TCRLA_Public/040827.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

             Friday, August 27, 2004, Vol. 5, Issue 170

                            Headlines


A R G E N T I N A

AMARA S.A.: Court Declares Company Bankrupt
BHN III: Local S&P Reaffirms Debt Ratings
BOOMERANG CARDS: Judge Approves Bankruptcy Motion
DEXER S.R.L.: Liquidates Assets to Pay Debts
ELECTROMECANICA OISA: Seeks to Restructure Debt

ELECTROZYK S.A.: Court Resets Liquidation Schedule
EXPOFOT S.A.: Court Moves Assembly Date
GARAVAGLIA Y CIA: Trustee to Close Claims Validation
IANNONE JUAN: Court Grants Reorganization Plea
LOMAS TAINER: Bankruptcy Process Initiated by Court Order

MERCEDES CONFECCIONES: Credit Validation Process Nears End
MIRAMAX S.A.: Court Issues Bankruptcy Order
NEOFUNE: Claims Verification Deadline Approaches
PANELMASTER S.A.: Court OKs Voluntary Bankruptcy Plea
RECLINERS SYSTEM: Court Deems Liquidation Prudent

SALPE S.R.L.: Gets Court Authorization to Reorganize
SPORTBRANDS S.A.: Bankruptcy Protection Initiated
SUENOS DORADOS: Court Favors Creditor's Bankruptcy Motion


B R A Z I L

AHOLD: Posts EUR32Mln Net Income in 2Q04
EMBRATEL: Appoints Isaac Berensztejn as New CFO
TELESP CELULAR: Intends to Launch Tender Offer for Subsidiaries


C H I L E

ROYAL SHELL: In Talks With Petrobras Over Chilean Unit Sale
SCL TERMINAL: Moody's Ups Rating to B3 From Caa1


C O S T A   R I C A

ICE: Finalizes Internet Access Rates


D O M I N I C A N   R E P U B L I C

TRICOM: Names Gitner as Independent Non-executive Director


M E X I C O

PEMEX: Munoz Supports Move to Modify Tax Scheme


T R I N I D A D   &   T O B A G O

NWRHA: Concern Raised Over Social Events for Staff Members


V E N E Z U E L A

PDVSA: S&P Raises Rating After Venezuela Upgrade
PETROZUATA FINANCE: S&P Raises Bond Rating To B+
* S&P Raises Long-, Short- Term Ratings On Venezuela To 'B'


     - - - - - - - - - -


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

AMARA S.A.: Court Declares Company Bankrupt
-------------------------------------------
Amara S.A., a company operating in Buenos Aires, will enter
bankruptcy protection after Court No. 6 of the city's civil and
commercial tribunal ordered the company's liquidation. The 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. Norberto Bonesi as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on October 20, 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 November 27, 2004 followed by the general report, which is
due on February 2 next year.

CONTACT: Mr. Norberto Bonesi, Trustee
         Avda Juan B Justo 5096
         Buenos Aires


BHN III: Local S&P Reaffirms Debt Ratings
-----------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
reaffirmed the `raD' rating assigned to various Fideicomiso
Hipotecario BHN III Financial Trusts.

The affected securities are:

- US$14.896 million worth of "Clase A1" financial trusts due on
May 31, 2017

- US$82.09 million worth of "Clase A2" financial trusts coming
due on May 31, 2017

- US$5.06 million worth of "Clase B" financial trusts coming due
on May 31, 2018

Also, the local S&P also reaffirmed the `raC' rating assigned to
Fideicomiso Hipotecario BHN III's "Certificados de
Participacion" worth US$3.374 million due on May 31, 2018.

An 'raC' rating may be used to cover a situation where a
bankruptcy petition has been filed or similar action has been
taken, but payments on the obligation are being continued, said
S&P.


BOOMERANG CARDS: Judge Approves Bankruptcy Motion
-------------------------------------------------
Boomerang Cards S.A. was declared bankrupt after Judge Villar of
Buenos Aires' civil and commercial tribunal Court No. 13
endorsed the petition filed by Ms. Maria Lerrumbre for the
company's liquidation.

La Nacion reports that the court assigned Mr. Donato Antonio
Sakurno to supervise the liquidation process as trustee. He will
validate creditors' proofs of claims until October 1, 2004.

Dr. Guerri, Clerk No. 25, assists the court on this case.

CONTACT: Boomerang Cards S.A.
         Roseti 576
         Buenos Aires

         Mr. Donato Antonio Sakurno, Trustee
         Bernardo de Irigoyen 330
         Buenos Aires


DEXER S.R.L.: Liquidates Assets to Pay Debts
--------------------------------------------
Buenos Aires-based Dexer S.R.L. will begin liquidating its
assets following the bankruptcy pronouncement issued by Court
No. 8 of the city's civil and commercial tribunal. The
bankruptcy ruling places the company under the supervision of
court-appointed trustee, Ms. Silvia Susana Perez Leon. The
trustee will verify creditors' proofs of claims until October
27, 2004. Next, the validated claims will be presented in court
as individual reports on December 9, 2004.

The trustee 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 February 21 next year.

The bankruptcy process will end with the disposal company assets
in favor of its creditors.

CONTACT: Ms. Silvia Susana Perez Leon, Trustee
         Avda Cordoba 850
         Buenos Aires


ELECTROMECANICA OISA: Seeks to Restructure Debt
-----------------------------------------------
Electromecanica Oisa S.R.L., an elevator repair and maintenance
company, requested for reorganization after failing to pay its
liabilities since July 14, 2004. The reorganization petition,
once approved by the court, will allow the company to negotiate
a settlement with its creditors in order to avoid a straight
liquidation.

The case is pending before Court No. 18 of Buenos Aires' Civil
and Commercial Tribunal. Dr. Cufari, Clerk of Court No. 36,
assists on this case.

CONTACT: Electromecanica Oisa S.R.L.
         Ayacucho 369
         Buenos Aires


ELECTROZYK S.A.: Court Resets Liquidation Schedule
--------------------------------------------------
Court No. 14 of Buenos Aires' civil and commercial tribunal,
assisted by Clerk No. 28, rescheduled key event in Electrozyk
S.A.'s liquidation to these dates:

1. Claims Verification Deadline - October 21, 2004;
2. General Report Submission - February 16, 2005

Mr. Alberto Rotenberg serves on this case as trustee says local
news source Infobae.

CONTACT: Mr. Alberto Rotenberg, Trustee
         Avenida Cordoba 1336
         Buenos Aires


EXPOFOT S.A.: Court Moves Assembly Date
---------------------------------------
The informative assembly for the Expofot S.A. reorganization has
been moved to June 17 next year. The Company will present a
completed settlement proposal for its creditors during the
assembly.

Court No. 26 of Buenos Aires' civil and commercial tribunal
handles this case with the assistance of Clerk No. 51.

CONTACT: Expofot S.A.
         Suipacha 597
         Buenos Aires


GARAVAGLIA Y CIA: Trustee to Close Claims Validation
----------------------------------------------------
Mr. Alfredo Ruben Dario Rodriguez, the court-appointed trustee
supervising the Garavaglia y Cia S.A. liquidation proceedings,
is set to close the verification of creditors' claims Monday,
August 30, 2004.

Creditors who fail to comply with the submission deadline will
not qualify for the post-liquidation payments to be made once
all the company's assets are disposed.

CONTACT: CONTACT: Garavaglia y Cia S.A.
         25 de Mayo 196
         Buenos Aires

         Mr. Alfredo Ruben Dario Rodriguez, Trustee
         Marcelo T de Alvear 1775
         Buenos Aires


IANNONE JUAN: Court Grants Reorganization Plea
----------------------------------------------
Iannone Juan y Iannone Pascual S.H. successfully petitioned for
reorganization after Court No. 11 of Mar del Plata's civil and
commercial tribunal issued a resolution opening the company's
insolvency proceedings.

During insolvency, the company will continue to manage its
assets subject to certain conditions imposed by Argentine law
and the oversight of a court-appointed trustee.

Infobae relates that Ms. Elsa Beatriz Palavecino will serve as
trustee during the course of the reorganization. She will be
accepting creditors' proofs of claims for verification until
September 6, 2004.

CONTACT: Iannone Juan y Iannone Pascual S.H.
         Ruta 226 Km 7,5 Nave 2
         Puesto 85 del Mercado de Frutas y Verduras Procosud
                         S.A.
         Mar del Plata

         Ms. Elsa Beatriz Palavecino
         Alberti 3065
         Mar del Plata


LOMAS TAINER: Bankruptcy Process Initiated by Court Order
---------------------------------------------------------
Court No. 18 of Buenos Aires' civil and commercial tribunal
declared local company Lomas Tainer S.R.L. bankrupt after the
company defaulted on its debt payments. The order effectively
places the company's affairs as well as its assets under the
control of court-appointed trustee, Mr. Xilef Irureta.

As trustee, Mr. Irureta is tasked with verifying the
authenticity of claims presented by the company's creditors. The
verification phase is ongoing until September 17, 2004.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Novenber 1, 2004. A general report will
also be submitted on December 14, 2004.

Infobae reports that Clerk No. 35 assists the court on this
case, which will end with the disposal of the company's assets
in favor of its creditors.

CONTACT: Mr. Xilef Irureta, Trustee
         Parana 145
         Buenos Aires


MERCEDES CONFECCIONES: Credit Validation Process Nears End
----------------------------------------------------------
Mr. Roberto Zapata, the court-appointed trustee supervising the
reorganization of Mercedes Confecciones S.A. will verify
creditors' proof of claims until Monday, August 30, 2004.

The court will use the submitted proofs to finalize the list of
creditors eligible to receiver post-liquidation payments.

CONTACT: Mercedes Confecciones S.A.
         Ruta 7 Km. 791 Aerea Indust Parque Norte
         San Luis

         Mr. Roberto Zapata, Trustee
         San Martin 1387
         San Luis


MIRAMAX S.A.: Court Issues Bankruptcy Order
-------------------------------------------
Buenos Aires-based Miramax S.A. entered bankruptcy after Judge
Gutierrez Cabello of Buenos Aires' civil and commercial tribunal
Court No. 7 approved a bankruptcy motion filed by Banca
Nazionale del Lavoro SA. La Nacion says that the Company's
failure to pay US$22,344.33 in debt prompted the liquidation
call.

Working with Dr. Giardinieri, the city's Clerk No. 14, the court
assigned Mr. Jorge Stanislavsky as trustee for the bankruptcy
process. The trustee's duties include the authentication of the
Company's debts and the preparation of the individual and
general reports. Creditors are required to present their proofs
of claims to the trustee before October 14, 2004.

The Company's assets will be liquidated at the end of the
proceedings to repay creditors. Payments will be based on the
results of the verification process.

CONTACT: Miramax S.A.
         Girardot 232
         Buenos Aires

         Mr. Jorge Stanislavsky, Trustee
         Talcahuano 768
         Buenos Aires


NEOFUNE: Claims Verification Deadline Approaches
------------------------------------------------
Creditors of bankrupt Argentine company Neofune S.A. are
requested to submit proof of their claims before the
verification period ends Monday, August 30, 2004. All documents
should be forwarded to the court-appointed trustee, Mr. Aldo
Markman, before the deadline.

Judge Fernandez of Buenos Aires Court No. 19 has jurisdiction
over this case.

CONTACT: CONTACT:  Neofune S.A.
         Lavalle 662
         Buenos Aires

         Mr. Aldo Markman, Trustee
         Alsina 1441
         Buenos Aires


PANELMASTER S.A.: Court OKs Voluntary Bankruptcy Plea
----------------------------------------------------
Judge Villar, serving for Court No. 13 of Buenos Aires' civil
and commercial tribunal, declared Panelmaster S.A. bankrupt,
says La Nacion. Clerk No. 25, Dr. Guerri, assists the court on
the case, which will conclude with the liquidation of the
Company's assets.

The court-appointed trustee, Mr. Jose Ruiz, will examine and
authenticate creditors' claims until October 8, 2004. This is
done to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the trustee by
the said date in order to qualify for the payments that will be
made after the Company's assets are liquidated.

CONTACT: Panelmaster S.A.
         Marcelo T. de Alvear 1381
         Buenos Aires

         Mr. Jose Ruiz, Trustee
         Avenida Corrientes 4264
         Buenos Aires


RECLINERS SYSTEM: Court Deems Liquidation Prudent
-------------------------------------------------
Court No. 12 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Recliners Systems S.A. after the
company defaulted on its debt obligations, Infobae reveals.
The liquidation pronouncement will effectively place the
company's affairs as well as its assets under the control of Ms.
Norma Alicia Balmes, the court-appointed trustee.

Ms. Balmes will verify creditors' proofs of claims until
September 30, 2004. The verified claims will serve as basis for
the individual reports to be submitted in court on November 11,
2004. The submission of the general report follows on December
27, 2004.

Clerk No. 24 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Ms. Norma Alicia Balmes, Trustee
         Avda Roque Saenz Pe¤a 1185
         Buenos Aires


SALPE S.R.L.: Gets Court Authorization to Reorganize
----------------------------------------------------
Salpe S.R.L. will begin reorganization following the approval of
its petition by Court No. 24 of Buenos Aires' civil and
commercial tribunal. The opening of the reorganization will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

Ms. Alicia Zurron will oversee the reorganization proceedings as
the court-appointed trustee. She will verify creditors' claims
until September 28, 2004. The validated claims will be presented
in court as individual reports on November 10, 2004.

The trustee is also required by the court to submit a general
report essentially auditing the company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on December 23, 2004.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on June 22 next year.

CONTACT: Salpe S.R.L.
         Pasaje Rivarola 170
         Buenos Aires

         Ms. Alicia Zurron, Trustee
         Avda Corrientes 2963
         Buenos Aires


SPORTBRANDS S.A.: Bankruptcy Protection Initiated
-------------------------------------------------
Buenos Aires-based Sportbrands S.A. entered bankruptcy after
Judge Dieuzeide, serving for Court No. 1 of the city's civil and
commercial tribunal, approved a bankruptcy motion filed by Banco
General de Negocios S.A., reports La Nacion. The Company's
failure to pay US$64,931.04 in debt prompted the creditor to
file the petition.

Working with Dr. Galli, Clerk No. 2, the court appointed Mr.
Mauricio Gola as trustee for the bankruptcy process. The
trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claims to the
trustee before October 12, 2004.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: Sportbrands S.A.
         Correa 3545
         Buenos Aires

         Mr. Mauricio Gola, Trustee
         Maipu 509
         Buenos Aires


SUENOS DORADOS: Court Favors Creditor's Bankruptcy Motion
---------------------------------------------------------
Stylus S.A. successfully sought for the bankruptcy of Suenos
Dorados S.A. after Judge Villar, serving for Court No. 13 of
Buenos Aires' civil and commercial tribunal, declared the
Company "Quiebra," reports La Nacion.

As such, the Company will now start the bankruptcy process under
the supervision of court-appointed trustee Alberto Lopez.
Creditors of the Company must submit their proofs of claim to
the trustee before September 24 for authentication. Failure to
do so will mean a disqualification from the payments that will
be made after the Company's assets are liquidated.

The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$4,420.

Dr. Guerri, Clerk No. 25, assists the court on the case, which
will culminate in the liquidation of all of its assets.

CONTACT: Suenos Dorados S.A.
         Av. Independencia 2490
         Buenos Aires

         Mr. Alberto Lopez, Trustee
         Bernardo of Irigoyen 330
         Trustee



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

AHOLD: Posts EUR32Mln Net Income in 2Q04
----------------------------------------
HIGHLIGHTS:

- Net income EUR 32 million (Q2 2003: net income EUR 3 million)
favorably impacted by lower net financial expenses;

- Operating income EUR 169 million (Q2 2003: operating income
EUR 222 million)

- Net sales EUR 12.3 billion, a decrease of 4.9% compared to Q2
2003. Net sales growth was 3.0% excluding currency impact and
impact of divestments

- Net cash flow before financing activities amounted to an
outflow of EUR 5 million (Q2 2003: net cash inflow before
financing activities EUR 399 million).

Ahold published Thursday its second quarter 2004 results.

"Many of our main operating companies showed improved
performance against the same quarter of last year," commented
Anders Moberg, Ahold President and CEO. "The recovery of U.S.
Foodservice is well underway and we are pleased to show a
positive operating income this quarter. In Europe, the ongoing
repositioning of Albert Heijn is strengthening the company's
market leadership while cost reductions have led to higher
operating income."

"Our results for U.S. Retail continue to be impacted by strong
competition. We've also experienced pressure on operating
expenses and incurred certain fixed asset impairment charges and
costs associated with the integration of Giant-Landover and Stop
& Shop into one business arena," Mr. Moberg continued. "This
integration process, a part of our Road to Recovery program, is
proceeding according to plan. As this huge task and other
ongoing projects progress towards completion, we will begin to
see the full impact on our competitive position."

Summary Q2 2004:

Net sales increased excluding impact of currency and divestments

In the second quarter of 2004 net sales amounted to EUR 12.3
billion, a decrease of 4.9% compared to the same period in 2003.
Net sales growth was 3.0% excluding currency impact and the
impact of divestments.

Operating income below last year

Operating income amounted to EUR 169 million in the second
quarter of 2004 (Q2 2003: operating income EUR 222 million).
Europe Retail and U.S. Foodservice reported higher operating
income while U.S. Retail reported significantly lower operating
income. U.S. Retail and South America were both negatively
impacted by fixed asset impairment charges. The costs related to
the settlement with AIG Europe (Netherlands) N.V., as announced
on July 16, 2004, have also been included.

Net income favorably impacted by lower net interest expenses

The improvement of net income to EUR 32 million in the second
quarter of 2004 (Q2 2003: net income EUR 3 million) was
primarily caused by lower net interest expenses related to the
early repayment of debt in the second quarter and during 2003.

Net debt substantially unchanged

Net debt only changed marginally in the second quarter of 2004.
Gross debt, however, was further reduced from EUR 10.6 billion
at the end of the first quarter of 2004 to EUR 9.6 billion at
the end of the second quarter of 2004, the result of Ahold's
ongoing efforts to strengthen its balance sheet.

Net cash flow

In the second quarter a small net cash outflow before financing
activities of EUR 5 million was reported (Q2 2003: net cash
inflow EUR 399 million). This decrease was mainly due to lower
real estate divestments, higher income taxes paid and a net cash
outflow for working capital.

Ahold reiterates its outlook for 2004: a year of transition

2004 is a year focused on continued efforts to strengthen the
organization, and restructure and integrate the businesses in
order to build a solid platform for future growth and
profitability. Management will concentrate on achieving the
previously announced Road to Recovery performance objectives for
2005 and beyond.

Ahold continues to strengthen and improve its internal controls
and corporate governance, as well as solidify compliance with
the regulatory environment in 2004. All of these changes are
important cornerstones of our Road to Recovery program. They
require considerable resources and effort from our operations
and corporate support office in 2004.

Retail operations continue to face increased competition and
price pressure. Specifically the competitive pressure on the
U.S. Retail operations continues to be very challenging.

On the other hand, Ahold expects healthy sales development in
the foodservice sector. Operating income before impairment and
amortization of goodwill and exceptional items at U.S.
Foodservice is expected to be positive for 2004 and exceed the
level of 2002, no later than 2006.

Operating expenses are impacted by costs related to legal
proceedings and investigations as well as initiatives underway
to begin reporting under International Financial Reporting
Standards and ongoing work to comply with the U.S. Sarbanes-
Oxley Act.

As previously announced, the accumulated foreign currency
adjustments ("CTA losses") related to certain divestments, of
which a substantial portion was booked in the first quarter,
will have a significant impact on net income for 2004. However,
this will have no net impact on equity or cash.

Ahold expects to record an expense in the profit and loss
account under Dutch GAAP resulting from the transfer of shares
to ICA F”rbundet under the agreement with ICA F”rbundet (as
announced on July 19, 2004) following Canica exercising its
relevant put option to Ahold. The timing of the transfer is
subject to the arbitration and valuation process of the
underlying share price relating to the put option.

Net cash from operations is expected to improve as a result of
initiatives to reduce working capital. Capital expenditure will
be approximately in line with depreciation level.

Ahold's divestment program is on track. Based on the current
state of the processes underway, the company reasonable
expectation is to close the divestments of its operations in
Spain and at BI-LO/Bruno's later this year.

The general economic outlook in the U.S. has become more
difficult to predict for the remainder part of the year, due to
the uncertainty regarding macro-economic developments.

NOTES:

Ahold prepares its financial statements in accordance with
accounting principles generally accepted in the Netherlands
("Dutch GAAP"). Dutch GAAP differs in certain material respects
from accounting principles generally accepted in the United
States ("US GAAP"). All financial information in this press
release is based on Dutch GAAP unless otherwise noted.

The quarterly figures reported in this press release are
unaudited.

Ahold's reporting is based on 13 periods of 4 weeks. The fiscal
year of our operations in Central Europe, Spain and South
America corresponds to the calendar year and ends on December
31. The quarters that these entities use for interim financial
reporting end on March 31, June 30 and September 30.

The following three non-GAAP financial measures appear in this
press release (1) operating income (loss) before impairment and
amortization of goodwill and exceptional items, (2) net sales
excluding currency impact and the impact of divestments and (3)
the effective income tax rate, excluding the impact of non-tax-
deductible impairment and amortization of goodwill and
exceptional items.

The results for the second quarter of 2003 and the first half of
2003 presented in this press release have been adjusted to make
them  comparable to the results for the second quarter of 2004
and the first half of 2004. For a discussion of these
adjustments, see "Adjustments" below.

Ahold Q2 2004 Results:

Net sales increased excluding impact of currency and divestments

In the second quarter of 2004 net sales amounted to EUR 12.3
billion, a decrease of 4.9% compared to the same period in 2003.
Net sales growth excluding currency impact and impact of
divestments was 3.0% in the second quarter.

Ahold's retail operations in the United States reported in USD a
net sales growth in the second quarter of 2004 of 2.0% excluding
the impact of the divestment of Golden Gallon in 2003. Net sales
were positively impacted by the Easter impact (soft post-Easter
sales in 2004 included in the first quarter rather than in the
second quarter) and the stable food price inflation compared to
the first quarter and negatively impacted by increased
competitive activities. In the European retail operations net
sales growth excluding currency impact and the impact of
divestments compared to the same quarter of 2003 amounted to
0.5%. Net sales at U.S. Foodservice increased in U.S. dollars by
7.5% to USD 4.4 billion, mainly driven by higher pricing and
increased volumes.

Net sales in the first half-year of 2004 amounted to EUR 27.7
billion (first half-year of 2003: EUR 30.3 billion), a decrease
of 8.6%. Net sales growth excluding currency impact and impact
of divestments was 2.0% in the first half-year of 2004.

Operating income in Q2 2004 lower than last year

Operating income before impairment and amortization of goodwill
and exceptional items Operating income before impairment and
amortization of goodwill and exceptional items, decreased in the
second quarter by 20.1% to EUR 207 million compared to the same
period last year.

Operating income before impairment and amortization of goodwill
and exceptional items in the second quarter of 2004 showed
improvement at all major European operating companies compared
to the same period last year. U.S. Foodservice realized
operating income before impairment and amortization of goodwill
and exceptional items in the second quarter of 2004 compared to
an operating loss in the second quarter of 2003. This
improvement was mainly due to a decrease of operating expenses
as a percentage of net sales. Operating expenses benefited from
selling and distribution efficiencies. The improvements at the
European retail operations and U.S. Foodservice were outweighed
by significantly lower results at U.S. retail, impacted by
pressure on operating expenses, fixed asset impairment charges,
integration costs, as well as lower sales volumes in the second
quarter of 2004, and also lower real estate gains.

The costs related to the settlement with AIG regarding the
directors and officers liability insurance policy for Ahold, are
included in the Corporate costs of the second quarter.

Operating income before impairment and amortization of goodwill
and exceptional items for the first half-year of 2004 decreased
21.8% compared to the same period last year, impacted by the
lower U.S. dollar to Euro exchange rate.

Operating income

Operating income of EUR 169 million for the second quarter of
2004 (Q2 2003: operating income EUR 222 million) was lower than
for the same period last year. In the second quarter of 2004 and
2003 no exceptional losses were included.

Operating income of EUR 24 million for the first half-year was
substantially lower than the same period last year (first half-
year of 2003: EUR 624 million), primarily as a result of the
exceptional losses of EUR 450 million related to the divestments
of Bompre‡o and the operations in Thailand. These exceptional
losses, which were expected and discussed in previous press
releases, have no impact on shareholders' equity or cash.

Goodwill amortization and impairment

Goodwill amortization in the second quarter of 2004 amounted to
EUR 36 million compared to EUR 37 million in the same period
last year. During the second quarter of 2004 Ahold recorded a
small goodwill impairment charge relating to its South American
operations.

Exceptional loss

In the second quarter of 2004 and the second quarter of 2003 no
exceptional items were reported.

The exceptional loss of the first half-year was related to the
divestments of Bompre‡o and the operations in Thailand. Of these
exceptional items, EUR 322 million related to accumulated
foreign currency translation adjustments ("CTA losses") and EUR
213 million to the partial reversal of goodwill, both of which
had previously been charged to shareholders' equity. These
negative impacts were partly offset by an EUR 85 million gain
representing the difference between the selling price and the
book value of certain assets. See "Definitions" below.

Net income: favorable impact of lower net interest expenses

Ahold reported net income of EUR 32 million in the second
quarter of 2004 compared to net income of EUR 3 million in the
second quarter of 2003. This improvement was primarily caused by
lower net interest expenses.

Net financial expense showed a significant decrease

Net financial expense for the second quarter of 2004 was EUR 169
million compared to EUR 226 million in the same period last
year. Net interest amounted to EUR 166 million in the second
quarter, a decrease of 23.9% compared to the same period last
year. The decrease was primarily caused by lower interest
expenses resulting from lower cost of borrowing and
substantially decreased gross debt. This reduction in gross debt
was related, among others, to the repayment of the convertible
subordinated notes in September 2003, the March credit facility
in December 2003 and the convertible subordinated loan in the
second quarter of 2004. Interest income increased as a result of
a high outstanding cash balance. In addition, the lower USD to
EUR exchange rate favorably impacted net interest.

Net financial expense for the first half of 2004 amounted to EUR
387 million compared to EUR 518 million in the same period last
year.

Income taxes

The effective income tax rate, excluding the impact of non-tax-
deductible impairment and amortization of goodwill and
exceptional items, decreased to 46.2% in the second quarter of
2004 compared to 67.6% in the second quarter of 2003, mainly as
a result of the impact of a different geographic mix of income
and consequences of divestments.

Share in income of joint ventures and equity investees

Share in income of joint ventures and equity investees in the
second quarter of 2004 increased as a result of divestments by
ICA.

Balance sheet strengthened

In the second quarter of 2004 the balance sheet was impacted by
the early repayment of the convertible subordinated notes in the
aggregate principal amount of EUR 920 million and a lower USD to
EUR exchange rate. No divestments were completed in the second
quarter of 2004.

Balance sheet total reduced

The USD to EUR exchange rate decreased to EUR 0.805 per U.S.
dollar at the end of the second quarter of 2004 compared to EUR
0.833 at the end of the first quarter of 2004. The company
lowered its balance sheet total by repaying debt with part of
the outstanding cash balances. The balance sheet total was
posively impacted by the lower U.S. dollar against the Euro. The
balance sheet total decreased by EUR 1.4 billion.

Shareholders' equity decreased by EUR 113 million, mainly
resulting from currency exchange rate differences.

Net debt reduced by EUR 16 million

In the second quarter of 2004 Ahold repaid early, in cash, its
EUR 920 million 4% convertible subordinated notes, on June 2,
2004 versus the original due date of May 19 2005.

Net debt at the end of the second quarter of 2004 decreased
compared to the end of the first quarter of 2004, primarily due
to the lower USD to EUR exchange rate.

The EUR 1.5 billion 6.375% notes maturing June 8, 2005 have been
classified as the current portion of long term debt as of the
second quarter of 2004 onwards.

Cash flow

In the second quarter of 2004 net cash outflow before financing
activities was EUR 5 million compared to a net cash inflow of
EUR 399 million in the same period of last year. The net cash
inflow from operating activities decreased from EUR 449 million
in the second quarter of 2003 to EUR 207 million in the second
quarter of 2004 as a result of, a net cash outflow for working
capital (53%), lower real estate divestments (27%) and higher
taxes paid (20%).

The net cash outflow from investing activities increased from
EUR 50 million in the second quarter of 2003 to EUR 212 million
in the second quarter of 2004, as a result of lower real estate
divestments.
The increased net cash outflow from financing activities in the
second quarter of 2004 reflects the early repayment of the EUR
920 million aggregate principal amount of the 4% convertible
subordinated notes.

Operational information

Lower operating income at U.S. retail impacted by continued
competitive pressure

Net sales at the U.S. retail trade operations in the second
quarter of 2004 increased 0.5% in U.S. dollars compared to the
same period last year. Excluding the impact of the divestment of
Golden Gallon in 2003, net sales in U.S. dollars increased by
2.0%. Identical sales growth in U.S. dollars was 0.3% and
comparable sales growth was 0.9%, reflecting the positive Easter
impact and the stable food price inflation in the second quarter
of 2004 compared to the first quarter of 2004.

Operating income before impairment and amortization of goodwill
and exceptional items in the U.S. retail trade business in U.S.
dollars decreased in the second quarter of 2004 by 29.9%
compared to the second quarter of 2003.

At Stop & Shop and Giant-Landover, increased promotional
activities and additional sales area of competitors, as well as
the ongoing integration initiatives (costs included in the
second quarter amounted to USD 15 million) had an impact on net
sales and operating income in the second quarter. In the second
quarter higher operating expenses and fixed asset impairment
charges negatively impacted operating income.

Additionally, lower real estate gains were recorded in the
second quarter of 2004 compared to the same period of 2003.
Giant Carlisle's performance remained strong and at Tops
initiatives related to pricing and operational performance have
begun to yield a positive trend in sales.

During the second quarter of 2004, significant progress was made
on the integration of the administrative and managerial
functions of Stop & Shop and Giant-Landover into one business
arena. The store system conversion was substantially completed,
as scheduled, during the second quarter.

The integration is expected to streamline the company and
improve long-term efficiency. Additionally, during the second
quarter of 2004, work continued according to plan on the
divestment of BI-LO and Bruno's.

During the first half year of 2004, operating income before
impairment and amortization of goodwill and exceptional items
was negatively impacted by promotional activities and additional
sales area of competitors, impairment charges, increased health
and welfare costs, integration costs, and lower real estate
gains.

Improved operating income at the major operating companies in
Europe Net sales during the second quarter of 2004 were in line
with the second quarter of 2003 in the European retail
operations. Excluding currency impact in Central Europe and
impact from the divestments of Jamin and De Tuinen in 2003, net
sales growth was 0.5% compared to the same quarter of 2003.
Identical sales growth at Albert Heijn was 1.4% in the second
quarter of 2004; the increase in transactions was partly offset
by a lower average basket size, due to 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.

Operating income before impairment and amortization of goodwill
and exceptional items for the European retail operations
increased in the second quarter of 2004 to EUR 67 million
compared to EUR 32 million in the same period of last year,
driven by all major retail companies. At Albert Heijn higher
operating income was mainly the result of ongoing cost
reductions. The operations in Central Europe reported a lower
operating loss due to improved margins and lower costs. Spain
reduced its operating loss by improving its margins and reducing
shrinkage.

During the second quarter Albert Heijn continued to make
progress with its repositioning in the Dutch retail market.
Strong commercial programs continued to be put in place and the
price position was further improved, supported by the cost
reduction program, which was started in 2003.

Central Europe continued to fully integrate all back-office
functions, further optimized the store portfolio and reduced
working capital. In Spain considerable progress was made
according to plan in the divestment program, while at the same
time, the company continued to rationalize its store portfolio
and control operating expenses.

In the first half-year of 2004, net sales amounted to EUR 6.7
billion (2003: EUR 6.8 billion). Net sales growth excluding
currency impact and impact from divestments amounted to 0.2%.
Identical sales growth at Albert Heijn was 0.4%.

Operating income before impairment and amortization of goodwill
and exceptional items in the European retail operations
increased in the first half year of 2004 to EUR 144 million
compared to EUR 127 million in the same period of last year,
driven by improved performance at the major operating companies
in the second quarter of 2004.

U.S. Foodservice favorably impacted by net sales growth

U.S. Foodservice showed an increase in net sales in U.S. dollars
of 7.5% in the second quarter of 2004, compared to the same
period last year. The increase was primarily attributable to
higher pricing and improved volumes.

The operating income before impairment and amortization of
goodwill and exceptional items at U.S. Foodservice in the second
quarter of 2004 was USD 36 million, an improvement of USD 54
million compared to the same quarter last year. This improvement
was mainly due to a decrease in operating expenses as a
percentage of net sales. Operating expenses benefited from
selling and distribution efficiencies.

During the second quarter of 2004, U.S. Foodservice continued to
make progress in implementing its key initiatives including:
fortifying its governance and controls, renegotiating major
procurement contracts, improving its customer mix, controlling
operating expenses and improving working capital.

In the first half-year of 2004 U.S. Foodservice showed an
increase in net sales in U.S. dollars of 5.9% compared to the
same period last year, primarily attributable to higher pricing
and improved volumes. The operating income before impairment and
amortization of goodwill and exceptional items in the first half
of 2004 was USD 8 million compared to a loss of USD 51 million
during the same period of 2003. This improvement was mainly due
to a decrease in operating expenses as a percentage of net
sales.

South America

Net sales in the South American retail trade operations in the
second quarter of 2004 were heavily impacted by the divestments
of Santa Isabel in 2003 and Bompre‡o in the first quarter of
2004. Excluding currency impact and the impact of divestments,
the net sales decrease was limited to 1.8%.

Operating loss before impairment and amortization of goodwill
and exceptional items increased to EUR 13 million in the second
quarter of 2004 compared to a loss of EUR 10 million in the same
period last year. Included in the 2004 results is an impairment
charge of fixed assets within the South American operations.

The first half-year operating loss of 2004 of EUR 448 million
was heavily impacted by the CTA loss and reversal of goodwill
resulting from the divestment of Bompre‡o.

Corporate

Beginning in the second quarter of 2004 this segment excludes
the operations of three real estate companies that acquire,
develop and manage store locations in Europe and the U.S. These
entities are now accounted for under the segment U.S. Retail and
Europe Retail. The 2003 figures used in this release have been
adjusted accordingly.

Operating loss at Corporate increased, fully as a result of the
costs related to the settlement with AIG. On July 16, 2004,
Ahold announced that it had settled all pending insurance
coverage litigation with AIG Europe (Netherlands) N.V. regarding
the directors' and officers' liability insurance policies for
Ahold and its subsidiary U.S. Foodservice. Under the terms of
this settlement giving Ahold and its subsidiary U.S. Foodservice
and current and former directors and officers access to USD 125
million of coverage (and extending the discovery periods under
the insurance), Ahold has committed to make payments to AIG
Europe (Netherlands) N.V. which in the aggregate, after
reduction of costs already reimbursable under those insurance
policies, amount to approximately EUR 44 million.

The Corporate segment also includes the costs related to
compliance with the Sarbanes-Oxley Act and the International
Financial Reporting Standards (IFRS) and the Business Support
Organization, which is responsible for harmonizing back office
processes and systems as part of the Road to Recovery program.

Ahold will adopt IFRS accounting standards in 2005, as required
under EU regulations. Applying IFRS to our financial statements
may have a significant impact on a number of important areas.
Ahold is currently analyzing and calculating the differences
between Dutch GAAP, IFRS and US GAAP to assess in detail the
impact on its consolidated financial position and results.

To view financial statements:
http://bankrupt.com/misc/Ahold_2Q04.pdf

CONTACTS: Ahold head office
          Albert Heijnweg 1
          1507 EH Zaandam
          The Netherlands
          Phone: +31 (0)75 659 9111

          General inquiries
          Phone: +31 (0)75 659 9111

          Investor Relations
          e-mail: investor.relations@ahold.com
          Phone: +31 (0)75 659 58 28

          Media Relations (for business press members only):
          e-mail: corp.communications@ahold.com
          Phone: +31 (0)75 659 57 20 (office hours)
          Phone: +31 (0)75 659 91 11 (outside office hours)

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


EMBRATEL: Appoints Isaac Berensztejn as New CFO
-----------------------------------------------
Embratel Participacoes S.A. (Embratel Participacoes or the
"Embrapar") (NYSE: EMT; BOVESPA: EBTP3, EBTP4), the Company that
holds 98.8 percent of Empresa Brasileira de Telecomunicacoes
S.A. ("Embratel"), announced Wednesday that Mr. Isaac
Berensztejn was elected as Executive Director of Finance and
CFO. Norbert Glatt is leaving the company to pursue personal
interests.

Mr. Isaac Berensztejn joined Embratel in 1979 and has occupied
various positions in the company's financial area. He was
Finance Director at Telerj and Telemar during the privatization
process. Mr. Berensztejn returned to Embratel in 1999 where he
acted as Corporate Planning Director and most recently Financial
Director of Embratel's satellite
subsidiary Star One.

We believe Mr. Berensztejn's extensive financial experience and
in-depth knowledge of Embratel will be instrumental in leading
the company in this new phase.

Mr. Norbert Glatt led Embratel through a challenging financing
period with much success. Embratel would like to thank Mr. Glatt
for his important contribution and wish him luck in his next
endeavor.

Embratel is the premium telecommunications provider in Brazil
and offers an ample variety of telecom services -local and long
distance telephony, advanced voice, highspeed data transmission,
Internet, satellite data communications, and corporate networks.

The company is a leader in the country for data services and
Internet, and is highly qualified to be an all-distance network
carrier in Latin America. Embratel's network spreads
countrywide, with almost 29 thousand kms of optic cables, which
represents about one million and sixty-nine thousand km of fiber
optics.

CONTACT: Ms. Silvia M.R. Pereira
         Investor Relations
         tel: (55 21) 2121-9662
         fax: (55 21) 2121-6388
         e-mail: silvia.pereira@embratel.com.br
                 invest@embratel.com.br


TELESP CELULAR: Intends to Launch Tender Offer for Subsidiaries
---------------------------------------------------------------
Brasilcel, the 50-50 joint-venture of Telefonica Moviles
(NYSE:TEM) and Portugal Telecom for mobile operations in Brazil,
operating under the brand Vivo, announces its intention of
launching voluntary cash tender offers for a portion of the
outstanding shares of some of its subsidiaries, directly, and
indirectly through its subsidiary Telesp Celular Participacoes
(TCP).

With these transactions, Telefonica Moviles and Portugal Telecom
affirm and seek to reinforce their commitment to the Brazilian
cellular market and to Vivo, and Brasilcel seeks to increase its
ownership interest in its subsidiaries. In addition, these
offers will provide an opportunity to remunerate those minority
shareholders tendering their shares at a premium to market
prices.

The Proposed Tender Offers:

Brasilcel intends to launch voluntary cash tender offers for the
following securities of its subsidiaries:

- Tele Sudeste Celular Participacoes (TSD): up to 7,332 million
Common shares (ON) and 12,700 million Preferred shares (PN).

- Tele Leste Celular Participacoes (TBE): up to 16,723 million
ON and 92,499 million PN shares.

- Celular CRT Participacoes (CRT): up to 61 million ON and 442
million PN shares.

Simultaneously, TCP intends to launch a voluntary cash tender
offer for up to 84,253 million PN shares of Tele Centro Oeste
Celular Participacoes (TCO).

The number of shares that Brasilcel and TCP will be offering to
acquire has been determined to allow Brasilcel and TCP to
increase their participation in the subject companies without
suppressing the liquidity of the remaining shares of those
classes for purposes of CVM regulations.

The offer prices will be:

              Price per 1,000 shares (R$)
              ----------------------------------
                          ON               PN
------------------------------------------------
TSD                       6.35             7.80
------------------------------------------------
TBE                       0.90             1.10
------------------------------------------------
CRT                     575.31           718.69
------------------------------------------------
TCO                      -----            10.70
------------------------------------------------

These offer prices represent a premium of 20% over the
respective weighted average closing price of each class of
shares in the last 30 trading days prior to announcement.

Telefonica Moviles and Portugal Telecom intend to provide
funding to Brasilcel for the tender offers on a 50-50 basis. TCP
intends to fund its tender offer with debt and, taking into
account the outcome of the tender offer, amongst other factors,
will evaluate a potential capital increase, if it considers a
reduction of its level of indebtedness to be advisable.

The Rationale:

- Increase Brasilcel's ownership of its subsidiaries

Telefonica Moviles and Portugal Telecom have increased their
ownership in the Vivo subsidiaries since their initial
acquisition, and these offers will further increase their
economic interest, while allowing continuing liquidity in the
equity capital markets for those shares.

- Opportunity for minority shareholders to realize gains

These offers provide the minority shareholders with the
opportunity of selling their shares at a premium over market
prices and to realize gains.

- Reinforces Telefonica Moviles and Portugal Telecom's
commitment to the Brazilian cellular market and to Vivo

Telefonica Moviles and Portugal Telecom continue to believe the
Brazilian cellular market, with 160 million inhabitants and
relatively low cellular penetration, continues to offer
substantial growth potential. The proposed transaction
strengthens Vivo's position in the Brazilian market and enhances
its participation in the potential growth of its subsidiaries.

The Impact on Ownership:

The table below illustrates the impact on the ownership of
Brasilcel and TCP of its subsidiaries, assuming 100% acceptance
levels:

Brasilcel                   Current Ownership Pro-forma
                                               Ownership
                                              (assuming 100%
                                               acceptances)
                            ----------------- -----------------
                            ON    PN    Total ON    PN    Total
--------------------------- ----- ----- ----- ----- ----- -----
TSD                         88.5% 85.4% 86.7% 92.3% 90.3% 91.1%
--------------------------- ----- ----- ----- ----- ----- -----
TBE                         58.7% 11.4% 27.9% 68.7% 40.9% 50.6%
--------------------------- ----- ----- ----- ----- ----- -----
CRT                         86.6% 26.3% 51.5% 91.0% 49.7% 67.0%
--------------------------- ----- ----- ----- ----- ----- -----

TCP                          Current          Pro-forma
                              Ownership        Ownership
                                              (assuming 100%
                                               acceptances)
                             ---------------- -----------------
                             ON    PN   Total ON    PN    Total
---------------------------------- ---- ----- ----- ----- -----
TCO                          86.2% 0.0% 28.9% 86.2% 32.8% 50.6%
---------------------------------- ---- ----- ----- ----- -----

The Expected Timing:

The offers are expected to begin in the first week of September
and will be open for at least 30 days from the date of the
publication and filing of the formal documentation. The offers
are expected to be completed by mid-October.

The tender offers will be subject to certain terms and
conditions that will be included in the formal offer
documentation.

CONTACT: Telesp Celular Participacoes SA
         Rua Abilio Soares 409, - 10o andar
         Sao Paulo, 04005
         Phone: (212) 889-4350



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

ROYAL SHELL: In Talks With Petrobras Over Chilean Unit Sale
-----------------------------------------------------------
Brazil's federal energy company Petrobras (NYSE: PBR) is now in
talks with Royal Dutch Shell to buy the latter's 360 gas
stations throughout Chile, local newspaper El Mercurio reports,
citing Luis Carlos Moreira, Petrobras's business development
executive.

"Yes, we have met with Shell. Nothing has been decided, we are
(still) negotiating," El Mercurio quoted Moreira as saying.

The paper said a decision is due within 30 days and that
Petrobras wants a local partner.

With 51% of the market, Copec would be the obvious candidate to
be a local partner, but Shell's stations would increase Copec's
market share to over 70% and possibly create antitrust issues.
Petrobras is therefore talking to other possible players,
Moreira said.

The Argentine-Spanish Repsol-YPF consortium, which already owns
190 gas stations in Chile, has also expressed interest on the
Shell assets.

Shell Chile is an attractive option for Petrobras and Repsol-YPF
since the Company's 21.6 percent share in the liquid-fuel
segment would solidify both companies' hold in the Southern
Cone.

Shell is expected to sell its Chilean assets in a move to
consolidate investments in key countries such as Russia. The oil
giant recently disposed of properties in Peru and is scheduled
to sell its assets in Argentina.


SCL TERMINAL: Moody's Ups Rating to B3 From Caa1
------------------------------------------------
Moody's Investors Service raised its public underlying rating
for the outstanding senior secured debt of SCL Terminal Aereo
Santiago S.A. Sociedad Concesionaria to B3 from Caa1. The rating
action reflects improvements in passenger traffic and financial
results. SCL saw a 7.88% increase in total passenger flows in
2003 over 2002 levels. Total passenger flows are projected to
increase in 2004 by over 8% over the previous year.

Furthermore, SCL's mid-year filing with the Chilean securities
regulator indicated a growth of over 21% in operating revenues
over the previous year.

The SCL debt rating remains under review for possible further
upgrade. The bonds are insured by MBIA and remain Aaa rated
based upon the financial strength of the insurance company.

SCL's debt ratings have been put under review for possible
further upgrade reflecting the potential for improvements in the
company's financial and liquidity position.

Moody's noted that SCL has entered into the Convenio
Complementario No. 2, which amends the terms of the 1997
Concession Grant and provides for greater revenue generation
potential and tighter management controls. The Concession
amendment also provides for an extension to the concession term
of up to 78 months.

SCL has filed an application with the securities regulator for
the issuance of approximately US$85 million of local currency
debt. Proceeds from the 2004 bonds will be used for additional
capital projects (per the Convenio Complementario No. 2) and to
support the US$171 million outstanding 1998 bond debt service
requirements.

MBIA is expected to provide credit enhancement for the 2004
bonds.

SCL was formed by an international consortium in 1998
specifically to construct, renovate and operate the Arturo
Merino Benitez International Airport in Santiago, Chile. The
company's shareholders include Agunsa (47.02%), ACS (14.77%),
Fomento de Construcciones y Contratas S.A. (14.78%), Sabco
Administradora de Fondos de Inversion (13.43%) and YVR Airport
Services Ltd (10%).



===================
C O S T A   R I C A
===================

ICE: Finalizes Internet Access Rates
------------------------------------
ICE, Costa Rica's electricity and telecoms monopoly, has
finalized Internet access rates using mobile devices in a
proposal before the public service regulatory authority ARESEP.
Citing local daily Al Dia, Business News Americas reports that
ICE will charge CRC10/kb (US$0.02/kb) for Internet access using
wireless application protocol (WAP) technology on mobile devices
and CRC4/kb for fixed Internet access using mobile phones.

Both technologies utilize the country's GSM network through a
GPRS connection which offers speeds of up to 171 kbs, supports
basic internet protocols and enables the user to have an "always
on" web connection.



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

TRICOM: Names Gitner as Independent Non-executive Director
----------------------------------------------------------
Tricom, S.A. (OTC: TRICY) announced Wednesday that Mr. Gerald L.
Gitner has been appointed to the Company's Board of Directors as
an independent non-executive director. Mr. Gitner has had
substantial experience as a director, having served on the
boards of numerous public and private companies, as well as non-
profit entities.

Mr. Gitner is Chairman of D. G. Associates, Inc. and a private
investor. Mr. Gitner is presently the non-executive Chairman of
Kitty Hawk, Inc., which operates an overnight express cargo
network and an all-cargo airline headquartered in Dallas, TX. He
served as Chairman of the Board of Trans World Airlines, Inc.
from 1997 to 2002 and as its CEO from 1996 to 1999. His past
experiences include the founding of an investment bank and
serving as its chairman. He also co-founded and co-chaired a
private leasing company, specializing in wide-bodied aircraft,
from 1990 to 1997. Mr. Gitner is a past Vice Chairman of Pan
American World Airways, Inc., and CEO of Pan American World
Services, Inc. Mr. Gitner was President and co-founder of People
Express Airlines, Inc., from 1980 to 1982. He also served as
President and CEO of Atasco USA, a private aviation concern
involved in commercial aircraft leasing and servicing.

Mr. Gitner was educated at Boston University, where he graduated
cum laude and was elected to Phi Alpha Theta, the national
history honor society. He is a founding member of the Board of
Advisors of the Economics Department of Boston University and a
member of the Dean's Advisory Council for the College and
Graduate School of Arts and Sciences at Boston University. He is
a past member of Boston University's Board of Trustees and a
past member of the Chancellor's Council at the University of
Missouri-St. Louis. Mr. Gitner served as a member of the Board
of Trustees of Rochester Institute of Technology and the
American College of Management and Technology from 1999 to 2004.

Following Mr. Gitner's appointment, the Company's board of
directors consists of the following twelve individuals: Ricardo
Valdez Albizu, Thomas Canfield, Carlos Castillo, Hector Castro
Noboa, Anibal de Castro, James Deane, Gerald Gitner, Arturo
Pellerano, Rosangela Pellerano, Roberto Saladin, Adriano Tejada
and Valeriano Valerio.

About Tricom

Tricom, S.A. is a full-service communications services provider
in the Dominican Republic. The Company offer local, long-
distance, mobile, cable television and broadband data
transmission and Internet services. Through Tricom USA, the
Company is one of the few Latin American-based long-distance
carriers that is licensed by the U.S. Federal Communications
Commission to own and operate switching facilities in the United
States. Through its subsidiary, TCN Dominicana, S.A., the
Company is the largest cable television operator in the
Dominican Republic, based on its number of subscribers and homes
passed.

CONTACT:  Miguel Guerrero, Investor Relations
          Ph (809) 476-4044 / 4012
          E-mail: investor.relations@tricom.net

Web site: http://www.tricom.net
          http://www.tdr-investor.com



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

PEMEX: Munoz Supports Move to Modify Tax Scheme
-----------------------------------------------
Raul Munoz Leos, director of Petroleos de Mexico (Pemex),
appears agreeable to a proposal by the National Treasury
Convention (CNH) to modify the tax scheme of Pemex, Mexico
Analytica indicates in a report. In an interview during the 39th
anniversary of the Mexican Petroleum Institute, Munoz said that
the proposal to reform the company's tax framework is very
positive and it is a change for which the company has been
struggling for years.

Munoz said that he is confident that Congress would reach an
agreement to pass the bill since there is a good environment to
support Pemex.

But according to the Pemex executive, reducing the tax burden is
not enough to solve the difficult financial situation faced by
the State-owned company.

Pemex is currently battling with debts amounting to MXN700
billion (US$61.5 billion).



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

NWRHA: Concern Raised Over Social Events for Staff Members
----------------------------------------------------------
An audit at North West Regional Health Authority (NWRHA)
revealed that the company's management spent TTD173,100 over a
five-month period on social events, The Trinidad Express
reports. Internal auditor Harriram Laloo said in his report that
the money, which was spent for staff members that are under fire
from the authority's internal auditor, was "excessive" and
"exorbitant." In addition, the money was spent without the
necessary approval from the board of directors.

The report said that "while the holding of these activities is
commendable ... the expenditure incurred must be tempered by the
business of the authority- "the provision of proper health
care".

"By frittering away such large sums of money on cultural events,
it could give the public the impression that money is being
frittered away by the authority while they suffer from a lack of
basic amenities in the delivery of health care," the report
stated.

It called on management to stop making advance payments to staff
for goods and services since such action contravened the
Ministry of Health's financial policy.

The Express recalls that the NWRHA board was under heavy
scrutiny and criticism last month for failing to pay electricity
bills totalling more than TTD24 million and for not paying to
the Board of Inland Revenue more than TTD106 million in PAYE and
Health Surcharge, which was deducted from employees' pay during
the period May 2002 to June 2004.



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

PDVSA: S&P Raises Rating After Venezuela Upgrade
------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Petroleos de Venezuela S.A. (PDVSA) to 'B' from 'B-'.
Standard & Poor's also affirmed its 'BB' corporate credit rating
on PDVSA-affiliate CITGO Petroleum Corp. The outlook is stable.

The rating upgrade on PDVSA follows the rating upgrade of the
long-term foreign and local currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'B' from 'B-'. Standard
& Poor's also raised its short-term foreign and local currency
sovereign credit ratings on Venezuela to 'B' from 'C'. The
outlook for the ratings on Venezuela stable.

The ratings on PDVSA and Venezuela are equalized because of
their ties of ownership and economic interests.

"The ratings on the Bolivarian Republic of Venezuela and PDVSA
are equalized because of the government's control over PDVSA and
its dependence on its cash flow to fund its budget. However,
PDVSA also is dependent on political and economic stability in
Venezuela to conduct operations smoothly," said Standard &
Poor's credit analyst Bruce Schwartz. "The upgrade of PDVSA also
would not have been possible if not for PDVSA's efforts to
restore production since a crippling strike in early 2003."

"Furthermore, PDVSA's balance sheet has strengthened from a
recent tender for PDVSA Finance Ltd. debt, although this may
have been achieved to some extent at the expense of investment
in PDVSA. A more exuberant view of PDVSA's credit quality
depends on further improvement in PDVSA's operations, including
an increase in the pace of investment, in addition to continued
strengthening of the government's credit quality," said Mr.
Schwartz.

Although CITGO has performed well in the first half of 2004,
repaid substantial debt from free operating cash flow, and
should benefit from a stronger and more stable owner in PDVSA,
the ratings on CITGO were not raised.

That is because officials in Venezuela in recent months have
contemplated terminating or amending crude oil contracts with
CITGO to eliminate margin-stabilization provisions. In Standard
& Poor's view, elimination of these provisions would be a
negative credit event for CITGO and would justify less of a
separation in ratings from PDVSA.

However, Standard & Poor's also said that achieving such
amendments could prove difficult as it would constitute an event
of default in various CITGO financing arrangements.

ANALYST: Bruce Schwartz, CFA, New York (1) 212-438-7809


PETROZUATA FINANCE: S&P Raises Bond Rating To B+
------------------------------------------------
Standard & Poor's Ratings Services raised its rating on
Petrozuata Finance Inc.'s $987.2 billion in bonds due between
2009 and 2022 to 'B+' from 'B'. The outlook is stable. The
rating upgrade follows Standard & Poor's upgrade of its
sovereign credit ratings on the Bolivarian Republic of Venezuela
(B/Stable/B). Petrozuata Finance's bonds are guaranteed by
Petrolera Zuata, Petrozuata C.A. (Petrozuata). Petrozuata is a
heavy oil-production and upgrading project located in Venezuela
that is owned by Conoco Orinoco (50.1%), a subsidiary of
ConocoPhillips (A-/Stable/A-2), and PDVSA Petroleo Y Gas
(49.9%), a subsidiary of Petroleos de Venezuela S.A. (PDVSA;
B/Stable/--).

The project produces heavy crude oil from Venezuela's Orinoco
Belt, then processes it at an upgrader on the coast to produce
syncrude that it sells either to sponsors under market-priced
offtake arrangements or into the market. Petrozuata demonstrates
good operational and strong financial performance, but its debt
rating is constrained by the creditworthiness of the Bolivarian
Republic of Venezuela.

The stable outlook reflects the stable outlook on Venezuela and
PDVSA. Standard & Poor's could raise the rating if the risk of
government interference in the project lessens or if Standard &
Poor's raises its ratings on PDVSA and Venezuela. The rating on
the project is not likely to fall based on operations, unless
PDVSA and third parties are not able to deliver feedstocks.
Standard & Poor's could lower its rating on the project if it
lowers its ratings on PDVSA and Venezuela.

ANALYSTS:  Terry A Pratt, New York (1) 212-438-2080
           Bruce Schwartz, CFA, New York (1) 212-438-7809


* S&P Raises Long-, Short- Term Ratings On Venezuela To 'B'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
and local currency sovereign credit ratings on the Bolivarian
Republic of Venezuela to 'B' from 'B-'. At the same time,
Standard & Poor's raised its short-term foreign and local
currency sovereign credit ratings on the republic to 'B' from
'C'. The outlook is stable.

According to Standard & Poor's Ratings Services credit analyst
Richard Francis, the upgrades reflect the prospect for
diminished political instability coupled with sharp improvement
in external indicators, attributable to a large current account
surplus, high level of international reserves, and lower
external debt.

"Following the victory of President Hugo Chavez in the Aug. 15,
2004, referendum on his presidency and the independent
verification by international observers (including an audit of
the results), political instability is likely to diminish-
although the country remains highly polarized," Mr. Francis
said. "Furthermore, Venezuela's external indicators have
improved substantially over the past two years," he noted.

Mr. Francis explained that international reserves increased to
over US$21 billion as of Aug. 24, 2004, and are expected to
remain above this level as long as oil prices remain high, the
result of capital controls put in place in early 2003 and higher
foreign exchange earnings from oil exports. As a result, the
public sector is expected to move from a net debtor to a net
creditor position by year-end 2004. Venezuela's external
liquidity indicators have improved substantially over the last
two years, and its net private sector debt creditor position is
also expected to show further improvement.

"Political polarization, weak institutions with limited checks
and balances, a large fiscal deficit despite high oil prices,
and structural economic deficiencies resulting from the
continued high and growing dependence on oil continue to
constrain ratings on the government of Venezuela," noted Mr.
Francis. "Further improvements in creditworthiness would largely
depend upon enhanced fiscal prudence and improved prospects for
the oil sector," he added.

"The stable outlook reflects the balance between increased
financial flexibility due to high oil revenue and the high
fiscal deficits, political polarization, and diminished economic
prospects that continue to constrain Venezuela's
creditworthiness," said Mr. Francis. "The ratings could come
under renewed pressure if oil revenue plummets or increased
social unrest leads to further economic and/or political
turmoil, resulting in falling external liquidity. Conversely,
greater fiscal discipline coupled with improved prospects for
the oil sector could lead to an improvement in
creditworthiness," he concluded.

ANALYST:  Richard Francis, New York (1)-212-438-7348



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

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