 million, up 31%
from the first half of 2003, with $65.5 million and $31.9
million recorded for South East Asia and South Asia
respectively. EBITDA for Latin America increased by 76% to $89.9
million with $69.9 million recorded for Central America and
$20.0 million recorded for South America. Excluding El Salvador,
EBITDA for Latin America for the first half of the year
increased by 16% from the same period in 2003. The Group EBITDA
margin for the six months to June 30, 2004 was 50%, for Asia it
was 58% (61% for South East Asia and 53% for South Asia), for
Latin America it was 47% (50% for Central America and 39% for
South America) and for Africa it was 41%.

Total cellular minutes increased by 52% for the first half of
2004 compared with the same period in 2003.

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

CONTACT: Mr. Marc Beuls Telephone: +352 27 759 327
         President and Chief Executive Officer
         Millicom International Cellular S.A., Luxembourg

         Mr. Andrew Best Telephone: +44 20 7321 5022
         Investor Relations
         Shared Value Ltd, London

         Web Site www.millicom.com



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Buys 10Mhz of Spectrum from AT&T
-----------------------------------------------------------
Centennial Communications Corp. (the "Company") (Nasdaq: CYCL -
News) announced on Tuesday that it has exercised its option to
purchase 10 MHz of spectrum from AT&T Wireless covering an
aggregate of approximately 4.1 million population equivalents
(POPs) contiguous to its existing properties in Michigan and
Indiana. The aggregate exercise price of the spectrum is
approximately $19.5 million.

In addition, the Company announced today that is has entered
into a definitive agreement to sell the Indianapolis and
Lafayette, Indiana licenses that it will acquire from AT&T
Wireless to Verizon Wireless for $24 million in cash. Pro forma
for these transactions, Centennial will acquire an incremental
approximately 2.2 million POPs and receive approximately $4.5
million in cash.

Both transactions are subject to customary closing conditions,
including regulatory approvals, and are expected to close before
calendar year-end 2004.

A complete list of the licenses Centennial will acquire is as
follows:

  BTA               Market                     PCS Block   MHz
  ---               ------                     ---------   ---
15                  Anderson, IN*              E           10
115                 Lansing, MI*               A3          10
169                 Grand Rapids, MI*          A3          10
204                 Indianapolis, IN**         F           10
235                 Lafayette, IN**            F           10
309                 Muncie, IN*                E           10
310                 Muskegan, MI               A3          10
390                 Saginaw-Bay City, MI       A3          10

*Indicates partitioned BTA.
**Indicates markets being sold to Verizon Wireless.

A map showing the location of the licenses being acquired and
Centennial's existing footprint is available at
www.centennialwireless.com, click on Investor Relations, then
Presentations.

The Company anticipates launching the Grand Rapids and Lansing,
Michigan markets with GSM/GPRS technology by the end of calendar
year 2005. These markets represent approximately 1.4 million
POPs and bridge the gap in Centennial's Midwest cluster. There
are no immediate plans to build-out the additional licenses.
Centennial expects that start up adjusted operating income
losses and capital expenditures relating to the new build will
be approximately $10 million and $35 million, respectively, over
the next two years.

"This measured expansion substantially improves our footprint
and competitive position in our Midwest cluster because many
people in our existing territory travel regularly to Grand
Rapids and Lansing. This new territory is an attractive growth
opportunity in its own right and it enables us to better market
our services to more of our existing footprint," said Michael J.
Small, chief executive officer. "It represents the natural
evolution of our successful efforts to improve our retail
margins in a fashion that positions us for future growth."

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and
the Caribbean with approximately 17.3 million Net Pops and
approximately 1,027,500 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas.

Centennial's Caribbean integrated communications operation owns
and operates wireless licenses for approximately 11.2 million
Net Pops in Puerto Rico, the Dominican Republic and the U.S.
Virgin Islands, and provides voice, data, video and Internet
services on broadband networks in the region. Welsh, Carson
Anderson & Stowe and an affiliate of the Blackstone Group are
controlling shareholders of Centennial.

CONTACT: Centennial Communications Corp.
         Mr. Eric S. Weinstein
         732-556-2220

         Web Sites: www.centennialwireless.com
                    www.centennialpr.com
                    www.centennialrd.com



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

* S&P Revises LTFC Rating of Republic of Suriname to 'B-'
---------------------------------------------------------
Standard & Poor's Rating Services revised its long-term foreign
currency sovereign credit rating on The Republic of Suriname to
'B-' from 'SD' (Selective Default), following new information
provided by the government of Suriname. The outlook is stable.
The rating had been lowered to 'SD' on July 28, 2004.

The new information indicates that principal and interest on the
credit lines extended by Banco Bilbao Vizcaya Argentaria, S.A.
(AA-/Stable/A-1+) and Banco Santander Central Hispano, S.A.
(A+/Stable/A-1) are 100% guaranteed by the Spanish Export Credit
Insurance Company (SESCE). In view of this guarantee, Standard &
Poor's regards these credit lines as being official bilateral
loans, rather than commercial obligations, and the government
arrears on these credit lines therefore do not constitute a
default according to Standard & Poor's rating methodology.

"We are pleased that the government of Suriname has clarified
the status of these credit lines and that, as a result, Standard
& Poor's is able to reinstate its 'B-' foreign currency credit
rating on the sovereign," said David Beers, managing director
and global head of sovereign and international public finance
ratings at Standard & Poor's.

ANALYSTS:  David T Beers, London (44) 20-7176-7101
           Olga Kalinina, CFA, New York (1) 212-438-7350
           Helena Hessel, New York (1) 212-438-7349



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

CANTV: Opposition Leaders Dismiss Chavez's Threats
--------------------------------------------------
Opponents of Venezuelan President Hugo Chavez ignored the
latter's threat to decree the intervention of CANTV if the phone
company failed to transmit fairly the results of the upcoming
referendum on his rule, according to a report released by online
newspaper El Universal.

Over the weekend, Chavez threatened to "intervene" CANTV, the
country's privately owned telephone company in charged of
providing telecomm assistance during the recall referendum.
Chavez said that he had a contingency plan to take over the
Company if it takes part in any fraud on August 15.

But according to Luis Manuel Esculpi, secretary general of
opposition Union party: "President Chavez cannot come up now
with the story that he mistrusts CANTV data transmission because
the pro-Chavez majority in the National Electoral Council rushed
to contract the consortium (in charge of the election
automation) in which the State had a stake and to which CANTV is
a party."

Esculpi claims Chavez' followers are trying to make the public
disown the overwhelming victory of the opposition in the August
15 recall vote.


PDVSA FINANCE: Completes Tender Offer, Consent Solicitation
-----------------------------------------------------------
PDVSA Finance Ltd., a wholly owned subsidiary of Petroleos de
Venezuela, S.A. (PDVSA), announced Tuesday the completion of its
tender offer and consent solicitation for its outstanding notes.
Holders of an aggregate of approximately 96.34%(1) in principal
amount of the notes tendered and delivered their consents
pursuant to the tender offer and consent solicitation and,
pursuant to the terms of the tender offer and consent
solicitation, PDVSA Finance purchased on August 2, 2004 all
notes validly tendered in the tender offer. Amendments to
certain provisions of the Senior Indenture, as supplemented,
under which each series of notes were issued, and related
transaction documents also were executed. After the settlement
of the tender offer and consent solicitation on August 2, 2004,
the following notes will remain outstanding. Click to see table:
http://bankrupt.com/misc/Outstanding_Notes.htm

Dealer Managers and Consent Solicitation Agents; Luxembourg
Agent

Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
served as dealer managers and consent solicitation agents for
the tender offer. The Luxembourg Agent for the offer was J.P.
Morgan Bank Luxembourg S.A.

About PDVSA

PDVSA is the national oil company of the Bolivarian Republic of
Venezuela, formed by the government of Venezuela in 1975. All of
the crude oil and natural gas reserves are located exclusively
in Venezuela and PDVSA's exploration and production of crude oil
and natural gas are conducted exclusively in Venezuela. The
refining, marketing and transportation of crude oil, natural gas
and refined petroleum products of PDVSA are located in Venezuela
as well as in the United States, Europe and the Caribbean. PDVSA
Finance, a Cayman Islands company, is the principal financing
vehicle for and a wholly owned subsidiary of PDVSA.

(1) Using an exchange rate of EUR/USD 1.2141 as of 5:00 p.m.,
New York City time, on July 26, 2004.

CONTACTS:  Gerencia Corporativa de Asuntos Publicos -- PDVSA
           Rafael Gomez, 011 58 212 708 4537
           Daniel Cortez, 011 58 212 708 4808
           Lucrecia Comez, 011 58 212 708 4671


SIVENSA: Posts $25M Net Profit in 3Q04
--------------------------------------
Siderurgica Venezolana Sivensa, S.A. reported consolidated sales
for the third quarter of fiscal year 2004, ending last June 30,
in the amount of US$ 143.4 millions, compared to sales of US$
77.1 millions corresponding to the same quarter of the previous
fiscal year (1).

The operating profit was US$ 38.1 million, compared to an
operating profit of US$ 13.8 million in the period April-June
2003. Net profit was US$ 25.0 million, versus a net profit of
US$6.4 million reported for the same period of the preceding
fiscal year.

The increase in sales figures is due mainly, as in the two
previous quarters, to the price increase of the reduced iron
briquettes and of steel in the international market, and to the
superior demand in the domestic market, caused by the increase
in public expenditure and higher liquidity.

However, the formal construction sector continues to decline as
it has since the beginning of this year, and, as of the month of
June, a deceleration in domestic demand for steel and wire
products has been observed.

As has been stated in previous reports, the international iron
and steel market is presently in a high price cycle, maintained
mainly by the demand from China and the United States.

After an unprecedented rise during the months of February, March
and beginning of April of this year, the steel product prices
experienced a correction, stabilizing for the majority of the
markets and products, between May and June. However, the average
prices for the quarter April-June were higher than those for the
quarter January-March 2004, and, to this date, are still high in
comparison to the last five years levels.

With respect to the pre-reduced sector, the average reference
price of the reduced iron briquettes unloaded on barge in the
port of New Orleans, United States of America, was US$ 271.7/MT,
compared to US$ 263.3/MT average price in the previous quarter
(January-March 2004) and US$ 152.3/MT (2) during the same period
of the previous fiscal year (April-June 2003) (3).

Upon reaching unprecedented levels during the month of March,
metallic prices experienced a correction, starting in April,
stabilizing in May and June, to bounce back in July. The factors
causing the recent rise in prices are the increase of worldwide
steel production, driven among other reasons, by the growth of
China and the Untied States of America, and the shortage of
coke, which has led integrated steel mills to demand more scrap.

Finances:

According to the terms of Sivensa and Sidetur's debt, 90% of the
net generation of cash during the previous quarter, January-
March 2004, was destined to pay off Sivensa and Sidetur's debt.

This amortization was performed in May for an amount of US$ 10.9
million. As of June 30, 2004, Sivensa and Sidetur's financial
debt amounts to US$ 223.2 million. Other aspects related to
Sivensa's debt will be commented thereafter in this report.

ANALYSIS BY BUSINESS SECTORS

Steel Sector:

Sidetur's sales during the April-June 2004 quarter were US$ 76.8
million, compared to sales of US$ 39.8 million in the same
period of the preceding fiscal year. The variation in sales is
explained by the recovery of the local demand and by the
increase of international prices for steel products.

Pre-reduced Sector:

International Briquettes Holding, IBH sales were US$ 34.0
million in the April-June 2004 period, compared to US$ 20.5
million sales registered in the same period of 2003 (4).

Venprecar's production during the quarter was 192.717 MT,
similar to that achieved in the same quarter of the previous
fiscal year of 199.550 MT, both figures near the design capacity
of the plant.

Orinoco Iron Plant

The Orinoco Iron Plant produced 224.668 MT during the period
April-June 2004, compared to 194.759 MT during the same quarter
of the preceding fiscal year.

During the quarter April-June 2003 only production trains 1 and
2 were available, while trains 1, 2 and 3 were available during
the quarter April-June 2004, and starting May 27, train 4 became
available. The number of daystrain effectively operated during
the quarter April-June 2003 was 145.5, compared to 192 daystrain
operated during the quarter April-June 2004.

The duration of the train runs and the effective production/day
is still under expected levels, due to:

1) inefficiencies in the process attributable to certain
characteristics of the iron ore; studies have been initiated to
analyze the problem from the mine to the plant, including on-
going discussions with the supplier;

2) failure in the reactors, an on-going situation being reviewed
jointly with Voest Alpine Industrieanlagenbau (VAI)(5); and

3) difficulty in the availability of specific parts which
require large manufacturing periods, and which will be delivered
at the end of 2004 calendar year.

During the quarter reported (April-June 2004), Orinoco Iron's
production was also affected by a deficit in the iron ore volume
received. At the date of publication of this report, the
supplier has initiated a process to regulate the situation
related to the mineral supply.

Orinoco Iron's sales during the quarter reached US$ 40.1 million
(6), compared to US$ 25.8 million sales reported in the same
quarter of the preceding fiscal year. Orinoco Iron's operating
loss was US$ 5 million, compared to the US$ 0.3 million
operating profit during the period April-June 2003.

Orinoco Iron's costs during the quarter reported were affected
due to:

1) the start up and testing of train 4 at the end of May 2004,
and

2) the substantial price increase of gas (197% between the
second quarter of 2003 and the second quarter of 2004), which,
due to contractual conditions, is subject to variation in oil,
gas and scrap index prices in the international market. Orinoco
Iron's net loss was US$ 19 million, versus a net loss of US$ 10
million during the same quarter of fiscal year 2003.

Wire Sector:

Total sales of wire and wire products from Vicson during the
quarter, including the Proalco subsidiary, with operations in
Colombia, were US$ 30.5 million, compared to US$ 19.0 million
sales reported in the April-June 2003 period. Domestic sales in
the quarter registered a significant increase with respect to
the previous year due to a higher volume, especially in the
manufacturing sector, and to better product prices, as a result
of an increase in the international prices for wire with respect
to the same period of the previous year (April-June 2003).

A positive impact of the increase of international prices is
also reflected in the export market and in the operations of the
subsidiary Proalco. Sivensa debt, Orinoco Iron debt
restructuring and other relevant financial aspects.

As we have reported on previous occasions, Sivensa and its
wholly-owned subsidiary Sidetur restructured their financial
liabilities in May 2002. Payment of the restructured liabilities
will be performed mainly from the operating cash flows of
Sivensa and Sidetur. The agreement to restructure the bank
liabilities of Sivensa and Sidetur, whose terms and conditions
were approved by the Shareholders' Meeting of January 2002,
include a restriction on declaration and payment of dividends
until the debt is entirely paid, and possible additional
capitalizations by the creditor banks. At the date of this
report, Sivensa and Sidetur are in compliance with the terms and
conditions of the restructuring agreement.

On the other hand, as has been amply stated in previous reports,
during 1997, subsidiaries IBH and Venprecar issued securities in
favor of the Orinoco Iron Secured Parties, in relation to a loan
received by the latter to finance its industrial facilities.

In March 2001, BHP Billiton, the partner of IBH in Orinoco Iron,
announced that it would write off its investment in Orinoco
Iron, and cease any further contributions to the project. In
April 2001, Orinoco Iron failed to comply with its payment
obligations under the financing agreements, and the Trustee
demanded full payment of the total amount due. Following, BHP
paid the Orinoco Iron creditor banks the sum related to its 50%
interest established in the Common Security Agreement for the
debt incurred into for the construction of the Plant.

During a period of more than three years, which has elapsed in
default, Orinoco Iron and IBH have held conversations with the
creditor banks, BHP Billiton and the Corporaci˘n Venezolana de
Guayana (CVG), majority stockholder of the iron ore and
electricity supplier companies, in order to refinance Orinoco
Iron's financial and commercial debt.

During the month of June 2004, JP Morgan Chase Bank (the
Trustee) acting in accordance to instructions from senior
lenders, and exercising the rights set forth in the Common
Security Agreement, the Completion Agreement and the Pledge
Agreements7, disposed of funds derived from Orinoco Iron and
Venprecar exports and accounts receivables, in an amount of US$
32 millions, which were applied to reduce the debt.

Considering the contingent liability which represents Orinoco
Iron's portion of the debt secured by IBH, IBH's future
performance depends on the solution to Orinoco Iron's financial
situation. As stated in previous reports, the negotiations seek
the redefinition of the terms and conditions of Orinoco Iron's
debt with BHP Billiton, the completion of negotiations with the
senior lenders and suppliers to restructure Orinoco Iron's debt,
and obtain the required working capital for operations. During
the April-June 2004 quarter, the parties continued discussing
these aspects.

The conditions associated with the contingent liabilities of
IBH, originated by the issue of guarantees to the Orinoco Iron
senior lenders, as well as other aspects related to the
performance of IBH, its Venprecar subsidiary and the Orinoco
Iron affiliate were explained extensively in the report of the
Board of Directors to the Sivensa Shareholders Meeting held on
January 30, 2004, and in the opinion and notes to the Sivensa
financial statements at September 30, 2003. These conditions are
unchanged at the date of this report and are an essential part
of the analysis of the company's financial position.

Siderurgica Venezolana Sivensa S.A. involves three divisions:
Sidetur, dedicated to the manufacture and marketing of iron and
steel and metalmechanic products for the construction, metallic
structures, electrical, metallic and industrial carpentry
sectors; International Briquettes Holding, IBH, which, through
its direct reduction plants, Venprecar and Orinoco Iron,
produces iron ore briquettes for marketing in international
markets as high quality raw material of steel mills; and Vicson,
that manufactures wires and wire products for the manufacturing,
construction, agricultural and infrastructure sectors.

Sivensa's partners are: in the Vicson division: Bekaert Group
and in IBH: CVG Ferrominera Orinoco and BHP Billiton. Sivensa's
work force as of June 30, 2004, including its affiliate Orinoco
Iron, was 2,787 workers.

NOTES:

- The financial statements for fiscal 2003 were restructured to
reflect retroactively, for comparative purposes, the revaluation
of the assets by independent appraisers in 2003.

- Source: Averages calculated by Orinoco Iron starting from the
monthly data published by CRU Monitor/Steel Metallics, scrap,
DRI and pig iron.

- Due to contractual conditions, changes in market prices are
reflected with a lag of three to six months in the results of
Venprecar and Orinoco Iron. Additionally, Venprecar and Orinoco
Iron have long term contracts that provide briquette fixed
prices.

- Voest Alpine Industrieanlagenbau (VAI), jointly with Fior de
Venezuela, developed FINMET's direct reduction technology, used
in the Orinoco Iron Plant.

- Includes sales under long-term contracts, which provide fixed
prices.

To view financial statements, please visit:
http://bankrupt.com/misc/Sivensa_3Q04.pdf

CONTACT: Siderurgica Venezolana "SIVENSA" S.A.
         Mr. Antonio Osorio
         Investor Relations
         Telephone: 58-212-707 6280
         Fax: 58-212-707.6352
         E-mail: antonio.osorio@sivensa.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
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Information contained herein is obtained from sources believed
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